American Medical Alert Corporation Reports Strong Second Quarter 2008 Results

  
    
  
  
    
      American Medical Alert Corp. (NASDAQ: AMAC) a provider of healthcare 
      communication services and advanced telehealth monitoring technologies, 
      today announced operating results for the quarter and six months ended 
      June 30, 2008, the highlights of which are as follows:
    
    
      
        Company-wide net income increased approximately 18% for the six months 
        ended June 30, 2008 as compared to same period last year.
      
      
        EBITDA continues to improve on a year over year basis as evidenced 
        with the latest 13% increase through June 30, 2008.
      
    
    
      
        Company balance sheet as of June 30, 2008 remains strong with working 
        capital at approximately $3.9 million and debt to equity ratio of .22 
        to 1.
      
    
    
      Revenues for the quarter ended June 30, 2008, consisting primarily of 
      monthly recurring revenues (MRR), increased 7% to $9,539,321 as compared 
      to $8,898,806 for the same period in 2007. Net income for the quarter 
      ended June 30, 2008 increased 12% to $458,026 or $.05 per diluted share 
      as compared to $407,260 or $.04 per diluted share for the same period in 
      2007.
    
    
      Revenues for the six months ended June 30, 2008 increased 9% to 
      $19,175,066, as compared to $17,601,642 for the same period in 2007. Net 
      income for the six months ended June 30, 2008 increased 18% to $910,383 
      or $0.09 per diluted share as compared to a net income of $773,968 or 
      $0.08 per diluted share for the previous year. Net Income for the 
      trailing twelve months ended June 30, 2008 and 2007 was $1,650,647 and 
      $1,511,954 respectively, representing an increase of 9%.
    
    
      Earnings before interest, taxes and depreciation and amortization (“EBITDA”) 
      for the six months ended June 30, 2008 increased 7% to $3,847,278 as 
      compared to $3,579,732 for the same period in 2007. EBITDA for the 
      trailing twelve months ended June 30, 2008 and 2007 was $7,711,062 and 
      $6,851,362 respectively, a 13% increase.
    
    
      Jack Rhian, AMAC’s Chief Executive Officer and 
      President, explained, “The results of the past 
      three and six months of 2008 support our Fiscal 2008 projections issued 
      last week. Within our HSMS division we are achieving excellent and 
      consistent gross profitability. During the second quarter the Company 
      was in the final stages of a system consolidation at two of our call 
      center locations. As we enter the second half of 2008, we expect to 
      realize improved profitability as a direct result of this TBCS operating 
      consolidation initiative. With respect to revenue enhancement, we plan 
      to stay focused on our previously declared growth drivers that include 
      our Walgreens Ready Response PERS program, Medication Management and our 
      TBCS Patient Appointment Concierge Solutions and Clinical Trials 
      Recruitment initiatives.”
    
    
      The Company invites investors and others to listen to the conference 
      call live over the Internet or by dialing in to 877-407-0782 at 10:00 
      a.m. ET.
    
    
      
        
           
        
        
          What:
        
        
           
        
        
          American Medical Alert Corp. Second Quarter 2008 Results
        
      
      
        
        
        
          When:
        
        
        
        
          Tuesday August 12, 2008, 10:00 a.m. ET
        
      
      
        
        
        
          Where:
        
        
        
        
          
            http://www.investorcalendar.com/IC/CEPage.asp?ID=132844
          
        
      
      
        
        
        
          How:
        
        
        
        
          Log on to the web at the address above, and click on the
        
      
      
        
        
        
        
        
        
        
          audio link or dial in 877-407-0782 to participate.
        
      
    
    
      About American Medical Alert Corp.
    
    
      AMAC is a healthcare communications company dedicated to the provision 
      of support services to the healthcare community. AMAC's product and 
      service portfolio includes Personal Emergency Response Systems (PERS) 
      and emergency response monitoring, electronic medication reminder 
      devices, disease management monitoring appliances and healthcare 
      communication solutions services. AMAC operates nine communication 
      centers under local trade names: H-LINK OnCall, Long Island City, NY and 
      Clovis NM, North Shore TAS, Port Jefferson, NY, Live Message America, 
      Audubon, NJ, ACT Teleservice, Newington, CT and Springfield, MA, MD 
      OnCall, Cranston RI and Capitol Medical Bureau Rockville, MD, American 
      MediConnect and Phone Screen Chicago, IL to support the delivery of high 
      quality, healthcare communications.
    
