NGH

MARKHAM, ON, Aug. 25, 2011 /CNW/ -- Company reports tenth consecutive quarter of positive EBITDA MARKHAM, ON, Aug. 25, 2011 /CNW/ - Nightingale Informatix Corporation ("Nightingale" or the "Company") (TSX-V: NGH), an application service provider (ASP) of electronic medical record (EMR) software and related services, announces its financial results for the quarter ended June 30, 2011. This is the Company's first set of consolidated financial statements prepared under International Financial Reporting Standards (IFRS). All results are reported in IFRS and in Canadian dollars unless otherwise stated. Q1 Fiscal 2012 Financial and Operational Summary -- Revenue was $3.8 million, compared to $4.4 million in Q1 F2011, primarily reflecting a decrease in software license revenue. o Total software revenue (EMR and Practice Management) was $3.3 million compared to $3.6 million in Q1 F2011. -- Gross profit was $3.2 million, or 83% of revenue, compared to $3.5 million, or 80% of revenue, in Q1 F2011. -- Expenses were $3.5 million compared to $3.4 million in Q1 F2011. -- EBITDA was $0.02 million compared to $0.6 million in Q1 F2011. -- Net loss was $0.4 million compared to $0.0001 million in Q1 F2011. -- Cash from operations was $(0.1) million compared to $1.0 million in Q1 F2011. -- Cash and cash equivalents was $3.5 million compared to $4.2 million as at March 31, 2011. -- Total deferred revenue was $7.6 million up from $7.5 million as at March 31, 2011. -- Signed agreements with healthcare providers to deploy more than 90 EMR seats(2) down from approximately 200 seats in Q1 F2011. -- Subsequent to quarter end, received U.S. certification for Nightingale On Demand V10.0 as a Complete EHR by the Certification Commission for Health Information Technology (CCHIT®). This expands the Company's market opportunity, as now eligible Nightingale customers in the U.S. qualify for up to US$44,000 in funding incentives. -- Subsequent to quarter end, received ISO 13485:2003 certification, further demonstrating the Company's commitment to providing its EMR customers with high-quality products, service and support. ISO certification is becoming a requirement to qualify for future funding initiatives in some jurisdictions. "Despite robust EMR buying activity with small to medium clinics, our Q1 results were lower than expected as we had fewer enterprise sales," said Sam Chebib, President and CEO of Nightingale. "We have seen larger-scale EMR RFPs emerge, which led to delays in enterprise purchasing decisions in the quarter. We are focused on these opportunities accordingly, and our pipeline is building nicely. There continues to be potential for EMR sales to fluctuate quarter-to-quarter. However, we are committed to returning to the positive performance trends we have previously demonstrated, and we believe we remain on track with our long-term growth plans. The fundamentals of the EMR market and our business are strong. We are a leader in Canada, and with the recent certification of our EMR offering in the U.S., we have expanded our overall addressable market." Fiscal 2012 First Quarter Financial Review Nightingale's Q1 fiscal 2011 results are the Company's first set of consolidated financial statements prepared under IFRS. For more detailed information regarding the Company's transition to IFRS, including a reconciliation of the Company's Q1 fiscal 2011 results as originally reported in Canadian Generally Accepted Accounting Principles (CGAAP) to IFRS please refer to the Company's financial statements and MD&A filings on SEDAR at www.sedar.com. Revenue for Q1 fiscal 2012 was $3.8 million, down 14% from $4.4 million for Q1 fiscal 2011. The year-over-year decrease was the result of declines in revenue from the Company's software and revenue cycle management businesses. In addition, total revenues were negatively impacted by $0.1 million related to foreign exchange (the Company generated 45% of Q1 fiscal 2012 revenue in the US) which predominantly affected the Company's recurring revenue results. Recurring Revenue(3) for Q1 fiscal 2012 was $2.5 million (65% of revenue), down in comparison to $2.8 million (65% of revenue) for Q1 fiscal 2011 predominantly as a result of a decrease in revenue cycle management revenue. Non-Recurring Revenue(3) for Q1 fiscal 2012 was $1.3 million compared to $1.6 million for Q1 fiscal 2011, with the year-over-year decrease primarily due to a decline in EMR software license sales. For Q1 fiscal 2012, gross margin was 83% ($3.2 million gross profit) compared to 80% ($3.5 million gross profit) for Q1 fiscal 2010. The year-over-year margin increase is a function of product mix, as the Company generated a greater proportion of higher margin EMR revenue in Q1 fiscal 2012. Operating expenses for Q1 fiscal 2012 were $3.5 million compared to $3.4 