MTBC - Earnings call transcript Q1 2019

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day and welcome to the MTBC First Quarter 2019 Earnings Conference Call and Webcast. All participants will be in listen-only mode. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Shruti Patel, General Counsel. Please go ahead.

Shruti Patel

you. Thank everyone. morning, Good MTBC quarter the call. XXXX to conference first Welcome Founder Mahmud Chairman; Officer On are our and and A. Executive today's call Chief Haq, Executive our Stephen Director; Snyder Chief and Bill our Director Chaudhry President Korn, Hadi our Financial Officer. and

of statements, without All of and fact, and regarding amended. we Securities and and statements the that as statements other are organic you XXXX outlook historical Securities business financial expectations XXXX are potential made than statements Act call made to operational growth conference forward-looking of our Exchange growth, meaning acquisitions. amended, performance, guidance call certain within future conference of I during limitation, this the like for Section statements, this Section expected Before the including begin, statements and forward-looking remind Act XXE would of during XXA as of

be such anticipate, and Forward-looking with terms. these upcoming, statements estimate, will, plan, the or believe, identified may similar terminology may, of expect, sometimes words negative as

promises differ Securities and forward-looking events. our not to our actual the obligation of control, our we to with discussion to future refer risks results of Please could our of find factors These materially future Exchange of in statements. light beyond are are these from reports a that cause a press those performance which you or filed will no and from date undertake and and could comprehensive presentation as information revise these in Commission, reflect forward-looking uncertainties, forward-looking performance statements cause of these this results materially new to more subject release or statements our where to which statements actual and variety Forward-looking opinions contemplated are only many and of differ the statements. guarantees of

the the presentation. on earnings site to and telephone, our download download first to our Please dialed may by earnings presentation. Events Relations ir.mtbc.com, quarter For anyone click XXXX who want in visit call who Investor

today's Please over year on performance Snyder. non-GAAP press I MTBC, call Executive With turn call the financial measures. reconciliation our Finally, to to results GAAP to measures full of Officer results. non-GAAP refer financial XXXX a Steve? today's certain now to will announcing refer said, that the Chief for we of our may release these Stephen

Stephen Snyder

And XXXX Thank you, Shruti. on everyone joining thank for you first call. us our earnings quarter

a Revenue to delivered We highest $XX.X revenue consistent and start EBITDA the million, million, guidance with consecutive both are from EBITDA. as represents to positive quarter increase in $X.X adjusted XXXX XX% strong XXXX, adjusted which quarterly of adjusted and in pleased of company's a history. $XXX,XXX report EBITDA to an QX of including our our were we increase EBITDA our eighth of XXXX

since of $XX years compound in $XX revenue to from our over in million we at XXXX, IPO, growth XX% five the a grew During rate annual our XXXX. million

market NASDAQ to In are adjusted NASDAQ are double this that a and members market enthusiastic global for and satisfied standards. after the us strict NASDAQ clients in governance market. first enabling liquidity global our team thankful during for concluding to corporate the to and We're quarter, we achieve qualify XXXX, inclusion to addition financial In growth during recognition operations. its MTBCs we our to top from while up our pleased the pleased NASDAQ positive MTBC EBITDA line from generating growth, capital record, listed that of cash tracks we exclusive year-over-year

healthcare driven cloud providers two providing revenue services integrated solutions the and the into manual evolved practices. medical practices, were and cycle While management, based we've healthcare transcription XX leading small last of billing one nation's our proprietary and practice focused early IT on days of over technology to years,

first transaction. our tuck-in as we announced last known Transcription were all one Billing, to last quarter during the of to acquired, companies Medical Similar Corp., reflect small substantially two so officially to call, in recognize MediGain be times and become MT update the better evolved, company a larger opportunity revenues. our half we've also of space. in pleased that affiliated Orion, since mission BC, We and Moreover, less we the DNA. our to than Incorporated As acquired closing the we for earnings assets we've than industry to and Etransmedia its rather a our consolidator the MTBC the Technology businesses name Etransmedia

to have us Etransmedia it tried three failed. However, that before like others and things those lacked succeed enable where

leading edge we global highly the successfully team is companies cost our experience a we of fragmented of unparalleled in space. and a Etransmedia of proprietary efficient First, integrating have emblematic platform; that work I'll experts second, third, the to type targets. Hadi? most and selecting attractive, at are identifying we acquisitions now integrate, over our to acquisition and the close turn while floor to positioned larger tuck-in President. continue

Hadi Chaudhry

us Thank joining our for Steve. you, thank everyone And XXXX on you first quarter call.

