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, today reported results for the second quarter ended June 30, 2019.
- Recognized record quarterly revenue of $111.8 million
- Reached 10.3% year-over-year revenue growth
- Achieved 28th consecutive quarter of year-over-year revenue growth
- Reported GAAP net income of $8.3 million
- Realized quarterly adjusted EBITDA of $31.6 million, or 28.3% of revenue
- Acquired Sweden-based ADEA Medical AB
President and CEO Commentary
Joseph H. Capper, President and Chief Executive Officer of BioTelemetry, Inc., commented: “Our growth momentum continued in the second quarter, with revenue growth of 10%, enabling us to achieve the high end of our guidance. This revenue growth was once again primarily driven by the strong demand for our MCT and extended Holter services as well as the addition of the monitoring revenue from Geneva, which we acquired in the first quarter. Our revenue also benefitted from double-digit growth in our Research and digital population health businesses due to increased volumes. In addition to our strong topline growth, we also realized another quarter of record adjusted EBITDA, which exceeded our expectations. This is a result of our continued focus on process improvements and investments to streamline our operations.
“As we look forward, we are constantly evaluating growth opportunities, both in our current markets as well as in new areas. This led us to the acquisitions of Geneva in the first quarter and ADEA Medical in June. The addition of Geneva has allowed us to extend our reach into the monitoring of implantable cardiac devices, such as defibrillators and loop recorders. We now offer the most comprehensive suite of cardiac monitoring services of any company in the world. Additionally, the acquisition of ADEA Medical allows us to deliver our services to the European market. We are excited about the growth potential both of these acquisitions provide the organization in the near term and expect these ventures to help lead the organization into the future.”
Second Quarter Financial Results
Revenue for the second quarter 2019 was $111.8 million compared to $101.4 million for the second quarter 2018, an increase of $10.4 million, or 10.3%.
Gross profit for the second quarter 2019 was $70.2 million, or 62.8% of revenue, compared to $65.8 million, or 64.9% of revenue, for the second quarter 2018.
On a GAAP basis, net income attributable to BioTelemetry, Inc. for the second quarter 2019 was $8.3 million, or $0.23 per diluted share, compared to net income attributable to BioTelemetry, Inc. of $10.4 million, or $0.29 per diluted share, for the second quarter 2018. The decline in net income attributable to BioTelemetry, Inc. is primarily due to a $6.3 million increase in income tax expense, with a prior year tax benefit from discrete items, partially offset by the positive impact of the increased revenue. While the Company’s expected annual effective tax rate is approximately 21%, as a result of the utilization of net operating loss carryforwards, the Company will only use approximately $2.0 million of cash for taxes in 2019.
On an adjusted basis1, net income attributable to BioTelemetry, Inc. for the second quarter 2019 was $19.4 million, or $0.53 per diluted share. This compares to adjusted net income attributable to BioTelemetry, Inc. of $16.3 million, or $0.46 per diluted share, for the second quarter 2018. This increase was driven by revenue growth as well as increased expense leverage. The details regarding adjusted net income are included in the reconciliation tables included in this release.
Source: BioTelemetry, Inc., 1000 Cedar Hollow Rd Ste 210, Malvern PA 19355
1 The Company believes that providing non-GAAP financial measures offers a meaningful representation of our performance, as they excluded expenses that are not necessary to support our ongoing business. The Company also made adjustments to facilitate year over year comparisons. Please refer to their “Reconciliation of GAAP to Non-GAAP Financial Measures” for additional information.
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