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Vigil Health Solutions Reports Profitable Quarter

Monday, November 19, 2012 12:22 PM


VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 11/19/12 -- Vigil Health Solutions Inc. (TSX VENTURE:VGL) ("Vigil") announces the results of operations for the quarter ending September 30, 2012.

Business Highlights

--  Net Income of $32 thousand compared to a loss of $251 thousand in the
    three month period ended September 30, 2011. 
--  Grew bookings 18% to $1.27 million compared to $1.08 million in the
    three-month period ended September 30, 2011. 
--  Increased backlog to approximately $2.72 million (37 projects) compared
    to approximately $2.03 million (33 projects) in the three-month period
    ended September 30, 2011. 
--  Revenue up 24% to $826 thousand from $669 thousand in the three-months
    ended September 30, 2011. 
--  Reduced expenses by 34% to $363 from $547 thousand in the three-months
    ended September 30, 2011.

"This is the fifth consecutive quarter that we have seen increased sales bookings year over year, a positive indicator moving forward. We are also pleased that the measures taken to reduce costs while senior housing construction recovers have resulted in a profitable quarter," stated Troy Griffiths, President and CEO of Vigil Health Solutions Inc.

Financial Results

Revenue for the three-months ended September 30, 2012 was $826 thousand compared to $669 thousand in the three-month period ended September 30, 2011, an increase of 24%. Project revenue made up 57% of total revenue; the remaining revenue came from follow on sales to existing customers. These sales include service and maintenance billings and replacement products including wireless devices and communication equipment.

Bookings for the quarter were $1.27 million up 18% compared to $1.08 million in the three-month period ended September 30, 2011. Management believes this is an indication of an improvement in the Senior Living industry.

At September 30, 2012 Vigil had a backlog of approximately $2.72 million (including $836 thousand in deposits and progress billings, recorded as deferred revenue on the balance sheet) a 34% increase compared to approximately $2.03 million (including $553 thousand in deposits and progress billings, recorded as deferred revenue on the balance sheet) at September 30, 2011. At September 30, 2012, Vigil's backlog included 37 projects at varying stages of installation and progress billing. The average project size was $74 thousand compared to 33 projects with an average value of $67 thousand in the three months ended September 30, 2011. Projects can include individual buildings or floors of multiple phase campus construction.

The gross margin percentage for the three months ended September 30, 2012 was 49% compared to 46% for the three months ended September 30, 2011. Gross margin was slightly higher than management's usual expectations of margins of between 42% and 47%.

Expenditures for the three months ended September 30, 2012 were $363 thousand, down 34% from $547 thousand for the period ended September 30, 2011. The decrease is primarily due to lower costs reflecting lower staffing levels.

Net income for the three month period ended September 30, 2012 was $32 thousand, or $0.002 per share compared to a loss of $251 thousand, or $0.019 per share for the previous year. The profitable quarter relates largely to a decrease in staffing levels and related expenses. The Company expects to see staffing levels increase with bookings levels.

Detailed financial statements along with Management Discussion and Analysis have been filed with SEDAR (www.sedar.com).

Financial information will be mailed to entitled security holders on November 23, 2012. Or, upon notice to the Company, entitled security holders may request a copy of financials in advance.

Summary Financial Information

                                               September 30,  September 30,
                                                        2012           2011
                                                 (unaudited)    (unaudited)
Revenue                                             $826,434       $669,149
Cost of sales                                        423,838        360,146
                                                     402,596        309,003
Expenses                                             363,070        547,034
Income (loss) before the following items              39,526      (238,034)
Other income (expense):                              (7,362)       (13,123)
Income / (loss) for the period                       $32,164     $(251,157)

Non-IFRS Measure

For the three months ended September 30, 2012, we are disclosing Adjusted EBITDA, a non-IFRS financial measure, as a supplementary indicator of operating performance. We define Adjusted EBITDA as net income before, interest, income taxes, amortization, stock based compensation and currency gains or losses including derivative foreign exchange differences. We are presenting the non-IFRS financial measure in our filings because we use it internally to make strategic decisions, forecast future results and to evaluate our performance and because we believe that our current and potential investors and analysts use the measure to assess current and future operating results and to make investment decisions. It is a non-IFRS measure, may not be comparable to other companies and it is not intended as a substitute for IFRS measures.

