MTBC’s highly rated cloud-based and mobile platform includes proprietary electronic health records, practice management, revenue cycle management, business intelligence, patient engagement, insurance enrollment, clearinghouse, EDI solutions, and a group purchasing organization. Its leading solutions are utilized by more than 10,000 healthcare providers throughout the United States to streamline workflows, increase revenues and reduce expenses. Accurate transcripts of physicians’ dictation are vital to ensure appropriate patient care. As part of the medical chart, these documents are also important from the point of view of billing and reimbursement.
I like to use data from the most recent 12 months, which annualizes the latest 6-month earnings release, or some times, the latest annual report is already the most recent financial data. This method allows me to assess many different companies in a uniform manner using new information. Medical Transcription Billing’s latest twelve-month earnings -$10.9M, which, in comparison to the previous year’s level, has become more negative. Given that these values are somewhat nearsighted, I have created an annualized five-year value for Medical Transcription Billing’s net income, which stands at -$4.8M. This doesn’t look much better, as earnings seem to have consistently been getting more and more negative over time.
Adjusted
EBITDA was $22.1 million, an increase of $11.2 million or 103% from $10.9 million last year. Adjusted EBITDA reflects the cost savings
from previous acquisitions. Medical records can be dictated either via a digital recorder, toll free number or off your smartphone. Our medical transcription service is designed to improve the way you work. We support small and large clinics, multi-specialty clinics and group practices.
These
forward-looking statements are neither historical facts nor assurances of future performance. In addition, there is uncertainty
about the spread of the Covid-19 virus and the impact it may have on the Company’s operations, the demand for the Company’s
services, and economic activity in general. Our
operations involve risks and uncertainties, many of which are outside our control, and any one of which, or a combination of which, could
materially affect our results of operations and whether the forward-looking statements ultimately prove to be correct. The company was initially focused on transcription and manual medical billing, but has become a provider of healthcare IT solutions, analytics and cloud-based revenue cycle management services. The name change better reflects its mission, said founder and Executive Chairman Mahmud Haq. Purchased intangible assets are amortized over their estimated useful lives and generally cannot
be changed or influenced by management after the acquisition.
Management
uses adjusted EBITDA, adjusted operating income, adjusted operating margin, and non-GAAP adjusted net income to provide an understanding
of aspects of operating results before the impact of investing and financing charges and income taxes. Adjusted EBITDA may be useful
to an investor in evaluating our operating performance and liquidity because this measure excludes non-cash expenses as well as expenses
pertaining to investing or financing transactions. Management defines “adjusted EBITDA” as the sum of GAAP net income (loss)
before provision for (benefit from) income taxes, net interest expense, other (income) expense, stock-based compensation expense, depreciation
and amortization, integration costs, transaction costs, impairment charges and changes in contingent consideration. Transaction costs are upfront costs related to acquisitions and related transactions, such as brokerage fees, pre-acquisition
accounting costs and legal fees, and other upfront costs related to specific transactions.
The company has offices in 10 states and employs more than 300 team members. Orion is a unit of Constellation Healthcare Technologies Inc. that initiated voluntary proceedings under Chapter 11 of the U.S. Contingent consideration represents the amount payable to the sellers of certain acquired businesses
based on the achievement of defined performance measures contained in the purchase agreements.
Unlike other medical transcription companies in the US, we have no long-term contracts. Management
considers all of these non-GAAP financial measures to be important indicators of our operational strength and performance of our business
and a good measure of our historical operating trends, in particular the extent to which ongoing operations impact our overall financial
performance. Set
forth below is a reconciliation of our non-GAAP adjusted operating income and non-GAAP adjusted operating margin to our GAAP operating
income (loss) and GAAP operating margin. Our earnings press releases containing such non-GAAP reconciliations
can be found in the Investor Relations section of our web site at ir.carecloud.com. We interface seamlessly with your EHR/EMR system so that your medical documentation is up-to-date and accurate.
Contingent consideration is adjusted to
fair value at the end of each reporting period, and changes arise from changes in the forecasted revenues of the acquired businesses. We provide medical transcription services for hospitals of any size for any medical specialty using advanced systems and technology. We perform stringent quality checks to ensure error-free transcripts. We are a Managed Outsource Solutions pepperstone demo account Service with several years of extensive experience in multi-specialty transcription. Since 2002, we have been providing services to healthcare entities ranging from individual physicians, clinics, and hospitals to medical management companies across the USA. We can further examine Medical Transcription Billing’s loss by researching what has been happening in the industry as well as within the company.
For
purposes of determining non-GAAP adjusted net income per share, we used the number of common shares outstanding as of December 31, 2021
and 2020. This
press release contains various forward-looking statements within the meaning of the safe harbor provisions of the U.S. These statements relate to anticipated future events, future results of operations or future financial
performance.
The transaction is expected to close within 60 to 90 days, subject to customary closing conditions. The purchase price is expected to be between $10 million and $12 million, and is subject to adjustment or the receipt of higher offers. Medical Transcription expects trading diary to pay the price from its available cash balance. Revenue
for 2021 was $139.6 million, an increase of 33% compared to $105.1 million in 2020. Our integrated EMR support is ideal to assist physicians who have transitioned to EMR systems from dictation platforms.
For our complete transcription process ranging from dictation capture to document distribution and storage, our team combines outstanding transcribing skills with the latest technology applications to meet your digital transcription requirements. Our transcriptionists have years of experience in transcribing all types of medical records and medical documents including patients medical histories, examination reports, discharge summaries, chart notes, psychiatric evaluations, x-ray reports and more. Our certified medical transcriptionist has experience in providing transcription for a broad range of medical specialties and sub-specialties including radiology, family practice, neurology, physical therapy and others.
Non-GAAP
adjusted net income for 2021 was $18.5 million or $1.24 per share, an increase of $10.0 million over non-GAAP adjusted net income
of $8.5 million in 2020. Non-GAAP adjusted net income excludes non-cash expenses such as depreciation and amortization as well as the
gain from the change day trade the world in contingent consideration. Our medical transcription services are adhered to HIPAA guidelines and standards. We make sure that the patient’s health related information we deal with is safe and protected. We rank among the best medical transcription service providers in the industry.
For
additional information, please visit our website at To view CareCloud’s latest investor presentations,
read recent press releases, and listen to interviews with management, please visit ir.carecloud.com. As
of December 31, 2021, the Company had approximately $10.3 million of cash, including $1 million of restricted cash which relates to the
medSR acquisition. During the fourth quarter 2021, cash flow from operations was approximately $6.1 million. Our net working capital
on December 31, 2021 was approximately $6.0 million.
Quality transcription is important for medical practices, patients as well as insurance firms that review medical claims. Outsourcing your transcription tasks to one of the top medical transcription companies in USA can free up your time to focus on quality patient care. As a medical transcription company known for providing customized medical transcription solutions, MOS Medical Transcription Services provides transcription to healthcare clients across the United States and worldwide.
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