Company reports 11th consecutive quarter of positive EBITDA
MARKHAM, ON, Nov. 29, 2011 /CNW/ - Nightingale Informatix
Corporation ("Nightingale" or the "Company") , an application
service provider (ASP) of electronic medical record (EMR) software
and related services, announces its financial results for the
quarter and six months ended September 30, 2011. The Company's
consolidated financial statements are prepared in accordance with
International Financial Reporting Standards (IFRS). All results are
reported in IFRS and in Canadian dollars unless otherwise stated.
Q2 Fiscal 2012 Financial and Operational Summary -- Revenue was
$3.8 million compared to $4.2 million in Q2 F2011, primarily
reflecting a decrease in software license revenue and revenue cycle
management services. o Total software revenue (EMR and Practice
Management) was $3.4 million compared to $3.6 million in Q2 F2011.
-- Gross profit was $3.0 million, or 79% of revenue, compared to
$3.3 million, or 79% of revenue, in Q2 F2011. -- Operating
Expenses, excluding stock based compensation and depreciation and
amortization, were $2.9 million in line with $2.9 million in Q2
F2011. -- EBITDA was $0.1 million compared to $0.4 million in Q2
F2011. -- Net loss was $0.3 million compared to $0.4 million in Q2
F2011. -- Cash provided by operations was $0.5 million compared to
$0.3 million in Q2 F2011. -- Total deferred revenue was $7.6
million compared to $7.5 million as at March 31, 2011. -- Signed
agreements with healthcare providers to deploy 86 EMR seats2
compared to approximately 200 seats in Q2 F2011, reflecting
near-term delays in purchase decisions in the enterprise market. --
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 eligible Nightingale customers in the U.S. now qualify for up to
US$44,000 in funding incentives. -- 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. -- Subsequent to
quarter end, signed a 100 seat agreement with a Canadian government
agency. "Sales for our EMR offering remain strong with small- to
medium-sized clinics, and demand in the enterprise market continues
to be robust, as demonstrated by our sizable contract win
subsequent to quarter end," said Sam Chebib, President and CEO of
Nightingale. "We are still in the negotiation phase with other
large-scale enterprise contracts, and we are reasonably confident
that we will see positive outcomes in the coming quarters. We have
been devoting the necessary resources to the pursuit of these
significant opportunities, and we believe these efforts will
deliver tangible results in the second half of the fiscal year,
positioning us to deliver accelerated top line growth." Fiscal 2012
Second Quarter and Year To Date (YTD) Financial Review
Nightingale's Q2 and YTD fiscal 2012 results are prepared in
accordance with IFRS. For more detailed information regarding the
Company's transition to IFRS, including a reconciliation of the
Company's Q2 fiscal 2011 YTD 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 Q2 fiscal 2012 was
$3.8 million, down 10% from $4.2 million for Q2 fiscal 2011. YTD
revenue in fiscal 2012 was $7.6 million, down 12%, from $8.6
million in fiscal 2011. The year-over-year decreases were the
result of declines in revenue from the Company's software and
revenue cycle management businesses. In addition, total revenues
were negatively impacted by approximately $0.1 million in the Q2
and YTD periods, related to foreign exchange (the Company generated
42% of Q2 fiscal 2012 revenue in the US and 43% YTD revenue in the
US) which predominantly affected the Company's recurring revenue
results. Recurring revenue(3) for Q2 fiscal 2012 was $2.4 million
(62% of revenue), down in comparison to $2.7 million (65% of
revenue) for Q2 fiscal 2011. YTD recurring revenue for fiscal
2012 was $4.8 million (63% of revenue), down in comparison to $5.6
million (65% of revenue) for YTD fiscal 2011. These decreases were
predominantly a result of a reduction in Revenue Cycle Management
