American Medical Alert Corporation Reports Strong Second Quarter 2008 Results.OCEANSIDE, N.Y. -- American Medical Alert Corp. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : AMAC AMAC Adults Molested As Children AMAC Assistance to Mine-Affected Communities AMAC Aircraft Monitor And Control AMAC Approximate Message Authentication Code AMAC American Military Arms Corporation AMAC Asset Management Assistance Center ) a provider of healthcare communication services and advanced telehealth monitoring technologies, today announced operating results for the quarter and six months ended June 30, 2008, the highlights of which are as follows: * Company-wide net income increased approximately 18% for the six months ended June 30, 2008 as compared to same period last year. * EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become continues to improve on a year over year basis as evidenced with the latest 13% increase through June 30, 2008. * Company balance sheet as of June 30, 2008 remains strong with working capital at approximately $3.9 million and debt to equity ratio The debt to equity ratio (D/E) is a financial ratio indicating the relative proportion of equity and debt used to finance a company's assets. It is equal to total debt divided by shareholders' equity. of .22 to 1. Revenues for the quarter ended June 30, 2008, consisting primarily of monthly recurring revenues (MRR MRR Model Railroader Magazine MRR Master Resale Rights MRR Maximum Rock'n'Roll (print zine) MRR Material Removal Rate MRR Monthly Recurring Revenue MRR Mean Reciprocal Rank MRR Mark Release Recapture ), increased 7% to $9,539,321 as compared to $8,898,806 for the same period in 2007. Net income for the quarter ended June 30, 2008 increased 12% to $458,026 or $.05 per diluted share as compared to $407,260 or $.04 per diluted share for the same period in 2007. Revenues for the six months ended June 30, 2008 increased 9% to $19,175,066, as compared to $17,601,642 for the same period in 2007. Net income for the six months ended June 30, 2008 increased 18% to $910,383 or $0.09 per diluted share as compared to a net income of $773,968 or $0.08 per diluted share for the previous year. Net Income for the trailing twelve months In commerce, the trailing twelve months (TTM) is a moving measurement (for example, an average or a sum) over the 12 previous months, using the most recent data available. Also sometimes known as last twelve months (LTM). ended June 30, 2008 and 2007 was $1,650,647 and $1,511,954 respectively, representing an increase of 9%. Earnings before interest, taxes and depreciation EBITD is an initialism or acronym for Earnings Before Interest, Taxes and Depreciation. See EBITDA. Some people find it useful to know this value for a business. and amortization ("EBITDA") for the six months ended June 30, 2008 increased 7% to $3,847,278 as compared to $3,579,732 for the same period in 2007. EBITDA for the trailing twelve months ended June 30, 2008 and 2007 was $7,711,062 and $6,851,362 respectively, a 13% increase. Jack Rhian, AMAC's Chief Executive Officer and President, explained, "The results of the past three and six months of 2008 support our Fiscal 2008 projections issued last week. Within our HSMS HSMS Hazardous Substance Management System HSMS Hierarchical Storage Management System HSMS High Speed Messaging Service (semiconductor equipment communications standard; associated with GEM/SECS) HSMS Hierarchical Storage Management Software division we are achieving excellent and consistent gross profitability. During the second quarter the Company was in the final stages of a system consolidation at two of our call center locations. As we enter the second half of 2008, we expect to realize improved profitability as a direct result of this TBCS TBCS The Bear Creek School TBCS The Best Case Scenario TBCS Tampa Bay Club Sport TBCS Traverse Bay Community School (Michigan) TBCS Thread-Based Composite System TBCS Tabora Beekeepers' Co-operative Society (Tanzania) operating consolidation initiative. With respect to revenue enhancement revenue enhancement An increase in revenues, especially by way of increased taxes. Revenue enhancement includes reducing taxpayer deductions and eliminating tax credits. , we plan to stay focused on our previously declared growth drivers that include our Walgreens Ready Response PERS a. 1. Light blue; grayish blue; - a term applied to different shades at different periods. program, Medication Management and our TBCS Patient Appointment Concierge Solutions and Clinical Trials Recruitment initiatives." The Company invites investors and others to listen to the conference call live over the Internet or by dialing in to 877-407-0782 at 10:00 a.m. ET. [TABLE OMITTED] About American Medical Alert Corp. AMAC is a healthcare communications company dedicated to the provision of support services support services Psychology Non-health care-related ancillary services–eg, transportation, financial aid, support groups, homemaker services, respite services, and other services to the healthcare community. AMAC's product and service portfolio includes Personal Emergency Response Systems (PERS) and emergency response monitoring, electronic medication reminder devices, disease management monitoring appliances and healthcare communication solutions services. AMAC operates nine communication centers under local trade names: H-LINK OnCall, Long Island City, NY and Clovis NM, North Shore TAS TAS abbr. 1. telephone answering system 2. true airspeed , Port Jefferson, NY, Live Message America, Audubon, NJ, ACT Teleservice, Newington, CT and Springfield, MA, MD OnCall, Cranston RI and Capitol Medical Bureau Rockville, MD, American MediConnect and Phone Screen Chicago, IL to support the delivery of high quality, healthcare communications. Use of Non-GAAP Financial Information In addition to the results reported in accordance with accounting principles generally accepted in the United States ("GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ") included in this press release, the Company has provided information regarding certain non-GAAP financial measure. This measure is "earnings before interest, taxes and depreciation and amortization ("EBITDA")". Such information is reconciled to its closest GAAP measure in accordance with the Securities and Exchange Commission rules Securities and Exchange Commission Rules Rules enacted by the SEC to assist in the regulation of US financial markets. and is included in the attached supplemental data. Management believes that the non-GAAP financial measure used in this press release is useful to both management and investors in their analysis of the Company's financial position and results of operations. Management believes that EBITDA is a useful measure of the Company's financial performance as it is an indicator of the Company's ability to generate cash flow to make acquisitions, reinvest in new telehealth products and liquidate liabilities. Management also uses EBITDA for planning purposes to determine appropriate levels of operating and capital investments. EBITDA is a non-GAAP financial measure and although management and some members of the investment community utilize it to measure financial performance, EBITDA should not be viewed as a substitute for financial data prepared in accordance with GAAP or as a measure of profitability. Additionally, the non-GAAP financial measure as presented by AMAC may not be comparable to similarly titled measures reported by other companies. Forward Looking Statements This press release contains forward-looking statements that involve a number of risks and uncertainties. Forward-looking statements may be identified by the use of forward-looking terminology such as "may," "will," "expect," "believe," "estimate," "anticipate," "continue," or similar terms, variations of those terms or the negative of those terms. Important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are set forth in the Company's filings with the Securities and Exchange Commission (SEC), including the Company's Annual Report on Form 10-K, the Company's Quarterly Reports on Forms 10-Q, and other filings and releases. These include uncertainties relating to government regulation, technological changes, costs relating to ongoing FCC (1) (Federal Communications Commission, Washington, DC, www.fcc.gov) The U.S. government agency that regulates interstate and international communications including wire, cable, radio, TV and satellite. The FCC was created under the U.S. remediation efforts, our expansion plans, and product liability risks. Statements of income for the three and six months ended June 30, 2008 and 2007 and balance sheets as of June 30, 2008 and December 31, 2007 are attached. AMAC SELECTED FINANCIAL DATA [TABLE OMITTED] Earnings before interest, taxes and depreciation and amortization for the six months and trailing twelve months ended June 30, 2008 and 2007. [TABLE OMITTED] |
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