Nightingale Delivers Continued Year-Over-Year Growth in Fiscal 2013
Second Quarter
Company reports 33% year-over-year revenue growth and
record profitability for the quarter
MARKHAM, ON,
Nov. 14, 2012 /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 second quarter ("Q2 F2013") and six months ended
("YTD F2013") September 30, 2012.
Q2 Fiscal 2013 Financial and Operational
Summary
- Revenue was $5.1 million, up 33%
compared to $3.8 million in Q2 F2012,
primarily reflecting an increase in revenue from the Company's
software business.
- Total software revenue (EMR and Practice Management) was
$5.0 million, up 48% from
$3.4 million in Q2 F2012.
- Gross profit was $4.6 million, or
90% of revenue, compared to $3.0
million, or 78% of revenue, in Q2 F2012.
- Operating Expenses, excluding stock based compensation,
depreciation and amortization were $3.6
million compared to $2.9
million in Q2 F2012.
- Adjusted EBITDA1 was $1.0
million, or 19% of revenue, up from $0.1 million, or 2% of revenue, in Q2 F2012.
- Net income was $0.6 million
compared to a net loss of $0.4
million in Q2 F2012.
- Cash provided by operations was $0.2
million compared to $0.5
million in Q2 F2012.
- Completed a non-brokered, private placement of $2.75 million aggregate principal amount of 12%
Series B unsecured subordinated convertible debentures for gross
proceeds of $2.75 million.
Fiscal 2013 YTD Financial Summary
- Revenue was $10.6 million, up 40%
compared to $7.6 million for the same
period in F2012, primarily reflecting an increase in revenue from
the Company's software business.
- Total software revenue (EMR and Practice Management) was
$10.5 million, up 56% from
$6.7 million in for the same period
in F2012.
- Gross profit was $9.5 million, or
89% of revenue, compared to $6.1
million, or 81% of revenue, for the same period in
F2012.
- Operating Expenses, excluding stock based compensation,
depreciation and amortization were $7.7
million compared to $6.0
million for the same period in F2012.
- Adjusted EBITDA1 was $1.9
million, or 18% of revenue, up from $0.1 million, or 2% of revenue, for the same
period in F2012.
- Net income was $0.9 million
compared to a net loss of $0.8
million for the same period in F2012.
- Cash used in operations was $0.3
million compared to cash generated by operations of
$0.4 million for the same period in
F2012.
"Reflecting further expansion of our EMR user
base, we delivered continued year-over-year growth in our key
financial metrics," said Sam Chebib,
President and CEO of Nightingale. "Revenue was up 33%, we recorded
our 15th consecutive quarter of positive EBITDA and we generated
record earnings. We are on-track with our major AOHC EMR
deployment, we are building a particularly strong enterprise sales
pipeline and we continue to win new business with small and
medium-sized clinics. As a result, despite quarter-to-quarter
fluctuations due to the varying mix between recurring and
non-recurring revenue, we expect continued year-over-year revenue
growth and a stronger second half of fiscal 2013."
Fiscal 2013 Second Quarter and Six Months
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 Q2 F2013 was $5.1 million, an increase of $1.3 million, or 33%, from $3.8 million for Q2 F2012. The year-over-year
improvement reflects a $1.6 million
increase in revenue from the Company's software business, which
grew to $5.0 million in Q2 F2013
primarily as a result of the Company's major contract win in Q3
F2012. YTD F2013 revenue was $10.6
million, up $3.0 million, or
40%, from $7.6 million for the same
period in F2012.
Recurring revenue2 for Q2 F2013 was
$2.7 million (53% of revenue), an
increase of $0.3 million, or 13%,
from $2.4 million (62% of revenue) in
Q2 F2012, predominantly as a result of the Company's acquisition of
the Medrium practice management business in Q3 F2012. YTD F2013
recurring revenue was $5.4 million,
an increase of $0.5 million, or 11%,
from $4.8 million in YTD F2012.
Non-recurring revenue2 for Q2 F2013
was $2.4 million, an increase of
$1.0 million, or 67%, from
$1.4 million for Q2 F2012, primarily
as a result of the Company's major contract win. YTD F2013
non-recurring revenue was $5.3
million, an increase of $2.5
million, or 89%, from $2.8
million for the same period in F2012.
