04:24:37 EST Fri 03 Feb 2023
Enter Symbol
or Name
USA
CA



Login ID:
Password:
Save
Vitalhub Corp (2)
Symbol VHI
Shares Issued 43,400,258
Close 2022-11-10 C$ 2.27
Recent Sedar Documents

Vitalhub earns $40,777 in Q3

2022-11-10 22:25 ET - News Release

Mr. Dan Matlow reports

VITALHUB REPORTS Q3 2022 FINANCIAL RESULTS WITH RECORD REVENUE OF $9.8M AND ADJUSTED EBITDA OF $2.2M

Vitalhub Corp. has filed its interim condensed consolidated financial statements and management's discussion and analysis report for the three and nine months ended Sept. 30, 2022, with the Canadian securities authorities. These documents may be viewed under the company's profile at SEDAR.

Vitalhub's chief executive officer, Dan Matlow, commented: "Despite [third quarter] historically having been our seasonally weakest quarter and notwithstanding the foreign currency headwinds associated with the British pound, Q3 2022 saw continued and consistent improvement across all of our key indicators, quarter over quarter. We continued to grow our organic annual recurring revenue by adding another $850,000 on a constant currency basis and achieved another record adjusted [earnings before interest, taxes, depreciation and amortization] of $2.2-million for the quarter. With the addition of the Community Data Solutions and Advanced Digital Innovation acquisitions, our [annual recurring revenue] stands at close to $34-million. We have significant cash on hand and the availability of a Bank of Nova Scotia facility, together totalling $48-million available to continue our strategic acquisition strategy, while we continue to generate significant cash from operations that we expect to continue to grow. We have never been in a better position than we are in at the present time."

Vitalhub's quarterly investor conference call will take place on Nov. 11, 2022, at 9 a.m. EST. To join the call, please dial 1-888-664-6383 (toll-free North America) or 416-764-8650 (local -- Toronto) and enter confirmation No. 13111266.

A replay of the call will be available until Dec. 11, 2022, by dialling 1-888-390-0541 (toll-free North America) or 416-764-8677 (local -- Toronto), using the replay entry code 111266 followed by the number sign.

Third quarter 2022 highlights:

  • Revenue of $9,780,553, an increase of $3,161,506 or 48 per cent from the comparative period in the prior year;
  • Gross profit as a percentage of revenue for Q3 2022 was 80 per cent compared with 82 per cent in Q3 2021;
  • ARR (1, 2) at the end of Q3 2022 was $30,967,215:
    • Organic growth of $850,755 or 2.73 per cent from second quarter 2022;
    • Reduction of $1,103,048 or 3.53 per cent due to the decrease in the value of the British pound relative to the Canadian dollar from the prior quarter;
  • EBITDA (2) of $1,389,065 compared with $189,088 in the comparative period in the prior year;
  • Adjusted EBITDA (2) of $2,151,753, or 22 per cent of revenue, compared with $1,277,573 or 19 per cent of revenue in the comparative period in the prior year;
  • Cash on hand at Sept. 30, 2022, was $36,065,885 compared with $16,389,982 as at Dec. 31, 2021;
  • During the quarter, the company secured additional financing from Bank of Nova Scotia; increasing its operating credit limit from $1-million to $6-million and its revolving term facility from $10-million to $27-million;
  • Subsequent to the quarter, the company acquired all of the issued and outstanding shares of Qwad Community Technologies Pty. Ltd., doing business as Community Data Solutions (CDS), a company incorporated and conducting business in Australia; CDS offers an on-line case management system and supporting products serving 350-plus agencies located in all states and internal territories of Australia; total closing consideration for the acquisition was all cash for a purchase price at closing of approximately $8,197,155 (Australian) ($7,110,663 (Canadian)), which was after customary closing and working capital adjustments.
  • Subsequent to the quarter, the company acquired certain assets to maintain the business of Advanced Digital Innovation (U.K.) Ltd. (ADI) with the product widely known as MyPathway; MyPathway is a digital health platform which is used to improve patient interactions during treatment; total closing consideration for the acquisition was all cash for a purchase price of approximately 250,000 British pounds ($382,740 (Canadian));
  • Subsequent to the quarter, the company repaid the balance of its Scotia revolving facility loan in the amount of $8,999,982;
  • With the addition of the ARR (1, 2) of CDS and ADI subsequent to the quarter, the company's pro forma ARR would be approximately $34-million.

Nine-month 2022 highlights:

  • Revenue of $28,681,209, an increase of $10,946,909 or 62 per cent from the comparative period in the prior year;
  • Gross profit as a percentage of revenue for the nine months was 82 per cent compared with 79 per cent from the comparative period in the prior year;
  • ARR (1, 2) at Sept. 30, 2022, was $30,967,215 as compared with $21,569,032 at Sept. 30, 2021, an increase of 44 per cent;
  • EBITDA (2) of $ 4,779,798 compared with $645,439 in the comparative period in the prior year;
  • Adjusted EBITDA (2) of $7,069,334, or 25 per cent of revenue, as compared with $3,197,090, or 18 per cent of revenue, in the comparative period in the prior year;
  • Cash flow from operations before changes in working capital was $5,280,072 for the period as compared with $1,394,927 for the same period last year.

(1) The company defines annual recurring revenue as the recurring revenue expected based on yearly subscriptions of the renewable software licence fees and maintenance services.

(2) Non-international financial reporting standard measure.

About Vitalhub Corp.

Vitalhub provides technology to health and human service providers, including: hospitals, regional health authorities, mental health, long-term care, home health, community and social services. Vitalhub solutions span the categories of electronic health record (EHR), case management, care co-ordination, patient flow and operational visibility, and DOCit mobile apps. The company has a robust two-pronged growth strategy, targeting organic growth opportunities within its product suite and pursuing an aggressive merger-and-acquisition plan. Currently, Vitalhub serves 275-plus clients across Canada, United States, United Kingdom, Australia, Qatar and Latvia. 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.

We seek Safe Harbor.

© 2023 Canjex Publishing Ltd. All rights reserved.