Public ARM Firm Performant to Offer More Shares; Gives Guidance on Q4 2012

Performant Financial Corporation (NASDAQ: PFMT) announced today that it has filed a registration statement with the Securities and Exchange Commission with respect to a proposed secondary public offering of 7,000,000 shares of common stock on behalf of certain selling stockholders. The public offering will consist entirely of shares to be offered by certain selling stockholders and Performant will not receive any proceeds from the proposed offering.

Performant went public in August 2012, becoming one of only a handful of publicly traded ARM companies.

The offering is being made only by means of a prospectus, copies of which may be obtained from Goldman, Sachs & Co., 200 West Street, New York, New York 10282, Attention: Prospectus Department (Tel: +1 866 471 2526; e-mail: prospectus-ny@ny.email.gs.com) or Morgan Stanley & Co. LLC, 180 Varick Street, 2nd Floor, New York, New York 10014, Attention: Prospectus Department (Tel: +1 866 718 1649; e-mail: prospectus@morganstanley.com ).

At the same time of the announcement of the secondary offering, Performant issued preliminary guidance on its results from the fourth quarter of 2012. The company expects to announce the results on February 28.

The company expects to announce net income of $5.5 million to $6.8 million for Q4 2012 on revenues of $53.5 million – $56.5 million.

In the third quarter of 2012, Performant reported revenues of $53.4 million and net income of $6.4 million.

The company noted in a press release that the expected growth in revenues for the fourth quarter 2012 compared to the third quarter 2012 is due primarily to higher claim recovery volumes in the healthcare market. The Company’s expected net income reflects increased operating expenses consistent with the growth of recovery activities in the healthcare market and the temporary delayed recognition of certain revenues associated with Periodic Interim Payment Providers, or PIP, claims under the Company’s contract with the Center for Medicare and Medicare Services, for which associated expenses have been incurred.