TORONTO, Nov. 24, 2020 (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 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 INFORMATION
Dan Matlow
Chief Executive Officer, Director
(416) 727-9061
dan.matlow@vitalhub.com