KELOWNA, BC, May 12, 2016 /CNW/ -(TSX-V: QHR) QHR
Corporation ("QHR" or the "Company"), a leader in the
Healthcare Information Technology sector, has announced financial
results for its first quarter of 2016.
Q1 2016 revenue increased 15% year-over-year to a record
$7.8 million, up from $6.8 million in Q1 2015. The Company also
reported a 23% increase in recurring revenue run rate(1)
to $27.4 million at the end of Q1
2016 compared to $22.3 million at the
end of Q1 2015.
Other Selected Financial Information (continuing
operations):
|
|
|
|
|
Q1/16 compared to
Q4/15 (millions)
|
|
Q1 2016
|
Q4 2015
|
$ Change
|
% Change
|
Revenue
|
7.828
|
7.684
|
0.144
|
2%
|
Recurring Revenue Run
Rate(1)
|
27.4
|
26.4
|
1.0
|
4%
|
EBITDA(1)
|
1.086
|
0.965
|
0.121
|
12%
|
ADJUSTED
EBITDA(1)
|
1.196
|
1.033
|
0.162
|
16%
|
Net Earnings
(Loss)
|
0.156
|
0.318
|
-0.163
|
-51%
|
Cash
|
11.428
|
9.375
|
2.053
|
22%
|
Days Sales
Outstanding
|
23 Days
|
38 Days
|
15 Days
|
39%
|
|
|
|
|
|
Q1/16 compared to
Q1/15 (millions)
|
|
Q1 2016
|
Q1 2015
|
$ Change
|
% Change
|
Revenue
|
7.828
|
6.819
|
1.009
|
15%
|
Recurring Revenue Run
Rate(1)
|
27.4
|
22.3
|
5.1
|
23%
|
EBITDA(1)
|
1.086
|
0.222
|
0.864
|
389%
|
ADJUSTED
EBITDA(1)
|
1.196
|
1.113
|
0.082
|
7%
|
Net Earnings
(Loss)
|
0.156
|
-0.377
|
0.533
|
141%
|
Cash
|
11.428
|
9.920
|
1.508
|
15%
|
Days Sales
Outstanding
|
23 Days
|
46 Days
|
23 Days
|
50%
|
QHR continues to focus on the Electronic Medical Records
("EMR") market in Canada,
growing sales organically and pursuing complementary acquisitions
and partnerships in an effort to expand its leadership
position. Mike Checkley, the
Company's President and CEO, was pleased to observe that "this
first quarter was another strong one, with good sales volume and
improvement in operating efficiencies. We are getting better
each quarter, strengthening our position as the leading EMR in
Canada."
Jerry Diener, Vice President and
CFO of QHR Corporation, said that "delivering an adjusted EBITDA
margin of over 15% was an important milestone for us. In
addition, this is the 5th consecutive quarter in which
we have seen year-over-year growth in recurring revenue of 20% or
more, while Days Sales Outstanding also improved significantly
year-over-year to 23 days."
Revenue
Record revenue of $7.83 million for
Q1 2016, compared to $6.82 million
for Q1 2015, was largely driven by continued organic growth of the
Accuro™ EMR product.
Net Earnings (Loss)
Net earnings for continuing operations during Q1 2016 were
$155,507, compared to a loss of
$377,110 for Q1 2015.
Cash Flow
In Q1 2016, cash flow generated from operating activities was
$2.3 million, compared to cash
outflow for Q1 2015 of $2.2 million.
The significant improvement seen in the quarter was driven
primarily by reduction in accounts receivable.
At March 31, 2016, the Company had
cash in the amount of $11.43 million
and trade and other receivables of $1.95
million. The Company is not using any of its operating
line and has no outstanding debt.
(1) Recurring revenue run rate, EBITDA and
Adjusted EBIDTA are measures used by management in evaluating
financial performance. Please refer to the cautionary
statements under the heading "Non-IFRS Financial Measures",
below.
Full financial statements together with Management's Discussion
and Analysis are available on SEDAR.
