| CardioNet, Inc. Reports Fourth Quarter and Full Year 2008 Financial Results | | CONSHOHOCKEN, Pa., Feb 17, 2009 (BUSINESS WIRE) -- CardioNet, Inc. (NASDAQ:BEAT), a leading wireless medical technology
company with an initial focus on the diagnosis and monitoring of cardiac
arrhythmias, today reported results for the fourth quarter and full year
ended December 31, 2008.
Fourth Quarter and Full Year 2008 Highlights and Recent Developments
-
Fourth quarter revenue increased to $34.4 million, a 43.8% increase
over the same period in the prior year; full year revenue increased to
$120.5 million, a 65.0% increase over the prior year
-
Adjusted operating margin of 18.9%, excluding one-time charges(1A),
and GAAP operating margin of 18.6% in the fourth quarter 2008 compared
to 8.0% in the fourth quarter 2007; full year adjusted operating
margin of 12.1%, excluding one-time charges(1A), and GAAP
operating margin of 8.0% compared to 0.3% in 2007
-
Successfully completed $82.8 million IPO in March and $152.4 million
secondary offering in August
-
Strengthened management team, including the appointment of Randy
Thurman, our Executive Chairman, as Interim President and Chief
Executive Officer in January 2009
-
Received Category I CPT codes and reimbursement rates effective
January 1, 2009
-
Secured contracts with over 30 payors during the year, including two
major national payors, accounting for an additional 32.1 million lives
covered by the CardioNet System
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Fourth Quarter Results
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December 31,
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December 31,
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%
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2008
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2007
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Change
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Earnings per diluted share - GAAP
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$
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0.29
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$
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(0.22
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)
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NA
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Dividends on and accretion of mandatorily redeemable convertible
preferred stock and Integration, restructuring and other
nonrecurring charges
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-
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0.34
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Impact of full year effective tax rate adjustment on prior
quarters' integration, restructuring and other nonrecurring charges
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0.06
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-
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Adjusted earnings per diluted share
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$
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0.35
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$
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0.12
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191.7
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%
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Favorable impact of NOL utilization
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(0.19
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)
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-
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Adjusted earnings per diluted share excluding NOLs
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$
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0.16
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$
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0.12
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33.3
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%
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Full Year Results
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December 31,
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December 31,
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%
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2008
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2007
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Change
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Earnings per diluted share - GAAP
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$
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0.29
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$
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(2.89
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)
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NA
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Dividends on and accretion of mandatorily redeemable convertible
preferred stock and Integration, restructuring and other
nonrecurring charges
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0.30
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2.77
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Adjusted earnings per diluted share
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$
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0.59
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$
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(0.12
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)
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NA
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Favorable impact of NOL utilization
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(0.20
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)
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-
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Adjusted earnings per diluted share excluding NOLs
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$
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0.39
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$
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(0.12
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)
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NA
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President and CEO Commentary
Randy Thurman, Interim President and CEO, commented: "We are pleased to
report strong fourth quarter and full year results, demonstrating
CardioNet's continued success in the wireless cardiac monitoring and
diagnostic market. During the year, our revenue grew 65% and we achieved
fourth quarter adjusted earnings per diluted share of $0.35 and full
year adjusted earnings per diluted share of $0.59, exceeding our
expectations and marking our first year of profitability.
"In 2008 we achieved a number of significant accomplishments throughout
the organization that positioned us for accelerated growth in 2009. We
secured Category I CPT codes and reimbursement rates for the CardioNet
System in October, a major milestone in facilitating broader adoption.
We also secured contracts with over 30 new payors during the year,
including two major national payors, accounting for an additional 32.1
million covered lives. We strengthened the management team with several
key hires and successfully completed the integration of the PDSHeart
acquisition and the consolidation of our corporate functions to
Pennsylvania. We continued growing and developing our sales and
marketing organization, expanding our geographic footprint and elevating
our profile within the medical community. We also remained committed to
our research and development efforts, as demonstrated by the recent
launch of our enhanced atrial fibrillation reporting package. Finally,
we continued to benefit from the growing body of peer-reviewed research
highlighting the benefits of the CardioNet System. We look forward to
the future publication of additional studies, supported by our ongoing
clinical programs.
