MALVERN, PA — BioTelemetry, Inc. (NASDAQ: BEAT), the leading remote medical technology company focused on the delivery of health information to improve quality of life and reduce cost of care, recently reported results for the quarter ended March 31, 2020.
- Recognized quarterly revenue of $113.0 million
- Reached 8.7% year-over-year quarterly revenue growth
- Achieved 31st consecutive quarter of year-over-year revenue growth
- Reported quarterly GAAP net income of $7.1 million, or 6.3% of revenue
- Realized quarterly adjusted EBITDA of $29.5 million, or 26.1% of revenue
President and CEO Commentary
Joseph H. Capper, President and Chief Executive Officer of BioTelemetry, Inc., commented:
“I would like to first express my sincere gratitude to the entire BioTelemetry team and to our many customers, suppliers and partners for their unwavering commitment in providing continuous service as we navigate this crisis.
“In spite of the current challenges, we had an excellent first quarter, during which we grew revenue to a record high of $113.0 million and recorded $29.5 million of adjusted EBITDA. All segments of the business grew and contributed to our 31st consecutive quarter with year-over-year revenue growth.
“When the crisis hit, we made the necessary adjustments to scale back our operating cost structure without dramatically changing our capabilities. Our focus now is to guide the Company through this crisis as efficiently and effectively as possible, while remaining well positioned to meet demand in the event of a rapid recovery. Our excellent financial position will also enable us to continue advancing our business development opportunities.
“In a post-COVID healthcare environment, there will certainly be a greater acceptance of tele-health and remote monitoring solutions. As one of the largest, fastest growing and most profitable connected health companies, we are fortunate to be well ahead of the demand curve and perfectly positioned to capitalize on this opportunity.”
First Quarter Financial Results
Revenue for the first quarter 2020 was $113.0 million compared to $104.0 million for the first quarter 2019, an increase of $9.1 million, or 8.7%.
Gross profit for the first quarter 2020 was $70.5 million, or 62.4% of revenue, compared to $64.8 million, or 62.3% of revenue, for the first quarter 2019.
On a GAAP basis, net income for the first quarter 2020 was $7.1 million, or $0.19 per diluted share, compared to net income of $11.7 million, or $0.32 per diluted share, for the first quarter 2019. The decline in net income was primarily due to an increase in income tax expense, driven by the higher equity compensation deductions in the prior year as compared to the current period.
On an adjusted basis1, net income for the first quarter 2020 was $16.4 million, or $0.45 per diluted share. This compares to adjusted net income of $15.2 million, or $0.42 per diluted share, for the first quarter 2019. Revenue growth is being offset by the impact of the ongoing investments in their sales force and technology. The details regarding adjusted net income are included in the reconciliation tables included in this release.
1 The Company believes that providing non-GAAP financial measures offers a meaningful representation of their performance, as they exclude expenses that are not necessary to support their ongoing business. they also make adjustments to facilitate year over year comparisons. Please refer to their “Reconciliation of GAAP to Non-GAAP Financial Measures” for additional information.
In view of the COVID-19 pandemic, BioTelemetry is withdrawing its previous financial guidance issued on February 26, 2020. Given the uncertain scope and duration of the pandemic, BioTelemetry is unable to estimate the impact of the COVID-19 outbreak on its operations and financial results.
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