Adjusted EBITDA Reconciliation

                                                   Three months ended      
                                               September 30,  September 30,
                                                        2012           2011
Income / (loss) for the period                       $32,164     $(251,157)
Add / (deduct)                                                             
  Foreign exchange                                    11,062       (18,100)
  Derivative exchange                                (7,858)         29,050
  Interest                                             4,158          2,173
  Stock based compensation                            12,643          1,994
  Amortization                                         3,812          6,164
                                                      23,817         21,281
Adjusted EBITDA                                      $55,981     $(229,876)

About Vigil Health Solutions Inc.

Vigil offers a proprietary technology platform combining software and hardware to provide comprehensive solutions to the expanding seniors' housing market. Vigil has established a growing presence in North America and an international reputation for being on the leading edge of systems design and integration. Vigil's objective is to offer solutions for the full continuum of care. Vigil's product range includes the innovative wireless Vitality Care System(TM) featuring discreet 'mini pendants', a nurse call system, mobile fall, incontinence monitoring, resident check and the award-winning Vigil Dementia System.

Certain statements contained in this news release that are not based on historical facts may constitute forward-looking statements or forward-looking information within the meaning of applicable securities laws ("forward-looking statements"). These forward-looking statements are not promises or guarantees of future performance but are only predictions that relate to future events, conditions or circumstances or our future results, performance, achievements or developments and are subject to substantial known and unknown risks, assumptions, uncertainties and other factors that could cause our actual results, performance, achievements or developments in our business or in our industry to differ materially from those expressed, anticipated or implied by such forward-looking statements.

Forward-looking statements include all financial guidance, disclosure regarding possible events, conditions, circumstances or results of operations that are based on assumptions about future economic conditions, courses of action and other future events. We caution you not to place undue reliance upon any such forward-looking statements, which speak only as of the date they are made. These forward-looking statements appear in a number of different places in this presentation and can be identified by words such as "may", "estimates", "projects", "expects", "intends", "believes", "plans", "anticipates", or their negatives or other comparable words. Forward-looking statements include statements regarding the outlook for our future operations, plans and timing for the introduction or enhancement of our services and products, statements concerning strategies or developments, statements about future market conditions, supply conditions, end customer demand conditions, channel inventory and sell through, revenue, gross margin, operating expenses, profits, forecasts of future costs and expenditures, the outcome of legal proceedings, and other expectations, intentions and plans that are not historical fact.

The risk factors and uncertainties that may affect our actual results, performance, achievements or developments are many and include, amongst others, our ability to develop our sales force and generate revenue, the length of the sales cycle, management of the Company's growth, ability to recruit and retain staff, fluctuations in demand for current and future products, our ability to develop, manufacture, supply and market existing and new products that meet the needs of customers, volatility in the exchange rate, ability to secure financing, ability to secure product liability insurance, the continuous commitment of our customers, increased competition, changes in regulation and reliance on third party suppliers. These risk factors and others are discussed in the Risks and Uncertainties section of our "Management Discussion and Analysis" segment of our fiscal 2012 Annual Report. Many of these factors and uncertainties are beyond the control of the Company. Consequently, all forward-looking statements in this news release are qualified by this cautionary statement and there can be no assurance that actual results, performance, achievements or developments anticipated by the Company will be realized.

Forward-looking statements are based on management's current plans, estimates, projections, beliefs and opinions and, except as required by law, the Company does not undertake any obligation to update forward-looking statements should the assumptions related to these plans, estimates, projections, beliefs and opinions change.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Vigil Health Solutions Inc.
Troy Griffiths
President and CEO
(250) 383-6900
(250) 383-6999 (FAX)

(Source: Market Wire )
(Source: Quotemedia)


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