revenue as well as the impact of foreign exchange. Non-recurring
revenue(3) for Q2 fiscal 2012 was $1.4 million compared to $1.5
million for Q2 fiscal 2011. YTD non-recurring revenue for
fiscal 2012 was $2.8 million compared to $3.0 million for YTD
fiscal 2011, with the year-over-year decreases primarily due to a
decline in EMR software license sales. For Q2 fiscal 2012, gross
margin was 79% ($3.0 million gross profit) compared to 79% ($3.3
million gross profit) for Q2 fiscal 2011. For YTD fiscal 2012,
gross margin was 81% ($6.2 million gross profit) compared to 80%
($6.9 million gross profit) for YTD fiscal 2011. Operating
expenses, excluding charges for stock based compensation and
depreciation and amortization, for Q2 fiscal 2012 were $2.9 million
in line with $2.9 million for Q2 fiscal 2011. YTD operating
expenses were $6.0 million in fiscal 2012 compared to $5.9 million
in fiscal 2011. For Q2 fiscal 2012, EBITDA was $0.1 million
compared to $0.4 million in Q2 fiscal 2011, and net loss for Q2
fiscal 2012 was $0.3 million compared to a net loss of $0.4 in Q2
fiscal 2011. For YTD fiscal 2012, EBITDA was $0.1 million compared
to $1.0 million for YTD fiscal 2011, and net loss for YTD Q2 fiscal
2012 was $0.8 million compared to a net loss of $0.4 for YTD fiscal
2011. Cash and cash equivalents were $2.7 million at September 30,
2011, down from $4.2 million at March 31, 2011, primarily as a
result of the Company's increased investments in its long-term
strategic growth initiatives. At September 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 November 29, 2011. This press
release should be read in conjunction with Nightingale's
Consolidated Financial Statements for the quarter and six months
ended September 30, 2011 and the accompanying Management Discussion
and Analysis. Notice of Conference Call Nightingale will host a
conference call on Tuesday, November 29, 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 28399241 prior to the beginning of the call to ensure
participation. The conference call will be archived for replay
until Tuesday, December 6, 2011. To access the archived conference
call, dial 416-849-0833 or 1-855-859-2056 and enter reference
28399241 #. 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): Three Months Three Months Six Months
SixMonths Ended Ended Ended Ended September 30, September
September30, September 2011 30, 2011 30, Definition 2010 2010 Loss
and $ $ (422,118) $ $ Comprehensive (315,381) (752,125) (422,805)
Loss Adjustments for: Current Tax $ $ $ $ Expense 468 (27,593) (
5,730) (10,520) (Benefit) Other Loss (3,783) (4,202) (12,707)
(15,190) (Income) Interest 93,202 228,589 208,132 399,380
Depreciation 311,103 419,588 631,540 838,854 and Amortization
Stock-based 23,297 191,637 63,212 212,471 Compensation EBITDA $
108,906 $ $ 132,322 $ 1,002,190 385,901 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): Three Months Three Months Six Months Six Months
Ended Ended Ended Ended September 30, September 30, September 30,
September 30, Definition 2011 2010 2011 2010 Non-Recurring $ $ $
2,781,683 $ 3,049,160 Revenue 1,439,372 1,490,704 Recurring
2,367,359 2,723,146 4,830,248 5,566,181 Revenue Revenue $ $
4,213,850 $ 7,611,931 $ 8,615,341 3,806,731 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", "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",
"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 secure customer contracts and the timing of securing
such contracts; the ability of Nightingale to complete and
successfully integrate its acquisitions on an accretive basis,
Nightingale's access to debt and capital facilities, including
compliance with current debt arrangements; the existence of present
and possible future government regulation; the significant
competition that exists in the medical software industry; the early
stage of Nightingale's business, and 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. Certain
