American Medical Alert Corp. (NASDAQ: AMAC) a provider of
healthcare communication services and advanced telehealth
monitoring technologies, today announced operating results for the
quarter ended March 31, 2008, the highlights of which are as
follows: Company-wide net income increased 23% for the three months
ended March 31, 2008 as compared to same period last year. Health
Safety and Monitoring Services (HSMS) segment revenue increased by
approximately 18% for the three months ended March 31, 2008 as
compared to same period last year, led by the Walgreens Ready
Response� program. Company balance sheet as of March 31, 2008
remains strong with working capital at approximately $4.0 million
and debt to equity ratio of .24 to 1. New Mexico call center now
completed and operational. Revenues for the quarter ended March 31,
2008, consisting primarily of monthly recurring revenues (MRR),
increased 11% to $9,635,745 as compared to $8,702,836 for the same
period in 2007. Net income for the quarter ended March 31, 2008
increased 23% to $452,357 or $0.05 per diluted share compared to
$366,708 or $0.04 per diluted share for the same period in 2007.
Net Income for the trailing twelve months ended March 31, 2008 and
2007 was $1,599,881 and $1,349,470, respectively. Earnings before
interest, taxes and depreciation and amortization (�EBITDA�) for
the quarter ended March 31, 2008 increased 10% to $1,906,085 as
compared to $1,730,682 for the same period in 2007. EBITDA for the
trailing twelve months ended March 31, 2008 and 2007 was $7,618,919
and $6,413,231, respectively, a 19% increase. Jack Rhian, AMAC�s
Chief Executive Officer and President, explained, �Our HSMS
division led the way this quarter with a respectable 18% increase
in revenue. This revenue derived from a multifaceted business
channel expansion strategy that included the Walgreens Ready
Response direct to consumer program, introduction of our enhanced
senior community living product line, Resident-Link, and an overall
increase in total subscribers originating from our core PERS
customer base. Of equal importance requiring recognition was our
focus on our business process improvement initiatives which
resulted in a solid reduction in the cost of goods sold within that
division. As we continue to execute on the current growth
initiatives and introduce MedSmart (our new medication dispensing
and management product) later this year, we believe our HSMS group
will continue to deliver excellent results going forward.� Rhian
continued, �For our TBCS division, operating results for the
quarter were adversely impacted because of certain one time
additional expenses incurred relating to investment in our
division-wide operating consolidation. With a majority of our
consolidation plan complete, we fully expect to replicate the cost
saving achievements experienced within our HSMS division in TBCS
throughout the remainder of 2008. We remain fully committed to
demonstrate TBCS revenue enhancement primarily through internal
driven sales and marketing. These anticipated operational
achievements provide ample opportunity to attain even greater
company-wide performance as both the HSMS and TBCS divisions
simultaneously deliver growth and increased profitability.� The
Company plans to issue formal 2008 full year guidance in July.
Webcast Information The Company invites investors and others to
listen to the earnings conference call live over the Internet or by
dial in at 10:30 a.m. ET. What: American Medical Alert Corp. First
Quarter Results When: Tuesday May 13, 2008 10:30 a.m. ET Where:
http://www.investorcalendar.com/IC/CEPage.asp?ID=129701 How: Log on
to the web at the address above, and click on the audio link or
dial in 877-407-0782 to participate. About American Medical Alert
Corp. AMAC is a healthcare communications company dedicated to the
provision of support services to the healthcare community. AMAC's
product and service portfolio includes Personal Emergency Response
Systems (PERS) and emergency response monitoring, electronic
medication reminder devices, disease management monitoring
appliances and healthcare communication solutions services. AMAC
operates nine communication centers under local trade names: H-LINK
OnCall, Long Island City, NY and Clovis NM, North Shore TAS, Port
Jefferson, NY, Live Message America, Audubon, NJ, ACT Teleservice,
Newington, CT and Springfield, MA, MD OnCall, Cranston RI and
Capitol Medical Bureau Rockville, MD, American MediConnect and
Phone Screen Chicago, IL to support the delivery of high quality,
healthcare communications. Use of Non-GAAP Financial Information In
addition to the results reported in accordance with accounting
principles generally accepted in the United States (�GAAP�)
included in this press release, the Company has provided
information regarding certain non-GAAP financial measure. This
measure is �earnings before interest, taxes and depreciation and
amortization (�EBITDA�)�. Such information is reconciled to its
closest GAAP measure in accordance with the Securities and Exchange
Commission rules and is included in the attached supplemental data.
