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.”
COMPANY HIGHLIGHTS
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.
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.
CONTACT INFORMATION
Dan MatlowChief Executive Officer, Director(416)
727-9061dan.matlow@vitalhub.com
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