CardioNet, Inc. (NASDAQ:BEAT), the leading wireless medical technology and research services 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, 2012.
President and CEO Commentary
- Generated positive adjusted EBITDA for the fourth quarter and full year 2012
- Experienced increased patient volume year over year
- Completed acquisition of Cardiocore Lab, Inc., a leading research services business
- Completed acquisition of ECG Scanning and Medical Services, Inc., a cardiac monitoring company
- Introduced CardioNet’s new wireless event device, wEvent TM
- Reduced DSO to 56 days, a 19 day improvement compared to year end 2011
- $18.3 million in cash and no debt as of December 31, 2012
Joseph Capper, President and Chief Executive Officer of CardioNet, commented: “2012 was a pivotal year for CardioNet, capped by a solid fourth quarter performance with positive adjusted EBITDA and revenue growth. The Company had several significant achievements this year, including the successful completion of two acquisitions, which provided scale and diversification. Our research services business, bolstered by the acquisition of Cardiocore in August, contributed strong results for the quarter, as evidenced by a shift in our revenue to 17% from research as compared to 1% in the fourth quarter 2011. As we have previously stated, we view the clinical research market as a significant avenue for growth.
“In our patient services segment, volume increased year over year, aided by the acquisition of ECG Scanning early in the year. During the fourth quarter, we launched the
, our wireless event monitor, as part of our “CardioNet Comprehensive” initiative, demonstrating our focus on offering the most extensive suite of cardiac outpatient monitoring solutions in the industry. We have also aligned the sales force compensation structure to facilitate this initiative. We have seen a positive market response as we continue to grow our prescribing physician base. We believe this strategy will allow us to increase our market share and grow revenue.
“As we continue our efforts to grow the business, we have not lost focus on gaining efficiencies, improving operations or containing costs, as evidenced by the reduction in the core business’ cost structure. Over the past three years, we have removed more than $30 million of expense, resulting in a more efficient and focused organization. As part of our operational improvements, we now offer MCOT
patient monitoring through centers on both coasts, providing better service to our patients.
“Despite the investments and the acquisitions made this year, the Company continues to maintain a strong balance sheet with over $18 million in cash and no debt. Excluding acquisitions, the Company was cash flow neutral for the year, despite capital expenditures and the shareholder and patent litigation settlements. This enabled us to reduce our DSO to 56 days, a significant reduction compared to the prior year and on par with other health care providers. With our strong balance sheet, more efficient operations and diversified business model, we are building an organization that is poised for growth.”