PHM Protech Home Medical Corp

Patient Home Monitoring (PHM) Announces a Triple Digit Revenue Growth for First Quarter of Fiscal 2014; and Significant EBITDA and Cash Flow Growth for Audited Fiscal-Year 2013 Results

SAN FRANCISCO, CALIFORNIA--(Marketwired - Jan 29, 2014) - Patient Home Monitoring (PHM) (TSX-VENTURE:PHM), a profitable company focused on rolling-up annuity-based healthcare service companies in the US and Canada, today announced it has released significantly improved year-over-year audited financial statements showing a profitable and cash flow positive fiscal year ended September 30, 2013. It also released impressive revenue growth results for its unaudited report for first quarter of fiscal 2014 ended December 31, 2013.

In conjunction with the results, PHM's management provided details behind the impressive triple digit revenue growth and its continued strategy to acquire earnings accretive companies with strong patient relationships providing additional revenue opportunities.

PHM will broadcast an earnings call and webcast on Wenesday, January 29, 2014 at 12:00 pm ET to review and discuss the first fiscal quarter of 2014 and the fiscal year end results for 2013.

To listen, please visit PHM's investor website at: www.phmhometesting.com/investor/Q1_2014_Conferencecall

Q1 2014 Financial Highlights

Triple Digit Revenue Quarterly Revenue Growth and Significant Increase in EBITDA, Net Profit and Cash Flow

• 120% increase in quarterly revenues; Increased revenue from $1,040,000 to $2,363,000 from the same quarter a year ago.
• Quarterly EBITDA before patient acquisition costs of $285,000;
• Quarterly net profit before stock based compensation of $140,000;
• Generated positive cash flow of $5,050,000, an increase of $4,850,000 in cash flow compared to the same quarter a year ago.
• Working Capital increased by $9,000,000 compared to the same quarter a year ago.

"The results for the first quarter of fiscal 2014 highlight our significant revenue growth," said Mr. Bob Kusher, CEO of PHM. "In FY 2013, we accelerated profit growth and with this most recent quarter, we generated strong, triple digit revenue growth as well. We continue to focus our energies on cross selling and acquiring quality companies that can increase our patient database. The financial results from this quarter reaffirms the increasing value of PHM to its shareholders."

Full Year (Ended September 2013) Audited 2013 Financial Highlights

• Improvement of 42% of Adjusted EBITDA before patient acquisition costs(1) (operating profit) from FY 2012.
• PHM generated $297,000 in operating profit for FY 2013, compared to a loss of ($585,000) for FY2012, a swing of over $850,000.
• Generated Adjusted EBITDA to $830,000 in FY2013 from ($150,000) in FY2012, a swing of over $980,000.
• Swung to positive EPS, an increase of $0.011 per share(2)

"This was our first full year reporting profits and cash flow," said Mr. Bob Kusher, CEO of PHM. "We were able to optimize our operations to produce positive cash flow and growing profits. In the first 4 months of our FY2014, we have already increased revenues significantly through acquisitions, improving EPS and providing us a platform for increased revenue and profit through our cross selling efforts."

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

(2) EPS does not include an IFRS Fair Value of Options, Warrants and Derivative Financial Expenses (Note 13 on the financial statements).

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.

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.

Patient Home MonitoringMichael DalsinChairmanManaging Director, Stanmore Capital Partners, Inc(323) 253-3055www.phmhometesting.com