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SEC
8-K
BIOTELEMETRY, INC. filed this Form 8-K on 10/30/2018
Entire Document
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Reconciliation of GAAP to Non-GAAP Financial Measures
(Unaudited)

 
 
Three Months Ended
(Unaudited)
 
September 30, 2018
(in thousands, except per share data)
 
Income from operations
 
Income before income taxes
 
Net income attributable to BioTelemetry, Inc.
 
Net income per diluted share attributable to BioTelemetry, Inc.*
GAAP
 
$
17,376

 
$
14,720

 
$
16,001

 
$
0.45

Non-GAAP adjustments:
 
 
 
 
 
 
 
 
Other charges (a)
 
1,330

 
1,330

 
1,330

 
0.04

LifeWatch amortization (b)
 
3,267

 
3,267

 
3,267

 
0.09

Income tax effect of adjustments (c)
 

 

 
(103
)
 

Benefit of discrete items/NOL utilization (d)
 

 

 
(1,338
)
 
(0.04
)
Non-GAAP Adjusted
 
$
21,973

 
$
19,317

 
$
19,157

 
$
0.53

Weighted average number of common shares outstanding - diluted
 
 
 
 
 
35,918

* total does not add due to rounding
 
 
 
 
 
 
 
 

 
 
Three Months Ended
(Unaudited)
 
September 30, 2017
(in thousands, except per share data)
 
Income/(loss) from operations
 
Income/(loss) before income taxes
 
Net income/(loss) attributable to BioTelemetry, Inc.
 
Net income/(loss) per diluted share attributable to BioTelemetry, Inc.
GAAP
 
$
(1,167
)
 
$
(2,999
)
 
$
(2,285
)
 
$
(0.07
)
Non-GAAP adjustments:
 
 
 
 
 
 
 
 
Other charges (a)
 
8,152

 
8,152

 
8,152

 
0.23

LifeWatch amortization (b)
 
2,719

 
2,719

 
2,719

 
0.08

Foreign currency option related to LifeWatch acquisition (e)
 

 
424

 
424

 
0.01

Loss on extinguishment of debt (f)
 

 
543

 
543

 
0.02

Gain on legal settlement (g)
 

 
(1,333
)
 
(1,333
)
 
(0.04
)
Income tax effect of adjustments (c)
 

 

 
(2,725
)
 
(0.08
)
NOL utilization (d)
 

 

 
2,978

 
0.09

Non-GAAP Adjusted
 
$
9,704

 
$
7,506

 
$
8,473

 
$
0.24

Weighted average number of common shares outstanding - diluted
 
 
 
 
 
34,982


a)
In the third quarter 2018, other charges of $1.3 million were due primarily to $0.7 million for the continued integration and restructuring activities related to the LifeWatch acquisition and $0.3 million for patent litigation. In the third quarter 2017, other charges of $8.2 million were due to $7.6 million of professional and legal fees, as well as severance, related to the acquisition and integration of LifeWatch, $1.0 million of other legal and professional fees, $0.6 million for ongoing patent litigation partially offset by a $1.4 million reduction in contingent consideration related to our 2016 acquisitions.
b)
In the third quarter 2018, we recognized $3.3 million of expense related to the amortization of intangibles as a result of the LifeWatch acquisition. In the third quarter 2017, we recognized $2.7 million of LifeWatch amortization of intangibles. The presentation of the 2017 LifeWatch amortization of intangibles has been conformed to the 2018 presentation. We have excluded the LifeWatch amortization of intangibles from adjusted net income for year over year comparative purposes. This amortization was recorded as a component of general and administrative expense.
c)
Represents the tax effect on the non-GAAP adjustments at the Company’s estimated annual effective tax rate.
d)
During the fourth quarter 2016, the Company released the tax valuation allowance on its net deferred tax assets. The benefit from this release was excluded from the Company’s 2016 adjusted results. Without a valuation allowance in place and due to the timing of discrete items, for



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