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Vigil Health Solutions Inc (2)
Symbol VGL
Shares Issued 16,918,840
Close 2017-02-14 C$ 0.50
Market Cap C$ 8,459,420
Recent Sedar Documents

Vigil Health Solutions earns $260,000 in fiscal Q3

2017-02-14 17:02 ET - News Release

Mr. Troy Griffiths reports

VIGIL REPORTS RECORD EARNINGS AND REVENUE IN THIRD QUARTER

Vigil Health Solutions Inc. has released the results of operations for the quarter ended Dec. 31, 2016.

Business highlights

  • Earnings before incomes taxes went up 76 per cent to $279,000, compared with $159,000 in the three months ended Dec. 31, 2015.
  • Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) went up 84 per cent to $270,000, compared with $146,000 in the three months ended Dec. 31, 2015.
  • Revenue went up 21 per cent to $1.70-million, compared with $1.40-million in the three months ended Dec. 31, 2015.
  • Sales bookings grew 4 per cent to $1.54-million from $1.47-million in the three months ended Dec. 31, 2015.

"We are pleased to see our numbers continue to strengthen with record earnings and revenue in the third quarter and year to date. The last few quarters have been particularly strong as, in addition to our recent sales, we recognized revenue on some unusually long running projects. The increase in revenue reflects the completion of a record 43 projects in the nine months ended Dec. 31, 2016," stated Troy Griffiths, president and chief executive officer of Vigil Health Solutions.

Financial results

Revenue for the three months ended Dec. 31, 2016, was $1.70-million, compared with $1.40-million in the three-month period ended Dec. 31, 2015, an increase of 21 per cent. The increase reflects the 14 projects commissioned in the quarter, compared with nine projects in the period ended Dec. 31, 2015. Project revenue made up 63 per cent of total revenue; the remaining revenue came from follow-on sales to existing customers. These sales include software and maintenance billings and replacement products, including wireless devices and communication equipment.

Bookings for the quarter were $1.54-million, up 4 per cent compared with $1.47-million in the three-month period ended Dec. 31, 2015.

At Dec. 31, 2016, Vigil had a backlog of approximately $2.77-million (including $1.45-million in deposits and progress billings, recorded as deferred revenue on the balance sheet), a 26-per-cent decrease compared with approximately $3.77-million (including $1.17-million in deposits and progress billings, recorded as deferred revenue on the balance sheet) at Dec. 31, 2015. In fiscal 2016, the company had a number of large CCRC (continuing care retirement community) projects in its backlog valued between $150,000 and $350,000. The majority of these projects have now been recognized in revenue leading to the decrease in backlog. At Dec. 31, 2016, Vigil's backlog included 38 projects at varying stages of installation and progress billing with an average project size of $73,000, compared with 41 projects with an average value of $92,000 at Dec. 31, 2015. Projects can include individual buildings or floors of multiple-phase campus construction.

The gross margin percentage for the three months ended Dec. 31, 2016, was 52 per cent, compared with 51 per cent for the three months ended Dec. 31, 2015. The product mix and deal size resulted in margins that were slightly higher than management's usual expectations of between 45 per cent and 50 per cent.

Operating expenditures for the three months ended Dec. 31, 2016, were up 10 per cent to $652,000 from $591,000 for the three months ended Dec. 31, 2015.

Earnings before income taxes for the three months ended Dec. 31, 2016, were $279,000, compared with $159,000 for the previous year. The increase in earnings reflects the improved revenue.

Net earnings and comprehensive earnings for the three months ended Dec. 31, 2016, were $260,000, or 1.5 cents per share. In the fourth quarter of fiscal 2016, the company recognized a deferred income tax asset of $128,000. The company fully utilized this deferred tax asset during the nine-month period ended Dec. 31, 2016. Therefore; the income tax expense of $19,000 was net of a recovery of approximately $53,000 related to the utilization of previously unrecognized tax losses. The company will evaluate the further recognition of deferred tax assets during the annual budgeting process in conjunction with the preparation of the annual financial statements.

Net earnings and comprehensive earnings for the three months ended Dec. 31, 2015, were $159,000, or 0.9 cent per share. In prior years, the company utilized the benefit of unrecognized tax operating losses and, therefore, no income tax expense was recognized.

Detailed financial statements, along with management discussion and analysis, have been filed on SEDAR.

Financial information will be mailed to entitled securityholders on Feb. 24, 2016, or, upon notice to the company, entitled securityholders may request a copy of financials in advance.

                            SUMMARY FINANCIAL INFORMATION
   
                                                Three months ended          Nine months ended
                                             Dec. 31,      Dec. 31,     Dec. 31,      Dec. 31,
                                                2016          2015         2016          2015

Revenue                                   $1,700,837    $1,402,820   $4,934,921    $3,615,438
Cost of sales                                812,577       684,967    2,461,196     1,761,096
                                             888,260       718,123    2,473,725     1,854,342
Expenses                                     652,067       591,320    1,833,190     1,757,901
Earnings before the following items          236,193       126,803      640,535        96,441
Other income (expense)                        42,955        32,225       56,137        73,763
Earnings before income taxes                 279,148       159,028      696,672       170,204
Income taxes                                 (19,148)            -     (127,704)            -
Net earnings and comprehensive
earnings for the period                   $  260,000    $  159,028   $  568,968    $  170,204

About Vigil Health Solutions Inc.

Vigil offers a proprietary technology platform combining software and hardware to provide comprehensive solutions to the expanding senior housing market. Vigil has established a growing presence in North America and an international reputation for being on the leading edge of system design and integration. Vigil's product range includes the innovative wireless Vitality Care system, featuring discreet mini-pendants, a nurse call system, mobile fall, incontinence monitoring and resident check-in, and the award-winning Vigil Memory Care system.

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