the of nearly by adjusted practice quarter cloud quarter grow more, when healthcare platform. another first year-over-year. based doubled had or chapter to The and us to XX% cycle revenue remain nation's fully We a EBITDA in great striving marked revenue management, our and building IT track leading our one on exciting again

client growth. stronger but During HR one; had we to key operational credentialing, from These operations. Orion included for forward services, of success with momentum finance only progress integrating quarter our larger not foundation coding to even our additional acquisition. cost made Orion successfully components in in strides patient teams laid an and This combined our reductions, integrating to

onboard more are capable the succeeding new growth. they acquisitions as are us accounts, We joining whether through today organic or of

at integrating tuck-in the While we latest only recently have made acquired Etransmedia, this transaction. progress we already key

We billing our we space. relationship our the pave hopeful that and are will in first are onboarding continued way process this client in facility the into for Hospital new hospital of Height expansion the also

and look Korn. as We our we Financial now have Chief floor providing the an turn over Bill? exciting updates I Officer, year ahead forward progress. we will to to Bill

Bill Korn

XXXX. represents million an million, of compared increase Thank you, $XX.X $X.X to which of first Hardi. first quarter Revenue was of quarter for the XX% XXXX in

sequential XXXX, loss GAAP recent quarter expense loss also occurred most our illustrate includes GAAP loss compared quarter XXXX. be net assets in in half first quarter two $XXX,XXX, integration from to based from the during intangible of first includes GAAP acquisition, accounts $XXX,XXX. may was $XXX,XXX, third during the non-cash second The increase income the useful quarter income for primarily of The our Orion net expenses, $XXX,XXX of more and including are of of the from $XX,XXX this for amortization year-over-year. depreciation in of For the stock which GAAP compensation quarter non-cash expense amortization GAAP XXXX. the than net resulting the in the in our XXXX. acquisition of Orion of also net in of which difference these our improvements A to comparison net nature It

the business able and replacing the downsizing the our our acquisition. by net before since cycle technology A quarter to quarters first quarter in loss associated XX% $XXX,XXX possible, operating reduction during compared management expense effectively of GAAP Orion's of our their were RCM loss reducing quickly we was of costs offices is subcontractors to in XXXX, of fourth net business. due our Using acquisition, XXXX. total Our team with a employees, this three with reduce quarter XX% Orion's from otherwise the for GAAP expenses revenue to $XXX,XXX were own net our In costs. loss reducing and offshore closing

the based shareholders, was preferred first EBITDA to account and declared in attributable loss which Our to to into by quarter. for of Adjusted during GAAP share stock million, XXXX increased net $X.XX quarter $XXX,XXX takes a represents loss for consecutive per the on net eighth dividends the the our compared adjusted record $X.XX XX% EBITDA MTBC. QX positive as new This is quarter XXXX. of common

adjusted exchange quarter XX% $X.X million, $XXX,XXX offset to non-cash and expense strategic such or able finds XXXX of scale the $XX,XXX in sales that to management net and $XX,XXX overhead intangible income $XXX,XXX purchased as the adjusted consideration depreciation stock a GAAP income adjusted of compensation, activities of taxes. a contingent our and The Non-GAAP both based difference $XX,XXX our reflects integration net losses, non-cash of over by restructuring and of for net EBITDA recent operating continue larger non-GAAP growth we our representing net was transaction first to benefit better and since of assets, for related compared of of spread expense, foreign acquisitions, XXXX. means amortization stock change interest and reflects million costs, we're Orion $XXX,XXX excludes $XXX,XXX loss costs of through As million $XXX,XXX transaction it amortization to overall Again, $X.X based revenues. fixed organic QX compensation, integration business income acquisition, performance. between

of end was income We six period Non-GAAP share consecutive and outstanding. is of income. shares net reported using net positive calculated the have adjusted $X.XX per common quarters adjusted

was XXXX QX loss Our $XXX,XXX. GAAP operating

X% was XXXX. an of of adjusted revenue, which or QX non-GAAP $X.X from Our income operating or represents improvement XX% million $XXX,XXX

generated quarter approximate adjusted first such of MTBCs operations, part operating of because operations. in and in of which was adjusted operations. from the the non-GAAP profitability, sixth EBITDA, quarter income net better as Management from impact positive with During utilizes cash company's consecutive adjusted MTBC income they XXXX, the cash measures $XXX,XXX cash

each and from next of latest XXXX first acquisitions. cash with a XXXX. $XX.X amortize credit GAAP to did the from in continue to few cash during million quarters expect Silicon we over of loss an untapped as for we Even as though Bank. $XX assets our positive quarters, Valley we million generating the the operations the of line continue from intangible We to net quarter four expect We report ended in

with approval. help of acquisitions credit available finance potential including line to bank's is the growth Our future initiatives,

computed approximately March capital million working as liabilities $XX.X less current on XX. Our current assets was

