TORONTO, April 23, 2019 (GLOBE NEWSWIRE) — VitalHub Corp. (the “Company” or “VitalHub”) (TSXV: VHI) announced today it has filed its Interim Condensed Consolidated Financial Statements and Management’s Discussion and Analysis report for the quarter ended December 30, 2018 with the Canadian securities authorities. These documents may be viewed under the Company’s profile at www.sedar.com.
When asked to comment on the results of Q4 and all of 2018, VitalHub CEO Dan Matlow said, “In 2018, the VitalHub significantly evolved from a small and fragile software start-up into a robust, developed firm with a solid foundation for future success and continued growth. Through the integration of six companies, VitalHub now possesses the customers, recurring revenue base, management experience, and leading software solutions to advance in a progressive fashion. During Q4, we continued to grow as we added some significant customer contracts, while remaining EBITDA positive.”
Revenue for the three months ended December 31, 2018 was $2,215,911, representing an increase of 206.9% over revenues of $721,989 in the same period last year, and an increase of 4.60% over revenues of $2,118,093 in Q3/2018. Revenue for the year ended December 31, 2018 was $9,113,840 representing an increase of 695.0% over revenues of $1,146,391 from the previous year. This increase is primarily a result of acquisitions, new customer contracts as highlighted below, and the inclusion of $1,613,362 of perpetual license revenue from a customer for the HI Next software during the year.
EBITDA (defined as earnings before interest, taxation, depreciation and amortization) for the three months ended December 31, 2018 was $333,195 compared to EBITDA of ($953,544) in Q4/2017, and $155,794 in Q3/2018. For the year ended December 31, 2018, EBITDA was $837,304 compared to ($2,319,803) in the same period last year. EBITDA is a non-IFRS measure.
Adjusted EBITDA (defined as earnings before interest, taxation, depreciation, amortization, and share based compensation) for the three months ended December 31, 2018 was $441,335 compared to adjusted EBITDA of ($481,659) in Q4/2017, and $296,403 in Q3/2018. For the year ended December 31, 2018, adjusted EBITDA was $1,509,306 compared to ($1,760,719) in the same period last year. Adjusted EBITDA is a non-IFRS measure.
Net Loss for the three months ended December 31, 2018 was ($112,574) as compared to ($293,434) in Q3/2018. For the year ended December 31, 2018 the net loss was ($862,433) as compared to ($2,380,860) in the prior year.
The Company defines Annualized Contract Value (“ACV”) of recurring revenue as the contracted annual renewable software license fees and maintenance services. The ACV of recurring revenue at December 31, 2018 was $4,486,680 as compared to $4,273,773 at September 30, 2018, an increase of 4.9%, which includes approximately $125,000 from the Province of Nova Scotia. ACV is a non-IFRS measure.
During the last quarter of 2018, the Company signed a five-year agreement with the Province of Nova Scotia, with options to extend for a total of five additional years, to license VitalHub’s TREAT client management software to support the Department of Community Services (“DCS”). VitalHub’s TREAT software was selected following an extensive and thorough evaluation process. Once deployed across all programs, the TREAT software will support DCS and affiliated service provider employees and offer online access to DCS Services for the citizens of the Province. This agreement represents a significant and material event for VitalHub. The five-year contract value includes a combination of recurring license revenue and professional services delivered over five years, which together are expected to equal approximately $9 million (CAD) over the initial term.
The B Care Solution was sold to The Salvation Army Toronto Grace Health Centre. The revenue associated with this project is anticipated to exceed $1M with approximately 60% of that total allocated to software licensing. For the year ended December 31, 2018 $158,000 of perpetual fees were recognized
The Company also signed a contract to provide its Long Term Care solution to the Elliott Community, a long-term care home and retirement living residential facility based in Guelph, Ontario. The VH LTC mobile app will allow Elliott Community front line care givers to become truly mobile, providing fingertip access to what used to be manual paper forms, schedules, task lists, etc., integrating smartphone and tablet technology into clinical workflow and providing the ability to document and record critical resident information at the point of care.
Subsequent to the year end on January 18, 2019, the Company completed a non-brokered private placement (the “offering”) of units (“units”) with the former founders and management team of Aastra Technologies Limited (the “Investors”). The offering was completed at a price $0.16 per unit for gross proceeds of $3.3 million and a total of 20,625,000 units issued.
Subsequent to the year end on March 20, 2019, the Company completed its fifth acquisition. The Company purchased all of the assets of the Oak Group, which included all of the issued and outstanding share capital in the Oak Group’s wholly-owned subsidiary, The Oak Group (UK) Limited. The Oak Group is a software and service provider of its propriety ‘Making Care Appropriate for Patients’ (“MCAP”) System and was ranked first (based on combined quality and value scores) on the NHS England framework and is licensed on more U.K. healthcare beds than any other product of its class.
VitalHub develops and supports mission-critical healthcare information systems in the Mental Health (Child, Youth and Adult), Long Term Care, Community Health Service, Home Health and Hospital sectors. VitalHub technologies include Blockchain, Mobile, and Web-Based Assessment and EHR solutions.
VitalHub’s aim is to create high-value, secured solutions enabling interoperability among existing health data systems. VitalHub is primarily focused on working with organizations in the Mental Health, Acute and Long-Term Care space, to further extend organization’s applications across the continuum of care, powered by the security, efficiency, and trust of Blockchain technology.
The Company has a robust two-pronged growth strategy, targeting organic growth opportunities within its product suite, and pursuing an aggressive M&A plan. Currently, VitalHub serves 200+ clients across North America. VitalHub is based in Toronto, Canada, with an offshore development hub in Sri Lanka. The Company is publicly traded on the TSX Venture Exchange under the symbol “VHI”.
This press release includes forward-looking statements regarding the Corporation and its business, which may include, but is not limited to, statements with respect to the appointment of a new directors. Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “is expected”, “expects”, “scheduled”, “intends”, “contemplates”, “anticipates”, “believes”, “proposes” or variations (including negative variations) of such words and phrases, or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Such statements are based on the current expectations of the management of each entity, and are based on assumptions and subject to risks and uncertainties. Although the management of each entity believes that the assumptions underlying these statements are reasonable, they may prove to be incorrect. The forward-looking events and circumstances discussed in this release, including the share consolidation proposal, may not occur by certain specified dates or at all and could differ materially as a result of known and unknown risk factors and uncertainties affecting the companies, including risks regarding the technology industry, failure to obtain regulatory or shareholder approvals, market conditions, economic factors, the equity markets generally and risks associated with growth and competition. Although the Corporation has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. No forward-looking statement can be guaranteed. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and the Corporation undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.
Chief Executive Officer, Director