Net Income for the trailing twelve months ended March 31, 2009 and 2008 was $1,760,494 and $1,599,881, respectively.
Earnings before interest, taxes and depreciation and amortization (EBITDA) for the quarter ended March 31, 2009 increased 25% to $2,385,904 as compared to $1,906,085 for the same period in 2008. EBITDA for the trailing twelve months ended March 31, 2009 and 2008 was $7,582,188 and $7,618,919, respectively.
The company continues to generate positive operating cash flow and ended the quarter with a cash balance of $4,514,992, as compared to $2,473,733 at December 31, 2008. Along with this, the company had working capital of $7,064,263 as of March 31, 2009, compared to $5,886,000 at December 31, 2008, representing a 20% increase. The company also reduced its long-term debt by $808,282 during the period from December 31, 2008 to March 31, 2009.
Jack Rhian, American Medical Alert’s chief executive officer and president, explained, “The company’s management team continues to defy the current deep recessionary business conditions by turning in a record quarterly earnings result and the outlook for 2009 remains positive. The following represents some of the highlights from the successful execution of our business plan and operational strategies:
Our TBCS division reduced their cost of goods sold, as a percentage of TBCS gross revenue, by 5% as compared to the first quarter of 2008. Our consolidation efforts within this division also contributed to the overall decrease in SG&A.
Two of our TBCS business development efforts (Hospital and Clinical applications and PhoneScreen clinical trial support services) are coming through as envisioned and are expected to help improve our top line run rate during the second half of 2009.
Specifically, multiple hospital-based group practices which signed agreements at the beginning of 2009 are completing the implementation process and are commencing service. During this same period, our PhoneScreen team has executed a preferred provider agreement with a major pharmaceutical company. This agreement is long term in nature and is expected to become a recurring contributor for PhoneScreen beginning in the second half of the year.
Our HSMS team continues to operate at record profitability and is scheduled to release MedSmart with Event Reporting capability this June to healthcare providers and consumers. The product launch will include a new website with e-commerce capability, print advertising and a public relations campaign focused on the national impact of medication noncompliance within the healthcare system. The company has retained the services of Allison and Partners, a respected firm to execute its public relations initiative.”
Rhian continued, “Today, the telehealth landscape is undergoing resurgence; recent market entries and research commitments from well established medical device companies confirm the imperative for scalable and flexible monitoring solutions. AMAC’s Remote Patient Monitoring “RPM” technologies and national medical call center infrastructure are attracting a vast array of healthcare providers and consortiums that believe RPM is a necessary component of a prevention conscious, evidence based healthcare system. As technology drivers continue to define new opportunities for healthcare communication, AMAC is preparing to support the delivery of new RPM service offerings. This incremental revenue stream, added to our current recurring revenue base, is expected to allow us to deliver continued top and bottom line growth in 2009 and 2010.”
