Medworxx Inc. Files Second Quarter 2013 Financial Statements and Management’s Discussion and Analysis

Medworxx reports another quarter of revenue growth and continues international expansion

Business Wire

TORONTO--(BUSINESS WIRE)--

Medworxx Inc. (“Medworxx”) (TSXV:MWX), a leader in clinical patient flow, and compliance and education solutions, announced today it has filed with the Canadian securities authorities its Consolidated Financial Statements and Management’s Discussion and Analysis report for the three and six month interim periods ended June 30, 2013. These documents may be viewed under the Company’s profile at www.sedar.com.

Highlights of the results for the period ended June 30, 2013 include:

  • Revenue for the six months ended June 30, 2013 was $2,991,454, representing an increase of 12.1% over revenues of $2,669,714 in the same period last year while for the quarter ended June 30, 2013 revenue was $1,538,648, representing an increase of 8.9% over revenues of $1,412,647 for the previous year. The increase is attributable primarily to growth in the Patient Flow platform of 24.6% for the six months period and 35.0% growth on the prior year quarter.
  • The Company incurred a net loss of $558,135 for the six months ended June 30, 2013 as compared to a net loss of $127,766 for the six months ended June 30, 2012. Net loss of $236,319 for the three months ended June 30, 2013 as compared to a net loss of $57,884 for the three months ended June 30, 2012. The loss for the quarter is attributable to the planned investment in building the sales and partner channels for the Medworxx Patient Flow platform.
  • Adjusted EBITDA (a non-IFRS measure), defined as Earnings before Interest, Taxation, Depreciation, Amortization, and Stock Option Expense, for the six months ended June 30, 2013 was a negative $405,175 as compared to a positive $66,081 for the six months ended June 30, 2012, representing a decline of $471,256. For the three months ended June 30, 2013, adjusted EBITDA was a negative $161,110 as compared to a positive $42,886 for the same period last year, representing a decline of $203,996.
  • In the quarter, the company formalized a new Appropriate Length of Stay Audit (“ALSA”) program, which helps to unlock unique patient flow data helping organizations understand patient flow issues, ALSA uses the proven Medworxx software as an audit and diagnostic solution, prior to hospitals implementing the solution operationally. Management consulting companies and hospital support agencies are able to use Medworxx to rapidly unlock unique patient flow data, providing visibility into patient flow issues in the hospitals that they provide services to.
  • A large UK Trust has licensed Medworxx Patient Flow – Appropriate Length of Stay Audit Program for their annual reviews delivered within their region covering a 4.5 million population and 13,000 beds in acute or community-based hospitals, or non-hospital environments. They purchased a perpetual use license, for use of the Patient Flow software to review audit results for $164,073 plus annual maintenance and support of $32,815 and have committed to performing up to 11 audits per annum for an annual fee of $90,212.
  • In April 2013, Medworxx was listed as one of the Top 250 Canadian ICT Companies and Top 20 Movers & Shakers on the Branham300 report. This is the 5th consecutive year Medworxx has been ranked on the Branham300, demonstrating the company’s continued growth and profitability. This is the first time the company has placed on the Top 20 Movers & Shakers category.

“We continue to see growth in a steady progression, especially with our patient flow products,” said Dan Matlow, President and CEO, Medworxx. “This is the second consecutive quarter where our UK unit has contributed significantly to our revenue results. We are continuing to see increased pipeline activity within all geographies in which we are actively marketing.”

About Medworxx

Medworxx delivers health information solutions to over 350 hospitals internationally; including Canada, United States and United Kingdom. Medworxx helps hospitals meet patient flow challenges, and requirements in compliance and education. Medworxx Clinical Criteria – flagship of Medworxx Patient Flow that includes electronic bed board and independent assessment components – currently serves over 33% of the acute care beds in Canada. Founded in 2004, Medworxx is based in Toronto, ON, and publicly traded on the TSX Venture Exchange: MWX.

Visit: www.medworxx.com

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Disclaimer

This press release contains forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of words such as “plans,” “expects” or “does not expect,” “is expected,” “estimates,” “intends,” “anticipates” or “does not anticipate,” or “believes,” or variations of such words and phrases or state that certain actions, events or results “may,” “could,” “would,” “might” or “will” be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors, such as competition, technological changes, the changing needs of hospitals, the financial condition of the Company’s current and potential customers, foreign currency exchange rates, as well as general economic conditions, which may cause the actual results, performance or achievements of the Corporation and Medworxx to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this press release. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

Contact:
Medworxx
Dan Matlow, 416-642-1278 Ext. 311
President & Chief Executive Officer
dmatlow@medworxx.com
or
Brian Goffenberg, 416-642-1278 Ext. 315
Chief Financial Officer & Executive Vice President
bgoffenberg@medworxx.com

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