“Although results have improved, our stock price has clearly been under pressure particularly since the announcement of the civil investigative demand in August 2011. As a result, we were required by accounting guidance to take a non-cash goodwill impairment charge. This charge has no impact on the Company’s business operations or cash flow.
“2011 presented a number of challenges for the Company and the healthcare industry overall; however, we improved our year-over-year operating results and are even more excited about the future. With a number of operational improvements in place and the full commercialization of our next-generation MCOT TM device, we are confident that we can continue to enhance performance and strategically leverage our balance sheet.”
Fourth Quarter Financial Results
Revenue for the fourth quarter 2011 was $26.8 million, a decrease of 6.6% compared to $28.7 million in the fourth quarter 2010. Patient revenue decreased $3.9 million due to slightly lower MCOT TM volume which correlates to the lower volumes being experienced in physicians’ offices, partially offset by an increase in event and Holter volumes. Largely offsetting the patient revenue decline was the addition of Biotel, which generated revenue of $2.0 million. For the three months ended December 31, 2011, patient revenue was comprised of 36% Medicare and 64% commercial, and patient volume was comprised of 54% Medicare and 46% commercial.Gross profit for the fourth quarter 2011 decreased to $16.6 million, or 62.1% of revenue, compared to $16.7 million, or 58.3% of revenue, in the fourth quarter 2010. The increase in gross profit percentage was related to cost reduction initiatives implemented during the quarter. On a GAAP basis, operating expenses for the fourth quarter 2011 were $66.2 million, an increase of 210.7% compared to $21.3 million in the fourth quarter 2010. This increase was driven by a goodwill impairment charge of $46.0 million due to a suppressed market price which the Company believes is primarily a result of market reaction to the ongoing Department of Justice inquiry. Operating expenses on an adjusted basis declined by 11.1% compared to the prior year quarter, excluding $48.7 million in the fourth quarter 2011 and $1.6 million in the fourth quarter 2010 related to restructuring and other nonrecurring charges. The decrease in operating expenses was driven partially by the implementation of cost reductions in the quarter as well as a reduction in bad debt expense. These reductions were partially offset by the addition of Biotel’s operating expenditures in the quarter.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV