VICTORIA, BRITISH COLUMBIA--(Marketwire - Feb 7, 2013) - Vigil Health Solutions Inc. ("Vigil") (TSX VENTURE:VGL) announces the results of operations for the quarter ending December 31, 2012.
- Net Income of $132 thousand compared to a loss of $68 thousand in the three-month period ended December 31, 2011 (profit of $103 thousand for the nine month period ending December 31, 2012).
- Grew bookings 7% to $1.09 million compared to $1.02 million in the three-month period ended December 31, 2011.
- Increased backlog to approximately $2.76 million compared to approximately $2.08 million in the three-month period ended December 31, 2011.
- Revenue up 39% to $1.10 million from $787 thousand in the three-months ended December 31, 2011.
"We are pleased to see the improving sales and our continued focus on controlling costs has resulted in both a profitable quarter and year to date," stated Troy Griffiths, President and CEO of Vigil Health Solutions Inc.
Revenue for the three-months ended December 31, 2012 was $1.10 million compared to $787 thousand in the three-month period ended December 31, 2011, an increase of 39%. Project revenue made up 66% 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 $1.09 million up 7% compared to $1.02 million in the three-month period ended December 31, 2011.
At December 31, 2012 Vigil had a backlog of approximately $2.76 million (including $875 thousand in deposits and progress billings, recorded as deferred revenue on the balance sheet) a 33% increase compared to approximately $2.08 million (including $611 thousand in deposits and progress billings, recorded as deferred revenue on the balance sheet) at December 31, 2011. At December 31, 2012, Vigil''s backlog included 37 projects at varying stages of installation and progress billing with an average project size of $75 thousand. This was an increase over the 23 projects with an average value of $91 thousand in the three months ended December 31, 2011. Projects can include individual buildings or floors of multiple phase campus construction.
The gross margin percentage for the three months ended December 31, 2012 was 50% compared to 47% for the three months ended December 31, 2011. Gross margin was slightly higher than management''s usual expectations of margins of between 42% and 47%.
Expenditures for the three months ended December 31, 2012 were $424 thousand, down 6% from $452 thousand for the period ended December 31, 2011. Expenses while down quarter over quarter were up to more standard levels reflecting a gradual return to regular hours as business activity increases.
Net income for the three month period ended December 31, 2012 was $132 thousand, or $0.010 per share compared to a loss of $68 thousand, or $0.005 per share for the previous year. The profitable quarter relates largely to the 39% increase in revenue as well as improved margins and a reduction in operating costs. The Company expects to see staffing levels and operating costs increase going forward.
Detailed financial statements along with Management Discussion and Analysis have been filed with SEDAR (www.sedar.com).
Financial information will be mailed to entitled security holders on February 22, 2013. Or, upon notice to the Company, entitled security holders may request a copy of financials in advance.
Summary Financial Information
|December 31,||December 31,|
|Cost of sales||546,081||420,835|
|Income (loss) before the following items||125,604||(85,992||)|
|Other income (expense):||6,099||18,167|
|Income / (loss) for the period||$||131,703||$||(67,825||)|
For the three months ended December 31, 2012, we are disclosing Adjusted EBITDA, a non-IFRS financial measure, as a supplementary indicator of operating performance. We define Adjusted EBITDA as net income before, interest, income taxes, amortization, stock based compensation and currency gains or losses including derivative foreign exchange differences. We are presenting the non-IFRS financial measure in our filings because we use it internally to make strategic decisions, forecast future results and to evaluate our performance and because we believe that our current and potential investors and analysts use the measure to assess current and future operating results and to make investment decisions. It is a non-IFRS measure, may not be comparable to other companies and it is not intended as a substitute for IFRS measures.
Adjusted EBITDA Reconciliation
|Three months ended||Nine months ended|
|December 31,||December 31,||December 31,||December 31,|
|Income / (loss) for the period||$||131,703||(67,825||)||102,570||(374,676||)|
|Add / (deduct)|
|Stock based compensation||13,458||1,529||26,812||6,030|
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 2012 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.