Software Revenue continues growth while nine-month
Adjusted EBITDA and net income surpass full-year 2012
results
MARKHAM, ON,
March 1, 2013 /CNW/ - Nightingale
Informatix Corporation ("Nightingale" or the "Company") (TSX-V:
NGH), an application service provider (ASP) of electronic medical
record (EMR) software and related services, announces its financial
results for the third quarter ("Q3 F2013") and nine months ended
("YTD F2013") December 31, 2012.
Q3 Fiscal 2013 Financial and Operational
Summary
- Revenue was $5.1 million, flat
compared to Q3 F2012.
-
- Total software revenue (EMR and Practice Management) was
$5.0 million, up 7% from $4.7 million in Q3 F2012.
- A decrease of $0.3 million
related to the closure of the Company's low-margin revenue cycle
management business offset this increase in revenue.
- Gross profit was $4.3 million, or
85% of revenue, compared to $4.4
million, or 86% of revenue, in Q3 F2012.
- Operating Expenses, excluding stock based compensation,
depreciation and amortization, were $3.5
million, compared to $4.0
million in Q3 F2012.
- Adjusted EBITDA1 was $0.8
million, or 16% of revenue, down from $0.9 million, or 18% of revenue, in Q3
F2012.
- Spending on capitalized development projects totaled
$1.0 million compared to $0.4 million in Q3 F2012.
- Net income was $0.2 million
compared to a net loss of $0.2
million in Q3 F2012.
- Cash used in operations was $0.6
million compared to cash provided by operations of
$0.3 million in Q3 F2012.
- Signed an Enterprise software three year agreement with MCI
Medical Clinics Inc., a subsidiary of Altima HealthCare Inc., one
of Canada's largest integrated
healthcare providers.
Fiscal 2013 YTD Financial Summary
- Revenue was $15.7 million, up 24%
compared to $12.7 million for the
same period in F2012, primarily reflecting an increase in revenue
from the Company's software business.
-
- Total software revenue was $15.5
million, up 36% from $11.4
million in for the same period in F2012.
- A decrease of $1.1 million
related to the closure of the Company's low-margin revenue cycle
management business offset this increase in revenue.
- Gross profit was $13.8 million,
or 88% of revenue, compared to $10.5
million, or 83% of revenue, for the same period in
F2012.
- Operating Expenses, excluding stock based compensation,
depreciation and amortization were $11.2
million compared to $10.0
million for the same period in F2012.
- Adjusted EBITDA1 was $2.7
million, or 17% of revenue, up from $1.0 million, or 8% of revenue, for the same
period in F2012.
- Spending on capitalized development projects totaled
$2.7 million compared to $1.5 million for the same period in F2012.
- Net income was $1.1 million
compared to a net loss of $0.9
million for the same period in F2012.
- Cash used in operations was $0.9
million compared to cash generated by operations of
$0.6 million for the same period in
F2012.
"We recorded our 16th consecutive
quarter of positive EBITDA, and we delivered continued
profitability," said Sam Chebib,
President and CEO of Nightingale. "Operationally, Q3 was a
testament to our ability to further strengthen our presence in the
enterprise EMR market, both in terms of sales and implementation.
We delivered on key deployments, such as our major AOHC EMR
contract, and added new clients. We also secured our win with MCI
Clinics in the quarter and will recognize additional revenues
related to the MCI win over the next 12 months. We also neared
completion of market launch of our next-generation EMR platform,
neXia. We anticipate roll-out to the US market in the next quarter,
with Canada to follow in the fall.
We believe our new EMR platform has the potential to be a key
growth catalyst in fiscal 2014."
Fiscal 2013 Third Quarter and Nine Months
Financial Review
The Company's results are prepared in accordance with International
Financial Reporting Standards (IFRS) and in Canadian dollars unless
otherwise stated.
Revenue for Q3 F2013 was $5.1 million, flat compared to Q3 F2012. The
Company's software revenue increased to $5.0
million in Q3 F2013 from $4.7
million in Q3 F2012, reflecting EMR revenue growth and the
acquisition of the Medrium practice management business late in Q3
F2012. YTD F2013 revenue was $15.7
million, up $3.0 million, or
24%, from $12.7 million for the same
period in F2012.
