Vigil Health Solutions Reports Profitable Second Quarter

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| Source: Vigil Health Solutions Inc.

VICTORIA, BC--(Marketwired - November 24, 2014) - Vigil Health Solutions Inc. (TSX VENTURE: VGL) ("Vigil") announces the results of operations for the quarter ending September 30, 2014.

Business Highlights

  • Revenue of $1.04 million compared to $1.31 million in the three-month period ended September 30, 2013.
  • Net Income of $10 thousand compared to $22 thousand in the three month period ended September 30, 2013.
  • Bookings for the quarter were $1.02 million compared to $1.12 million in the three-month period ended September 30, 2013.
  • Completed initial development of Vigil Mobile, a smart phone application written to work with Apple ® iPhone / iTouch or Android. 

"We have been steadily increasing research and development investment, something we believe is crucial to long term growth. It has provided us with the Vitality Wireless System which, with its new mini pendants, has become a staple product. Further, in the third quarter we will begin marketing the new Vigil Essential and we are excited to enter beta testing with Vigil Mobile, our new smart phone application," stated Troy Griffiths, President and CEO of Vigil Health Solutions Inc.

Financial Results

Revenue for the three-months ended September 30, 2014 was $1.04 million compared to $1.31 million in the three-month period ended September 30, 2013, a decrease of 20%. Project revenue made up 53% of total revenue; the remaining revenue came from follow on sales to existing customers. These sales include service and maintenance billings and replacement products including wireless devices and communication equipment.

Bookings for the quarter were $1.02 million down 8% compared to $1.12 million in the three-month period ended September 30, 2013.

At September 30, 2014 Vigil had a backlog of approximately $3.02 million (including $1.29 million in deposits and progress billings, recorded as deferred revenue on the balance sheet) compared to approximately $3.26 million (including $1.45 million in deposits and progress billings, recorded as deferred revenue on the balance sheet) at September 30, 2013. At September 30, 2014, Vigil's backlog included 34 projects at varying stages of installation and progress billing with an average project size of $89 thousand compared to 38 projects with an average value of $86 thousand at September 30, 2013. Projects can include individual buildings or floors of multiple phase campus construction. 

The gross margin percentage for the three months ended September 30, 2014 was 49% compared to 45% for the three months ended September 30, 2013. Gross margin was slightly higher than management's usual expectations of margins of between 42% and 47%.

Expenditures for the three months ended September 30, 2014 were $532 thousand, down 8% from $577 thousand for the period ended September 30, 2013. Expenses were higher in the prior year because a 162% increase in Vigil's share price had increased the value of share based awards resulting in an unusually large compensation adjustment.

Net income for the three month period ended September 30, 2014 was $10 thousand, or $0.001 per share compared to income of $22 thousand, or $0.001 per share for the previous year. The decline in profitability relates to the 20% decrease in revenue year over year.

Detailed financial statements along with Management Discussion and Analysis have been filed with SEDAR (www.sedar.com).

Financial information will be mailed to entitled security holders on November 28, 2014. Or, upon notice to the Company, entitled security holders may request a copy of financials in advance.

 
Summary Financial Information
  Three months ended
Six months ended
  September 30,
2014
 September 30,
2013
September 30,
2014
September 30,
2013
Revenue$1,044,703 1,310,2062,235,3282,204,103
Cost of sales 530,806 720,9091,104,1231,144,007
  513,897 589,2971,131,2051,060,096
       
Expenses 531,990 577,2271,094,6281,040,657
       
Income (loss) before the following items (18,093)12,07036,57719,439
       
Other income (expense) 28,515 9,4755,35122,607
       
Income for the period$10,422 21,54541,92842,046
       

Non-IFRS Measure

For the three months ended September 30, 2014, we are disclosing Adjusted EBITDA, a non-IFRS financial measure, as a supplementary indicator of operating performance. We define Adjusted EBITDA as net income before, interest, income taxes, amortization, stock based compensation and currency gains or losses including derivative foreign exchange differences. We are presenting the non-IFRS financial measure in our filings because we use it internally to make strategic decisions, forecast future results and to evaluate our performance and because we believe that our current and potential investors and analysts use the measure to assess current and future operating results and to make investment decisions. It is a non-IFRS measure, may not be comparable to other companies and it is not intended as a substitute for IFRS measures.

