05:11:53 EDT Thu 24 Sep 2020
Enter Symbol
or Name
USA
CA



Login ID:
Password:
Save
Vitalhub Corp (2)
Symbol VHI
Shares Issued 18,017,916
Close 2020-04-24 C$ 1.89
Recent Sedar Documents

Vitalhub omits 2019 net P&L in NR, talks revenue

2020-04-24 19:13 ET - News Release

Mr. Dan Matlow reports

VITALHUB REPORTS 40% GROWTH IN THE ANNUAL CONTRACT VALUE OF RECURRING REVENUE FOR FISCAL YEAR 2019

Vitalhub Corp. has filed its consolidated financial statements and management's discussion and analysis report for the year ended Dec. 31, 2019, with the Canadian securities authorities. These documents may be viewed under the company's profile on SEDAR.

When asked to comment on the results of Q4 2019, Vitalhub chief executive officer Dan Matlow said: "We are happy with the fiscal 2019 results, reflecting the hard work we have undertaken in transitioning to a revenue base that is primarily comprised of recurring-revenue-based software products. We are now producing cash from operations, and, with cash on hand from our recent capital raise, we look forward to continued growth through acquisitions and our ongoing organic growth."

The company would like to highlight the following insights:

  • Due to the high amount of non-cash items on the company's income statement relating to the amortization of intangibles from acquisitions, Vitalhub focus primarily on adjusted EBITDA (defined as earnings before interest, taxation, depreciation, amortization, share-based compensation, business acquisition, restructuring and integration costs, and loss on redemption of debenture) to track its performance. It continues to make great progress here, with adjusted EBITDA at 16 per cent of revenues.
  • ACV (annual contract value) grew by 40 per cent over the year to $7,430,444 through a combination of organic growth and acquisitions made.
  • During 2019, Vitalhub transitioned the organization to become cash flow positive with a net increase of $1,847,831 year over year.

Company highlights

Revenue for the three months ended Dec. 31, 2019, was $2,560,661, as compared with $2,215,912 for the three months ended Dec. 31, 2018, an increase of $344,749 or 15.6 per cent. Revenue for the 12 months ended Dec. 31, 2019, was $10,227,924, as compared with $9,113,840 (which includes a non-recurring one-time perpetual licence fee of $1,613,362) for the 12 months ended Dec. 31, 2018, an increase of $1,114,084 or 12.2 per cent. Excluding the one-time perpetual licence fee of $1,613,362, revenue for the 12 months ended Dec. 31, 2019, increased by $2,727,446 or 36.4 per cent.

The company defines annualized contract value of recurring revenue as the contracted annual renewable software licence fees and maintenance services. The ACV of recurring revenue at Dec. 31, 2019, was $7,430,444, as compared with $5,579,377 at Sept. 30, 2019, an increase of 25 per cent, and as compared with $4,486,680 at Dec. 31, 2018, an increase of 40 per cent. ACV is a non-IFRS (international financial reporting standards) measure.

The company defines acquisition revenue as gross revenues of the companies acquired at the time of acquisition and organic revenue as revenue over and above the acquisition revenues. For the three months ended Dec. 31, 2019, organic revenue represented 31 per cent of total revenue (Q4 2018 -- 29 per cent), with the remaining 69 per cent representing acquisition revenue (Q4 2018 -- 71 per cent). For the year ended Dec. 31, 2019, organic revenue represented 36 per cent of total revenue (Q4 2018 -- 19 per cent), with the remaining 64 per cent representing acquisition revenue (year ended Dec. 31, 2018 -- 64 per cent). Acquisition and organic revenue growth are non-IFRS measures.

Cash used in operating activities was $107,690 for the year ended Dec. 31, 2019, compared with $1,955,521 for the year ended Dec. 31, 2018, reflecting an improvement in cash used in operations of $1,847,831.

EBITDA (defined as earnings before interest, taxes, depreciation and amortization) for the three months ended Dec. 31, 2019, was negative $704,462, as compared with $333,090 for the three months ended Dec. 31, 2018, a decrease of $1,037,552. EBITDA for the 12 months ended Dec. 31, 2019, was $645,466, as compared with $837,304 for the 12 months ended Dec. 31, 2018, a decrease of $191,838. EBITDA is a non-IFRS measure.

Adjusted EBITDA for the three months ended Dec. 31, 2019, was $42,254, as compared with $441,230 for the three months ended Dec. 31, 2018, a decrease of $398,976. Adjusted EBITDA for the 12 months ended Dec. 31, 2019, was $1,615,360, as compared with $1,509,306 for the 12 months ended Dec. 31, 2018, an increase of $106,054. Adjusted EBITDA is a non-IFRS measure.

Adjusted EBITDA as a percentage of revenue for the three months ended Dec. 31, 2019, was 2 per cent, as compared with 20 per cent for the three months ended Dec. 31, 2018. For the 12 months ended Dec. 31, 2019, adjusted EBITDA as a percentage revenue was 16 per cent, as compared with 17 per cent for the 12 months ended Dec. 31, 2018. Adjusted EBITDA as a percentage revenue is a non-IFRS measure.

During the fourth quarter, 259,424 warrants were exercised for cash proceeds of $466,963. These warrants were issued under non-brokered private placements in October, 2016, and December, 2017. The remaining 710,069 warrants expired in December, 2017.

On Nov. 21, 2019, the company completed its sixth acquisition, with the purchase of all of the issued and outstanding securities of Oculys Health Informatics Inc. Oculys provides a real-time and predictive operational management system for hospitals and services approximately 18 customers within Ontario and Manitoba. The Oculys solution provides a synergistic opportunity for both customers of the Oak Group and Oculys to benefit from each other's products and services

During the fourth quarter, the company entered a partnership with Ernst & Young to provide health care intelligence using its MCAP solution to support the optimization of health care delivery services for a customer in the Middle East region. This deal marks the first Oak Group product of its kind to enter the Saudi Arabia, and includes one-time perpetual licences of approximately $527,969 (Canadian) ($367,500 (U.S.)) and approximately $339,409 (Canadian) ($236,250 (U.S.)) in professional services revenue.

A number of contracts were signed during the quarter. Caressant Care Nursing and Retirement Homes signed a two-year agreement for the licensing of the company's mobile application, Sanctum Care Group Inc. signed a five-year agreement for the company's BCare application, and Eden Health Care Services signed a two-year agreement for the company's BCare application.

About Vitalhub Corp.

Vitalhub develops mission-critical technology solutions for health and human services providers in the mental health (child through adult), long-term care, community health service, home health, social service and acute care sectors. Vitalhub technologies include blockchain, mobile, patient flow, Web-based assessment and electronic health record solutions.

We seek Safe Harbor.

© 2020 Canjex Publishing Ltd. All rights reserved.