NEW YORK, NY / ACCESSWIRE / March 13, 2018 / 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; NASDAQ: MTBCP) with Target Price of $5.44.
The report is available here: March 2018 Update Note.
Based in Somerset, NJ, Medical Transcription Billing, Corp. (Nasdaq CM: 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 750 medical practices, helping more than 3,500 providers grow and track sales, streamline operations, and use data to facilitate better business and clinical decision making.
Since our last update on MTBC, the company has reported strong results for 4Q17 and the full year 2017, released March 7, 2018. Highlights include:
- 2017 Revenues grow 30% YoY. MTBC reported FY2017 revenue of $31.8mn, which represented 30% growth over $24.5mn revenues in FY2016 and the high end of the company's recently raised guidance of $31mn - $32mn.
- Record Adjusted EBITDA. MTBC reported 4Q17 record adjusted EBITDA of $1.5mn on $8.3mn in revenues during the quarter, representing a margin of 18%.
- For the full year, MTBC reported record adjusted EBITDA of $2.3mn, or 7.2% of revenues.
- Cash Flow, Balance Sheet improve. MTBC has made significant progress improving its balance sheet since we initiated coverage on the company, ending the quarter with $4.4mn in cash and minimal debt. The company generated positive operating cash flow of $1.6mn during 4Q17, which enabled management to meet its goal of reaching positive operating cash flow for the full year - which was $0.3mn in 2017.
- During 2017, MTBC raised $16.5mn in Series A non-convertible 11% preferred stock and $2.0mn in a direct share placement, which enabled it to fully repay its $10mn credit facility with Opus Bank two years prior to maturity as well as repaying the remaining MediGain purchase price plus interest of $5mn to Prudential. MTBC now has positive working capital and has secured a $5mn line of credit from Silicon Valley Bank, which is currently untapped, enabling the company to remove the going concern qualification from its audited financial statements.
Increasing Target to $5.44 for MTBC
MTBC continues to be among the strongest performers in our coverage universe. Shares have risen by 377% over the last twelve months as of the recent price of $3.66 on March 8, 2018. In our view, strong growth, an improving balance sheet, and emerging scale in the business warrant a re-rating of shares. We are increasing the target price to $5.44, which represents a valuation of approximately 2.4x 2018E EV/ revenues of $36.2mn. We see this valuation as representing a fair discount to peers taking into account MTBC's relatively smaller size but also considering the company's performance and growth prospects.
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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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