Recurring revenue2 for Q3 F2013 was
$2.6 million (52% of revenue), an
increase of $0.2 million, or 6%, from
$2.5 million (49% of revenue) in Q3
F2012, YTD F2013 recurring revenue was $8.0
million, an increase of $0.7
million, or 9%, from $7.3
million in YTD F2012.
Non-recurring revenue2 for Q3 F2013
was $2.5 million, a decrease of
$0.1 million, or 6%, from
$2.6 million for Q3 F2012. YTD F2013
non-recurring revenue was $7.7
million, an increase of $2.3
million, or 43%, from $5.4
million for the same period in F2012.
For Q3 F2013, gross margin was 85% ($4.3 million gross profit) compared to 86%
($4.4 million gross profit) for Q3
F2012. Q3 F2013 gross margin was negatively impacted compared
to the previous quarter due to the impact of a short-term
arrangement with a transaction-based customer (where the
transaction-based revenues are lower margin revenues). YTD F2013
gross margin was 88% ($13.8 million
gross profit) compared to 83% ($10.5
million gross profit) for the same period in F2012. The YTD
increase was predominantly a result of the Company's shift away
from lower margin healthcare services to higher margin software
sales.
Q3 F2013 operating expenses excluding charges
for stock based compensation, depreciation and amortization
decreased 11% to $3.5 million (69% of
revenue) compared to operating expenses of $4.0 million (78% of revenue) for Q3 F2012, which
included $0.5 million in expenses
related to the Company's acquisition of the Medrium assets. YTD
F2013 operating expenses excluding charges for stock based
compensation, depreciation and amortization increased $1.2 million, or 12%, to $11.2 million compared to operating expense of
$10.0 million for the same period in
F2012. The year-over-year increase was primarily due to an increase
in expenses associated with maintaining the Company's current
platform as well as an increase in technology and infrastructure
costs including costs associated with the Medrium business, which
was acquired in December 2011.
For Q3 F2013, Adjusted EBITDA was $0.8 million (16% of revenue), compared to
$0.9 million (18% of revenue) in Q3
F2012. YTD F2013 Adjusted EBITDA was $2.7
million (17% of revenue), compared to $1.0 million (8% of revenue) for the same period
in F2012.
For Q3 F2013, net income was $0.2 million compared to a net loss of
$0.2 million for Q3 F2012. YTD net
income was $1.1 million compared to a
net loss of $0.9 million for the same
period in F2012.
Cash and cash equivalents were $1.1 million at December
31, 2012, down from $2.1
million at March 31, 2012,
primarily as a result of the Company's increased investments in its
long-term strategic growth initiatives.
At December 31,
2012, total common shares issued and outstanding were
76,310,915.
The financial statements and MD&A will be
available at www.nightingalemd.com and filed on www.sedar.com on
March 1, 2013. This press
release should be read in conjunction with Nightingale's
Consolidated Financial Statements and the accompanying Management
Discussion and Analysis for the quarter and nine months ended
December 31, 2012.
Notice of Conference Call
Nightingale will host a conference call on Friday, March 1, 2013, at 8:30 a.m. Eastern Standard Time. To access the
conference call by telephone, dial (888) 231-8191 (or (647)
427-7450 for international). Please connect approximately fifteen
minutes prior to the call, and reference conference ID 17041399
prior to the beginning of the call to ensure participation. The
conference call will be archived for replay until Friday, March 8, 2013. To access the archived
conference call, dial 416-849-0833 or 1-855-859-2056 and enter
reference 17041399#. To listen to the conference call replay on the
internet please visit the Nightingale website shortly after the
call at www.nightingalemd.com.
Non-IFRS Financial Measures
The Company internally measures its performance and results of
initiatives through a number of measures that are not recognized
under IFRS and may not be comparable to similar measures used by
other companies.
1. Adjusted EBITDA
Adjusted EBITDA is a non-IFRS measure that
management believes is a useful measurement to evaluate the
performance of the Company. Investors should be cautioned, however,
that Adjusted EBITDA should not be construed as an alternative to
net earnings as determined in accordance with IFRS. The Company's
method of calculating Adjusted EBITDA may differ from the methods
used by other companies and, accordingly, it may not be comparable
to similarly titled measures used by other companies.
Adjusted EBITDA is defined as earnings before other loss
(income), interest, income taxes, depreciation, amortization,
stock-based compensation, and business acquisition, integration and
other costs.
