MALVERN, Pa., Feb. 19, 2015 (GLOBE NEWSWIRE) -- BioTelemetry, Inc. (Nasdaq:BEAT), 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 fourth quarter and full year ended December 31, 2014.
2014 Company Highlights
- Achieved full year revenue of $166.6 million, the highest in the Company’s history and an increase of 29% compared to prior year
- Experienced tenth consecutive quarter of year over year revenue growth
- Generated positive adjusted EBITDA of $20.5 million for the year, a 21% increase
- Completed the acquisitions of Mednet, the patient services business of BMS and Radcore
- Announced agreement in principle with the Department of Justice
- Announced reinstatement of Cigna Corporation’s coverage of MCOTTM
- Consolidated and expanded the Company’s debt capacity
- Serviced approximately 550,000 patients in 2014, almost doubling prior year volume
President and CEO Commentary
Joseph Capper, President and Chief Executive Officer of BioTelemetry, Inc., commented: “2014 was another successful year for BioTelemetry as we posted the highest annual revenue in the history of the Company and reported our highest adjusted operating income and EBITDA in six years. We generated excellent organic revenue growth and benefitted from the acquisitions of Mednet and BMS. We also made considerable progress advancing our key strategic objectives.
“Our organic patient growth was driven by the continued success we are having marketing our comprehensive suite of monitoring services. The positive impact of this strategy, along with the reinstatement of Cigna’s coverage of MCOTTM, has provided us added momentum that will continue into 2015. We will gain additional leverage through the integration of the acquisitions as well as expected operational efficiencies in the base business. Furthermore, we will be launching CardioKey, our new low-cost 14-day Holter as well as our next generation MCOTTM device. Both advancements will further solidify our technological leadership position in remote monitoring. In our Research Services segment, we expect solid top line growth with some of the largest studies in the Company’s history scheduled to begin later this year. The combination of continued patient monitoring growth, fueled by exciting new product launches, and strong momentum in Research Services gives us confidence that 2015 will be another successful year for the Company.”
Fourth Quarter Financial Results
Revenue for the fourth quarter 2014 was $43.7 million compared to $33.1 million for the fourth quarter of 2013, an increase of $10.6 million or 31.9%. Approximately $8.7 million of the total increase resulted from the acquisitions of Mednet and BMS in the first half of 2014 with the remaining increase from organic growth across all three segments. For the three months ended December 31, 2014, patient revenue was comprised of 39% Medicare and 61% commercial.
Gross profit for the fourth quarter 2014 was $24.5 million, or 56.2% of revenue, compared to $20.8 million, or 62.8% of revenue, for the fourth quarter 2013. Gross profit for the fourth quarter 2014 on an adjusted basis was $24.7 million, or 56.7% of revenue, which excludes $0.2 million of duplicative labor costs associated with the integration of the acquisitions. The decrease in the adjusted gross profit percentage was primarily related to the lower margin patient mix from the Mednet and BMS acquisitions, which had an impact of 370 basis points. The benefit from the organic patient volume growth was offset by the reduction in reimbursement rates.
On a GAAP basis, operating expenses for the fourth quarter 2014 were $25.2 million, an increase of 22.7%, compared to $20.6 million for the fourth quarter 2013. On an adjusted basis, operating expenses for the fourth quarter 2014 were $23.2 million, a 20.6% increase compared to $19.2 million for the prior year quarter. These adjusted operating expenses exclude $2.1 million for the fourth quarter 2014 primarily due to patent litigation, integration activities and legal fees associated with the Civil Investigative Demand, and $1.4 million for the fourth quarter 2013 primarily related to patent litigation and legal fees associated with the Civil Investigative Demand. The increase in adjusted operating expense is primarily due to the addition of Mednet and BMS expense.
On a GAAP basis, net loss for the fourth quarter 2014 was $1.7 million, or a loss of $0.06 per diluted share. For the fourth quarter 2013, net income and earnings per share were breakeven. Excluding $3.0 million related to integration, restructuring and other nonrecurring charges which includes $0.4 million for the extinguishment of debt and $0.4 million for a reduction of the tax benefit recorded in relation to the Mednet acquisition, adjusted net income for the fourth quarter 2014 was $1.4 million, or income of $0.05 per diluted share. This compares to adjusted net income of $1.4 million, or income of $0.05 per diluted share, for the fourth quarter 2013, which excludes $1.4 million of integration, restructuring and other nonrecurring charges.
Full Year 2014 Financial Results
Revenue for the twelve months ended December 31, 2014 was $166.6 million compared to $129.5 million for the prior year, an increase of $37.1 million or 28.6%. Approximately $30.0 million of the increase resulted from the acquisitions of Mednet and BMS in the first half of 2014. Excluding these acquisitions, the remaining increase was due to higher volume in the Patient Services and Product segments which was partially offset by lower patient reimbursement and a decrease in the Research Services segment of $0.6 million. For the twelve months ended December 31, 2014, patient revenue was comprised of 40% Medicare and 60% commercial.
Gross profit for the twelve months ended December 31, 2014 was $93.5 million, or 56.1% of revenue, compared to $79.1 million, or 61.1% of revenue, for the prior year. Gross profit for the twelve months ended December 31, 2014 on an adjusted basis was $94.6 million, or 56.8% of revenue, excluding $1.1 million related to duplicative labor costs associated with the integration of the acquisitions. This compares to gross profit for the twelve months ended December 31, 2013 on an adjusted basis of $79.6 million, or 61.4% of revenue which excludes $0.5 million related to restructuring and other nonrecurring charges. The decrease in the adjusted gross profit percentage was primarily related to the lower margin patient mix from the Mednet and BMS acquisitions, which had an impact of 350 basis points. The benefit from the organic patient growth was offset by the reduction in reimbursement rates.
On a GAAP basis, operating expenses for the twelve months ended December 31, 2014 were $97.8 million, an increase of 13.8%, compared to $85.9 million in the prior year. On an adjusted basis, operating expenses for the full year 2014 were $90.7 million, a 17.0% increase compared to $77.5 million in the prior year. These adjusted operating expenses exclude $7.1 million for the full year 2014 primarily due to patent litigation, integration activities and legal fees associated with the Civil Investigative Demand and $8.4 million for the full year 2013 related to patent litigation, legal fees associated with the Civil Investigative Demand as well as costs for restructuring and integration. The increase in adjusted operating expense is due to the Mednet and BMS acquisitions that occurred earlier in the year.
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