Patient Home Monitoring Corp.
TSX VENTURE : PHM

April 09, 2015 12:43 ET

Patient Home Monitoring (PHM) Announces Another Record of Quarterly Revenue and Profits

LOS ANGELES, CALIFORNIA--(Marketwired - April 9, 2015) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN

Patient Home Monitoring (PHM) (TSX VENTURE:PHM), a profitable, acquisition-oriented company focused on providing annuity-based healthcare products and services to patients in the home throughout the US, today announced highlights of its Fiscal Year 2015 second quarter revenues and profits in advance of a presentation to capital market participants in Montreal to accept the award for being a 2015 TSX Venture 50 company and the top company in the Technology & Life Sciences category.

Financial highlights for the quarter ending March 31, 2015:

Revenues:

Total quarterly revenues exceeded $13,000,000; an increase of 28% from the previous quarter and 255% from the quarter a year ago.

March 2015 revenues exceeded $5,000,000, translating to an annualized revenue run rate in excess of $60,000,000.

Revenue Growth:

Inorganic quarterly revenue growth was approximately $1,800,000.

  • 2 months of Black Bear Medical (reported unaudited annualized revenues of $8,500,000 or approximately $700,000 monthly).
  • 1 month of West Home Health (reported unaudited annualized revenues of $5,500,000 or $450,000 monthly).

Organic quarterly revenue growth was approximately $1,100,000, an annualized organic revenue growth rate in excess of 40%.

Profitability:

  • Adjusted EBITDA(1) exceeded $2,850,000; an increase of 20.3% from the previous quarter and 259% from the same quarter a year ago.
  • Net profit before stock-based compensation(2) exceeded $1,600,000; an increase of 23.5% from the previous quarter.
  • Annualized Adjusted EBITDA run rate in excess of $11,400,000.

PHM continues to build its pipeline of qualified acquisition targets:

  • 152 qualified targets in initial contact phase.
  • 16 active targets in initial due diligence.
  • 8 term sheets in negotiation.
  • 2 additional LOI's pending signature from seller.
  • 4 LOI's executed - 2 expected to close this quarter.
  • 2 large acquisition targets with revenues in excess $40 million

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.

"This quarter we had both impressive organic revenue growth and additional revenues from acquisitions," said Michael Dalsin, Chairman of PHM. "While we didn't have the full impact of both acquisitions this quarter, we were still able to generate better than expected revenue growth. Next quarter, we will get the full impact of these acquisitions, along with additional cross selling revenue as our management team integrates the businesses."

"In terms of our M&A pipeline, I do expect that we will close our four outstanding LOIs quite soon," continued Mr. Dalsin. "Since adding to our M&A staff, we have built a very large pipeline which, in my experience, should give us the ability to pick the very best deals. We continue to work with the larger acquisition targets to finalize deal terms and I am cautiously optimistic that we may land a larger deal soon as well. We will continue to focus on our large and growing pipeline of deals to ensure we can achieve our year end run rate revenue goal."

As in the case of other quarterly financial results, the foregoing figures are unaudited. Full financial results from this quarter will be available on SEDAR expected before their due date of June 1, 2015.

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) Adjusted EBITDA is defined as EBITDA not including stock based compensation.

(2) Net Profit does not include stock based compensation or change in the IFRS Fair Value of options and warrants expense.

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.

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