BioTelemetry, Inc. (NASDAQ:BEAT), the leading wireless medical
technology company focused on the delivery of health information to
improve quality of life and reduce cost of care, today reported
results for the third quarter ended September 30, 2015.
Company Highlights
- Achieved second consecutive quarter of profitability with $2.5
million GAAP net income
- Experienced thirteenth consecutive quarter of year over year
revenue growth
- Generated positive adjusted EBITDA of $8.7 million, highest
since 2008
- CMS issued final 2016 physician fee schedule with an increase
of 8% for Mobile Cardiac Telemetry
- Serviced over 1,000 CardioKey patients, the Company’s new
low-cost, 14 day Holter
- Expecting low double-digit revenue growth and 20% adjusted
EBITDA margin for 2016
President and CEO Commentary
Joseph Capper, President and Chief Executive Officer of
BioTelemetry, Inc., commented: “Our third quarter results were
driven by the successful execution of our corporate strategy.
We delivered another quarter of strong financial performance with
adjusted EBITDA of $8.7 million, beating our expectations and
representing the sixth consecutive quarter of EBITDA growth.
This equates to a 20% return, the highest since 2008, and is a
direct result of the implementation of our growth and efficiency
measures implemented throughout this year.
“Our third quarter revenue came in at $43.5 million, a slight
increase over the prior year. While both Healthcare and
Research revenue were higher year over year, our overall revenue
growth was negatively impacted by lower product sales from our
Technology division. Given the lower than expected third
quarter topline growth, we are revising our full year 2015 revenue
growth expectation to be in the mid-to-high single digits.
However, since Technology sales generate lower margins in
comparison to our Healthcare and Research businesses, we remain on
track to achieve our previously issued guidance of over $32 million
in adjusted EBITDA for the full year 2015, a 60% increase over the
prior year.
“The Company’s outlook as we prepare to enter 2016 has never
been better. We are investing in and expanding our product
and service offerings, we continue to grow our Research backlog,
and we exited the quarter posting some of the best patient volume
trends in the history of the Company. We also just received
positive news with the confirmation that the final 2016 CMS Rule
includes an 8.0% increase to our mobile cardiac telemetry Medicare
rate. This will have an estimated impact of approximately $5
million to both our top and bottom lines in 2016. With the
improving trends in the business, coupled with the impact of the
Medicare rate increase, we expect 2016 to be a record year for
BioTelemetry with low double-digit revenue growth and 20% adjusted
EBITDA margin.”
Third Quarter Financial Results
Revenue for the third quarter 2015 was $43.5 million compared to
$43.1 million for the third quarter 2014, an increase of $0.4
million, or 0.9%. This increase was due to $1.0 million
higher Healthcare revenue as a result of favorable pricing related
to the timing of providing services and an improved payor
mix. In addition, Research revenue increased $0.7 million due
to higher study volume. These increases were partially offset
by a decline of $1.3 million in Technology revenue due to
lower product sales volume. For the three months ended
September 30, 2015, Healthcare revenue was comprised of 43.0%
Medicare and 57.0% commercial.
Gross profit for the third quarter 2015 increased to $26.3
million, or 60.6% of revenue, compared to $23.7 million, or 54.9%
of revenue, in the third quarter 2014. Gross profit for the
third quarter 2014 on an adjusted basis was $24.2 million, or 56.2%
of revenue, excluding $0.5 million related to the integration of
our 2014 acquisitions. The increase on an adjusted basis of
$2.1 million was due to higher Healthcare pricing, operational
efficiencies and wireless device communication savings.
On a GAAP basis, operating expenses for the third quarter 2015
were $23.3 million, compared to $23.2 million in the third quarter
2014. On an adjusted basis, operating expenses for the third
quarter were $21.9 million, compared to $22.1 million for the prior
year quarter. Higher general and administrative expense due
to increased headcount and higher infrastructure costs along with
higher bad debt expense due to timing was offset by lower sales and
marketing headcount related expense and lower research and
development consulting related to the development of the next
generation device. These adjusted operating expenses exclude
$1.4 million in the third quarter 2015 primarily related to patent
litigation. Adjusted operating expenses for the third quarter
2014 exclude $1.1 million primarily related to integration
activities surrounding the 2014 acquisitions, as well as legal fees
from patent litigation and the Civil Investigative Demand.
