KELOWNA, BC, Nov. 9, 2012 /CNW/ - (TSX-V: QHR) QHR Technologies Inc. ("QHR" or the "Company") a leader in the Canadian
Healthcare Information Technology sector, is pleased to announce the
release of its unaudited condensed interim consolidated financial
statements for the three months ended September 30, 2012.
The Company continued to post quarterly revenue increases for its
Electronic Medical Records ("EMR") division by recording a record
$4,359,465 for the quarter. The Enterprise Management Software ("EMS")
division recorded revenue in the quarter of $2,650,408. On a
consolidated basis the Company recorded third quarter revenue of
$7,009,873 an increase of $1,513,076 or 28% over the $5,496,797
recorded for the same period in 2011.
HIGHLIGHTS:
-
The Company on a consolidated basis recorded third quarter revenue of
$7,009,873 an increase of $1,513,076 or 28% over the $5,496,797
recorded for the same period in 2011.
-
The EMR division recorded another quarterly revenue record of
$4,359,465.
-
Recurring revenue is now at a record $18.3 million on an annualized
base.
-
Backlog of contracted EMR conversion services to Accuro as at September
30th 2012 continues to be more than $1.2 million. The majority of which is
expected to be realized and completed by the end of Q4 2012.
-
EBITDA(1) for the third quarter was $442,338 compared to $353,765 in Q2 2012, an
increase of 25%
-
Net Earnings for the third quarter were a loss of $116,212 compared to
earnings of $149,324 in 2011.
-
As at September 30, 2012, the Company is one of 12 EMR vendors to pass
the OntarioMD Specification 4.1 certification to be funding eligible in
Ontario.
-
The EMR division has over 9,000 physicians as clients across Canada,
making QHR the largest EMR physician based vendor in Canada.
"We continue to focus our efforts on not only revenue growth, but more
importantly on increasing our margins. To that end we have completed
the expense growth that was required to capitalize on our acquisition
of Healthscreen and our growth into the Ontario market and are pursuing
margin growth by way of efficiency improvements. Our ability to
capitalize on scalability must go hand in hand with ongoing revenue
growth", said Al Hildebrandt, QHR Technologies President & CEO.
The following table summarizes QHR Technologies results in the
categories specified below over the past seven quarters (unaudited;
dollar amounts in millions):
|
|
Q3 2012
|
Q2 2012
|
Q1 2012
|
Q4 2011
|
Q3 2011
|
Q2 2011
|
Q1 2011
|
|
Revenues
|
7.01
|
6.94
|
7.39
|
6.40
|
5.50
|
5.23
|
6.48
|
|
EMR Revenues
|
4.36
|
4.20
|
3.85
|
3.84
|
2.70
|
2.60
|
2.48
|
|
EMS Revenues
|
2.65
|
2.74
|
3.54
|
2.81
|
2.80
|
2.63
|
4.00
|
|
EBITDA(1) |
0.44
|
0.35
|
1.04
|
0.56
|
0.68
|
0.61
|
1.43
|
Revenues
The Company recorded $7,009,873 in revenue for the three months ending
September 30, 2012 compared to $5,496,797 for the three months ending
September 30, 2011 an increase of 28%.
Revenue continued its increase during the third quarter for the EMR
division compared to the second quarter of 2012. Total revenue for the
third quarter was $7,009,873 compared to $5,496,797 for the same period
last year an increase of 28%. This increase is attributable to
continued organic growth in one time and recurring revenue in addition
to added revenue as a result of the October 11, 2011 acquisition of
Healthscreen.
Operating Expenses
Operating expenses including cost of goods for the three months ended
September 30, 2012 were $6,567,535 compared to $4,819,521 for the same
period in 2011, an increase of $1,748,014. The increase in operating
expenses is attributable to the increased costs relating to the
Healthscreen acquisition, our Ontario growth initiatives, the addition
of Toronto office space expenses, data center expansion and acquisition
expenses.
Other Expenses
Other expenses including stock-based compensation, amortization,
interest and foreign exchange were $729,218 for the three months ending
September 30, 2012 compared to $422,799 for the same period in 2011.
The largest component of increase is amortization due to the increase
in intangible assets from acquisitions.
Earnings
EBITDA(1) for the three months ended September 30, 2012 was $442,338 compared to
$677,276 for the same period in 2011. The net earnings for the period
ended September 30, 2012 was a loss of $116,212 compared to net
earnings of $149,324 in 2011. This decrease in EBITDA and earnings in
the quarter is largely attributable to the increase in operating
expenses as highlighted above.
Cash Position
The Company increased its cash position by ending the third quarter with
cash on hand of $1,017,353 compared to $422,006 at June 30, 2012 and
$687,054 at September 30, 2011.