Management believes it is useful to exclude these items as they are
either non-cash expenses, items that cannot be influenced by
management in the short term, or items that do not impact core
operating performance, and Management uses this information
internally for forecasting and budgeting purposes.
The following provides a reconciliation of Adjusted EBITDA to Loss
and Comprehensive Loss:
|
|
|
|
|
|
|
|
|
|
Definition |
|
|
Three Months
Ended
December 31,
2012 |
|
Three Months
Ended
December 31,
2011 |
|
Nine Months
Ended
December 31,
2012 |
|
Nine Months
Ended
December 31,
2011 |
|
|
|
|
|
|
|
|
|
|
Income (Loss) and Comprehensive Income (Loss) |
|
$ |
226,605 |
$ |
(154,637) |
$ |
1,099,896 |
$ |
(932,939) |
|
|
|
|
|
|
|
|
|
|
Adjustments for: |
|
|
|
|
|
|
|
|
|
Current Tax Expense (Recovery) |
|
$
|
1,621 |
$
|
12,212 |
$ |
(70,029) |
$ |
6,482 |
Other Loss (Income) |
|
|
29,943 |
|
8,153 |
|
5,239 |
|
(4,554) |
Interest |
|
|
128,616 |
|
150,130 |
|
305,519 |
|
358,262 |
Depreciation and Amortization |
|
|
414,333 |
|
376,816 |
|
1,185,228 |
|
1,008,356 |
Stock-Based Compensation |
|
|
27,855 |
|
32,777 |
|
129,658 |
|
95,989 |
Acquisition, Integration and Other |
|
|
- |
|
491,258 |
|
49,971 |
|
512,889 |
Adjusted EBITDA |
|
$ |
827,973 |
$ |
916,709 |
$ |
2,705,482 |
$ |
1,044,485 |
2. Recurring and Non-Recurring Revenue
The Company has included recurring revenue and
non-recurring revenue measurements since it believes that this
information is useful to investors to evaluate its performance.
Investors should be cautioned, however, that recurring revenue and
non-recurring revenue should not be construed as an alternative to
revenue as determined in accordance with IFRS. Recurring
Revenue is comprised of utilization fees, hosting, support and
maintenance revenue, data management and transcription services,
billing and financial management services and transactional
fees. Non-Recurring Revenue is comprised of revenues
generated from sales of perpetual software and systems licenses and
related training, data conversion and installation services.
The following provides a reconciliation of
Recurring Revenue and Non-Recurring Revenue to Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months |
|
|
Three Months |
|
|
Nine Months |
|
|
Nine Months |
|
|
Ended |
|
|
Ended |
|
|
Ended |
|
|
Ended |
Definition |
|
|
December 31, 2012 |
|
|
December 31, 2011 |
|
|
December 31, 2012 |
|
|
December 31, 2011 |
Non-Recurring Revenue |
|
$ |
2,470,832 |
|
$ |
2,620,072 |
|
$ |
7,730,625 |
|
$ |
5,401,754 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Recurring Revenue |
|
|
2,625,335 |
|
|
2,472,624 |
|
|
7,994,942 |
|
|
7,302,873 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
5,096,167 |
|
$ |
5,092,696 |
|
$ |
15,725,567 |
|
$ |
12,704,627 |
About Nightingale
Nightingale is one of the fastest growing health care service and
software companies in North
America and is recognized as an industry leader in Web-based
clinician and community based electronic medical records (EMR)
serving the needs of small primary care practices, multi-physician
outpatient clinics, and large scale regional health organizations
and networks. Coupled with integrated practice management,
transcription and revenue cycle management, Nightingale's
comprehensive service offering allows customers to enhance patient
care, increase revenue opportunities and optimize operations.
Nightingale is continuously innovating and enhancing its services
to meet the needs of its growing and diverse customer base.
Nightingale - Healthcare connected. www.nightingalemd.com
Forward Looking Statement
This press release contains "forward-looking statements"
respecting the issuance and cancellation of securities of the
Company within the meaning of applicable Canadian securities
legislation. Generally, forward-looking statements can be
identified by the use of forward- looking terminology such as
"plans", "expects" or "does not expect", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates" or
"does not anticipate", or "believes", or variations of such words
and phrases or state that certain actions, events or results "may"
,"could", "would", "might", "occur" or "be achieved".
