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 months ended March 31, 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 results of Q1 2020,
VitalHub CEO Dan Matlow said, “Our first response to COVID-19 was
to take immediate and swift action in ensuring the safety of our
staff, and that our teams were properly equipped to continue to
effectively support our customers. All of our employees in North
America, the United Kingdom and Sri Lanka have successfully
adjusted to a work from home environment. We began to see the
impact of COVID-19 in the middle of the quarter, with requests
coming in from clients to extend the utility of some of our
offerings toward assisting in the pandemic response, as well as a
general slow-down of implementations and business, consistent with
the market. Overall, we expect to see a slow-down of activity over
the next few quarters. The Company believes it will continue to be
cash flow positive even with the reduced activity.”
We 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, we focus primarily on Adjusted EBITDA to track our
performance. We continue to make great progress, with Adjusted
EBITDA at 10% of revenues.
- Annual contract value grew to $7,486,925.
COMPANY HIGHLIGHTS
Revenue for the three months
ended March 31, 2020 was $2,770,000 as compared to $2,444,310 for
the three months ended March 31, 2019, an increase of $325,690 or
13.3%.
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 March 31, 2020 was $7,486,925 as
compared to $5,226,623 at March 31, 2019, an increase of 30%. ACV
is a non-IFRS measure.
The Company defines acquisition
recurring revenues as gross recurring revenues of the companies
acquired at the time of acquisition and organic revenues as revenue
over and above the acquisition recurring revenues. For the
three months ended March 31, 2020, organic revenue represented 36%
of total revenue (Q4/2019 – 40%, Q1/2019 – 52%), with the remaining
64% representing acquisition revenue (Q4/2019 – 60%, Q1 2019 –
48%). Acquisition and organic revenue are non-IFRS measures.
EBITDA (defined as earnings
before interest, taxation, depreciation and amortization) for the
three months ended March 31, 2020 was ($12,688) as compared to
$567,531 for the three months ended March 31, 2019, and ($704,462)
for Q4 2019. 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 March 31, 2020 was $282,291 as compared to $656,765 for the
three months ended March 31, 2019, and $42,254 for Q4 2019.
Adjusted EBITDA is a non-IFRS measure.
Adjusted EBITDA as a percentage of
revenue for the three months ended March 31, 2020 was 10%
as compared to 27% for the three months ended March 31, 2019.
Adjusted EBITDA as a percentage of revenue is a non-IFRS
measure.
On March 17, 2020, the Company closed a
bought deal offering with gross proceeds of $15,311,340. A
total of 8,506,300 common shares of the Company were sold at a
price of $1.80 per common share.
On March 19, 2020, the Company announced
the deployment of its patient flow solution to address the needs of
the COVID-19 pandemic. The solution is being rolled out at
Windsor Regional Hospital’s two Campuses (Met and Ouellette) as
well as at Hotel-Dieu Grace HealthCare, Bluewater Health, Erie
Shores Health Care and Chatham-Kent Health Alliance.
The Company also announced the first
deployment of its COVID-19 electronic screening tool to
the Region of Waterloo-owned by Sunnyside Home Long-Term Care, in
support of their response to the deepening COVID-19 crisis.
VitalHub has leveraged its “DOCit” mobile app, which was
specifically designed with these kind of screening initiatives in
mind, to enable the rapid development of its COVID-19 screening
solution.
ABOUT VITALHUB: 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”.
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 INFORMATION
Dan MatlowChief Executive Officer, Director(416)
727-9061dan.matlow@vitalhub.com
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