American Medical Alert Corp. (NASDAQ: AMAC) a provider of
healthcare communication services and advanced telehealth
monitoring technologies, today announced operating results for the
quarter ended March 31, 2011, the highlights of which are as
follows:
- Company achieves record quarterly
earnings of $1,046,378 or $0.11 per diluted share, excluding the
impact of its equity in net loss from investment in Lifecomm, for
the quarter ended March 31, 2011.
- Company continues revenue momentum
within the TBCS division and records second consecutive quarter of
double digit growth as compared to the same quarters in the prior
year, primarily as a result of business generated from new awards
in the pharmaceutical channel and expanded business within its
non-traditional offerings to hospital organizations.
- Company’s investment in the next
generation of mobile PERS continues to move forward and is on
target for a January 2012 rollout.
- Company has built up cash on hand in
excess of $6,400,000 and had working capital of over $11,700,000 at
March 31, 2011.
Revenues for the quarter ended March 31, 2011, consisting
primarily of monthly recurring revenues (MRR) increased 7% to
$10,631,733 as compared to $9,911,247 for the same period in 2010.
Net income for the quarter ended March 31, 2011 increased 18% to
$1,046,378 or $0.11 per diluted share compared to $887,372 or $0.09
per diluted share for the same period in 2010. Net income for the
quarter ended March 31, 2011 excludes $336,799 of the Company’s
share of equity in net loss from investment in limited liability
company net of income taxes, incurred with respect to the Company’s
joint venture with Qualcomm and Hughes Telematics, Inc. (known as
the “Lifecomm Joint Venture”). This equity loss represents the
Company’s share of R&D and other selling, general and
administrative expenses incurred for the development of the next
generation mobile PERS. This equity loss, which is expected to
continue over the next several quarters, is not related to the
Company’s current business operations. As it relates to this equity
loss, the Company will realize a significant tax benefit and have
less cash outlay relating to income taxes. The Company’s net income
for the quarter ended March 31, 2011 including the effect of this
charge was $709,579, or $.07 per diluted share.
Earnings before interest, taxes and depreciation and
amortization for the three months ended March 31, 2011, excluding
$559,882 of the Company’s share of equity loss incurred with
respect to the Lifecomm Joint Venture (“EBITDA”), was $2,532,074 as
compared to $2,429,414 for the same period in 2010. EBITDA for the
trailing twelve months ended March 31, 2011, which excludes
$1,740,008 of the Company’s share of equity loss incurred with
respect to the Lifecomm Joint Venture was $9,069,504. EBITDA for
the trailing twelve months ended March 31, 2010 was $9,037,304.
The Company continues to demonstrate increasing financial
strength within its balance sheet reflecting improved liquidity,
working capital and debt to equity ratio as follows:
- The Company’s cash on hand at March 31,
2011 was $6,444,200 as compared to $4,090,528 at December 31,
2010.
- The Company’s working capital increased
to $11,783,665 at March 31, 2011, as compared to $10,043,976 at
December 31, 2010, representing a 17% increase.
- The Company continues to pay down its
debt in 2011 and had a debt to equity ratio of .09 to 1 at March
31, 2011.
Jack Rhian, AMAC’s Chief Executive Officer and President,
explained, “Our Q1 results affirm that AMAC is on track to deliver
double digit revenue growth while continuing to drive respectable
earnings and free cash flow in 2011. We continue to refine and
narrow our focus to allow our sales and marketing teams to
concentrate their efforts to drive top line from our core
offerings. We intend to meet our guidance primarily through the
continued distribution and monitoring of our PERS devices and
through our communication services offerings to the pharmaceutical
and hospital industries. With these efforts, we expect revenue
growth to accelerate in the second half of the year in each of
these business lines.
We believe the result of these efforts will provide for
continued growth as we advance into 2012 through the anticipated
launch of our next generation cellular Remote Patient Monitoring
(“RPM”) suite designed to improve patient access and usage of PERS,
med management and telehealth. In addition to the Lifecomm
offering, our planned investments in cellular communication
protocols as an adjunct to landline based telephone connectivity
will allow us to enjoy a first mover advantage in the PERS space
and will also provide us with the opportunity to broaden our RPM
offerings as we migrate to a more powerful, cellular gateway. Of
equal importance are the growth opportunities we anticipate from
new channel relationships being established with well recognized,
big brand companies and national healthcare providers.
AMAC’s ability to provide high touch, cost effective service
from our national call center infrastructure has been a key factor
in the significant uptick of awards we have recently secured in
both the pharmaceutical and hospital solutions channels. It is also
our belief that as we transition to a more clinically managed
operation; we will see the size and pace of new awards increase in
both the technology and service side of our business.
As mentioned during our last shareholder conference call, we
also plan to accelerate the pace of strategic acquisitions of small
PERS companies as well as other call center businesses as a means
of growing our subscriber and customer base and adding profitable
business to our recurring revenue base.
While we are reticent to disclose many details of the specific
awards we receive because it places us at a competitive
disadvantage to do so, we believe that we will be able to
demonstrate the success of our strategy through the results of
operation. We look forward to discussing our business further with
shareholders during this morning’s shareholder conference
call.”
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.
First Quarter 2011 Results
When: Wednesday, May 11, 2011 at
10:30 a.m. ET
Where:
http://www.investorcalendar.com/IC/CEPage.asp?ID=164372
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=164372. 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 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, Alpha Message Center 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, depreciation and
amortization and equity in net loss from investment in a limited
liability, company (“EBITDA”)” and “Net Income before equity in net
loss from investment in a limited liability company”. 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 measures used in
this press release are 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,
declare and pay dividends, reinvest in new telehealth products
and liquidate liabilities. Management also uses EBITDA for planning
purposes to determine appropriate levels of operating and capital
investments. Management also believes reporting Net Income before
Equity in net loss from investment in a limited liability company
more accurately reflects the performance of the Company’s core
operations and excludes a non-operational item which may skew the
analysis of management or outside investors in evaluating the
Company.