    
      Use of Non-GAAP Financial Information
    
    
      In addition to the results reported in accordance with accounting 
      principles generally accepted in the United States (“GAAP”) 
      included in this press release, the Company has provided information 
      regarding certain non-GAAP financial measure. This measure is “earnings 
      before interest, taxes and depreciation and amortization (“EBITDA”)”. 
      Such information is reconciled to its closest GAAP measure in accordance 
      with the Securities and Exchange Commission rules and is included in the 
      attached supplemental data.
    
    
      Management believes that the non-GAAP financial measure used in this 
      press release is useful to both management and investors in their 
      analysis of the Company’s financial position 
      and results of operations. Management believes that EBITDA is a useful 
      measure of the Company's financial performance as it is an indicator of 
      the Company's ability to generate cash flow to make acquisitions, 
      reinvest in new telehealth products and liquidate liabilities. 
      Management also uses EBITDA for planning purposes to determine 
      appropriate levels of operating and capital investments.
    
    
      EBITDA is a non-GAAP financial measure and although management and some 
      members of the investment community utilize it to measure financial 
      performance, EBITDA should not be viewed as a substitute for financial 
      data prepared in accordance with GAAP or as a measure of profitability. 
      Additionally, the non-GAAP financial measure as presented by AMAC may 
      not be comparable to similarly titled measures reported by other 
      companies.
    
    
      Forward Looking Statements
    
    
      This press release contains forward-looking statements that involve a 
      number of risks and uncertainties. Forward-looking statements may be 
      identified by the use of forward-looking terminology such as "may," 
      "will," "expect," "believe," "estimate," "anticipate," "continue," or 
      similar terms, variations of those terms or the negative of those terms. 
      Important factors that could cause actual results to differ materially 
      from those indicated by such forward-looking statements are set forth in 
      the Company's filings with the Securities and Exchange Commission (SEC), 
      including the Company's Annual Report on Form 10-K, the Company's 
      Quarterly Reports on Forms 10-Q, and other filings and releases. These 
      include uncertainties relating to government regulation, technological 
      changes, costs relating to ongoing FCC remediation efforts, our 
      expansion plans, and product liability risks.
    
    
      Statements of income for the three and six months ended June 30, 2008 
      and 2007 and balance sheets as of June 30, 2008 and December 31, 2007 
      are attached.
    
    
      AMAC SELECTED FINANCIAL DATA
    
    
      
        
        
        
           
        
        
          Three Months Ended
        
        
           
        
        
          Six Months Ended
        
      
      
        
        
        
        
        
          
            6/30/2008
          
        
        
           
        
        
          
            6/30/2007
          
        
        
        
        
          
            6/30/2008
          
        
        
           
        
        
          
            6/30/2007
          
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Revenues
        
        
        
        
          $
        
        
          9,539,321
        
        
        
        
          $
        
        
          8,898,806
        
        
        
        
          $
        
        
          19,175,066
        
        
        
        
          $
        
        
          17,601,642
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net Income
        
        
        
        
          $
        
        
          458,026
        
        
        
        
          $
        
        
          407,260
        
        
        
        
          $
        
        
          910,383
        
        
        
        
          $
        
        
          773,968
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net Income per Share
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Basic
        
        
        
        
          $
        
        
          0.05
        
        
        
        
          $
        
        
          0.04
        
        
        
        
          $
        
        
          0.10
        
        
        
        
          $
        
        
          0.08
        
      
      
        
          Diluted
        
        
        
        
          $
        
        
          0.05
        
        
        
        
          $
        
        
          0.04
        
        
        
        
          $
        
        
          0.09
        
        
        
        
          $
        
        
          0.08
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Basic Weighted Average
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Shares Outstanding
        
        
        
        
        
        
          9,417,701
        
        
        
        
        
        
          9,261,738
        
        
        
        
        
        
          9,411,886
        
        
        
        
        
        
          9.232,958
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Diluted Weighted Average
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Shares Outstanding
        
        
        
        
        
        
          9,717,985
        
        
        
        
        
        
          9,692,433
        
        
        
        
        
        
          9,708,325
        
        
        
        
        
        
          9,635,350
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          CONDENSED BALANCE SHEET
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
          June 30,
        
        
        
        
          December 31,
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
          
            2008
          
        
        
        
        
          
            2007
          
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
          (Unaudited)
        
        
        
        
        
        
        
        
        
      
      
        
          ASSETS
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Current Assets
        
        
        
        
        
        
        
        
          $
        
        
          8,744,704
        
        
        
        
          $
        
        
          8,672,362
        
        
        
        
        
      
      
        
          Fixed Assets – Net
        
        
        
        
        
        
        
        
        
        
          11,221,914
        
        
        
        
        
        
          10,799,313
        
        
        
