Reports First Quarter 2009 Results
posted on Feb 17, 2009 12:31PM
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HIGHLY ACCRETIVE $20,000,000 ACQUISITION
|February 17, 2009|
Healthscreen Reports First Quarter 2009 Results
Posts EBITDA-positive quarter
|TORONTO, ONTARIO--(Marketwire - Feb. 17, 2009) - Healthscreen Solutions Inc. (TSX VENTURE:MDU) -
- Quarterly revenue grows 67% to $3,059,383 from $1,830,538 for the same quarter of prior year.
- Quarterly Gross Profit Margin improves to 82% from 62% last year.
- EBITDA(i) increases to $37,654, compared to losses of $419,602 and $268,488 in First Quarter 2008, and Fourth Quarter 2008 respectively.
- Net Loss, from continuing operations, is $590,110 compared to $768,432 in comparable period in 2008, and $742,346 in previous quarter.
Healthscreen Solutions Inc. (TSX VENTURE:MDU), Canada's premier provider of physician practice enhancement services and electronic medical record (EMR) software, today announced its first quarter of fiscal 2009 results for the period ending December 31, 2008.
"I am pleased to report the first period of EBITDA-profitability for the company since the Medical Telecom acquisition," said Justin Belobaba, president and CEO of Healthscreen. "This important achievement, accomplished through a focus on cost management and greater economies of scale, signifies the first step towards achieving profitability."
Revenue for the quarter ended December 31, 2008 was $3,059,383, as compared to $1,830,538 in the quarter ended December 31, 2007, representing an increase of $1,228,845, or 67%. The first quarter of 2008 was the first full quarter of the consolidated Physician Services and Software business units. Revenue was flat when compared to the immediately preceding period when revenue was $3,060,274 as a result of a seasonal dip in Physician Services revenue being offset by an increase in Software Revenue, due in part to a change in business practice which allowed the company to record the total selling price from new software sales as revenue in the quarter the business closed rather than amortizing over two years. This prospective change resulted in an addition to revenue of $140k for the quarter.
On a segmented basis, Physician Services accounted for $1,807,600, or 59% of total revenue, compared to $819,396, or 45% of revenue, in the comparable quarter last year, and $2,064,115, or 67% in the fourth quarter of 2008. The first quarter of the year traditionally expresses some seasonality for the Physician Services segment, particularly over the holiday season. The Software Products business unit revenue increased from $1,021,142 to $1,251,783, an increase of $230,641 or 24% from the quarter ended December 31, 2007 to the quarter ended December 31, 2008, the result of a strong focus on new system sales, recurring revenue from maintenance fees on existing software installations, and some changes to revenue recognition policies.
Gross profit for the period, which accounts for costs of hardware, mailing costs, and other direct costs associated with the offering of the Company's software and services, increased significantly from 62% of revenue in Q1 08, and 77% in Q4 08 to 82% in Q1 09. The increase in gross profit is due to cost-cutting measures and process improvement.
Compared to the first quarter of 2008, SG&A expenses increased to $1,444,385 from $1,094,488, an increase of $349,897 or 32%. Expressed as a percentage of revenue, however, SG&A decreased from 60% of revenue to 47%. Operating expenses grew from $455,343 in the quarter ended December 31, 2007 to $1,041,906 in the quarter ended December 31, 2008, an increase of $586,563 or 129%. This growth in expense was largely the result of an increase in the quantity and qualifications of operating staff headcount to support the current and anticipated growth in demand for the fulfillment of Physician Services and management for the Company. Expressed as a percentage of revenue, operating expenses increased to 34% from 25%.
EBITDA for the period increased to $37,654 from a loss of $419,602 in Q108, and a loss of $268,488 in Q409. Net loss was $592,690, or $0.009 per share compared to the result posted in the first quarter of 2008, $888,795 or $0.015 per share.
The increase in cash from $1,932,459 at Q1 2008 to $2,410,342 at Q1 2009 was primarily the result of financing activity. The Company completed a private placement of 5,000,000 common shares, raising $850,000 in gross proceeds, which closed on December 19, 2008. The increase in cash of $257,290 during the quarter ended December 31, 2008 was primarily the result of the latter financing. In addition, subsequent to quarter end, 1,403,514 common shares were issued to the former shareholders of Regent Healthcare Systems as part of Healthscreen's acquisition of Regent, which closed on July 4, 2008. The number of issued shares of the Corporation is now 74,518,525.
Complete financial statements and the Management Discussion and Analysis and Financial Statements for the first quarter of 2009 are available on the Company's website at www.healthscreen.com and www.sedar.com.
Healthscreen will host a conference call on Wednesday February 18, 2009 at 10:30 AM EST. Mr. Justin Belobaba, President and CEO, and Mr. Ken Killin, CFO will review the quarter-end results and respond to questions during the call. Investors and analysts are invited to call the conference line: 416-915-9040 or 1-866-261-3038 at least 5 minutes prior to the start of the call. For those unable to participate in the live conference, the event will be archived and available for replay on the Company's website or until February 27 at 11:59 pm by dialing 416-915-1035 or 1-866-245-6755, and entering passcode 954175.
About Healthscreen Solutions
Healthscreen Solutions (www.healthscreen.com) provides a comprehensive suite of practice enhancement products and services to increase physician productivity and revenue while reducing costs and improving patient care. The Company's portfolio includes billing and scheduling software, electronic medical records software, CallerMD which assists physicians in managing a range of uninsured medical services, PrevCareMD which helps physicians earn supplemental income by achieving government-set preventive care targets, and HealthAlert which allows physicians to help their patients in managing complex healthcare issues. Healthscreen's and its partners' services and software are used by over 8,000 full-time physicians who are responsible for the health care of more than seven million Canadian patients.