EBITDA and Net Income before Equity in net loss from investment
in a limited liability company are non-GAAP financial measures and
although management and some members of the investment community
utilize it to measure financial performance, EBITDA and Net Income
before Equity in net loss from investment in a limited liability
company 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. In addition,
certain statements related to the future expectations and timing
for the development and commercialization of Lifecomm’s mobile PERS
solution, constitute forward-looking statements. Important factors
which might cause a difference between actual and expected events
include: (i) greater than expected and/or increased costs or
unexpected delays associated with the development and
commercialization of Lifecomm’s mobile PERS solution, (ii)
inability to successfully develop the technology to support
Lifecomm’s mobile PERS solution, (iii) uncertainty relating to
consumer interest in and acceptance of Lifecomm’s mobile PERS
solution, (iv) risks associated with changes in the competitive or
regulatory environment in which Lifecomm operates; and (v) risks
associated with prosecuting or defending allegations or claims of
infringement of intellectual property rights. Further, any of the
Company’s new products such as MedSmart and TeleSmart, are subject
to the risks inherent in any new product introduction, including
market acceptance and technology concerns that are frequently
encountered in connection with initial use of a new product. New
business opportunities referred to herein, including contracts in
negotiation, may not come to fruition. The Company’s acquisition
strategy depends upon the Company’s ability to locate appropriate
acquisition targets, successfully negotiate agreements to
consummate acquisitions, and successfully integrate completed
acquisitions, all of which are subject to significant uncertainty.
The Company does not undertake any obligation to update these
forward-looking statements for events occurring after the date of
this press release.
Statements of income for the three months ended March 31, 2011
and 2010 and balance sheets as of March 31, 2011 and December 31,
2010 are attached.
AMAC SELECTED FINANCIAL DATA
Three Months Ended
3/31/2011 3/31/2010
Revenues $ 10,631,733 $ 9,911,247 Cost of
Goods Sold 4,861,544 4,523,439 Selling, General &
Administrative Costs 4,028,416 3,907,833 Interest Expense 14,660
12,431 Equity in net loss from investment in a limited liability
company 559,882 - Other Expenses (Income) (12,348 ) (29,828 )
Income before Provision for Income Taxes 1,179,579 1,497,372
Net Income $ 709,579 $ 887,372 Net Income per Share
Basic $ 0.07 $ 0.09 Diluted $ 0.07 $ 0.09 Basic Weighted
Average Shares Outstanding 9,573,240 9,526,434 Diluted
Weighted Average Shares Outstanding 9,832,863 9,841,887
CONDENSED BALANCE SHEET March 31, December 31,
2011 2010 (Unaudited) Current
Assets $ 15,245,124 $ 13,787,609 Fixed Assets – Net 6,776,048
7,195,019 Other Assets 15,845,803 16,534,857
Total
Assets $ 37,866,975 $ 37,517,485 Current
Liabilities $ 3,461,459 $ 3,743,633 Deferred Income Tax 1,210,000
1,228,000 Long-term Debt 2,050,000 2,150,000 Other Liabilities
711,348 740,034
Total Liabilities $ 7,432,807 $
7,861,667 Stockholders’ Equity 30,434,168 29,655,818
Total Liabilities and Stockholders’ Equity $ 37,866,975 $
37,517,485
Net Income before Equity in net loss from investment in a
limited liability company for the three months ended March 31, 2011
and 2010 reconciled to net income.
Three Months Ended
3/31/2011
3/31/2010 Net Income 709,579 887,372 Add
Backs: Equity in net loss from investment in a limited liability
company 336,799 -
Net Income before Equity in net
loss from investment in a limited liability 1,046,378 887,372
Net Income per share before Equity in net loss from investment
in a limited liability company for the three months ended March 31,
2011 and 2010 reconciled to net income per share.
Three Months Ended
3/31/2011
3/31/2010 Net Income per share $ 0.07 $
0.09 Add Backs: Equity in net loss from investment in a limited
liability company per share $ 0.04 -
Net Income
per share before Equity in net loss from investment in a limited
liability $ 0.11 $ 0.09
Earnings before interest, taxes and depreciation and
amortization for the three months and trailing twelve months ended
March 31, 2011 and 2010.
Add:
Less:
3/31/11 12/31/2010
Subtotal 3/31/2010
Total Net Income 709,579 2,385,566
3,095,145
887,372
2,207,773 Add Backs: Taxes 470,000 1,550,000
2,020,000 610,000
1,997,000 Interest 14,660 61,283
75,943 12,431
63,512 Depreciation & Amort.
777,953 3,789,869
4,467,822 919,611
3,648,211 Equity
in net loss from investment in a limited liability company 559,882
1,180,126 1,740,008 - 1,740,008
EBITDA
2,532,074 9,069,504 Add:
Less: 3/31/10
12/31/2009 Subtotal
3/31/2009 Total Net Income
887,372 2,889,513
3,776,885 773,250
3,003,635
Add Backs: Taxes 610,000 1,925,000
2,535,000 538,000
1,997,000 Interest 12,431 76,181
88,612 23,682
64,930 Depreciation & Amort. 919,611 4,103,100
5,022,711 1,050,972
3,971,739 Equity in net loss from
investment in a limited liability company -
- - - -
EBITDA 2,429,414 9,037,304
American Medical Alert (NASDAQ:AMAC)
Historical Stock Chart
From Jun 2024 to Jul 2024
American Medical Alert (NASDAQ:AMAC)
Historical Stock Chart
From Jul 2023 to Jul 2024