Forward-looking statements are subject to known and unknown risks,
uncertainties and other factors that may cause the actual results,
level of activity, performance or achievements of Nightingale to be
materially different from those expressed or implied by such
forward-looking statements, including but not limited to: risks
related to the speculative nature of the medical software industry,
which is affected by numerous factors beyond Nightingale's control;
the ability of Nightingale to successfully secure customer
contracts and the timing of securing such contracts; the ability of
Nightingale to complete and successfully integrate its acquisitions
on an accretive basis, Nightingale's access to debt and capital
facilities, including compliance with current debt arrangements;
the existence of present and possible future government regulation;
the significant competition that exists in the medical software
industry; the early stage of Nightingale's business, and risks
associated with early stage companies, including uncertainty of
revenues, markets and profitability and the need to raise
additional funding. All material assumptions used in making
forward-looking statements are based on management's knowledge of
current business conditions and expectations of future business
conditions and trends. Certain material factors or assumptions
applied by management in making forward-looking statements, include
without limitation, factors and assumptions regarding future trends
in healthcare spending, economic conditions affecting Nightingale
and North American economies; Nightingale's ability to continue to
fund its business, rates of customer defaults, relationships with,
and payments to lenders, as well as Nightingale's operating cost
structure.
Although Nightingale has attempted to
identify important factors that could cause actual results to
differ materially from those contained in forward-looking
statements, there may be other factors that cause results not to be
as anticipated, estimated or intended. There can be no assurance
that such statements will prove to be accurate, as actual results
and future events could differ materially from those anticipated in
such statements. Accordingly, readers should not place undue
reliance on forward-looking statements. Nightingale does not
undertake to update any forward-looking statements that are
incorporated by reference herein, except in accordance with
applicable securities laws. Further information on Nightingale
Informatix Corporation is available at
www.sedar.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.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS AND
COMPREHENSIVE INCOME AND LOSS
FOR THE THREE AND NINE MONTHS ENDED DECEMBER 31, 2012
Unaudited (Canadian Dollars)
|
|
Three Months
Ended |
|
|
Three Months
Ended |
|
|
|
Nine Months
Ended |
|
|
Nine Months
Ended |
|
|
December
31,
2012 |
|
December
31,
2011 |
|
December
31,
2012 |
|
December
31,
2011 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
$ |
5,096,167 |
|
$ |
5,092,696 |
|
|
$ |
15,725,567 |
|
$ |
12,704,627 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales |
|
760,078 |
|
|
708,236 |
|
|
|
1,879,197 |
|
|
2,184,627 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
4,336,089 |
|
|
4,384,236 |
|
|
|
13,846,370 |
|
|
10,520,618 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
General and administration |
|
875,968 |
|
|
967,856 |
|
|
|
2,594,069 |
|
|
2,480,839 |
Sales and marketing |
|
791,783 |
|
|
797,378 |
|
|
|
2,635,919 |