On a GAAP basis, interest and other loss, net for the third
quarter 2015 was $0.4 million, compared to $0.3 million in the
third quarter 2014. The increase is related to additional
interest expense due to the expanded debt capacity secured in
December 2014.
On a GAAP basis, net income for the third quarter 2015 was $2.5
million, or $0.08 per diluted share, compared to breakeven for the
third quarter 2014. Excluding expenses related to other
charges, adjusted net income for the third quarter 2015 was $3.9
million, or $0.13 per diluted share. This compares to an
adjusted net income of $1.6 million, or $0.06 per diluted share,
for the third quarter 2014, which excludes the impact of other
charges.
Liquidity
As of September 30, 2015, total cash was $15.5 million, a
decrease of $4.5 million compared to December 31, 2014. The
significant cash uses during the first three quarters of 2015
include the $6.4 million settlement with the Department of Justice
and $10.3 million for capital expenditures, primarily medical
devices. These uses were partially offset by cash generated
from operations. Consolidated days sales outstanding stayed
flat to December 31, 2014 at 51 days.
As of September 30, 2015, the Company had outstanding debt of
$24.4 million, exclusive of debt discount. The Company also
has access to a $15.0 million revolving credit facility which
remains undrawn.
Conference
Call
BioTelemetry, Inc. will host an earnings conference call on Monday,
November 9, 2015, at 5:00 PM Eastern Time. The call will be
simultaneously webcast on the investor information page of our
website, www.gobio.com. The call will be archived on our
website for two weeks.
About BioTelemetryBioTelemetry, Inc., formerly
known as CardioNet, Inc., is the leading wireless medical
technology company focused on the delivery of health information to
improve quality of life and reduce cost of care. The Company
currently provides cardiac monitoring services, original equipment
manufacturing with a primary focus on cardiac monitoring devices
and centralized cardiac core laboratory services. More
information can be found at www.gobio.com.
Cautionary Statement Regarding Forward-Looking
Statements This document includes certain forward-looking
statements within the meaning of the “Safe Harbor” provisions of
the Private Securities Litigation Reform Act of 1995. These
statements may be identified by words such as “expect,”
“anticipate,” “estimate,” “intend,” “plan,” “believe,” “promises”
and other words and terms of similar meaning. Such
forward-looking statements are based on current expectations and
involve inherent risks and uncertainties, including important
factors that could delay, divert, or change any of these
expectations, and could cause actual outcomes and results to differ
materially from current expectations. These factors include,
among other things, our ability to successfully integrate
acquisitions into our business and the effect such acquisitions
will have on our results of operation, effectiveness of our cost
savings initiatives, relationships with our government and
commercial payors, changes to insurance coverage and reimbursement
levels for our products, the success of our sales and marketing
initiatives, our ability to attract and retain talented executive
management and sales personnel, our ability to identify acquisition
candidates, acquire them on attractive terms and integrate their
operations into our business, the commercialization of new
products, market factors, internal research and development
initiatives, partnered research and development initiatives,
competitive product development, changes in governmental
regulations and legislation, the continued consolidation of payors,
acceptance of our new products and services, patent protection,
adverse regulatory action, and litigation success. For
further details and a discussion of these and other risks and
uncertainties, please see our public filings with the Securities
and Exchange Commission, including our latest periodic reports on
Form 10-K and 10-Q. We undertake no obligation to
publicly update any forward-looking statement, whether as a result
of new information, future events, or otherwise.
