SeeThruEquity Issues Company Update on Medical Transcription Billing, Corp.

NEW YORK, NY / ACCESSWIRE / May 2, 2017 / SeeThruEquity, a leading independent equity research and corporate access firm focused on smallcap and microcap public companies, today announced that it has issued a company update on Medical Transcription Billing, Corp. (NASDAQ CM: MTBC).

The note is available here: MTBC May 2017 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 over 830 medical practices, helping more than 2,800 providers grow and track sales, streamline operations, and use data to facilitate better business and clinical decision making.

Investment Highlights

MTBC recently released a positive pre-announcement for 1Q17, with highlights as follows:

1Q17 revenues came in at $8.2mn, which was up approximately 60% from 1Q16 and versus $8.8mn in a seasonably strong 4Q16.
In the announcement, MTBC CEO Mahmud Haq reiterated guidance for revenues of more than $30mn and EBITDA of between $2.0mn and $2.5mn.

MTBC pre-announces positive 1Q17 results

On April 17, 2017 MTBC pre-announced positive results for 1Q17. The company indicated that sales were expected to rise by approximately 60% year-over-year to $8.2mn with “significantly improved” net loss and adjusted EBITDA. The growth was primarily driven by the recent acquisition of MediGain LLC, a Texas-based medical billing specialist, and its subsidiary, Millennium Practice Management Associates, LLC, a New Jersey-based medical billing company. Additionally, in the announcement, MTBC CEO noted that the company was experiencing strong momentum from its organic sales initiatives as well as improved margins following integration.

MTBC reiterates outlook

MTBC also reiterated its outlook for the year. The company sees revenue rising to $30-$31mn versus 2016 revenues of $24.5mn, with adjusted EBITDA guidance of $2mn – $2.5mn. MTBC is working to streamline costs from MediGain and expects to return to generating adjusted EBITDA in 2Q17. This compares to our estimate of $32mn in revenue and adjusted EBITDA of $2.1mn.

The main driver for the top line growth had been the impact of the MediGain acquisition, which is MTBC’s largest acquisition since its IPO. According to MTBC management, MediGain adds approximately 200 customers and $10mn in annualized revenue to the company. With 1Q17 results above $8mn and management stating that the company was experiencing momentum with organic sales initiatives, we have growing confidence that the company can achieve the guided range.

Price target unchanged at this time

We are not making changes to the model or price target at this time. Our model already reflects MTBC’s outlook for 2017, for revenues of $32mn, with adjusted EBITDA of $2.1mn. MTBC had previously announced that it would pursue a reverse stock split and is seeking financing. We will review the valuation and price target following these corporate actions.

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.

SeeThruEquity is approved to contribute its research reports and estimates to Thomson One Analytics (First Call), the leading estimates platform on Wall Street, as well as Capital IQ and FactSet. SeeThruEquity maintains one of the industry’s most extensive databases of opt-in institutional and high net worth investors. The firm is headquartered in Midtown Manhattan in New York City.

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SOURCE: SeeThruEquity

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