BioTelemetry, Inc.

CIK:0001574774|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Income Statement [Abstract]
Revenue from Contract with Customer, Excluding Assessed Tax	$ 114,655	$ 111,291	$ 317,093	$ 327,073
Revenue Not from Contract with Customer, Other		0	9,702	0
Revenue	114,655	111,291	326,795	327,073
Cost of revenue	45,668	41,952	125,773	122,716
Gross profit	68,987	69,339	201,022	204,357
Operating expenses:
General and administrative	32,757	29,651	95,737	87,845
Sales and marketing	11,652	12,572	35,619	37,807
Credit loss expense	6,465	5,858	18,651	16,385
Research and development	3,039	3,661	9,306	10,526
Other charges	3,186	2,598	10,273	7,902
Total operating expenses	57,099	54,340	169,586	160,465
Income from operations	11,888	14,999	31,436	43,892
Other expense:
Interest expense	(902)	(2,338)	(4,711)	(7,358)
Loss on equity method investments	0	(65)	0	(251)
Other non-operating expense, net	(312)	(845)	(781)	(1,813)
Total other expense, net	(1,214)	(3,248)	(5,492)	(9,422)
Income before income taxes	10,674	11,751	25,944	34,470
Provision for income taxes	(3,960)	(3,468)	(9,840)	(6,202)
Net income	$ 6,714	$ 8,283	$ 16,104	$ 28,268
Net income per common share:
Basic (in dollars per share)	$ 0.20	$ 0.24	$ 0.47	$ 0.83
Diluted (in dollars per share)	$ 0.18	$ 0.23	$ 0.44	$ 0.78
Weighted average number of common shares outstanding:
Basic (in shares)	34,321	33,908	34,267	33,885
Dilutive common stock equivalents (in shares)	2,303	2,360	2,362	2,560
Diluted (in shares)	36,624	36,268	36,629	36,445

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Statement of Cash Flows [Abstract]
Net Income (Loss) Available to Common Stockholders, Basic	$ 16,104	$ 28,268
OPERATING ACTIVITIES
Net income	16,104	28,268
Adjustments to reconcile net income to net cash provided by operating activities:
Credit loss expense	18,651	16,385
Depreciation and amortization	32,882	30,508
Stock-based compensation	11,080	9,662
Accretion of debt discount	735	932
Deferred income taxes	6,983	5,021
Change in fair value of acquisition-related contingent consideration	3,060	(1,720)
Other non-cash items	335	(105)
Changes in operating assets and liabilities:
Healthcare and other accounts receivable	(20,160)	(34,637)
Inventory	200	934
Prepaid expenses and other assets	(2,921)	(3,493)
Accounts payable	(2,969)	640
Accrued and other liabilities	27,454	207
Net cash provided by operating activities	91,434	52,602
INVESTING ACTIVITIES
Acquisition of businesses, net of cash acquired	(6,500)	(44,766)
Purchases of property and equipment and investment in internally developed software	(27,877)	(23,686)
Net cash used in investing activities	(34,377)	(68,452)
FINANCING ACTIVITIES
Proceeds related to the exercising of stock options and employee stock purchase plan	4,215	7,045
Payments of tax withholdings related to vesting of share-based awards	(1,655)	(4,955)
Principal payments on long-term debt	(197,825)	(3,844)
Repayments of Lines of Credit	(70,000)	0
Proceeds from borrowings on revolving credit facility	232,000	0
Payments of debt issuance costs	(1,693)	0
Principal payments on finance lease obligations	(417)	(1,735)
Net cash used in financing activities	(35,375)	(3,489)
Effect of exchange rate changes on cash	(67)	23
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect	21,615	(19,316)
Cash and cash equivalents - beginning of period	68,614	80,889
Cash and cash equivalents - end of period	90,229	61,573
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Non-cash purchases of property and equipment	4,987	1,721
Non-cash Fair Value of Equity Issued for Acquisition of Business	0	2,142
Non-cash Fair Value Of Customer Lists Acquired	5,470	0
Cash paid for interest	3,571	6,301
Cash paid for taxes	$ 2,881	$ 617

CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 90,229	$ 68,614
Healthcare accounts receivable, net of allowance for credit losses of $37,338 and $31,780, at September 30, 2020 and December 31, 2019, respectively	72,351	71,851
Other accounts receivable, net of allowance for credit losses of $556 and $201, at September 30, 2020 and December 31, 2019, respectively	16,287	15,625
Inventory	5,538	5,738
Prepaid expenses and other current assets	5,976	6,505
Total current assets	190,381	168,333
Property and equipment, net of accumulated depreciation of $77,216 and $76,095, at September 30, 2020 and December 31, 2019, respectively	63,138	56,380
Intangible assets, net	129,023	129,596
Goodwill	305,591	301,321
Deferred tax assets	4,273	12,626
Other assets	44,689	17,464
Total assets	737,095	685,720
Current liabilities:
Accounts payable	21,229	24,198
Accrued liabilities	46,530	27,318
Current portion of finance lease obligations	253	394
Current portion of long-term debt	0	3,844
Total current liabilities	68,012	55,754
Long-term portion of finance lease obligations	194	289
Long-term debt	157,883	190,823
Other long-term liabilities	114,625	71,937
Total liabilities	340,714	318,803
Stockholders’ equity:
Common stock—$0.001 par value as of September 30, 2020 and December 31, 2019; 200,000,000 shares authorized as of September 30, 2020 and December 31, 2019; 34,258,980 and 34,023,053 shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively	34	34
Paid-in capital	467,006	453,366
Accumulated other comprehensive loss	(402)	(469)
Accumulated deficit	(70,257)	(86,014)
Total stockholders’ equity	396,381	366,917
Total liabilities and stockholders’ equity	$ 737,095	$ 685,720