For Q2 F2013, gross margin was 90% ($4.6 million gross profit) compared to 78%
($3.0 million gross profit) for Q2
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. YTD F2013 gross margin was 89% ($9.5 million gross profit) compared to $81%
($6.1 million gross profit) for the
same period in F2012.
Q2 F2013 operating expenses excluding charges
for stock based compensation, depreciation and amortization
increased 25% to $3.6 million (71% of
revenue) compared to operating expenses of $2.9 million (76% of revenue) for Q2 F2012,
reflecting the Company's increased investments in the growth areas
of the business. However, operating expenses excluding charges for
stock based compensation, depreciation and amortization were down
11% sequentially from $4.1 million in
Q1 F2013 due to a decrease in sales and marketing wages and related
program costs. YTD F2013 operating expenses excluding charges for
stock based compensation, depreciation and amortization increased
$1.7 million, or 27%, to $7.7 million compared to operating expense of
$6.0 million for the same period in
F2012.
For Q2 F2013, Adjusted EBITDA was $1.0 million (19% of revenue), compared to
$0.1 million (2% of revenue) in Q2
F2012. YTD F2013 Adjusted EBITDA was $1.9
million (18% of revenue), compared to $0.1 million (2% of revenue) for the same period
in F2012.
For Q2 F2013, net income was a quarterly record
of $0.6 million compared to a net
loss of $0.4 million for Q2 F2012.
YTD net income was $0.9 million
compared to a net loss of $0.8
million for the same period in F2012.
Cash and cash equivalents were $2.6 million at September
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.
At September 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
November 14, 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 and six months ended
September 30, 2012.
Notice of Conference Call
Nightingale will host a conference call on Wednesday, November 14, 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 59125046
prior to the beginning of the call to ensure participation. The
conference call will be archived for replay until Wednesday, November 21, 2012. To access the
archived conference call, dial 416-849-0833 or 1-855-859-2056 and
enter reference 59125046#. 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:
|
|
|
|
|
|
|
|
|
|
|
|
|
Definition |
|
Three
Months
Ended
September 30,
2012 |
|
Three
Months
Ended
September 30,
2011 |
|
Six
Months
Ended
September 30,
2012 |
|
Six
Months
Ended
September 30,
2011 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) and Comprehensive
Income (Loss) |
|
$ |
623,654 |
|
$ |
(353,132) |
|
$ |
873,291 |
|
$ |
(778,302) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments for: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Tax Expense
(Recovery) |
|
$ |
(85,130) |
|
$ |
468 |
|
$ |
(71,650) |
|
$ |
(5,730) |
Other Loss (Income) |
|
|
(92,875) |
|
|
(3,783) |
|
|
(24,704) |
|
|
(12,707) |
Interest |
|
|
83,689 |
|
|
93,202 |
|
|
176,903 |
|
|
208,132 |
Depreciation and Amortization |
|
|
397,018 |
|
|
311,103 |
|
|
771,895 |
|
|
631,540 |
Stock-Based Compensation |
|
|
35,380 |
|
|
23,297 |
|
|
101,803 |
|
|
63,212 |
Acquisition, Integration and
Other |
|
|
- |
|
|
21,631 |
|
|
49,971 |
|
|
21,631 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
