Healthscreen Solutions Inc.
TSX VENTURE : MDU

Healthscreen Solutions Inc.

August 12, 2009 08:00 ET

Healthscreen Reports Record Third Quarter 2009 Results

Record Revenue and EBITDA, New "Chronic Condition Management" services continue successful market launch - Total quarterly revenue grows 33% to $3,501,141 from $2,631,654 for the same quarter of prior year - Revenue grows 14% from immediately preceding quarter - Physician Services revenue grows 36% to $2,427,871 from $1,783,473 for the immediately preceding fiscal quarter - Quarterly Gross Profit Margin improves to 86% from 82% in the immediately preceding quarter - EBITDA increases by 73% from immediately preceding fiscal quarter, to $453,018 - Net Income, from continuing operations, improves to $156,552 compared to a Net Loss of $735,368 in comparable period in 2008, and a Net Loss of $357,419 in previous quarter (included in the current quarter was a one time accounting gain of $496,862 relating to the renegotiation of the Wellington Debt)

TORONTO, ONTARIO--(Marketwire - Aug. 12, 2009) - Healthscreen Solutions Inc. (TSX VENTURE:MDU), Canada's premier provider of physician practice enhancement services and electronic medical record (EMR) software, today announced its third quarter of fiscal 2009 results for the period ending June 30, 2009.

"We truly experienced the agility and energy of our operations and sales teams this quarter in the launch of our new physician services, and it is rewarding to have that hard work pay off as a record-breaking revenue quarter," said Justin Belobaba, president and CEO of Healthscreen.

Q3 Fiscal Year 2009 Financial Results

Healthscreen's revenue for the quarter ended June 30, 2009 was $3,501,141, as compared to $2,631,654 in the quarter ended June 30, 2008, representing an increase of $869,487 or 33%. Healthscreen's revenue for the nine months ended June 30, 2009 was $9,637,601, as compared to $6,285,522 an increase of $3,352,079 or 53% over the nine month period ended June 30, 2008.

On a segmented basis, the Physician Services business unit's revenue for the quarter ended June 30, 2009 was $2,427,871, as compared to $1,905,848 in the quarter ended June 30, 2008, representing an increase of $522,023 or 27%. The increase in revenue was due to the creation of new customer relationships, including growth in customer list from past acquisitions. Healthscreen continues to leverage relationships with existing software customers to grow the Physician Services business. Also, Healthscreen began selling Chronic Condition Management services to patients of its physician customers. Included in this offering is the Company's new DIAMOND ("Diabetes Management Optimized with Nurses and Devices") Program, which provides comprehensive case management for diabetes sufferers. Healthscreen also partnered with Toronto based, Physiomed Health, Inc, to offer its physician customers a simplified process for referring patients to Physiomed's WholeHealth experience to allow them to easily gain access to a wide range of health care professionals including physiotherapists, kinesiologists, and lifestyle management consultants.

The Software Product business unit's revenue for the quarter ended June 30, 2009 was $1,073,270, as compared to $725,806 in the quarter ended June 30, 2008, representing an increase of $347,464 or 48%. This growth was mainly the result of a strong focus on new system sales, and increasing recurring revenue from maintenance fees on existing software installations.

Gross profit for the period, which accounts for costs of hardware, mailing costs, and other direct costs associated with offering the Company's software and services, increased significantly from 76% of revenue to 86% of revenue. This increase in gross profit is the result of diligent cost-cutting, economies of scale and process improvement.

Compared to the third quarter of 2008, SG&A expenses increased to $1,544,967 from $1,316,954, an increase of $228,013 or 17%. Expressed as a percentage of revenue, however, SG&A decreased from 69% of revenue to 44%. Operating expenses grew from $942,421 in the quarter ended June 30, 2008 to $1,000,761 in the quarter ended June 30, 2009, an increase of $58,340 or 6%. Expressed as a percentage of revenue, operating expenses decreased to 28% from 36%.

EBITDA for the period increased to $453,018 from a loss of $259,312 in Q308, and a profit of $262,862 in Q209. Net income from continuing operations was $156,552, or $0.002 per share compared to the loss posted in the third quarter of 2008, $735,368 or $0.017 per share.

Cash decreased from $1,733,857 at March 31, 2009 to $1,288,413 at June 30, 2009, primarily resulting from the acceleration in payments to our physician clients. In addition, Healthscreen continued to invest in its software product to meet OntarioMD's 3.0 certification requirements, which was completed in June 2009.

Complete financial statements and the Management Discussion and Analysis and Financial Statements for the third quarter of 2009 are available on the Company's website at www.healthscreen.com and www.sedar.com.

Q4 2009 Outlook

Looking to the fourth quarter of 2009, the company remains focused on three important goals:

- Continue to build on its foundation of innovative products by refining existing offerings, and commercializing the first of its Chronic Condition Management services. This will require both time and investment to ensure that these new services succeed.

- Generate operating efficiencies by leveraging existing infrastructure with improved technology rather than increased headcount.

- Continue to focus on increasing EBITDA and reach cash flow positive from the core business.

About Healthscreen Solutions

Healthscreen Solutions (www.healthscreen.com) provides a comprehensive suite of practice enhancing products and services to increase physician productivity and revenue while reducing costs and improving patient care. The Company's portfolio includes billing and scheduling software, electronic medical records software, CallerMD which assists physicians in managing a range of uninsured medical services, PrevCareMD which helps physicians earn supplemental income by achieving government-set preventive care targets, and HealthAlert which allows physicians to help their patients in managing complex healthcare issues. Healthscreen's and its partners' services and software are used by over 8,000 full-time physicians who are responsible for the health care of more than seven million Canadians.

(C) 2009 Healthscreen Solutions Inc. All Rights Reserved.

Disclaimer: Forward Looking Statements

This press release contains information that is forward looking information with respect to Healthscreen within the meaning of Section 138.4(9) of the Ontario Securities Act and other applicable securities laws. In some cases, forward-looking information can be identified by the use of terms such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "intend", "estimate", "predict", "potential", "continue" or the negative of theses terms or other similar expressions concerning matters that are not historical facts. In particular, statements about future revenues or profitability, including the estimated timing of profitability, and any other statements regarding Healthscreen's future expectations, beliefs, goals or prospects are or involve forward-looking information.

Forward-looking information is based on certain factors and assumptions. While the company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. Forward-looking information, by its nature necessarily involves risks and uncertainties, including risks and uncertainties relating to government regulation and funding in the healthcare industry, financial and capital market risks, technology development and adoption, Healthscreen's ability to maintain its competitive position and effectively implement it's acquisition strategy, liability for software malfunction, management of growth, and length of sales cycles. Additional risks and uncertainties affecting Healthscreen can be found in Healthscreen's 2008 Annual Report and Management's Discussion and Analysis for the Fiscal Year ended September 30, 2008 filed on SEDAR at www.sedar.com. If any of these risks or uncertainties were to materialize or if the factors and assumptions underlying the forward-looking information were to prove incorrect, actual results could vary materially from those that are expressed or implied by the forward-looking information contained herein. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof. Trading in the securities of Healthscreen should be considered highly speculative.

The TSX Venture Exchange has in no way approved nor disapproved the contents of this new release.

Contact Information

  • Healthscreen Solutions Inc.
    Justin Belobaba
    President and CEO
    1-866-534-DOCS ext. 7015
    ir@healthscreen.com