MedQuist outlines 2011 revenue outlook
Medical transcription company MedQuist Holdings Inc. on Monday said that it expects 2011 revenue will range from $441 million to $444 million, reflecting the contribution of recent acquisitions.
The company also anticipates adjusted earnings before interest, taxes, depreciation and amortization will be between $115.5 million and $118 million.
MedQuist projects its clinical documentation volume for the year will be between 3.4 billion to 3.5 billion lines.
The company completed a $48.4 million cash-and-stock acquisition of technology company M(asterisk)Modal in the third quarter. M(asterisk)Modal has $15 million in annualized continuing revenue, excluding revenues from MedQuist.
It also acquired All Type Medical Transcription Services and JLG Medical Transcription Services, medical transcription providers with $13 million in annualized continuing revenues combined.
MedQuist said it expects fourth quarter results will reflect the impact of the acquisitions.
Meanwhile, MedQuist said that its board of directors has approved a $25 million stock buyback plan authorized for a period of six months.
In addition, MedQuist said it has amended its credit line to expand the cash portion limit from $25 million to $50 million a year and from $75 million to $150 million over the life of the loan. The company wanted to eliminate any restrictions on the use of common stock for acquisitions and to add a $25 million accordion feature.
MedQuist shares gained 76 cents, or 9.7 percent, to $8.61 during the regular trading session.