MTBC in 2016 - An Exciting Year in Review
A recollection of important corporate highlights
SOMERSET, NJ-(Marketwired - Jan 18, 2017) - MTBC (NASDAQ: MTBC),
a leading provider of proprietary, cloud-based electronic health
records, practice management and mHealth solutions, is pleased to
issue an in-depth year-end review of corporate accomplishments for
2016, as well as offer an outlook for what the Company expects for
2017.
Acquisitions
MTBC employs a tactical acquisition-based growth strategy. In
the 12 months of 2016, the Company successfully completed four
important acquisitions, including that of MediGain, LLC, a
Texas-based medical billing company, and its subsidiary, Millennium
Practice Management Associates, LLC. The MediGain acquisition,
which closed in October, is MTBC's most recent and largest
acquisition to-date. Incremental profits of this transaction are
expected to significantly exceed the cost of capital, and
management expects this transaction be accretive to shareholders in
2017.
"2016 was an exciting year for MTBC, ripe with strategic
milestones and new opportunities," said MTBC President Stephen
Snyder. "The resulting acquisitions have allowed MTBC to expand its
client base and will allow us to show significant revenue growth in
2017."
Organic Growth and Important Clients
MTBC added 76 new clients during 2016, the largest of which was
St. Anthony's Hospital with over 122 providers. In the fourth
quarter of 2016 alone, the Company added 35 new clients which, when
fully deployed, will generate over $1 million a year of revenue,
marking a record quarter in terms of sales activity.
The Company also launched a unique Client Loyalty Program to
recognize and reward all the physicians, practices and health
organizations who contribute to MTBC's success. Through this
program, 50 MTBC clients became shareholders.
"We greatly value our clients and their support of our corporate
endeavors to facilitate affordable, quality healthcare," says
Snyder. "We are the first healthcare IT company to offer a loyalty
program of this nature, and the positive feedback we have received
thus far validates client confidence in our model, services and
company."
Financial Performance
Highlights:
- Reported four consecutive quarters of positive Adjusted EBITDA
(Q4 2015 through Q3 2016)
- Completed its first financing using a "shelf registration"
statement, selling $1.6 million of additional Series A Preferred
Stock
- Repurchased additional shares of common stock through a stock
buyback program, bringing the total to 745,000 shares repurchased
since November 2015
- Paid 12 monthly dividends to Series A Preferred
Stockholders
"We were pleased to report four straight quarters of positive
Adjusted EBITDA, which for the most recent quarter (Q3) was
$130,000, or 2.4% of revenue," says MTBC Chief Financial Officer
Bill Korn. "We are beginning 2017 with refreshed synergies from our
latest acquisition, a strong team of global professionals, and
proprietary technology that positions us to continue this growth
trend."
Accolades
MTBC's success in the healthcare IT industry was once again
validated by a number of prestigious accolades, including its fifth
time to receive the Deloitte Technology Fast 500 award; and its
third Surescripts' "White Coat of Quality" award for clinical
quality excellence in e-Prescribing.
New Products
Remaining true to its roots in technology, MTBC introduced a
number of innovative products to the market, including the
Electronic Prescribing app for the Apple smartwatch. MTBC's Apple
Watch app is one of eight apps in the Company's mHealth suite.
Among other features, the app allows healthcare providers to view
patient refill requests and inbound communications, and then
leverage iRx to authorize refills, write new prescriptions and
access patients' medication - all from the convenience of their
Apple Watch.
MTBC also launched the free e-Prescribing solution to physicians
impacted by New York's "I-STOP" law, which requires that all
prescriptions be issues electronically; and other mobile health
apps.
Operational Highlights
MTBC also successfully consolidated a number of global
operational facilities to reduce overall general and administrative
expenditures. This was further supported by initiatives to reduce
dependence on subcontractors and third-party software, eliminating
leases of expensive space from acquisitions, and utilizing the
Company's offshore resources.
Additionally, the Company expanded its Asia-based team to
additional countries with talented cost-effective workforces.
Going Forward - Plans for 2017
Building on the momentum of 2016, MTBC has set several key
objectives for 2017, including the launch of inventive, disruptive
products that will help clients navigate the changing federal
healthcare policy.
