Mr. Troy Griffiths reports
VIGIL REPORTS EARNINGS, REVENUE AND SALES BOOKINGS UP IN SECOND QUARTER
Vigil Health Solutions Inc. is releasing its results of operations for the quarter ending Sept. 30, 2016.
Business highlights:
-
Net earnings up 617 per cent to $113,000, compared with a $22,000 loss in the three months ended Sept. 30, 2015;
- EBITDA (earnings before interest, taxes, depreciation and amortization) up 476 per cent to $160,000, compared with a $43,000 loss in the three months ended Sept. 30, 2015;
- Revenue up 70 per cent to $1.58-million, compared with $929,000 in the three months ended Sept. 30, 2015;
- Sales bookings grew 17 per cent to $1.41-million, from $1.20-million in the three months ended Sept. 30, 2015.
"Our revenue numbers were strong in the second quarter, but it is the year-to-date numbers where we substantially outperformed all prior comparative periods. The 70-per-cent jump in revenue reflected a record number of project completions, as well as continued growth in one-off sales and software maintenance. Our operations team did an outstanding job, commissioning several sales booked prior to fiscal 2015, in addition to current projects," stated Troy Griffiths, president and chief executive officer of Vigil Health Solutions.
Financial results
Revenue for the three months ended Sept. 30, 2016, was $1.58-million, up 70 per cent from $929,000 in the three months ended Sept. 30, 2015. Project revenue made up 60 per cent of total revenue, compared with 40 per cent in the prior year; the remaining revenue came from follow-on sales to existing customers. These sales include software maintenance billings and replacement products, including wireless devices and communication equipment. The sizable percentage increase in revenue relates to improved revenue in the current quarter and a slower second quarter in fiscal 2016.
Bookings for the quarter were $1.41-million, up 17 per cent compared with $1.20-million in the three months ended Sept. 30, 2015.
At Sept. 30, 2016, Vigil had a backlog of approximately $3.03-million (including $1.39-million in deposits and progress billings, recorded as deferred revenue on the balance sheet), down from approximately $3.5-million (including $1.15-million in deposits and progress billings, recorded as deferred revenue on the balance sheet) at Sept. 30, 2015. At Sept. 30, 2016, Vigil's backlog included 42 projects at varying stages of installation and progress billing, with an average project size of $72,000, compared with 38 projects with an average value of $92,000 at Sept. 30, 2015.
The gross margin percentage for the three months ended Sept. 30, 2016, was 45 per cent, compared with 54 per cent for the three months ended Sept. 30, 2015. Gross margin was within management's usual expectations of margins of between 45 per cent and 50 per cent. The greater percentage of project sales compared with one-off sales contributed to the lower margin. Projects sales contain lower-margin components, including payroll, travel and contracting expenses.
Operating expenditures for the three months ended Sept. 30, 2016, were $572,000, compared with $568,000 for the three months ended Sept. 30, 2015.
Earnings before income taxes for the three months ended Sept. 30, 2016, were $152,000, compared with a loss of $22,000 for the previous year. The increase in earnings reflects the improved revenue. Net earnings and comprehensive income were $113,000 or 0.7 cent per share, compared with a net loss of $22,000 or 0.1 cent per share.
Detailed financial statements, along with management discussion and analysis, have been filed with SEDAR.
Financial information will be mailed to entitled securityholders on Nov. 25, 2016, or, upon notice to the company, entitled securityholders may request a copy of financials in advance.
SUMMARY FINANCIAL INFORMATION
Three months ended Six months ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2016 2015 2016 2015
Revenue $1,576,789 $ 929,440 $3,234,084 $2,212,618
Cost of sales 859,907 425,871 1,648,618 1,076,399
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716,882 503,569 1,585,466 1,136,219
Expenses 571,601 568,063 1,181,124 1,166,581
----------- ----------- ----------- -----------
Earnings (loss) before the
following items 145,281 (64,494) 404,342 (30,362)
Other income (expense) 6,996 42,702 13,182 41,538
----------- ----------- ----------- -----------
Earnings (loss) before income
taxes 152,277 (21,792) 417,524 11,176
Income taxes (39,592) - (108,556) -
----------- ----------- ----------- -----------
Net earnings (loss) and
comprehensive earnings (loss)
for the period $ 112,685 $ (21,792) $ 308,968 $ 11,176
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Non-IFRS (international financial reporting standards) measure
For the three months ended Sept. 30, 2016, the company has disclosed adjusted EBITDA, a non-IFRS financial measure, as a supplementary indicator of operating performance. The company defines adjusted EBITDA as net income before, interest, income taxes, amortization, stock-based compensation, and currency gains or losses, including derivative foreign exchange differences. It is presenting the non-IFRS financial measure in its filings because the company uses it internally to make strategic decisions, forecast future results and to evaluate its performance, and because the company believes that its current and potential investors, and analysts, use the measure to assess current and future operating results, and to make investment decisions. Adjusted EBITDA is a non-IFRS measure, may not be comparable with other companies and is not intended as a substitute for IFRS measures.
About Vigil
Vigil offers a proprietary technology platform combining software and hardware to provide comprehensive solutions to the expanding seniors' housing market. Vigil has established a growing presence in North America, and an international reputation for being on the leading edge of systems design and integration.
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