American Medical Alert Corp. (NASDAQ: AMAC) a provider of healthcare communication services and advanced telehealth monitoring technologies, today announced operating results for the quarter and nine months ended September 30, 2009, the highlights of which are as follows:
- Company-wide net income increased approximately 61% for the three months ended September 30, 2009 as compared to same period last year and increased approximately 55% for the nine months ended September 30, 2009 as compared to same period last year.
- Company has built up cash on hand in excess of $5,500,000 at September 30, 2009 and now has working capital of approximately $8,900,000.
- Company executes agreement with Apria Healthcare Group Inc. to form a strategic alliance in which the two companies will collaborate to provide personal emergency response systems. Under the new agreement, AMAC will be Apria’s exclusive provider of PERS products and services.
Revenues for the quarter ended September 30, 2009, consisting primarily of monthly recurring revenues (MRR), increased 5% to $10,121,804 as compared to $9,671,087 for the same period in 2008. Net income for the quarter ended September 30, 2009 increased 61% to $744,145 or $.08 per diluted share as compared to $461,534 or $.05 per diluted share for the same period in 2008.
Revenues for the nine months ended September 30, 2009 increased 2% to $29,536,343, as compared to $28,846,153 for the same period in 2008. Net income for the nine months ended September 30, 2009 increased 55% to $2,125,780 or $0.22 per diluted share as compared to net income of $1,371,917 or $0.14 per diluted share for the previous year. Net Income for the trailing twelve months ended September 30, 2009 and 2008 was $2,193,464 and $1,689,252 respectively, representing an increase of 30%. Earnings before interest, taxes and depreciation and amortization (“EBITDA”) for the nine months ended September 30, 2009 increased 16% to $6,723,948 as compared to $5,780,627 for the same period in 2008. EBITDA for the trailing twelve months ended September 30, 2009 and 2008 was $8,045,690 and $7,611,341.
The Company continues to generate positive operating cash flow and at September 30, 2009 had a cash balance of $5,546,314, as compared to $2,473,733 at December 31, 2008. Along with this, the Company had working capital of $8,919,179 as of September 30, 2009, compared to $5,886,000 at December 31, 2008, representing a 52% increase. The Company also reduced its long-term debt by $1,518,282 during the period from December 31, 2008 to September 30, 2009.
The Company anticipates it will exceed its earnings guidance of $2,750,000 issued on July 30, 2009 by approximately 4% while revenue guidance of $40,750,000 is projected to fall short by approximately 2%. The adjustment to the revenue guidance is primarily the result in the delay of the commercial release of the MedSmart medication and management system. Due to the Company’s ability to operate at higher operating margins than anticipated, the Company is able to forecast greater earnings results despite the revenue shortfall.
Jack Rhian, AMAC’s Chief Executive Officer and President, explained, “The third quarter operating metrics including net earnings, EBITDA and cash flow further validate that our current book of recurring revenue is capable of generating substantial profitability. As we indicated last quarter, management’s primary focus is now directed at revenue enhancement.