Company Delivers Record
ResultsRaises Full-Year Guidance
BioTelemetry, Inc. (NASDAQ:BEAT), the leading remote and 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,
2018.
Quarter Highlights
- Recognized highest quarterly revenue in the Company’s history
of $101.4 million
- Exceeded 14% year over year organic revenue growth
- Achieved 24th consecutive quarter of year over year revenue
growth
- Realized GAAP net income attributable to BioTelemetry, Inc. of
$10.4 million or 10.3% of revenue
- Realized record quarterly adjusted EBITDA of $29.1 million, or
28.7% of revenue
- Achieved $30.0 million of annualized synergies from the
integration of LifeWatch with approximately $7.5 million of
synergies in the quarter
President and CEO Commentary
Joseph H. Capper, President and Chief Executive
Officer of BioTelemetry, Inc., commented: “The second quarter was
exceptional as we generated the highest revenue,
GAAP pre-tax income and adjusted EBITDA in the Company’s
history. These results exceeded our expectations,
illustrating a strong competitive position and further validating
our strategy. Driving the more than 14% organic revenue
growth was an 11% increase in MCT patient volume, a favorable payor
mix, as well as our third consecutive quarter of over 20% growth in
Research revenue. Additionally, our adjusted EBITDA margin
reached 28.7%, bolstered by strong top line growth and the $7.5
million of synergies realized in the quarter. In less than
twelve months post-acquisition, we have achieved our objective of
$30 million of annualized synergies, making the integration of
LifeWatch a tremendous success.
“We offer customers the most accurate and
advanced technology, supported by the most productive team of sales
professionals in our industry, which we expect will drive double
digit MCT and extended Holter growth for the foreseeable
future. This increased volume, coupled with the Research
momentum, gives us confidence that 2018 will be a record year for
us. As a result, we are revising our full-year outlook for
revenue to be $392 million to $395 million with an adjusted EBITDA
margin of approximately 26%.”
Second Quarter Financial Results
Revenue for the second quarter 2018 was $101.4
million compared to $58.1 million for the second quarter 2017, an
increase of $43.2 million, or 74.4%.
Gross profit for the second quarter 2018 was
$65.8 million, or 64.9% of revenue, compared to $36.0 million, or
61.9% of revenue, for the second quarter 2017.
On a GAAP basis, net income attributable to
BioTelemetry, Inc. for the second quarter 2018 was $10.4 million,
or $0.29 per diluted share, compared to net income of $1.7
million, or $0.05 per diluted share, for the second quarter
2017.
On an adjusted basis1, net income attributable
to BioTelemetry, Inc. for the second quarter 2018 was $16.3
million, or $0.46 per diluted share. This compares to
adjusted net income of $7.4 million, or $0.23 per diluted share,
for the second quarter 2017. This increase was attributable
to the addition of LifeWatch, the organic revenue growth and
synergies gained from the integration of LifeWatch. The
details regarding adjusted net income are included in the
reconciliation tables included in this release.
1 The Company believes that providing non-GAAP
financial measures offers a meaningful representation of our
performance, as we exclude expenses that are not necessary to
support our ongoing business. Please refer to our
“Reconciliation of GAAP to Non-GAAP Financial Measures” in this
release for additional information.
Conference Call
BioTelemetry, Inc. will host an earnings
conference call on Wednesday, July 25, 2018, at 5:00 PM
Eastern Time. The call will be webcast on the investor
information page of our website,
www.gobio.com/investors/events. The call will be archived on
our website for two weeks.
About BioTelemetry
BioTelemetry, Inc. is the leading remote and
wireless medical technology company focused on delivery of health
information to improve quality of life and reduce cost of
care. We provide cardiac monitoring, mobile blood glucose
monitoring, centralized medical imaging, and original equipment
manufacturing that serves both the Healthcare and Clinical Research
industries. 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 regarding,
among other things, our growth prospects, the prospects for our
products and our confidence in our future. These statements
may be identified by words such as “expect,” “anticipate,”
“estimate,” “intend,” “plan,” “believe,” “promises” and other words
and terms of similar meaning. Examples of forward-looking
statements include statements we make regarding our ability to
increase demand for our products and services, to leverage our
Mobile Cardiac Outpatient Telemetry platform to expand into new
markets, to grow our market share, our expectations regarding
revenue trends in our segments and the achievement of cost
efficiencies through process improvements. 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 identify acquisition candidates,
acquire them on attractive terms and integrate their operations
into our business; our ability to educate physicians and continue
to obtain prescriptions for our products and services; changes to
insurance coverage and reimbursement levels by Medicare and
commercial payors for our products and services; our ability to
attract and retain talented executive management and sales
personnel; the commercialization of new competitive products; our
ability to obtain and maintain required regulatory approvals for
our products, services and manufacturing facilities; changes in
governmental regulations and legislation; our ability to obtain and
maintain adequate protection of our intellectual property;
acceptance of our new products and services; adverse regulatory
action; interruptions or delays in the telecommunications systems
that we use; our ability to successfully resolve outstanding legal
proceedings; and the other factors that are described in
“Part I; Item 1A. Risk Factors” of our
Annual Report on Form 10-K for the year ended December 31,
2017.