"Looking forward, CardioNet is uniquely positioned within the healthcare
industry and perhaps most industries today. We are leading what we
believe is a revolution in healthcare - wireless medicine. The demand
for our cardiac outpatient services is growing at greater than 40% per
year. Our services provide significant and meaningful benefits to
patients and prescribing physicians while delivering improved
cost/benefit outcomes to the payors. Every indication is that CardioNet
is positioned for years of exceptional growth.
"We view 2009 as an inflection point. We believe it is a year to make
the necessary investments to lay the foundation for accelerated growth,
increased market share and the establishment of the CardioNet brand as
the clear leader in ambulatory cardiac monitoring and diagnosis. We
firmly believe that we can achieve this incremental investment while
reporting strong earnings growth in 2009, and, more importantly,
positioning ourselves for an enhanced leadership position in the
industry and higher levels of shareholder return in 2010 and beyond.
Long-term, CardioNet's success will be based upon our stakeholders
viewing us as the unquestioned leader by the quality of our devices,
customer service and patient support as well as the professionalism of
our account executives. These stakeholders include patients, physicians,
payors, our employees and our shareholders.
"To achieve these aims, we intend to make incremental investments in
2009 focused on increasing our sales force and ensuring the highest
quality of customer service and monitoring operations, including the
necessary information technology that underlies our business. We expect
to invest in product development and clinical research studies with a
focus on continued innovation. We anticipate that the single largest
investment will be in our field sales organization with a planned
increase of approximately 70% in account executives and the enhancement
of our national coverage.
"As a result, we are establishing revenue guidance for 2009 of $170.0 to
$175.0 million, somewhat higher than expectations, and over 40% growth
compared to 2008. Based on the incremental investments I have just
outlined, which represent approximately $0.08 to $0.10 per diluted
share, we are providing earnings guidance for 2009 of $0.69 to $0.73 per
diluted share, excluding any impact of NOLs, other tax related items and
any nonrecurring charges. This represents over 75% earnings growth year
over year. In addition, we currently anticipate a one-time benefit in
2009 related to NOLs and other tax related items which could favorably
impact earnings by approximately $1.00 to $1.30 per diluted share. We do
not anticipate any earnings per diluted share benefit from NOLs and
other tax related items in 2010 or 2011. We believe the investment in
2009 is the foundation that will drive higher revenues and earnings in
2010 and beyond. Our outlook for 2010 is for revenue to increase at
least 50% and earnings to increase 100%, compared to the Company's 2009
guidance excluding NOLs and other tax related items. In 2011, we believe
that earnings per diluted share could reach $2.00. We expect that the
increased investment in 2009 and the rapid revenue growth that we are
targeting will result in increased shareholder value over the long term.
"In summary, the convergence of healthcare and information technology is
resulting in one of the most important trends for the next twenty years
- wireless medicine - and CardioNet is uniquely positioned to capitalize
on this unprecedented opportunity over the long term. Today, we are a
leader in wireless medicine focused on cardiac arrhythmia monitoring and
diagnostics. Building market share and making intelligent investments
are our current focus. Tomorrow, we aspire to be the unquestioned leader
in a healthcare revolution. We believe that our near-term and long-term
goals are in-sync and will drive great value for all of our
stakeholders."
Financial Results
Revenues for the fourth quarter of 2008 increased to $34.4 million
compared to $23.9 million in the fourth quarter of 2007, an increase of
$10.5 million, or 43.8%. Revenues for the year ended December 31, 2008
increased to $120.5 million compared to $73.0 million in the prior year,
an increase of 65.0%. After taking into account the acquisition of
PDSHeart, Inc. ("PDSHeart"), which the Company acquired in March 2007,
revenue in 2008 increased 56.3% to $120.5 million compared to $77.1
million in the prior year(1B).
