OREANDA-NEWS. Medical Transcription Billing, Corp. (Nasdaq:MTBC), a leading provider of proprietary, web-based electronic health records, practice management and mHealth solutions, today announced financial and operational results for first quarter 2016, while reaffirming guidance for 2016.

“During the first quarter, we made solid strides toward achieving our 2016 growth and EBITDA objectives,” said Mahmud Haq, MTBC’s Chairman and Chief Executive Officer. “Our management team continued to execute our long term business strategy of growth through acquisitions on favorable terms, while delivering a second consecutive quarter of positive EBITDA and finishing the quarter with $7.4 million of growth capital.”

“We are strategically deploying our growth capital, most recently with the acquisition of Tennessee-based Renaissance Physician Services on April 30 and our acquisition of Texas-based Gulf Coast Billing, Inc. in mid-February,” said Stephen Snyder, MTBC’s President. “We were pleased to acquire Renaissance and Gulf Coast at attractive valuations, with purchase terms that closely align our collective interests in revenue retention and growth,” he continued. He further explained, “We look forward to deploying additional growth capital as we finalize agreements with other potential sellers that will align with our 2016 growth and profitability objectives.”

Revenues for the three months ended March 31, 2016 were $5.1 million, compared to $6.1 million in the same period last year.

“Year over year, our revenue was down, principally due to loss of clients during 2015 from the companies we purchased at the time of the IPO,” said Bill Korn, MTBC’s Chief Financial Officer. “Our first quarter revenue is seasonally our lowest in terms of revenue and profits, similar to other revenue cycle management companies, due to annual deductibles, which most insurance plans contain. We recognize revenue when the doctor is paid, so while providers wait for patient payments, our revenues are delayed. We anticipate reporting revenue growth during the remainder of the year.”

For the three months ended March 31, 2016, Adjusted EBITDA was $65,000, or 1.3% of revenue, compared to Adjusted EBITDA of ($710,000), or (11.6%) of revenue, in the same period last year. Direct operating costs were reduced by 35%, from $3.5 million to $2.3 million, and general and administrative expenses declined from $3.1 million to $2.9 million.

For the three months ended March 31, 2016, our non-GAAP Adjusted Net Income was ($217,000), or ($0.02) per share, which marked a significant improvement compared to the non-GAAP Adjusted Net Income of ($854,000), or ($0.08) per share, in the same period last year.

For the three months ended March 31, 2016, the GAAP Net Loss was $2.0 million, or $0.21 per share, compared to a GAAP Net Loss of $1.2 million, or $0.12 per share, in the same period last year. While the GAAP Net Loss increased, the difference is primarily the result of the $829,000 non-cash reduction in the value of the shares held in escrow for the sellers of the three companies we acquired at the time of our IPO.

The difference of $2.0 million between Adjusted EBITDA and the GAAP Net Loss in first quarter 2016 reflects $1.2 million of non-cash amortization and depreciation expense, $489,000 of stock-based compensation, $212,000 of integration and transaction costs related to recent acquisitions, $43,000 of provision for taxes, and $134,000 of net interest expense, offset by a $45,000 decrease in the contingent consideration liability.