Patient Home Monitoring Corp.

August 03, 2011 15:03 ET

Patient Home Monitoring (PHM) Announces July 2011 Growth Figures and Achievement of Significant Financial Milestone

SAN FRANCISCO, CALIFORNIA--(Marketwire - Aug. 3, 2011) - PHM (TSX VENTURE:PHM) released July growth figures and disclosed it has achieved a significant financial milestone less than one year after launching commercial operations in September 2010.

At the end of each month, PHM classifies revenue into two components:

  1. Existing Patient Services. PHM generates a recurring monthly revenue stream from enrolled weekly testers.
  2. New Patient Enrollment. New patients add to the existing monthly revenue stream.

Once enrolled, PHM ships a meter with an expected 5-year economic life to a patient. With this meter investment, PHM generates monthly recurring revenue by providing weekly monitoring services to the patient.

July 2011 Growth From New Patient Enrollment

Understanding how many meters were shipped to newly enrolled patients each month is relevant for analyzing growth because shipment of a meter is a prerequisite to performing INR (1) tests eligible for reimbursement (2).

PHM shipped 138 meters in July 2011.

These new meters were shipped to patients who have been prescribed weekly INR tests. If these new patients, along with the patients added in the fiscal third quarter 2011, achieve compliance levels equal to those generated by existing patients, the tests would generate additional annual revenues in excess of $1,000,000 above and beyond the revenue reported for the quarter ending March 31, 2011.

The growth over the past 4 months has resulted in PHM doubling its projected annualized revenue (2).

Significant Financial Milestone

As a result of PHM's recent growth, it has achieved operational break-even, defined as Adjusted EBITDA before Patient Acquisition Costs (3).

"This is a significant financial milestone for us," said Jaime Gerber, Chief Strategic Officer and Interim Chief Executive Officer of PHM. "We now generate more revenue than it costs to provide ongoing PST services including recurring overhead. This contribution can be used to finance our growth rather than relying solely on cash raised from our equity financing last June."

"With this important milestone behind us," continued Dr. Gerber, "we plan to expand into more aggressive growth strategies to match the potential of the market."

(1) International normalized ratio ("INR") tests are used as measures of current and future sales performance. Please refer to the "Non-GAAP Measures" section of PHM's MD&A for further discussion on these operational measures.

(2) Management does not mean to suggest or imply that shipment of meters is equivalent to revenue. Meter shipment is a prerequisite, but not a guaranty, of revenue. Management does not propose meter shipments as a non-GAAP financial measurement, because there is no simple reconciliation between meter shipment and GAAP revenue.

(3) In calculating Adjusted EBITDA Before Patient Acquisition Costs certain items are excluded from net loss including interest, taxes, amortization and non-cash stock-based compensation and patient acquisition costs. Please refer to the "Non-GAAP Measures" section of our MD&A for further discussion on these operational measures.

About PHM

PHM is a healthcare services company focused on providing in-home testing for patients on blood thinner medications such as Coumadin® or warfarin. Medicare recently expanded reimbursement for in-home patient self testing (PST) of blood coagulation levels. PHM has a unique value proposition to cardiology groups that manage patients on blood thinners, focusing on systemization to enroll patients in PST. Current enrollment compliance levels may not be predictive of future enrollment compliance levels. This unique, systemized approach creates an opportunity for physician groups to operate more efficiently, increasing revenue to their clinic while providing a higher standard of care for patients.

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, changes in US healthcare laws, coverage or budgets, 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, low profit market segments as well as general economic, market and business conditions, and could differ materially from what is currently expected.

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

Contact Information

  • Stanmore Capital Partners, Inc.
    Michael Dalsin
    Managing Director
    (323) 253-3055