|
|
2,314,624 |
Research and development |
|
1,227,111 |
|
|
1,025,006 |
|
|
|
4,113,542 |
|
|
2,655,974 |
Client services |
|
1,054,442 |
|
|
1,087,104 |
|
|
|
3,112,244 |
|
|
3,129,041 |
Business acquisition, integration |
|
|
|
|
|
|
|
|
|
|
|
|
and other |
|
- |
|
|
491,258 |
|
|
|
49,971 |
|
|
512,889 |
|
|
3,949,304 |
|
|
4,368,602 |
|
|
|
12,505,745 |
|
|
11,093,367 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss) |
|
386,785 |
|
|
15,858 |
|
|
|
1,340,625 |
|
|
(572,749) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest |
|
128,616 |
|
|
150,130 |
|
|
|
305,519 |
|
|
358,262 |
Foreign currency gain |
|
29,943 |
|
|
8,153 |
|
|
|
5,239 |
|
|
(4,554) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before tax |
|
228,226 |
|
|
(142,425) |
|
|
|
1,029,867 |
|
|
(926,457) |
Current tax expense (recovery) |
|
1,621 |
|
|
12,212 |
|
|
|
(70,029) |
|
|
6,482 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income
(loss) |
$ |
226,605 |
|
$ |
(154,637) |
|
|
$ |
1,099,896 |
|
$ |
(932,939) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) and
comprehensive income
(loss) per common share |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.00 |
|
$ |
(0.00) |
|
|
$ |
0.01 |
|
$ |
(0.01) |
|
Diluted |
$ |
0.00 |
|
$ |
(0.00) |
|
|
$ |
0.02 |
|
$ |
(0.01) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Common
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
76,310,915 |
|
|
76,310,915 |
|
|
|
76,310,915 |
|
|
76,310,915 |
|
Diluted |
|
90,083,199 |
|
|
76,310,915 |
|
|
|
90,091,590 |
|
|
76,310,915 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED BALANCE SHEET
AS AT DECEMBER 31, 2012
Unaudited (Canadian Dollars)
|
|
|
|
December 31, 2012 |
|
|
|
March 31, 2012 |
|
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
$ |
1,054,560 |
|
|
$ |
3,199,058 |
Accounts receivable |
|
|
|
3,598,420 |
|
|
|
2,267,854 |
Other receivables |
|
|
|
79,684 |
|
|
|
103,513 |
Prepaid expenses |
|
|
|
436,935 |
|
|
|
581,593 |
|
|
|
|
5,169,599 |
|
|
|
6,152,018 |
|
|
|
|
|
|
|
|
|
Long-term assets |
|
|
|
|
|
|
|
|
Other assets |
|
|
|
588,511 |
|
|
|
- |
Property and equipment |
|
|
|
932,948 |
|
|
|
450,989 |
Intangible assets |
|
|
|
7,575,804 |
|
|
|
5,808,744 |
Goodwill |
|
|
|
4,792,399 |
|
|
|
4,792,399 |
|
|
|
|
13,889,662 |
|
|
|
11,052,132 |
|
|
|
|
|
|
|
|
|
Total assets |
|
|
$ |
19,059,261 |
|
|
$ |
17,204,150 |
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
Line of credit |
|
|
$ |
799,000 |
|
|
$ |
670,000 |
Accounts payable and accrued liabilities |
|
|
|
3,105,342 |
|
|
|
3,351,187 |
Current portion of deferred revenue |
|
|
|
3,901,763 |
|
|
|
4,689,175 |
Current portion of finance lease obligations |
|
|
|
64,776 |
|
|
|
122,710 |
Current portion of term loan |
|
|
|
870,538 |
|
|
|
872,813 |
Current portion of convertible debenture |
|
|
|
841,000 |
|
|
|
- |
|
|
|
|
9,582,419 |
|
|
|
9,705,885 |
|
|
|
|
|
|
|
|
|
Long term liabilities |
|
|
|
|
|
|
|
|
Term loan |
|
|
|
1,615,027 |
|
|
|
2,287,608 |
Convertible debentures |
|
|
|
3,363,691 |
|
|
|
1,802,256 |
Deferred revenue |
|
|
|
2,011,634 |
|
|
|
2,619,448 |
Finance lease obligations |
|
|
|
44,777 |
|
|
|
37,345 |
Non-current portion of landlord inducement |
|
|
|
140,693 |
|
|
|
- |
Income taxes payable |
|
|
|
685,131 |
|
|
|
686,921 |
|
|
|
|
7,860,953 |
|
|
|
7,433,578 |
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
|
17,443,372 |
|
|
|
17,139,463 |
|
|
|
|
|
|
|
|
|
SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
Capital stock |
|
|
|