We undertake no obligation to publicly update
any forward-looking statement, whether as a result of new
information, future events, or otherwise, except as may be required
by law.
Contact: |
|
BioTelemetry, Inc.Heather C. GetzInvestor RelationsExecutive Vice
President, Chief Financial
Officer800-908-7103investorrelations@biotelinc.com |
|
|
|
BioTelemetry,
Inc.Condensed Consolidated Statements of
Operations(Unaudited)
|
Three Months Ended |
|
Six Months Ended |
(In thousands,
except per share data) |
June 30, 2018 |
|
June 30, 2017 |
|
June 30, 2018 |
|
June 30, 2017 |
Revenue |
$ |
101,360 |
|
|
$ |
58,129 |
|
|
$ |
195,856 |
|
|
$ |
114,010 |
|
Cost of revenue |
35,605 |
|
|
22,162 |
|
|
72,053 |
|
|
45,134 |
|
Gross profit |
65,755 |
|
|
35,967 |
|
|
123,803 |
|
|
68,876 |
|
Gross profit % |
64.9 |
% |
|
61.9 |
% |
|
63.2 |
% |
|
60.4 |
% |
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
General
and administrative |
28,741 |
|
|
14,366 |
|
|
55,460 |
|
|
30,283 |
|
Sales and
marketing |
11,075 |
|
|
7,631 |
|
|
22,415 |
|
|
15,332 |
|
Bad debt
expense |
6,875 |
|
|
2,416 |
|
|
11,754 |
|
|
5,207 |
|
Research
and development |
2,733 |
|
|
2,515 |
|
|
6,022 |
|
|
4,948 |
|
Other
charges |
5,208 |
|
|
4,651 |
|
|
10,293 |
|
|
6,390 |
|
Total operating
expenses |
54,632 |
|
|
31,579 |
|
|
105,944 |
|
|
62,160 |
|
|
|
|
|
|
|
|
|
Income from
operations |
11,123 |
|
|
4,388 |
|
|
17,859 |
|
|
6,716 |
|
|
|
|
|
|
|
|
|
Other
expense: |
|
|
|
|
|
|
|
Interest
expense |
(2,684 |
) |
|
(392 |
) |
|
(4,574 |
) |
|
(781 |
) |
Loss on
equity method investment |
(45 |
) |
|
(101 |
) |
|
(184 |
) |
|
(196 |
) |
Other
non-operating income (expense), net |
550 |
|
|
(899 |
) |
|
737 |
|
|
(3,413 |
) |
Total other
expense: |
(2,179 |
) |
|
(1,392 |
) |
|
(4,021 |
) |
|
(4,390 |
) |
|
|
|
|
|
|
|
|
Income before
income taxes |
8,944 |
|
|
2,996 |
|
|
13,838 |
|
|
2,326 |
|
Benefit
from/(provision for) income taxes |
1,500 |
|
|
(1,270 |
) |
|
1,642 |
|
|
(404 |
) |
Net
income |
10,444 |
|
|
1,726 |
|
|
15,480 |
|
|
1,922 |
|
|
|
|
|
|
|
|
|
Net loss attributable
to noncontrolling interests |
— |
|
|
— |
|
|
(946 |
) |
|
— |
|
|
|
|
|
|
|
|
|
Net income
attributable to BioTelemetry, Inc. |
$ |
10,444 |
|
|
$ |
1,726 |
|
|
$ |
16,426 |
|
|
$ |
1,922 |
|
|
|
|
|
|
|
|
|
Net income per
common share: |
|
|
|
|
|
|
|
Basic |
$ |
0.32 |
|
|
$ |
0.06 |
|
|
$ |
0.51 |
|
|
$ |
0.07 |
|
Diluted |
$ |
0.29 |
|
|
$ |
0.05 |
|
|
$ |
0.46 |
|
|
$ |
0.06 |
|
|
|
|
|
|
|
|
|
Weighted
average number of common shares outstanding: |
|
|
|
|
|
|
|
Basic |
32,435 |
|
|
28,687 |
|
|
32,227 |
|
|
28,558 |
|
Diluted |
35,578 |
|
|
31,673 |
|
|
35,414 |
|
|
31,494 |
|
|
|
|
|
|
|
|
|
|
|
|
|
BioTelemetry,
Inc.Summary Financial
Data(Unaudited)
(In thousands) |
|
June 30, 2018 |
|
December 31, 2017 |
Cash and cash
equivalents |
|
$ |
39,434 |
|
|
$ |
36,022 |
|
Healthcare accounts
receivables, net |
|
35,332 |
|
|
25,190 |
|
Other receivables,
net |
|
14,601 |
|
|
13,296 |
|
Working capital |
|
|
59,249 |
|
|
|
39,153 |
|
Total assets |
|
548,375 |
|
|
524,562 |
|
Total indebtedness |
|
202,489 |
|
|
204,865 |
|
Total equity |
|
273,201 |
|
|
249,703 |
|
|
|
|
|
|
|
|
Summary Cash Flow
Data(Unaudited)
|
|
Three Months Ended |
|
Six Months Ended |
(In thousands) |
|
June 30, 2018 |
|
June 30, 2017 |
|
June 30, 2018 |
|
June 30, 2017 |
Cash provided by
operating activities |
|
7,062 |
|
|
6,080 |
|
|
16,136 |
|
|
10,733 |
|
Capital
expenditures |
|
(5,999 |
) |
|
(3,230 |
) |
|
(9,937 |
) |
|