$ |
961,736 |
|
$ |
92,786 |
|
$ |
1,877,509 |
|
$ |
127,776 |
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:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Definition |
|
|
Three Months
Ended
September 30,
2012 |
|
|
Three Months
Ended
September 30,
2011 |
|
|
Six Months
Ended
September 30,
2012 |
|
|
Six Months
Ended
September 30,
2011 |
Non-Recurring Revenue |
|
|
$ |
2,403,405 |
|
|
$ |
1,439,372 |
|
|
$ |
5,259,793 |
|
|
$ |
2,781,682 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recurring Revenue |
|
|
|
2,664,878 |
|
|
|
2,367,359 |
|
|
|
5,369,607 |
|
|
|
4,830,249 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
|
$ |
5,068,283 |
|
|
$ |
3,806,731 |
|
|
$ |
10,629,400 |
|
|
$ |
6,136,158 |
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 AND SIX MONTHS ENDED SEPTEMBER
30, 2012 |
Unaudited (Canadian Dollars) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
|
Three Months
Ended |
|
|
Six Months
Ended |
|
|
Six Months
Ended |
|
|
|
September 30,
2012 |
|
|
September 30,
2011 |
|
|
September 30,
2012 |
|
|
September 30,
2011 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
|
$ |
5,068,283 |
|
|
$ |
3,806,731 |
|
|
$ |
10,629,400 |
|
|
$ |
7,611,931 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales |
|
|
|
498,448 |
|
|
|
845,380 |
|
|
|
1,119,119 |
|
|
|
1,475,773 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit |
|
|
|
4,569,835 |
|
|
|
2,961,351 |
|
|
|
9,510,281 |
|
|
|
6,136,158 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and administration |
|
|
|
853,599 |
|
|
|
785,827 |
|
|
|
1,718,101 |
|
|
|
1,512,983 |
Sales and marketing |
|
|
|
787,761 |
|
|
|
706,378 |
|
|
|
1,844,136 |
|
|
|
1,517,246 |
Research and development |
|
|
|
1,363,825 |
|
|
|
683,971 |
|
|
|
2,886,431 |
|
|
|
1,630,968 |
Client services |
|
|
|
1,035,312 |
|
|
|
1,026,789 |
|
|
|
2,057,802 |
|
|
|
2,041,937 |
Business acquisition, integration and
other |
|
|
|
- |
|
|
|
21,631 |
|
|
|
49,971 |
|
|
|
21,631 |
|
|
|
|
4,040,497 |
|
|
|
3,224,596 |
|
|
|
8,556,441 |
|
|
|
6,724,765 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss) |
|
|
|
529,338 |
|
|
|
(263,245) |
|
|
|
953,840 |
|
|
|
(588,607) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest |
|
|
|
83,689 |
|
|
|
93,202 |
|
|
|
176,903 |
|
|
|
208,132 |
Foreign currency gain |
|
|
|
(92,875) |
|
|
|
(3,783) |
|
|
|
(24,704) |
|
|
|
(12,707) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before tax |
|
|
|
538,524 |
|
|
|
(352,664) |
|
|
|
801,641 |
|
|
|
(784,032) |
Current tax expense (recovery) |
|
|
|
(85,130) |
|
|
|
468 |
|
|
|
(71,650) |
|
|
|
(5,730) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income
(loss) |
|
|
$ |
623,654 |
|
|
$ |
(353,132) |
|
|
$ |
873,291 |
|
|
$ |
(778,302) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) and comprehensive
income (loss) per common share - Basic and Diluted |
|
|
$ |
0.01 |
|
|
$ |
(0.00) |
|
|
$ |
0.01 |
|
|
$ |
(0.01) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Common
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
|
76,310,915 |
|
|
|
76,310,915 |
|
|
|
76,310,915 |
|
|
|
76,310,915 |
|
Diluted |
|
|
|
90,085,652 |
|
|
|
76,310,915 |
|
|
|
90,092,882 |
|
|
|
76,310,915 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED BALANCE SHEET |
