PHM Protech Home Medical Corp

Patient Home Monitoring (PHM) (TSX VENTURE:PHM), a profitable company focused on
rolling-up annuity-based healthcare service companies in the US and Canada,
today provided highlights of its financial results for the second quarter of
fiscal 2014.


FYQ2 2014 Highlights

Revenue



--  Revenue rose to $3.7 million, a 55% increase from the previous quarter
    and a 290% increase year over year.



Profitability



--  Net income rose to $556,628, a 290% increase from the previous quarter.
    (2) 
--  Adjusted earnings before interest, taxes, depreciation and amortization
    (EBITDA) including transactional and nonrecurring cost rose to $793,229,
    a 177% increase from the previous quarter.(3)  
--  Earnings per share (EPS) rose 205% from the previous quarter.(1) 



Balance Sheet 



--  $7.0 million in cash as of May 15th, 2014. 
--  $4.2 million in accounts receivable as of May 15th 2014. 
--  Acquired $1.12 million in home-based medical equipment as fixed assets
    fiscal year-to-date (October 1, 2014 to May 15th, 2014).



Cross-Selling and Mergers & Acquisitions



--  Cross Selling: Generated annualized revenue of $575,000 at 65%+ gross
    margins from new patient enrollment for the quarter. 
--  LOI for acquisition target signed in April 2014 on track for closing. 
--  Pipeline of 9 acquisition candidates moving toward term sheets and
    Letters of Intent (LOI). 
--  Secured initial commitment for a $5,000,000 debt facility for
    acquisition purposes.



Full results are available on sedar.com.

PHM is rolling-up a large and fragmented market of small, profitable businesses
providing healthcare products and services to chronically ill patients. The
companies are acquired for their technical and market expertise in certain
product and service lines, as well as their patient databases. Once acquired,
PHM works to offer these newly acquired services to its entire patient base,
thereby increasing revenue per patient and achieving organic post acquisition
revenue growth and profits. 


PHM also announced that Andrew Folmer, current Chief Financial Officer and
Interim President, has assumed the permanent position of President of the
Company.


"This quarter has illustrated the power of cross selling on PHM's
profitability," said Michael Dalsin, Chairman and CEO of PHM. "Early in the
quarter PHM acquired several companies in the southeast U.S., adding important
service lines and senior management talent. While it is still in the early
stages, PHM achieved an important milestone in generating high-margin services
patient enrollment through cross-selling efforts. While increasing revenues 55%,
profits grew 290%, reflecting the impact of generating this high gross margin
revenue on net profits. I want to congratulate the operational team, lead by
Andrew Folmer on a record quarter, both in terms of revenues and profit growth.
Because of these results, we have decided to permanently promote Andrew to
President of the Company. In the coming quarters, PHM's operational team will
continue to implement this core strategy of cross selling."


"On the acquisition front, PHM's M&A team continues to strengthen its pipeline
of potential acquisition targets" continued Mr. Dalsin. "We have seen another
quarter with high quarterly EPS growth of 205% in part as a result of
acquisition this quarter. PHM's balance sheet of over $7.0 million in cash, and
an initial commitment for a $5 million acquisition debt facility gives us the
potential to close several more earnings accretive deals in our pipeline
quickly."


About PHM

PHM is an acquisition-oriented, fast-growing and profitable company servicing
patients with heart disease and other chronic health conditions. PHM is focused
on acquiring companies in a highly fragmented and developing market of small
privately-held companies servicing chronically ill patients with multiple
disease states caused mainly by age and obesity. Because of the new and highly
fragmented nature of the market, PHM is actively identifying and evaluating
profitable, annuity-based companies to acquire at favorable prices for their
patient databases and technical expertise. PHM's post-acquisition organic growth
strategy is to increase annual revenue per patient by offering multiple services
to the same patient, consolidating the patient's services and making life easier
for the patient. The expected result is growing EPS with each acquisition and
growing revenue and profits from the cross selling efforts.


Neither the TSX Venture Exchange nor its Regulation Services Provider (as that
term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.  


(1) EPS and Net Profit does not include IFRS Fair Value of options, warrants
expense and stock based compensation. EPS growth was calculated using the
following information: 




                                                                      
Shares Outstanding Q1 2014         Shares Outstanding Q2 2014         
98,970,022                         128,752,044                        
                                                                      
Net Profit                         Net Profit                         
$140,297                           $556,628                           
                                                                      
EPS                                EPS                                
$0.0014                            $0.0043                            



(2) Net Profit does not include Stock Based Compensation or change in the IFRS
Fair Value of options and warrants expense. 


(3) Adjusted EBITDA is defined as EBITDA plus Stock Based Compensation.         
         


Forward-Looking Statements 

Information in this news release that is not current or historical factual
information may constitute forward-looking information within the meaning of
securities laws. Implicit in this information, particularly in respect of the
future outlook of PHM and anticipated events or results, are assumptions based
on beliefs of PHM's senior management as well as information currently available
to it. While these assumptions were considered reasonable by PHM at the time of
preparation, they may prove to be incorrect. Readers are cautioned that actual
results are subject to a number of risks and uncertainties, including the
availability of funds and resources to pursue operations, decline of
reimbursement rates, dependence on few payors, possible new drug discoveries, a
novel business model, dependence on key suppliers, granting of permits and
licenses in a highly regulated business, competition, difficulty integrating
newly acquired businesses, low profit market segments as well as general
economic, market and business conditions, and could differ materially from what
is currently expected. This press release refers non-GAAP and non-IFRS financial
measures that do not have standardized meaning prescribed by GAAP or IFRS. PHM's
presentation of these financial measures may not be comparable to similarly
titled measures used by other companies. These financial measures are intended
to provide additional information to investors concerning PHM's performance.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Patient Home Monitoring Corp.
Michael Dalsin
Chairman
(323) 253-3055
www.phmhometesting.com

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