American Medical Alert Corp. (NASDAQ: AMAC) a provider of
healthcare communication services and advanced telehealth
monitoring technologies, today announced operating results for the
quarter and six months ended June 30, 2009, the highlights of which
are as follows:
- Company-wide net income
increased approximately 52% for the six months ended June 30, 2009
as compared to same period last year.
- HSMS division records another
new high with gross profit of approximately 59% for the three
months ending June 30, 2009.
- Company has built up cash on
hand in excess of $5,000,000 at June 30, 2009, which exceeds the
Company’s total bank debt.
Revenues for the quarter ended June 30, 2009, consisting
primarily of monthly recurring revenues (MRR), decreased nominally
to $9,502,312 as compared to $9,539,321 for the same period in
2008. Net income for the quarter ended June 30, 2009 increased 33%
to $608,385 or $.06 per diluted share as compared to $458,026 or
$.05 per diluted share for the same period in 2008.
Revenues for the six months ended June 30, 2009 increased 1% to
$19,414,539, as compared to $19,175,066 for the same period in
2008. Net income for the six months ended June 30, 2009 increased
52% to $1,381,635 or $0.14 per diluted share as compared to net
income of $910,383 or $0.09 per diluted share for the previous
year. Net Income for the trailing twelve months ended June 30, 2009
and 2008 was $1,910,853 and $1,650,647 respectively, representing
an increase of 16%. Earnings before interest, taxes and
depreciation and amortization (“EBITDA”) for the six months ended
June 30, 2009 increased 15% to $4,428,102 as compared to $3,847,277
for the same period in 2008. EBITDA for the trailing twelve months
ended June 30, 2009 and 2008 was $7,683,194 and $7,711,061.
The Company continues to generate positive operating cash flow
and at June 30, 2009 had a cash balance of $5,047,160, as compared
to $2,473,733 at December 31, 2008. Along with this, the Company
had working capital of $7,957,254 as of June 30, 2009, compared to
$5,886,000 at December 31, 2008, representing a 35% increase. The
Company also reduced its long-term debt by $1,163,282 during the
period from December 31, 2008 to June 30, 2009.
Jack Rhian, AMAC’s Chief Executive Officer and President,
explained, “The results of the past six months of 2009 reflect
management’s ability to deliver improved profitability to our
shareholders. This profitability trend underlines the resilience of
our business model and the capacity for increased profitability
from new revenue going forward as revenue is projected to improve
throughout the remainder of 2009.”
Rhian continued, "As indicated in the first quarter and through
our guidance issued on July 30, 2009, as we move into the second
half of 2009, management is concentrating on key selling and
product development initiatives to improve short and long term top
line growth. The Company has begun marketing its new MedSmart
medication management system as well as continuing to focus on
expansion opportunities within the remote patient monitoring space.
As previously shared, the Company has recently executed several
contracts for its hospital and clinical applications
and clinical trial recruitment support services which are
expected to positively impact revenue growth the second half of the
year. Our business remains solid and we continue to generate
excellent cash flow and maintain a strong financial position
despite the uncertain economic environment. Our ability to generate
significant levels of free cash flow will allow the Company to
acquire additional RPM technology and support systems. We remain
committed to implementing our strategy to strengthen our market
position while carefully managing our costs.”
The Company invites investors and others to listen to the
conference call live over the Internet or by dialing in to (877)
407-9205 at 10:30 a.m. ET.
What: American Medical Alert Corp. Second Quarter
2009 Results
When: Tuesday August 11, 2009 10:30 a.m. ET
Where:
http://www.investorcalendar.com/IC/CEPage.asp?ID=148319
How: Log on to the web at the address above, and click on
the audio link ordial in (877) 407-9205 to participate.
Following the conference call, the webcast will be available on
the VCall website at
http://www.investorcalendar.com/IC/CEPage.asp?ID=148319. The
financial information presented in the webcast will also be
available at http://amac.com/press.cfm.
About American Medical Alert Corp.
AMAC is a healthcare communications company dedicated to the
provision of support services to the healthcare community. AMAC's
product and service portfolio includes Personal Emergency Response
Systems (PERS) and emergency response monitoring, electronic
medication reminder devices, disease management monitoring
appliances and healthcare communication solutions services. AMAC
operates nine communication centers under local trade names: HLINK
OnCall, Long Island City, NY and Clovis NM, North Shore TAS, Port
Jefferson, NY, Live Message America, Audubon, NJ, ACT Teleservice,
Newington, CT and Springfield, MA, MD OnCall, Cranston RI and
Capitol Medical Bureau Rockville, MD, American MediConnect and
Phone Screen Chicago, IL to support the delivery of high quality,
healthcare communications.
