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 third quarter ended September 30, 2019.
- Recognized quarterly revenue of $111.3 million
- Reached 11.3% year-over-year revenue growth
- Achieved 29th consecutive quarter of year-over-year revenue growth
- Reported GAAP net income of $8.3 million
- Realized quarterly adjusted EBITDA of $31.5 million, or 28.3% of revenue
President and CEO Commentary
Joseph H. Capper, President and Chief Executive Officer of BioTelemetry, Inc., commented: “The third quarter was another excellent quarter for BioTelemetry, highlighted by 11% revenue growth and an adjusted EBITDA margin of 28%. These results exceeded our expectations and marked the 29th consecutive quarter of year-over-year growth. Demand remained strong for our Healthcare services, driven primarily by our extended Holter and MCT, which accelerated to 11% growth in the third quarter. We also benefitted from our 2019 acquisitions, Geneva and ADEA Medical, as well as continued growth in our Research and digital population health businesses. Our adjusted EBITDA margin also exceeded our expectations as a result of our continued focus on operational efficiencies.
“Our momentum was strengthening as we entered the fourth quarter. However, approximately two weeks ago, we detected suspicious activity on our information technology network. As part of our comprehensive response plan, we immediately took certain systems offline to contain the activity and engaged an outside forensics team to conduct an independent investigation. Substantially all systems have resumed, and our technical team continues to work closely with third-party consultants to further address this matter. There has been no evidence of any unauthorized transfer or misuse of customer or employee data. As always, our primary focus remains our customers and patients.
“This incident did temporarily disrupt our services, which we expect will impact our fourth quarter results. Given the information we currently have, we now expect our full year 2019 revenue to be in the range of $435 to $440 million.
“As we close out 2019, we will continue to execute on our proven growth strategy. Given the strong fundamentals of our core business, coupled with our acquisitions, which have more than doubled our addressable market, we expect 2020 to be another outstanding year with double digit organic growth.”
Third Quarter Financial Results
Revenue for the third quarter 2019 was $111.3 million compared to $100.0 million for the third quarter 2018, an increase of $11.3 million, or 11.3%.
Gross profit for the third quarter 2019 was $69.3 million, or 62.3% of revenue, compared to $62.7 million, or 62.7% of revenue, for the third quarter 2018.
On a GAAP basis, net income attributable to BioTelemetry, Inc. for the third quarter 2019 was $8.3 million, or $0.23 per diluted share, compared to net income attributable to BioTelemetry, Inc. of $16.0 million, or $0.45 per diluted share, for the third quarter 2018. The decline in net income attributable to BioTelemetry, Inc. is primarily due to a $4.7 million increase in income tax expense, with a prior year tax benefit from discrete items, as well as the ongoing investments in the Company’s salesforce and technology. While the Company’s expected annual effective tax rate is approximately 20%, as a result of the utilization of net operating loss carryforwards, the Company expects to use approximately $1-2 million of cash for taxes in 2019.
On an adjusted basis1, net income attributable to BioTelemetry, Inc. for the third quarter 2019 was $18.8 million, or $0.52 per diluted share. This compares to adjusted net income attributable to BioTelemetry, Inc. of $19.2 million, or $0.53 per diluted share, for the third quarter 2018. The impact of the ongoing investments in their salesforce and technology is being offset by the revenue growth. 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 their performance, as they exclude expenses that are not necessary to support their ongoing business. The Company also makes adjustments to facilitate year over year comparisons. Please refer to their “Reconciliation of GAAP to Non-GAAP Financial Measures” in this release for additional information.
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