CardioNet, Inc. (NASDAQ:BEAT), a leading wireless medical technology company with a current focus on the diagnosis and monitoring of cardiac arrhythmias, today reported results for the first quarter ended March 31, 2011.
First Quarter 2011 Highlights
- Achieved gross profit of 60% on revenues of $34 million
- Generated positive EBITDA of $1.8 million in the first quarter 2011
- Improved operating results with a loss of $0.06 per diluted share, a 74% improvement over the first quarter 2010. On an adjusted basis, the loss per diluted share was $0.02, an 85% improvement over the first quarter 2010
- DSO remained stable at 77 days
- Monitored over 425,000 patients since inception
- Biotel integration progressing as planned
- Secured 9 new payor contracts during the quarter, covering over one million lives
- $43 million in cash and investments with no outstanding debt as of March 31, 2011
President and CEO Commentary
Joseph Capper, President and Chief Executive Officer of CardioNet, commented: “Our operating results for the first quarter 2011 continued to show improvement. We generated positive EBITDA and had a sequential increase in patient revenue based on strong demand for MCOT TM. Our results benefitted from the addition of Biotel, which accounted for approximately 10% of revenue in the quarter.“Cash collections remained strong despite the increased patient financial responsibility that is typical in the first quarter, given the annual resetting of patient co-pays and deductibles. Our DSO has stabilized as a result of the new systems and processes that we implemented in 2010 and we anticipate further improvement in DSO by year-end. “Our operating results in the first quarter demonstrate significant sequential and year-over-year improvement. We remain focused on achieving the Company’s goals for 2011, which include accelerating patient volume growth, delivering world-class customer service to our physicians and patients, expanding commercial reimbursement for the MCOT TM technology, launching our next generation MCOT TM system later this year and reducing our overall cost structure. Together, these initiatives will ultimately allow CardioNet to achieve profitability despite the challenging reimbursement environment. We will also continue to assess opportunities that will provide future growth. We have built a strong operational foundation and, with $43 million in cash and investments and no debt, we believe that we are well positioned to achieve these goals.” First Quarter Financial Results Revenue for the first quarter 2011 was $34.0 million, an increase of 6.9% compared to $31.8 million in the first quarter 2010. The increase in revenue was primarily due to the addition of Biotel Inc. For the three months ended March 31, 2011, payor revenue was comprised of 30% Medicare and 70% commercial, and patient volume was comprised of 49% Medicare and 51% commercial.