Medworxx Solutions Inc. (the "Company")(TSX VENTURE:MWX) announced today
that it has filed with the Canadian securities authorities its Interim
Consolidated Financial Statements (Unaudited), and Management’s
Discussion and Analysis report for the three and nine month interim
periods ended September 30, 2012. These documents may be viewed under
the Company's profile at www.sedar.com.
Highlights of the results include:
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Revenue for the nine months ended September 30, 2012 was $4,754,676,
representing an increase of 33.9% over revenues of $3,550,306 in the
same period last year. The increase is attributable primarily to
growth in the Patient Flow Platform of 37.9% and the Compliance and
Education Platform of 47.1%. Revenue for the quarter ended September
30, 2012 was $2,084,962, representing an increase of 85.2% over
revenue of $1,125,679, in the same quarter last year.
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The Company was profitable with net income of $323,004 for the three
months ended September 30, 2012 as compared to a net loss of
($122,158) for the three months ended September 30, 2011. Net income
for the nine months ended September 30, 2012 was $195,238 as compared
to net income of $5,155 for the nine months ended September 30, 2011.
The income this quarter is higher than anticipated due primarily to
the USD $800,000 transaction referred to below, while our expense
levels are well within the Company’s budgeted results and reinforces
the Company’s focus on growing revenue and investing in building sales
and partner channels for the Medworxx Patient Flow platform.
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EBITDA (a non-IFRS measure), defined as Earnings before Interest,
Depreciation, and Amortization, for the three months ended September
30, 2012 was $512,695 as compared to EBITDA of ($52,383) for the three
months ended September 30, 2011, representing an increase of $565,078.
For the nine months ended September 30, 2012, EBITDA was $519,803 as
compared to EBITDA of $255,938 for the nine months ended September 30,
2011, representing an increase of $263,865.
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Adjusted EBITDA (a non-IFRS measure), defined as Earnings before
Interest, Depreciation, Amortization, and Stock Option Expense, for
the three months ended September 30, 2012 was $579,898 as compared to
($32,697) for the three months ended September 30, 2011, representing
an increase of $612,595. For the nine months ended September 30, 2012
was $645,980 as compared to $298,778 for the nine months ended
September 30, 2011, representing an increase of $612,595.
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Operating expenses before loss/gain on foreign exchange and interest
on long-term debt for the three months ended September 30, 2012 were
$1,396,745, an increase of 31.9% over expenses of $1,058,791 for the
three months ended September 30, 2011. This increase is in line with
Management’s planned investment into the expansion of marketing and
distribution channels for international distribution.
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In the quarter, Medworxx sold a worldwide, non-exclusive,
non-transferrable license of the Policy and Document Management
Software to a major US software company to use, copy, adapt and modify
for USD $800,000. In addition to the license fees received, Medworxx
can earn a royalty of 13% of the Customers Net Revenue from sales of
any products which are based on or incorporate any element of the
Software, for a period of three years.
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As of September 30, 2012, Medworxx Patient Flow solutions serve more
than 33% of Canadian acute-care hospital beds (Medworxx sells licenses
on a per bed basis), including implementations at the Provincial
(LHIN), regional and local levels. Revenue on the Patient Flow
platform for the three months ended September 30, 2012 was $885,115
representing an increase of 38% over revenues of $642,042 for the
three months ended September 30, 2011. The number of beds under
license in the Medworxx Patient Flow platform has grown by 3.1% in the
quarter from 25,790 beds under license at June 30, 2012 to 26,584 beds
under license at September 30, 2012. In October, it was announced that
Royal Liverpool and Broadgreen University Hospitals NHS Trust won the
national EHI
Awards’ category of ‘Outstanding
work in IT- enabled change in healthcare‘ for the project titled,
‘First UK IT-enabled case management system’. This is an award that
RLBUHT has received by the UK’s EHealth Insider (EHI) for implementing
Medworxx Utilization Management to enable and sustain greater patient
flow within its busy hospitals.
“It is encouraging to note that we have been able to substantially
increase revenue and profit while investing in growth through our new
channel distribution strategy,” says Dan Matlow, President and CEO,
Medworxx. “Our expectations were to be generating slight losses during
this period, but instead we have increased revenue and profitability
while starting to build out our distribution channels.”
Medworxx Patient Flow, including Medworxx Utilization Management and
Medworxx Bed Board, provides hospitals with tools to bridge clinical and
operational perspectives on daily patient flow – optimal for healthcare
systems addressing issues of overcapacity, wait times and care
coordination. Spurred onwards by uptake of the patient flow solution in
21,000 acute care beds in Canada and United Kingdom’s National Health
System (NHS), and a recent launch into the United States, Medworxx is
expanding to leverage growth that includes agreements with four of
Canada’s 10 Provinces and also includes 1,000 beds in the UK NHS Trust.
Also, Medworxx announced that its board of directors has agreed to
increase the exercise price of 456,400 options that were granted to
directors and officers pursuant to the company’s incentive stock option
plan on October 4, 2012. The exercise price of such options has been
increased from $0.27 per share to $0.35 per share effective October 4,
2012. The terms of such options otherwise remain unchanged.
About Medworxx
Medworxx delivers health information technology solutions to over 350
hospitals internationally; including Canada, United States and United
Kingdom. Medworxx helps hospitals meet patient flow challenges, and
requirements in compliance and education. Medworxx Utilization
Management system—flagship of Medworxx Patient Flow that includes
electronic bed board and independent assessment components—currently
serves over 33% of the acute care beds in Canada. Founded in 2004,
Medworxx Inc. is based in Toronto, ON, and publicly traded on the TSX
Venture Exchange: MWX
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Online: http://www.medworxx.com
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LinkedIn: linkedin.com/company/medworxx
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Twitter: @Medworxx
The TSX Venture Exchange has not reviewed this press release and neither
approved nor disapproved the information contained in this press release.
Disclaimer
This press release contains forward-looking statements. Often, but
not always, forward-looking statements can be identified by the use of
words such as “plans”, “expects” or “does not expect”, “is expected”,
“estimates”, “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” or
“will” be taken, occur or be achieved. Forward-looking statements
involve known and unknown risks, uncertainties and other factors, such
as competition, technological changes, the changing needs of hospitals,
the financial condition of the Company’s current and potential
customers, foreign currency exchange rates, as well as general economic
conditions, which may cause the actual results, performance or
achievements of the Corporation and Medworxx to be materially different
from any future results, performance or achievements expressed or
implied by the forward-looking statements. Actual results and
developments are likely to differ, and may differ materially, from those
expressed or implied by the forward-looking statements contained in this
press release. There can be no assurance that forward-looking 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.
