SOURCE: Vigil Health Solutions Inc.

Vigil Health Solutions Inc.

June 22, 2015 14:56 ET

Vigil Health Solutions Reports Annual and Quarterly Results

VICTORIA, BC--(Marketwired - June 22, 2015) - Vigil Health Solutions Inc. ("Vigil") (TSX VENTURE: VGL) announces the results of operations for the fiscal year and the fourth quarter, ending March 31, 2015.

Highlights

  • Revenue of $4.62 million compared to $5.12 million in fiscal 2014.
  • Earnings were $152 thousand compared to $265 thousand in fiscal 2014.
  • Sales bookings of $4.64 million in sales bookings compared to $5.29 million in 2014.
  • Delivered the first Vigil Essential, a new, simplified wireless resident call system built around the needs of small Assisted Living Facilities.
  • Vigil Mobile, a smart phone application that allows clients to see all active calls completed beta testing.

"While we were pleased to see another consecutive year of profitable operations we were unable to match the strong fourth quarter in fiscal 2014 that resulted from the completion of two large Continuing Care Retirement Community (CCRC) projects. This largely explains the lower revenue and earnings year over year. While the increased activity in assisted living (including dementia care) fits well with our product mix these deals are substantially smaller than CCRCs. We remain focused on these large campuses while also improving the products targeted at the more prolific assisted living market and in particular the large number of small facilities," stated Troy Griffiths, President and CEO of Vigil Health Solutions Inc.

Financial Results

Sales bookings for the year ended March 31, 2015 were $4.64 million compared to $5.29 million in the year ended March 31, 2014. The decrease largely related to a decline in the number of sales contracts closed in one territory that had experienced human resource changes.

At March 31, 2015 Vigil had a backlog of approximately $2.99 million (including $918 thousand in deposits and progress billings, recorded as deferred revenue on the balance sheet) unchanged from $2.99 million (including $1.14 million in deposits and progress billings, recorded as deferred revenue on the balance sheet) at March 31, 2014.

Vigil records revenue following completion of the installation and commissioning of the product at the customer site which is indicated by customer acceptance. The timing of the installation of Vigil's products is often dependent on facility construction schedules, which can result in a considerable lag between receipt of contracts and revenue recognition. The Company's backlog includes all contracts signed including those in progress but not completed.

Revenue for the year ended March 31, 2015 was $4.62 million compared to $5.12 million in the year ended March 31, 2014, a decrease of 10%. Project revenue made up 56% 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 and were up 14% over fiscal 2014. The decline in project revenue reflects a decrease in the number of project installations completed in the year. There were 43 projects completed in fiscal 2015 with an average value of $60 thousand compared to $47 thousand with an average value of $71 thousand in fiscal 2014. Installation size reflects the type of facility sales made. In fiscal 2014 there were a greater number of large Continuing Care Retirement Communities, these projects are usually in the $200-$300 thousand dollar range. In fiscal 2015 the majority of installations were smaller assisted living and stand alone dementia care.

The gross margin percentage for the year ended March 31, 2015 was 50% compared to 47% for the year ended March 31, 2014. The appreciating United States dollar increased gross margins past management expectations of between 42% and 47%.

Operating expenditures for the year ended March 31, 2015 were $2.21 million compared to $2.19 million for the same period ended March 31, 2014.

Net income for the year ended March 31, 2015 was $152 thousand, or $0.009 per share, compared to $265 thousand, or $0.016 per share per share, for the previous year. The decline in earnings reflects the 10% decrease in revenue.

A summary of our financial performance for the quarter and year ended March 31, 2015 follows below. For further information relating to the financial results of the Company, please refer to the Company's financial statements and MD&A filed on SEDAR at www.sedar.com. Financial information will be mailed to entitled security holders on June 26, 2015. Or, upon notice to the Company, entitled security holders may request a copy of financials in advance.

 
Summary Financial Information
 
  Three months ended March 31, Twelve months ended March 31,
    2015   2014   2015   2014
 
Revenue $ 1,160,419 $ 1,614,408 $ 4,620,423 $ 5,121,277
 
Cost of sales   572,852   842,818   2,326,299   2,699,512
 
Gross profit   587,567   771,590   2,294,124   2,421,765
 
Expenses   565,132   585,710   2,209,162   2,194,789
 
Income before the following items   22,435   185,880   84,962   226,976
 
Other income (expense)   45,060   17,025   67,268   38,400
 
Comprehensive income for the period $ 67,495 $ 202,905 $ 152,230 $ 265,376
         

Non-IFRS Measure

For the year ended March 31, 2014, 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    Twelve months ended  
  March 31,  March 31,    March 31,    March 31,  
    2015    2014    2015    2014  
   
Income for the period $ 67,495  $ 202,905  $ 152,230  $ 265,376  
   
Add / (deduct)                     
 Foreign exchange gain (loss)   (55,421 )  (17,507 )  (79,967 )  (39,726 )
 Derivative exchange gain   8,960    (1,110 )  11,840    (629 )
 Interest   (399 )  (231 )  (1,813 )  132  
 Sales Tax   -    -    2,672    1,823  
 Stock based compensation   14,202    17,846    65,205    99,705  
 Amortization   5,001    4,211    19,362    16,159  
    (27,657 )  3,209    17,299    77,464  
   
Adjusted EBITDA $ 39,838  $ 206,114  $ 169,529  $ 342,840  
             

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™ featuring discreet 'mini pendants', a nurse call system, mobile fall, incontinence monitoring, resident check in 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. 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

Contact Information

  • For further information please contact:
    Troy Griffiths
    President and CEO
    Tel: (250) 383-6900
    Fax: (250) 383-6999
    Email: information@vigil.com

    Vigil Health Solutions Inc.
    2102-4464 Markham Street
    Victoria, BC
    V8Z 7X8
    Website: www.vigil.com