Gross profit increased to $23.9 million in the fourth quarter of 2008,
or 69.4% of revenues, compared to $15.3 million in the fourth quarter of
2007, or 63.7% of revenues. The 69.4% gross margin in the fourth quarter
of 2008 also compares favorably to the 67.9% gross margin in the third
quarter of 2008. For the full year 2008, gross profit increased to $80.5
million, or 66.9% of revenues, compared to $47.5 million, or 65.0% of
revenues, in the prior year. After taking into account the acquisition
of PDSHeart, the 66.9% gross profit for the full year 2008 compares to
64.7% gross profit in the prior year, an increase of 220 basis points(1B).
Marty Galvan, CardioNet's Chief Financial Officer commented: "Fourth
quarter gross margin benefitted from productivity and efficiency
improvements that we instituted during the year. Also, our revenue mix
continues to shift toward our higher margin CardioNet System, away from
the legacy, lower margin event and Holter monitoring business.
Additionally, after performing an internal evaluation related to the
expected duration of our current generation device, we adjusted the
depreciable life from two to three years, resulting in a 123 basis point
improvement in gross margin in the fourth quarter. The change in the C3
depreciable life will also have a favorable impact on our 2009 gross
margin."
On a GAAP basis, operating income was $6.4 million in the fourth quarter
of 2008 compared to $1.9 million in the fourth quarter of 2007.
Excluding $0.1 million of expense related to the integration of PDSHeart
and other restructuring efforts(1A), adjusted operating
income increased to $6.5 million in the fourth quarter of 2008, or 18.9%
of revenue, compared to $1.9 million, or 8.0% of revenue, in the fourth
quarter of 2007.
On a GAAP basis, operating income for the full year 2008 increased to
$9.7 million compared to $0.2 million in the prior year. Excluding the
impact of $4.9 million of integration, restructuring and other
nonrecurring charges(1A), adjusted operating income increased
to $14.6 million for the full year 2008, or 12.1% of revenue, compared
to $0.2 million in the prior year.
Net income for the fourth quarter of 2008 was $6.9 million, or $0.29 per
diluted share, compared to $2.1 million, or $0.12 per diluted share, for
the same period last year. Net income for the fourth quarter of 2008
includes a favorable impact of $0.19 per diluted share due to the
utilization of net operating loss carryforwards ("NOLs"). Adjusted net
income for the fourth quarter of 2008 was $8.4 million, or $0.35 per
diluted share, excluding the impact of integration of PDSHeart and other
restructuring efforts(1A), compared to $2.1 million, or $0.12
per diluted share, for the same period last year.
Net income for the full year 2008 increased to $9.2 million, or $0.40
per diluted share, compared to a net loss of $0.4 million, or a loss of
$0.12 per diluted share, for the prior year. Net income for 2008
includes a favorable impact of $0.20 per diluted share due to the
utilization of NOLs. Adjusted net income for the full year 2008
increased to $13.4 million, or $0.59 per diluted share, excluding the
impact of integration, restructuring, other nonrecurring charges
(1A), compared to a net loss of $0.4 million, or a loss of $0.12
per diluted share, for the prior year.
Marty Galvan remarked: "With the assistance of tax consultants, during
the quarter we completed a study which clarified the extent to which we
could utilize our NOLs. As a result, we utilized $22.0 million of NOLs
and adjusted our full year effective tax rate in the fourth quarter.
This had a positive impact of $0.19 on our fourth quarter earnings per
diluted share and a favorable impact of $0.20 on our full year results.
As a result of the NOL utilization, our effective tax rate for 2008 was
13.9%. Additionally, the utilization of the NOLs in 2008 resulted in the
avoidance of a cash payment for taxes of $8.8 million."
On a GAAP basis, net income available to common shareholders, which is
derived by reducing net income by the accrued dividends and accretion on
mandatorily redeemable convertible preferred stock, was $6.9 million, or
$0.29 per diluted share, for the fourth quarter of 2008, compared to a
net loss of $0.7 million, or a loss of $0.22 per diluted share, for the
fourth quarter of 2007. The mandatorily redeemable convertible preferred
stock, which was issued in part to finance the March 2007 PDSHeart
acquisition, was converted to common stock in connection with
CardioNet's March 2008 initial public offering. Net income for the
fourth quarter of 2008 includes a favorable impact of $0.19 per diluted
share due to the utilization of NOLs.