29,629,683 |
|
|
|
29,629,683 |
Contributed surplus |
|
|
|
5,554,884 |
|
|
|
4,811,456 |
Equity portion of convertible debentures |
|
|
|
743,138 |
|
|
|
333,808 |
Warrants |
|
|
|
- |
|
|
|
701,452 |
Deficit |
|
|
|
(34,311,816) |
|
|
|
(35,411,712) |
|
|
|
|
1,615,889 |
|
|
|
64,687 |
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders'
equity |
|
|
$ |
19,059,261 |
|
|
$ |
17,204,150 |
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE THREE AND NINE MONTHS ENDED DECEMBER 31, 2012
Unaudited (Canadian Dollars)
|
|
Three months |
|
|
Three months |
|
Nine months |
|
|
Nine months |
|
|
Ended |
|
|
Ended |
|
Ended |
|
|
Ended |
|
|
Dec 31, 2012 |
|
|
Dec 31, 2011 |
|
Dec 31, 2012 |
|
|
Dec 31, 2011 |
|
|
|
|
|
|
|
|
|
|
|
Cash flow from operating
activities |
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) from operations |
$ |
226,605 |
|
$ |
(154,637) |
$ |
1,099,896 |
|
$ |
(932,939) |
|
|
|
|
|
|
|
|
|
|
|
Adjustments for: |
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
413,330 |
|
|
376,816 |
|
1,185,225 |
|
|
1,008,358 |
|
Charge to bad debt expense |
|
2,474 |
|
|
28,038 |
|
23,115 |
|
|
28,038 |
|
Amortization of transaction costs related to debt
financing |
|
12,736 |
|
|
84,177 |
|
42,097 |
|
|
111,074 |
|
Tax recovery on warrant expiry |
|
- |
|
|
- |
|
(87,682) |
|
|
- |
|
Stock based compensation |
|
27,855 |
|
|
32,777 |
|
129,658 |
|
|
95,989 |
|
Unrealized foreign exchange (gain) loss |
|
39,677 |
|
|
(67,282) |
|
(39,498) |
|
|
82,050 |
|
Interest accretion |
|
51,648 |
|
|
23,121 |
|
95,092 |
|
|
69,363 |
|
Net change in non-cash working
capital related to
Operations |
|
(1,385,910) |
|
|
(67,861) |
|
(3,390,640) |
|
|
155,334 |
Cash flows provided by (used in)
operating activities |
|
(611,585) |
|
|
255,149 |
|
(942,737) |
|
|
617,267 |
|
|
|
|
|
|
|
|
|
|
|
Cash flow from investing
activities |
|
|
|
|
|
|
|
|
|
|
Purchase of property and
equipment |
|
(13,858) |
|
|
(124,568) |
|
(708,881) |
|
|
(151,736) |
Capitalized development costs |
|
(962,946) |
|
|
(423,169) |
|
(2,695,796) |
|
|
(1,418,234) |
Acquisition of assets and liabilities
from Medrium |
|
- |
|
|
(1,761,880) |
|
- |
|
|
(1,761,880) |
Cash flows used in investing
activities |
|
(976,804) |
|
|
(2,309,617) |
|
(3,404,677) |
|
|
(3,331,850) |
|
|
|
|
|
|
|
|
|
|
|
Cash flow from financing
activities |
|
|
|
|
|
|
|
|
|
|
Proceeds from line of credit
borrowing |
|
1,098,000 |
|
|
1,350,000 |
|
1,602,000 |
|
|
2,985,000 |
Repayment of line of credit
borrowing |
|
(859,000) |
|
|
(1,175,000) |
|
(1,473,000) |
|
|
(3,085,000) |
Proceeds from convertible debt
financing (net of costs) |
|
- |
|
|
- |
|
2,689,967 |
|
|
- |
Proceeds from landlord inducement |
|
- |
|
|
- |
|
120,000 |
|
|
- |
Proceeds from term loan (net of
costs) |
|
- |
|
|
3,457,520 |
|
- |
|
|
3,457,520 |
Repayment of term loan |
|
(222,709) |
|
|
(1,266,667) |
|
(665,246) |
|
|
(1,666,667) |
Repayment of finance lease
obligations |
|
(27,366) |
|
|
(43,501) |
|
(80,069) |
|
|
(207,193) |
Cash flows provided by (used in)
financing activities |
|
(10,643) |
|
|
2,322,352 |
|
2,194,084 |
|
|
1,483,660 |
|
|
|
|
|
|
|
|
|
|
|
Foreign exchange gains on cash in
foreign currency |
|
3,676 |
|
|
(11,643) |
|
8,832 |
|
|
17,040 |
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash |
|
(1,595,356) |
|
|
260,369 |
|
(2,144,498) |
|
|
615,504 |
Cash and cash equivalents, beginning
of period |
|
2,649,916 |
|
|
2,691,154 |
|
3,199,058 |
|
|
1,798,247 |
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, end of
