VitalHub increases second quarter 2021 revenue to $ 5.8 million

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TORONTO, Aug. 24, 2021 (GLOBE NEWSWIRE) – VitalHub Corp. (the “Company” or “VitalHub”) (TSXV: VHI) announced today that it has filed its interim condensed consolidated financial statements and management’s discussion and analysis for the quarter and six-month period ended June 30, 2021 with Canadian authorities in securities. These documents can be viewed under the Company’s profile at www.sedar.com.

When asked to comment on the results, VitalHub CEO Dan Matlow said:

“With the constraints of COVID-19 as a backdrop, we are very pleased with the Company’s progress over the past 4 quarters. With the acquisition of Alamac Limited, our annual recurring revenue (“ARR”) now exceeds a rate of $ 21 million. Notably, over the past four quarters, the company has added more than $ 3.4 million in ARR organically. This represents a 46% growth in organic annual recurring revenue in addition to the annual recurring revenue of $ 8.8 million purchased through acquisitions. The Company is approaching our target of 20% Adjusted EBITDA, with Adjusted EBITDA of 18% reported in the second quarter of 2021. We continue to work on the integration of our acquired companies in order to generate increased synergies both. view of revenues rather than costs.

The company will host a conference call via Zoom on August 25, 2021 at 9:00 a.m. EST moderated by CEO Dan Matlow and CFO Brian Goffenberg with a question-and-answer session to follow. To register for the conference call, please visit: VitalHub Q2 2021 Conference Call or https://bit.ly/VitalHubQ221.

Second Quarter 2021 Financial Highlights

  • Revenues of $ 5,792,182, an increase of $ 3,043,287 or 111% over the comparative period last year.
  • The gross margin as a percentage of revenue in Q2 2021 was 77% compared to 73% in Q2 2020.
  • ARR (Non-IFRS measure) increased from $ 3,825,678 ($ 501,835 or 3.15% organic and $ 3,323,843 or 20.86% acquisition) to $ 19,757,306, representing sequential growth of 24% in the second quarter of 2021 compared to in the first quarter of 2021.
  • (Net loss) of ($ 523,400) compared to net income of $ 179,467 for the comparative period last year.
  • EBITDA (Non-IFRS measure) of $ 157,114 compared to $ 705,901 for the comparative period of the previous fiscal year.
  • Adjusted EBITDA (Non-IFRS measure) of $ 1,053,686, or 18% of revenues, compared to $ 754,262 or 27% of revenues for the comparative period last year.
  • Cash as of June 30, 2021 was $ 21,043,380 compared to $ 23,391,946 as of December 31, 2020
  • Cash flow from operating activities increased by $ 2,133,665, from $ 24,543 in the second quarter of 2020 to $ 2,158,208 in the second quarter of 2021.
  • Including the Alamac acquisition after the quarter, Vitalhub’s ARR now stands at $ 21,057,306.

Highlights of the second quarter of 2021

  • The Company continues to grow its international presence and cross-sell products with additional licensing agreements won in the second quarter of 2021 as follows:
    • License of the Intouch with Health digital health platform with Coventry University Hospitals and Warwickshire NHS Trust,
    • Large-scale multi-year licensing transaction of Intouch with Health’s Synopsis product with the Hampshire Hospitals NHS Foundation Trust,
    • Vitalhub’s Treat Product Five Year License Agreement to Family Service Toronto,
    • Intouch with Health Patient Flow Solution Multi-Year License Agreement with Wrightington Wigan and Leigh Teaching Hospitals NHS Foundation Trust,
    • Intouch with Health digital health platform multi-year license agreement with University Hospitals Dorset NHS Foundation Trust to support new NHS initiative,
    • Expansion of Transforming Systems’ SHREWD products in the National Health Service’s East of England region.
  • After the quarter, the Company acquired all of the issued and outstanding shares of Alamac Limited (“Alamac”). Alamac is a UK based company providing technology and consulting solutions that help healthcare organizations across the NHS.

