Company reports 46% year-over-year revenue growth and material
profitability for the quarter MARKHAM, ON, Aug. 15, 2012 /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 ended June 30, 2012. Q1 Fiscal 2013
Financial and Operational Summary -- Revenue was $5.6 million, up
46% compared to $3.8 million in Q1 F2012, primarily reflecting an
increase in revenue from the Company's software business. Revenue
was up 3% from $5.4 million in Q4 F2012. o Total software revenue
(EMR and Practice Management) was $5.5 million, up 64% from $3.3
million in Q1 F2012 and up 9% from $5.0 million in Q4 F2012. --
Gross profit was $4.9 million, or 89% of revenue, compared to $3.2
million, or 83% of revenue, in Q1 F2012 and $4.5 million, or 84% of
revenue, in Q4 F2012. -- Operating Expenses, excluding stock based
compensation, depreciation, amortization and one-time business
acquisition, integration and other one-time costs were $4.0 million
compared to $3.1 million in Q1 F2012 and $4.3 million in Q4 F2012.
-- Adjusted EBITDA1 was $0.9 million, 16% of revenue, up from $0.03
million in Q1 F2012 and $0.3 million in Q4 F2012, or 8% of revenue.
-- Net income was $0.25 million compared to a net loss of $0.42
million in Q1 F2012 and a net loss of $0.29 million in Q4 F2012. --
Cash used in operations was $0.4 million compared to $0.1 million
in Q1 F2012. -- Total deferred revenue was $7.5 million up from
$7.3 million as at March 31, 2012. "Fiscal 2013 is off to a strong
start," said Sam Chebib, President and CEO of Nightingale. "As a
result of our EMR market share gains, we generated a material
year-over-year increase in revenue and Adjusted EBITDA, and we
achieved solid profitability in the quarter. After exiting the
Revenue Cycle Management service business, this is our first
quarter as a software "pure-play", and our strong results for the
quarter validate our strategy. We have a robust EMR deployment
pipeline, we are seeing increasing demand with physicians and new
opportunities are emerging with peripheral healthcare practitioners
and markets. As a result, we are confident our revenue growth and
year-over-year improvements in Adjusted EBITDA will continue."
Fiscal 2013 First Quarter Financial Review The Company's results
are prepared in accordance with International Financial Reporting
Standards (IFRS) and in Canadian dollars unless otherwise stated.
Revenue for Q1 F2013 was $5.6 million, an increase of $1.8 million,
or 46%, from $3.8 million for Q1 F2012. The year-over-year
improvement reflects a $2.1 million increase in revenue from the
Company's software business, which grew to $5.5 million in Q1 F2013
primarily as a result of the Company's major contract win in Q3
F2012. The strengthening in revenue from Nightingale's software
business was partially offset by a decrease in revenue from the
Company's Revenue Cycle Management services business, which is no
longer a strategic focus for Nightingale. Recurring Revenue(2) for
Q1 F2013 was $2.7 million (49% of revenue), an increase of $0.2
million, or 10%, from $2.5 million (65% of revenue) in Q1 F2012,
predominantly as a result of the acquisition of the Medrium
business in Q3 F2012. Non-Recurring Revenue(2) for Q1 F2013 was
$2.9 million, an increase of $1.5 million, or 113%, from $1.3
million for Q1 F2012, primarily as a result of the Company's major
contract win. For Q1 F2013, gross margin was 89% ($4.9 million
gross profit) compared to 83% ($3.2 million gross profit) for Q1
F2012. The year-over-year increase was a function of product mix,
as the Company has moved away from providing lower margin
healthcare services to increasingly focus on being a leading
technology provider. Operating expenses for Q1 F2013 increased 30%
to $4.1 million (73% of revenue) excluding charges for stock based
compensation and depreciation and amortization, or 28% to $4.0
million (72% of revenue) also excluding one-time business
acquisition, integration and other one-time costs, compared to
operating expenses of $3.1 million (83% of revenue) excluding
charges for stock based compensation and depreciation and
amortization for Q1 F2012. Sequentially, operating expenses were
down 5% from $4.3 million in Q4 F2012. For Q1 F2013, Adjusted
EBITDA was $0.9 million (16% of revenue), compared to $0.03 million
(1% of revenue) in Q1 F2012. For Q1 F2013, net income was $0.25
million, or $0.30 million excluding one-time business acquisition,
integration and other costs. This is compared to a net loss of
$0.42 million in Q1 F2012. Cash and cash equivalents were $1.4