million for Q1 fiscal 2011. The year-over-year change was primarily the result of Nightingale's increased investments in research and development, as well as EMR implementation and customer training to support its long-term growth initiatives. These increases in investments were partially offset by a positive $0.07 million foreign exchange impact, as the Company generated 34% of fiscal 2011 operating expenses in U.S. dollars. For Q1 fiscal 2012, EBITDA was $0.02 million compared to $0.6 million in Q1 fiscal 2011, and net loss for Q1 fiscal 2012 was $0.4 million compared to a net loss of $687 in Q1 fiscal 2011. Cash and cash equivalents decreased to $3.5 million at June 30, 2011, down 15% from $4.2 million at March 31, 2011, primarily as a result of the Company's increased investment in its long-term strategic growth initiatives. At June 30, 2011, total common shares issued and outstanding were 76,310,915. The financial statements and MD&A will be available at www.nightingalemd.com and filed on www.sedar.com on August 25, 2011.  This press release should be read in conjunction with Nightingale's Consolidated Financial Statements for the quarter ended June 30, 2011 and the accompanying Management Discussion and Analysis. Notice of Conference Call Nightingale will host a conference call on Thursday, August 25, 2011, at 8:30 a.m. Eastern Standard Time. To access the conference call by telephone, dial (888) 231-8191 (or (647) 427-7450 for international). Please connect approximately fifteen minutes prior to the call, and reference conference ID 94377169 prior to the beginning of the call to ensure participation. The conference call will be archived for replay until Thursday, September 1, 2011. To access the archived conference call, dial 416-849-0833 or 1-855-859-2056 and enter reference 94377169 #. To listen to the conference call replay on the internet please visit the Nightingale website shortly after the call at www.nightingalemd.com. Non-GAAP Financial Measures The Company internally measures its performance and results of initiatives through a number of measures that are not recognized under Canadian generally accepted accounting principles (GAAP) and may not be comparable to similar measures used by other companies. 1. EBITDA EBITDA is a non-GAAP measure that management believes is a useful measurement to evaluate the performance of the Company. Investors should be cautioned, however, that EBITDA should not be construed as an alternative to net earnings as determined in accordance with GAAP. The Company's method of calculating EBITDA may differ from the methods used by other companies and, accordingly, it may not be comparable to similarly titled measures used by other companies. EBITDA is defined as earnings before other loss (income), interest, income taxes, depreciation, amortization, and stock-based compensation. Management believes it is useful to exclude these items as they are either non-cash expenses, items that cannot be influenced by management in the short term, or items that do not impact core operating performance, and Management uses this information internally for forecasting and budgeting purposes. The following provides a reconciliation of EBITDA to Loss and Comprehensive Loss (dollars are in thousands): Quarter Ended Quarter Ended Definition June 30, 2011 June 30, 2010 Loss and Comprehensive Loss $ (437) $ (1) Adjustments for: Current Tax Expense (Benefit) $ (6) $ 17 Other Loss (Income) (9) (11) Interest 115 171 Depreciation and Amortization 320 419 Stock-based Compensation 40 21 EBITDA $ 23 $ 616 2. Seat Sale "Seat" is defined as a paying healthcare provider using Nightingale's Electronic Medical Record. 3. Recurring and Non-Recurring Revenue The Company has included recurring revenue and non-recurring revenue measurements since it believes that this information is useful to investors to evaluate its performance. Investors should be cautioned, however, that recurring revenue and non-recurring revenue should not be construed as an alternative to revenue as determined in accordance with GAAP.  Recurring Revenue is comprised of utilization fees, hosting, support and maintenance revenue, data management and transcription services, billing and financial management services and transactional fees.  