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 second quarter ended June 30, 2016.
Company Highlights
- Recognized highest quarterly revenue in Company’s history of
$52.7 million, an 18% increase over the prior year
- Recorded $4.3 million GAAP net income for the second
quarter
- Realized highest quarterly adjusted EBITDA in Company’s history
of $11.9 million, a 51% increase over the prior year
- Serviced highest quarterly patient volume in Company’s
history
- Grew CardioKey volume by 75% versus the first quarter of
2016
- Completed the acquisition of VirtualScopics, Inc. on May
11
- Received FDA 510(k) approval of the Company’s next generation
device, the MCOTTM Patch
President and CEO Commentary
Joseph H. Capper, President and Chief Executive Officer of
BioTelemetry, Inc., commented: “We are excited to announce another
record-setting quarter, during which we exceeded our expectations,
registering new highs in volume, revenue and adjusted EBITDA.
Revenue grew by 18% overall and 13% organically, driven by
increased patient volume across all product types, the continued
roll-out of CardioKey and the higher 2016 Medicare rate for our MCT
service.
“During the quarter, we took an extremely important strategic
step by acquiring VirtualScopics, Inc., a leading provider of
clinical trial imaging solutions. This acquisition supports
our long-established intent to bolster the competitiveness of our
Research platform by expanding our clinical services
capabilities.
“The Company also just received FDA approval of our next
generation device, the MCOTTM Patch. This new device
incorporates our best in class arrhythmia detection into a more
convenient, easy to use, form factor. The new device will be
commercially available later this
year.
“BioTelemetry is extremely well positioned in the marketplace
and we expect our momentum to continue. We are confident that our
technological leadership, scalable operations, strong patent
portfolio and proven strategy will allow us to further capitalize
on the opportunities that lie ahead. As a result, we are
increasing our full year 2016 revenue guidance to approximately
$210 million and our adjusted EBITDA guidance to $44 to $46
million.”
Second Quarter Financial Results
Revenue for the second quarter 2016 was $52.7 million compared
to $44.8 million for the second quarter 2015, an increase of $7.9
million, or 17.6%. Healthcare revenue increased $5.9 million
due to increased patient volumes as well as higher MCT Medicare
pricing. For the second quarter 2016, Healthcare revenue was
comprised of 41% Medicare revenue. Research revenue increased
$2.5 million, primarily due to the acquisition of VirtualScopics
during the quarter. Technology revenues decreased $0.5
million due to lower sales volume resulting from customers delaying
purchases as they await the release of upgraded devices.
Gross profit for the second quarter 2016 increased to $32.9
million, or 62.5% of revenue, compared to $26.7 million, or 59.7%
of revenue, for the second quarter 2015. The increase in
gross margin percentage was due to volume efficiencies, the higher
MCT Medicare pricing as well as reduced costs related to shipping
and device monitoring. These increases were partially offset
by the impact of our acquisitions, which carry lower profit margins
than our existing business.
On a GAAP basis, operating expense for the second quarter 2016
was $27.8 million, compared to $24.1 million for the second quarter
2015. On an adjusted basis1, operating expense for the second
quarter 2016 was $26.1 million compared to $22.9 million for the
second quarter 2015. The adjusted operating expense excludes
$1.7 million of other charges for the second quarter 2016 primarily
related to patent litigation and the Company’s recent acquisitions
and $1.2 million for the second quarter 2015 primarily related to
patent litigation. The increase in adjusted expense was
driven by the addition of $1.6 million related to our acquired
companies, a $1.3 million increase in employee related expense and
a $0.5 million increase in bad debt expense partially offset by a
reduction in other expenses.
Interest and other loss, net was $0.6 million for the three
months ended June 30, 2016 compared to $0.4 million for the three
months ended June 30, 2015. The increase was due to higher
interest expense stemming from recent borrowings under the
revolving credit facility, the Company’s share of the equity method
investee’s loss, as well as the impact of foreign exchange.
On a GAAP basis, net income for the second quarter 2016 was $4.3
million, or $0.14 per diluted share, compared to a net income of
$2.2 million, or $0.08 per diluted share, for the second quarter
2015. Excluding the $1.7 million of other charges1, adjusted
net income for the second quarter 2016 was $6.0 million, or $0.20
per diluted share. This compares to adjusted net income of
$3.4 million, or $0.12 per diluted share, for the second quarter
2015, which excludes the impact of $1.2 million of other
charges.
Liquidity
As of June 30, 2016, total cash was $25.4 million, an increase
of $2.6 million compared to March 31, 2016. The significant
cash uses during the quarter ended June 30, 2016 include $18.0
million for the two acquisitions as well as $2.2 million for
capital expenditures, primarily medical devices. These uses
were more than offset by borrowings of $14.5 million under the
revolving credit facility and cash generated from operations of
$9.3 million. Consolidated days sales outstanding increased
to 49 days as of June 30, 2016, up from 45 days as of March 31,
2016 due to the impact of the acquisitions.
As of June 30, 2016, the Company had total indebtedness of $37.8
million.