material factors or assumptions applied by management in making
forward-looking statements, include without limitation, factors and
assumptions regarding future trends in healthcare spending,
economic conditions affecting Nightingale and North American
economies; Nightingale's ability to continue to fund its business,
rates of customer defaults, relationships with, and payments to
lenders, 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 AND SIX MONTHS
ENDED SEPTEMBER 30, 2011 Three Months Three Months SixMonths Six
Months Ended Ended Ended Ended September September September
September 30,2011 30, 2010 30, 2011 30, 2010 Revenue $ $ 4,213,850
$ 7,611,931 $ 8,615,341 3,806,731 Cost of sales 807,629 886,600
1,449,596 1,754,721 Gross profit 2,999,102 3,327,250 6,162,335
6,860,620 Expenses General and 788,777 803,827 1,515,934 1,600,772
administration Sales and 725,059 761,118 1,535,927 1,591,452
marketing Research and 683,971 911,621 1,630,968 1,718,999
development Client 1,026,789 1,076,008 2,041,936 1,998,532 services
3,224,596 3,552,574 6,724,765 6,909,755 Operating (225,494)
(225,324) (562,430) (49,135) income (loss) Interest 93,202 228,589
208,132 399,380 Foreign (3,783) (4,202) (12,707) (15,190) currency
gain Loss before (314,913) (449,711) (757,855) (433,325) tax
Current tax 468 (27,593) (5,730) (10,520) expense Loss and $
(315,381) $ (422,118) $ (752,125) $ (422,805) comprehensive loss
Basic and diluted loss per common share Loss and $ $ $ $
comprehensive (0.00) (0.01) (0.01) (0.01) loss per common share
Weighted 76,310,915 76,310,915 76,310,915 75,649,594 average number
of common shares CONSOLIDATED BALANCE SHEET AS AT SEPTEMBER 30,
2011 September 30, 2011 March 31, 2011 ASSETS Current assets Cash
and cash equivalents $ 2,691,154 $ 4,165,406 Accounts receivable
2,655,890 3,006,073 Other receivables 9,539 66,868 Inventory 4,199
19,882 Prepaid expenses 676,170 418,072 6,036,952 7,676,301
Long-term assets Deferred costs 224,578 198,401 Property and
equipment 439,833 573,928 Intangible assets 3,873,236 3,273,672
Goodwill 4,692,399 4,692,399 9,230,046 8,738,400 Total assets $
15,266,998 $ 16,414,701 LIABILITIES Current liabilities Line of
credit $ 675,000 $ 950,000 Accounts payable and 2,404,249 2,323,880
accrued liabilities Current portion of 4,699,732 4,778,811 deferred
revenue Current portion of capital 103,658 145,437 lease
obligations Current portion of term 800,000 800,000 loan 8,682,639
8,998,128 Long term liabilities Term loan 386,578 767,857
Convertible debentures 1,874,468 1,820,050 Deferred revenue
2,907,671 2,731,075 Capital lease obligations 80,967 128,130 Income
taxes payable 721,835 667,708 5,971,519 6,114,820 Total liabilities
14,654,158 15,112,948 SHAREHOLDERS' EQUITY Capital stock 29,629,683
29,629,683 Contributed surplus 4,758,865 4,695,653 Equity portion
of 269,880 269,880 convertible debentures Warrants 701,452 701,452
Deficit (34,747,040) (33,994,915) 612,840 1,301,753 Total
liabilities and $ 15,266,998 $ 16,414,701 shareholders' equity
CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE THREE AND SIX MONTHS
ENDED SEPTEMBER 30, 2011 Three Months Three Months Six Months Six
Months Ended Ended Ended Ended September September September
September 30, 2011 30, 2010 30, 2011 30, 2010 Cash flow from
operating activities Loss from $ (315,381) $ $ $ operations
(422,118) (752,125) (422,805) Adjustments for: Depreciation 311,104
419,588 631,542 838,854 and amortization Amortization 13,766 43,737
26,897 43,737 of transaction costs related to debt financing Stock
based 23,297 191,637 63,212 212,471 compensation Unrealized 174,094
24 149,332 101,604 foreign exchange (gain) loss Interest 23,121
16,416 46,242 16,416 accretion 230,001 249,284 165,100 790,277
Changes in non-cash working capital balances Accounts (136,626)
298,479 284,449 (64,224) receivable Prepaid (34,423) 116,010
(258,098) (95,605) expenses Inventory 13,450 3,400 15,683 7,273
Deferred (37,751) 9,197 (26,177) 9,197 costs Other 41,157 (42,829)
