SeeThruEquity Issues Update on Medical Transcription Billing Corp. (MTBC) with Target Price of $5.44
NEW YORK, NY / ACCESSWIRE / May 21, 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. (MTBC) (MTBCP) with a Target Price of $5.44.
The report is available here: May 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 3,400 providers grow and track sales, streamline operations, and use data to facilitate better business and clinical decision making.
Investment Highlights
MTBC reported strong 1Q18 results on May 15, 2018, with attractive margins and record net income. Highlights include:
1Q18 revenues reach $8.3mn. MTBC reported 1Q18 revenue of $8.3mn, showing sequential growth over Q417 despite a seasonally challenging calendar first quarter due to annual insurance deductibles. On an annual basis, revenues increased from $8.2mn in 1Q17 to $8.3mn in 1Q18.
Positive Adjusted EBITDA for third consecutive quarter. MTBC reported 1Q18 adjusted EBITDA of $1.0mn, which represented 11.7% of revenues and a significant improvement from a loss of ($0.3mn) in 1Q17. 1Q18 marked the third consecutive quarter of adjusted EBITDA at MTBC.
Positive Adjusted Net Income. MTBC reported positive Adjusted Net Income of $0.7mn, versus ($0.9mn) in 1Q17. The company also reported modestly positive GAAP Net Income of $75,000, marking the first time the company has posted positive GAAP Net Income as a public company.
Solid Balance Sheet. MTBC has made significant progress improving its balance sheet since we initiated coverage on the company. The company generated positive operating cash flow of $0.7mn during 1Q18, and had $13mn of cash on the balance sheet at the time of its earnings release, as well as an untapped credit line of $5mn.
Orion deal has potential to increase revenue base by 50%. With the MediGain acquisition successfully integrated, MTBC has announced that it has made a stalking horse bid for certain assets and contracts of Orion HealthCorp and 13 of its affiliate companies. Orion's offerings include revenue cycle, practice management, and group purchasing organization, offered to independent healthcare practices and hospitals throughout the country. Orion maintains offices in 10 states and has 300 employees. The deal offers the opportunity for MTBC to add scale at an attractive price, with potential to increase revenues by 50%. The sale is being administered by the by the United States Bankruptcy Court for the Eastern District of New York and is expected to close by the end of the summer.
Maintain target of $5.44 for MTBC
We maintain our target for MTBC at this time. Shares have appreciated 78% over the last twelve months as the company has experienced a re-rating of shares having emerged from distress with improving results. Clearly, MTBC is executing in its core business, and we will revisit our valuation and target following the outcome of its Orion bid.
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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."
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 approach to deliver equity research of microcap and smallcap companies. SeeThruEquity has also been the host of acclaimed investor conferences that are the ultimate event for publicly traded companies with market capitalizations less than $1 billion since 2012.
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.
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