Net earnings (loss) and comprehensive income for the three months ended
September 30, 2012 is as follows:
|
|
|
|
|
|
|
|
|
Three months ended
|
|
September 30, 2012
|
|
September 30, 2011
|
Change
|
Percent
|
|
|
|
|
|
|
|
|
|
REVENUE
|
$
|
7,009,873
|
$
|
5,496,797
|
1,513,076
|
28%
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES
|
|
|
|
|
|
|
|
Cost of goods sold
|
|
661,021
|
|
431,051
|
229,970
|
53%
|
|
Service costs
|
|
4,408,275
|
|
2,536,935
|
1,871,340
|
74%
|
|
Selling and administrative expenses
|
|
1,498,239
|
|
1,851,535
|
(353,296)
|
19%
|
|
|
|
6,567,535
|
|
4,819,521
|
1,748,014
|
36%
|
|
|
|
|
|
|
|
|
|
EBITDA(1) |
|
442,338
|
|
677,276
|
(234,938)
|
35%
|
|
|
|
|
|
|
|
|
|
Stock-based compensation
|
|
56,209
|
|
7,809
|
48,400
|
>100%
|
|
Amortization of property and equipment
|
|
164,189
|
|
146,651
|
17,538
|
12%
|
|
Amortization of intangible assets
|
|
469,113
|
|
354,266
|
114,847
|
32%
|
|
Interest expense
|
|
47,703
|
|
19,926
|
27,777
|
>100%
|
|
Gain on investments
|
|
-
|
|
(107,408)
|
107,408
|
100%
|
|
Gain on assets
|
|
(9,345)
|
|
-
|
(9,345)
|
100%
|
|
Loss on foreign exchange
|
|
1,349
|
|
1,555
|
(206)
|
13%
|
|
|
|
729,218
|
|
422,799
|
306,419
|
72%
|
|
|
|
|
|
|
|
|
|
Earnings (loss) before income taxes
|
|
(286,880)
|
|
254,477
|
541,357
|
>100%
|
|
|
|
|
|
|
|
|
|
Income taxes
|
|
|
|
|
|
|
|
Current (recovery)
|
|
-
|
|
84,153
|
(84,153)
|
>100%
|
|
Deferred (recovery)
|
|
(170,668)
|
|
21,000
|
(191,668)
|
>100%
|
|
|
|
(170,668)
|
|
105,153
|
(275,821)
|
>100%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) and comprehensive income
|
$
|
(116,212)
|
$
|
149,324
|
(265,536)
|
>100%
|
(1) EBITDA (earnings before interest, depreciation, taxes, amortization,
stock-based compensation and foreign exchange) is a non-IFRS measure.
Management believes that, in addition to net earnings, EBITDA is a
useful complementary measure of pre-tax profitability and is commonly
used by the financial and investment community for valuation purposes.
However, EBITDA does not have a standardized meaning prescribed by
IFRS. Investors are cautioned that EBITDA should not be construed as an
alternative to net earnings determined in accordance with IFRS as an
indicator of performance or to cash flows from operating, investing and
financing activities as a measure of liquidity and cash flows. QHR's
method of calculating EBITDA may differ from the methods used by other
entities and, accordingly, our EBITDA may not be comparable to
similarly titled measures used by other entities.
|
Open EC Technologies Inc. Acquisition
On October 25th, 2012 the Company announced that it had completed the
previously announced Plan of Arrangement (the "Arrangement") between
QHR and Open EC Technologies Inc. ("Open EC"). The Company issued
4,480,355 common shares and $880,434 cash to the former shareholders
and option/warrant holders as consideration for all issued and
outstanding securities of Open EC.
The final purchase price allocation will be completed after the assets
valuations are finalized and will include management's consultation
with an independent valuation specialist. The final valuation will be
based on the actual net tangible and intangible assets of Open EC that
existed on October 25, 2012. The Company has not completed its final
allocation of excess purchase price to identifiable intangible assets
and goodwill.
For a more complete business and financial profile of the Company,
management encourages interested parties to visit the Company's
website: www.QHRtechnologies.com.
On behalf of the Board of Directors,
Al Hildebrandt, President and CEO
Conference Call Details:
The Company executives will host a conference call at 11:00 AM EST (8:00
AM PST) Friday, November 9, 2012 to discuss the Company's 2012 third
quarter financial results. To join the conference call, please dial
Toll Free 888-231-8191, 647-427-7450 (Toronto), 778-371-9827
(Vancouver). Conference ID: 59552476
ABOUT QHR TECHNOLOGIES INC.
QHR operates two business units in distinct markets:
The Electronic Medical Records ("EMR") division offers a suite of
medical software modules that provides computer-based medical records
for over 9,000 family physicians, medical specialists, and surgeons, as
well as administrative modules for billing and patient scheduling, that
is a key component of the move throughout Canada to provide electronic
healthcare records for all Canadians. The company also hosts many of
these clients in its hosting facilities across Canada.
The Enterprise Management Software ("EMS") division specializes in
workforce management software, which consists of integrated payroll,
staff scheduling and human resource software, and in customized
financial management software built on the Microsoft Dynamics GP
platform. These products are targeted at complex healthcare, social
services and public safety markets.
Legal Notice Regarding Forward Looking Statements
This news release may contain "forward looking statements" within the
meaning of applicable Canadian securities legislation. These statements
are subject to risks that may cause the actual results to be materially
different in future periods from those expressed or implied by such
forward looking statement. Risks that may prevent or delay the forward looking statements from
coming to fruition include that we may not offer products that are
acceptable to industry regulators or customers; competitors may offer
better or cheaper products; we may not be able to raise sufficient
capital to improve products to remain competitive; changing regulatory
requirements may prevent our products from being sold as expected; we
may not be able to attract or retain key personnel; our technology may
become obsolete; orders could be cancelled or delayed and market
factors may increase our costs more than expected. QHR is a technology
business development enterprise where investment and product
enhancements must be carefully managed to achieve long-term revenue
growth and profitability. It is our policy not to update forward
looking statements except to the extent required under applicable
securities laws. Further information on the Company is available at www.sedar.com or at the Company's website, www.QHRtechnologies.com.
Neither 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.
SOURCE: QHR Technologies Inc.