 Reaffirms Full-Year Revenue and Adjusted EBITDA Guidance with Implied Year-over-year Increases of Over 63 and 48, Respectively SOMERSET, N.J., Aug. 13, 2020 GLOBE NEWSWIRE -- MTBC, Inc. the Company or MTBC Nasdaq: MTBC Nasdaq: MTBCP, a leading provider of proprietary, cloud-based healthcare IT solutions and services, today announced financial and operational results for the second quarter ended June 30, 2020, while reaffirming its full-year 2020 guidance. The Companys management will conduct a conference call with related slides today at 8:30 a.m. Eastern Time to discuss these results and managements outlook.2020 Outlook Highlights: Forecasting record revenue and adjusted EBITDA for the second half of 2020 Reaffirmed full-year revenue outlook of 105-107 million, or 63-66 growth over 2019 Reaffirmed full-year adjusted EBITDA outlook of 12-13 million, or 48-60 growth year-over-year Our clients patient encounter volumes and charges have nearly returned to the pre-COVID levels of early Q1 2020 Second Quarter 2020 Financial Results: Revenue of 19.6 million, 17 growth over Q2 2019 GAAP net loss of 4.8 million Adjusted EBITDA of 191,000 During the first half of 2020, we closed the two largest acquisitions in our history, while simultaneously closing more new organic business by the mid-point of this year than during any prior full-year, said Stephen Snyder, MTBCs Chief Executive Officer. As we supported our healthcare provider clients the true heroes during this pandemic we were pleased to grow our second quarter revenues year-over-year by 17, while reporting our thirteenth quarter of positive adjusted EBITDA. We expect to increase both our full-year revenue and adjusted EBITDA by well over 50, as compared to 2019.During Q2, we continued to enhance our digital assets, including expanded telehealth, patient experience management tools, and robotic process automation. We also onboarded hundreds of talented team members who will help us continue to increase our market share, said A. Hadi Chaudhry, MTBCs President. We see significant opportunities during the second half of the year and are focused on exiting the second half of the year with annualized revenues of more than 130 million and an adjusted EBITDA margin of nearly 20.First Half 2020 Financial Results Revenue for the first half of 2020 was 41.4 million, an increase of 30 as compared to 31.8 million in the first half of 2019, said Bill Korn, MTBCs Chief Financial Officer. We also signed new clients, including MTBC Force partnerships, which will yield annual recurring revenues of greater than 8 million, which is more than we signed during any prior full year.For the first half of 2020, the Companys GAAP net loss was 7.3 million, or 1.07 per share, compared to a GAAP net loss of 1.1 million in the first half of 2019. GAAP net loss includes non-cash amortization and depreciation expense of 3.7 million, stock-based compensation expense of 3.2 million, transaction and integration costs of 1.1 million. It also includes 361,000 of impairment and unoccupied lease charges related to excess leased office space assumed during two recent acquisitions.Non-cash depreciation and amortization expense increased by approximately 2.1 million year-over-year, primarily as a result of our acquisition of CareCloud in January, and accounts for half our GAAP net loss, said Bill Korn. There is also one month of amortization expense for Meridian, which means that amortization in future quarters will increase. Most of the purchase price for our acquisitions is accounted for as goodwill or intangible assets. The intangible assets are amortized over four years. This amortization does not represent a cash expense, but is an important non-cash line item in our GAAP net income or loss.Bill Korn continued, Our stock-based compensation increased by approximately 1.6 million year-over-year, driven in part by both our higher share price and grants we made to employees who joined us during 2020 as part of our CareCloud acquisition. We anticipate additional grants to employees from Meridian during the second half of the year. In addition, our first half of 2020 results included approximately 562,000 of transaction costs related to Meridian and CareCloud, and we incurred 538,000 of integration costs to achieve future efficiencies from acquisitions. This includes the cost of winding down subcontractors and reduction in force severance, as well as exiting from facilities we no longer need, as we utilize our technology and cost-effective employees offshore. We expect to see the benefit of these cost savings during the third and fourth quarters, as indicated by our full-year adjusted EBITDA outlook.Adjusted EBITDA for the first half of 2020 was 958,000, as compared to 2.7 million in the first half of 2019. Bill