On a GAAP basis, net income available to common shareholders for the
year ended December 31, 2008 was $6.6 million, or $0.29 per diluted
share, compared to a loss of $8.7 million, or a loss of $2.89 per
diluted share, for the prior year. Net income for 2008 includes a
favorable impact of $0.21 per diluted share due to the utilization of
NOLs.
Conference Call
CardioNet, Inc. will host an earnings conference call on Tuesday,
February 17, 2009, at 5:00 PM Eastern Time. The call will be
simultaneously webcast on the investor information page of our website, www.cardionet.com.
The call will be archived on our website and will also be available for
two weeks via phone at 888-286-8010, access code 56293026.
CardioNet, Inc. is a leading provider of ambulatory, continuous,
real-time outpatient management solutions for monitoring relevant and
timely clinical information regarding an individual's health.
CardioNet's initial efforts are focused on the diagnosis and monitoring
of cardiac arrhythmias with a solution that it markets as the CardioNet
System. More information can be found at www.cardionet.com.
Forward Looking Statements
This press release includes certain forward-looking statements within
the meaning of the "Safe Harbor" provisions of the Private Securities
Litigation Reform Act of 1995 regarding, among other things, our growth
prospects, the prospects for our products and our confidence in the
Company's future. These statements may be identified by words such as
"expect", "anticipate", "estimate", "intend", "plan", "believe", and
other words and terms of similar meaning. Such forward-looking
statements are based on current expectations and involve inherent risks
and uncertainties, including important factors that could delay, divert,
or change any of them, and could cause actual outcomes and results to
differ materially from current expectations. These factors include,
among other things, the success of our sales and marketing initiatives,
our ability to attract and retain talented executive management and
sales personnel, the commercialization of new products, market factors,
internal research and development initiatives, partnered research and
development initiatives, competitive product development, changes in
governmental regulations and legislation, changes to reimbursement
levels for our products, the continued consolidation of payors,
acceptance of our new products and services and patent protection and
litigation. For further details and a discussion of these and other
risks and uncertainties, please see our public filings with the
Securities and Exchange Commission, including our latest periodic report
on Form 10-K or 10-Q. We undertake no obligation to publicly update any
forward-looking statement, whether as a result of new information,
future events, or otherwise.
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|
|
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Three Months Ended
|
|
Consolidated Statements of Operations
|
|
(unaudited)
|
|
(In Thousands, Except Per Share Amounts)
|
|
|
|
|
|
|
|
December 31,
2008
|
|
December 31,
2007
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
34,427
|
|
|
$
|
23,943
|
|
|
Cost of revenues
|
|
|
10,545
|
|
|
|
8,683
|
|
|
Gross profit
|
|
|
23,882
|
|
|
|
15,260
|
|
|
Gross profit %
|
|
|
69.4
|
%
|
|
|
63.7
|
%
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
Research and development expense
|
|
|
983
|
|
|
|
962
|
|
|
General and administrative expense
|
|
|
10,775
|
|
|
|
7,799
|
|
|
Sales and marketing expense
|
|
|
5,369
|
|
|
|
4,335
|
|
|
Amortization of intangibles
|
|
|
246
|
|
|
|
246
|
|
|
Integration, restructuring and other nonrecurring charges
|
|
|
105
|
|
|
|
-
|
|
|
Total operating expenses
|
|
|
17,478
|
|
|
|
13,342
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
6,404
|
|
|
|
1,918
|
|
|
Interest income, net
|
|
|
295
|
|
|
|
174
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
