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
three and nine months ended September 30, 2020 and 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 quarter Dan Matlow
said:
“I am encouraged that our focus on responsible
growth both organically and by M&A is showing positive results.
Given the timing of our recent acquisitions, Q3 only saw a modest
contribution to recognized revenue from our recent Intouch with
Health and Transforming Systems Ltd. acquisitions. Notwithstanding
this, both acquisitions have made significant impacts in terms of
new, large-scale recurring licensing transactions which will
positively impact future periods. We grew our annualized
contract value (“ACV”) by 81% compared to the prior quarter, which
was achieved through organic growth of $543,258 or 7.25%, in
addition to the lift attributable to the acquisitions of $5,525,327
or 73.8%. We are pleased to see this same pattern of organic growth
continuing into Q4 as well.”
COMPANY HIGHLIGHTS
Revenue for the three months
ended September 30, 2020 was $3,192,166 as compared to $2,395,662
for the three months ended September 30, 2019, an increase of
$796,504 or 33.2%. Revenue for the nine months ended September 30,
2020 was $8,711,060 as compared to $7,667,264 for the nine months
ended September 30, 2019, an increase of $1,043,796 or 13.6%.
The Company
defines Annualized Contract Value (“ACV”) of recurring revenue as
the contracted annual renewable software license fees and
maintenance services. For the quarter ACV grew organically
by $543,258 or 7.25% and by $5,525,327 or 73.8% from acquisitions
as compared to the prior quarter ended June 30, 2020 of $7,491,841.
The ACV of recurring revenue at September 30, 2020 was $13,560,696
as compared to $5,579,377 at September 30, 2019, an increase of
143%. ACV is a non-IFRS measure.
Net loss for the three months
ended September 30, 2020 was $1,065,505 as compared to a loss of
$475,295 for the three months ended September 30, 2019, an increase
of $590,210. Net loss for the nine months ended September 30, 2020
was $1,450,504 as compared to $625,774 for the nine months ended
September 30, 2019, an increase of $824,730. The majority of the
loss was due to business acquisition, restructuring and integration
costs of $820,237 for the quarter and $1,075,803 for the nine
months ended September 30, 2020.
EBITDA (defined as earnings before
interest, taxation, depreciation and amortization) for the
three months ended September 30, 2020 was ($419,362) as compared to
$445,290 for the three months ended September 30, 2019, a decrease
of $864,852. EBITDA for the nine months ended September 30, 2020
was $273,840 as compared to $1,349,939 for the nine months ended
September 30, 2019. The majority of the decrease in EBITDA was due
to business acquisition, restructuring and integration costs of
$820,237 for the quarter and $1,075,803 for the nine months ended
September 30, 2020. EBITDA is a non-IFRS measure.
Adjusted EBITDA (defined as earnings
before interest, taxation, depreciation, amortization, share based
compensation, business acquisition, restructuring and integration
costs and other one time
costs) for the three months ended September 30,
2020 was $502,595 as compared to $523,669 for the three months
ended September 30, 2019, a decrease of $21,074. Adjusted EBITDA
for the nine months ended September 30, 2020 was $1,539,136 as
compared to $1,573,116 for the nine months ended September 30,
2019. Adjusted EBITDA is a non-IFRS measure.
Adjusted EBITDA as a percentage of
revenue for the three months ended September 30, 2020 was
16% as compared to 22% for the three months ended September 30,
2019. Adjusted EBITDA as a percentage of revenue for the nine
months ended September 30, 2020 was 18% as compared to 23% for the
nine months ended September 30, 2019. Due to the relatively high
amortization of intangibles from acquisitions and periodic
restructuring and integration costs from acquisitions management
believes that Adjusted EBITDA as a percentage of revenue is an
important key performance indicator to measure. Adjusted EBITDA as
a percentage of revenue is a non-IFRS measure.
During the quarter, the Company
completed two acquisitions, marking a total of eight acquisitions
to date. Intouch with Health Ltd. (“Intouch”), and
Transforming Systems Ltd. (“Transform”), were acquired with the
purchase of all the issued and outstanding shares. Intouch had
total revenue (unaudited) of GBP 3,141,975 of which GBP 1,329,198
were recurring for the 12-month period ending July 31, 2020.
Transform had total revenue (unaudited) of GBP 2,218,192, of which
GBP 1,880,962 were recurring for the 12-month period ending July
31, 2020.
On Sept 15,
2020, the Company closed a non-brokered private placement of
1,000,000 common shares at a price per share of $2.20 for total
gross proceeds of $2,200,000. Use of proceeds from the
Offering will be for future acquisition purposes, and to advance
the Company’s M&A strategy.
Subsequent to the quarter, the Company
closed a bought deal offering with gross proceeds of approximately
$16,996,248. A total of
5,860,775 common shares of the Company were sold at a price of
$2.90 per common share.
ABOUT VITALHUB: Software for
Health and Human Services providers designed to simplify the user
experience & optimize outcomes.
VitalHub provides technology to Health and Human
Services 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 Coordination,
Patient Flow & 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 M&A plan. Currently, VitalHub
serves 275+ clients across Canada, USA, UK, 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”.
CAUTIONARY STATEMENT: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, 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.
CONTACT INFORMATIONDan
MatlowChief Executive Officer, Director(416)
727-9061dan.matlow@vitalhub.com
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