period |
$ |
1,054,560 |
|
$ |
2,951,523 |
$ |
1,054,560 |
|
$ |
2,951,523 |
|
|
|
|
|
|
|
|
|
|
|
OVERALL PERFORMANCE, RESULTS OF OPERATIONS AND FINANCIAL
CONDITION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q3
Ended |
|
Q4 Ended |
|
Fiscal
Year
Ended |
|
Q1
Ended |
|
Q2
Ended |
|
Q3
Ended |
|
Q4 Ended |
|
Fiscal
Year
Ended |
|
Q1
Ended |
|
Q2
Ended |
|
Q3
Ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In $ 000's
(Except per Share
Amounts) |
Dec 31, 2010 |
|
March
31,
2011 |
|
March
31, 2011 |
|
June 30, 2011 |
|
Sept 30, 2011 |
|
Dec 31, 2011 |
|
March
31,
2012 |
|
March
31,
2012 |
|
June 30, 2012 |
|
Sept 30, 2012 |
|
Dec 31, 2012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recurring Revenue |
$2,661 |
|
$2,452 |
|
$10,679 |
|
$2,463 |
|
$2,367 |
|
$2,473 |
|
$2,889 |
|
$10,192 |
|
$ 2,705 |
|
$ 2,665 |
|
$ 2,625 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Recurring Revenue |
1,744 |
|
1,901 |
|
6,695 |
|
1,342 |
|
1,439 |
|
2,620 |
|
2,486 |
|
7,888 |
|
2,856 |
|
2,403 |
|
2,471 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
4,405 |
|
4,353 |
|
17,374 |
|
3,805 |
|
3,807 |
|
5,093 |
|
5,376 |
|
18,080 |
|
5,561 |
|
5,068 |
|
5,096 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Software business revenue |
3,697 |
|
3,879 |
|
14,780 |
|
3,382 |
|
3,382 |
|
4,679 |
|
5,017 |
|
16,422 |
|
5,480 |
|
4,993 |
|
5,014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit |
3,502 |
|
3,675 |
|
14,047 |
|
3,175 |
|
2,961 |
|
4,384 |
|
4,509 |
|
15,030 |
|
4,940 |
|
4,570 |
|
4,336 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses |
3,686 |
|
3,870 |
|
14,466 |
|
3,500 |
|
3,225 |
|
4,369 |
|
4,804 |
|
15,897 |
|
4,516 |
|
4,040 |
|
3,949 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA (non-IFRS measure) |
340 |
|
384 |
|
1,736 |
|
35 |
|
93 |
|
917 |
|
231 |
|
1,330 |
|
916 |
|
962 |
|
828 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income (Loss) for the Period |
(184) |
|
(195) |
|
(419) |
|
(325) |
|
(263) |
|
16 |
|
(295) |
|
(868) |
|
425 |
|
529 |
|
387 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) and
Comprehensive
Income (Loss) |
(309) |
|
(266) |
|
(989) |
|
(425) |
|
(353) |
|
(155) |
|
(285) |
|
(1,218) |
|
250 |
|
624 |
|
227 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) and
Comprehensive Income (Loss)
per Common Share -
Basic and Diluted |
$(0.00) |
|
$(0.00) |
|
$(0.01) |
|
$(0.00) |
|
$(0.00) |
|
$(0.00) |
|
$(0.01) |
|
$(0.02) |
|
$0.00 |
|
$0.01 |
|
$0.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Avg. # of Common
Shares - Basic |
76,311 |
|
76,311 |
|
75,979 |
|
76,311 |
|
76,311 |
|
76,311 |
|
76,311 |
|
76,311 |
|
76,311 |
|
76,311 |
|
76,311 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Avg. # of Common
Shares - Diluted |
76,311 |
|
76,311 |
|
75,979 |
|
76,311 |
|
76,311 |
|
76,311 |
|
76,311 |
|
76,311 |
|
82,360 |
|
90,086 |
|
90,083 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets |
$15,080 |
|
$16,216 |
|
$16,216 |
|
$15,334 |
|
$15,042 |
|
$17,794 |
|
$17,204 |
|
$17,204 |
|
$17,962 |
|
$19,761 |
|
$19,059 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Long-Term
Liabilities |
$5,337 |
|
$6,115 |
|
$6,115 |
|
$5,819 |
|
$5,972 |
|
$8,102 |
|
$7,434 |
|
$7,434 |
|
$7,244 |
|
$8,421 |
|
$7,861 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Deferred Revenue |
$6,788 |
|
$7,510 |
|
$7,510 |
|
$7,588 |
|
$7,607 |
|
$7,797 |
|
$7,309 |
|
$7,309 |
|
$7,479 |
|
$6,605 |
|
$5,913 |
SOURCE Nightingale Informatix Corporation