PHM Protech Home Medical Corp

Patient Home Monitoring Announces Record Revenues and Profits, 205% Increase in Earnings Per Share; Cross Selling and Organic Revenue Growth Continues to Improve

LOS ANGELES, CALIFORNIA--(Marketwired - May 21, 2014) - 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.

Patient Home Monitoring Corp.Michael DalsinChairman(323) 253-3055www.phmhometesting.com