Vigil Health Solutions Inc. (“Vigil”) announces
the results of operations for the quarter ending September 30,
2020.
Developments in the Quarter
- Revenue of $1.37 million compared to $1.23 million in the three
month period ended September 30, 2019.
- Earnings before income taxes were $208 thousand compared to
losses of $168 thousand in the three month period ended September
30, 2019.
- Sales bookings for the quarter were $1.57 million compared to
$1.13 million in the three month period ended September 30,
2019.
- Adjusted EBITDA of $266 thousand compared to negative Adjusted
EBITDA of $136 thousand in the three months ended September 30,
2019.
“As an essential service, it is more important
than ever that senior housing providers are able to deliver the
critical care their residents need. With COVID-19 causing slower
move in rates and higher inventory it is pushing senior housing
occupancy to new lows. For this reason, we do expect to see a
reduction in senior housing construction in the United States.
However, follow on sales including cloud applications, software
maintenance, support and hardware have been increasing. We are
working with our clients to help meet their challenges including,
staffing and resident engagement as well as ongoing budgetary
pressures.
Vigil’s priority continues to be the health and
wellbeing of our staff, our customers, and the seniors they serve.
With this in mind we are investing in online service delivery,
remote commissioning and developing products that will provide long
term value to our customers. I believe that we are positioned well
for the future. Our balance sheet is strong and supported by an
almost $4 million backlog of signed contracts. I am immensely proud
of the work being done by our team, particularly by our field
staff, who work tirelessly to provide the best service in
extraordinary circumstances,” stated Troy Griffiths, President and
CEO of Vigil Health Solutions Inc.
Financial Results
Revenue for the three months ended September 30,
2020 was $1.37 million up 12% from $1.23 million in the three
months ended September 30, 2019. Project revenue, including new
system installations and upgrades, made up 39% of total revenue
compared to 43% in the prior year. The remaining revenue is from
follow on one-off sales to existing customers. These sales include
software maintenance billings and replacement products including
wireless devices and communication equipment. The increase in
revenue reflects an increase in one-off sales.
Sales bookings for the quarter were $1.57
million up 39% compared to $1.13 million in the three months ended
September 30, 2019. There were 13 project bookings with an average
value of $61 thousand compared to 8 project sales with an average
value of $58 thousand in the period ending September 30, 2019.
Sales bookings include projects closed in the quarter and normally
not recognized in revenue until future periods and one-off sales
recognized in revenue in the current period. The increase year over
year reflected the higher number of project sales and an increase
in one-off sales.
At September 30, 2020, Vigil had a backlog of
approximately $3.99 million (including $2.01 million in deposits
and progress billings, recorded as deferred revenue on the balance
sheet) compared to approximately $3.16 million (including $1.06
million in deposits and progress billings, recorded as deferred
revenue on the balance sheet) at September 30, 2019. The Company’s
backlog is the total estimated revenue for contracts which are
signed and have not been completed (and may not have
commenced).
The gross margin percentage for the three months
ended September 30, 2020 was 53% compared to 54% for the three
months ended September 30, 2019.
Operating expenditures for the three months
ended September 30, 2020 were $494 thousand down 42% from $847
thousand for the period ended September 30, 2019. The decrease
reflected the Canada Emergency Wage Subsidy (CEWS) payments,
recorded as a reduction in payroll expense. There were also large
declines in sales and marketing expenses including reduced travel
and promotional expenses due to tradeshow cancelations and other
COVID-19 restrictions.
Earnings before income taxes were $208 thousand
compared to losses of $168 thousand in the three month period ended
September 30, 2019. The earnings reflect increased revenue and
decreased operating expenses including the $93 thousand CEWS
subsidy recorded as a reduction in payroll expense. Net earnings
and comprehensive income were $145 thousand or $0.008 per share
compared to a net loss of $168 thousand, or $0.009 per share for
the three month period ended September 30, 2019.
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 November 30, 2020, or, upon notice to the
Company, entitled security holders may request a copy of financials
in advance.
