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 June 30, 2020.
- Recognized quarterly total revenue of $99.1 million
- Total revenue declined 11.4% year-over-year due to the impact of COVID-19 across most of our businesses
- Reported quarterly GAAP net income of $2.3 million, or 2.3% of total revenue
- Realized quarterly adjusted EBITDA of $25.6 million, or 25.8% of total revenue
- Acquired Remote Patient Monitoring (“RPM”) assets from a subsidiary of Centene Corporation
- Entered into Sales Agent Agreement with Boston Scientific
- Assumed responsibility to service Roche’s remote INR patient base
President and CEO Commentary
Joseph H. Capper, President and Chief Executive Officer of BioTelemetry, Inc., commented:
“Due to the unwavering commitment of the entire BioTelemetry team, we continued to successfully navigate the current external challenges. As such, our business recovered faster than anticipated during the quarter, finishing strong with total revenue of $99.1 million and adjusted EBITDA of $25.6 million.
“Cardiac monitoring volumes bounced off their April lows, quickly returning to more normalized levels by quarter end. Given the encouraging trends coming out of the quarter, we believe we will soon be back to delivering year-over-year revenue and earnings growth.
“As I shared previously, in early April we streamlined our cost structure to manage through the downturn. As the business improved, we were able to call back all furloughed employees and are now operating at pre-pandemic headcount levels.
“We have pivoted back into an offensive posture as evidenced by the advancement of several business initiatives. The acquisition of Centene’s RPM assets is a key step toward increasing our commercial activity in the rapidly growing population health management market.
“The Boston Scientific and Roche agreements are designed to extend the capabilities of our market-leading cardiac monitoring franchise.
“As one of the largest, fastest-growing and most profitable connected health companies, we are perfectly positioned to capitalize on this opportunity.”
Second Quarter Financial Results
Total revenue for the second quarter 2020 was $99.1 million compared to $111.8 million for the second quarter 2019, a decrease of $12.7 million, or 11.4%.
Gross profit for the second quarter 2020 was $61.5 million, or 62.1% of total revenue, compared to $70.2 million, or 62.8% of total revenue, for the second quarter 2019.
On a GAAP basis, net income for the second quarter 2020 was $2.3 million, or $0.06 per diluted share, compared to net income of $8.3 million, or $0.23 per diluted share, for the second quarter 2019.
The decline in net income was primarily due to the impact of COVID-19 on total revenue, partially offset by decreases in operating costs as the Company scaled-back their operations due to the reduced demand.
On an adjusted basis1, net income for the second quarter 2020 was $12.9 million, or $0.35 per diluted share. This compares to adjusted net income of $19.4 million, or $0.53 per diluted share, for the second quarter 2019.
The decline in non-GAAP adjusted net income was consistent with the change in GAAP net income. 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 make 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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