|
|
|
Three Months Ended |
Consolidated Statements of Operations |
(unaudited) |
(In
Thousands, Except Per Share Amounts) |
|
|
|
|
|
|
September
30,2015 |
|
September
30,2014 |
|
|
|
|
|
Revenues |
$ |
43,492 |
|
|
$ |
43,113 |
|
Cost of
revenues |
|
17,155 |
|
|
|
19,435 |
|
Gross
profit |
|
26,337 |
|
|
|
23,678 |
|
Gross
profit % |
|
60.6 |
% |
|
|
54.9 |
% |
|
|
|
|
|
Operating
expenses: |
|
|
|
General and
administrative |
|
11,497 |
|
|
|
10,987 |
|
Sales and
marketing |
|
6,632 |
|
|
|
7,299 |
|
Bad debt expense |
|
2,245 |
|
|
|
1,868 |
|
Research and
development |
|
1,565 |
|
|
|
1,993 |
|
Other charges |
|
1,392 |
|
|
|
1,045 |
|
Total
operating expenses |
|
23,331 |
|
|
|
23,192 |
|
|
|
|
|
|
Income from
operations |
|
3,006 |
|
|
|
486 |
|
Interest
and other loss, net |
|
(391 |
) |
|
|
(293 |
) |
|
|
|
|
|
Income
before income taxes |
|
2,615 |
|
|
|
193 |
|
Provision
for income taxes |
|
(137 |
) |
|
|
(222 |
) |
Net Income
(loss) |
$ |
2,478 |
|
|
$ |
(29 |
) |
|
|
|
|
|
Net income
(loss) per share (a): |
|
|
|
Basic |
$ |
0.09 |
|
|
$ |
(0.00 |
) |
Diluted |
$ |
0.08 |
|
|
$ |
(0.00 |
) |
|
|
|
|
Weighted
average number of common shares outstanding (a): |
|
|
|
Basic |
|
27,181 |
|
|
|
26,522 |
|
Diluted |
|
29,311 |
|
|
|
26,522 |
|
|
|
|
|
|
(a) Basic net income (loss) per share is computed by dividing
net income (loss) by the weighted average number of fully vested
common shares outstanding during the period. Diluted net
income (loss) per share is computed by giving effect to all
potential dilutive common shares, including stock options, and
restricted stock units (“RSUs”). If the outstanding vested
options or RSUs were exercised or converted into common stock, the
result would be anti‑dilutive for the quarter ended September 30,
2014. Accordingly, basic and diluted net loss per share are
the same for the quarter ended September 30, 2014. Please
refer to the reconciliation of Non-GAAP Financial Measures for
diluted share count information for the quarter ended September 30,
2014.
|
|
|
Nine Months Ended |
Consolidated Statements of Operations |
(unaudited) |
(In
Thousands, Except Per Share Amounts) |
|
|
|
|
|
|
September
30,2015 |
|
September
30,2014 |
|
|
|
|
|
Revenues |
$ |
131,739 |
|
|
$ |
122,925 |
|
Cost of
revenues |
|
53,446 |
|
|
|
53,990 |
|
Gross
profit |
|
78,293 |
|
|
|
68,935 |
|
Gross
profit % |
|
59.4 |
% |
|
|
56.1 |
% |
|
|
|
|
|
Operating
expenses: |
|
|
|
General and
administrative |
|
35,100 |
|
|
|
32,898 |
|
Sales and
marketing |
|
20,741 |
|
|
|
21,911 |
|
Bad debt expense |
|
6,769 |
|
|
|
6,972 |
|
Research and
development |
|
5,161 |
|
|
|
5,740 |
|
Other charges |
|
4,462 |
|
|
|
5,025 |
|
Total
operating expenses |
|
72,233 |
|
|
|
72,546 |
|
|
|
|
|
|
Income
(loss) from operations |
|
6,060 |
|
|
|
(3,611 |
) |
Interest
and other loss, net |
|
(1,220 |
) |
|
|
(7,151 |
) |
|
|
|
|
|
Income
(loss) before income taxes |
|
4,840 |
|
|
|
(10,762 |
) |
(Provision)
benefit from income taxes |
|
(260 |
) |
|
|
2,623 |
|
Net Income
(loss) |
$ |
4,580 |
|
|
$ |
(8,139 |
) |
|
|
|
|
|
Net income
(loss) per share (a): |
|
|
|
Basic |
$ |
0.17 |
|
|
$ |
(0.31 |
) |
Diluted |
$ |
0.16 |
|
|
$ |
(0.31 |
) |
|
|
|
|
Weighted
average number of common shares outstanding (a): |
|
|
|
Basic |
|
27,063 |
|
|
|
26,354 |
|
Diluted |
|
29,019 |
|
|
|
26,354 |
|
|
|
|
|
|
(a) Basic net income (loss) per share is computed by dividing
net income (loss) by the weighted average number of fully vested
common shares outstanding during the period. Diluted net
income (loss) per share is computed by giving effect to all
potential dilutive common shares, including stock options, and
restricted stock units (“RSUs”). If the outstanding vested
options or RSUs were exercised or converted into common stock, the
result would be anti‑dilutive for the nine months ended September
30, 2014. Accordingly, basic and diluted net loss per share
are the same for the nine months ended September 30, 2014.