AS AT SEPTEMBER 30, 2012 |
Unaudited (Canadian Dollars) |
|
|
|
|
|
|
|
|
|
|
September 30, 2012 |
|
|
March 31, 2012 |
|
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
$ |
2,649,916 |
|
|
$ |
3,199,058 |
Accounts receivable |
|
|
|
3,747,993 |
|
|
|
2,267,854 |
Other receivables |
|
|
|
88,906 |
|
|
|
103,513 |
Prepaid expenses |
|
|
|
536,580 |
|
|
|
581,593 |
|
|
|
|
7,023,395 |
|
|
|
6,152,018 |
|
|
|
|
|
|
|
|
|
Long-term assets |
|
|
|
|
|
|
|
|
Property and equipment |
|
|
|
1,014,372 |
|
|
|
450,989 |
Intangible assets |
|
|
|
6,930,906 |
|
|
|
5,808,744 |
Goodwill |
|
|
|
4,792,399 |
|
|
|
4,792,399 |
|
|
|
|
12,737,677 |
|
|
|
11,052,132 |
|
|
|
|
|
|
|
|
|
Total assets |
|
|
$ |
19,761,072 |
|
|
$ |
17,204,150 |
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
Line of credit |
|
|
$ |
560,000 |
|
|
$ |
670,000 |
Accounts payable and accrued liabilities |
|
|
|
3,461,051 |
|
|
|
3,351,187 |
Current portion of deferred revenue |
|
|
|
4,170,901 |
|
|
|
4,689,175 |
Current portion of finance lease obligations |
|
|
|
85,198 |
|
|
|
122,710 |
Current portion of term loan |
|
|
|
860,300 |
|
|
|
872,813 |
Current portion of convertible debenture |
|
|
|
841,000 |
|
|
|
- |
|
|
|
|
9,978,450 |
|
|
|
9,705,885 |
|
|
|
|
|
|
|
|
|
Long term liabilities |
|
|
|
|
|
|
|
|
Term loan |
|
|
|
1,825,808 |
|
|
|
2,287,608 |
Convertible debentures |
|
|
|
3,287,750 |
|
|
|
1,802,256 |
Deferred revenue |
|
|
|
2,434,018 |
|
|
|
2,619,448 |
Finance lease obligations |
|
|
|
51,721 |
|
|
|
37,345 |
Non-current portion of landlord inducement |
|
|
|
144,822 |
|
|
|
- |
Income taxes payable |
|
|
|
677,074 |
|
|
|
686,921 |
|
|
|
|
8,421,193 |
|
|
|
7,433,578 |
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
|
18,399,643 |
|
|
|
17,139,463 |
|
|
|
|
|
|
|
|
|
SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
Capital stock |
|
|
|
29,629,683 |
|
|
|
29,629,683 |
Contributed surplus |
|
|
|
5,527,029 |
|
|
|
4,811,456 |
Equity portion of convertible debentures |
|
|
|
743,138 |
|
|
|
333,808 |
Warrants |
|
|
|
- |
|
|
|
701,452 |
Deficit |
|
|
|
(34,538,421) |
|
|
|
(35,411,712) |
|
|
|
|
1,361,429 |
|
|
|
64,687 |
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders'
equity |
|
|
$ |
19,761,072 |
|
|
$ |
17,204,150 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED STATEMENT OF CASH
FLOWS |
FOR THE THREE AND SIX MONTHS ENDED SEPTEMBER
30, 2012 |
Unaudited (Canadian Dollars) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months |
|
|
Three months |
|
|
Six months |
|
|
Six months |
|
|
|
Ended |
|
|
Ended |
|
|
Ended |
|
|
Ended |
|
|
|
Sept 30, 2012 |
|
|
Sept 30, 2011 |
|
|
Sept 30, 2012 |
|
|
Sept 30, 2011 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow from operating
activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) from operations |
|
|
$ |
623,654 |
|
|
$ |
(353,132) |
|
|
$ |
873,291 |
|
|
$ |
(778,302) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments for: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
|
397,019 |
|
|
|
311,104 |
|
|
|
771,895 |
|
|
|
631,542 |
Charge to bad debt expense |
|
|
|
5,315 |
|
|
|
|
|
|
|
20,641 |
|
|
|
|
Amortization of transaction costs
related to debt financing |
|
|
|
17,766 |
|
|
|
13,766 |
|
|
|
29,361 |
|
