BioTelemetry, Inc. (NASDAQ:BEAT) Q4 2019 Earnings Conference Call - Final Transcript

Feb 26, 2020 • 05:00 pm ET


BioTelemetry, Inc. (NASDAQ:BEAT) Q4 2019 Earnings Conference Call - Final Transcript


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Joseph H. Capper

the Company closed out the year with tremendous momentum, with MCT and extended-wear Holter continuing to grow at above-market rates and the Geneva platform taking hold in the market. We are now poised for another year of double-digit growth in 2020, and that's prior to any acquisitions.

Our ongoing commitment to product innovation, combined with exceptional client service, has provided us with numerous competitive advantages and incredibly consistent results for now 7.5 years. We possess an unrivaled and continually evolving portfolio of connected health solutions that is taking the Company to new heights.

We are in this position because of our continued focus in three primary areas. Our innovations in the cardiac market have produced the most technologically advanced and expansive remote monitoring offering in the industry. As a result, BioTelemetry remains far and away the market leader. And like all successful growth companies, we seek to expand our position with the addition of other technologies whenever possible, as evidenced most recently with the acquisition of Geneva, which increased our total addressable market by over $1 billion.

Our research division has also benefited from select acquisitions that have expanded our service offerings and accelerated growth. By coupling our cardiac core lab services with a world-class imaging capability a few years ago, we were able to dramatically improve our market position, allowing us to compete for business that was previously out of our reach. And as you may know, we have been busy leveraging our wireless platform and proprietary technology to develop new opportunities in the fast-evolving field of digital population health. We are extremely optimistic about the future of population health, given the magnitude of the market and the need for the healthcare industry to migrate to such solutions.

I call your attention to these three key areas of focus at the outset of each call to provide clarity on how we allocate our time and resources, particularly for the benefit of those who are new to the story. We believe it's important to understand the drivers of the strategy that have produced such consistent quarterly growth. It is also worth noting, it would be extremely hard to replicate our platform and capabilities. And finally, our multifaceted approach toward connected health provides for considerable flexibility as we are not dependent on any single product or segment for growth.

Let's take a look at some of the highlights that drove our success in the quarter. During the period, revenue grew by over 8% to $112 million in spite of the malware issue. Adjusted for the 2019 Medicare rate reduction, this represents over 10% growth. Full year revenue was just over $439 million, up 10% from 2018. Overall margins were above expectations as quarterly EBITDA grew to $31.7 million, just above Q3 and $1.3 million versus the prior year.

We ended the quarter with $69 million in cash after using $45 million to acquire Geneva, which equates to an increase in our cash balance for the year of $33 million. We continue