American Medical Alert Corp. Reports Year End 2009 Results - Yahoo! Finance
American Medical Alert Corp. Reports Year End 2009 Results
Net income increased 47% for the year ended December 31, 2009 as
compared to same period last year, after excluding a one-time non
operating charge to 2008 net income of $521,627.
For the fourth quarter in 2009, the HSMS division recorded a gross
profit percentage of over 60%, and the division’s overall gross profit
percentage for 2009 improved to 59%, representing a 3% increase over
the prior year.
The Company improved its working capital position in 2009 and, as
of December 31, 2009, had working capital of approximately $8,900,000
representing a 2.85:1 ratio of current assets to current liabilities.
The Company declared its first dividend ever in December 2009 of
$0.10 per share.
American Medical Alert Corp. a provider of healthcare
communication services and advanced telehealth monitoring technologies,
today announced operating results for the quarter and year ended
December 31, 2009.
Revenues for the quarter ended December 31, 2009, consisting primarily
of monthly recurring revenues (MRR), increased 2% to $9,920,593 as
compared to $9,740,667 for the same period in 2008. Net income for the
quarter ended December 31, 2009 increased 30% to $763,733 or $.08 per
diluted share as compared to $589,311 or $.06 per diluted share for the
same period in 2008. This 30% growth rate excludes a one time non
operating charge of $521,627 incurred in 2008, and thereby more
accurately reflects the growth from an operational perspective.
Revenues for the year ended December 31, 2009 increased 2% to
$39,456,936, as compared to $38,586,820 for the same period in 2008. Net
income increased 47% to $2,889,513 or $0.30 per diluted share as
compared to $1,961,228 or $0.20 per diluted share for the previous year.
As discussed above, this 47% growth rate excludes a one time non
operating charge of $521,627 in 2008. Without this exclusion, the growth
in net income would be approximately 101%.
The Company had projected that gross revenues, consisting primarily of
monthly recurring revenue (MRR), would increase by 3.5% to approximately
$39,935,000. The Company realized a shortfall of approximately 1% which
was primarily the result of a delay in the commercial release of
MedSmart, AMAC’s medication management system as well as reduced
business generated from its clinical trial business. The MedSmart
management and event report system is now fully commercialized and being
sold. With respect to the clinical trials business, the Company has
executed certain agreements with new customers for work to be performed
in 2010 and believes this will facilitate improved results within this
The Company had projected net income would increase by 46% to $2,860,000
for the year ending December 31, 2009. The Company exceeded its earnings
guidance due to the Company’s ability to operate at higher operating
margins than anticipated, despite realizing a revenue shortfall.
Earnings before interest, taxes and depreciation and amortization
(“EBITDA”) for the year ended December 31, 2009 increased 5% to
$8,993,794 as compared to $7,988,873 for the same period in 2008.
Similar to the discussion above with respect to net income, the
increased EBITDA amount reflects the pre-tax exclusion of a one time non
operating charge, without which exclusion EBITDA for 2008 would have
The Company continues to demonstrate increasing financial strength
within its balance sheet reflecting improved liquidity, working capital
and debt to equity ratio as follows:
The Company’s cash on hand at December 31, 2009 was $5,498,448 as
compared to $2,473,733 at December 31, 2008.
The Company’s working capital increased to $8,946,330 at December 31,
2009, as compared to $5,886,000 at December 31, 2008, representing a
52% increase. The working capital amount for 2009 reflects the
dividend declared in the amount of $950,364.
The Company paid down $2,073,282 of its debt in 2009 and now has a
debt to equity ratio was .09 to 1 at December 31, 2009 as compared to
.18 to 1 at December 31, 2008.
Jack Rhian, President and Chief Executive Officer commented, “2009
results of operations demonstrated the significant earning power of our
businesses. Most impressive was our ability to deliver a 47% year over
year improvement in earnings with only a nominal improvement in revenue.
Based on our multi-year track record of improved earnings, we were
pleased to announce the Company’s first ever shareholder dividend in
December 2009, which was paid in January 2010. If we continue the trend
of generating positive cash flow and positive operational results as
realized in 2009, we will work to establish a recurring shareholder
During the fourth quarter of 2009, with earnings enhancement firmly in
place, we advised shareholders that management is refocusing attention
primarily towards top-line growth. After intense review of the current
and potential value of our Remote Patient Monitoring (“RPM”) portfolio
and communications offerings to our customers, AMAC is now clearly
focused on accelerating revenue growth with the same tenacity as we did
three years ago to significantly improve earnings.
