QHR Technologies Inc.
TSX VENTURE : QHR

QHR Technologies Inc.

June 20, 2011 16:06 ET

QHR Earns $976,808 in Record 2011 Q1 Financial Results

KELOWNA, BRITISH COLUMBIA--(Marketwire - June 20, 2011) - QHR Technologies Inc. (TSX VENTURE:QHR) ("QHR" or the "Company") a leader in the Canadian Healthcare Information Technology sector, is pleased to announce today the release of its first quarter financial statements for March 31, 2011. Total revenue for the quarter was $6.48 million, an all-time record for the company, and an increase of 39% over the $4.66 million reported in the same 2010 period. The Enterprise Management Solutions ("EMS") division led the way by reporting record revenue of $4.01 million. The ("Hosting") division had revenues of $0.63 million, up 62% over the $0.39 million in the same prior year period.

Earnings for the quarter were $976,808 or $0.02 per share compared to a loss of $324,978 or $(0.01) for the comparative period in 2010.

HIGHLIGHTS

  • Revenue for the quarter was $6.48 million compared to $4.66 million in 2010, a 39% increase.
  • The EMS division reached $4.01 million in revenue based on additional licensing and services to existing and new clients. This is an increase of 64% over the same period last year of $2.45 million.
  • The Hosting division had revenue of $0.63 million, up 62% over the same period last year.
  • The EMS and Hosting divisions and the Company as a whole had record revenues in Q1, 2011.
  • Earnings before amortization, stock-based compensation, interest expense and foreign exchange were $1.43 million compared to $0.24 for the same period in 2010.
  • The Company reported cash and other current assets as $13.07 million compared to $4.63 million at Q1 2010.
  • The Company's first quarter Financial Statements and comparatives were prepared under IFRS which involved the assistance of external consultants and the Company's auditors.

Revenues

The company recorded $6.48 million in revenue for the three months ending March 31, 2011 compared to $4.66 million for the three months ending March 31, 2010 an increase of 39%.

The EMS division revenue for the first quarter was $4.01 million compared to $2.45 million for the same period last year an increase of 64%. This increase was largely due to securing new licensing agreements as well as additional services with new and existing clients.

The EMR division revenue for the first quarter was $1.84 million which is similar to the comparable period last year and was largely driven by continued recurring revenue from our Accuro® EMR software system.

The Hosting division had revenues of $0.63 million which was 62% higher than the $0.39 million in Q1, 2010.

Operating Expenses

Operating expenses including cost of goods sold were $5.06 million for the three months ending March 31, 2011 compared to $4.42 million for the same period in 2010, an increase of 14%. The increase in operating expenses is due to professional and consulting fees associated with IFRS conversion, additional expenses relating to increased marketing activities, and variable expenses as a result of additional revenues for the quarter.

March 31, 2011EMSEMRHostingCorporateTotal
Revenues$ 4,005,214$ 1,844,808$ 631,879$ -$ 6,481,901
Operating expenses2,022,1891,380,031596,3561,057,1605,055,736
Earnings before the undernoted1,983,025464,77735,523(1,057,160)1,426,165
Stock-based compensation23,42512,2422,439-38,106
Amortization of property and equipment40,35231,30862,209-133,869
Amortization of intangible assets105,860185,133--290,993
Interest expense10,60015,5444,086-30,231
(Gain) loss on exchange4,715136(2)-4,849
Earnings before income taxes1,798,073220,414(33,210)(1,057,160)928,117
Income tax recovery, net(48,691)
Net earnings$ 976,808
March 31, 2010EMSEMRHostingCorporateTotal
Revenues$ 2,446,545$ 1,823,796$ 391,605$ -$ 4,661,946
Operating expenses2,230,987967,501541,813680,7304,421,031
Earnings before the undernoted215,558856,295(150,208)(680,730)240,915
Stock-based compensation8,360-1,204-9,564
Amortization of property and equipment55,47851,93919,398-126,815
Amortization of intangible assets104,965167,9722,200-275,137
Interest expense27,711116,7164,863-149,290
Loss on foreign exchange-4,805282-5,087
Loss before income taxes19,044514,863(178,155)(680,730)(324,978)
Income taxes-
Net loss$ (324,978)

Other Expenses

Other expenses including stock-based compensation, amortization, interest and foreign exchange were $0.50 million for the three months ending March 31, 2011 compared to $0.56 million for the same period in 2010, a decrease of 11%. The decrease in operating expenses is largely due to a reduction of interest costs from eliminated long-term debt.

Net Earnings

Before income tax recovery, earnings for the three months ended March 31, 2011 were $0.93 million compared to losses of $0.33 million for the same period last year. The net earnings for the year were $0.98 million compared to a net loss of $0.33 million in 2010, an increase of $1.31 million or 397%. The increase in earnings is attributed to substantially increase licensing agreements in the EMS division than in the prior year period in 2010.

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 2:00 PM EST (11:00 PDT) Tuesday, June 21, 2011 to discuss the results of the Company for the 2011 Q1 financial results. To listen to the conference call, please dial 647-427-7450 (Toronto) or 778-371-9827 (Vancouver).

ABOUT QHR TECHNOLOGIES INC.

QHR now operates three business units in distinct markets:

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.

The Electronic Medical Records ("EMR") division offers a suite of medical software modules that provides computer-based medical records for 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 Hosting division specializes in EMR ASP Hosting solutions both on-site and off-site, which consist of custom application hosted solutions, exchange email hosting, office software packages, mobile messaging services, server archiving and many other custom solutions and services. These solutions are targeted at EMR clients looking for an enhanced ASP option, required by some provincial governments.

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. The Company is not aware of any Forward looking statements in this news release. 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. Further information on the Company is available at www.sedar.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.

Contact Information