Patient Home Monitoring (PHM) Announces a Profitable First Quarter of Fiscal 2013 with Strong Cash Flow; and Audited Fiscal Year 2012 Results

SAN FRANCISCO, CALIFORNIA--(Marketwire - Jan. 28, 2013) - Patient Home Monitoring (PHM) (TSX VENTURE:PHM), a company focused on in-home cardiology healthcare services, today announced audited results for its fiscal year ended September 30, 2012. It also released unaudited results for its first quarter of fiscal 2013 ended December 31, 2012. In conjunction with the results, PHM's management provided details behind the impressive triple digit revenue growth in fiscal 2012 as well as strong first quarter cash flow and profitability.

PHM will broadcast an earnings call and webcast on Tuesday, January 29, 2013 at 12:00 pm ET to review and discuss the first fiscal quarter of 2013 and the fiscal year end results for 2012.

To listen, please visit PHM's investor website at:

www.phmhometesting.com/investor/Q1_2013_Conferencecall

Q1 2013 Highlights

Quarterly Net Profit

• Swung to a net profit of $96,449 from a loss of $65,229 in the previous quarter. An increase in profit of $161,678 for the quarter.

Quarterly Cash Flow

• Generated positive cash flow of $199,853, an increase of $410,028 in cash flow compared to the previous quarter.

PHM's Adjusted EBITDA⁽¹⁾ (Operating Profit) Trend from Q1 FY 2012 to Q1 FY 2013

Adjusted EBITDA (EBITDA excluding options expenses)
Q1 FY 12		Q2 FY 12		Q3 FY 12	Q4 FY 12	Q1 FY 13
($74,767	)	($113,726	)	$28,489	$53,001	$254,943

"The results for the first quarter of fiscal 2013 highlight our increasing profitability and cash flow." said Dr. Jaime Gerber MD, CEO of PHM. "In FY 2012, we accelerated profit growth and with this most recent quarter, we are pleased to have generated our first full quarter of profit. The strong cash flow from this quarter reaffirms the increasing value of PHM to its shareholders."

"We are happy to announce that in FY 2012, we increased top line revenue by 170% despite an 11% reimbursement cut," continued Dr. Gerber, "PHM operates in an underpenetrated market that remains poised for growth, with over 3.5 million patients available for enrollment. Our focus on service quality and fiscal efficiency creates value for our patients, physicians, and shareholders. We have reached a critical mass in our annuity stream revenue where each additional patient drives significant annual cash flow and profitability."

Full Year Audited 2012 Highlights

Revenues

• Increased annual revenue to $3,901,058 from $1,443,708, a 170% increase over the prior year.

Profits

• Generated $990,312 in Adjusted EBITDA before patient acquisition costs⁽¹⁾ (operating profit), a swing of $1,420,990 from fiscal 2011.
• Narrowed Adjusted EBITDA losses to $107,004 in 2012 from $1,378,312 in 2011.
• Increased quarterly gross profit margin to 67.3% from 59.5% in FY 2011 in the face of an 11% reimbursement cut.

For complete financial results, please see PHM's filings at www.sedar.com.

⁽¹⁾ Operational Profitability is defined as Adjusted EBITDA before patient acquisition costs. In calculating Adjusted EBITDA before patient acquisition costs certain items are excluded from net loss including interest, taxes, amortization, non-cash stock-based compensation, and patient acquisition costs. Please refer to the "Non-IFRS Measures" section of PHM's MD&A for further discussion on these operational measures at:

http://www.phmhometesting.com/investor/public/dl/2013_Q1_MD&A.pdf

		Q1 FY 12			Q2 FY 12			Q3 FY 12			Q4 FY 12			Q1 FY 13		FY 2011			FY 2012
Net Gain (Loss)	$	(165,384	)	$	(193,268	)	$	(115,882	)	$	(65,229	)	$	96,449	$	(1,641,001	)	$	(539,763	)
Add Back: Interest Expense	$	1,619		$	25,332		$	27,406		$	15,818		$	28,060	$	-		$	70,175
Add Back: Amortization	$	59,233		$	67,712		$	79,219		$	86,984		$	86,763	$	121,221		$	293,148
Add Back: Stock Based Comp.	$	29,764		$	(13,502	)	$	37,746		$	15,428		$	43,671	$	141,468		$	69,436
Adjusted EBITDA	$	(74,768	)	$	(113,726	)	$	28,489		$	53,001		$	254,943	$	(1,378,312	)	$	(107,004	)
Add Back: Patient Acquisition Costs	$	293,133		$	269,351		$	254,553		$	280, 279		$	144,073	$	947,634		$	1,097,316
Adjusted EBITDA before Pat. Acq.	$	218,365		$	155,625		$	283,042		$	333,280		$	399,016	$	(430,678	)	$	990,312

About PHM

PHM is a healthcare services company focused on providing in-home testing for patients on blood thinner medications such as Coumadin^® or warfarin. Medicare recently expanded reimbursement for in-home patient self testing (PST) of blood coagulation levels. PHM has a unique value proposition to cardiology groups that manage patients on blood thinners, focusing on systemization to enroll patients in PST. This unique, systemized approach creates an opportunity for physician groups to operate more efficiently, increasing revenue to their clinic while providing a higher standard of care for patients.

Information in this news release that is not current or historical factual information may constitute forward-looking information within the meaning of securities laws. Implicit in this information, particularly in respect of the future outlook of PHM and anticipated events or results, are assumptions based on beliefs of PHM's senior management as well as information currently available to it. While these assumptions were considered reasonable by PHM at the time of preparation, they may prove to be incorrect. Readers are cautioned that actual results are subject to a number of risks and uncertainties, including the availability of funds and resources to pursue operations, 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, competition, low profit market segments as well as general economic, market and business conditions, and could differ materially from what is currently expected.