Please refer to the reconciliation of Non-GAAP Financial Measures
for diluted share count information for the nine months ended
September 30, 2014.
Summary Financial Data |
|
(In
Thousands) |
|
|
|
|
|
|
September
30,2015 |
|
December 31, 2014 |
|
|
(unaudited) |
|
(unaudited) |
|
|
|
|
|
|
Cash and
cash equivalents |
$ |
15,491 |
|
|
$ |
20,007 |
|
|
Patient
accounts receivable, net |
|
14,795 |
|
|
|
15,184 |
|
|
Other
accounts receivable, net |
|
9,802 |
|
|
|
9,362 |
|
|
Days sales
outstanding |
|
51 |
|
|
|
51 |
|
|
Working
capital |
|
19,325 |
|
|
|
14,150 |
|
|
Total
assets |
|
122,378 |
|
|
|
124,778 |
|
|
Total debt,
exclusive of debt discount |
|
24,375 |
|
|
|
25,000 |
|
|
Total
shareholders’ equity |
|
71,452 |
|
|
|
63,676 |
|
|
Reconciliation of Non-GAAP Financial Measures(In
Thousands, Except Per Share Amounts)
In accordance with Regulation G of the Securities and Exchange
Commission, the table set forth below reconciles certain financial
measures used in this press release that were not calculated in
accordance with generally accepted accounting principles, or GAAP,
with the most directly comparable financial measure calculated in
accordance with GAAP.
|
Three Months
Ended(unaudited) |
|
|
|
September
30,2015 |
|
September
30,2014 |
|
|
Income from operations
– GAAP |
$ |
3,006 |
|
|
$ |
486 |
|
|
|
Other charges (a) |
|
1,392 |
|
|
|
1,615 |
|
|
|
Adjusted income
from operations |
$ |
4,398 |
|
|
$ |
2,101 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) –
GAAP |
$ |
2,478 |
|
|
$ |
(29 |
) |
|
|
Other charges (a) |
|
1,392 |
|
|
|
1,615 |
|
|
|
Adjusted net
income |
$ |
3,870 |
|
|
$ |
1,586 |
|
|
|
|
|
|
|
|
|
Net income (loss) per
diluted share – GAAP |
$ |
0.08 |
|
|
$ |
(0.00 |
) |
|
|
Other charges per
diluted share (a) |
|
0.05 |
|
|
|
0.06 |
|
|
|
Adjusted net
income per diluted share |
$ |
0.13 |
|
|
$ |
0.06 |
|
|
|
Weighted average number
of common shares |
|
|
|
|
|
outstanding –
diluted |
|
29,311 |
|
|
|
28,191 |
|
|
|
|
Three Months Ended |
|
|
(unaudited) |
|
|
|
|
|
|
|
September
30,2015 |
|
September
30,2014 |
|
|
|
|
|
|
Cash provided by
operating activities |
$ |
4,164 |
|
|
$ |
703 |
|
|
Capital
expenditures |
|
(3,641 |
) |
|
|
(2,367 |
) |
|
Free cash flow |
$ |
523 |
|
|
$ |
(1,664 |
) |
|
|
Three Months Ended |
|
|
(unaudited) |
|
|
|
|
|
|
September
30,2015 |
|
September
30,2014 |
|
|
|
|
|
|
Income from operations
– GAAP |
$ |
3,006 |
|
|
$ |
486 |
|
|
Other charges (a) |
|
1,392 |
|
|
|
1,615 |
|
|
Depreciation and
amortization expense |
|
3,165 |
|
|
|
3,248 |
|
|
Stock compensation
expense |
|
1,139 |
|
|
|
694 |
|
|
Adjusted EBITDA |
$ |
8,702 |
|
|
$ |
6,043 |
|
|
(a) In the third quarter 2015, the Company incurred $1.4 million
of other charges primarily due to legal fees for patent
litigation. In the third quarter 2014, the Company incurred
$1.1 million of other charges primarily related to the integration
of the Company’s 2014 acquisitions and legal fees for patent
litigation and the Civil Investigative Demand. The Company
also incurred $0.5 million in the third quarter 2014 for
duplicative labor due to the relocation of certain business
functions.
