SeeThruEquity Issues Update on Medical Transcription Billing, Corp. (NASDAQ: MTBC)

NEW YORK, NY / ACCESSWIRE / August 24, 2016 / 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 CM: MTBC).

The report is available here: MTBC August 2016 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 strong 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 more than 1,700 providers grow and track sales, streamline operations, and use data to facilitate better business and clinical decision making. MTBC reported 2Q16 results on August 11, 2016, with highlights as follows:

Revenues grew sequentially for the first time in two years as acquired customer attribution appears to be reaching a trough.
MTBC generated positive adjusted EBITDA for the third consecutive quarter and has generated $80,000 of Adj. EBITDA in 1H16.
MTBC ended 2Q16 with cash on hand of $6.6mn and raised $1.4mn in net proceeds from a Preferred Stock offering following the end of the quarter.

Highlights from the update note are as follows:

Sequential growth, positive Adj. EBITDA in 2Q16

MTBC generated modest positive adjusted EBITDA during the quarter of approximately $14,000 and had generated $80,000 in the first half of 2016. While the results did not provide the EBITDA leverage we were looking for, they did represent the third consecutive quarter of positive adjusted EBITDA. On the top line, MTBC reported revenues of $5.2mn in 2Q16, which marked the first sequential top line growth for the company in two years. We are hopeful that the turn signals a trough of customer attrition after the integration of Omni Medical Billing, Practicare, and CastleRock. Although management did not issue specific guidance for the remainder of the year, MTBC did state that it expected continued growth throughout the remainder of 2016 and was planning on remaining adjusted EBITDA positive. Following these results we are adjusting our revenue and EBITDA estimates to $27mn and $0.8mn, respectively.

MTBC pursuing additional acquisitions

MTBC has completed three acquisitions thus far in 2016, led by Texas-based Gulf Coast Billing, which carries with it an annualized revenue base of approximately $3mn and is expected to be quickly accretive. On April 30, MTBC announced the acquisition of Renaissance Physician Services, a Tennessee-based company that specializes in medical billing that had approximately $0.6mn of revenues over the last year. In 3Q16 the company announced a small acquisition with growth potential, WFS Services Inc. WFS Services is a hospital-based revenue cycle management company. We believe MTBC is actively looking for new targets, and management stated on its results call that it hoped to make another announcement later this year.

Maintaining target of $3.85 for MTBC

We were encouraged by 2Q16 results at MTBC’s and are leaving our target unchanged at this time. We continue to view MTBC as an attractive company in the healthcare technology industry that offers exposure to a massive market opportunity at a compelling valuation. If achieved, the price target of $3.85 represents potential upside of 375% from the recent price of $0.81.

Please review important disclosures at www.seethruequity.com.

About Medical Transcription Billing, Corp.

Medical Transcription Billing, Corp. 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 throughout the United States. Its integrated Software-as-a-Service (or SaaS) platform helps its 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.

For more information visit www.seethruequity.com.

Contact:

Ajay Tandon
SeeThruEquity
info@seethruequity.com

SOURCE: SeeThruEquity

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