NEW YORK, NY / ACCESSWIRE / August 15, 2017 / SeeThruEquity, a leading independent equity research and corporate access firm focused on smallcap and microcap public companies, today announced it has issued an update on Medical Transcription Billing, Corp. (NASDAQ: MTBC) and increases target price to $4.00.
The report is available here: MTBC August 2017 Update Note.
Based in Somerset, NJ, Medical Transcription Billing, Corp. (NASDAQ: MTBC) is a healthcare information technology company that provides a fully integrated suite of web-based solutions and related business services to hospital-based and private healthcare providers. MTBC became a public company in July 2014, after several years of growth through both acquisitions and organic means as a private healthcare technology company. Through its flagship software-as-a-service (SAAS) platform Practice Pro, MTBC "brings big practice solutions" to over 750 small and medium sized medical practices, helping approximately 2,600 providers grow and track sales, streamline operations, and use data to facilitate better business and clinical decision making.
Investment Highlights
MTBC recently reported strong results, with highlights as follows:
- 2Q17 revenues of $7.8mn rose by 49% YoY, while 1H17 revenues were up 55% versus 1H16, coming in at approximately $16mn.
- 2Q17 adjusted EBITDA was $0.47mn, or 6% of revenues, representing the highest achieved by MTBC in any quarter as a public company.
- On July 27, 2017, MTBC CEO and Chairman Mahmud Haq announced that the company was increasing its outlook to full year revenues in a range of $31mn-32mn, with adjusted EBITDA expected to be between $2.0mn - $2.5mn
MTBC results show strong growth from MediGain
MTBC reported 55% YoY growth in the first half of 2017, with revenues of approximately $16mn. The company increased its revenue outlook to a range of $31mn to $32mn, up from the prior range of $30mn to $31mn. MTBC's growth was primarily driven by the inclusion of MediGain - MTBC's largest acquisition - in overall results. Revenue appears to be tracking in line with our expectations, which were slightly ahead of management's prior guidance, and are now in line with the high end of the new range. On their call with investors, management stated that the company was experiencing better than expected retention from MediGain customers.
MTBC generates record adjusted EBITDA in 2Q17
MTBC management followed through on a commitment to return to positive adjusted EBITDA by 2Q17. In fact, the company's $0.47mn in adjusted EBITDA represented 6% of revenues and was the highest level reported in a quarter since MTBC became a public company. The company's outlook of $2.0mn - $2.5mn of adjusted EBITDA suggests that this figure is expected to rise notably in 2H17. MTBC also raised capital primarily in the form of additional shares of its non-convertible Preferred Stock during the period, using the proceeds to reduce overall debt. MTBC had 11.5mn common shares outstanding as of August 3, 2017 with $5.8mn of cash on hand at the end of 2Q17, $10.2mn of debt outstanding, and $15.5mn in non-convertible, 11% Preferred Stock.
Increasing target to $4.00 for MTBC
MTBC has been a strong performer in our coverage universe, rising 84% over the last twelve months as of the recent price of $1.45 on August 8, 2017. The target of $4.00 represents a valuation of approximately 2.1x 2017E EV/ revenues, which we view as fair taking into account growing Adjusted EBITDA and the financial leverage at the company.
Please review important disclosures at www.seethruequity.com.
About Medical Transcription Billing, Corp.
MTBC is a healthcare information technology company that provides a fully integrated suite of proprietary web-based solutions, together with related business services, to healthcare providers practicing in ambulatory care settings. Our integrated Software-as-a-Service (or SaaS) platform helps our customers increase revenues, streamline workflows and make better business and clinical decisions, while reducing administrative burdens and operating costs. MTBC's common stock trades on the NASDAQ Capital Market under the ticker symbol "MTBC," and its Series A Preferred Stock trades on the NASDAQ Capital Market under the ticker symbol "MTBCP." www.mtbc.com
About SeeThruEquity
Since its founding in 2011, SeeThruEquity has been committed to its core mission: providing impactful, high quality research on underfollowed smallcap and microcap equities. SeeThruEquity has pioneered an innovative business model for equity research that is not paid for and is unbiased. SeeThruEquity is the host of acclaimed investor conferences that are the ultimate event for publicly traded companies with market capitalizations less than $1 billion.
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Contact:
Ajay Tandon
SeeThruEquity
[email protected]
SOURCE: SeeThruEquity