VICTORIA, BRITISH COLUMBIA–(Marketwire – Aug. 9, 2010) – Vigil Health Solutions Inc. (TSX VENTURE:VGL) (“Vigil”) announces the results of operations for the quarter ending June 30, 2010.
Business highlights
- Grew bookings 26% for the quarter to $955 thousand compared to $755 thousand for the three-month period ended June 30, 2009.
- Increased backlog 14% to approximately $3.1 million compared to approximately $2.72 million at June 30, 2009.
- Revenue was $641 thousand for the three-months ended June 30, 2010 compared to $1.37 million in the three-month period ended June 30, 2009, a decrease of 53%. The decrease reflects lower bookings in FYE2010 and the timing in projects commissioned.
- Expanded revenue from service and maintenance agreements and one-off sales by 72% during the quarter ended June 30, 2010 to $298 thousand.
“I am encouraged with our increased sales bookings which I believe is a positive indication of both the improvement in the economy, as well as our continued investment in sales and marketing,” stated Troy Griffiths, President and CEO of Vigil Health Solutions Inc.
Financial Results
Revenue for the three-months ended June 30, 2010 was $641 thousand compared to $1.37 million in the three-month period ended June 30, 2009, a decrease of 53%. The decrease in revenue reflects both the reduced number and size of the projects completed during the quarter. Because Vigil records revenue using the completed contract method the number of projects completed this quarter directly reflects a lag related to the timing of the US economic downturn.
Bookings for the quarter were $955 thousand up 26% compared to $755 thousand in the three-month period ended June 30, 2009. The increase in bookings relates to an improvement in the United States economy, specifically, in funding availability for new construction in the seniors living industry as well as the Company’s investment in it sales program.
At June 30, 2010, Vigil had a backlog of approximately $3.1 million (including $1.64 million in deposits and progress billings, recorded as deferred revenue on the balance sheet) a 14% increase compared to approximately $2.72 million (including $1.34 million in deposits and progress billings, recorded as deferred revenue on the balance sheet) at June 30, 2009. This increase is the result of booking more new projects than recorded as revenue during the quarter.
The gross margin percentage for the three months ended June 30, 2010 was 45% compared to 48% for the three months ended June 30, 2009. The gross margin during the period was with in management’s expectations of margins of between 42% and 47%.
Expenditures for the three months ended June 30, 2010 were $465 thousand down 22% from operating expenditures of $599 thousand for the same period ended June 30, 2009. The Company decreased expenditures in all areas. These decreases were the result of a combined strategic effort to focus resources where they would be best utilized.
Net loss for the three month period ended June 30, 2010 was $180 thousand, or $0.002 per share compared to a gain of $66 thousand, or $0.001 per share for the previous year. The increase in losses is primarily attributable to the lower in revenue in the period.
Detailed financial statements along with Management Discussion and Analysis have been filed with SEDAR and may be viewed on the Company web site (http://www.vigil.com/?Investors:Financial_Statements) or at (www.sedar.com).
Financial information will be mailed to entitled security holders on August 16, 2010. Or, upon notice to the Company, entitled security holders may request a copy of financials in advance.
Summary Financial Information
| June 30, | June 30, | |
| 2010 | 2009 | |
| (unaudited) | (unaudited) | |
| Revenue | $641,420 | $1,370,157 |
| Cost of sales | 355,705 | 708,450 |
| 285,715 | 661,707 | |
| Expenses | 472,943 | 612,120 |
| Income before the following items | (187,228) | 49,587 |
| Other income (expense): | 6,983 | 16,181 |
| Income / (loss) for the period | $(180,245) | $65,768 |
Non-GAAP Measure
For the three months ended June 30, 2010, we are disclosing Adjusted EBITDA, a non-GAAP 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-GAAP 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-GAAP measure, may not be comparable to other companies and it is not intended as a substitute for GAAP measures.
Adjusted EBITDA reconciliation
| Three months ended | ||
| June 30, 2010 | June 30, 2009 | |
| Income / (loss) for the period | $(180,245) | $65,768 |
| Add / (deduct) | ||
| Foreign exchange gain (loss) | 15,382 | (40,477) |
| Derivative exchange gain | (7,883) | 55,212 |
| Interest | (516) | 1,446 |
| Stock based compensation | (10,423) | (1,280) |
| Amortization | (7,825) | (12,982) |
| (11,265) | 1,919 | |
| Adjusted EBITDA | $(168,980) | $63,849 |
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. The Vigil Integrated Care Management System™ (Vigil® System) includes the award-winning Vigil Dementia System, a nurse call system, bed monitoring, resident check in, and the latest development the Vigil Wireless call system. The first to supply dementia specific care technology, Vigil facilitates the highest standard of care for cognitive residents while helping dementia residents enjoy a higher quality of life and greater dignity.
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 2009 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.