Company Delivers Record Results
Raises Full-Year Guidance

MALVERN, Pa., July 25, 2018 (GLOBE NEWSWIRE) — BioTelemetry, Inc. (NASDAQ:BEAT), the leading remote and wireless medical technology company focused on the delivery of health information to improve quality of life and reduce cost of care, today reported results for the second quarter ended June 30, 2018.

Quarter Highlights

• Recognized highest quarterly revenue in the Company’s history of $101.4 million
• Exceeded 14% year over year organic revenue growth
• Achieved 24^th consecutive quarter of year over year revenue growth
• Realized GAAP net income attributable to BioTelemetry, Inc. of $10.4 million or 10.3% of revenue
• Realized record quarterly adjusted EBITDA of $29.1 million, or 28.7% of revenue
• Achieved $30.0 million of annualized synergies from the integration of LifeWatch with approximately $7.5 million of synergies in the quarter

President and CEO Commentary

Joseph H. Capper, President and Chief Executive Officer of BioTelemetry, Inc., commented: “The second quarter was exceptional as we generated the highest revenue, GAAP pre-tax income and adjusted EBITDA in the Company’s history.  These results exceeded our expectations, illustrating a strong competitive position and further validating our strategy.  Driving the more than 14% organic revenue growth was an 11% increase in MCT patient volume, a favorable payor mix, as well as our third consecutive quarter of over 20% growth in Research revenue.  Additionally, our adjusted EBITDA margin reached 28.7%, bolstered by strong top line growth and the $7.5 million of synergies realized in the quarter.  In less than twelve months post-acquisition, we have achieved our objective of $30 million of annualized synergies, making the integration of LifeWatch a tremendous success.

“We offer customers the most accurate and advanced technology, supported by the most productive team of sales professionals in our industry, which we expect will drive double digit MCT and extended Holter growth for the foreseeable future.  This increased volume, coupled with the Research momentum, gives us confidence that 2018 will be a record year for us.  As a result, we are revising our full-year outlook for revenue to be $392 million to $395 millionwith an adjusted EBITDA margin of approximately 26%.”

Second Quarter Financial Results

Revenue for the second quarter 2018 was $101.4 million compared to $58.1 million for the second quarter 2017, an increase of $43.2 million, or 74.4%.

Gross profit for the second quarter 2018 was $65.8 million, or 64.9% of revenue, compared to $36.0 million, or 61.9% of revenue, for the second quarter 2017.

On a GAAP basis, net income attributable to BioTelemetry, Inc. for the second quarter 2018 was $10.4 million, or $0.29 per diluted share, compared to net income of $1.7 million, or $0.05 per diluted share, for the second quarter 2017.

On an adjusted basis¹, net income attributable to BioTelemetry, Inc. for the second quarter 2018 was $16.3 million, or $0.46 per diluted share.  This compares to adjusted net income of $7.4 million, or $0.23 per diluted share, for the second quarter 2017.  This increase was attributable to the addition of LifeWatch, the organic revenue growth and synergies gained from the integration of LifeWatch.  The details regarding adjusted net income are included in the reconciliation tables included in this release.

¹ The Company believes that providing non-GAAP financial measures offers a meaningful representation of our performance, as we exclude expenses that are not necessary to support our ongoing business.  Please refer to our “Reconciliation of GAAP to Non-GAAP Financial Measures” in this release for additional information.

Conference Call

BioTelemetry, Inc. will host an earnings conference call on Wednesday, July 25, 2018, at 5:00 PM Eastern Time.  The call will be webcast on the investor information page of our website, www.gobio.com/investors/events.  The call will be archived on our website for two weeks.

About BioTelemetry

BioTelemetry, Inc. is the leading remote and wireless medical technology company focused on delivery of health information to improve quality of life and reduce cost of care.  We provide cardiac monitoring, mobile blood glucose monitoring, centralized medical imaging, and original equipment manufacturing that serves both the Healthcare and Clinical Research industries.  More information can be found at  www.gobio.com.

Cautionary Statement Regarding Forward-Looking Statements

This document includes certain forward-looking statements within the meaning of the “Safe Harbor” provisions of the Private Securities Litigation Reform Act of 1995 regarding, among other things, our growth prospects, the prospects for our products and our confidence in our future.  These statements may be identified by words such as “expect,” “anticipate,” “estimate,” “intend,” “plan,” “believe,” “promises” and other words and terms of similar meaning.  Examples of forward-looking statements include statements we make regarding our ability to increase demand for our products and services, to leverage our Mobile Cardiac Outpatient Telemetry platform to expand into new markets, to grow our market share, our expectations regarding revenue trends in our segments and the achievement of cost efficiencies through process improvements.  Such forward-looking statements are based on current expectations and involve inherent risks and uncertainties, including important factors that could delay, divert or change any of these expectations, and could cause actual outcomes and results to differ materially from current expectations.  These factors include, among other things: our ability to identify acquisition candidates, acquire them on attractive terms and integrate their operations into our business; our ability to educate physicians and continue to obtain prescriptions for our products and services; changes to insurance coverage and reimbursement levels by Medicare and commercial payors for our products and services; our ability to attract and retain talented executive management and sales personnel; the commercialization of new competitive products; our ability to obtain and maintain required regulatory approvals for our products, services and manufacturing facilities; changes in governmental regulations and legislation; our ability to obtain and maintain adequate protection of our intellectual property; acceptance of our new products and services; adverse regulatory action; interruptions or delays in the telecommunications systems that we use; our ability to successfully resolve outstanding legal proceedings; and the other factors that are described in “Part I; Item 1A.  Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2017.

