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