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 first quarter ended March 31, 2016.
Company Highlights
- Recognized highest quarterly revenue in Company’s history of
$48.6 million, a 12% increase over prior year
- Achieved fifteenth consecutive quarter of year over year
revenue growth
- Realized highest quarterly EBITDA in Company’s history of $10.8
million, a 22% return
- Serviced highest quarterly patient volume in Company’s history,
a 10% increase over prior year
- Recorded $4.0 million GAAP net income for the first
quarter
- Grew CardioKey volume by 33% versus the fourth quarter of
2015
- Completed the acquisition of the ePatch division of DELTA
Danish Electronics, Light and Acoustics on April 1
- Initiated tender offer for VirtualScopics, Inc.
- Increased our 2016 EBITDA guidance to be in the range of $42
million to $44 million
President and CEO Commentary
Joseph Capper, President and Chief Executive Officer of
BioTelemetry, Inc., commented: “The record performance we delivered
last year continued into the first quarter of 2016. We are
pleased to report our strongest quarterly performance in the
Company’s history, posting record revenue, EBITDA and patient
volume. These results are validation of the effectiveness of
our strategy and our ability to deliver on key management
objectives.
“To build on this momentum, we continue to aggressively pursue
both organic and acquisition growth opportunities. We
recently completed the purchase of the ePatch division of DELTA
Danish Electronics, Light & Acoustics. The transaction
provides future cost savings relating to our next generation device
and adds another monitoring device to our product suite. We
also initiated a tender offer for VirtualScopics, Inc. which will
expand our clinical research offerings.
“We are very excited about the Company’s outlook in 2016 as
evidenced by the increase to our EBITDA guidance. We expect
our strong growth trends to continue this year supported by
numerous internal and external factors. Longer term, we are
highly optimistic about our future prospects as we see a growing
trend in healthcare toward the use of remote patient
monitoring.”
First Quarter Financial Results
Revenue for the first quarter 2016 was $48.6 million compared to
$43.4 million for the first quarter 2015, an increase of $5.2
million, or 12.0%. This increase was due to $6.1 million
higher Healthcare revenue, driven by increased patient volume and
the MCT Medicare rate increase that became effective January
1. Research revenue was essentially flat. Technology
revenue declined $0.9 million due to lower sales resulting from
customers delaying purchases as they await the release of upgraded
devices. For the first quarter 2016, Healthcare revenue was
comprised of 41.7% Medicare.
Gross profit for the first quarter 2016 increased to $30.6
million, or 63.0% of revenue, compared to $25.2 million, or 58.1%
of revenue, for the first quarter 2015. The gross profit
percentage was driven by a 390 basis point improvement related to
monitoring center efficiencies due to the higher volume, lower
device communication and device transportation costs in addition to
the 100 basis point impact of the higher MCT Medicare pricing.
On a GAAP basis, operating expense for the first quarter 2016
was $26.1 million, compared to $24.8 million for the first quarter
2015. On an adjusted basis, operating expense for the first
quarter 2016 was $24.3 million compared to $22.9 million for the
first quarter 2015. The adjusted operating expense excludes
$1.8 million for the first quarter 2016 primarily related to patent
litigation and the Company’s recently announced acquisitions and
$1.9 million for the first quarter 2015 primarily related to patent
litigation, as well as costs associated with the integration of the
2014 Mednet and BMS acquisitions. The increase was driven by
higher headcount related expense of $1.1 million in general and
administrative and sales and marketing, $0.3 million higher bad
debt and $0.2 million higher tradeshow and sales meeting
expense. These increases were partially offset by $0.2
million lower consulting expense in research and development
related to our next generation device.
On a GAAP basis, interest and other loss, net was $0.4 million
for the first quarter 2016, consistent with the first quarter
2015.
On a GAAP basis, net income for the first quarter 2016 was $4.0
million, or $0.14 per diluted share, compared to a net loss of $0.1
million for the first quarter 2015. Excluding the $1.8
million of other charges, adjusted net income for the first quarter
2016 was $5.8 million, or $0.20 per diluted share. This
compares to adjusted net income of $1.8 million, or $0.06 per
diluted share, for the first quarter 2015, which excludes the
impact of $1.9 million of other charges.
Liquidity
As of March 31, 2016, total cash was $22.8 million, an increase
of $3.8 million compared to December 31, 2015. The
significant cash uses during the quarter ended March 31, 2016
include $5.7 million for incremental employee related and payroll
tax cash outflows in the first quarter as well as $3.5 million for
capital expenditures, primarily medical devices. These uses
were more than offset by cash generated from collections.
Consolidated days sales outstanding decreased to 45 days as of
March 31, 2016, down from 47 days as of December 31,
2015.
