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BioTelemetry, Inc. Reports First Quarter 2016 Financial Results

BioTelemetry, Inc. BEAT, +6.36% the leading wireless 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 first quarter ended March 31, 2016.

Company Highlights

  • Recognized highest quarterly revenue in Company's history of $48.6 million, a 12% increase over prior year
  • Achieved fifteenth consecutive quarter of year over year revenue growth
  • Realized highest quarterly EBITDA in Company's history of $10.8 million, a 22% return
  • Serviced highest quarterly patient volume in Company's history, a 10% increase over prior year
  • Recorded $4.0 million GAAP net income for the first quarter
  • Grew CardioKey volume by 33% versus the fourth quarter of 2015
  • Completed the acquisition of the ePatch division of DELTA Danish Electronics, Light and Acoustics on April 1
  • Initiated tender offer for VirtualScopics, Inc.
  • Increased our 2016 EBITDA guidance to be in the range of $42 million to $44 million

President and CEO Commentary

Joseph Capper, President and Chief Executive Officer of BioTelemetry, Inc., commented: "The record performance we delivered last year continued into the first quarter of 2016. We are pleased to report our strongest quarterly performance in the Company's history, posting record revenue, EBITDA and patient volume. These results are validation of the effectiveness of our strategy and our ability to deliver on key management objectives.

"To build on this momentum, we continue to aggressively pursue both organic and acquisition growth opportunities. We recently completed the purchase of the ePatch division of DELTA Danish Electronics, Light & Acoustics. The transaction provides future cost savings relating to our next generation device and adds another monitoring device to our product suite. We also initiated a tender offer for VirtualScopics, Inc. which will expand our clinical research offerings.

"We are very excited about the Company's outlook in 2016 as evidenced by the increase to our EBITDA guidance. We expect our strong growth trends to continue this year supported by numerous internal and external factors. Longer term, we are highly optimistic about our future prospects as we see a growing trend in healthcare toward the use of remote patient monitoring."

First Quarter Financial Results

Revenue for the first quarter 2016 was $48.6 million compared to $43.4 million for the first quarter 2015, an increase of $5.2 million, or 12.0%. This increase was due to $6.1 million higher Healthcare revenue, driven by increased patient volume and the MCT Medicare rate increase that became effective January 1. Research revenue was essentially flat. Technology revenue declined $0.9 million due to lower sales resulting from customers delaying purchases as they await the release of upgraded devices. For the first quarter 2016, Healthcare revenue was comprised of 41.7% Medicare.

Gross profit for the first quarter 2016 increased to $30.6 million, or 63.0% of revenue, compared to $25.2 million, or 58.1% of revenue, for the first quarter 2015. The gross profit percentage was driven by a 390 basis point improvement related to monitoring center efficiencies due to the higher volume, lower device communication and device transportation costs in addition to the 100 basis point impact of the higher MCT Medicare pricing.

On a GAAP basis, operating expense for the first quarter 2016 was $26.1 million, compared to $24.8 million for the first quarter 2015. On an adjusted basis, operating expense for the first quarter 2016 was $24.3 million compared to $22.9 million for the first quarter 2015. The adjusted operating expense excludes $1.8 million for the first quarter 2016 primarily related to patent litigation and the Company's recently announced acquisitions and $1.9 million for the first...


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