We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise, except as may be required by law.

BioTelemetry, Inc.
Condensed Consolidated Statements of Operations
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BioTelemetry, Inc.
Summary Financial Data
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Summary Cash Flow Data
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Reconciliation of GAAP to Non-GAAP Financial Measures
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Use of Non-GAAP Financial Measures

In addition to the results prepared in accordance with generally accepted accounting principles in the United States, (“GAAP”), this press release also includes certain financial measures which have been adjusted and are not in accordance with generally accepted accounting principles (“Non-GAAP financial measures”).  These Non-GAAP financial measures include adjusted income from operations, adjusted net income attributable to BioTelemetry, Inc., adjusted net income per diluted share attributable to BioTelemetry, Inc. and adjusted EBITDA.  In accordance with Regulation G of the Securities and Exchange Commission, we have provided a reconciliation of these Non-GAAP financial measures with the most directly comparable financial measure calculated in accordance with GAAP.

These Non-GAAP financial measures are not intended to replace GAAP financial measures. They are presented as supplemental measures of our performance in an effort to provide our stakeholders better visibility into our ongoing operating results and to allow for comparability to prior periods as well as to other companies’ results.  Management uses these Non-GAAP financial measures to assess the financial health of our ongoing operating performance.  Management encourages our stakeholders to consider all of our financial measures and to not rely on any single financial measure to evaluate our performance.

Adjusted net income attributable to BioTelemetry, Inc. for the second quarter 2018 excludes other charges of $5.2 million driven by $2.2 million of expense related to the integration of LifeWatch, a $1.8 million reserve for a note receivable from a bankrupt customer, $0.8 million for patent litigation and $0.4 million of other expenses including legal and depreciation.  Adjusted net income for the second quarter 2018 also excludes $3.4 million of amortization expense related to LifeWatch intangibles and $0.3 million of interest related to a ruling on an arbitration demand filed against LifeWatch prior to the acquisition as well as an unrealized foreign exchange gain of $1.0 million associated with our uncertain tax positions.  By excluding expenses that are considered not necessary to support the ongoing business, are nonrecurring in nature or which limit year over year comparability, we believe these Non-GAAP financial measures offer a meaningful representation of our ongoing operating performance.  Included in these excluded items are transaction related expenses, primarily severance, legal and professional fees, legal fees related to patent litigation, costs related to restructuring programs aimed at streamlining operations and reducing future expense as well as other one-time items.  These excluded charges are not part of the ongoing operations, and therefore, not reflective of our core operations.  We view patent litigation as an extreme measure not typically required in our industry to protect a company’s intellectual property and which has not been common practice for us.  We commenced patent litigation proceedings after we uncovered specific evidence of four distinct cases of misappropriation and infringement.  We can choose to resolve the outstanding matters and terminate the expense at any time.  We also included the income tax effect of these adjustments.

Adjusted net income attributable to BioTelemetry, Inc. for the second quarter 2017 excludes $4.7 million of other charges resulting from $3.4 million of professional and legal fees related to the LifeWatch acquisition, $0.7 million of patent litigation expense and $0.6 million for other restructuring activities.  Adjusted net income for the second quarter 2017 also excludes a $0.9 million expense for a foreign currency option related to the acquisition of LifeWatch, the tax effect of all of the adjustments, as well as the impact from the utilization of our net operating loss carryforwards.

In addition to adjusted income from operations, adjusted net income attributable to BioTelemetry, Inc. and adjusted net income per diluted share attributable to BioTelemetry, Inc., we also present adjusted EBITDA.  This Non-GAAP financial measure excludes income taxes, interest, noncontrolling interest, other charges, other excluded items included in other income, depreciation and amortization and stock compensation expense.  EBITDA is a widely accepted financial measure which we believe our stakeholders use to compare our ongoing financial performance to that of other companies.  Adjusting our EBITDA for other charges and other one-time items is a meaningful financial measure as we believe it is an indication of our ongoing operations.  In addition, we also add back stock-based compensation expense because it is non-cash in nature.  Other companies in our industry may calculate adjusted EBITDA in a different manner.

BioTelemetry, Inc.