As of March 31, 2016, the Company had total indebtedness of
$23.2 million. 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
Tuesday, April 26, 2016 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) |
|
|
|
|
|
|
March
31,2016 |
|
March
31,2015 |
|
|
|
|
|
Revenues |
$ |
48,640 |
|
|
$ |
43,435 |
|
Cost of
revenues |
|
18,013 |
|
|
|
18,212 |
|
Gross
profit |
|
30,627 |
|
|
|
25,223 |
|
Gross
profit % |
|
63.0 |
% |
|
|
58.1 |
% |
|
|
|
|
|
Operating
expenses: |
|
|
|
General and
administrative |
|
12,336 |
|
|
|
11,397 |
|
Sales and
marketing |
|
7,545 |
|
|
|
7,183 |
|
Bad debt expense |
|
2,638 |
|
|
|
2,349 |
|
Research and
development |
|
1,786 |
|
|
|
1,965 |
|
Other charges |
|
1,788 |
|
|
|
1,860 |
|
Total
operating expenses |
|
26,093 |
|
|
|
24,754 |
|
|
|
|
|
|
Income from
operations |
|
4,534 |
|
|
|
469 |
|
Interest
and other loss, net |
|
(423 |
) |
|
|
(390 |
) |
|
|
|
|
|
Income
before income taxes |
|
4,111 |
|
|
|
79 |
|
Provision
for income taxes |
|
(141 |
) |
|
|
(148 |
) |
Net Income
(loss) |
$ |
3,970 |
|
|
$ |
(69 |
) |
|
|
|
|
|
Net income
(loss) per share (a): |
|
|
|
Basic |
$ |
0.15 |
|
|
$ |
(0.00 |
) |
Diluted |
$ |
0.14 |
|
|
$ |
(0.00 |
) |
|
|
|
|
Weighted
average number of common shares outstanding (a): |
|
|
|
Basic |
|
27,371 |
|
|
|
26,935 |
|
Diluted |
|
29,182 |
|
|
|
26,935 |
|
|
|
|
|
(a) Basic net income (loss) per share is computed by dividing
net income (loss) by the weighted average number of 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 options or RSUs were exercised
or converted into common stock, the result would be anti‑dilutive
for the quarter ended March 31, 2015. Accordingly, basic and
diluted net loss per share is the same for the quarter ended March
31, 2015. Please refer to the reconciliation of Non-GAAP
Financial Measures for diluted share count information for the
quarter ended March 31, 2015.
|
|
Summary Financial Data |
|
(In
Thousands) |
|
|
|
|
|
|
March 31,2016 |
|
December 31, 2015 |
|
|
(unaudited) |
|
(unaudited) |
|
|
|
|
|
|
Cash and
cash equivalents |
$ |
22,841 |
|
|
$ |
18,986 |
|
|
Healthcare
accounts receivable, net |
|
16,420 |
|
|
|
15,179 |
|
|
Other
accounts receivable, net |
|
8,063 |
|
|
|
8,997 |
|
|
Days sales
outstanding |
|
45 |
|
|
|
47 |
|
|
Working
capital |
|
27,474 |
|
|
|
23,157 |
|
|
Total
assets |
|
128,931 |
|
|
|
124,143 |
|
|
Total
indebtedness |
|
23,240 |
|
|
|
23,582 |
|
|
Total
shareholders’ equity |
|
80,659 |
|
|
|
75,926 |
|
|
|
|
|
|
|
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) |
|
|
|
March
31,2016 |
|
March
31,2015 |
|
|
Income from operations
– GAAP |
$ |
4,534 |
|
|
$ |
469 |
|
|
|
Other charges (a) |
|
1,788 |
|
|
|
1,860 |
|
|
|
Adjusted income
from operations |
$ |
6,322 |
|
|
$ |
2,329 |
|
|
|
Net income (loss) –
GAAP |
$ |
3,970 |
|
|
$ |
(69 |
) |
|
|
Other charges (a) |
|
1,788 |
|
|
|
1,860 |
|
|
|
Adjusted net
income |
$ |
5,758 |
|
|
$ |
1,791 |
|
|
|
|
|
|
|
|
|
Net income (loss) per
diluted share – GAAP |
$ |
0.14 |
|
|
$ |
(0.00 |
) |
|
|
Other charges per
diluted share (a) |
|
0.06 |
|
|
|
0.06 |
|
|
|
Adjusted net
income per diluted share |
$ |
0.20 |
|
|
$ |
0.06 |
|
|
|
Weighted average number
of common shares |
|
|
|
|
|
outstanding –
diluted |
|
29,182 |
|
|
|
28,828 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
(unaudited) |
|
|
|
|
|
|
|
March
31,2016 |
|
March
31,2015 |
|
|
|
|
|
|
Cash provided by (used
in) operating activities |
$ |
8,182 |
|
|
$ |
(4,606 |
) |
|
Capital
expenditures |
|
(3,513 |
) |
|
|
(2,072 |
) |
|
Free cash flow |
$ |
4,669 |
|
|
$ |
(6,678 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
(unaudited) |
|
|
|
|
|
|
March
31,2016 |
|
March
31,2015 |
|
|
|
|
|
|
Income from operations
– GAAP |
$ |
4,534 |
|
|
$ |
469 |
|
|
Other charges (a) |
|
1,788 |
|
|
|
1,860 |
|
|
Depreciation and
amortization expense |
|
3,266 |
|
|
|
2,952 |
|
|
Stock compensation
expense |
|
1,178 |
|
|
|
1,120 |
|
|
Adjusted EBITDA |
$ |
10,766 |
|
|
$ |
6,401 |
|
|
|
|
|
|
|
|
|
|
|
(a) In the first quarter 2016, the Company incurred $1.8 million
of other charges primarily due to patent litigation and the
recently announced acquisitions that are expected to close in the
second quarter. In the first quarter 2015, the Company
incurred $1.9 million of other charges primarily related to patent
litigation, as well as costs associated with the integration of the
2014 Mednet and BMS acquisitions.
Contact: BioTelemetry, Inc.
Heather C. Getz
Investor Relations
800-908-7103
investorrelations@biotelinc.com
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