Patient Home Monitoring Corp.
TSX VENTURE : PHM

August 29, 2011 21:54 ET

Patient Home Monitoring (PHM) Announces Third Quarter Results and Expanded Revenue Growth Strategy

SAN FRANCISCO, CALIFORNIA--(Marketwire - Aug. 29, 2011) - Patient Home Monitoring (PHM) (TSX VENTURE:PHM), a company focused on in-home cardiology healthcare services, today announced results for its third fiscal quarter ended June 30, 2011. In conjunction with the results, PHM's management team provided details behind what is driving the impressive revenue growth.

PHM will conduct a conference call and webcast on Tuesday, August 30, 2011 at 12:00 pm ET to review and discuss the third quarter 2011 operating results and to provide a corporate update.

To listen, please visit the investor website at:

www.phmhometesting.com/investor/Q3_2011_Conferencecall

Q3 2011 and Subsequent Highlights

PHM Annualized Revenue Growth from Start-up to Current Reported Quarter

To view the PHM Annualized Revenue Growth graph, please visit the following link: http://media3.marketwire.com/docs/829phm.pdf

Revenues
  • Increased quarterly revenue to $441,997 from $250,901, a 76% increase over the prior quarter.
  • Increased quarterly INR tests(1) recorded to 10,460 from 6,312, a 64% increase over the prior quarter.
  • For the last month in the quarter, June 2011, PHM recorded 4,110 INR tests.
Profits
  • Increased quarterly gross profit to $275,809, which exceeded total revenue from the prior quarter.
  • Narrowed Adjusted EBITDA before patient acquisition costs(2) (operating loss) to $73,410 from $165,101 the prior quarter
  • Achieved quarterly gross margin of 62.4%, up from 57.4%, a 8.7% increase over the prior quarter.
  • Since early August, PHM has been using the contribution of positive adjusted EBITDA before patient acquisition costs to finance further growth.
Strategy
  • Appointed Dr. Jaime Gerber, MD, FACC, as Interim Chief Executive Officer and Chief Strategic Officer.
  • Finalized the pilot program for operating a point-of-care clinic by:
    1. Increasing PST enrollment in the clinic to 33% of the eligible patient population, up from an average of 20% from other PHM customers.
    2. Decreasing costs of operations by developing and implementing more efficient systems and processes.

Dr. Jaime Geber, MD, interim CEO and Chief Strategic Officer said, "In this quarter, we start to see the positive results of the astounding growth that PHM has had since it started commercial operations about one year ago. Each month, PHM continues to ship additional meters and increase overall enrollment. As a result of this, PHM has seen a significant increase in revenues."

In order to fully realize the potential of the market, PHM is leveraging its current, fast-growth business to become a full service disease management company for its patients and large cardiology group customers.

Through its frequency of contact with both patient and healthcare provider, PHM is incredibly well positioned to be the preferred in-home health provider for patients with all types of disease states relating to cardiac conditions.

With this expanded revenue growth strategy, PHM is positioned to move into a shared support relationship with the healthcare provider, where the patient has a natural tendency to move onto a PHM service rather than a more cumbersome, competitive service.

"Now that PHM is operationally profitable(2)," continued Dr. Gerber, "it can focus its energy on a broader offering to the market. PHM enjoys an incredible relationship with patients, nurses and doctors; weekly interaction with its client base positions PHM to offer comprehensive disease management services in a way that no other in-home provider is capable of matching."

Dr. Gerber further noted that the expanded revenue growth strategy, implemented in June as a pilot program, resulted in increased patient enrollment compared to an average month.

"While PHM has typically enrolled about 130 patients per month through its traditional strategy, in June, the expanded revenue strategy resulted in the enrollment of 220 patients, a significant increase."

PHM is focused on continuing to increase revenue growth while maintaining high gross margins.

For complete financial results, please see PHM's 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 PHM's MD&A for further discussion on these operational measures.

(2) Operational Profitability is defined as Adjusted EBITDA before patient acquisition costs. In calculating Adjusted EBITDA before patient acquisition costs certain items are excluded from net loss including interest, taxes, amortization, non-cash stock-based compensation and patient acquisition costs. Please refer to the "Non-GAAP Measures" section of PHM's MD&A for further discussion on these operational measures at

http://phmhometesting.com/investor/public/dl/2011_Q3_MD&A.pdf

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

  • Stanmore Capital Partners, Inc.
    Michael Dalsin
    Managing Director
    +1(323) 253-3055
    mpd@stanmorecap.com