Welcome!

News Feed Item

Patient Home Monitoring Announces Another Record Quarter of Revenue and Profit, Reports 21% Annualized Quarter-over-Quarter Increase in Organic Growth Revenue

53.8% Increase in Quarterly EPS Growth

LOS ANGELES, CALIFORNIA -- (Marketwired) -- 08/11/14 -- Patient Home Monitoring (PHM) (TSX VENTURE: PHM) today released its financial results for the third quarter ended June 30, 2014.

PHM is rolling-up a large and fragmented market of small, profitable businesses providing healthcare products and services to chronically ill patients. The companies are acquired for their technical and market expertise in certain product and service lines, as well as their patient databases. Once acquired, PHM works to offer these newly acquired services to its entire patient base, thereby increasing revenue per patient and achieving organic post acquisition revenue growth and profits.

Highlights:

Consolidated Results

Increased Revenue

--  Revenue rose to $5.5 million, a 51% increase from the previous quarter
    and a 499% increase year over year.
--  Revenues include only June 2014 of the Care Medical acquisition ($1.33
    million).
--  June Revenue exceeded $2.7 million or $32 million annualized run rate
    revenue.

Significant Organic Revenue Growth including Cross-Selling

--  Over 5.3% quarterly increase in quarter-over-quarter sales attributed to
    organic growth, an annual run rate growth of 21.4% in quarter-over-
    quarter organic sales.
--  New internal call center fully implemented and generating cross-selling
    leads utilizing the Company's growing database of active patients.

Improved Profitability

--  Earnings per share (EPS) rose 53.8% from the previous quarter.(1)
--  Net profit rose to $896,345, a 61% increase from the previous
    quarter.(2)
--  Adjusted earnings before interest, taxes, depreciation and amortization
    (EBITDA) including transactional and nonrecurring cost rose to
    $1,293,773 a 63% increase from the previous quarter.(3)
--  Annualized EBITDA run rate exceeding $6.2 million.

Mergers & Acquisitions Update

--  Closed Care Medical Partners Acquisition June 1, 2014, contributing
    revenues and profits for only 33% of the quarter.
--  1 large ($8 million+ in revenue) acquisition target moving towards a
    Letter of Intent (LOI).
--  2 small ($1-2 million in revenue) acquisition targets moving towards
    LOIs.
--  Over $15 million of leverageable assets on the balance sheet to close
    the next several acquisitions without the need for equity financing.

Stronger Balance Sheet

--  $5.25 million cash balance as of August 1, 2014, as compared to $3.52
    million reported on June 30, 2014.
--  Generated $1.0 million in cash flow from operations for the quarter.
--  Acquired $7.3 million in home-based medical equipment as fixed assets
    fiscal year-to-date (October 1, 2013 to June 30, 2014).
--  $5.19 million in Accounts Receivable as of August 1, 2014.

Full results are available on sedar.com.

"We continue to execute on our strategic plan with another record quarter," said Michael Dalsin, Chairman of PHM. "As of June 2014, PHM is generating over $32 million in annualized revenues and $6.2 million in annualized EBITDA. It was a break out quarter for PHM with regard to expansion of our active patient databases. The cross-selling and organic growth efforts resulted in an annual organic revenue growth rate of over 21.4% for the quarter. It is gratifying to see PHM move from solely a M&A focused company to one that can deliver both organic and inorganic growth at a material level.

It is important to keep in mind that this quarter's revenues and profits only included the month of June of the Care Medical Partners acquisition. Had the full quarter included Care Medical Partners, quarterly revenues would have exceeded $8 million and net profits would have exceeded $1.25 million.

On the acquisition front, PHM's M&A team is negotiating LOIs to acquire profitable companies with cumulative revenues of about $12 million. Our pipeline remains full with the M&A team reviewing over a dozen opportunities a month.

I want to once again congratulate the operational team, led by Andrew Folmer on a record quarter, both in terms of revenues and profits. Particularly I want to credit David Hayes, our Senior Vice President of Sales, with setting up our internal cross selling call center. I also want to credit Jess Cuthbert, our VP of Operations and Asa Stafford, our VP of Patient Services for their work in integrating Care Medical into PHM."

About PHM

PHM is an acquisition-oriented, fast-growing and profitable company servicing patients with heart disease and other chronic health conditions. PHM is focused on acquiring companies in a highly fragmented and developing market of small privately-held companies servicing chronically ill patients with multiple disease states caused mainly by age and obesity. Because of the new and highly fragmented nature of the market, PHM is actively identifying and evaluating profitable, annuity-based companies to acquire at favorable prices for their patient databases and technical expertise. PHM's post-acquisition organic growth strategy is to increase annual revenue per patient by offering multiple services to the same patient, consolidating the patient's services and making life easier for the patient. The expected result is growing EPS with each acquisition and growing revenue and profits from the cross selling efforts.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

(1) EPS and Net Profit does not include IFRS Fair Value of options, warrants expense and stock based compensation. EPS growth was calculated using the following information:

Weighted Average Shares
Outstanding

Q1 2014                               Q2 2014                        Q3 2014
98,970,022                        128,752,044                    134,809,794

Net Profit                         Net Profit                     Net Profit
$140,297                            $ 556,628                       $896,345

EPS                                       EPS                            EPS
$ 0.0014                             $ 0.0043                       $ 0.0067

(2) Net Profit does not include Stock Based Compensation or change in the IFRS Fair Value of options and warrants liability.

(3) Adjusted EBITDA is defined as EBITDA plus Stock Based Compensation and change in financial derivative liability.