        
        
      
      
        
          Other Assets
        
        
        
        
        
        
        
        
        
        
          15,317,327
        
        
        
        
        
        
          15,481,546
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Total Assets
        
        
        
        
        
        
        
        
          $
        
        
          35,283,945
        
        
        
        
          $
        
        
          34,953,221
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Current Liabilities
        
        
        
        
        
        
        
        
          $
        
        
          4,884,971
        
        
        
        
          $
        
        
          5,070,893
        
        
        
        
        
      
      
        
          Deferred Income Tax
        
        
        
        
        
        
        
        
        
        
          937,000
        
        
        
        
        
        
          947,000
        
        
        
        
        
      
      
        
          Long-term Debt
        
        
        
        
        
        
        
        
        
        
          3,975,000
        
        
        
        
        
        
          4,694,316
        
        
        
        
        
      
      
        
          Long-term portion of capital lease
        
        
        
        
        
        
        
        
        
        
          10,291
        
        
        
        
        
        
          32,425
        
        
        
        
        
      
      
        
          Other Liabilities
        
        
        
        
        
        
        
        
        
        
          579,342
        
        
        
        
        
        
          537,922
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Total Liabilities
        
        
        
        
        
        
        
        
          $
        
        
          10,386,604
        
        
        
        
          $
        
        
          11,282,556
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Stockholders’ Equity
        
        
        
        
        
        
        
        
        
        
          24,897,341
        
        
        
        
        
        
          23,670,665
        
        
        
        
        
      
      
        
          Total Liabilities and Stockholders’ 
          Equity
        
        
        
        
        
        
        
        
          $
        
        
          35,283,945
        
        
        
        
          $
        
        
          34,953,221
        
        
        
        
        
      
    
    
      Earnings before interest, taxes and depreciation and amortization for 
      the six months and trailing twelve months ended June 30, 2008 and 2007.
    
    
      
        
        
        
           
        
        
        
        
           
        
        
          Add:
        
        
           
        
        
        
        
           
        
        
          Less:
        
        
           
        
        
        
      
      
        
        
        
        
        
          
            6/30/08
          
        
        
        
        
          
            12/31/2007
          
        
        
        
        
          
            Subtotal
          
        
        
        
        
          
            6/30/2007
          
        
        
        
        
          Total
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net Income
        
        
        
        
          910,383
        
        
        
        
          1,514,232
        
        
        
        
          2,424,615
        
        
        
        
          773,968
        
        
        
        
          1,650,647
        
      
      
        
          Add Backs:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Taxes
        
        
        
        
          633,000
        
        
        
        
          1,146,000
        
        
        
        
          1,779,000
        
        
        
        
          596,000
        
        
        
        
          1,183,000
        
      
      
        
          Interest
        
        
        
        
          166,868
        
        
        
        
          481,166
        
        
        
        
          648,034
        
        
        
        
          255,136
        
        
        
        
          392,898
        
      
      
        
          Depreciation & Amort.
        
        
        
        
          2,137,027
        
        
        
        
          4,302,118
        
        
        
        
          6,439,145
        
        
        
        
          1,954,628
        
        
        
        
          4,484,517
        
      
      
        
        
        
        
        
           
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          EBITDA
        
        
        
        
          3,847,278
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
          7,711,062
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
          Add:
        
        
        
        
        
        
        
        
          Less:
        
        
        
        
        
      
      
        
        
        
        
        
          
            6/30/07
          
        
        
        
        
          
            12/31/2006
          
        
        
        
        
          
            Subtotal
          
        
        
        
        
          
            6/30/2006
          
        
        
        
        
          Total
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net Income
        
        
        
        
          773,968
        
        
        
        
          1,262,529
        
        
        
        
          2,036,497
        
        
        
        
          524,543
        
        
        
        
          1,511,954
        
      
      
        
          Add Backs:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Taxes
        
        
        
        
          596,000
        
        
        
        
          869,000
        
        
        
        
          1,465,000
        
        
        
        
          448,000
        
        
        
        
          1,017,000
        
      
      
        
          Interest
        
        
        
        
          255,136
        
        
        
        
          394,613
        
        
        
        
          649,749
        
        
        
        
          175,748
        
        
        
        
          474,001
        
      
      
        
          Depreciation & Amort.
        
        
        
        
          1,954,628
        
        
        
        
          3,515,262
        
        
        
        
          5,469,890
        
        
        
        
          1,621,483
        
        
        
        
          3,848,407
        
      
      
        
        
        
        
        
           
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          EBITDA
        
        
        
        
          3,579,732
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
          6,851,362