1 The Company believes that its adjusted financial results,
which exclude Other charges, offer a meaningful representation of
the Company’s performance as they exclude expenses that are not
necessary to support the Company’s ongoing business.
Conference
Call
BioTelemetry, Inc. will host an earnings conference call on
Tuesday, August 2, 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) |
|
|
|
|
|
|
June
30,2016 |
|
June
30,2015 |
|
|
|
|
|
Revenues |
$ |
52,680 |
|
|
$ |
44,812 |
|
Cost of
revenues |
|
19,759 |
|
|
|
18,079 |
|
Gross
profit |
|
32,921 |
|
|
|
26,733 |
|
Gross
profit % |
|
62.5 |
% |
|
|
59.7 |
% |
|
|
|
|
|
Operating
expenses: |
|
|
|
General and
administrative |
|
14,388 |
|
|
|
12,206 |
|
Sales and
marketing |
|
7,124 |
|
|
|
6,926 |
|
Bad debt expense |
|
2,664 |
|
|
|
2,175 |
|
Research and
development |
|
1,965 |
|
|
|
1,631 |
|
Other charges |
|
1,659 |
|
|
|
1,210 |
|
Total
operating expenses |
|
27,800 |
|
|
|
24,148 |
|
|
|
|
|
|
Income from
operations |
|
5,121 |
|
|
|
2,585 |
|
Interest
and other loss, net |
|
(633 |
) |
|
|
(439 |
) |
|
|
|
|
|
Income
before income taxes |
|
4,488 |
|
|
|
2,146 |
|
(Provision
for) benefit from income taxes |
|
(153 |
) |
|
|
25 |
|
Net
Income |
$ |
4,335 |
|
|
$ |
2,171 |
|
|
|
|
|
|
Net
income per share: |
|
|
|
Basic |
$ |
0.16 |
|
|
$ |
0.08 |
|
Diluted |
$ |
0.14 |
|
|
$ |
0.08 |
|
|
|
|
|
Weighted
average number of common shares outstanding: |
|
|
|
Basic |
|
27,961 |
|
|
|
27,072 |
|
Diluted |
|
30,057 |
|
|
|
28,918 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended |
Consolidated Statements of Operations |
(unaudited) |
(In
Thousands, Except Per Share Amounts) |
|
|
|
|
|
|
June
30,2016 |
|
June
30,2015 |
|
|
|
|
|
Revenues |
$ |
101,320 |
|
|
$ |
88,247 |
|
Cost of
revenues |
|
37,772 |
|
|
|
36,291 |
|
Gross
profit |
|
63,548 |
|
|
|
51,956 |
|
Gross
profit % |
|
62.7 |
% |
|
|
58.9 |
% |
|
|
|
|
|
Operating
expenses: |
|
|
|
General and
administrative |
|
26,724 |
|
|
|
23,603 |
|
Sales and
marketing |
|
14,669 |
|
|
|
14,109 |
|
Bad debt expense |
|
5,302 |
|
|
|
4,524 |
|
Research and
development |
|
3,751 |
|
|
|
3,596 |
|
Other charges |
|
3,447 |
|
|
|
3,070 |
|
Total
operating expenses |
|
53,893 |
|
|
|
48,902 |
|
|
|
|
|
|
Income from
operations |
|
9,655 |
|
|
|
3,054 |
|
Interest
and other loss, net |
|
(1,056 |
) |
|
|
(829 |
) |
|
|
|
|
|
Income
before income taxes |
|
8,599 |
|
|
|
2,225 |
|
Provision
for income tax |
|
(294 |
) |
|
|
(123 |
) |
Net
Income |
$ |
8,305 |
|
|
$ |
2,102 |
|
|
|
|
|
|
Net
income per share: |
|
|
|
Basic |
$ |
0.30 |
|
|
$ |
0.08 |
|
Diluted |
$ |
0.28 |
|
|
$ |
0.07 |
|
|
|
|
|
Weighted
average number of common shares outstanding: |
|
|
|
Basic |
|
27,666 |
|
|
|
27,003 |
|
Diluted |
|
29,619 |
|
|
|
28,873 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Summary Financial Data |
|
(In
Thousands, except days sales outstanding) |
|
|
|
|
|
June 30,2016 |
|
December 31,2015 |
|
|
(unaudited) |
|
(unaudited) |
|
|
|
|
|
|
Cash and
cash equivalents |
$ |
25,443 |
|
|
$ |
18,986 |
|
|
Healthcare
accounts receivable, net |
|
15,325 |
|
|
|
15,179 |
|
|
Other
accounts receivable, net |
|
13,094 |
|
|
|
8,997 |
|
|
Days sales
outstanding |
|
49 |
|
|
|
47 |
|
|
Working
capital |
|
30,441 |
|
|
|
23,157 |
|
|
Total
assets |
|
156,190 |
|
|
|
124,143 |
|
|
Total
indebtedness |
|
37,757 |
|
|
|
23,582 |
|
|
Total
shareholders’ equity |
|
88,498 |
|
|
|
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. The Company believes that its adjusted
financial results, which exclude Other charges, offer a meaningful
representation of the Company’s performance as they exclude
expenses that are not necessary to support the Company’s ongoing
business.
