VitalHub Reports Positive Earnings in Q1 2019
TORONTO, May 24, 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 March 31, 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 2019, VitalHub CEO Dan Matlow said, “With our Q1 results, we are beginning to see some of the synergistic effects of our acquisition and organic growth strategy,” said Dan Matlow, CEO of VitalHub Corp., “as demonstrated by improvements across many key financial indicators, particularly in achieving positive earnings this quarter. While we are showing an increase in professional services revenue, we have yet to recognize the recurring licensing revenue from our key provincial agreement with Nova Scotia, which will start on the go live of Phase 1 of the project. We are excited to approach the second half of 2019, as we continue along our positive growth trajectory, and toward building shareholder value.”
COMPANY HIGHLIGHTS
Revenue for the three months ended March 31, 2019 was $2,444,310 as compared $2,923,466 in the same period last year (includes a one-time perpetual license fee of $1,613,362) and compared to $2,215,911 in Q4/2018 a 10.3% increase and $2,118,093 in Q3/2018.
Net Income for the three months ended March 31, 2019 was $61,545 as compared to $6,350 in the same quarter last year and ($112,574) in Q4/2018, and ($293,434) in Q3/2018.
EBITDA (defined as earnings before interest, taxation, depreciation and amortization) for the three months ended March 31, 2019 was $558,036 compared to EBITDA of $381,628 in the same period last year, $333,195 in Q4/2018, and $155,794 in Q3/2018. 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 March 31, 2019 was $647,270 compared to adjusted EBITDA of $750,876 in in the same period last year, $441,355 in Q4/2018, and $296,403 in Q3/2018. Adjusted EBITDA is a non-IFRS measure.
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, 2019 was $5,226,623 as compared to $4,486,680 at December 31, 2018, an increase of 14%. ACV is a non-IFRS measure.
The Company defines acquisition revenue as gross revenues of the Company at the time of acquisition and organic revenue as revenue over and above the acquisition revenues. For the three months ended March 31, 2019, organic revenue represented 35% of total revenue (Q1/2018 – 1%, Q4/2018 – 29%), with the remaining 65% representing acquisition revenue (Q1/2018 – 43%, which includes a one time perpetual license which represents 56% of gross revenues, Q4/2018 – 71%). Acquisition and organic revenue are non-IFRS measures.
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.
The Company sold both its TREAT and B Care solutions to the government of Yukon Health and Social services (“H&SS). The Government of Yukon’s initial commitment includes a 3-yr term with an option to extend the size and scope of usage. TREAT and B Care are being licensed as a hosted service (SaaS). VitalHub is anticipating revenue during the initial term of approximately $500,000.
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.
The Company licensed its newly acquired software MCAP to Hamad Medical Corporation (“HMC”) in Qatar to support the implementation of Qatar’s National Continuing Care Strategy.
The Company signed a contract to provide its TREAT solution to The Hawskesbury and District General Hospital as part of the regionalized expansion of the TREAT EHR through Ottawa Hospital, 15 organizations are now eligible to sign a Participation Agreement allowing them to license the TREAT software.
ABOUT VITALHUB:
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”.
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, 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.