Non-Recurring Revenue is comprised of revenues generated from sales of software and systems and related training, data conversion and installation services. The following provides a reconciliation of Recurring Revenue and Non-Recurring Revenue to Revenue (dollars are in thousands): Quarter Ended Quarter Ended Definition June 30, 2011 June 30, 2010 Non-Recurring Revenue $ 1,341 $ 1,558 Recurring Revenue 2,464 2,843 Revenue $ 3,805 $ 4,401 About Nightingale Nightingale is one of the fastest growing health care service and software companies in North America and is recognized as an industry leader in Web-based clinician and community based electronic medical records (EMR) serving the needs of small primary care practices, multi-physician outpatient clinics, and large scale regional health organizations and networks. Coupled with integrated practice management, transcription and revenue cycle management, Nightingale's comprehensive service offering allows customers to enhance patient care, increase revenue opportunities and optimize operations. Nightingale is continuously innovating and enhancing its services to meet the needs of its growing and diverse customer base. Nightingale - Healthcare connected. www.nightingalemd.com Forward Looking Statement This press release contains "forward-looking statements" respecting the issuance and cancellation of securities of the Company within the meaning of applicable Canadian securities legislation. Generally, forward-looking statements can be identified by the use of forward- looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or 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". Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Nightingale to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to the speculative nature of the medical software industry, which is affected by numerous factors beyond Nightingale's control; the ability of Nightingale to successfully integrate its acquisitions and any liabilities arising as a result of such acquisitions, access to capital and agreements with its Lenders; the existence of present and possible future government regulation; access to debt or equity financing and agreements with its Lenders; the significant and increasing competition that exists in the medical software industry; the early stage of Nightingale's business; and therefore it is subject to the risks associated with early stage companies, including uncertainty of revenues, markets and profitability and the need to raise additional funding.  All material assumptions used in making forward-looking statements are based on management's knowledge of current business conditions and expectations of future business conditions and trends. Although management believes the assumptions used to make such statements are reasonable at this time, our assumptions may not to be as anticipated, estimated or intended. Certain material factors or assumptions applied by management in making forward-looking statements, include without limitation, factors and assumptions regarding Nightingale's continued ability to fund its business, rates of customer defaults, relationships with, and payments to, lenders, demand for Nightingale's products, as well as Nightingale's operating cost structure. Although Nightingale has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Nightingale does not undertake to update any forward-looking statements that are incorporated by reference herein, except in accordance with applicable securities laws. Further information on Nightingale Informatix Corporation is available at www.sedar.com. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.   CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE LOSS FOR THE THREE MONTHS ENDED JUNE 30, 2011 Three Months Three Months Ended Ended June 30,2011 June 30, 2010 Revenue $ 3,805,200 $4,401,490 Cost of sales 641,967 868,121 Gross profit 3,163,233 3,533,369 Expenses General and administration 727,157 796,946 Sales and marketing 810,868 830,334 Research and development 946,997 807,377 Client services 1,015,148 922,524 3,500,169 3,357,181 Operating income (loss) (336,936) 176,188 Interest 114,930 170,791 Foreign currency gain (8,924) (10,988) Loss before tax (442,942) 16,385 Current tax expense (6,198) 17,072 Loss and comprehensive loss $ (436,744) $ (687) Basic and diluted loss per common share Loss and comprehensive loss per $ (0.01) $ (0.00) common share Weighted average number of 76,310,915 72,808,928 common shares   CONSOLIDATED BALANCE SHEET AS AT JUNE 30, 2011 June 30, 2011 March 31, 2011 ASSETS Current assets Cash and cash equivalents $ 3,548,204 $ 4,165,406 Accounts receivable 2,605,034 3,006,073 Other receivables 51,310 66,868 Inventory 17,649 19,882 Prepaid expenses 641,747 418,072 6,863,944 7,676,301 Long-term assets Deferred costs 186,827 198,401 Property and equipment 485,292 573,928 Intangible assets 3,292,728 3,273,672 Goodwill 4,692,399 4,692,399 8,657,246 8,738,400 Total assets $ 15,521,190 $ 16,414,701 LIABILITIES Current liabilities Line of credit $ 960,000 $ 950,000 Accounts payable and accrued 1,953,901 2,323,880 liabilities Current portion of deferred 4,962,560 4,778,811 revenue Current portion of capital 120,450 145,437 lease obligations Current portion of term loan 800,000 800,000 8,796,911 8,998,128 Long term liabilities Term loan 576,900 767,857 