TORONTO, Aug. 18, 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 second quarter ("Q2") of 2016.
Q2 2016 revenue increased 21% year-over-year to a record
$8.0 million, up from $6.6 million in Q2 2015. The Company also
reported a 25% increase in recurring revenue run rate(1)
to $28.2 million at the end of Q2
2016 compared to $22.6 million at the
end of Q2 2015.
Other Selected
Financial Information (continuing operations):
|
|
Q2/16 compared to
Q2/15 (millions)
|
|
Q2 2016
|
Q2 2015
|
$ Change
|
% Change
|
Revenue
|
8.00
|
6.60
|
1.40
|
21%
|
Recurring Revenue Run
Rate(1)
|
28.27
|
22.6
|
5.7
|
25%
|
EBITDA(1)
|
1.15
|
-0.46
|
1.61
|
N/A
|
ADJUSTED
EBITDA(1)
|
1.29
|
0.62
|
0.67
|
108%
|
Net Earnings
(Loss)
|
0.61
|
-0.96
|
1.57
|
N/A
|
Cash
|
13.27
|
8.94
|
4.33
|
48%
|
Days Sales
Outstanding
|
11 Days
|
47 Days
|
36 Days
|
77%
|
|
|
|
|
|
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
second quarter produced further improvements in our operation,
strong sales and customer retention, and an expanded network of
partners to help us all bring our provider and patient tools
further in to the mainstream of our healthcare system.
Jerry Diener, the Company's Vice
President and CFO, said that "as we continue to focus on both top
line growth and improved efficiencies we are pleased to deliver an
adjusted EBITDA margin of over 16% for the quarter. In
addition, this is the 6th consecutive quarter in which
we have seen year-over-year growth in recurring revenue of 20% or
more, hitting 25% growth this quarter, while Days Sales Outstanding
also improved significantly year-over-year from 47 to 11 days."
Revenue
Record revenue of $8.0 million for Q2
2016, compared to $6.6 million for Q2
2015, was largely driven by continued organic growth of the Accuro™
EMR product.
Net Earnings (Loss)
Net earnings from continuing operations during Q2 2016 were
$611,793, compared to a loss of
$961,152 for Q2 2015.
Cash Flow
In Q2 2016, cash flow generated from operating activities was
$2.0 million, compared to cash
outflow for Q2 2015 of $0.9 million.
The significant improvement seen in the quarter was driven by both
improved profitability and by reduction in accounts receivable.
At June 30, 2016, the Company had
cash in the amount of $13.27 million
and trade and other receivables of $0.99
million. The Company is not using any of its operating
line and has no outstanding debt.
Full financial statements together with Management's Discussion
and Analysis are available on SEDAR.
(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.
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 June 30, 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 June
30, 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, August 18, 2016, to discuss the
Company's Q2 2016 financial results. To join the conference call,
please dial Toll Free 1-888-390-0546, Conference ID#
35747341
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 as well as the risks
disclosed in the Company's periodic disclosure documents filed on
SEDAR. 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