American Medical Alert Corp. reports Q2 2009 results

Aug 11 2009

American Medical Alert Corp. (NASDAQ: AMAC) a provider of healthcare communication services and advanced telehealth monitoring technologies, today announced operating results for the quarter and six months ended June 30, 2009, the highlights of which are as follows:

• Company-wide net income increased approximately 52% for the six months ended June 30, 2009 as compared to same period last year.
• HSMS division records another new high with gross profit of approximately 59% for the three months ending June 30, 2009.
• Company has built up cash on hand in excess of $5,000,000 at June 30, 2009, which exceeds the Company’s total bank debt.

Revenues for the quarter ended June 30, 2009, consisting primarily of monthly recurring revenues (MRR), decreased nominally to $9,502,312 as compared to $9,539,321 for the same period in 2008. Net income for the quarter ended June 30, 2009 increased 33% to $608,385 or $.06 per diluted share as compared to $458,026 or $.05 per diluted share for the same period in 2008.

Revenues for the six months ended June 30, 2009 increased 1% to $19,414,539, as compared to $19,175,066 for the same period in 2008. Net income for the six months ended June 30, 2009 increased 52% to $1,381,635 or $0.14 per diluted share as compared to net income of $910,383 or $0.09 per diluted share for the previous year. Net Income for the trailing twelve months ended June 30, 2009 and 2008 was $1,910,853 and $1,650,647 respectively, representing an increase of 16%. Earnings before interest, taxes and depreciation and amortization (“EBITDA”) for the six months ended June 30, 2009 increased 15% to $4,428,102 as compared to $3,847,277 for the same period in 2008. EBITDA for the trailing twelve months ended June 30, 2009 and 2008 was $7,683,194 and $7,711,061.

The Company continues to generate positive operating cash flow and at June 30, 2009 had a cash balance of $5,047,160, as compared to $2,473,733 at December 31, 2008. Along with this, the Company had working capital of $7,957,254 as of June 30, 2009, compared to $5,886,000 at December 31, 2008, representing a 35% increase. The Company also reduced its long-term debt by $1,163,282 during the period from December 31, 2008 to June 30, 2009.

Jack Rhian, AMAC’s Chief Executive Officer and President, explained, “The results of the past six months of 2009 reflect management’s ability to deliver improved profitability to our shareholders. This profitability trend underlines the resilience of our business model and the capacity for increased profitability from new revenue going forward as revenue is projected to improve throughout the remainder of 2009.”

Rhian continued, "As indicated in the first quarter and through our guidance issued on July 30, 2009, as we move into the second half of 2009, management is concentrating on key selling and product development initiatives to improve short and long term top line growth. The Company has begun marketing its new MedSmart medication management system as well as continuing to focus on expansion opportunities within the remote patient monitoring space. As previously shared, the Company has recently executed several contracts for its hospital and clinical applications and clinical trial recruitment support services which are expected to positively impact revenue growth the second half of the year. Our business remains solid and we continue to generate excellent cash flow and maintain a strong financial position despite the uncertain economic environment. Our ability to generate significant levels of free cash flow will allow the Company to acquire additional RPM technology and support systems. We remain committed to implementing our strategy to strengthen our market position while carefully managing our costs.”