6,699
|
|
|
|
2,092
|
|
|
Benefit from income taxes
|
|
|
226
|
|
|
|
-
|
|
|
Net income
|
|
$
|
6,925
|
|
|
$
|
2,092
|
|
|
Dividends on and accretion of mandatorily redeemable convertible
preferred stock
|
|
|
-
|
|
|
|
(2,758
|
)
|
|
Net income (loss) available to common shareholders
|
|
$
|
6,925
|
|
|
$
|
(666
|
)
|
|
|
|
|
|
|
|
Earnings (loss) per share:
|
|
|
|
|
|
Basic
|
|
$
|
0.30
|
|
|
$
|
(0.22
|
)
|
|
Diluted
|
|
$
|
0.29
|
|
|
$
|
(0.22
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding:
|
|
|
|
|
|
Basic
|
|
|
23,434
|
|
|
|
3,012
|
|
|
Diluted
|
|
|
23,994
|
|
|
|
3,012
|
|
|
|
|
|
|
|
|
Twelve Months Ended
|
|
Consolidated Statements of Operations
|
|
(unaudited)
|
|
(In Thousands, Except Per Share Amounts)
|
|
|
|
|
|
|
|
December 31,
2008
|
|
December 31,
2007
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
120,454
|
|
|
$
|
72,992
|
|
|
Cost of revenues
|
|
|
39,913
|
|
|
|
25,526
|
|
|
Gross profit
|
|
|
80,541
|
|
|
|
47,466
|
|
|
Gross profit %
|
|
|
66.9
|
%
|
|
|
65.0
|
%
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
Research and development expense
|
|
|
3,999
|
|
|
|
3,782
|
|
|
General and administrative expense
|
|
|
39,876
|
|
|
|
26,674
|
|
|
Sales and marketing expense
|
|
|
21,111
|
|
|
|
15,969
|
|
|
Amortization of intangibles
|
|
|
984
|
|
|
|
799
|
|
|
Integration, restructuring and other nonrecurring charges
|
|
|
4,880
|
|
|
|
-
|
|
|
Total operating expenses
|
|
|
70,850
|
|
|
|
47,224
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
|
|
9,691
|
|
|
|
242
|
|
|
Interest income (expense), net
|
|
|
997
|
|
|
|
(600
|
)
|
|
|
|
|
|
|
|
Income (loss) before income taxes
|
|
|
10,688
|
|
|
|
(358
|
)
|
|
Provision for income taxes
|
|
|
(1,483
|
)
|
|
|
-
|
|
|
Net income (loss)
|
|
$
|
9,205
|
|
|
$
|
(358
|
)
|
|
Dividends on and accretion of mandatorily redeemable convertible
preferred stock
|
|
|
(2,597
|
)
|
|
|
(8,346
|
)
|
|
Net income (loss) available to common shareholders
|
|
$
|
6,608
|
|
|
$
|
(8,704
|
)
|
|
|
|
|
|
|
|
Earnings (loss) per share:
|
|
|
|
|
|
Basic
|
|
$
|
0.36
|
|
|
$
|
(2.89
|
)
|
|
Diluted
|
|
$
|
0.29
|
|
|
$
|
(2.89
|
)
|
|
|
|
|
|
|
|
Weighted average shares outstanding:
|
|
|
|
|
|
Basic
|
|
|
18,349
|
|
|
|
3,012
|
|
|
Diluted
|
|
|
22,659
|
|
|
|
3,012
|
|
|
|
|
The following table presents detail of the stock based compensation
expense that is included in each functional line item in the
Condensed Statements of Operations above (000's):
|
|
|
|
Three Months Ended
|
|
Stock based compensation expense
|
|
(unaudited)
|
|
(In Thousands)
|
|
|
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
2008
|
|
2007
|
|
|
|
|
|
|
|
Stock based compensation expense included in:
|
|
|
|
|
|
Cost of revenues
|
|
$
|
13
|
|
$
|
6
|
|
Research and development expense
|
|
|
18
|
|
|
2
|
|
General and administrative expense
|
|
|
768
|
|
|
359
|
|
Sales and marketing expense
|
|
|
113
|
|
|
91
|
|
Integration, restructuring and other nonrecurring charges
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
Total stock based compensation expense
|
|
$
|
912
|
|
$
|
458
|
|
|
|
|
|
|
|
Twelve Months Ended
|
|
Stock based compensation expense
|
|
(unaudited)
|
|
(In Thousands)
|
|
|
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
2008
|
|
2007 (a)
|
|
|
|
|
|
|
|
Stock based compensation expense included in:
|
|
|
|
|
|
Cost of revenues
|
|
$
|
37
|
|
$
|
14
|
|
Research and development expense
|
|
|
68
|
|
|
8
|
|
General and administrative expense
|
|
|
2,041
|
|
|
621
|
|
Sales and marketing expense
|
|
|
475
|
|
|
136
|
|
Integration, restructuring and other nonrecurring charges
|
|
|
768
|
|
|
-
|
|
|
|
|
|
|
|
Total stock based compensation expense
|
|
$
|
3,389
|
|
$
|
779
|
|
(a)
|
|
We began assigning stock compensation expense to the individual cost
centers in the third quarter of 2007. Prior to the third quarter,
all stock compensation expense was recorded under general and
administrative.
