TORONTO, Aug. 22, 2019 (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 June 30, 2019 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 Q2 2019, VitalHub CEO Dan Matlow said, “We continue to make progress quarter-over-quarter in all areas of our business and continue to be optimistic on a go-forward basis, as we offer the following insight to help guide our investors at this time.”
- “Due to the high amount of non-cash items on the Company’s income statement relating to the amortization of intangibles from acquisitions, we focus primarily on Adjusted EBITDA to track our performance. We have made great progress here, with Adjusted EBITDA representing 23% of revenues for the period ended June 30, 2019. Adjusted EBITDA is a non-IFRS measure.
- Our annual contract value (“ACV”) has grown to $5,321,119, which has not yet been materially affected by the Nova Scotia contract revenue, which has the potential to grow to $2.3M in ACV. Revenue associated with this contract has primarily been comprised of professional services to-date, and has only accounted for 2% or $125,450 of the total ACV currently reported. Our expectation is for the Nova Scotia ACV to progressively increase starting in Q4 of this year. (For further details on the Nova Scotia contract, refer to the original press release dated January 7, 2019.) ACV is a non-IFRS measure.
- Recurring revenue continues to grow and now represents 46.5% of total revenue for the quarter. Recurring revenue is a non-IFRS measure.
- While M&A is an important part of our growth strategy, the Company continues to grow organically with 44% of revenue representing organic growth for the quarter.
- The Oak Group acquisition completed in March 2019 and in particular its MCAP product represents an opportunity for growth internationally. We continue to see pipeline growth on an international basis.
- The company has been gradually increasing our cash reserves, and at the end of Q2 had $4,860,083 of cash.”
Revenue for the for the three months ended June 30, 2019 was $2,827,291 as compared to $1,856,446 for the three months ended June 30, 2018, an increase of $970,845 or 52.3% (an increase of $382,981 or 15.7% over the three months ended March 31, 2019). Revenue for the six months ended June 30, 2019 was $5,271,602 as compared to $4,779,836 (which includes a one-time perpetual license fee of $1,613,362) for the six months ended June 30, 2018, an increase of $491,776 or 10.3%.
EBITDA (defined as earnings before interest, taxation, depreciation and amortization) for the three months ended June 30, 2019 was $337,108 as compared to ($33,212) for the three months ended June 30, 2018, an increase of $370,320. EBITDA for the six months ended June 30, 2019 was $904,640 as compared to $348,515 for the six months ended June 30, 2018, an increase of $556,125. EBITDA is a non-IFRS measure.
Adjusted EBITDA (defined as earnings before interest, taxation, depreciation, amortization, share based compensation, and acquisition related expenses) for the three months ended June 30, 2019 was $552,524 as compared to $20,693 for the three months ended June 30, 2018, an increase of $531,831. Adjusted EBITDA for the six months ended June 30, 2019 was $1,209,290 as compared to $771,568 for the six months ended June 30, 2018, an increase of $437,722. Adjusted EBITDA is a non-IFRS measure.
Adjusted EBITDA as a percentage revenue for the three months ended June 30, 2019 was 20% as compared to 1% for the three months ended June 30, 2018. For the six months ended June 30, 2019 adjusted EBITDA as a percentage revenue was 23% as compared to 16% for the six months ended June 30, 2018. Adjusted EBITDA as a percentage revenue is a non-IFRS measure.
The Company defines Annualized Contract Value (“ACV”) of recurring revenue as the contracted annual renewable software license fees and maintenance services. The ACV of recurring revenue at June 30, 2019 was $5,321,119 as compared to $5,226,623 at March 31, 2019 an increase of 2%. ACV is a non-IFRS 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 June 30, 2019, organic revenue represented 44% of total revenue (Q2/2018 – 20%, Q4/2018 – 29%, Q1/2019 – 35%), with the remaining 56% representing acquisition revenue (Q2/2018 – 80%, Q4/2018 – 71%, Q1/2019 – 65%). Acquisition and organic revenue are non-IFRS measures.
In the quarter, two new contracts were signed which include software licensing revenue of $417,225, professional service revenue of approximately $184,685, and approximately $101,825 of recurring revenue over the initial term.
In addition, the Company signed a contract to provide its TREAT solution to The Hawskesbury and District General Hospital as part of the regionalized expansion of the TREAT EHR through Ottawa Hospital, 15 organizations are now eligible to sign a Participation Agreement allowing them to license the TREAT software.
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.
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+ clients 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”.
This press release includes forward-looking statements regarding the Corporation and its business, which may include, but is not limited to, statements with respect to the appointment of a new directors. Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “is expected”, “expects”, “scheduled”, “intends”, “contemplates”, “anticipates”, “believes”, “proposes” or variations (including negative variations) of such words and phrases, or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Such statements are based on the current expectations of the management of each entity, and are based on assumptions and subject to risks and uncertainties. Although the management of each entity believes that the assumptions underlying these statements are reasonable, they may prove to be incorrect. The forward-looking events and circumstances discussed in this release, including the share consolidation proposal, may not occur by certain specified dates or at all and could differ materially as a result of known and unknown risk factors and uncertainties affecting the companies, including risks regarding the technology industry, failure to obtain regulatory or shareholder approvals, market conditions, economic factors, the equity markets generally and risks associated with growth and competition. Although the Corporation has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. No forward-looking statement can be guaranteed. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and the Corporation undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.
Chief Executive Officer, Director