Use of Non-GAAP Financial Information
In addition to the results reported in accordance with
accounting principles generally accepted in the United States
(“GAAP”) included in this press release, the Company has provided
information regarding certain non-GAAP financial measure. This
measure is “earnings before interest, taxes and depreciation and
amortization (“EBITDA”)”. Such information is reconciled to its
closest GAAP measure in accordance with the Securities and Exchange
Commission rules and is included in the attached supplemental
data.
Management believes that the non-GAAP financial measure used in
this press release is useful to both management and investors in
their analysis of the Company’s financial position and results of
operations. Management believes that EBITDA is a useful measure of
the Company's financial performance as it is an indicator of the
Company's ability to generate cash flow to make acquisitions,
reinvest in new telehealth products and liquidate liabilities.
Management also uses EBITDA for planning purposes to determine
appropriate levels of operating and capital investments.
EBITDA is a non-GAAP financial measure and although management
and some members of the investment community utilize it to measure
financial performance, EBITDA should not be viewed as a substitute
for financial data prepared in accordance with GAAP or as a measure
of profitability. Additionally, the non-GAAP financial measure as
presented by AMAC may not be comparable to similarly titled
measures reported by other companies.
Forward Looking Statements
This press release contains forward-looking statements that
involve a number of risks and uncertainties. Forward-looking
statements may be identified by the use of forward-looking
terminology such as "may," "will," "expect," "believe," "estimate,"
"anticipate," "continue," or similar terms, variations of those
terms or the negative of those terms. Important factors that could
cause actual results to differ materially from those indicated by
such forward-looking statements are set forth in the Company's
filings with the Securities and Exchange Commission (SEC),
including the Company's Annual Report on Form 10-K, the Company's
Quarterly Reports on Forms 10-Q, and other filings and releases.
These include uncertainties relating to government regulation,
technological changes and product liability risks.
Statements of income for the three and six months ended June 30,
2009 and 2008 and balance sheets as of June 30, 2009 and December
31, 2008 are attached.
AMAC SELECTED FINANCIAL DATA
Three Months Ended Six Months Ended
6/30/2009 6/30/2008
6/30/2009
6/30/2008
Revenues $ 9,502,312 $ 9,539,321 $ 19,414,539 $ 19,175,066
Net Income $ 608,385 $ 458,026 $ 1,381,635 $ 910,383
Net Income per Share Basic $ 0.06 $ 0.05 $ 0.15 $ 0.10 Diluted $
0.06 $ 0.05 $ 0.14 $ 0.09 Basic Weighted Average Shares
Outstanding 9,469,908 9,417,701 9,461,888 9,411,886 Diluted
Weighted Average Shares Outstanding 9,720,829 9,717,985 9,651,024
9,708,325
CONDENSED BALANCE SHEET June 30,
December 31,
2009 2008 (Unaudited)
ASSETS Current Assets $ 12,076,430 $ 10,054,379 Fixed
Assets – Net 9,603,473 10,169,907 Other Assets 13,561,180
14,141,978
Total Assets $ 35,241,083 $ 34,366,264
Current Liabilities $ 4,119,176 $ 4,168,379
Deferred Income Tax 1,262,000 1,208,000 Long-term Debt 2,105,000
2,815,000 Other Liabilities 649,838 623,708
Total
Liabilities $ 8,136,014 $ 8,815,087 Stockholders’ Equity
27,105,069 25,551,177
Total Liabilities and
Stockholders’ Equity
$ 35,241,083 $ 34,366,264
Earnings before interest, taxes and depreciation and
amortization for the six months and trailing twelve months ended
June 30, 2009 and 2008.
Add: Less:
6/30/09 12/31/2008
Subtotal 6/30/2008
Total Net Income 1,381,635 1,439,601
2,821,236
910,383
1,910,853 Add Backs: Taxes 961,000 1,007,000
1,968,000 633,000
1,335,000 Interest 44,302 279,451
323,753 166,868
156,885 Depreciation & Amort.
2,041,165 4,376,317
6,417,482 2,137,026
4,280,456
EBITDA 4,428,102 7,683,194
Add: Less: 6/30/08
12/31/2007 Subtotal
6/30/2007 Total Net Income
910,383 1,514,232
2,424,615 773,968
1,650,647 Add
Backs: Taxes 633,000 1,146,000
1,779,000 596,000
1,183,000 Interest 166,868 481,166
648,034 255,136
392,898 Depreciation & Amort. 2,137,026 4,302,118
6,439,144 1,954,628
4,484,516
EBITDA 3,847,277 7,711,061
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