|
|
26,897 |
Tax recovery on warrant
expiry |
|
|
|
(87,682) |
|
|
|
- |
|
|
|
(87,682) |
|
|
|
- |
Stock based compensation |
|
|
|
35,380 |
|
|
|
23,297 |
|
|
|
101,803 |
|
|
|
63,212 |
Unrealized foreign exchange (gain)
loss |
|
|
|
(146,146) |
|
|
|
174,094 |
|
|
|
(79,175) |
|
|
|
149,332 |
Interest accretion |
|
|
|
20,323 |
|
|
|
23,121 |
|
|
|
43,444 |
|
|
|
46,242 |
|
|
|
|
865,629 |
|
|
|
192,250 |
|
|
|
1,673,578 |
|
|
|
138,923 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes in non-cash working
capital balances |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
|
203,804 |
|
|
|
(136,626) |
|
|
|
(1,510,836) |
|
|
|
284,449 |
Prepaid expenses |
|
|
|
139,134 |
|
|
|
(34,423) |
|
|
|
45,013 |
|
|
|
(258,098) |
Inventory |
|
|
|
- |
|
|
|
13,450 |
|
|
|
- |
|
|
|
15,683 |
Other receivables |
|
|
|
(447) |
|
|
|
41,157 |
|
|
|
13,179 |
|
|
|
56,774 |
Accounts payable and accrued
liabilities |
|
|
|
(93,764) |
|
|
|
335,454 |
|
|
|
161,465 |
|
|
|
(27,257) |
Income taxes payable |
|
|
|
(24,033) |
|
|
|
57,639 |
|
|
|
(9,847) |
|
|
|
54,127 |
Deferred revenue |
|
|
|
(873,934) |
|
|
|
19,364 |
|
|
|
(703,704) |
|
|
|
97,517 |
Cash flows provided by (used in)
operating activities |
|
|
|
216,389 |
|
|
|
488,265 |
|
|
|
(331,152) |
|
|
|
362,118 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow from investing
activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of property and
equipment |
|
|
|
(355,620) |
|
|
|
(6,324) |
|
|
|
(695,023) |
|
|
|
(27,168) |
Capitalized development costs |
|
|
|
(967,452) |
|
|
|
(803,296) |
|
|
|
(1,732,850) |
|
|
|
(995,065) |
Cash flows used in investing
activities |
|
|
|
(1,323,072) |
|
|
|
(809,620) |
|
|
|
(2,427,873) |
|
|
|
(1,022,233) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow from financing
activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from line of credit
borrowing |
|
|
|
504,000 |
|
|
|
675,000 |
|
|
|
504,000 |
|
|
|
1,635,000 |
Repayment of line of credit
borrowing |
|
|
|
(614,000) |
|
|
|
(960,000) |
|
|
|
(614,000) |
|
|
|
(1,910,000) |
Proceeds from convertible debt
financing, net of costs |
|
|
|
2,689,967 |
|
|
|
- |
|
|
|
2,689,967 |
|
|
|
- |
Proceeds from landlord
inducement |
|
|
|
- |
|
|
|
- |
|
|
|
120,000 |
|
|
|
- |
Repayment of term loan |
|
|
|
(223,788) |
|
|
|
(200,000) |
|
|
|
(442,537) |
|
|
|
(400,000) |
Repayment of finance lease
obligations |
|
|
|
(25,473) |
|
|
|
(77,899) |
|
|
|
(52,703) |
|
|
|
(163,692) |
Cash flows provided by (used in)
financing activities |
|
|
|
2,330,706 |
|
|
|
(562,899) |
|
|
|
2,204,727 |
|
|
|
(838,692) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign exchange gains on cash in
foreign currency |
|
|
|
3,763 |
|
|
|
27,204 |
|
|
|
5,156 |
|
|
|
24,555 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in
cash |
|
|
|
1,227,786 |
|
|
|
(857,050) |
|
|
|
(549,142) |
|
|
|
(1,474,252) |
Cash and cash equivalents,
beginning of period |
|
|
|
1,422,130 |
|
|
|
3,548,204 |
|
|
|
3,199,058 |
|
|
|
4,165,406 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, end
of period |
|
|
$ |
2,649,916 |
|
|
$ |
2,691,154 |
|
|
$ |
2,649,916 |
|
|
$ |
2,691,154 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OVERALL PERFORMANCE, RESULTS OF OPERATIONS AND