Korn noted, Our first half 2020 revenue was reduced, since there were less routine doctor visits due to COVID-19. While we pursued the normal post-acquisition cost-cutting we always do, we did not reduce our investments in RD or sales and marketing, and did not furlough or downsize our offshore team, choosing to place ourselves in a position to take advantage of growth opportunities. So the increase in our GAAP net loss and the reduction in our adjusted EBITDA was anticipated.Second Quarter 2020 Financial ResultsRevenue for second quarter 2020 was 19.6 million, an increase of 2.8 million or 17 from the second quarter of 2019. Bill Korn noted: Since approximately two-thirds of our revenues are directly tied to our clients revenue levels, the widespread COVID-19 lockdowns that reduced the number of patient encounters also negatively impacted our quarterly revenues. However, by July, we saw the weekly volume of patient visits return to within 6 of the weekly averages during January and February.MTBCs second quarter 2020 GAAP net loss was 4.8 million, as compared to a net loss of 771,000 in the same period last year. The GAAP net loss reflects 2.4 million of non-cash depreciation and amortization expenses, 1.9 million of stock-based compensation, and 456,000 of integration and transaction costs related to recent acquisitions. The GAAP net loss was 0.65 per share, based on the net loss attributable to common shareholders, which takes into account the preferred stock dividends declared during the quarter. Adjusted EBITDA for second quarter 2020 was 191,000, or 1 of revenue, compared to 1.1 million in the same period last year. This was our thirteenth consecutive quarter of positive adjusted EBITDA, despite the fact that doctor visits and our revenue were reduced due to COVID-19.Bill Korn remarked, We expect to see a significant increase in adjusted EBITDA during the third and fourth quarters. Nationwide, we expect to see higher levels of economic activity than we did in April and May, and with patient volumes closer to normal levels, our average revenue per provider will be higher than it was in the second quarter. During the third quarter, you will see a reduction in CareClouds expenses so that the business is adding to our overall profitability, while Meridian will be neutral. During fourth quarter, Meridian will be accretive to profits, and CareCloud will continue to achieve additional cost savings, so expect as big an increase in adjusted EBITDA from third to fourth quarter as youll see from second to third quarter.Cash Balance and CapitalAs of June 30, 2020, the Company had approximately 12.5 million of cash.During July 2020, the Company raised net proceeds of 25.6 million by issuing approximately 1.1 million shares of its non-convertible redeemable Series A Preferred Stock. The Series A Preferred Stock is perpetual, trades on the Nasdaq Global Market under the ticker MTBCP, pays monthly cash dividends at the rate of 11 per annum and can be redeemed at the Companys option at 25.00 per share starting in November 2020.2020 Full Year GuidanceMTBC previously provided and reaffirmed the following forward-looking guidance for the fiscal year ending December 31, 2020:For the Fiscal Year Ending December 31, 2020 Forward-Looking Guidance Revenue 105 107 million Adjusted EBITDA 12 13 million The Company recently raised its full year 2020 revenue guidance to 105 to 107 million, which represents year-over-year growth of approximately 65 almost twice as high as its 6-year CAGR through 2019 of 35. We believe that we are on track to generate 130 to 135 million in revenue on an annualized basis during the second half of 2020. Meridian and CareCloud account for the majority of the growth and we also signed more new business during the first half of 2020 than we signed in all of 2019, said Bill Korn. As this new business goes live, it will contribute to our record revenue during the second half of 2020, he added. There is no way to estimate the impact that COVID-19 will have on the U.S. economy during the second half of the year, but even our most conservative assumption calls for revenue growth of at least 60 during 2020. We expect adjusted EBITDA to be 12 to 13 million for full year 2020, representing growth of 48 to 60 over 2019 adjusted EBITDA, as the Company integrates the Meridian and CareCloud acquisitions. The actions we have already taken have significantly reduced CareClouds operating expenses, and should increase the adjusted EBITDA contribution for the second half, and we have started on this process with Meridian in parallel, consistent with previous acquisitions, said Bill Korn. Conference Call InformationMTBC management will host a conference call today at 8:30 a.m. Eastern Time to discuss the second quarter 2020 results. 