Vigil Health Solutions Inc.

Vigil Health Solutions Inc.

June 23, 2014 14:16 ET

Vigil Health Solutions Reports Record Revenue, Bookings and Earnings

VICTORIA, BRITISH COLUMBIA--(Marketwired - June 23, 2014) - Vigil Health Solutions Inc. (TSX VENTURE:VGL) ("Vigil") announces the results of operations for the fiscal year and the fourth quarter, ending March 31, 2014.


  • Earnings up 73% to $265 thousand for fiscal 2014 compared to $153 thousand in fiscal 2013.
  • Positive EBIDTA of $343 thousand compared to $207 thousand in fiscal 2013.
  • Revenue up 37% to $5.12 million compared to $3.74 million in the year ended March 31, 2013.
  • Sales bookings were up 20% to $5.29 million compared to $4.41 million in the year ended March 31, 2013.

"We are pleased to see continued sales and earnings growth in fiscal 2014. We now have the privilege of providing technology for more than 25,000 senior living beds in communities across North America. Our research and development spending more than doubled in fiscal 2014 reflecting investment in our existing technology and new product offerings. Going forward we are focused on providing new, innovative technologies to senior living and the growing memory care market," stated Troy Griffiths, President and CEO of Vigil Health Solutions Inc.

Financial Results

Sales bookings for the year ended March 31, 2014 were $5.29 million up 20% from $4.41 million in the year ended March 31, 2013.

At March 31, 2014 Vigil had a backlog of approximately $2.99 million (including $1.14 million in deposits and progress billings, recorded as deferred revenue on the balance sheet) down 17% from $3.62 million (including $899 thousand in deposits and progress billings, recorded as deferred revenue on the balance sheet) at March 31, 2013. The lower backlog reflects higher revenues in the last quarter of fiscal 2014 relating to the large number of projects completed.

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, 2014 was $5.12 million compared to $3.74 million in the year ended March 31, 2013, an increase of 37%. Project revenue made up 65% 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 19% over fiscal 2013.

The gross margin percentage for the year ended March 31, 2014 was 47% compared to 49% for the year ended March 31, 2013. Gross margins are in line with management expectations of between 42% and 47%.

Operating expenditures for the year ended March 31, 2013 were $2.19 million up 30% from $1.69 million for the same period ended March 31, 2013. The majority of the increase can be attributed to an increase in payroll. In fiscal 2013 certain employees had reduced hours, temporarily reducing operating costs, in fiscal 2014 staffing levels increased in line with sales.

Net income for the year ended March 31, 2014 was $265 thousand, or $0.016 per share, compared to $153 thousand, or $0.012 per share per share, for the previous year. The profitable year is due to the 37% increase in revenue.

A summary of our financial performance for the quarter and year ended March 31, 2014 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 Financial information will be mailed to entitled security holders on June 27, 2014. Or, upon notice to the Company, entitled security holders may request a copy of financials in advance.

Summary Financial Information
Three months end March 31, Twelve months end March 31,
2014 2013 2014 2013
Revenue $ 1,614,408 $ 1,141,721 $ 5,121,277 $ 3,737,550
Cost of sales 842,818 581,412 2,699,512 1,893,247
Gross profit 771,590 560,309 2,421,765 1,844,303
Expenses 585,710 511,364 2,194,789 1,691,821
Income before the following items 185,880 48,945 226,976 152,482
Other income (expense) 17,025 1,811 38,400 844
Comprehensive income for the period $ 202,905 $ 50,756 $ 265,376 $ 153,326

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,
2014 2013 2014 2013
Income for the period $ 202,905 $ 50,756 $ 265,376 $ 153,326
Add / (deduct)
Foreign exchange gain (loss) (17,507 ) (7,095 ) (39,726 ) (23,826 )
Derivative exchange gain (1,110 ) 3,478 (629 ) 9,200
Interest (231 ) 1,805 132 13,782
Tax - - 1,823 -
Stock based compensation 17,846 12,478 99,705 39,290
Amortization 4,211 3,603 16,159 15,646
3,209 14,269 77,464 54,092
Adjusted EBITDA $ 206,114 $ 65,025 $ 342,840 $ 207,418

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.

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