KELOWNA, BC, Nov. 12, 2015 /CNW/ - (TSX-V: QHR) QHR
Corporation ("QHR" or the "Company"), a leader in the
Healthcare Information Technology sector, has announced financial
results for its quarter ended September 30,
2015, reporting year over year revenue growth of 13% to
$7.1 million for Q3 2015 compared to
$6.2 million in Q3 2014. The
Company also reported a 20% increase in recurring revenue run rate
to $24.1 million at the end of Q3
2015 compared to $20.1 million at the
end of Q3 2014. For comparison purposes and in light of the recent
sale of the Company's RCM Assets, the revenue and expenses from
these assets have been removed from continuing operations.
Third Quarter 2015 Highlights:
- Third quarter revenues were a record $7.1 million, a 13% increase over Q3 2014 revenue
of $6.2 million.
- Increased recurring revenue run rate to $24.1 million, up 20% from $20.1 million, at the end of Q3 2014.
- Recurring revenue for the quarter was 85% of total revenue,
compared to 81% in Q3 of 2014.
- Adjusted EBITDA(1) for Q3 2015 of $0.8 million or 10.7% of revenue.
- Basic Earnings (Loss) per Share from continuing operations of
($0.01) for the quarter compared to
$0.01 for Q3 2014.
- The Company closed the quarter with $11.3 million of cash and receivables.
"This quarter delivered increases in both sales and installation
volumes which are leading indicators of growth for QHR. We are
seeing record levels of electronic medical records system adoption
across the country and, as the largest single platform EMR in
Canada, our momentum continues to
build." said Mike Checkley,
President & CEO of QHR Corporation.
During the quarter the Company completed the sale of
substantially all of its RCM Assets to a US-based billing and
clearinghouse company. In this transaction, QHR's
wholly-owned subsidiary sold substantially all of its RCM Assets,
including customer relationships, products, related intellectual
property, and some of its employees, in exchange for a cash
purchase price in an amount to be determined and paid over an
earn-out period of 36 months from closing. QHR does not
anticipate that proceeds from this transaction will be material.
The primary benefit of this transaction lies in projected
cost savings, as the sale was part of an overall restructuring
effort to save $1.6 to $2.0 million
in annualized expenses.
"I am pleased to see our financials continue to improve, mostly
through organic sales which is our highest margin growth area. With
the restructuring costs substantially complete, our attention turns
to generating improved margins and scaling the core business" said
Jerry Diener, CFO of QHR.
Revenue
Record revenue of $7.1 million for
Q3 2015 was largely driven by organic growth of the Accuro EMR
product. Revenue increased by $819,132 or 13% from $6.2
million during Q3 2014.
Net Earnings (Loss)
The net loss for the quarter ended September 30, 2015 was $1,149,856, primarily driven by the $850,105 loss from discontinued operations.
Cash Flow
For the quarter ended September 30,
2015, operating activities resulted in net cash outflows of
$861,978. The cash outflow for Q3 in
2015 was driven primarily by working capital requirements.
At September 30, 2015, the Company
had cash and cash equivalents in the amount of $7.6 million and trade and other receivables of
$3.7 million. The Company is
not using any of its operating line and has no outstanding
debt.
Full financial statements together with Management's Discussion
and Analysis are available on SEDAR.
About QHR Corporation
QHR is a leader in Healthcare Technology, empowering providers
and connecting patients. With an 11-year track record
offering what is now the single leading Electronic Medical Records
platform in Canada, QHR has a
suite of complementary offerings that empower health professionals
and drive the Company's growth. The Company's technologies and
services enable secure medical records management for clinical
environments, empower health providers with tools for virtual care
including secure video and messaging, and tools for clinic
management including scheduling, billing, and patient management,
Health providers choose QHR to drive efficiencies within their
practice and improve the quality of care delivered to patients.
(1) Management uses a non-IFRS measure
of EBITDA and Adjusted EBITDA as supplemental measures to evaluate
the performance of the Company. EBITDA is defined as earnings
before income tax expense, financing costs, depreciation,
amortization and stock-based compensation. Adjusted EBITDA is
defined as EBITDA adjusted with acquisition, transition and
integration costs and other expenses that do not impact core
operating performance.
Management believes that EBITDA and Adjusted EBITDA provide
important measures of the Company's operating performance because
they allow management, investors and others to evaluate and compare
the Company's core operating results, including its return on
capital and operating efficiencies, from period to period by
removing the impact of its capital structure (interest expense),
asset base (depreciation and amortization), tax consequences, other
non-core operating items (acquisition costs) and other non-free
cash items. Both EBITDA and Adjusted EBITDA do not have any
standardized meaning prescribed by IFRS, other companies may
calculate these non-IFRS measures differently, and therefore our
EBITDA and Adjusted EBITDA may not be comparable to a similar
titled measure by other companies. Accordingly, investors are
cautioned not to place undue reliance on them and are also urged to
read all accounting disclosures presented in the un- audited
consolidated financial statements and accompanying notes for the
most recently completed quarter.
Conference Call - The Company's executives will host a
conference call at 11:00 AM EDT
(8:00 AM PDT) Thursday, November 12, 2015, to discuss the
Company's Q3 2015 financial results. To join the conference call,
please dial Toll Free 1-888-390-0546, Conference ID#
43554739
On behalf of the Board of Directors
Mike Checkley, President &
CEO
Legal Notice Regarding Forward Looking Statements
This news release may contain "forward looking statements"
within the meaning of applicable Canadian securities legislation.
These statements are subject to risks that may cause the actual
results to be materially different in future periods from those
expressed or implied by such forward looking statement.
Forward-looking statements in this news release include those
concerning the Company's anticipation that its
EMR momentum will continue to build, that proceeds from the sale of
the RCM Assets will not be material and its projection that the
primary benefit from the sale of the RCM Assets lies in projected
cost savings of between $1.6 and $2.0
million annually. Risks that may prevent
or delay the forward looking statements from coming to fruition
include the possibility that the Company may not offer products
that are acceptable to industry regulators or customers;
competition, the availability of capital, changing regulatory
requirements, the Company's ability to attract and retain key
personnel, product obsolescence, work flow and market factors that
could increase costs more than expected. QHR is a technology
business development enterprise where investment and product
enhancements must be carefully managed to achieve long-term revenue
growth and profitability. It is the Company's policy not to update
forward looking statements except to the extent required under
applicable securities laws. Further information on the Company is
available at www.sedar.com or at the Company's website,
www.QHRtechnologies.com.
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.
SOURCE QHR Corporation