56,774 59,601 receivables Accounts 335,454 (532,310) (27,257)
(208,468) payable and accrued liabilities Income 57,639 (1,801)
54,127 27,225 taxes payable Deferred 19,364 204,621 97,517 770,089
revenue Cash flows 488,265 304,051 362,118 1,295,365 provided by
operating activities Cash flow from investing activities Purchase
of (6,324) (13,927) (27,168) (69,315) property and equipment
Acquisition (803,296) (222,839) (995,065) (479,781) of intangible
assets Cash flows (809,620) (236,766) (1,022,233) (549,096) used in
investing activities Cash flow from financing activities Proceeds
675,000 840,000 1,635,000 840,000 from line of credit borrowing
Repayment of (960,000) - (1,910,000) - line of credit borrowing
Proceeds from - (7,001) - 1,243,119 issuance of common shares, net
of costs Proceeds from - 2,017,373 - 2,017,373 convertible debt
financing (net of costs) Proceeds from - 1,887,625 - 1,887,625 term
loan (net of costs) Repayment of (200,000) - (400,000) - term loan
Repayment of - (5,284,202) - (5,284,202) subordinated debt
financing Repayment of (77,899) (71,069) (163,692) (140,059)
capital lease obligations Cash flows (562,899) (617,274) (838,692)
563,856 provided by (used in) financing activities Foreign 27,204
(29,125) 24,555 (80,817) exchange losses on cash in foreign
currency Net increase (857,050) (579,114) (1,474,252) 1,229,308
(decrease) in cash Cash and cash 3,548,204 3,606,669 4,165,406
1,798,247 equivalents, beginning of period Cash and cash $
2,691,154 $ $ $ equivalents, 3,027,555 2,691,154 3,027,555 end of
period OVERALL PERFORMANCE, RESULTS OF OPERATIONS AND FINANCIAL
CONDITION QUARTERLY DATA CGAAP CGAAP CGAAP CGAAP IFRS IFRS IFRS
IFRS IFRS IFRS IFRS (1) (1) (1) (1) Fiscal Fiscal Q2 Q3 Q4 Year Q1
Q2 Q3 Q4 Year Q1 Q2 Ended Ended Ended Ended Ended Ended Ended Ended
Ended Ended Ended In $ 000's Sept Dec March March June Sept Dec
March March June Sept (Except per Share 30, 31, 31, 31, 30, 30, 31,
31, 31, 30, 30, Amounts) 2009 2009 2010 2010 2010 2010 2010 2011
2011 2011 2011 Recurring Revenue $ 3,341 $ 3,342 $ 2,849 $ 13,096 $
2,843 $ 2,723 $ 2,661 $ 2,452 $ 10,679 $ 2,463 $ 2,367
Non-Recurring Revenue 585 1,010 1,324 3,485 1,559 1,491 1,744 1,901
6,695 1,342 1,439 Revenue 3,926 4,352 4,173 16,581 4,402 4,214
4,405 4,353 17,374 3,805 3,807 Gross Profit 2,818 3,314 3,169
12,238 3,533 3,327 3,565 3,737 14,162 3,163 2,999 Expenses 3,327
3,384 3,474 13,693 3,357 3,553 3,686 3,870 14,466 3,500 3,225
EBITDA (Loss) (non-GAAPmeasure) 180 593 406 1,203 616 386 404 445
1,851 23 109 Operating Income (Loss) for the Period (509) (70)
(306) (1,455) 176 (225) (121) (135) (304) (337) (225) Loss and
Comprehensive Loss (727) (350) (1,524) (3,444) - (422) (245) (205)
(874) (437) (315) Loss and Comprehensive Loss per Common Share $
(0.01) $ (0.00) $ (0.02) $ (0.05) $ (0.00) $ (0.01) $ (0.00) $
(0.00) $ (0.01) $ (0.00) $ (0.00) Weighted Avg. # of Common Shares
70,535 70,535 70,535 70,232 72,809 76,311 76,311 76,311 75,979
76,311 76,311 Total Assets $ 15,170 $ 14,714 $ 14,651 $ 14,651 $
16,873 $ 15,744 $ 15,218 $ 16,415 $ 16,415 $ 15,521 $ 15,267 Total
Long-Term Liabilities $ 6,558 $ 7,062 $ 7,918 $ 7,918 $ 1,979 $
5,185 $ 5,337 $ 6,115 $ 6,115 $ 5,819 $ 5,972 Total Deferred
Revenue $ 5,033 $ 4,928 $ 5,239 $ 5,239 $ 5,805 $ 6,010 $ 6,788 $
7,510 $ 7,510 $ 7,588 $ 7,607 ((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.
Nightingale Informatix Corporation CONTACT:
_____________________________________________________________________|Michael
Ford, CFO |Kristen Dickson, Account Executive||Nightingale
Informatix Corporation|The Equicom Group ||Tel: 905-307-7870 |Tel:
416-815-0700 ext. 273 ||mford@nightingalemd.com
|kdickson@equicomgroup.com
||__________________________________|__________________________________|
Copyright
Nightingale Informatix Corporati (TSXV:NGH)
Historical Stock Chart
Von Jun 2024 bis Jul 2024
Nightingale Informatix Corporati (TSXV:NGH)
Historical Stock Chart
Von Jul 2023 bis Jul 2024