Reconciliation of Non-GAAP Financial Measures(In
Thousands, Except Per Share Amounts)
In accordance with Regulation G of the Securities and Exchange
Commission, the table set forth below reconciles certain financial
measures used in this press release that were not calculated in
accordance with generally accepted accounting principles, or GAAP,
with the most directly comparable financial measure calculated in
accordance with GAAP.
|
Nine Months
Ended(unaudited) |
|
|
|
September
30,2015 |
|
September
30,2014 |
|
|
Income (loss) from
operations – GAAP |
$ |
6,060 |
|
|
$ |
(3,611 |
) |
|
|
Other charges (a) |
|
4,462 |
|
|
|
5,915 |
|
|
|
Adjusted income
from operations |
$ |
10,522 |
|
|
$ |
2,304 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) –
GAAP |
$ |
4,580 |
|
|
$ |
(8,139 |
) |
|
|
Other charges (b) |
|
4,462 |
|
|
|
9,445 |
|
|
|
Adjusted net
income |
$ |
9,042 |
|
|
$ |
1,306 |
|
|
|
|
|
|
|
|
|
Net income (loss) per
diluted share – GAAP |
$ |
0.16 |
|
|
$ |
(0.31 |
) |
|
|
Other charges per
diluted share (b) |
|
0.15 |
|
|
|
0.36 |
|
|
|
Adjusted net
income per diluted share |
$ |
0.31 |
|
|
$ |
0.05 |
|
|
|
Weighted average number
of common shares |
|
|
|
|
|
outstanding –
diluted |
|
29,019 |
|
|
|
28,205 |
|
|
|
|
Nine Months Ended |
|
|
(unaudited) |
|
|
|
|
|
|
|
September
30,2015 |
|
September
30,2014 |
|
|
|
|
|
|
Cash provided by
operating activities |
$ |
7,153 |
|
|
$ |
4,572 |
|
|
Capital
expenditures |
|
(10,310 |
) |
|
|
(9,977 |
) |
|
Free cash flow |
$ |
(3,157 |
) |
|
$ |
(5,405 |
) |
|
|
Nine Months Ended |
|
|
(unaudited) |
|
|
|
|
|
|
September
30,2015 |
|
September
30,2014 |
|
|
|
|
|
|
Income (loss) from
operations – GAAP |
$ |
6,060 |
|
|
$ |
(3,611 |
) |
|
Other charges (a) |
|
4,462 |
|
|
|
5,915 |
|
|
Depreciation and
amortization expense |
|
9,124 |
|
|
|
9,243 |
|
|
Stock compensation
expense |
|
3,321 |
|
|
|
2,662 |
|
|
Adjusted EBITDA |
$ |
22,967 |
|
|
$ |
14,209 |
|
|
(a) In the first three quarters of 2015, the Company incurred
$4.5 million of other charges primarily due to legal fees for
patent litigation as well as costs related to the integration of
the 2014 acquisitions. In the first three quarters of 2014,
the Company incurred $5.0 million of other charges primarily due to
legal fees for patent litigation and the Civil Investigative
Demand, as well as acquisition and integration related charges for
the 2014 acquisitions. The Company also incurred $0.9 million
for duplicative labor due to the relocation of certain business
functions.
(b) In addition to the $5.9 million of other charges incurred in
the first three quarters of 2014, the Company recorded a
non-operating charge of $6.4 million for the settlement with the
Department of Justice that was finalized and paid in the first
quarter 2015. This was partially offset by a $2.9 million tax
benefit related to the acquisition of Mednet Healthcare
Technologies, Inc. in January 2014.
Contact:
BioTelemetry, Inc.
Heather C. Getz
Investor Relations
800-908-7103
investorrelations@biotelinc.com
HeartBeam (NASDAQ:BEAT)
Historical Stock Chart
From Jun 2024 to Jul 2024
HeartBeam (NASDAQ:BEAT)
Historical Stock Chart
From Jul 2023 to Jul 2024