Forward-Looking Statements

Information in this news release that is not current or historical factual information may constitute forward-looking information within the meaning of securities laws. Implicit in this information, particularly in respect of the future outlook of PHM and anticipated events or results, are assumptions based on beliefs of PHM's senior management as well as information currently available to it. While these assumptions were considered reasonable by PHM at the time of preparation, they may prove to be incorrect. Readers are cautioned that actual results are subject to a number of risks and uncertainties, including the availability of funds and resources to pursue operations, decline of reimbursement rates, dependence on few payors, possible new drug discoveries, a novel business model, dependence on key suppliers, granting of permits and licenses in a highly regulated business, competition, difficulty integrating newly acquired businesses, low profit market segments as well as general economic, market and business conditions, and could differ materially from what is currently expected. This press release refers non-GAAP and non-IFRS financial measures that do not have standardized meaning prescribed by GAAP or IFRS. PHM's presentation of these financial measures may not be comparable to similarly titled measures used by other companies. These financial measures are intended to provide additional information to investors concerning PHM's performance.

Contacts:
Patient Home Monitoring Corp.
Edward Brann, Investment Banker
(949) 407-6208
[email protected]
www.phmhometesting.com

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
One of the biggest challenges with adopting a DevOps mentality is: new applications are easily adapted to cloud-native, microservice-based, or containerized architectures - they can be built for them - but old applications need complex refactoring. On the other hand, these new technologies can require relearning or adapting new, oftentimes more complex, methodologies and tools to be ready for production. In his general session at @DevOpsSummit at 20th Cloud Expo, Chris Brown, Solutions Marketi...
At the keynote this morning we spoke about the value proposition of Nutanix, of having a DevOps culture and a mindset, and the business outcomes of achieving agility and scale, which everybody here is trying to accomplish," noted Mark Lavi, DevOps Solution Architect at Nutanix, in this SYS-CON.tv interview at @DevOpsSummit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
I think DevOps is now a rambunctious teenager - it's starting to get a mind of its own, wanting to get its own things but it still needs some adult supervision," explained Thomas Hooker, VP of marketing at CollabNet, in this SYS-CON.tv interview at DevOps Summit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
Enterprises are moving to the cloud faster than most of us in security expected. CIOs are going from 0 to 100 in cloud adoption and leaving security teams in the dust. Once cloud is part of an enterprise stack, it’s unclear who has responsibility for the protection of applications, services, and data. When cloud breaches occur, whether active compromise or a publicly accessible database, the blame must fall on both service providers and users. In his session at 21st Cloud Expo, Ben Johnson, C...
In this presentation, you will learn first hand what works and what doesn't while architecting and deploying OpenStack. Some of the topics will include:- best practices for creating repeatable deployments of OpenStack- multi-site considerations- how to customize OpenStack to integrate with your existing systems and security best practices.
"MobiDev is a software development company and we do complex, custom software development for everybody from entrepreneurs to large enterprises," explained Alan Winters, U.S. Head of Business Development at MobiDev, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Agile has finally jumped the technology shark, expanding outside the software world. Enterprises are now increasingly adopting Agile practices across their organizations in order to successfully navigate the disruptive waters that threaten to drown them. In our quest for establishing change as a core competency in our organizations, this business-centric notion of Agile is an essential component of Agile Digital Transformation. In the years since the publication of the Agile Manifesto, the conn...
Leading companies, from the Global Fortune 500 to the smallest companies, are adopting hybrid cloud as the path to business advantage. Hybrid cloud depends on cloud services and on-premises infrastructure working in unison. Successful implementations require new levels of data mobility, enabled by an automated and seamless flow across on-premises and cloud resources. In his general session at 21st Cloud Expo, Greg Tevis, an IBM Storage Software Technical Strategist and Customer Solution Architec...
"We work around really protecting the confidentiality of information, and by doing so we've developed implementations of encryption through a patented process that is known as superencipherment," explained Richard Blech, CEO of Secure Channels Inc., in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Major trends and emerging technologies – from virtual reality and IoT, to Big Data and algorithms – are helping organizations innovate in the digital era. However, to create real business value, IT must think beyond the ‘what’ of digital transformation to the ‘how’ to harness emerging trends, innovation and disruption. Architecture is the key that underpins and ties all these efforts together. In the digital age, it’s important to invest in architecture, extend the enterprise footprint to the cl...
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, discussed the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
"We were founded in 2003 and the way we were founded was about good backup and good disaster recovery for our clients, and for the last 20 years we've been pretty consistent with that," noted Marc Malafronte, Territory Manager at StorageCraft, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
Effectively SMBs and government programs must address compounded regulatory compliance requirements. The most recent are Controlled Unclassified Information and the EU's GDPR have Board Level implications. Managing sensitive data protection will likely result in acquisition criteria, demonstration requests and new requirements. Developers, as part of the pre-planning process and the associated supply chain, could benefit from updating their code libraries and design by incorporating changes. In...
Two weeks ago (November 3-5), I attended the Cloud Expo Silicon Valley as a speaker, where I presented on the security and privacy due diligence requirements for cloud solutions. Cloud security is a topical issue for every CIO, CISO, and technology buyer. Decision-makers are always looking for insights on how to mitigate the security risks of implementing and using cloud solutions. Based on the presentation topics covered at the conference, as well as the general discussions heard between sessio...
IoT is rapidly becoming mainstream as more and more investments are made into the platforms and technology. As this movement continues to expand and gain momentum it creates a massive wall of noise that can be difficult to sift through. Unfortunately, this inevitably makes IoT less approachable for people to get started with and can hamper efforts to integrate this key technology into your own portfolio. There are so many connected products already in place today with many hundreds more on the h...