Vigil Health Solutions Inc.
TSX VENTURE : VGL

Vigil Health Solutions Inc.

August 08, 2013 16:16 ET

Vigil Health Solutions Reports Q1 Results

Sales Bookings, Revenue and Income Up

VICTORIA, BRITISH COLUMBIA--(Marketwired - Aug. 8, 2013) - Vigil Health Solutions Inc. ("Vigil") (TSX VENTURE:VGL) announces the results of operations for the quarter ending June 30, 2013.

Business Highlights

  • Record sales bookings of $1.60 million compared to $1.01 million in the three-month period ended June 30, 2012
  • Revenue up 33% to $894 thousand compared to $673 thousand in the three-month period ended June 30, 2012
  • Earnings of $21 thousand compared to a loss of $61 thousand in three-month period ended June 30, 2012
  • Gross proceeds of $388 thousand from warrant exercise

"We are pleased to have achieved record sales bookings this quarter. This is a credit to the team's success with existing and new corporate clients. These bookings, combined with continued growth in revenue and earnings, show the progress we are making in the seniors housing space," stated Troy Griffiths, President and CEO of Vigil Health Solutions Inc.

Financial Results

Revenue for the three-months ended June 30, 2013 was $894 thousand compared to $673 thousand in the three-month period ended June 30, 2012, an increase of 33%. Project revenue made up 53% 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 $1.60 million up 58% compared to $1.01 million in the three-month period ended June 30, 2012.

At June 30, 2013 Vigil had a backlog of approximately $3.43 million (including $1.28 million in deposits and progress billings, recorded as deferred revenue on the balance sheet) a 47% increase compared to approximately $2.34 million (including $684 thousand in deposits and progress billings, recorded as deferred revenue on the balance sheet) at June 30, 2012. At June 30, 2013, Vigil's backlog included 33 projects at varying stages of installation and progress billing with an average size of $104 thousand. There were 30 projects with an average size of $78 thousand in the three months ended June 30, 2012.

The gross margin percentage for the three months ended June 30, 2013 was 53% compared to 49% for the three months ended June 30, 2012. In addition to the large number of one off sales that usually have better margins due to the lower labour component, there were a number of projects with gross margin above management's usual expectations of between 42% and 47%. This was due to a number of factors including lower travel expenses and exclusion of the usually low margin subcontractor labour from the majority of projects.

Expenditures for the three months ended June 30, 2013 were $463 thousand, up 18% from operating expenditures of $393 thousand for the period ended June 30, 2012. The increase is primarily due to increased staffing costs.

Earnings for the three month period ended June 30, 2013 were $21 thousand, or $0.001 per share compared to a loss of $61 thousand, or $0.005 per share for the previous year. The profitable quarter resulted from the increase in both revenue and margins.

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 August 30, 2013, or, upon notice to the Company, entitled security holders may request a copy of financials in advance.

Summary Financial Information
June 30, June 30,
2013 2012
(unaudited) (unaudited)
Revenue $ 893,897 $ 673,228
Cost of sales 423,098 341,916
Gross profit 470,799 331,312
Expenses 463,430 392,905
Income (loss) before the following items 7,369 (61,593 )
Other income (expense): 13,132 296
Comprehensive income (loss) for the period $ 20,501 $ (61,297 )

Non-IFRS Measure

For the three months ended June 30, 2013, 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
June 30, 2013 June 30, 2012
Income / (loss) for the period $ 20,501 $ (61,297 )
Add / (deduct)
Foreign exchange gain (loss) (16,779 ) (17,823 )
Derivative exchange gain (loss) 2,902 13,500
Interest 745 4,027
Stock based compensation 9,977 711
Amortization 3,504 4,417
349 4,832
Adjusted EBITDA $ 20,850 $ (56,465 )

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 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 2013 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

  • Vigil Health Solutions Inc.
    Troy Griffiths
    President and CEO
    (250) 383-6900
    (250) 383-6999 (FAX)
    information@vigil.com

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