Summary Financial Information
|
|
|
|
|
|
|
|
Three months ended |
|
Six months ended |
|
|
|
September 30, |
|
September 30, |
|
September 30, |
|
September 30, |
|
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
|
|
|
|
|
Revenue |
$ |
1,372,713 |
|
1,226,889 |
|
2,624,574 |
|
2,549,473 |
|
|
|
|
|
|
|
Cost of sales |
|
645,521 |
|
564,289 |
|
1,227,456 |
|
1,168,259 |
|
|
|
|
|
|
|
Gross
profit |
|
727,192 |
|
662,600 |
|
1,397,118 |
|
1,381,214 |
|
|
|
|
|
|
|
Expenses |
|
493,841 |
|
846,646 |
|
955,691 |
|
1,622,937 |
|
|
|
|
|
|
|
Earnings
(loss) before the following items |
|
233,351 |
|
(184,046 |
) |
441,427 |
|
(241,723 |
) |
|
|
|
|
|
|
Other income
(expense) |
|
(25,638 |
) |
16,125 |
|
(62,099 |
) |
12,191 |
|
|
|
|
|
|
|
Earnings
(loss) before income taxes |
|
207,713 |
|
(167,921 |
) |
379,328 |
|
(229,532 |
) |
|
|
|
|
|
|
Income
taxes |
|
(62,321 |
) |
- |
|
(113,182 |
) |
- |
|
|
|
|
|
|
|
Net earnings (loss) and comprehensive |
|
|
|
|
|
earnings (loss) for the period |
$ |
145,392 |
|
(167,921 |
) |
266,146 |
|
(229,532 |
) |
Non-IFRS Measure
For the three months ended September 30, 2020,
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 excluding amortization of right of use asset for the
lease on the Company’s head office, 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 |
|
Six months ended |
|
|
|
|
Sept 30, |
Sept 30, |
|
Sept 30, |
|
Sept 30, |
|
|
|
|
2020 |
2019 |
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
|
Income for the period |
$ |
145,392 |
(167,921 |
) |
266,146 |
|
(229,532 |
) |
|
|
|
|
|
|
|
|
Add / (deduct) |
|
|
|
|
|
|
Foreign exchange |
|
18,163 |
(11,990 |
) |
61,056 |
|
3,084 |
|
|
Change in fair value of derivative |
|
3,171 |
2,334 |
|
(4,790 |
) |
(436 |
) |
|
Interest |
|
4,304 |
(6,677 |
) |
5,833 |
|
(15,248 |
) |
|
Tax |
|
62,321 |
- |
|
113,182 |
|
- |
|
|
Share based payments |
|
21,434 |
36,253 |
|
34,146 |
|
64,312 |
|
|
Amortization |
|
11,221 |
12,328 |
|
22,456 |
|
24,509 |
|
|
|
|
120,614 |
32,248 |
|
231,883 |
|
76,221 |
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
$ |
266,006 |
(135,673 |
) |
498,029 |
|
(153,311 |
) |
|
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 and incontinence monitoring, resident
check in and the award-winning Vigil Memory Care 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, including the updated risks related to the
COVID-19 pandemic, are discussed in the Risks and Uncertainties
section of our “Management Discussion and Analysis” segment of our
fiscal 2020 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.
We caution readers that the risks described are
not the only ones that could impact the Company. We cannot
accurately predict the full impact that COVID-19 will have on our
business, results of operations, financial condition or the demand
for our services, due in part to the uncertainties relating to the
ultimate geographic spread of the virus, the severity of the
disease, the duration of the outbreak, the steps our customers and
suppliers may take in current circumstances, including slowing or
halting operations, the duration of travel and quarantine
restrictions imposed by governments of affected countries and other
steps that may be taken by such governments to respond to the
pandemic. Additional risks and uncertainties not currently known to
us or that are currently deemed to be immaterial may also have a
material adverse effect on our business, financial condition, or
results of operations.
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.
For
further information please contact: Troy Griffiths, President and
CEO Tel: (250) 383-6900 Fax: (250) 383-6999 Email:
information@vigil.com |
Vigil
Health Solutions Inc. 2102-4464 Markham Street Victoria, BC V8Z 7X8
Website: www.vigil.com |
The TSX Venture Exchange has not reviewed and
does not accept responsibilityfor the adequacy or accuracy of this
release.
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