(6,197 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP to Non-GAAP
Financial Measures(Unaudited)
|
|
Three Months Ended |
(Unaudited) |
|
June 30, 2018 |
(In thousands, except per share data) |
|
Income fromoperations |
|
Income beforeincome taxes |
|
Net incomeattributable
toBioTelemetry,Inc. |
|
Net income perdiluted shareattributable
toBioTelemetry,Inc. |
GAAP |
|
$ |
11,123 |
|
|
$ |
8,944 |
|
|
$ |
10,444 |
|
|
$ |
0.29 |
|
Non-GAAP
adjustments: |
|
|
|
|
|
|
|
|
Other
charges (a) |
|
5,208 |
|
|
5,208 |
|
|
5,208 |
|
|
0.15 |
|
LifeWatch
amortization (b) |
|
3,350 |
|
|
3,350 |
|
|
3,350 |
|
|
0.09 |
|
Other
expense adjustment (c) |
|
|
|
(748 |
) |
|
(748 |
) |
|
(0.02 |
) |
Income
tax effect of adjustments (d) |
|
— |
|
|
— |
|
|
(1,931 |
) |
|
(0.05 |
) |
Non-GAAP
Adjusted |
|
$ |
19,681 |
|
|
$ |
16,754 |
|
|
$ |
16,323 |
|
|
$ |
0.46 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
(Unaudited) |
|
June 30, 2017 |
(In thousands, except per share data) |
|
Income fromoperations |
|
Income beforeincome taxes |
|
Net incomeattributable
toBioTelemetry,Inc. |
|
Net income perdiluted shareattributable
toBioTelemetry,Inc. |
GAAP |
|
$ |
4,388 |
|
|
$ |
2,996 |
|
|
$ |
1,726 |
|
|
$ |
0.05 |
|
Non-GAAP
adjustments: |
|
|
|
|
|
|
|
|
Other
charges (a) |
|
4,651 |
|
|
4,651 |
|
|
4,651 |
|
|
0.15 |
|
Other
expense adjustment (c) |
|
— |
|
|
898 |
|
|
898 |
|
|
0.03 |
|
Income
tax effect of adjustments (d) |
|
— |
|
|
— |
|
|
(1,887 |
) |
|
(0.06 |
) |
NOL
utilization (e) |
|
— |
|
|
— |
|
|
2,024 |
|
|
0.06 |
|
Non-GAAP
Adjusted |
|
$ |
9,039 |
|
|
$ |
8,545 |
|
|
$ |
7,412 |
|
|
$ |
0.23 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
a) |
|
In the
second quarter 2018, other charges of $5.2 million consisted of
$2.2 million related to the integration of the LifeWatch
acquisition, a $1.8 million reserve for a note receivable with a
bankrupt customer, $0.8 million for patent litigation and $0.4
million of other expense including legal and depreciation. In
the second quarter 2017, other charges of $4.7 million were due to
$3.4 million of professional and legal fees related to the
LifeWatch acquisition, $0.7 million for ongoing patent litigation
and $0.6 million related to other restructuring activities. |
|
|
|
b) |
|
In the
second quarter 2018, we recognized $3.4 million of expense related
to the amortization of intangibles as a result of the LifeWatch
acquisition. We have excluded the LifeWatch amortization of
intangibles from adjusted net income for year over year comparative
purposes. This amortization was recorded as a component of
general and administrative expense. |
|
|
|
c) |
|
In the
second quarter 2018, we incurred $0.3 million of interest related
to a ruling on an arbitration demand filed against LifeWatch prior
to the acquisition. This was offset by an unrealized foreign
exchange gain of $1.0 million associated with our uncertain tax
positions. In the second quarter 2017, we incurred $0.9
million of expense for a foreign currency option related to the
acquisition of LifeWatch. These expenses were recorded as a
component of other expense. |
|
|
|
d) |
|
Represents
the tax effect of the non-GAAP adjustments. |
|
|
|
e) |
|
During the
fourth quarter 2016, we released the tax valuation allowance on our
net deferred tax assets. The benefit from this release was
excluded from our 2016 adjusted results. Without a valuation
allowance in place and due to the timing of discrete items, for
GAAP financial reporting purposes we reported a tax rate of 42.4%