|
|
|
|
|
|
Summary Consolidated Balance Sheet Data
|
|
|
|
(In Thousands)
|
|
|
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
2008
|
|
2007
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
58,171
|
|
$
|
18,091
|
|
Accounts receivable, net
|
|
|
39,430
|
|
|
22,854
|
|
Working capital
|
|
|
84,003
|
|
|
29,375
|
|
Total assets
|
|
|
165,773
|
|
|
103,040
|
|
Total debt
|
|
|
72
|
|
|
2,744
|
|
Mandatorily redeemable convertible preferred stock
|
|
|
-
|
|
|
115,302
|
|
Total shareholders' equity (deficit)
|
|
|
150,116
|
|
|
(26,865)
|
|
Reconciliation of Non-GAAP Financial Measures
|
|
(In Thousands, Except Per Share Amounts)
|
|
|
|
In accordance with Regulation G of the Securities and Exchange
Commission, the tables set forth below reconcile certain financial
measures used in this press release that were not calculated in
accordance with generally accepted accounting principles, or GAAP,
with the most directly comparable financial measure calculated in
accordance with GAAP.
|
|
|
|
|
|
|
(1A)
|
|
The following tables reconcile certain financial measures used in
this press release that were not calculated in accordance with GAAP.
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
2008
|
|
2007
|
|
Operating income - GAAP
|
|
$
|
6,404
|
|
$
|
1,918
|
|
Integration, restructuring and other nonrecurring charges (a)
|
|
|
105
|
|
|
-
|
|
Adjusted operating income
|
|
$
|
6,509
|
|
$
|
1,918
|
|
|
|
|
|
|
|
Net income (loss) available to common shareholders - GAAP
|
|
$
|
6,925
|
|
$
|
(666)
|
|
Dividends on and accretion of mandatorily redeemable convertible
preferred stock which converted to common stock in the first
quarter of 2008
|
|
|
-
|
|
|
2,758
|
|
Net income
|
|
$
|
6,925
|
|
$
|
2,092
|
|
|
|
|
|
|
|
Integration, restructuring and other nonrecurring charges (net of
income taxes of $15) (a)
|
|
|
90
|
|
|
-
|
|
Impact of full year effective tax rate adjustment on prior
quarters' integration, restructuring and other nonrecurring charges
|
|
|
1,386
|
|
|
-
|
|
Adjusted net income
|
|
$
|
8,401
|
|
$
|
2,092
|
|
Impact of NOL utilization (b)
|
|
|
(4,688)
|
|
|
-
|
|
Adjusted net income excluding NOL utilization
|
|
$
|
3,713
|
|
$
|
2,092
|
|
|
|
|
|
|
|
Diluted earnings (loss) available to common shareholders per
share - GAAP
|
|
$
|
0.29
|
|
$
|
(0.22)
|
|
Dividends on and accretion of mandatorily redeemable convertible
preferred stock which converted to common stock in the first
quarter of 2008
|
|
|
-
|
|
|
0.34
|
|
Diluted earnings per share
|
|
$
|
0.29
|
|
$
|
0.12
|
|
|
|
|
|
|
|
Integration, restructuring and other nonrecurring charges per share
(a) and Impact of full year effective tax rate adjustment on prior
quarters' integration, restructuring and other nonrecurring charges
|
|
|
0.06
|
|
|
-
|
|
Adjusted diluted earnings per share
|
|
$
|
0.35
|
|
$
|
0.12
|
|
Impact of NOL utilization (b)
|
|
|
(0.19)
|
|
|
-
|
|
Adjusted diluted earnings per share excluding NOL utilization
|
|
$
|
0.16
|
|
$
|
0.12
|
|
(a)
|
|
In the fourth quarter of 2008, we incurred $0.1 million of
integration, restructuring and other nonrecurring charges.