Management believes that the non-GAAP financial measure used in
this press release is useful to both management and investors in
their analysis of the Company�s financial position and results of
operations. Management believes that EBITDA is a useful measure of
the Company's financial performance as it is an indicator of the
Company's ability to generate cash flow to make acquisitions,
reinvest in�new telehealth products and liquidate liabilities.
Management also uses EBITDA for planning purposes to determine
appropriate levels of operating and capital investments. EBITDA is
a non-GAAP financial measure and although management and some
members of the investment community utilize it to measure financial
performance, EBITDA should not be viewed as a substitute for
financial data prepared in accordance with GAAP or as a measure of
profitability. Additionally, the non-GAAP financial measure as
presented by AMAC may not be comparable to similarly titled
measures reported by other companies. Forward Looking Statements
This press release contains forward-looking statements that involve
a number of risks and uncertainties. Forward-looking statements may
be identified by the use of forward-looking terminology such as
"may," "will," "expect," "believe," "estimate," "anticipate,"
"continue," or similar terms, variations of those terms or the
negative of those terms. Important factors that could cause actual
results to differ materially from those indicated by such
forward-looking statements are set forth in the Company's filings
with the Securities and Exchange Commission (SEC), including the
Company's Annual Report on Form 10-K, the Company's Quarterly
Reports on Forms 10-Q, and other filings and releases. These
include uncertainties relating to government regulation,
technological changes, costs relating to ongoing FCC remediation
efforts, our expansion plans, and product liability risks.
Statements of income for the three months ended March 31, 2008 and
2007 and balance sheets as of March 31, 2008 and December 31, 2007
are attached. AMAC SELECTED FINANCIAL DATA � � 3/31/2008 3/31/2007
� Revenues $ 9,635,745 $ 8,702,836 � Net Income $ 452,357 $ 366,708
� Net Income per Share Basic $ 0.05 $ 0.04 Diluted $ 0.05 $ 0.04 �
Basic Weighted Average Shares Outstanding 9,406,070 9,204,178 �
Diluted Weighted Average Shares Outstanding 9,698,665 9,578,266
CONDENSED BALANCE SHEET � � March 31, December 31, 2008 2007
(Unaudited) ASSETS � Current Assets $ 9,154,017 $ 8,672,362 Fixed
Assets � Net 10,815,038 10,799,313 Other Assets 15,338,615
15,481,546 � � Total Assets $ 35,307,670 $ 34,953,221 � LIABILITIES
AND STOCKHOLDERS� EQUITY � Current Liabilities $ 5,157,905 $
5,070,893 Deferred Income Tax 937,000 947,000 Long-term Debt
4,310,117 4,694,316 Long-term portion of capital lease 21,455
32,425 Other Liabilities 559,520 537,922 � � Total Liabilities $
10,985,997 $ 11,282,556 � Stockholders� Equity � 24,321,673 �
23,670,665 Total Liabilities and Stockholders� Equity $ 35,307,670
$ 34,953,221 Earnings before interest, taxes and depreciation and
amortization for the three months and trailing twelve months ended
March 31, 2008 and 2007. � � Add: � � Less: � 3/31/08 12/31/2007
Subtotal 3/31/2007 Total � Net Income 452,357 1,514,232 1,966,589
366,708 1,599,881 Add Backs: Taxes 315,000 1,146,000 1,461,000
277,000 1,184,000 Interest 102,055 481,166 583,221 126,515 456,706
Depreciation & Amort. 1,036,673 4,302,118 5,338,791 960,459
4,378,332 � � EBITDA 1,906,085 7,618,919 � � Add: Less: 3/31/07
12/31/2006 Subtotal 3/31/2006 Total � Net Income 366,708 1,262,529
1,629,237 279,767 1,349,470 Add Backs: Taxes 277,000 869,000
1,146,000 238,000 908,000 Interest 126,515 394,613 521,128 62,042
459,086 Depreciation & Amort. 960,459 3,515,262 4,475,721
779,046 3,696,675 � � EBITDA 1,730,682 6,413,231
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