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 nine months ended September 30, 2009, the highlights of
which are as follows:
- Company-wide net income
increased approximately 61% for the three months ended September
30, 2009 as compared to same period last year and increased
approximately 55% for the nine months ended September 30, 2009 as
compared to same period last year.
- Company has built up cash on
hand in excess of $5,500,000 at September 30, 2009 and now has
working capital of approximately $8,900,000.
- Company executes agreement
with Apria Healthcare Group Inc. to form a strategic alliance in
which the two companies will collaborate to provide personal
emergency response systems. Under the new agreement, AMAC will be
Apria’s exclusive provider of PERS products and services.
Revenues for the quarter ended September 30, 2009, consisting
primarily of monthly recurring revenues (MRR), increased 5% to
$10,121,804 as compared to $9,671,087 for the same period in 2008.
Net income for the quarter ended September 30, 2009 increased 61%
to $744,145 or $.08 per diluted share as compared to $461,534 or
$.05 per diluted share for the same period in 2008.
Revenues for the nine months ended September 30, 2009 increased
2% to $29,536,343, as compared to $28,846,153 for the same period
in 2008. Net income for the nine months ended September 30, 2009
increased 55% to $2,125,780 or $0.22 per diluted share as compared
to net income of $1,371,917 or $0.14 per diluted share for the
previous year. Net Income for the trailing twelve months ended
September 30, 2009 and 2008 was $2,193,464 and $1,689,252
respectively, representing an increase of 30%. Earnings before
interest, taxes and depreciation and amortization (“EBITDA”) for
the nine months ended September 30, 2009 increased 16% to
$6,723,948 as compared to $5,780,627 for the same period in 2008.
EBITDA for the trailing twelve months ended September 30, 2009 and
2008 was $8,045,690 and $7,611,341.
The Company continues to generate positive operating cash flow
and at September 30, 2009 had a cash balance of $5,546,314, as
compared to $2,473,733 at December 31, 2008. Along with this, the
Company had working capital of $8,919,179 as of September 30, 2009,
compared to $5,886,000 at December 31, 2008, representing a 52%
increase. The Company also reduced its long-term debt by $1,518,282
during the period from December 31, 2008 to September 30, 2009.
The Company anticipates it will exceed its earnings guidance of
$2,750,000 issued on July 30, 2009 by approximately 4% while
revenue guidance of $40,750,000 is projected to fall short by
approximately 2%. The adjustment to the revenue guidance is
primarily the result in the delay of the commercial release of the
MedSmart medication and management system. Due to the Company’s
ability to operate at higher operating margins than anticipated,
the Company is able to forecast greater earnings results despite
the revenue shortfall.
Jack Rhian, AMAC’s Chief Executive Officer and President,
explained, “The third quarter operating metrics including net
earnings, EBITDA and cash flow further validate that our current
book of recurring revenue is capable of generating substantial
profitability. As we indicated last quarter, management’s primary
focus is now directed at revenue enhancement.
AMAC has established a compelling value proposition as a
provider of remote patient monitoring products and healthcare
communication services. Nationally respected healthcare entities
and technology players are recognizing AMAC as a company to
collaborate with because of either the full spectrum of our
monitoring portfolio and/or strength of our communication center
infrastructure. Most recently, Apria Healthcare chose to work
exclusively with AMAC for the provision of PERS service to offer
our monitoring solution to their vast patient population.
MedSmart™, our medication adherence and reporting system is now
commercially available and receiving positive reviews from our
first customers. We plan to market this innovative product through
multiple business to business and direct to consumer channels. We
expect MedSmart to become an incremental revenue growth driver for
HSMS in 2010. Our TBCS group is also proving the value proposition
of providing customer centric, hospital based and clinical trial
call center support to the pharmaceutical industry and large
hospitals.
Concurrently, we also continue to work on refining and deploying
a low cost telehealth solution whereby we can direct the collective
data from both medication adherence and vital signs capture and
report cumulative information to clinical professionals in a useful
and efficient format. We believe that the duality of this data set
will prove most helpful for providers to manage large numbers of
patients with a variety of chronic conditions including CHF,
hypertension, asthma and diabetes in efficient fashion.”
Rhian continued, “As we all wait to see the final details of the
federal government’s proposed healthcare reform, we believe AMAC
has uniquely positioned itself to succeed and prosper because of
the following:
- The onset of a rapidly growing
aging population will increase the prevalence of chronic
illness.