for the second quarter 2017. After giving effect to taxes at
the estimated annual effective tax rate of 34% on the other
adjustments, the utilization of net operating loss carryforwards
had a $2.0 million positive impact on the second quarter 2017. |
|
|
|
|
|
Six Months Ended |
(Unaudited) |
|
June 30, 2018 |
(In thousands, except per share data) |
|
Income fromoperations |
|
Income beforeincome taxes |
|
Net incomeattributable
toBioTelemetry,Inc. |
|
Net income perdiluted shareattributable
toBioTelemetry,Inc. |
GAAP |
|
$ |
17,859 |
|
|
$ |
13,838 |
|
|
$ |
16,426 |
|
|
$ |
0.46 |
|
Non-GAAP
adjustments: |
|
|
|
|
|
|
|
|
Other
charges (f) |
|
10,293 |
|
|
10,293 |
|
|
10,293 |
|
|
0.29 |
|
LifeWatch
amortization (g) |
|
6,585 |
|
|
6,585 |
|
|
6,585 |
|
|
0.19 |
|
Other
expense adjustment (h) |
|
|
|
(748 |
) |
|
(748 |
) |
|
0.02 |
|
Income
tax effect of adjustments (i) |
|
— |
|
|
— |
|
|
(2,364 |
) |
|
(0.07 |
) |
Non-GAAP
Adjusted |
|
$ |
34,737 |
|
|
$ |
29,968 |
|
|
$ |
30,192 |
|
|
$ |
0.85 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended |
(Unaudited) |
|
June 30, 2017 |
(In thousands, except per share data) |
|
Income fromoperations |
|
Income beforeincome taxes |
|
Net incomeattributable
toBioTelemetry,Inc. |
|
Net income perdiluted shareattributable
toBioTelemetry,Inc. |
GAAP |
|
$ |
6,716 |
|
|
$ |
2,326 |
|
|
$ |
1,922 |
|
|
$ |
0.06 |
|
Non-GAAP
adjustments: |
|
|
|
|
|
|
|
|
Other
charges (f) |
|
6,390 |
|
|
6,390 |
|
|
6,390 |
|
|
0.20 |
|
Performance bonus (stock-based comp) (j) |
|
1,533 |
|
|
1,533 |
|
|
1,533 |
|
|
0.05 |
|
Dept. of
Health and Human Services settlement (k) |
|
— |
|
|
2,500 |
|
|
2,500 |
|
|
0.08 |
|
Other
expense adjustment (h) |
|
— |
|
|
898 |
|
|
898 |
|
|
0.03 |
|
Income
tax effect of adjustments (i) |
|
— |
|
|
— |
|
|
(3,849 |
) |
|
(0.12 |
) |
NOL
utilization (l) |
|
— |
|
|
— |
|
|
2,957 |
|
|
0.09 |
|
Non-GAAP
Adjusted |
|
$ |
14,639 |
|
|
$ |
13,647 |
|
|
$ |
12,351 |
|
|
$ |
0.39 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
f) |
|
In the six
months ended June 30, 2018, other charges of $10.3 million
consisted of $7.2 million related to the integration of LifeWatch,
a $1.8 million reserve for a note receivable with a bankrupt
customer, $1.2 million for patent litigation, $0.8 million of other
expense including legal, professional fees and depreciation,
partially offset by a $0.7 million reduction in contingent
consideration related to a 2016 acquisition. In the six
months ended June 30, 2017, other charges of $6.4 million were
due to $5.0 million of transaction costs associated with the
LifeWatch acquisition, $0.6 million related to other restructuring
activities, $0.5 million for patent litigation and $0.3 million for
other expenses. |
|
|
|
g) |
|
In the six
months ended June 30, 2018, we recognized $6.6 million of
expense related to the amortization of intangibles as a result of
the LifeWatch acquisition. We have excluded the LifeWatch
amortization of intangibles from adjusted net income for year over
year comparative purposes. This amortization was recorded as
a component of general and administrative expense. |
|
|
|
h) |
|
In the six
months ended June 30, 2018, we incurred $0.3 million of
interest related to a ruling on an arbitration demand filed against
LifeWatch prior to the acquisition. This was offset by an
unrealized foreign exchange gain of $1.0 million associated with
our uncertain tax positions. In the six months ended
June 30, 2017, we incurred $0.9 million of expense for a
