CINCINNATI, OHIO–(Marketwired – Jan. 29, 2018) –

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Patient Home Monitoring Corp. (the “Company” or “PHM“) (TSX VENTURE:PHM), a healthcare services company with operations in the U.S., today announced its organic growth plan for 2018 and beyond. The Company also outlined its M&A plan focused on aggregating patients in existing or complimentary markets as well as its technology investment plans.

The Company has operations across 26 locations in thirteen states spanning the Midwest and East Coast, services more than 75,000 unique patients annually, and currently averages more than 3 shipments, deliveries, or set-ups per patient for a total of just under 20,000 deliveries or set-ups per month.

“Our total growth strategy has three components, all working in concert with each other to dramatically increase revenues and profits quickly: acquisitions, technology and organic growth,” said CEO and Chairman Greg Crawford. “The key to our new strategy is to have a dominant market share in certain regional markets, through both acquisitions and taking market share directly from competitors, by deploying existing advanced logistics technologies that provide faster and more reliable service for the patients.”

“While acquiring small tuck-in regional companies has the byproduct of quickly adding revenues and profit growth quarterly, its main purpose is regional market domination through aggregating patients to leverage our technology investments in delivering a superior product at an increasingly larger margin. We expect the aging population in the U.S. to create a modest organic growth rate of approximately 4% to 5%. Once we complete the development of our technology plans, I think we can amplify our annual organic growth rate to 20% or greater without significant patient acquisition costs as we capture market share beyond 70% in the markets we serve. In terms of the markets we are targeting, if we can complete several acquisitions annually I believe we can cross the 0 million revenue mark over the coming years.”

M&A Pipeline

There are more than 6,000 providers in the highly fragmented and largely regionally focused industry in which PHM competes. The Company has executed NDAs and is in active negotiations to secure a letter of intent (LOI) with several companies. The new M&A strategy is highly focused, only targeting companies in the Midwest and East Coast. Target companies have revenue between million and million, EBITDA margins between 5% and 10% which can be significantly improved post-acquisition, and have a large distribution volume which can be leveraged for technology improvement.

Management and the Board combined have more than 50 years of experience in healthcare acquisitions and integration, have completed more than billion in transactions, and have integrated more than 0 million in acquired revenue.

“There’s no shortage of acquisition targets in our fragmented market,” said Director Mark Greenberg. “As a market leader, we are one of the few large providers with the infrastructure and capital structure to pursue acquisitions and therefore we think can secure these deals at favorable pricing. I expect that we can secure our first LOI in the next sixty to ninety days. Greg and the operational team have indicated they have the capabilities to integrate an acquisition each quarter which allows us to be aggressive in our expansion and plan for a very active M&A year.”

The Company is in the due diligence process with several companies including one target located in the east coast region with more than million in revenue and with EBITDA margins between 5% and 10%. It is predominately respiratory, and has significant market share in their region operating out of one high-volume location. The Company is also in due diligence with another tuck-in acquisition located in the south east with more than million in revenue and also with EBITDA margins between 5% and 10%. It is also predominately respiratory, and operates out of four locations which offers an opportunity for future distribution consolidation with other regional locations.

“There are larger acquisitions which come our way,” continued Mr. Greenberg. “These are generally between million and million in revenue. While our focus is tuck-in smaller acquisitions, if we can find the right deal that meets our acquisition requirements, at the right pricing and acquisition structure, we may also complete larger acquisitions.”

Technology Initiatives & Forward Guidance

The Company’s strategy is to leverage technology to increase patient compliance by making ongoing training and patient follow up easier on the patient, and improve the speed and ease of equipment and device delivery and set-up.

“We think that we can increase patient compliance by making ongoing training and patient follow up easier on the patient,” said Mr. Crawford. “Almost all non-compliant patients are a result of improper equipment use, which we would be able to address faster, easier, and more cost effectively than our competition on a telemedicine platform. We think this will significantly differentiate us from our competition, and because we offer a fully diversified product offering, we can be the reliable singular choice for regional hospitals and physician groups.”

“Additionally, competitors can take days or weeks to set-up a patient on their necessary equipment after placing the order, receiving the shipment, then physically delivering the equipment to the patient or asking the patient to come to a retail location. We believe we can displace this established process with automated ordering, drop shipping equipment, and remotely training the patient. Across every other market, brick and mortar locations are disappearing and being replaced by online purchasing and quick delivery. We think we can be the first mover to bring this business model to the chronic disease management industry. This way the patient gets serviced faster, and more efficiently than any other regional player.”

The Company released the following financial information:

“I can understand how it can be confusing for our shareholders to make sense of our current operational results given the last fiscal year reports PHM as a standalone division, whereas all of the previously released quarterly results are not,” said Mr. Crawford. “Additionally, while the revenue reported reflects our operations, the Company is fully burdened with all of the corporate spinoff expenses, among other costs, over the last year. Therefore, we want to provide the market with an overview of our first quarter highlights.”

