LAFAYETTE, LOUISIANA--(Marketwired - Aug. 24, 2016) -
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Patient Home Monitoring (PHM) (TSX VENTURE:PHM), a healthcare service company with operations in the US, announced today that it has posted its financial results for the third quarter of fiscal 2016 and the Company continues to execute on the strategic plan of integrating and optimizing the business units for profitability growth.
- Revenues for the three months ended June 30, 2016 were approximately $32,283,000. Revenues increased approximately 2% before the effects of translation to Canadian dollars, as compared to quarter ended March 31, 2016. The increase in sales before currency adjustments is in-line with previous guidance, and included no revenues from the Logimedix subsidiary during the current quarter. After accounting for the Logimedix revenues in the last quarter, revenues were up approximately 5%. Additionally, the Company has continued to scale back on product lines that have low profit margins and continues to focus on organically growing the higher margin business. Despite the July 1, 2016 reduction in reimbursement for certain products and services in addition to the continuation of reduction of certain low margin revenue streams, the revenues for the fourth quarter are expected to be slightly up from the previous quarter. While the Company continues to resolve bad debt, its rigorous review of all outstanding receivables has converted many old receivables into cash.
- As of the end of the quarter, the company had a cash balance of $7,827,000, accounts receivable balance of $33,645,000 and current liabilities of $20,861,000. The Company settled approximately $13 million of purchase price payable (current liability at March 31, 2016) through the issuance of shares and other post-closing working capital adjustments, thereby significantly increasing the working capital balance and aligning current management with shareholders through significant equity ownership. The total liabilities of the Company are down approximately 32% since March 31, 2016
- The Company has continued its reorganization and integration efforts by creating DME and Disease Management divisions. In conjunction with the reorganization, there have been significant realignment and overhead reductions that will reduce annual overhead by approximately 10% with a goal of continuing to bring down cost structure. The Company has significantly reduced operations in certain subsidiaries in order to maximize profitability and to assure that all business units become individually profitable.
Full results have been posted on SEDAR.
"I am pleased to share with investors that we continue to make strides in our integration and optimization of our subsidiaries and have our eyes set on profitability growth," said Casey Hoyt, CEO of PHM. "The recent decline in our stock price is not indicative of the work being done by our team, but does reflect the challenges that come with integrating companies in an ever-changing and evolving healthcare market. We remain committed to our mission of treating more patients in the home and optimistic that our daily focus on the highest margin businesses and attention to costs will ultimately drive our financial results into positive territory. Our number one goal right now is to turn around and begin growing our liquidity position through all of our strategic initiatives."
PHM also announced that it will hold its Quarterly conference call to review the quarter and update the market on plans for 2016 and beyond at 4:30 p.m. EST on August 24, 2016.
The explosive growth in the number of elderly patients in the US healthcare market is creating pressure to provide more efficient delivery systems. Healthcare providers, such as hospitals, physicians and pharmacies, are seeking partners that can offer a range of products and services that improve outcomes, reduce hospital readmissions, and help control costs. PHM fills this need by delivering a growing number of specialized products and services to achieve these goals. PHM is company that serves patients with heart disease and other chronic health conditions, this operation is a platform for acquisitions and organic growth. PHM is focused on 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. 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.
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.
Certain statements contained in this press release constitute "forward-looking information" as such term is defined in applicable Canadian securities legislation. The words "may", "would", "could", "should", "potential", "will", "seek", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions as they relate to PHM, revenues for the fourth quarter expected to be slightly higher than the prior quarter, are intended to identify forward-looking information. All statements other than statements of historical fact may be forward-looking information. Such statements reflect PHM's current views and intentions with respect to future events, and current information available to PHM, and are subject to certain risks, uncertainties and assumptions. Material factors or assumptions were applied in providing forward-looking information, including our ability to increase higher margin product sales while continuing to phase out certain product lines. Many factors could cause the actual results, performance or achievements that may be expressed or implied by such forward-looking information to vary from those described herein should one or more of these risks or uncertainties materialize. These factors include changes in law, the ability to implement business strategies and pursue business opportunities, state of the capital markets, 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, amongst others. Should any factor affect PHM in an unexpected manner, or should assumptions underlying the forward-looking information prove incorrect, the actual results or events may differ materially from the results or events predicted. Any such forward-looking information is expressly qualified in its entirety by this cautionary statement. Moreover, PHM does not assume responsibility for the accuracy or completeness of such forward-looking information. The forward-looking information included in this press release is made as of the date of this press release and PHM undertakes no obligation to publicly update or revise any forward-looking information, other than as required by applicable law.
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.