foreign currency option related to the acquisition of
LifeWatch. These expenses were recorded as a component of
other expense. |
|
|
|
i) |
|
Represents
the tax effect of the non-GAAP adjustments. |
|
|
|
j) |
|
In the six
months ended June 30, 2017, we incurred $1.5 million of
expense for the second half of a one-time performance bonus paid to
a third party in the form of stock-based compensation upon the
achievement of the second performance measure. The first of
the two performance measures was achieved in the fourth quarter
2016, resulting in $1.3 million of expense at that time. This
is a nonrecurring expense for us and is the only time in our
history when such a bonus was awarded to a third party. There
are no additional agreements outstanding of this nature. This
expense was recorded as a component of general and administrative
expense. |
|
|
|
k) |
|
In the six
months ended June 30, 2017, we reached a $2.5 million
settlement with the United States Department of Health and Human
Services - Office for Civil Rights. This was related to the
conclusion of an investigation into the theft of two unencrypted
laptop computers that occurred in 2011. This expense was
recorded as a component of other expense. |
|
|
|
l) |
|
During the
fourth quarter 2016, we released the tax valuation allowance on our
net deferred tax assets. The benefit from this release was excluded
from our 2016 adjusted results. Without a valuation allowance
in place and due to the timing of discrete items, for GAAP
financial reporting purposes we reported a tax rate of 17.4% for
the six months ended June 30, 2017. After giving effect to
taxes at the estimated annual effective tax rate of 34% on the
other adjustments, the utilization of net operating loss
carryforwards had a $3.0 million positive impact on the first half
2017. |
|
|
|
(Unaudited) |
|
Three Months Ended |
|
Six Months Ended |
(In thousands) |
|
June 30, 2018 |
|
June 30, 2017 |
|
June 30, 2018 |
|
June 30, 2017 |
Net income
attributable to BioTelemetry, Inc. - GAAP |
|
$ |
10,444 |
|
|
$ |
1,726 |
|
|
$ |
16,426 |
|
|
$ |
1,922 |
|
Net loss
attributable to noncontrolling interest |
|
— |
|
|
— |
|
|
(946 |
) |
|
— |
|
Provision
for/(benefit from) income taxes |
|
(1,500 |
) |
|
1,270 |
|
|
(1,642 |
) |
|
404 |
|
Total
other expense |
|
2,179 |
|
|
1,392 |
|
|
4,021 |
|
|
4,390 |
|
Other
charges |
|
5,208 |
|
|
4,651 |
|
|
10,293 |
|
|
6,390 |
|
Depreciation and amortization |
|
9,937 |
|
|
3,825 |
|
|
19,694 |
|
|
7,540 |
|
Stock
compensation expense |
|
2,858 |
|
|
1,142 |
|
|
4,923 |
|
|
4,200 |
|
Non-GAAP
Adjusted EBITDA |
|
$ |
29,126 |
|
|
$ |
14,006 |
|
|
$ |
52,769 |
|
|
$ |
24,846 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Use of Non-GAAP Financial Measures
In addition to the results prepared in
accordance with generally accepted accounting principles
in the United States, (“GAAP”), this press release also
includes certain financial measures which have been adjusted and
are not in accordance with generally accepted accounting principles
(“Non-GAAP financial measures”). These Non-GAAP financial
measures include adjusted income from operations, adjusted net
income attributable to BioTelemetry, Inc., adjusted net income per
diluted share attributable to BioTelemetry, Inc. and adjusted
EBITDA. In accordance with Regulation G of the Securities and
Exchange Commission, we have provided a reconciliation of these
Non-GAAP financial measures with the most directly comparable
financial measure calculated in accordance with GAAP.
