Stocks & Investing
Stocks and Investing
Stocks and Investing
Tue, March 1, 2011 PATIENT HOME MONITORING ANNOUNCES FIRST QUARTER 2011 FINANCIAL RESULTS
SAN FRANCISCO, CA, March 1 /CNW/ - Patient Home Monitoring (PHM) (TSXV:PHM), a company focused on in-home cardiology healthcare services, today announced results for the first fiscal quarter of 2011, ended December 31, 2010.
Q1 2011 and Subsequent Highlights
- Increased revenue-generating tests performed by over 400%
- Reported gross margins of 34.8% while transitioning out of start-up phase
- Narrowed operating loss significantly on the path to a self-sufficient revenue level
- Executed a facilities agreement for a point-of-care (POC) Coumadin clinic on the campus of a major regional hospital system in Southern California
- Hired a sales staff to drive core business offerings
- Launched initiatives to increase revenue through acquisitions and strategies to penetrate similar niche markets with little investment or expense
"I am energized about reporting our first full quarter of commercial operations," said Ed Berenblum, CEO of Patient Home Monitoring. "We spent 2010 in start-up mode and I am confident that we built a strong infrastructure for growth. This quarter is the first that reflects PHM's ability to experience strong and steady growth. We continue to leverage our main business model, the systematic enrollment of patients served by large cardiology groups, to create revenue opportunities for physicians and additional partnership opportunities for PHM."
"I want to highlight a few details of this quarter that will provide clarity around the PHM business," noted Mr. Berenblum. "First, we more than quadrupled the amount of revenue-generating tests performed from last quarter to this quarter. We performed 3850 patient INR tests this quarter, while we had performed 719 patient INR tests during the start-up mode, which ended on September 30th."
"Second, our gross margin was 34.8%. This is a strong gross margin for our first quarter in business, and our operational team should be proud. This is also a first step towards our goal to achieve margins closer to 50% as the business scales and matures."
"Third, PHM's patient self testing (PST) business is annuity-based. Most patients we add are expected to remain testing with PHM for years. While we have incurred a loss this period, I expect that as we continue to grow, this loss will narrow to the point where PHM is a self-sufficient business."
"Finally, while I expect that our core PST business model will grow steadily, producing strong cash flow and significant shareholder value over time, I am also seeing other potential growth opportunities in the market. I believe we can explore these exciting revenue opportunities with minimal investment and expense."
"We are finding other market niches which could be synergistic with our current business model and operating platform. While my focus will continue to be on our core PST model, there are several areas of opportunity that we are going to examine as a way to enhance our business in the immediate future. For example, we believe that point-of-care Coumadin clinics may provide an opportunity to expand our reach to patients and physicians. We announced our first deal last week and are currently considering additional opportunities in this area. We are exploring alternative avenues for securing private insurance contracts, allowing us to enroll more patients from existing accounts. We are evaluating strategies to penetrate the small physician market. Lastly, we are considering ways to leverage our relationship with profitable companies that operate in our market and provide complimentary services to cardiologists and cardiac patients."
For complete financial results, please see our filings at [ www.sedar.com ].
About PHM
PHM is a healthcare services company focused on providing in-home testing for patients on blood thinner medications such as Coumadin or warfarin. PHM's unique value proposition, for cardiology groups that manage patients on Coumadin, focuses on systemization to enroll patients in PST. This approach creates an opportunity for physician groups to operate more efficiently, increasing revenue to their clinic while providing a higher standard of care for patients.
Information in this news release that is not current or historical factual information may constitute forward-looking information within the meaning of securities laws. Implicit in this information, particularly in respect of the future outlook of PHM and anticipated events or results, are assumptions based on beliefs of PHM's senior management as well as information currently available to it. While these assumptions were considered reasonable by PHM at the time of preparation, they may prove to be incorrect. Readers are cautioned that actual results are subject to a number of risks and uncertainties, including the availability of funds and resources to pursue operations, decline of reimbursement rates, dependence on few payors, possible new drug discoveries, a novel business model, dependence on key suppliers, granting of permits and licenses in a highly regulated business, competition, low profit market segments as well as general economic, market and business conditions, and could differ materially from what is currently expected.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