The Company’s core growth objectives will be derived from the following
Increasing visibility and market expansion of our core PERS services
Establish multiple distribution channels to sell our medication
management solution MedSmart
Creating low-cost, high-touch AMAC owned vital signs and telehealth
Establish a universal point of entry for providers and caregivers to
access our entire RPM solutions portfolio
Furthering exploration of options to remain in the forefront as health
monitoring technology evolves
Within our TBCS Division:
Continuing our efforts to market our hospital solutions nationally
Expanding our offerings with pharmaceutical companies and clinical
Remaining focused on providing healthcare centric after hour answering
Enhancing our communications center infrastructure to support
clinical, nurse managed applications for the pharmaceutical industry
as well as our HSMS RPM offerings
Although the final details of the recently passed healthcare reform are
still subject to future implementing regulations, AMAC’s management is
optimistic that we will benefit from portions of the new legislation
because each of our offerings are a cost effective solution to a more
expensive and less effective service alternative. With tens of millions
of Americans receiving insurance benefits and with the growing pressure
on the Medicare system to do more with less dollars, we believe AMAC’s
offerings will receive greater recognition and adoption over the next
While we strongly believe that the totality of our solutions will allow
us to realize even greater success going forward, it is important to
understand that the Company’s positive outlook is based on multiple
initiatives and opportunities, each, on its own, has the potential to
add significant new revenue to our already profitable book of business”
The Company invites investors and others to listen to the earnings
conference call live over the Internet or by dial in via 877-407-9205 at
10:30 a.m. ET.
Log on to the web at the address above, and click on the audio link
or dial in 877-407-9205 to participate.
Following the conference call, the webcast will be available on the
VCall website at http://www.investorcalendar.com/IC/CEPage.asp?ID=156455.
The financial information presented in the webcast will also be
available at http://amac.com/press.cfm.
About American Medical Alert Corp.
AMAC is a healthcare communications company dedicated to the provision
of support services to the healthcare community. AMAC's product and
service portfolio includes Personal Emergency Response Systems (PERS)
and emergency response monitoring, electronic medication reminder
devices, disease management monitoring appliances and healthcare
communication solutions services. AMAC operates eight US based
communication centers under local trade names: HLINK OnCall, Long Island
City, NY, HLINK on Call West, Clovis NM, North Shore TAS, Port
Jefferson, NY, Live Message America, Audubon, NJ, ACT Teleservice,
Newington, CT and Springfield, MA, MD OnCall, Cranston RI, American
MediConnect and Phone Screen Chicago, IL to support the delivery of high
quality, healthcare communications.
Use of Non-GAAP Financial Information
In addition to the results reported in accordance with accounting
principles generally accepted in the United States (“GAAP”) included in
this press release, the Company has provided information regarding
certain non-GAAP financial measure. This measure is “earnings before
interest, taxes and depreciation and amortization (“EBITDA”)” and “Net
Income before Loss on Abandonment”. Such information is reconciled to
its closest GAAP measure in accordance with the Securities and Exchange
Commission rules and is included in the attached supplemental data.
Management believes that the non-GAAP financial measures used in this
press release is useful to both management and investors in their
analysis of the Company’s financial position and results of operations.
Management believes that EBITDA is a useful measure of the Company's
financial performance as it is an indicator of the Company's ability to
generate cash flow to make acquisitions, reinvest in new telehealth
products and liquidate liabilities. Management also uses EBITDA for
planning purposes to determine appropriate levels of operating and
capital investments. Management also believes reporting Net Income
before Loss on Abandonment more accurately reflects the performance of
the Company’s core operations and excludes any non-operational or
one-time events which may skew the analysis of management or outside
investors in evaluating the Company.
EBITDA and Net Income before Loss on Abandonment are non-GAAP financial
measures and although management and some members of the investment
community utilize it to measure financial performance, EBITDA and Net
Income before Loss on Abandonment should not be viewed as a substitute
for financial data prepared in accordance with GAAP or as a measure of
profitability. Additionally, the non-GAAP financial measure as presented
by AMAC may not be comparable to similarly titled measures reported by
Forward Looking Statements
This press release contains forward-looking statements that involve a
number of risks and uncertainties. Forward-looking statements may be
identified by the use of forward-looking terminology such as "may,"
"will," "expect," "believe," "estimate," "anticipate," "continue," or
similar terms, variations of those terms or the negative of those terms.
Important factors that could cause actual results to differ materially
from those indicated by such forward-looking statements are set forth in
the Company's filings with the Securities and Exchange Commission (SEC),
including the Company's Annual Report on Form 10-K, the Company's
Quarterly Reports on Forms 10-Q, and other filings and releases. These
include uncertainties relating to government regulation, technological
changes and product liability risks.
Statements of income for the three months and year ended December 31,
2009 and 2008 and balance sheets as of December 31, 2009 and 2008 are
AMAC SELECTED FINANCIAL DATA
Three Months Ended
Cost of Goods Sold
Selling, General & Administrative Costs
Loss on Abandonment
Other Expenses (Income)
Income before Provision for Income Taxes
Net Income per Share
Basic Weighted Average
Diluted Weighted Average
CONDENSED BALANCE SHEET
Fixed Assets – Net
LIABILITIES AND STOCKHOLDERS' EQUITY
Deferred Income Tax
Total Liabilities and Stockholders' Equity
Net Income before Loss on Abandonment for the year ended December
31, 2009 and 2008 reconciled to net income.
Loss on Abandonment
Net Income before Loss on Abandonment
Earnings before interest, taxes and depreciation and amortization
for the year ended December 31, 2009 and 2008 reconciled to net
A part of PrecisionIR Group, www.PrecisionIR.com
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