Patient Home Monitoring Corp.
TSX VENTURE : PHM

January 27, 2015 09:00 ET

Patient Home Monitoring (PHM) Announces Record Quarterly Revenue and Profits; Reports Strong Increase in Organic Growth Rate; Provides Investor Presentation Ahead of Capital Markets Meetings

LOS ANGELES, CALIFORNIA--(Marketwired - Jan. 27, 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 first quarter revenues and profits, including strong organic growth figures ahead of investor meetings in Canada this week.

To access the latest investor presentation, please visit:

http://phmhometesting.com/investor/public/dl/PHM%20Presentation%20January%202015.pdf

Financial highlights for the quarter ending December 31, 2014:

  • Revenues exceeded $10,050,000; an increase of 14% from the previous quarter and 325% from the quarter a year ago. 100% of this quarter-over-quarter growth was attributable to organic growth.
  • Adjusted EBITDA(1) exceeded $2,3500,000; an increase of 12% from the previous quarter and 722% from the same quarter a year ago.
  • Net profit before stock-based compensation(2) exceeded $1,500,000; a slight increase from the previous quarter due mainly to interest payments.
  • Annualized organic revenue growth for the quarter exceeded 56%.
  • Annualized revenue run rate in excess of $40,000,000.
  • Annualized Adjusted EBITDA run rate in excess of $9,400,000.

PHM continues to build its pipeline of qualified acquisition targets:

  • 27 qualified targets in initial contact phase.
  • 16 active targets in initial due diligence.
  • 4 term sheets in negotiation.
  • 2 LOI's pending signature from seller.
  • 3 LOI's executed - 2 expected to close this quarter.

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.

"Our executive team continues to surpass our expectations in organic growth post acquisition," said Michael Dalsin, Chairman of PHM. "We continue to be focused on EPS increases from both organic and inorganic growth. This quarter all of our revenue and profit growth was organic as no acquisitions were closed during the last two quarters."

"In terms of the next few quarters, I expect we will close several deals in our pipeline as we pick up the pace in acquisitions," continued Mr. Dalsin. "Our pipeline is as full as it has ever been, our M&A team has more capacity than it has ever had and we are generating more profits than we ever have - so I am optimistic we will see an improvement over last year."

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 March 2, 2015. Additionally, PHM will release Audited year-end (September 30, 2014) financial results on SEDAR Wednesday night, January 28, 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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