million at June 30, 2012, down from $3.2 million at March 31, 2012,
primarily as a result of the Company's increased investments in its
long-term strategic growth initiatives. Current assets remained
flat at $6.2 million from March 31, 2012 to June 30, 2012. At June
30, 2012, 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 15,
2012. This press release should be read in conjunction with
Nightingale's Consolidated Financial Statements and the
accompanying Management Discussion and Analysis for the quarter
ended June 30, 2012. Notice of Conference Call Nightingale will
host a conference call on Wednesday, August 15, 2012, 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 17543339 prior to the beginning of the call
to ensure participation. The conference call will be archived for
replay until Wednesday, August 22, 2012. To access the archived
conference call, dial 416-849-0833 or 1-855-859-2056 and enter
reference 17543339#. To listen to the conference call replay on the
internet please visit the Nightingale website shortly after the
call at www.nightingalemd.com. Non-IFRS Financial Measures The
Company internally measures its performance and results of
initiatives through a number of measures that are not recognized
under IFRS and may not be comparable to similar measures used by
other companies. 1. Adjusted EBITDA Adjusted EBITDA is a non-IFRS
measure that management believes is a useful measurement to
evaluate the performance of the Company. Investors should be
cautioned, however, that Adjusted EBITDA should not be construed as
an alternative to net earnings as determined in accordance with
IFRS. The Company's method of calculating Adjusted 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. Adjusted EBITDA is defined as earnings before other loss
(income), interest, income taxes, depreciation, amortization,
stock-based compensation, and business acquisition, integration and
other costs. 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 Adjusted EBITDA to Loss and
Comprehensive Loss: Three Months Three Months Ended Ended
Definition June 30, 2012 June 30, 2011 Loss and Comprehensive
Income $ 249,637 $ (425,170) (Loss) Adjustments for: Current Tax
Expense (Benefit) $ 13,480 $ (6,198) Other Loss (Income) 68,171
(8,924) Interest 93,214 114,930 Depreciation and Amortization
374,877 320,437 Stock-Based Compensation 66,423 39,915 Acquisition,
Integration and 49,971 - Other Adjusted EBITDA $ 915,773 $ 34,990
2. 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
IFRS. 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 perpetual software and systems
licenses and related training, data conversion and installation
services. The following provides a reconciliation of Recurring
Revenue and Non-Recurring Revenue to Revenue: Three Months Three
Months Ended Ended Definition June 30, 2012 June 30, 2011
Non-Recurring Revenue $ 2,856,388 $ 1,342,310 Recurring Revenue
2,704,729 2,462,890 Revenue $ 5,561,117 $ 3,805,200 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. CONDENSED CONSOLIDATED
STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME AND LOSS FOR THE
THREE MONTHS ENDED JUNE 30, 2012 Unaudited (Canadian Dollars) Three
Months Three Months Ended Ended June 30,2012 June 30, 2011 Revenue
$ 5,561,117 $ 3,805,200 Cost of sales 620,671 630,393 Gross profit
4,940,446 3,174,807 Expenses General and administration 864,502
727,156 Sales and marketing 1,056,375 810,868 Research and
development 1,522,606 946,997 Client services 1,022,490 1,015,148
Business acquisition, 49,971 - integration and other 4,515,944
3,500,169 Operating income (loss) 424,502 (325,362) Interest 93,214
114,930 Foreign currency loss (gain) 68,171 (8,924) Income (Loss)
before tax 263,117 (431,368) Current tax expense (benefit) 13,480
(6,198) Income (Loss) and $ 249,637 $ (425,170) comprehensive
income (loss) Basic and diluted income (loss) per common share
Basic and diluted income $ 0.00 $ (0.01) (loss) per common share
Weighted average number of 76,310,915 76,310,915 common shares
CONDENSED CONSOLIDATED BALANCE SHEET AS AT JUNE 30, 2012
Unaudited (Canadian Dollars) June 30, 2012 March 31, 2012 ASSETS
Current assets Cash and cash $ 1,422,130 $ 3,199,058 equivalents
Accounts receivable 3,990,144 2,267,854 Other receivables 91,705
103,513 Prepaid expenses 675,714 581,593 6,179,693 6,152,018
Long-term assets Property and equipment 719,120 450,989 Intangible
assets 6,270,538 5,808,744 Goodwill 4,792,399 4,792,399 11,782,057