First quarter ending December 31, 2017 highlights:

• Annualized first quarter revenue was between million and million
• Increased the number of unique patients served by 16% compared to the previous quarter
• Increased the number of sale orders by 8.3% compared to the previous quarter
• Increased respiratory resupply orders by 58.9% between 2017 and 2016 calendar years, including first quarter results
• Gross margins increased compared to the previous fourth fiscal quarter of 2017

“With the infrastructure now in place, and the corporate spinoff behind us, I think we are well positioned for Adjusted EBITDA growth this year,” said Mr. Crawford. “We also anticipate our Adjusted EBITDA improving over the coming quarters as a result of technology advancements that improve our quality of patient care and reduce costs. We are pleased with our first quarter operational results having increased key operational metrics including the number of patients served and the number of sale orders. We look forward to releasing more details about our first and second quarters, which we are working to get out to the market quickly, to give shareholders a better understanding of the progress we are making now that we don’t have the limitations we had before the spinoff was complete.”

The Company will release its first quarter fiscal 2018 results on or before March 1, 2018. The fiscal 2017, year-end audited financial results of the Company’s standalone business including the full burden of corporate spinoff and other expenses are available on SEDAR, www.sedar.com, for the year ended September 31, 2017.

ABOUT THE NEW PATIENT HOME MONITORING CORP.

PHM provides in-home monitoring and disease management services for patients in the United States healthcare market. It seeks to continue to expand its offerings and to use technology to dominant market share in certain regional markets, through both acquisitions and taking market share directly from competitors, by deploying existing advanced logistics technologies that provide faster and more reliable service for the patients.

The primary business objective of PHM is to create shareholder value by offering a broader range of services to patients in need of in-home monitoring and chronic disease management. PHM’s organic growth strategy is to increase market share in its existing locations by making life easier on the patient, the rendering physician, and improving quality of care.

Forward-Looking Statements

Certain statements contained in this press release constitute “forward-looking information” as such term is defined in applicable Canadian securities legislation. The words “may”, “would”, “could”, “should”, “potential”, “will”, “seek”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” and similar expressions as they relate to the Company, including: the Company’s growth strategy dramatically increasing revenues and profits quickly; the Company executing one or more LOI, the Company completing one or more acquisition; acquisitions increasing revenue, margin and/or growth; the Company increasing revenue to 0 million in the next two years; the Company executing an LOI in the next sixty to ninety days; the Company successfully leveraging technology to increase patient compliance and improving the speed and ease of equipment and device delivery and set-up; the Company creating an automated ordering, drop shipping equipment, and remotely training patients; the Company’s first quarter guidance; and the Company having quarterly profit growth in fiscal 2018; are intended to identify forward-looking information. All statements other than statements of historical fact may be forward-looking information. There is no assurance that the Company will complete an acquisition or any related transactions, or that an acquisition, if entered into, will reflect the exact terms set forth herein. All statements other than statements of historical fact may be forward-looking information. Such statements reflect the Company’s current views and intentions with respect to future events, and current information available to the Company, and are subject to certain risks, uncertainties and assumptions.
Material factors or assumptions were applied in providing forward-looking information, including: the first quarter financial numbers being in line with preliminary findings; the Company executing a letter of intent with one of the acquisition targets as anticipated in the next sixty to ninety days; the Company reaching 0M in annual revenue through acquiring 0M in revenue and organically growing to reach the balance within the next two to three years; actual costs being in line with management’s view and estimates resulting in first quarter Adjusted EBITDA exceeding 7.5% of revenue; and having first quarter financial results prepared by February 28, 2018. Many factors could cause the actual results, performance or achievements that may be expressed or implied by such forward-looking information to vary from those described herein should one or more of these risks or uncertainties materialize. Examples of such risk factors include, without limitation: credit, market (including equity, commodity, foreign exchange, and interest rate) risks; liquidity; operational (including technology and infrastructure); reputational; the general business and economic conditions in the regions in which the Company operates; the ability of the Company to execute on key priorities, including the successful completion of acquisitions, business retention, and strategic plans and to attract, develop and retain key executives; difficulty integrating newly acquired businesses; the ability to implement business strategies and pursue business opportunities; low profit market segments; disruptions in or attacks (including cyber-attacks) on the Company’s information technology, internet, network access or other voice or data communications systems or services; the evolution of various types of fraud or other criminal behavior to which the Company is exposed; the failure of third parties to comply with their obligations to the Company or its affiliates; the impact of new and changes to, or application of, current laws and regulations; decline of reimbursement rates; dependence on few payors; possible new drug discoveries; a novel business model; dependence on key suppliers; granting of permits and licenses in a highly regulated business; the overall difficult litigation environment, including in the U.S.; increased competition; changes in foreign currency rates; increased funding costs and market volatility due to market illiquidity and competition for funding; the availability of funds and resources to pursue operations; critical accounting estimates and changes to accounting standards, policies, and methods used by the Company; and the occurrence of natural and unnatural catastrophic events and claims resulting from such events; as well as those risk factors discussed or referred to PHM’s disclosure documents filed with the securities regulatory authorities in certain provinces of Canada and available at www.sedar.com.
Should any factor affect the Company in an unexpected manner, or should assumptions underlying the forward-looking information prove incorrect, the actual results or events may differ materially from the results or events predicted. Any such forward-looking information is expressly qualified in its entirety by this cautionary statement. Moreover, the Company does not assume responsibility for the accuracy or completeness of such forward-looking information. The forward-looking information included in this press release is made as of the date of this press release and the Company undertakes no obligation to publicly update or revise any forward-looking information, other than as required by applicable law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

For further information please visit our website at www.phmcompanies.com.