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VitalHub Reaches Profitability in Q1 While Recognizing $2.9 Million in Revenue
TORONTO, May 29, 2018 (GLOBE NEWSWIRE) -- VitalHub Corp. (the “Company” or “VitalHub”) (TSXV:VHI) announced today it has filed its Consolidated Financial Statements and Management's Discussion and Analysis report for the quarter ended March 31, 2018 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 results of Q1 2018, VitalHub CEO Dan Matlow said, “We are starting to realize the impact of our strategy as we combine our acquisitions for the first time. As a company with an M&A-based strategy, we are focused on the adjusted EBITDA number which is solid. Although we experienced some one-time revenue gains through the sale of perpetual licenses, our overall deferred revenue for active contracted projects and our overall sales pipeline remains strong. We will continue to work on integrating the companies, optimizing our cost-structure, improving efficiencies, and increasing our sales presence for our new projects such as the WellLinc Blockchain and mobile solution."
Highlights for the quarter ended March 31, 2018 include:
- The acquisition of H.I. Next Inc. (“HI Next”) was completed on January 10, 2018. HI Next owns “TREAT”, a web‐based electronic health record and care coordination platform built for health care providers. HI Next has historical unaudited revenues of $2.695 million, $3.329 million and $3.572 million for the previous three fiscal years (2015, 2016 and 2017).
- On January 19, 2018, the Company completed the acquisition of Clarity through the purchase of select assets of Clarity Healthcare Solutions (“Clarity”). Clarity develops and deploys a web-based interface and data entry solution to perform in-patient assessments for long-term care providers. Clarity had approximately $200,000 in revenue in its last fiscal year.
- Revenue for the three months ended March 31, 2018 was $2,923,390, representing an increase of 2172.3% over revenues of $128,653 in the same period last year.
- The Company reached profitability for the three months ended March 31, 2018 with net income of $6,350 as compared to a net loss of $365,213 in the previous period. Adjusted EBITDA for the three months ended March 31, 2018 was $750,875 compared to adjusted EBITDA of ($284,007) in the previous period.
- During the period, the Company sold a license to a customer which granted such customer a nonexclusive, transferable, perpetual, irrevocable, worldwide and royalty free license of the HI Next software. During the period, the Company recognized $1,613,362 of perpetual license fees and $58,015 of services revenue, with the remaining balance of $1,719,499 in deferred revenue.
- On January 30, 2018, the Company announced it had joined Hyperledger and an elite group of healthcare companies including Aetna, Change Healthcare, Eli Lilly & Company, and PwC, which are early adopters of Hyperledger technologies, and are building production deployments of Blockchain solutions across the healthcare sector. With a dedicated Blockchain development team, the Company is committed to helping the healthcare industry use blockchain solutions, which hold the promise of unifying disparate processes, increasing data flow and liquidity, reducing costs and improving patient experience and outcomes.
- On February 7, 2018, the Company announced the introduction of WellLinc, a proprietary electronic health record interoperability solution powered by blockchain technology. WellLinc leverages blockchain technology to address multiple challenges associated with the exchange of health information across the continuum of care. The Company has chosen the mental health space as an initial area of focus, both due to the size of the market opportunity and the serious gaps that exist in mental health care delivery resulting from inadequate access to available patient health information.
- For the quarter ended March 31, 2018, the Company added 16 new customers in New York State, through the Behavioral Health Information Technology Grant Program (“BH-IT”) funding program for adult behavioural health home and community-based service (“BH-HCBS”) providers. The Company will have an opportunity to expand its number of New York State customers, as they experience continued success with implementations across the BH-IT program.
- Manitoba’s Northern Regional Hospital has licensed the Company’s B Care Electronic Health Record software (“EHR") to support their child and adult inpatient and community mental health programs. This sale is the first implementation of an EHR and the interRAI Child and Youth Mental Health (ChYMH) and Adolescent Supplement to support the province’s Healthy Child Manitoba program. This implementation will serve as a demonstration site that will be evaluated for applications across the rest of the province.
- The Company signed several additional contracts in the quarter including: Bluewater Health, ON, Canada; HKS Counselling Services, ON, Canada; United Chiefs and Councils of Mnidoo Mnising, ON, Canada; Alzheimer’s Society of Toronto, ON, Canada; and Stella’s Place, ON, Canada.
Subsequent to the quarter, VitalHub and EY Canada’s Health practice formally agreed to work together on a co-marketing initiative to bring WellLinc to market on a global basis. VitalHub’s WellLinc solution uses blockchain technology to enable the secure and interoperable exchange of electronic health data, across the continuum of care. The relationship with EY Canada Health practice will afford VitalHub with reach and access into a significant global distribution network across the target customer demographic.
VitalHub uses web, mobile, and Blockchain technology to create disruptive SaaS-based healthcare applications that solve industry-wide problems. VitalHub's aim is to create high-value, secured solutions that enable broad interoperability among existing health data systems. Vitalhub is primarily focused on working with organizations in the Mental Health and Long-Term Care space, to further extend organization's applications across the continuum of care, powered by the security, efficiency, and trust of Blockchain technology.
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 200+ clients across North America. 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".
The TSX Venture Exchange has in no way passed upon the merits of the transactions and has neither approved nor disapproved the contents of this press release. 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 press release.
Chief Executive Officer, Director