11,052,132 Total assets $ 17,961,750 $ 17,204,150 LIABILITIES
Current liabilities Line of credit 670,000 $ 670,000 Accounts
payable and 3,767,721 3,351,187 accrued liabilities Current portion
of 4,908,908 4,689,175 deferred revenue Current portion of 99,331
122,710 finance lease obligations Current portion of 890,838
872,813 term loan 10,336,798 9,705,885 Long term liabilities Term
loan 2,110,195 2,287,608 Convertible debentures 1,829,464 1,802,256
Deferred revenue 2,569,945 2,619,448 Finance lease 33,494 37,345
obligations Income taxes payable 701,107 686,921 7,244,205
7,433,578 Total liabilities 17,581,003 17,139,463 SHAREHOLDERS'
EQUITY Capital stock 29,629,683 29,629,683 Contributed surplus
4,877,879 4,811,456 Equity portion of 333,808 333,808 convertible
debentures Warrants 701,452 701,452 Deficit (35,162,075)
(35,411,712) 380,747 64,687 Total liabilities and $ 17,961,750 $
17,204,150 shareholders' equity CONDENSED CONSOLIDATED STATEMENT OF
CASH FLOWS FOR THE THREE MONTHS ENDED JUNE 30, 2012 Unaudited
(Canadian Dollars) Three Months Three Months Ended Ended June 30,
2012 June 30, 2011 Cash flow from operating activities Income
(Loss) from $ 249,637 $ (425,170) operations Adjustments for:
Depreciation and 374,876 320,438 amortization Charge to bad debt
expense 15,326 - Amortization of 11,595 13,131 transaction costs
related to debt financing Stock based compensation 66,423 39,915
Unrealized foreign 116,559 (24,762) exchange (gain) loss Interest
accretion 23,121 23,121 857,535 (53,327) Changes in non-cash
working capital balances Accounts receivable (1,760,592) 421,075
Prepaid expenses (94,121) (97,528) Inventory - 2,233 Other
receivables 9,990 15,617 Accounts payable and 375,229 (362,711)
accrued liabilities Income taxes payable 14,186 (3,512) Deferred
revenue 170,230 78,153 Cash flows provided by (427,541) (126,147)
(used in) operating activities Cash flow from investing activities
Purchase of property and (339,403) (20,844) equipment Acquisition
of intangible (765,398) (191,769) assets Cash flows used in
(1,104,801) (212,613) investing activities Cash flow from financing
activities Proceeds from line of - 960,000 credit borrowing
Repayment of line of - (950,000) credit borrowing Repayment of term
loan (218,749) (200,000) Repayment of capital lease (27,230)
(85,793) obligations Cash flows provided by (245,979) (275,793)
(used in) financing activities Foreign exchange losses on 1,393
(2,649) cash in foreign currency Net increase (decrease) in
(1,776,928) (617,202) cash Cash and cash equivalents, 3,199,058
4,165,406 beginning of period Cash and cash equivalents, $
1,422,130 $ 3,548,204 end of period OVERALL PERFORMANCE, RESULTS OF
OPERATIONS AND FINANCIAL CONDITION Fiscal Fiscal Q1 Q2 Q3 Q4 Year
Q1 Q2 Q3 Q4 Year Q1 In $ 000's Ended Ended Ended Ended Ended Ended
Ended Ended Ended Ended Ended (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) 2010 2010 2010 2011 2011 2011 2011
2011 2012 2012 2012 Recurring Revenue $2,843 $2,723 $2,661 $2,452
$10,679 $2,463 $2,367 $2,473 $2,889 $10,192 $ 2,705 Non-Recurring
Revenue 1,559 1,491 1,744 1,901 6,695 1,342 1,439 2,620 2,486 7,888
2,856 Revenue 4,402 4,214 4,405 4,353 17,374 3,805 3,807 5,093
5,376 18,080 5,561 Gross Profit 3,533 3,336 3,502 3,675 14,047
3,175 2,961 4,384 4,509 15,030 4,940 Operating Expenses 3,357 3,553
3,686 3,870 14,466 3,500 3,225 4,369 4,804 15,897 4,516 EBITDA
(non-IFRS measure) 616 395 340 384 1,736 35 93 917 231 1,330 916
Operating Income (Loss) for the Period 176 (216) (184) (195) (419)
(325) (263) 16 (295) (868) 425 Income (Loss) and Comprehensive
Income (Loss) (1) (413) (309) (266) (989) (425) (353) (155) (285)
(1,218) 250 Income (Loss) and Comprehensive Income (Loss) per
Common Share $(0.00) $(0.01) $(0.00) $(0.00) $(0.01) $(0.00)
$(0.00) $(0.00) $(0.01) $(0.02) $0.00 Weighted Avg. # of Common
Shares 72,809 76,311 76,311 76,311 75,979 76,311 76,311 76,311
76,311 76,311 76,311 Total Assets $16,789 $15,669 $15,080 $16,216
$16,216 $15,334 $15,042 $17,794 $17,204 $17,204 $17,962 Total
Long-Term Liabilities $1,979 $5,185 $5,337 $6,115 $6,115 $5,819
$5,972 $8,102 $7,434 $7,434 $7,244 Total Deferred Revenue $5,805
$6,010 $6,788 $7,510 $7,510 $7,588 $7,607 $7,797 $7,309 $7,309
$7,479 Nightingale Informatix Corporation CONTACT:
Michael Ford, CFONightingale Informatix CorporationTel:
905-307-7870mford@nightingalemd.com Kristen Dickson, Senior Account
ExecutiveTMX EquicomTel: 416-815-0700 ext.
273kdickson@equicomgroup.com
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