|
|
(b)
|
|
In the fourth quarter of 2008, we were able to utilize $22.0 million
of net operating loss carryforwards for the full year 2008.
|
|
|
|
|
|
|
|
Twelve Months Ended
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
2008
|
|
2007
|
|
Operating income (loss) - GAAP
|
|
$
|
9,691
|
|
|
$
|
242
|
|
|
Integration, restructuring and other nonrecurring charges (a)
|
|
|
4,880
|
|
|
|
-
|
|
|
Adjusted operating income (loss)
|
|
$
|
14,571
|
|
|
$
|
242
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) available to common shareholders - GAAP
|
|
$
|
6,608
|
|
|
$
|
(8,704
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Dividends on and accretion of mandatorily redeemable convertible
preferred stock which converted to common stock in the first quarter
of 2008
|
|
|
2,597
|
|
|
|
8,346
|
|
|
Net income (loss)
|
|
$
|
9,205
|
|
|
$
|
(358
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Integration, restructuring and other nonrecurring charges (net of
income taxes of $677) (a)
|
|
|
4,203
|
|
|
|
-
|
|
|
Adjusted net income (loss)
|
|
$
|
13,408
|
|
|
$
|
(358
|
)
|
|
Impact of NOL utilization (b)
|
|
|
(4,688
|
)
|
|
|
-
|
|
|
Adjusted net income (loss) excluding NOL utilization
|
|
$
|
8,720
|
|
|
$
|
(358
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings (loss) available to common shareholders per
share - GAAP
|
|
$
|
0.29
|
|
|
$
|
(2.89
|
)
|
|
Dividends on and accretion of mandatorily redeemable convertible
preferred stock which converted to common stock in the first
quarter of 2008
|
|
|
0.11
|
|
|
|
2.77
|
|
|
Diluted earnings (loss) per share
|
|
$
|
0.40
|
|
|
$
|
(0.12
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Integration, restructuring and other nonrecurring charges per share
(a)
|
|
|
0.19
|
|
|
|
-
|
|
|
Adjusted diluted earnings (loss) per share
|
|
$
|
0.59
|
|
|
$
|
(0.12
|
)
|
|
Impact of NOL utilization (b)
|
|
|
(0.20
|
)
|
|
|
-
|
|
|
Adjusted diluted earnings (loss) per share excluding NOL
utilization
|
|
$
|
0.39
|
|
|
$
|
(0.12
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
|
For the year ending December 31, 2008, we incurred $3.9 million of
integration, restructuring and other nonrecurring charges and $1.0
million of expense related to the resolution of litigation.
|
|
(b)
|
|
For the year ending December 31, 2008, we were able to utilize $22.0
million of net operating loss carryforwards.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1B)
|
|
The following table provides a reconciliation of year to date 2007
results as if the PDSHeart acquisition had been completed as of
January 1, 2007.
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
December 31, 2007
|
|
|
|
|
|
|
|
Total revenue - GAAP
|
|
$
|
72,992
|
|
|
PDSHeart revenue prior to acquisition - January 1 to March 7, 2007
|
|
|
4,069
|
|
|
Adjusted revenue
|
|
$
|
77,061
|
|
|
Total gross profit - GAAP
|
|
$
|
47,466
|
|
|
PDSHeart gross profit prior to acquisition - January 1 to March 7,
2007
|
|
|
2,423
|
|
|
Adjusted gross profit
|
|
$
|
49,889
|
|
|
Adjusted gross profit %
|
|
|
64.7
|
%
|
|
|
|
|
|
|
SOURCE: CardioNet, Inc.
CardioNet, Inc.
Marty Galvan
Investor Relations
800-908-7103
investorrelations@cardionet.com
|
|
