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 fourth quarter and full year-ended December 31, 2011.
- Achieved positive adjusted EBITDA for the fourth quarter and full year 2011
- Reduced quarter-end DSO to 75 days
- Reached an agreement to settle shareholder litigation
- Implemented over $7 million of annualized cost reductions
- Launched next-generation MCOT TM device
- Opened west coast monitoring location
- Secured 52 new payor contracts covering over 10 million lives
- Completed Biotel integration and generated positive EBITDA contribution
- $46.5 million in cash and investments as of December 31, 2011, with no outstanding debt
President and CEO Commentary
Joseph Capper, President and Chief Executive Officer of CardioNet, commented: “During the fourth quarter, we continued to successfully execute on our operational initiatives as evidenced by the positive adjusted EBITDA generated for the quarter and full year 2011. We launched our next-generation MCOT TM device, implemented approximately $7.5 million of annualized cost reductions, reached an agreement to settle the outstanding class action litigation and opened the west coast monitoring facility. We will ramp up our activity in this new facility over the next three months and expect to be fully operational in the second quarter. Given this significant progress, we are now in a far better position to capitalize on a variety of growth opportunities.“As an example, we recently announced the purchase of ECG Scanning & Medical Services, Inc. (“ECG Scanning”), a $7 million cardiac monitoring company focused on event, Holter and pacemaker monitoring. The acquisition is expected to be accretive in the first year and improve the Company’s position in the cardiac monitoring market by leveraging our infrastructure and ECG Scanning’s customer relationships.