the A $XX XXXX global monthly auction redeemed is MTBC November rate share ticker guidance. has at to in addition close our the at to the year XXXX. has stock market can I'd under be which the company's common dividends by of at Series and perpetual, XX% stock, trades starting per like on reaffirming preferred MTBCP, cash non-convertible NASDAQ per In

the For picture those much better tell than who look those webcast, our can. which looking please at presentation, at slides earnings downloaded the I the for

you first and the on first of webinar, our the presentation instead XXXX earnings If you're I listening go top phone XXXX our to page. ir.mtbc.com, earnings download Investor at quarter events of click quarter Relations by presentation, the by website, suggest download

over any based clients which anticipate XX% XXXX and organic XX% from million continue growth the revenues but to our of like additional steadily approximately of XXXX. excludes $XX XXXX to more tuck-in million through of This will regarding revenue XXXX, existing before from million million, $XX revenues in Etransmedia, acquisitions. new expectations revenue. year guidance continue year clients to the increasing and in to on $XX material Revenue IPO deals trend We than effect is growth of acquired our our our $XX represents full

pursue for our This for including and Chairman, paths to to EBITDA now million strongest these continued XXX% the take the as for comments. $X to We continue our adjusted be financial position to acquisitions, over million adjusted Mahmud business. partnership gives timing material year XXXX multiple does into that turn account. our anticipate for over magnitude we scale growth of growth, accretive our concluding anticipate was can't ever, full to opportunities XXXX its guidance similar representing adjusted floor Since the continue us I'll XXXX. is his to XXXXs growth, $XX predict XX% in potential EBITDA, significant the double adjusted and forward roughly we looking increase not freedom organic and will EBITDA XXXX, MTBCs EBITDA of a acquisitions. we

Mahmud Haq

had to growth and support. We their We year XXXX, strong record customers, our Bill. thank breaking of you, investors, continued profitability. start Thank for another increased promises a which be employees to

floor questions. call We Operator? to to will now

Operator

you. Thank

our go question now will question-and-answer first And Eugene Company. Mannheimer & Please begin from comes with We [Operator the today Dougherty Instructions] session. ahead.

Eugene Mannheimer

about Good quarter to start bit Congrats ask little more. I on bit a Etransmedia here. little year. gentlemen. good a to the Good you a morning, wanted

guidance Sounds contribution on was, the you factored And revenue call I million to into that it the based the year. like for understand X.X your paid. - revenue already multiple the that's

one that you were revision question contemplated and would your how necessitate In is close other will from revenue this, another words, be transaction a guess I Thanks. your mean, the when I like full to the if outlook? is tuck-ins to much year accretive? So guidance, in

Bill Korn

want I great - it's covering you And Gene. it's having say us. to Thanks,

Athena you think growth honored through scripts I all having we who analyst us. their covers covering $Xbillion a covered feel and to an

you. have to great it's So

official we As value guidance we noted, that to paid haven't like how while much we $X.X of least anticipate get given continuing And million. far that Orion as paid. Etransmedia, to you just we'll to the expect, twice sort as we the as at revenue revenue

as range. takes annualized other that recognize times who probably account So before what at the with us. the $X.X growth the clients model there I'd alternatives I are through looked some and works model, that possible time we We say big to that'll into be in Etransmedia them guess as one growth. in two million to yes, same some are baked to fact so there And gone keep hard and hard our small terms had of path to and paths our at

we as, for add been clients, As organic that could we've of pretty example, other such Hospital, new to clients significant got sign And continue chunks we've new Height revenue. signing. those

did another another which of deal hospital wash as practices, Etransmedia So there. a is did in some those to or respects, are or whether we in one large sort

deals, we - have going or organic opportunities Etransmedia And accretive that for do whether say see get like done can So think I then continue that tuck-ins for very to wouldn't make when continue we we'll look to as one to going I not, breaking we're bigger we we're without a continue to to look sweat sense. specifically those.

Eugene Mannheimer

going one? right. transaction. be Orion to in all think And on with Thank the how more - OpEx, that closing that that you, the my your it? Is XX% there follow would with you. expectations question now, stated does I Bill. acquisition you is reduction Okay, go compare up Thank still since And into

Bill Korn

Yeah.