These Non-GAAP financial measures are not
intended to replace GAAP financial measures. They are presented as
supplemental measures of our performance in an effort to provide
our stakeholders better visibility into our ongoing operating
results and to allow for comparability to prior periods as well as
to other companies’ results. Management uses these Non-GAAP
financial measures to assess the financial health of our ongoing
operating performance. Management encourages our stakeholders
to consider all of our financial measures and to not rely on any
single financial measure to evaluate our performance.
Adjusted net income attributable to
BioTelemetry, Inc. for the second quarter 2018 excludes other
charges of $5.2 million driven by $2.2 million of expense related
to the integration of LifeWatch, a $1.8 million reserve for a note
receivable from a bankrupt customer, $0.8 million for patent
litigation and $0.4 million of other expenses including legal and
depreciation. Adjusted net income for the second quarter 2018
also excludes $3.4 million of amortization expense related to
LifeWatch intangibles and $0.3 million of interest related to a
ruling on an arbitration demand filed against LifeWatch prior to
the acquisition as well as an unrealized foreign exchange gain
of $1.0 million associated with our uncertain tax positions.
By excluding expenses that are considered not necessary to support
the ongoing business, are nonrecurring in nature or which limit
year over year comparability, we believe these Non-GAAP financial
measures offer a meaningful representation of our ongoing operating
performance. Included in these excluded items are transaction
related expenses, primarily severance, legal and professional fees,
legal fees related to patent litigation, costs related to
restructuring programs aimed at streamlining operations and
reducing future expense as well as other one-time items.
These excluded charges are not part of the ongoing operations, and
therefore, not reflective of our core operations. We view
patent litigation as an extreme measure not typically required in
our industry to protect a company’s intellectual property and which
has not been common practice for us. We commenced patent
litigation proceedings after we uncovered specific evidence of four
distinct cases of misappropriation and infringement. We can
choose to resolve the outstanding matters and terminate the expense
at any time. We also included the income tax effect of these
adjustments.
Adjusted net income attributable to
BioTelemetry, Inc. for the second quarter 2017 excludes $4.7
million of other charges resulting from $3.4 million of
professional and legal fees related to the LifeWatch acquisition,
$0.7 million of patent litigation expense and $0.6 million for
other restructuring activities. Adjusted net income for the
second quarter 2017 also excludes a $0.9 million expense for a
foreign currency option related to the acquisition of LifeWatch,
the tax effect of all of the adjustments, as well as the impact
from the utilization of our net operating loss carryforwards.
In addition to adjusted income from operations,
adjusted net income attributable to BioTelemetry, Inc. and adjusted
net income per diluted share attributable to BioTelemetry, Inc., we
also present adjusted EBITDA. This Non-GAAP financial measure
excludes income taxes, interest, noncontrolling interest, other
charges, other excluded items included in other income,
depreciation and amortization and stock compensation expense.
EBITDA is a widely accepted financial measure which we believe our
stakeholders use to compare our ongoing financial performance to
that of other companies. Adjusting our EBITDA for other
charges and other one-time items is a meaningful financial measure
as we believe it is an indication of our ongoing operations.
In addition, we also add back stock-based compensation expense
because it is non-cash in nature. Other companies in our
industry may calculate adjusted EBITDA in a different manner.
HeartBeam (NASDAQ:BEAT)
Historical Stock Chart
From May 2024 to Jun 2024
HeartBeam (NASDAQ:BEAT)
Historical Stock Chart
From Jun 2023 to Jun 2024