Convertible debentures 1,847,259 1,820,050 Deferred revenue 2,625,479 2,731,075 Capital lease obligations 105,521 128,130 Income taxes payable 664,196 667,708 5,819,355 6,114,820 Total liabilities 14,616,266 15,112,948 SHAREHOLDERS' EQUITY Capital stock 29,629,683 29,629,683 Contributed surplus 4,735,568 4,796,509 Equity portion of convertible 269,880 269,880 debentures Warrants 701,452 701,452 Deficit (34,431,659) (34,114,149) 904,924 1,301,753 Total liabilities and $ 15,521,190 $ 16,414,701 shareholders' equity   CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE THREE MONTHS ENDED JUNE 30, 2011 Three Months Three Months Ended Ended June 30, 2011 June 30, 2010 Cash flow from operating activities Loss from operations $ (436,744) $ (687) Adjustments for: Depreciation and amortization 320,438 419,266 Amortization of transaction 13,131 - costs related to debt financing Stock based compensation 39,915 20,834 Unrealized foreign exchange (24,762) 101,580 (gain) loss Interest accretion 23,121 - (64,901) 540,993 Changes in non-cash working capital balances Accounts receivable 421,075 (362,703) Prepaid expenses (223,675) (211,615) Inventory 2,233 3,873 Deferred costs 11,574 - Other receivables 15,617 102,430 Accounts payable and accrued (362,711) 323,842 liabilities Income taxes payable (3,512) 29,026 Deferred revenue 78,153 565,468 Cash flows provided by (used (126,147) 991,314 in) operating activities Cash flow from investing activities Purchase of property and (20,844) (54,388) equipment Acquisition of intangible (191,769) (257,942) assets Cash flows used in investing (212,613) (312,330) activities Cash flow from financing activities Proceeds from line of credit 960,000 - borrowing Repayment of line of credit (950,000) - borrowing Proceeds from issuance of - 1,250,120 common shares, net of costs Repayment of term loan (200,000) - Repayment of capital lease (85,793) (68,990) obligations Cash flows provided by (used (275,793) 1,181,130 in) financing activities Foreign exchange losses on cash (2,649) (51,692) in foreign currency Net increase (decrease) in cash (617,202) 1,808,422 Cash and cash equivalents, 4,165,406 1,798,247 beginning of period Cash and cash equivalents, end $ 3,548,204 $ 3,606,669 of period   OVERALL PERFORMANCE, RESULTS OF OPERATIONS AND FINANCIAL CONDITION QUARTERLY DATA CGAAP CGAAP CGAAP CGAAP CGAAP IFRS IFRS IFRS IFRS IFRS IFRS ((1)) ((1)) ((1)()) ((1)) ((1)) Fiscal Fiscal Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year Q1 Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended In $ 000's (Except per June Sept March March June Sept March March June Share 30, 30, Dec 31, 31, 31, 30, 30, Dec 31, 31, 31, 30, Amounts) 2009 2009 2009 2010 2010 2010 2010 2010 2011 2011 2011 Recurring Revenue $3,564 $3,341 $3,342 $2,849 $13,096 $2,843 $2,723 $2,661 $2,452 $10,679 $2,464 Non-Recurring Revenue 566 585 1,010 1,324 3,485 1,559 1,491 1,744 1,901 6,695 1,341 Revenue 4,130 3,926 4,352 4,173 16,581 4,402 4,214 4,405 4,353 17,374 3,805 Gross Profit 2,937 2,818 3,314 3,169 12,238 3,533 3,327 3,565 3,737 14,162 3,163 Expenses 3,508 3,327 3,384 3,474 13,693 3,357 3,553 3,686 3,870 14,466 3,500 EBITDA (Loss) (non-GAAP measure) 24 180 593 406 1,203 616 386 404 445 1,851 23 Operating Income (Loss) for the Period (570) (509) (70) (306) (1,455) 176 (225) (121) (135) (304) (337) Loss and Comprehensive Loss (843) (727) (350) (1,524) (3,444) - (422) (245) (205) (874) (437) Loss and Comprehensive Loss per Common Share $(0.01) $(0.01) $(0.00) $(0.02) $(0.05) $(0.00) $(0.01) $(0.00) $(0.00) $(0.01) $(0.00) Weighted Avg. # of Common Shares 69,322 70,535 70,535 70,535 70,232 72,809 76,311 76,311 76,311 75,979 76,311 Total Assets $16,413 $15,170 $14,714 $14,651 $14,651 $16,873 $15,744 $15,218 $16,415 $16,415 $15,521 Total Long-Term Liabilities $7,184 $6,558 $7,062 $7,918 $7,918 $1,979 $5,185 $5,337 $6,115 $6,115 $5,819 Total Deferred Revenue $5,281 $5,033 $4,928 $5,239 $5,239 $5,805 $6,010 $6,788 $7,510 $7,510 $7,588 ((1)) Financial information in this table for periods prior to April 1, 2010 have not been restated for changes in accounting policies on adoption of IFRS. Refer to the Company's MD&A filed on SEDAR at www.sedar.com for a discussion of IFRS and its impact on the Company's financial statements.      To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/August2011/25/c6067.html table valign="top" cellspacing="0" border="0" tr valign="top" td align="left" Michael Ford, CFObr/ Nightingale Informatix Corporationbr/ Tel: 905-307-7870br/ a cr="true" href="mailto:mford@nightingalemd.com"mford@nightingalemd.com/a /td td   /td td   /td td align="left" Kristen Dickson, Account Executivebr/ The Equicom Groupbr/ Tel: 416-815-0700 ext. 273br/ a cr="true" href="mailto:kdickson@equicomgroup.com"kdickson@equicomgroup.com/a /td /tr /table

Copyright