VitalHub Continues to Report Positive Adjusted EBITDA Results and Increased Revenues
TORONTO, Nov. 26, 2018 (GLOBE NEWSWIRE) -- 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 September 30, 2018 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 Q3 2018, VitalHub CEO Dan Matlow said,
While, traditionally the 3rd quarter in our sector is slow due to the seasonality, we continued to increase revenues and improve our positive adjusted EBITDA as we continue to integrate our acquisitions. Moving toward the end of the year, our pipeline growth is expected to bear results, as we now have some meaningful opportunities in advanced stages. While there are no guarantees regarding timing or a successful conclusion, we are optimistic that we will secure new mandates.
Highlights for the quarter ended September 30, 2018 include:
- Revenue for the three months ended September 30, 2018 was $2,118,093, representing an increase of 1224.9% over revenues of $159,874 in the same period last year, and an increase of 14.1% over Q2 revenues of $1,856,446. Revenue for the nine months ended September 30, 2018 was $6,897,929, representing an increase of 1,525.3% over revenues of $424,402 in the same period last year. This increase is primarily a result of acquisitions and the inclusion of $1,613,362 of perpetual license revenue from a customer for the HI Next software in the period.
- EBITDA (defined as earnings before interest, taxation, depreciation and amortization) for the three months ended September 30, 2018 was $155,794 compared to EBITDA of ($562,991) in Q3/2017, and ($462,780) in Q2/2018. For the nine months ended September 30, 2018, EBITDA was $504,107 compared to ($1,366,259) in the same period last year. 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 September 30, 2018 was $296,403 compared to adjusted EBITDA of ($559,437) in Q3/2017, and $20,691 in Q2/2018. For the nine months ended September 30, 2018, adjusted EBITDA was $1,067,969 compared to ($1,279,060) in the same period last year. Adjusted EBITDA is a non-IFRS measure.
- Annualized Contract Value (“ACV”) of Recurring Revenue (defined as the contracted annual renewable software license fees and maintenance service revenues) at September 30, 2018 was $4,273,773 as compared to $4,010,706 at June 30, 2018, an increase of 6.5%. ACV is a non-IFRS measure.
- On July 17, 2018, the Company announced the sale of the VitalHub Long-Term Care Solution to the Senior’s Services division of the Region of Waterloo. This marks the product’s first sale to a municipally operated, public long-term care facility and our fourth sale to date. The Region of Waterloo operates Sunnyside Home, a 263-bed long term care facility located in the Stanley Park area of Kitchener.
- On July 31, 2018, the Company announced the sale of the B Care Electronic Health Record (“EHR”) to support William Osler Health System’s (“Osler”) cardiac care program. This sale follows a successful response to a Request for Proposal issued by Osler to find an EHR flexible enough to meet the workflow requirements of its Pacemaker Clinic. Osler is a hospital system that serves 1.3 million residents of Brampton, Etobicoke, and surrounding communities within the Central West Local Health Integration Network.
- On August 21, 2018, the Company announced the sale of the TREAT EHR solution to Stella’s Place, a Toronto-based young adult mental health agency, and a Reconnect Community Health Services (“Reconnect”) affiliate. At present, the TREAT EHR solution has only been implemented across 15% of Reconnect's affiliate network, representing a significant opportunity to further increase penetration of the product across the mental health services space.
- On September 28, 2018, the Company completed its fourth acquisition to date through the purchase of Roxy Software Inc. (“Roxy”).Roxy provides “Pirouette” a web-based software solution that helps manage programs, workload, and data more effectively. Roxy had approximately $288,000 in revenue in its last fiscal year.
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+ participants 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".
The TSX Venture Exchange has in no way passed upon the merits of the transactions and has neither approved nor disapproved the contents of this press release. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
Chief Executive Officer, Director