FINANCIAL CONDITION |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2
Ended |
|
Q3
Ended |
|
Q4
Ended |
|
Fiscal
Year
Ended |
|
Q1
Ended |
|
Q2
Ended |
|
Q3
Ended |
|
Q4
Ended |
|
Fiscal
Year
Ended |
|
Q1
Ended |
|
Q2
Ended |
In $ 000's
(Except per Share
Amounts) |
|
Sept
30,
2010 |
|
Dec
31,
2010 |
|
March
31,
2011 |
|
March
31,
2011 |
|
June
30,
2011 |
|
Sept
30,
2011 |
|
Dec
31,
2011 |
|
March
31,
2012 |
|
March
31,
2012 |
|
June
30,
2012 |
|
Sept
30,
2012 |
Recurring Revenue |
|
$2,723 |
|
$2,661 |
|
$2,452 |
|
$10,679 |
|
$2,463 |
|
$2,367 |
|
$2,473 |
|
$2,889 |
|
$10,192 |
|
$ 2,705 |
|
$ 2,665 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Recurring Revenue |
|
1,491 |
|
1,744 |
|
1,901 |
|
6,695 |
|
1,342 |
|
1,439 |
|
2,620 |
|
2,486 |
|
7,888 |
|
2,856 |
|
2,403 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
4,214 |
|
4,405 |
|
4,353 |
|
17,374 |
|
3,805 |
|
3,807 |
|
5,093 |
|
5,376 |
|
18,080 |
|
5,561 |
|
5,068 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Software business revenue |
|
3,576 |
|
3,697 |
|
3,879 |
|
14,780 |
|
3,382 |
|
3,382 |
|
4,679 |
|
5,017 |
|
16,422 |
|
5,480 |
|
4,993 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit |
|
3,336 |
|
3,502 |
|
3,675 |
|
14,047 |
|
3,175 |
|
2,961 |
|
4,384 |
|
4,509 |
|
15,030 |
|
4,940 |
|
4,570 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses |
|
3,553 |
|
3,686 |
|
3,870 |
|
14,466 |
|
3,500 |
|
3,225 |
|
4,369 |
|
4,804 |
|
15,897 |
|
4,516 |
|
4,040 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA (non-IFRS measure) |
|
395 |
|
340 |
|
384 |
|
1,736 |
|
35 |
|
93 |
|
917 |
|
231 |
|
1,330 |
|
916 |
|
962 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income (Loss) for the Period |
|
(216) |
|
(184) |
|
(195) |
|
(419) |
|
(325) |
|
(263) |
|
16 |
|
(295) |
|
(868) |
|
425 |
|
529 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) and Comprehensive Income
(Loss) |
|
(413) |
|
(309) |
|
(266) |
|
(989) |
|
(425) |
|
(353) |
|
(155) |
|
(285) |
|
(1,218) |
|
250 |
|
624 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) and Comprehensive Income (Loss)
per Common Share - Basic and Diluted |
|
$(0.01) |
|
$(0.00) |
|
$(0.00) |
|
$(0.01) |
|
$(0.00) |
|
$(0.00) |
|
$(0.00) |
|
$(0.01) |
|
$(0.02) |
|
$0.00 |
|
$0.01 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Avg. # of Common Shares -
Basic |
|
76,311 |
|
76,311 |
|
76,311 |
|
75,979 |
|
76,311 |
|
76,311 |
|
76,311 |
|
76,311 |
|
76,311 |
|
76,311 |
|
76,311 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Avg. # of Common Shares -
Diluted |
|
76,311 |
|
76,311 |
|
76,311 |
|
75,979 |
|
76,311 |
|
76,311 |
|
76,311 |
|
76,311 |
|
76,311 |
|
82,360 |
|
90,086 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets |
|
$15,669 |
|
$15,080 |
|
$16,216 |
|
$16,216 |
|
$15,334 |
|
$15,042 |
|
$17,794 |
|
$17,204 |
|
$17,204 |
|
$17,962 |
|
$19,761 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Long-Term
Liabilities |
|
$5,185 |
|
$5,337 |
|
$6,115 |
|
$6,115 |
|
$5,819 |
|
$5,972 |
|
$8,102 |
|
$7,434 |
|
$7,434 |
|
$7,244 |
|
$8,421 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Deferred Revenue |
|
$6,010 |
|
$6,788 |
|
$7,510 |
|
$7,510 |
|
$7,588 |
|
$7,607 |
|
$7,797 |
|
$7,309 |
|
$7,309 |
|
$7,479 |
|
$6,605 |
SOURCE Nightingale Informatix Corporation