Q2 2021 and 2020 results

Three months ended Six months ended
June 30, 2021 % revenues June 30, 2020 % revenues Switch June 30, 2021 % revenues June 30, 2020 % revenues Switch
$ $ % $ $ %
Returned 5,792,182 100% 2,748,895 100% 111% 11,115,255 100% 5,518,895 100% 101%
Cost of sales 1,321,428 23% 741,550 27% (78%) 2,599,527 23% 1 646 357 30% (58%)
Gross profit 4,470,754 77% 2 007 345 73% 123% 8,515,728 77% 3,872,538 70% 120%
Operating Expenses
general and administrative 1,077,532 19% 636 188 23% 69% 2 276 451 20% 1,339,470 24% 70%
Sales and Marketing 917,407 16% 189,296 7% 385% 1,672,037 15% 462,791 8% 261%
Research and development 1,294,271 22% 425,497 15% 204% 2 452 444 22% 1,133,056 21% 116%
Depreciation 41 342 1% 26,675 1% 55% 74 689 1% 53,363 1% 40%
Amortization of user rights 67,193 1% 53,386 2% 26% 130,764 1% 106,846 2% 22%
Stock-based compensation 284,303 5% 41,702 2% 582% 604,080 5% 87,773 2% 588%
Foreign exchange loss (gain) 127,858 2% 2 102 0% 5982% 192 780 2% (99,329) (2%) (294%)
Other income and expenses
Amortization of intangible assets 546,845 9% 443 238 16% 23% 980 816 9% 886,475 16% 11%
Business acquisition, restructuring and integration costs 612,269 11% 6 659 0% 9095% 859,086 8% 255,567 5% 236%
Interest expense and accretion (net of interest income) (7,707) (0%) (16,268) (1%) (53%) (18,294) (0%) 7 970 0% (330%)
Interest expense on rental debts 22,770 0% 19,403 1% 17% 43,381 0% 40 281 1% 8%
Loss on disposal of property, plant and equipment 0 0% 0 0% 0% 2,497 0% 0 0% 100%
Current income taxes 10,071 0% 0 0% 100% 10,071 0% (16,734) (0%) (160%)
Net income (loss) (523,400) (9%) 179,467 7% (392%) (765,074) (7%) (384,991) (7%) 99%
EBITDA (Non-IFRS measure) 157 114 3% 705,901 26% (78%) 456,354 4% 693 210 13% (34%)
Adjusted EBITDA (Non-IFRS measure) 1,053,686 18% 754,262 27% 40% 1,919,519 17% 1,036,550 19% 85%
Annualized recurring revenue (Non-IFRS measure) 19 757 306 7,491,841 164% 19 757 306 7,491,841 164%
Recurring income (Non-IFRS measure) 4,628,927 80% 1 848 889 67% 150% 8,497,284 76% 3,645,783 66% 133%

Additionally, VitalHub is pleased to announce that it has entered into a debt settlement agreement with various individuals for debt settlement of $ 268,994.25 under the earn-out clause under the acquisition of Transforming Systems Ltd. (the “Acquisition”). . Further details on the acquisition are available in the Company’s press release dated August 31, 2020. Under the terms, the Company will issue 88,888 common shares of the Company at a price of $ 3.026 per share.

ABOUT VITALHUB:

Software for health and social service providers designed to simplify user experience and optimize results.

VitalHub provides technology to health and social service providers, including; Hospitals, regional health authorities, mental health, long-term care, home care, community and social services. VitalHub solutions cover the categories of electronic health record (EHR), case management, care coordination, patient flow and operational visibility and DOCit ​​mobile applications.

The Company has a strong two-pronged growth strategy, targeting organic growth opportunities within its product line and pursuing an aggressive merger and acquisition plan. Currently, VitalHub serves over 275 customers in Canada, United States, United Kingdom, Australia, Qatar and Latvia. VitalHub is based in Toronto, Canada, with an offshore development center in Sri Lanka. The Company is listed on the TSX Venture Exchange under the symbol “VHI”.

CAUTION :

This press release includes forward-looking statements regarding the Company and its business, which may include, but are not limited to, statements regarding the appointment of new directors. Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “is expected”, “expects”, “planned”, “is considering”, “is considering”, “is planning”. “,” Believes “,” proposes “or variations (including negative variations) of these words and phrases, or states that certain actions, events or results” could “,” could “,” would “,” could “or “will” be undertaken, occur or be achieved. These statements are based on the current expectations of the management of each entity and are based on assumptions and subject to risks and uncertainties. Although the management of each entity believes that the assumptions underlying these statements are reasonable, they may prove to be inaccurate. The forward-looking events and circumstances described in this press release may not occur on certain specified dates or may not occur at all and could differ materially in ra ison of known and unknown risk factors and uncertainties affecting the companies, including risks regarding the technology industry, failure to obtain regulatory or shareholder approvals, market conditions, economic factors, markets markets in general and the risks associated with growth and competition. Although the Company has attempted to identify material factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or or results differ from those anticipated, estimated or intended. No forward-looking statement can be guaranteed. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and the Company assumes no obligation to publicly update or revise any forward-looking statement, whether whether as a result of new information, future events, or otherwise.

CONTACT INFORMATION

Dan Matlow
Chairman and CEO, Director
(416) 727-9061
[email protected]

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