Patient Home Monitoring
TSX VENTURE : PHM

May 24, 2011 16:58 ET

Patient Home Monitoring (PHM) Announces Second Quarter Results and Changes to Senior Officers

The Shift of Ed Berenblum as Chief Executive Officer to Operational Advisor and the Appointment of Dr. Jaime Gerber, MD as Chief Strategic Officer and Interim Chief Executive Officer

SAN FRANCISCO, CALIFORNIA--(Marketwire - May 24, 2011) - Patient Home Monitoring (PHM) (TSX VENTURE:PHM), a company focused on in-home cardiology healthcare services, today announced results for second fiscal quarter ended March 31, 2011. In conjunction with the results, Ed Berenblum will shift from the CEO position to an operational advisor, remaining to advise the operational management team and PHM will appoint a prominent and highly respected entrepreneur and cardiologist, Dr. Jaime Gerber, MD, FACC, as Interim Chief Executive Officer (CEO) and Chief Strategic Officer (CSO).

PHM will conduct a conference call and webcast on Wednesday, May 25, 2011 at 9:00 am ET to review and discuss second quarter 2011 operating results and to provide a corporate update.

To listen, please visit the investor website at:

www.myphm.com/investor/Q2_2011_Conferencecall

Q2 2011 and Subsequent Highlights

  • Increased quarterly INR tests recorded to 6,312 from 3,824, a 65% increase over the prior quarter(1).
  • For the last month in the quarter, March 2011, PHM recorded 2,752 INR tests(1).
  • Increased quarterly revenue to $250,901 from $134,155, an 87% increase over the prior quarter.
  • Increased cardiology customer base to 14 groups from 7 groups the prior quarter(1).
  • Achieved quarterly gross margin of 57.4%, up from 34.8%, a 66% increase over the prior quarter.
  • Increased quarterly gross profit to $143,939, which exceeded total revenue from the prior quarter.
  • Narrowed Adjusted EBITDA before patient acquisition costs (operating loss) to $165,101 from $218,055 the prior quarter(2).
  • On pace to enroll enough patients to achieve a self-sustaining position within the next quarter using current cash on hand of over $1.7 million.
  • Redoubled a focus on revenue growth through recruitment of proven sales and marketing executives.

Following the growth and operational successes in the last quarter, PHM has refocused corporate leadership on sales, marketing and revenue growth.

"PHM has developed an efficient operation, with a very high gross margin," said Michael Dalsin, Chairman of PHM. "However the company is not yet achieving revenue growth reflective of the potential of the market. While the second quarter operations had some significant positives, such as proving its model by achieving very high gross margin and increased enrollment percentage across existing customers, now the Company needs to realize the growth potential of the market."

PHM has refocused its efforts by recruiting two proven executives who will be responsible for increasing market penetration from different perspectives. Leslie Becker will lead PHM's sales and marketing efforts as Executive Vice President of Business Development and Jaime Gerber will lead to improve PHM's strategic market position as Chief Strategic Officer. Dr. Gerber will also serve as the Interim CEO.

Leslie Becker brings more than 25 years of experience leading and managing successful marketing and sales efforts on behalf of major US healthcare services companies, including Alliance Healthcare, Insight Health, Providence Health Systems and Tenet Health Systems. "Ms. Becker has brought a fresh perspective on analyzing and systematically attacking our many market opportunities, and brings the energy and sense of urgency that we need to acquire our first mover share of this emerging market," said Mr. Dalsin. "We believe that our sales model, implemented properly, will make PHM's growth match or exceed the growth of the market."

In his capacity as CSO, Dr. Gerber will focus primarily on plans to differentiate PHM's service offering to increase PHM's patient enrollment in the fast-growing patient self-testing (PST) market. "Jaime Gerber represents the unusual combination of a successful cardiologist who also has marketing and sales experience in the cardiology services industry and specifically Coumadin testing. I would like to welcome him to the company as he works with the management team to communicate as a peer to cardiologists across the nation," said Mr. Dalsin." Dr. Gerber, a board certified cardiologist, assisted with the establishment of mdINR, LLC, a business focused on the Coumadin market, which was recently acquired by Lincare (Nasdaq:LNCR). He has a deep understanding of sales and marketing in the cardiology sector from his experience with one of the most successful cardiology service companies in the Northeast United States. As a respected cardiologist, he understands how to market on a peer-to-peer basis and increase market access for PHM.

"Ed Berenblum was recruited as a CEO with specific knowledge on building an efficient and highly profitable call center operation," concluded Mr. Dalsin. "I believe he succeeded in that goal. He recruited and trained a COO who effectively continues to improve margins and efficiencies. I want to express my deepest appreciation to Ed and congratulate him on a job well done, showing that PHM can succeed operationally." Dr. Gerber will serve as Interim CEO until a full time successor is found. Mr. Berenblum will continue to consult with the operational team.

For complete financial results, please see our filings at www.sedar.com.

(1)International normalized ratio ("INR") tests and number of cardiology groups with patients testing are used as measures of current and future sales performance. Please refer to the "Non-GAAP Measures" section of our MD&A for further discussion on these operational measures.

(2)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. 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, 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 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.

Contact Information

  • Michael Dalsin
    Chairman, Patient Home Monitoring
    Managing Director, Stanmore Capital Partners, Inc.
    (323) 253-3055
    mpd@stanmorecap.com