Products ready for launch in the first quarter of 2017 include a
comprehensive Accountable Care Organizations (ACO) analytics
platform; a reinvented new Electronic Health Record platform; and a
solution to efficiently and effectively manage and maintain
enrollments for carriers, benefit administrators and groups.
Furthermore, MTBC is ramping up its business development
activities through a seasoned onshore team acquired as part of the
MediGain acquisition. This expansion will augment the Company's
organic growth model that garnered significant traction in
2016.
Additionally, the consolidation of its global operational
facilities will further reduce overall general and administrative
expenditures in 2017. MTBC will continue to reduce its dependence
on subcontractors and third-party software, transferring work to
its dedicated teams worldwide. The Company will also benefit from
moving out of expensive leased space from acquisitions.
"We had several impactful and defining achievements in 2016, and
we expect to maintain this pace in the upcoming year. We will
continue investing in new product developments that are expected to
be accretive to shareholders in 2017 and years to come, and our
company looks forward to building on the success we have created,"
said MTBC President Stephen Snyder.
About MTBC MTBC is a healthcare information technology company
that provides a fully integrated suite of proprietary web-based
solutions, together with related business services, to healthcare
providers practicing in ambulatory care settings. Our integrated
Software-as-a-Service (or SaaS) platform helps our customers
increase revenues, streamline workflows and make better business
and clinical decisions, while reducing administrative burdens and
operating costs. MTBC's common stock trades on the NASDAQ Capital
Market under the ticker symbol "MTBC," and its Series A Preferred
Stock trades on the NASDAQ Capital Market under the ticker symbol
"MTBCP."
For additional information, please visit our website at
www.mtbc.com.
Follow MTBC on Twitter, LinkedIn and Facebook.
Forward-Looking Statements This press release contains various
forward-looking statements within the meaning of the federal
securities laws. These statements relate to anticipated future
events, future results of operations or future financial
performance. In some cases, you can identify forward-looking
statements by terminology such as "may," "might," "will," "should,"
"intends," "expects," "plans," "goals," "projects," "anticipates,"
"believes," "estimates," "predicts," "potential," or "continue" or
the negative of these terms or other comparable terminology.
Our operations involve risks and uncertainties, many of which
are outside our control, and any one of which, or a combination of
which, could materially affect our results of operations and
whether the forward-looking statements ultimately prove to be
correct. Forward-looking statements in this press release include,
without limitation, statements reflecting management's expectations
for future financial performance and operating expenditures,
expected growth, profitability and business outlook, increased
sales and marketing expenses, and the expected results from the
integration of our acquisitions.
These forward-looking statements are only predictions, are
uncertain and involve substantial known and unknown risks,
uncertainties and other factors which may cause our (or our
industry's) actual results, levels of activity or performance to be
materially different from any future results, levels of activity or
performance expressed or implied by these forward-looking
statements. New risks and uncertainties emerge from time to time,
and it is not possible for us to predict all of the risks and
uncertainties that could have an impact on the forward-looking
statements, including without limitation, risks and uncertainties
relating to: the Company's ability to manage growth; integrate
acquisitions; effectively migrate and keep newly acquired customers
and other important risks and uncertainties referenced and
discussed under the heading titled "Risk Factors" in the Company's
filings with the Securities and Exchange Commission.
The statements in this press release are made as of the date of
this press release, even if subsequently made available by the
Company on its website or otherwise. The Company does not assume
any obligations to update the forward-looking statements provided
to reflect events that occur or circumstances that exist after the
date on which they were made.
Disclaimer: This press release is for information purposes only,
and does not constitute an offer to sell or solicitation of an
offer to buy, nor shall there be any sale of these securities in
any state or other jurisdiction in which such offer, solicitation
or sale would be unlawful prior to the registration or
qualification under the securities laws of such state or
jurisdiction.
SOURCE MTBC
Contact Information
Investor and Media Contact: Christine J. Petraglia Managing
Director PCG Advisory Group christine@pcgadvisory.com 646-731-9817
Company Contact: Bill Korn Chief Financial Officer Medical
Transcription Billing, Corp. bkorn@mtbc.com 732-873-5133
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