is the the So Orion the transaction. on before XX% we closed from quarter

numbers you we in at So didn't year. see XX We them whole quarter on because expense what on with X, of started. July But in we the very out consistent from our looking some even their quarter the so we looked expected take cost bought decrease it's last second in was expenses purchased four won't when MediGain, of we total we say quarters that when what I'd a them. we before a was bought XX%

we're Orion into XX. quarters three now So at

so happened reductions partial little of a quarter As second that still bit more. quarter, the where we you'll the current in effects at quarter look there middle first are and a got you see

think them. is Orion's be we reductions cost actually I business. has on again, team revenue contributing two will before this lines that the bought So profits both similar. other to were very our positively And primarily focused cycle management Orion over and check. rebate group buying a little a a year essentially There's organization, it we're purchasing has with physicians getting revenue are little vaccines a generates from very Because million GPO the cost a Merck Sanofi, and in quarterly it. in

cost. no there's So

there's much there. can So And to you costs do finally, really reduce three was the managing Orion not practices. physician

got across who It's change of we've there's nurses again, caregivers. stream core So do or Does doing plans employees to model. real XXX profitable. but there? Midwest, a five really are that and kind that in we the no at offices that about, really the look change to revenue It's in business. to the And other things nicely synergies don't have of wouldn't we that opportunities particular same much structure

Eugene Mannheimer

Okay, very you, congrats. Thank good. Bill,

Bill Korn

Thanks, Gene.

Operator

Please Zacks ahead. from go our comes with Instructions] Brian Research. Investment And next Marckx [Operator question

Brian Marckx

quarter. terms morning, of business the give the can three of us wondering breakdown you segments the if Good guys on in and Bill, revenue? congrats

Bill Korn

thanks, Brian. So

guess million when find go in a you if business segments, revenue, last two of I this $X the into for XX-Q. actually roughly IT healthcare XX-K the I practice you business is for the and year, think three look the and We year segments, was the practice constant thing So we management the business divide as in ourselves you'll same the business. half and say management to roughly

It economics our printing, revenue And revenue a a unveiling the providing million structure, it and about it practice $X is little healthcare GPO bit And of of break We cost includes So actually annually measure the segments. revenue. cycle large separated one a includes very includes of segments that IT services. the of are because in per ancillary management, business The two of traditional the more is remainder give year. full some and roughly revenue other billion revenue the of business. it's of $XX different. in but detail about notes, we management again into in terms P&L, in

that that have and separate feel different going and will margin growth it's out expectations we useful forward. So to

Brian Marckx

the so the in the itemization same will the itemization that as right? Okay, be in Q is was K,

Bill Korn

note I that have, say seven a the might be little again, the right. is of are gives more it That's in a revenue called There'll granular revenue. of And believe detail thing. that disaggregation you lot that categories same people on same a doing

the hard it's costs. separate So out really to

Brian Marckx

I okay. Yeah, Understand, yeah.

about you expense than would into were be a help us shake where it And than it may it where - little of QX, what give expense bit out? we think goes with $XXX,XXX in was anticipating. less it lower where you the Or G&A Was you anticipated? thought terms QX? G&A was can In you

Bill Korn

Sure.

were So I for was on would much and managing what say, we for. pretty track with G&A planning

As What effectively. change that it don't simplest you offices it was If ways thing we that price that that need, know doing companies, to find buying negatively companies and is buy do were weren't And they to a right. everything customers? low got we find big they wouldn't that what the doing we're when caused doesn't impact customer always that close really paying cost we're that the and we've back that. more you office look at could impact expenses

we we mind had I had, think closed even specific when we we together specific timelines. put time in at steps that and plan, our the Orion,

I against plan. executing pretty we're actually well So think on that

that that and everything that tip a we unforeseen. are could also possibly don't bit to We the like necessarily completely everybody portraying happen our room when do. have little we street, want because We to tell to recognize out things of hands

we G&A think year, of profitability acquired And X, going Etransmedia. the about and on the the for for think rest I so about if forward April I then

I the little of probably money. we business Etransmedia we look losing drag overall steps. in really about creative what year taken that QX. acquired probably and maybe Etransmedia, full at be already QX, the be we'll We've before - XXXX, If and QX, be will a But was if their exactly on QX again, little I have think expected. overall positive I'd profitability bit a will say the will lots it expense, of will a in the Now neutralize then

be generating pay again, a company that we was got So lot a hard. more. it's we margins, would the profit If amount bought XX% to

able be real to get want the case, you unused out example, you you assume in at to If where buy to space maybe their the at or for day close that transaction, you've there's a got sublease things discount, to offices these three things. look lot opportunity out of of a big and

a that since happening transaction. completed in days of lot there's So even that we that's XX the

Brian Marckx

Okay, great. Thank you, Bill.

Bill Korn

Sure.

Operator

will conference turn back conclude I and answer for to Shruti session. over our this remarks. just question closing like the Patel any And

Shruti Patel

hope We Thank day a Thank for you you. call. we'll joining soon. you. Thank everyone you'll have see that you, great our and

Operator

The Thank today's conference now is attending concluded. presentation. you for

may You disconnect now

CareCloud (CCLD) 8 May 192019 Q1 Earnings call transcript