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, this week reported results for the quarter and year ended December 31, 2019.
- Recognized quarterly revenue of $112.0 million
- Reached 8.1% year-over-year quarterly revenue growth
- Achieved 30th consecutive quarter of year-over-year revenue growth
- Reported GAAP net income of $1.6 million, or 1.4% of revenue
- Realized quarterly adjusted EBITDA of $31.7 million, or 28.3% of revenue
- Received coverage from five new Blue Cross companies for MCT services
President and CEO Commentary
Joseph H. Capper, President and Chief Executive Officer of BioTelemetry, Inc., commented: “Our fourth quarter capped off a strong year for BioTelemetry, highlighted by our highest quarterly revenue and adjusted EBITDA in company history. These results came in at the high end of our expectations and marked the 30th consecutive quarter of year-over-year revenue growth. Healthcare services demand remained robust, with revenue growing 9% on a year-over-year basis, driven primarily by our MCT, extended Holter and Geneva services. We also benefited from continued growth in our Research and digital population health businesses.
“2019 was a solid year for BioTelemetry. We began with the acquisitions of Geneva Health Solutions and ADEA Medical, increasing our addressable market by over $1 billion. The Geneva acquisition provides access to the monitoring of implantable devices and ADEA broadens our reach into Europe. We saw top-line growth across all segments, led by Healthcare services, resulting in record revenue for the year. We invested in information technology, research and development and sales resources, which we expect will enhance our operations and drive growth for years to come. Also during 2019, through our “Heart for Hope” corporate give-back program, we proudly funded life-saving heart surgeries and follow-up care for 200 underprivileged children.
“As we look forward to 2020, we will continue to execute on our proven growth strategy, which we expect will deliver double-digit top-line growth and adjusted EBITDA margin expansion. Given the strong fundamentals of our core business, combined with our acquisitions and the newly expanded MCT insurance coverage, we believe BioTelemetry is on track to have another record year.”
Fourth Quarter Financial Results
Revenue for the fourth quarter 2019 was $112.0 million compared to $103.6 million for the fourth quarter 2018, an increase of $8.4 million, or 8.1%.
Gross profit for the fourth quarter 2019 was $69.9 million, or 62.4% of revenue, compared to $63.9 million, or 61.7% of revenue, for the fourth quarter 2018.
On a GAAP basis, net income attributable to BioTelemetry, Inc. for the fourth quarter 2019 was $1.6 million, or $0.04 per diluted share, compared to net income attributable to BioTelemetry, Inc. of $10.4 million, or $0.29 per diluted share, for the fourth quarter 2018. The decline in net income attributable to BioTelemetry, Inc. was primarily due to an increase in general and administrative and sales and marketing expenses resulting from ongoing investment in infrastructure. The decline was also attributable to increases in other charges resulting primarily from the Company’s information technology incident, the change in the fair value of acquisition-related contingent consideration, an impairment of their equity method investment and an unfavorable foreign exchange impact.
On an adjusted basis1, net income attributable to BioTelemetry, Inc. for the fourth quarter 2019 was $17.8 million, or $0.48 per diluted share. This compares to adjusted net income attributable to BioTelemetry, Inc. of $20.1 million, or $0.56 per diluted share, for the fourth quarter of 2018. Revenue growth is being offset by the impact of the ongoing investments in the Company’s 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. The Company also makes adjustments to facilitate year over year comparisons. Please refer to the Company’s “Reconciliation of GAAP to Non-GAAP Financial Measures” in this release for additional information.
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