- Today’s healthcare system is
grossly unprepared for millions of baby boomers about to become
eligible for Medicare.
- There is an increasing demand
for inexpensive, high touch solutions to connect healthcare
practitioners to patients to obtain quality healthcare and promote
adherence.
We believe the scope of new revenue generation that can arise
from these opportunities, when added to our current, stable and
profitable book of recurring revenue, allows us to look forward
with optimism to 2010.”
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. Third Quarter 2009
Results
When: Thursday November 12, 2009 10:30 a.m. ET
Where:
http://www.investorcalendar.com/IC/CEPage.asp?ID=151913
How:
Log on to the web at the address
above, and click on the audio link or dial 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=151913. 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 eight US based, communication centers under local trade
names: HLINK OnCall, North Shore TAS, Live Message America, ACT
Teleservice, MD OnCall, Capitol Medical Bureau, American
MediConnect, and Phone Screen 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. The projected
results are in part dependent on the accuracy of management’s
estimation of projected revenues of its newly introduced Med-Smart
product. While management believes that its current estimates are
reasonable, revenue projections for newly introduced products are
inherently less reliable due to a lack of sales history.
Statements of income for the three and nine months ended
September 30, 2009 and 2008 and balance sheets as of September 30,
2009 and December 31, 2008 are attached.
AMAC SELECTED FINANCIAL DATA
Three Months Ended Nine Months Ended
9/30/2009 9/30/2008
9/30/2009
9/30/2008
Revenues $ 10,121,804 $ 9,671,087 $ 29,536,343 $ 28,846,153
Cost of Goods Sold 4,670,545 4,553,222 13,855,052 13,913,681
Selling, General & Administrative Costs 4,245,159 4,356,924
12,238,349 12,630,836 Interest Expense 17,330 57,205 61,632 224,073
Other Expenses (Income) (72,375 ) (77,798 ) (222,470 ) (247,354 )
Income before Provision for Income Taxes 1,261,145 781,534
3,603,780 2,324,917 Net Income $ 744,145 $ 461,534 $
2,125,780 $ 1,371,917 Net Income per Share Basic $ 0.08 $
0.05 $ 0.22 $ 0.15 Diluted $ 0.08 $ 0.05 $ 0.22 $ 0.14 Basic
Weighted Average Shares Outstanding 9,495,036 9,439,592 9,472,938
9,421,121 Diluted Weighted Average Shares Outstanding
9,756,468 9,689,775 9,689,676 9,702,142
CONDENSED
BALANCE SHEET September 30, December 31,
2009
2008 (Unaudited)
ASSETS Current Assets $
13,753,579 $ 10,054,379 Fixed Assets – Net 9,061,106 10,169,907
Other Assets 13,537,245 14,141,978
Total Assets $
36,351,930 $ 34,366,264 Current Liabilities $
4,834,400 $ 4,168,379 Deferred Income Tax 1,285,000 1,208,000
Long-term Debt 1,550,000 2,815,000 Other Liabilities 686,768
623,708
Total Liabilities $ 8,356,168 $ 8,815,087
Stockholders’ Equity 27,995,762 25,551,177
Total
Liabilities and Stockholders’ Equity $ 36,351,930 $ 34,366,264
Earnings before interest, taxes and depreciation and
amortization for the nine months and trailing twelve months ended
September 30, 2009 and 2008.
Add: Less:
9/30/09 12/31/2008
Subtotal 9/30/2008
Total Net Income 2,125,780 1,439,601
3,565,381
1,371,917
2,193,464 Add Backs: Taxes 1,478,000 1,007,000
2,485,000 953,000
1,532,000 Interest 61,632 279,451
341,083 224,073
117,010 Depreciation & Amort.
3,058,536 4,376,317
7,434,853 3,231,637
4,203,216
EBITDA 6,723,948 8,045,690
Add: Less: 9/30/08
12/31/2007 Subtotal
9/30/2007 Total Net Income
1,371,917 1,514,232
2,886,149 1,196,897
1,689,252 Add
Backs: Taxes 953,000 1,146,000
2,099,000 913,000
1,186,000 Interest 224,073 481,166
705,239 375,605
329,634 Depreciation & Amort. 3,231,637 4,302,118
7,533,755 3,127,300
4,406,455
EBITDA 5,780,627 7,611,341
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