PHM revenue increase is a result of the 2 acquisitions. Will be interesting to see how it all plays out.
PATIENT HOME MONITORING (PHM) ANNOUNCES EXECUTION OF LETTERS OF INTENT WITH ACQUISITION TARGETS
Patient Home Monitoring Corp. has executed letters of intent (LOIs) to acquire two companies. When these companies are combined with PHM, the result will be accretive to the income statement with 12-month trailing revenues in excess of $8.4-million (i), and annual adjusted earnings before interest, taxes, depreciation and amortization in excess of $1.3-million (i) subject to final due diligence. The acquisitions are also expected to increase organic growth in PHM's existing cardiology services portfolio.
PHM signed one LOI to acquire HHC of Florida, a company that delivers several products to patients requiring therapeutics for (1) organ transplant, (2) chemotherapy and (3) chronic respiratory disease, as well as in-home diagnostic devices through pharmacy locations throughout the United States. Many of HHC's patients also may benefit from PHM's Coumadin testing business. HHC primarily delivers its services and products through independent and intermediate chain retail pharmacies. PHM expects HHC to continue to expand by offering services and products in additional niches that require efficiencies in delivery.
PHM signed a second LOI with HeartHealthy Meals Inc., an on-line cardiology-focused content aggregation and social networking company offering access to articles, forums, products and services through its website for patients in the growing cardiology market. The website offers delivered heart-healthy meals and gives patients access to an on-line community. In addition to selling delivered heart-healthy meals, the on-line platform, due to launch as Hearthealth4me, will provide patients an opportunity to request information about additional services and products. PHM plans to continue to develop the forum for patients seeking information and solutions to their heart disease issues, thereby creating additional opportunities for revenue growth through lead generation.
PHM can execute these two acquisition opportunities with its current balance sheet and issue less than 10 per cent of its total common shares. PHM will also assume debt as part of the acquisition price. Closing the acquisitions will be subject to exchange review and approval, and final purchase agreements.
"With these acquisitions, PHM's services will now cover drug delivery, home monitoring, and access to information and advice, making us a complete patient home service business. The result will be healthier patients, lower costs and improved health care delivery," said Bob Kusher, chief executive officer of PHM. "We expect strong revenue growth of our services to continue as health care providers scale back budgets, and are being forced out of providing niche, high-value-added products and services."
(i) These revenue and adjusted EBITDA figures are unaudited, and may change subject to due diligence and closing procedures. They are intended only as an estimate of trailing 12-month revenue and adjusted EBITDA of the combined entities, and are not meant to convey forward-looking information. Adjusted EBITDA is a non-international financial reporting standard measure the company uses as an indicator of financial health, and excludes several items which may be useful in the consideration of the financial condition of the company, including interest expense, taxes, depreciation, amortization, stock-based compensation and owner compensation. |
