A recollection of important corporate highlights
SOMERSET, NJ–(Marketwired – Jan 18, 2017) – MTBC (NASDAQ: MTBC), a leading provider of proprietary, cloud-based electronic health records, practice management and mHealth solutions, is pleased to issue an in-depth year-end review of corporate accomplishments for 2016, as well as offer an outlook for what the Company expects for 2017.
MTBC employs a tactical acquisition-based growth strategy. In the 12 months of 2016, the Company successfully completed four important acquisitions, including that of MediGain, LLC, a Texas-based medical billing company, and its subsidiary, Millennium Practice Management Associates, LLC. The MediGain acquisition, which closed in October, is MTBC’s most recent and largest acquisition to-date. Incremental profits of this transaction are expected to significantly exceed the cost of capital, and management expects this transaction be accretive to shareholders in 2017.
“2016 was an exciting year for MTBC, ripe with strategic milestones and new opportunities,” said MTBC President Stephen Snyder. “The resulting acquisitions have allowed MTBC to expand its client base and will allow us to show significant revenue growth in 2017.”
Organic Growth and Important Clients
MTBC added 76 new clients during 2016, the largest of which was St. Anthony’s Hospital with over 122 providers. In the fourth quarter of 2016 alone, the Company added 35 new clients which, when fully deployed, will generate over $1 million a year of revenue, marking a record quarter in terms of sales activity.
The Company also launched a unique Client Loyalty Program to recognize and reward all the physicians, practices and health organizations who contribute to MTBC’s success. Through this program, 50 MTBC clients became shareholders.
“We greatly value our clients and their support of our corporate endeavors to facilitate affordable, quality healthcare,” says Snyder. “We are the first healthcare IT company to offer a loyalty program of this nature, and the positive feedback we have received thus far validates client confidence in our model, services and company.”
- Reported four consecutive quarters of positive Adjusted EBITDA (Q4 2015 through Q3 2016)
- Completed its first financing using a “shelf registration” statement, selling $1.6 million of additional Series A Preferred Stock
- Repurchased additional shares of common stock through a stock buyback program, bringing the total to 745,000 shares repurchased since November 2015
- Paid 12 monthly dividends to Series A Preferred Stockholders
“We were pleased to report four straight quarters of positive Adjusted EBITDA, which for the most recent quarter (Q3) was $130,000, or 2.4% of revenue,” says MTBC Chief Financial Officer Bill Korn. “We are beginning 2017 with refreshed synergies from our latest acquisition, a strong team of global professionals, and proprietary technology that positions us to continue this growth trend.”
MTBC’s success in the healthcare IT industry was once again validated by a number of prestigious accolades, including its fifth time to receive the Deloitte Technology Fast 500 award; and its third Surescripts’ “White Coat of Quality” award for clinical quality excellence in e-Prescribing.
Remaining true to its roots in technology, MTBC introduced a number of innovative products to the market, including the Electronic Prescribing app for the Apple smartwatch. MTBC’s Apple Watch app is one of eight apps in the Company’s mHealth suite. Among other features, the app allows healthcare providers to view patient refill requests and inbound communications, and then leverage iRx to authorize refills, write new prescriptions and access patients’ medication — all from the convenience of their Apple Watch.
MTBC also launched the free e-Prescribing solution to physicians impacted by New York’s “I-STOP” law, which requires that all prescriptions be issues electronically; and other mobile health apps.
MTBC also successfully consolidated a number of global operational facilities to reduce overall general and administrative expenditures. This was further supported by initiatives to reduce dependence on subcontractors and third-party software, eliminating leases of expensive space from acquisitions, and utilizing the Company’s offshore resources.
Additionally, the Company expanded its Asia-based team to additional countries with talented cost-effective workforces.
Going Forward — Plans for 2017
Building on the momentum of 2016, MTBC has set several key objectives for 2017, including the launch of inventive, disruptive products that will help clients navigate the changing federal healthcare policy.
Products ready for launch in the first quarter of 2017 include a comprehensive Accountable Care Organizations (ACO) analytics platform; a reinvented new Electronic Health Record platform; and a solution to efficiently and effectively manage and maintain enrollments for carriers, benefit administrators and groups.
Furthermore, MTBC is ramping up its business development activities through a seasoned onshore team acquired as part of the MediGain acquisition. This expansion will augment the Company’s organic growth model that garnered significant traction in 2016.
Additionally, the consolidation of its global operational facilities will further reduce overall general and administrative expenditures in 2017. MTBC will continue to reduce its dependence on subcontractors and third-party software, transferring work to its dedicated teams worldwide. The Company will also benefit from moving out of expensive leased space from acquisitions.
“We had several impactful and defining achievements in 2016, and we expect to maintain this pace in the upcoming year. We will continue investing in new product developments that are expected to be accretive to shareholders in 2017 and years to come, and our company looks forward to building on the success we have created,” said MTBC President Stephen Snyder.
MTBC is a healthcare information technology company that provides a fully integrated suite of proprietary web-based solutions, together with related business services, to healthcare providers practicing in ambulatory care settings. Our integrated Software-as-a-Service (or SaaS) platform helps our customers increase revenues, streamline workflows and make better business and clinical decisions, while reducing administrative burdens and operating costs. MTBC’s common stock trades on the NASDAQ Capital Market under the ticker symbol “MTBC,” and its Series A Preferred Stock trades on the NASDAQ Capital Market under the ticker symbol “MTBCP.”
For additional information, please visit our website at www.mtbc.com.
This press release contains various forward-looking statements within the meaning of the federal securities laws. These statements relate to anticipated future events, future results of operations or future financial performance. In some cases, you can identify forward-looking statements by terminology such as “may,” “might,” “will,” “should,” “intends,” “expects,” “plans,” “goals,” “projects,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” or “continue” or the negative of these terms or other comparable terminology.
Our operations involve risks and uncertainties, many of which are outside our control, and any one of which, or a combination of which, could materially affect our results of operations and whether the forward-looking statements ultimately prove to be correct. Forward-looking statements in this press release include, without limitation, statements reflecting management’s expectations for future financial performance and operating expenditures, expected growth, profitability and business outlook, increased sales and marketing expenses, and the expected results from the integration of our acquisitions.
These forward-looking statements are only predictions, are uncertain and involve substantial known and unknown risks, uncertainties and other factors which may cause our (or our industry’s) actual results, levels of activity or performance to be materially different from any future results, levels of activity or performance expressed or implied by these forward-looking statements. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all of the risks and uncertainties that could have an impact on the forward-looking statements, including without limitation, risks and uncertainties relating to: the Company’s ability to manage growth; integrate acquisitions; effectively migrate and keep newly acquired customers and other important risks and uncertainties referenced and discussed under the heading titled “Risk Factors” in the Company’s filings with the Securities and Exchange Commission.
The statements in this press release are made as of the date of this press release, even if subsequently made available by the Company on its website or otherwise. The Company does not assume any obligations to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.
This press release is for information purposes only, and does not constitute an offer to sell or solicitation of an offer to buy, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of such state or jurisdiction.