      
  Three months ended Six months ended
 
  September 30,
2014
 September 30,
2013
 September 30,
2014
 September 30,
2013
 
          
Income / (loss) for the period$10,422 21,545 41,928 42,046 
          
Add / (deduct)         
 Foreign exchange (37,269)(2,695)(6,885)(19,473)
 Derivative exchange 9,040 (6,890)1,560 (3,989)
 Interest (286)110 (898)855 
 Stock based compensation 22,186 24,645 34,091 34,622 
 Amortization 4,789 4,162 9,383 7,666 
          
  (1,540)19,332 37,251 19,681 
          
Adjusted EBITDA$8,882 40,877 79,179 61,727 
          

About Vigil Health Solutions Inc.

Vigil offers a proprietary technology platform combining software and hardware to provide comprehensive solutions to the expanding seniors' housing market. Vigil has established a growing presence in North America and an international reputation for being on the leading edge of systems design and integration. Vigil's objective is to offer solutions for the full continuum of care. Vigil's product range includes the innovative wireless Vitality Care System™ featuring discreet 'mini pendants', a nurse call system, mobile fall/incontinence monitoring, resident check-in and the award-winning Vigil Dementia System.

Certain statements contained in this news release that are not based on historical facts may constitute forward-looking statements or forward-looking information within the meaning of applicable securities laws ("forward-looking statements"). These forward-looking statements are not promises or guarantees of future performance but are only predictions that relate to future events, conditions or circumstances or our future results, performance, achievements or developments and are subject to substantial known and unknown risks, assumptions, uncertainties and other factors that could cause our actual results, performance, achievements or developments in our business or in our industry to differ materially from those expressed, anticipated or implied by such forward-looking statements.

Forward-looking statements include all financial guidance, disclosure regarding possible events, conditions, circumstances or results of operations that are based on assumptions about future economic conditions, courses of action and other future events. We caution you not to place undue reliance upon any such forward-looking statements, which speak only as of the date they are made. These forward-looking statements appear in a number of different places in this presentation and can be identified by words such as "may", "estimates", "projects", "expects", "intends", "believes", "plans", "anticipates", or their negatives or other comparable words. Forward-looking statements include statements regarding the outlook for our future operations, plans and timing for the introduction or enhancement of our services and products, statements concerning strategies or developments, statements about future market conditions, supply conditions, end customer demand conditions, channel inventory and sell through, revenue, gross margin, operating expenses, profits, forecasts of future costs and expenditures, the outcome of legal proceedings, and other expectations, intentions and plans that are not historical fact.

The risk factors and uncertainties that may affect our actual results, performance, achievements or developments are many and include, amongst others, our ability to develop our sales force and generate revenue, the length of the sales cycle, management of the Company's growth, ability to recruit and retain staff, fluctuations in demand for current and future products, our ability to develop, manufacture, supply and market existing and new products that meet the needs of customers, volatility in the exchange rate, ability to secure financing, ability to secure product liability insurance, the continuous commitment of our customers, increased competition, changes in regulation and reliance on third party suppliers. These risk factors and others are discussed in the Risks and Uncertainties section of our "Management Discussion and Analysis" segment of our fiscal 2014 Annual Report. Many of these factors and uncertainties are beyond the control of the Company. Consequently, all forward-looking statements in this news release are qualified by this cautionary statement and there can be no assurance that actual results, performance, achievements or developments anticipated by the Company will be realized.

Forward-looking statements are based on management's current plans, estimates, projections, beliefs and opinions and, except as required by law, the Company does not undertake any obligation to update forward-looking statements should the assumptions related to these plans, estimates, projections, beliefs and opinions change.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information:

For further information please contact:
Troy Griffiths
President and CEO
Tel: (250) 383-6900
Fax: (250) 383-6999
Email: information@vigil.com 

Vigil Health Solutions Inc.
2102-4464 Markham Street
Victoria, BC
V8Z 7X8
Website: www.vigil.com