- Financial results for Q3 2016 accounting for the consolidation of the American company Medi-Lynx Cardiac Monitoring, LLC: PLN 40.4 million consolidated revenue, PLN 15.7 million EBITDA (adjusted for one-time events) and PLN 9.6 million adjusted net profit
- At the unit level, the increase of Medicalgorithmics revenue by 3% YOY to PLN 12.7 million due to the rising number of active Company devices
- Continued increase of revenue on subscription sales: +18.2% YOY
- Consolidated results charged with costs related to potential purchase of AMI/Spectocor assets, dispute with AMI Monitoring Inc. and exchange rate differences.
Medicalgorithmics S.A., a provider of cutting-edge system and algorithmic solutions for cardiac diagnostics, particularly for ECG signal analysis, has published consolidated financial results for Q3 2016. Financial results accounting for the consolidation of the American company Medi-Lynx Cardiac Monitoring, LLC acquired on March 30 are as follows: PLN 40.4 million consolidated revenue, PLN 8.9 million operating profit and PLN 4.5 million adjusted net profit attributable to the parent entity shareholders. The consolidated revenue for Q1 to Q3 2016 is PLN 93.2 million, operating profit is 15.1 million, and net profit attributable to the parent entity shareholders is 9.2 million.
“The significant increase of financial results obviously makes us happy but please note that the comparability of results year of year is still distorted due to the fact that on March 30 we started to consolidate Medi-Lynx. Therefore, we suggest the quarter over quarter result analysis according to which the revenue increased by 6% due to the increased number of examinations and increased revenue on subscriptions from the Company partners excluding Medi-Lynx, etc. The increased revenue on subscription sales is the effect of a larger number of active devices, including the activation of devices bought in the first half of this year,” said Marek Dziubiński, the President of the Boards of Medicalgorithmics S.A.
The consolidated financial results for Q3 2016 were charged with the costs related to disputes with AMI Monitoring Inc. and to potential acquisition of some or all assets of AMI/Spectocor. Their total value was over PLN 6 million. After adjustment for these one-time costs, the consolidated EBITDA for Q3 2016 is PLN 15.7 million, which means an increase by PLN 9.6 million. Profits for Q3 2016 were also charged with costs of financing activities equal to PLN 2.6 million (with respect to PLN 1.5 million net financial revenue in Q2 2016). These costs resulted primarily from interest accrued on the Group’s financial liabilities and foreign exchange losses.
“In the third quarter, the dispute with AMI/Spectocor regarding the Medi-Lynx acquisition was still hampering the increase in the number of sold devices, but this is only temporary. In September, we already observed a positive influence of the dispute finish, and additionally the synergies of the merger with Medi-Lynx will have significant positive impact on the Group’s growth. In particular, by this we mean the expected increase of turnover in the U.S., optimization with respect to the stock value and rotation, and enhanced efficiency of distribution channels,” Marek Dziubiński added.
At the unit level (excluding Medi-Lynx), the revenue of Medicalgorithmics increased in Q3 2016 by 3% YOY to PLN 12.7 million.
As a result of Delaware Court decision to admit all Company claims in the dispute with AMI/Spectocor (regarding the effectiveness of distribution contract termination with AMI/Spectocor by the Company), the adverse party is obliged to pay Medicalgorithmics compensation with interest and to reimburse all proceedings costs (about USD 6.6 million in total). The amounts shall reduce the acquisition price if, after negotiations, the parties decide that Medicalgorithmics takes over some or all AMI/Spectocor assets. Currently, legal and financial due diligence is being carried out.