Medworxx Solutions Inc. Year-End Financial Statement and Management Discussion Analysis

Year-end statement shows international expansion momentum

Business Wire

TORONTO--(BUSINESS WIRE)--

Medworxx Solutions Inc. ("Medworxx")(TSX VENTURE: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 year ended December 31, 2013. These documents may be viewed under the Company's profile at www.sedar.com.

Highlights of the results for the year ended December 31, 2013 include:

  • The Annualized Contract Value of recurring revenue at December 31, 2013 was $4.8M as compared to $4.4M at December 31, 2012, an increase of 9.0%.
  • Revenue from the Patient Flow Platform for the year ended December 31, 2013 increased to $4,068,962 from revenues of $3,410,872 for the year ended December 31, 2012, an increase of $658,090 representing growth of 19.3%.
  • Revenue from the Compliance and Education Platform for the year ended December 31, 2013 decreased to $1,786,779 from revenues of $2,463,080 for the year ended December 31, 2012, a decrease of $676,300 representing a decline of 27.5% (mostly due to a $757,064 sale of a worldwide, non‐exclusive, non‐transferrable license of the Policy and Document Management Software to a major US software company in Q3 2012). Excluding the one-time $757,064 sale, the Compliance and Education Platform increased by 4.7% over the same period last year.
  • Revenue for the year ended December 31, 2013 was $5,927,790, representing a decrease of 2.4% over revenues of $6,071,224 in the same period last year.
  • In January 2013, Medworxx launched the web‐based, integrated Patient Flow Solution Medworxx 5.0 which is comprised of Medworxx Clinical Criteria (formerly Utilization Management), Medworxx Bed Management (formerly Bed Board), and Medworxx Forms and Assessments (formerly Assessments), which is available as a software‐as‐a‐service (SaaS) single solution.
  • In Q1 2013, South Tees Hospitals NHS Foundation Trust in the UK licensed the Medworxx Patient Flow Solution, adding a further 1,000 beds onto the Patient Flow platform.
  • The Scarborough Hospital (TSH) purchased Medworxx Patient Flow Platform, which results in TSH utilizing the Medworxx Bed Management module to optimize patient flow for 547 patient beds and to simplify communications among care and support teams for streamlined bed placement, housekeeping and portering. The TSH Bed Management implementation is the first stage of the Central East Local Health Integration Network (Central East LHIN)’s multi‐stage patient flow improvement strategy to support health service providers in Central East Ontario.
  • Medworxx signed an agreement with TELUS Health to offer their customers the Medworxx Patient Flow Platform, enabling healthcare practitioners to better analyze and monitor patient health in an acute-care environment. TELUS has a significant footprint – it is used by about 40,000 clinical and healthcare professionals in Canada, primarily in Quebec and the Ottawa region, as well as in the U.S. and Australia. Medworxx Patient Flow is a natural integration point with Computerized Physician Order Entry (CPOE) and Medworxx will bring value to their customers through the synergistic technology.
  • Medworxx also formalized a new Medworxx Patient Flow – Appropriate Length of Stay Audit (“ALSA”) program, which helps to unlock unique patient flow data and help organizations better understand patient flow issues. ALSA uses the proven Medworxx software as an audit and diagnostic solution prior to hospitals implementing the solution operationally.
  • In Q2 2013, Greater East Midlands Commissioning Support Unit (GEM), a large UK Trust, licensed Medworxx Patient Flow – ALSA program for its annual reviews delivered within its region covering a 4.5 million population and 13,000 beds in acute-care or community‐based hospitals and in non‐hospital environments. They purchased a perpetual-use license to use the Patient Flow software to review audit results, plus annual maintenance and support. GEM is committed to performing up to 11 audits per annum for three years.
  • A number of existing customers purchased additional Medworxx Patient Flow modules, including: Hotel Dieu Grace Hospital/Erie St. Clair LHIN, ON, Canada; Windsor Regional Hospital, ON, Canada added Bed Management and Forms & Assessments; Trillium Health Partners, ON, Canada added Forms & Assessments; and Nova Scotia Department of Health, NS, Canada added Forms & Assessments for the entire province of Nova Scotia.
  • A number of contracts were signed in the year for the Medworxx Compliance and Education Platform, including: Carle Foundation Hospital, IL, USA; Providence Care Kingston, ON, Canada; St. Joseph's Health Centre Guelph, ON, Canada; Woodstock General Hospital ON, Canada; Almonte General Hospital ON, Canada; and Sonic Healthcare Global, TX, USA. Royal Victoria Regional Health Centre (formerly Royal Victoria Hospital), ON, Canada, a client since 2010, and Erie County Medical Center, NY, USA, a client since 2007, also expanded their use of Medworxx and have licensed additional users.
  • With strong traction in Canada and robust growth in the UK, Medworxx has begun to market actively in Australia. With 82,800 hospital beds in Australia, there is a significant opportunity for hospitals to achieve significant quantifiable increases in efficiency by implementing the Medworxx Patient Flow Platform. Medworxx has also partnered with global management consulting firm Kurt Salmon to use the Medworxx Patient Flow Platform – ALSA program to conduct audits of healthcare organizations in France as part of their management consulting process.
  • George Elliott was appointed as Chairman of the Medworxx Board of Directors effective August, 2013.

"2013 was a large step-forward year for Medworxx," said Dan Matlow, President and CEO, Medworxx. "Our expansion strategy for the Patient Flow Platform gained significant momentum in the United Kingdom, Australia, France and the United States. Our expansion strategy included the formal introduction of our Appropriate Length of Stay Audit program into the global marketplace. We are excited to see ALSA adoption not just in Canada but in international markets as well.”

About Medworxx

Medworxx delivers health information technology solutions to over 350 hospitals internationally, including Canada, United States, United Kingdom, France and Australia. Medworxx helps hospitals meet patient flow challenges and requirements for compliance and education. Medworxx Clinical Criteria —the flagship component of Medworxx Patient Flow, which also includes electronic bed management and independent assessment components—is currently used to manage 34% of the acute-care beds in Canada as well as acute-care beds in a rapidly increasing number of Trusts and CCGs in the UK. Founded in 2004, Medworxx Inc. is based in Toronto, Canada, and publicly traded on the TSX Venture Exchange: MWX. Visit: www.medworxx.com

The TSX Venture Exchange has not reviewed this press release and neither approved nor disapproved the information contained in this press 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
Nadine Brown, 416-642-1278 ext. 317
Media Contact
TF: 1-800-321-1591
nbrown@medworxx.com
or
Dan Matlow, 416-642-1278 ext. 311
President & Chief Executive Officer
TF: 1-800-321-1591
dmatlow@medworxx.com

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