Earlier this week, SeeThruEquity, a leading independent equity research and corporate access firm, issued an update on Medical Transcription Billing, Corp. (NASDAQ: MTBC; MTBCP). In the report, SeeThruEquity took a closer look at MTBC’s recently completed acquisition of medical billing firm MediGain, LLC, as well as its affiliate, New Jersey-based Millennium Practice Management, LLC. The transaction was characterized as MTBC’s largest acquisition to date, as well as its fourth deal so far this year and its tenth since 2014. With a total purchase price of $7 million, SeeThruEquity expects MTBC to deploy some of its cash on hand, which was reported at $6.7 million at the end of the second quarter of this year, while also seeking to raise additional capital in order to finalize the MediGain transaction in the coming months.
To view the full SeeThruEquity report, visit http://nnw.fm/fk1Sa
With news of the MediGain acquisition, SeeThruEquity updated its estimates for MTBC’s financial performance as 2016 winds to a close. In a news release announcing the acquisition, MTBC indicated that it expects MediGain to add significant revenues and spur the company’s financial growth in 2017 while also contributing to its positive adjusted EBITDA. As a result, SeeThruEquity updated its 2017 revenue forecast for MTBC to $35 million and adjusted its EBITDA estimate to $2.5 million. The research firm also revised its 2016 estimates to account for a later-than-expected close to the MediGain acquisition. SeeThruEquity’s 2016 revenue and adjusted EBITDA estimates are now $24.5 million and $0.5 million, respectively, leaning on the assumption of seasonal strength in the second half of the year.
“We are very pleased to have acquired MediGain’s assets at a compelling valuation that represents a significant discount as compared to the industry norm of at least one times annualized revenues for a company of MediGain’s size,” Bill Korn, chief financial officer of MTBC, stated in a recent news release. “Moreover, we believe that our newly acquired business will contribute to our positive Adjusted EBITDA by the end Q1 2017.”
Despite adjusting its revenue and EBITDA figures, SeeThruEquity left its target PPS unchanged in its latest report. According to the update, the research firm continues to view MTBC “as an attractive company in the healthcare technology industry that offers exposure to a massive market opportunity at a compelling valuation.” As a result, SeeThruEquity has placed a price target of $3.85 for MTBC. This figure represents potential upside of about 375 percent when compared to Wednesday morning’s price of $0.81 per share.
For more information, visit www.MTBC.com
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