SOURCE: Vigil Health Solutions Inc.

Vigil Health Solutions Inc.

February 19, 2015 17:38 ET

Vigil Health Solutions Reports Profitable Third Quarter

VICTORIA, BC--(Marketwired - February 19, 2015) - Vigil Health Solutions Inc. (TSX VENTURE: VGL) ("Vigil") announces the results of operations for the quarter ending December 31, 2014.

Business Highlights

  • Earnings up 110% to $43 thousand compared to $20 thousand in the three month period ended December 31, 2013.
  • Revenue of $1.22 million compared to $1.30 million in the three-month period ended December 31, 2013.
  • Bookings for the quarter were $1.04 million compared to $1.15 million in the three-month period ended December 31, 2013.
  • Completed first sale of Vigil Essential system, a new, simplified wireless resident call system built around the needs of small Assisted Living Facilities with 30 beds or less.

"The senior housing market saw lower inventory growth in senior housing in 2014 however demand continues to build as facility occupancy levels increase. While assisted living growth has moderated and large campus construction has still to recover to pre-recession levels, standalone memory care has been a bright spot. Our unique Vigil Dementia System has accounted for almost half of the Company's installs fiscal year to date," stated Troy Griffiths, President and CEO of Vigil Health Solutions Inc.

Financial Results

Revenue for the three-months ended December 31, 2014 was $1.22 million compared to $1.30 million in the three-month period ended December 31, 2013, a decrease of 6%. Project revenue made up 59% 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 $1.04 million down 9% compared to $1.15 million in the three-month period ended December 31, 2013.

At December 31, 2014 Vigil had a backlog of approximately $2.71 million (including $1.01 million in deposits and progress billings, recorded as deferred revenue on the balance sheet) a 14% decrease compared to approximately $3.15 million (including $1.65 million in deposits and progress billings, recorded as deferred revenue on the balance sheet) at December 31, 2013. At December 31, 2014, Vigil's backlog included 32 projects at varying stages of installation and progress billing with an average project size of $85 thousand compared to 37 projects with an average value of $85 thousand at December 31, 2013. Projects can include individual buildings or floors of multiple phase campus construction. 

The gross margin percentage for the three months ended December 31, 2014 was 47% compared to 45% for the three months ended December 31, 2013. Gross margin was within management's usual expectations of margins of between 42% and 47%.

Expenditures for the three months ended December 31, 2014 were $549 thousand, down 3% from $568 thousand for the period ended December 31, 2013. 

Net income for the three month period ended December 31, 2014 was $43 thousand, or $0.003 per share compared to income of $20 thousand, or $0.001 per share for the previous year. The increase in profitability relates to the small increase in gross margin and decrease in operating costs as well as foreign exchange gains.

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 February 27, 2015. Or, upon notice to the Company, entitled security holders may request a copy of financials in advance.

Summary Financial Information

      
  Three months ended  Nine months ended
  December 31, December 31,  December 31, December 31,
  2014 2013  2014 2013
           
Revenue $1,224,676 1,302,766  3,460,004 3,506,869
Cost of sales  649,324 712,687  1,753,447 1,856,694
   575,352 590,079  1,706,557 1,650,175
           
Expenses  549,402 568,422  1,644,030 1,609,079
           
Income before the following items  25,950 21,657  62,527 41,096
           
Other income (expense)  16,857 (1,232) 22,208 21,375
           
Income for the period $42,807 20,425  84,735 62,471
           

Non-IFRS Measure

For the three months ended December 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.

      
  Three months ended Nine months ended 
  December 31, December 31, December 31, December 31, 
  2014 2013 2014 2013 
           
Income / (loss) for the period $42,807 20,425 84,735 62,471 
           
Add / (deduct)          
 Foreign exchange  (17,661)(2,746)(24,546)(22,219)
 Derivative exchange  1,320 4,470 2,880 481 
 Interest  (516)(492)(1,414)363 
 Stock based compensation  16,912 17,013 51,003 51,635 
 Amortization  4,979 4,281 14,362 11,947 
   5,034 22,526 42,285 42,207 
           
Adjusted EBITDA $47,841 42,951 127,020 104,678 
           

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" segment of our fiscal 2014 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.

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