|
|
Three Months
Ended(unaudited) |
|
|
June
30,2016 |
|
June
30,2015 |
Income from operations
– GAAP |
|
$ |
5,121 |
|
|
$ |
2,585 |
|
Other charges (a) |
|
|
1,659 |
|
|
|
1,210 |
|
Adjusted income
from operations |
|
$ |
6,780 |
|
|
$ |
3,795 |
|
|
|
|
|
|
|
|
|
|
Net income –
GAAP |
|
$ |
4,335 |
|
|
$ |
2,171 |
|
Other charges (a) |
|
|
1,659 |
|
|
|
1,210 |
|
Adjusted net
income |
|
$ |
5,994 |
|
|
$ |
3,381 |
|
|
|
|
|
|
Net income per diluted
share – GAAP |
|
$ |
0.14 |
|
|
$ |
0.08 |
|
Other charges per
diluted share (a) |
|
|
0.06 |
|
|
|
0.04 |
|
Adjusted net
income per diluted share |
|
$ |
0.20 |
|
|
$ |
0.12 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
(unaudited) |
|
|
|
|
|
|
|
June
30,2016 |
|
June
30,2015 |
|
|
|
|
|
Cash provided by
operating activities |
|
$ |
9,344 |
|
|
$ |
7,595 |
|
Capital
expenditures |
|
|
(2,179 |
) |
|
|
(4,597 |
) |
Free cash flow |
|
$ |
7,165 |
|
|
$ |
2,998 |
|
|
Three Months
Ended |
|
(unaudited) |
|
|
|
|
|
June
30,2016 |
|
June
30,2015 |
|
|
|
|
|
|
|
|
|
|
|
|
Net income – GAAP |
$ |
4,335 |
|
|
$ |
2,171 |
|
Interest, other loss
(net) and income tax |
|
786 |
|
|
|
414 |
|
Other charges (a) |
|
1,659 |
|
|
|
1,210 |
|
Depreciation and
amortization expense |
|
3,664 |
|
|
|
3,007 |
|
Stock compensation
expense |
|
1,441 |
|
|
|
1,062 |
|
Adjusted EBITDA |
$ |
11,885 |
|
|
$ |
7,864 |
|
|
(a) In the second quarter 2016, the Company incurred $1.7
million of other charges primarily due to patent litigation and the
acquisitions completed in the second quarter. In the second
quarter 2015, the Company incurred $1.2 million of other charges
primarily related to patent litigation.
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. The Company believes that its adjusted
financial results, which exclude Other charges, offer a meaningful
representation of the Company’s performance as they exclude
expenses that are not necessary to support the Company’s ongoing
business.
|
Six Months
Ended(unaudited) |
|
June
30,2016 |
|
June
30,2015 |
Income from operations
– GAAP |
$ |
9,655 |
|
|
$ |
3,054 |
|
Other charges (a) |
|
3,447 |
|
|
|
3,070 |
|
Adjusted income
from operations |
$ |
13,102 |
|
|
$ |
6,124 |
|
|
|
|
|
|
|
|
|
Net income –
GAAP |
$ |
8,305 |
|
|
$ |
2,102 |
|
Other charges (a) |
|
3,447 |
|
|
|
3,070 |
|
Adjusted net
income |
$ |
11,752 |
|
|
$ |
5,172 |
|
|
|
|
|
Net income per share –
GAAP |
$ |
0.28 |
|
|
$ |
0.07 |
|
Other charges per
diluted share (a) |
|
0.12 |
|
|
|
0.11 |
|
Adjusted net
income per diluted share |
$ |
0.40 |
|
|
$ |
0.18 |
|
|
|
|
|
|
|
|
|
|
Six Months Ended |
|
(unaudited) |
|
|
|
|
|
June
30,2016 |
|
June
30,2015 |
|
|
|
|
Cash provided by
operating activities |
$ |
17,526 |
|
|
$ |
2,989 |
|
Capital
expenditures |
|
(5,692 |
) |
|
|
(6,669 |
) |
Free cash flow |
$ |
11,834 |
|
|
$ |
(3,680 |
) |
|
Six Months
Ended |
|
(unaudited) |
|
|
|
|
|
June
30,2016 |
|
June
30,2015 |
|
|
|
|
Net income – GAAP |
$ |
8,305 |
|
|
$ |
2,102 |
|
Interest, other loss
(net) and income tax |
|
1,350 |
|
|
|
952 |
|
Other charges (a) |
|
3,447 |
|
|
|
3,070 |
|
Depreciation and
amortization expense |
|
6,930 |
|
|
|
5,959 |
|
Stock compensation
expense |
|
2,619 |
|
|
|
2,182 |
|
Adjusted EBITDA |
$ |
22,651 |
|
|
$ |
14,265 |
|
|
(a) In the first half of 2016, the Company incurred $3.4 million
other charges primarily due to patent litigation and the
acquisitions completed in the second quarter. In the first
half of 2015, the Company incurred $3.1 million of other charges
primarily due to patent litigation as well as costs related to the
integration of the 2014 acquisitions.
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