VitalHub Reports Revenue of $2,770,000 for Q1 2020
TORONTO, May 27, 2020 (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 three months ended March 31, 2020 and 2019 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 Q1 2020, VitalHub CEO Dan Matlow said, “Our first response to COVID-19 was to take immediate and swift action in ensuring the safety of our staff, and that our teams were properly equipped to continue to effectively support our customers. All of our employees in North America, the United Kingdom and Sri Lanka have successfully adjusted to a work from home environment. We began to see the impact of COVID-19 in the middle of the quarter, with requests coming in from clients to extend the utility of some of our offerings toward assisting in the pandemic response, as well as a general slow-down of implementations and business, consistent with the market. Overall, we expect to see a slow-down of activity over the next few quarters. The Company believes it will continue to be cash flow positive even with the reduced activity.”
We would like to highlight the following insights:
Due to the high amount of non-cash items on the Company’s income statement relating to the amortization of intangibles from acquisitions, we focus primarily on Adjusted EBITDA to track our performance. We continue to make great progress, with Adjusted EBITDA at 10% of revenues.
Annual contract value grew to $7,486,925.
COMPANY HIGHLIGHTS
Revenue for the three months ended March 31, 2020 was $2,770,000 as compared to $2,444,310 for the three months ended March 31, 2019, an increase of $325,690 or 13.3%.
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 March 31, 2020 was $7,486,925 as compared to $5,226,623 at March 31, 2019, an increase of 30%. ACV is a non-IFRS measure.
The Company defines acquisition recurring revenues as gross recurring revenues of the companies acquired at the time of acquisition and organic revenues as revenue over and above the acquisition recurring revenues. For the three months ended March 31, 2020, organic revenue represented 36% of total revenue (Q4/2019 – 40%, Q1/2019 – 52%), with the remaining 64% representing acquisition revenue (Q4/2019 – 60%, Q1 2019 – 48%). Acquisition and organic revenue are non-IFRS measures.
EBITDA (defined as earnings before interest, taxation, depreciation and amortization) for the three months ended March 31, 2020 was ($12,688) as compared to $567,531 for the three months ended March 31, 2019, and ($704,462) for Q4 2019. EBITDA is a non-IFRS measure.
Adjusted EBITDA (defined as earnings before interest, taxation, depreciation, amortization, share based compensation, business acquisition, restructuring and integration costs and other one time costs) for the three months ended March 31, 2020 was $282,291 as compared to $656,765 for the three months ended March 31, 2019, and $42,254 for Q4 2019. Adjusted EBITDA is a non-IFRS measure.
Adjusted EBITDA as a percentage of revenue for the three months ended March 31, 2020 was 10% as compared to 27% for the three months ended March 31, 2019. Adjusted EBITDA as a percentage of revenue is a non-IFRS measure.
On March 17, 2020, the Company closed a bought deal offering with gross proceeds of $15,311,340. A total of 8,506,300 common shares of the Company were sold at a price of $1.80 per common share.
On March 19, 2020, the Company announced the deployment of its patient flow solution to address the needs of the COVID-19 pandemic. The solution is being rolled out at Windsor Regional Hospital’s two Campuses (Met and Ouellette) as well as at Hotel-Dieu Grace HealthCare, Bluewater Health, Erie Shores Health Care and Chatham-Kent Health Alliance.
The Company also announced the first deployment of its COVID-19 electronic screening tool to the Region of Waterloo-owned by Sunnyside Home Long-Term Care, in support of their response to the deepening COVID-19 crisis. VitalHub has leveraged its “DOCit” mobile app, which was specifically designed with these kind of screening initiatives in mind, to enable the rapid development of its COVID-19 screening solution.
ABOUT VITALHUB:
VitalHub develops mission-critical technology solutions for Health and Human Services providers in the Mental Health (Child through Adult), Long Term Care, Community Health Service, Home Health, Social Service and Acute Care sectors. VitalHub technologies include Blockchain, Mobile, Patient Flow, Web-Based Assessment and Electronic Health Record solutions.
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”.
CAUTIONARY STATEMENT:
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, 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.