About QHR Corporation
QHR is a leader in Healthcare Technology, empowering providers
and connecting patients. With a 12-year track record offering
what is now the single leading Electronic Medical Records platform
in Canada, QHR has a suite of
complementary offerings that empower health professionals and drive
the Company's growth. The Company's technologies and services
enable secure medical records management for clinical environments,
empowering health providers with tools for virtual care, including
secure video and messaging, as well as tools for clinic management
including scheduling, billing, and patient management. Health
providers choose QHR to drive efficiencies within their practice
and improve the quality of care delivered to patients.
Non-IFRS Financial Measures
(1)The numbers reflected here are from the
unaudited condensed interim consolidated financial statements, for
the period ended March 31, 2016,
including comparatives, are expressed in Canadian dollars and have
been prepared in accordance with International Accounting Standards
("IAS") 34 "Interim Financial Reporting". These financial
statements do not include all of the information required in annual
financial statements in accordance with International Financial
Reporting Standards ("IFRS"). QHR also discloses and discusses
certain non-IFRS financial measures, including Recurring Revenue
Run-Rate, EBITDA and Adjusted EBITDA. QHR has
presented these non-IFRS measures because Management believes they
are relevant measures in evaluating QHR's performance.
EBITDA is defined as earnings before income tax expense,
financing costs, depreciation, amortization and stock-based
compensation. Adjusted EBITDA is defined as EBITDA adjusted with
acquisition, transition and integration costs and other expenses
that do not impact core operating performance.
Management believes that EBITDA and Adjusted EBITDA provide
important measures of the Company's operating performance because
they allow management, investors and others to evaluate and compare
the Company's core operating results, including its return on
capital and operating efficiencies, from period to period by
removing the impact of its capital structure (interest expense),
asset base (depreciation and amortization), tax consequences, other
non-core operating items (acquisition costs) and other non-free
cash items. Both EBITDA and Adjusted EBITDA do not have any
standardized meaning prescribed by IFRS, other companies may
calculate these non-IFRS measures differently, and therefore our
EBITDA and Adjusted EBITDA may not be comparable to a similar
titled measure by other companies. Accordingly, investors are
cautioned not to place undue reliance on them and are also urged to
read all accounting disclosures presented in the unaudited
condensed interim consolidated financial statements and
accompanying notes for the period ended March 31, 2016.
Recurring Revenue Run Rate is the annualized recurring
revenue of a company if you were to extrapolate the revenue for the
current quarter over a period of one year.
Conference Call - The Company's executives will host a
conference call at 11:00 AM EDT
(8:00 AM PDT) Thursday, May 12, 2016, to discuss the Company's
Q1 2016 financial results. To join the conference call, please dial
Toll Free 1-888-390-0605, Conference ID# 74335110
On behalf of the Board of Directors
Mike Checkley, President &
CEO
Legal Notice Regarding Forward Looking Statements
This news release may contain "forward looking statements"
within the meaning of applicable Canadian securities legislation.
These statements are subject to risks that may cause the actual
results to be materially different in future periods from those
expressed or implied by such forward looking statement.
Forward-looking statements in this news release include those
concerning the Company's belief that it is getting better every
quarter, strengthening its position as the leading EMR provider in
Canada, and that it can continue
to expand its leadership position through organic sales growth and
complementary acquisitions and partnerships. Risks that may
prevent or delay the forward looking statements from coming to
fruition include the possibility that the Company may not offer
products that are acceptable to industry regulators or customers;
competition, the availability of capital, changing regulatory
requirements, the Company's ability to attract and retain key
personnel, product obsolescence, work flow and market factors that
could increase costs more than expected. QHR is a technology
business development enterprise where investment and product
enhancements must be carefully managed to achieve long-term revenue
growth and profitability. It is the Company's policy not to update
forward looking statements except to the extent required under
applicable securities laws. Further information on the Company is
available at www.sedar.com or at the Company's website,
www.QHRtechnologies.com.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE QHR Corporation