This company continues to grow very nicely. I've talked many times with management. There is a strong likelihood they will be EBITDA profitable in the next quarter. The systems are all in place so as they continue to grow there bottom line will explode.
Healthscreen Announces Second Quarter 2008 Results
TORONTO, ONTARIO, May 28, 2008 (Marketwire via COMTEX) -- (Marketwire)
Healthscreen Solutions Inc. (TSX VENTURE:MDU)("Healthscreen" or the "Company") -
- Revenues up 15% from Q108 and 402% from same quarter last year
- Gross Profit Margin up to 76% of revenues compared to 63% in Q108
- Adjusted EBITDA(a) loss improved 12%
- Net Loss from continuing operations of $557 thousand
Healthscreen Solutions Inc. ("Healthscreen" or the "Company") the premier supplier of physician practice enhancement services and electronic medical record (EMR) software, to the Canadian market, is pleased to announce its second quarter 2008 results for the period ending March 31, 2008.
"The second quarter marked a period of national expansion, and product development; and we are very excited to report Healthscreen's fourth consecutive quarter of growth since adding Physician Services to our product offering," said Justin Belobaba, President and CEO of Healthscreen. "With the security of a strong treasury, and a unique product offering that enables doctors to enhance their practices, we are extremely well positioned to continue our national expansion strategy, and bring this business to profitability over the next few quarters".
For the second quarter of fiscal year 2008, Healthscreen's consolidated revenues increased to $2.2 million, compared to $439 thousand for the corresponding period ending March 31, 2007, and were up 15% from the first quarter of fiscal year 2008 when revenues were $1.9 million.
Physician Services accounted for $1.295 million or 59% of revenues, compared to nil in the same quarter of 2007, and $868 thousand or 45% in the immediate prior quarter. The Software Products side of the business generated $908 thousand in the quarter, or 41% of revenues, compared to $438 thousand in the second quarter of 2007, and $1.04 million, or 55% in the immediate prior quarter. The quarter-over-quarter decrease in Software Products is directly attributable to a decrease in hardware revenues of $169 thousand.
Relative to the immediate preceding quarter, gross profit for the period, which accounts for costs of hardware and CallerMD direct mailing costs, increased by $468 thousand to $1.68 million, resulting in a gross profit margin of 76% compared to 63% in the previous quarter. This increase in gross profit margin is largely attributable to increased demand for the Healthscreen PrevCareMD service.
Compared to the first quarter of fiscal 2008, SG&A expenses decreased $58 thousand to $1.09 million and operating expenses increased by $374 thousand to $861 thousand. The majority of the increase was related to headcount as the Company invested in the people infrastructure of its Physician Services segment and Software Products segment, and increased rent costs as the Company expanded its operations. Expressed as a percentage of revenues, SG&A declined from 54% in the first quarter of 2008 to 49% in the second quarter of fiscal 2008, and Operating Expenses increased from 26% of revenues to 39%. Direct costs of approximately $146 thousand relating to the HealthAlert operations have been fully recorded in the operating expenses. Though the Company launched HealthAlert (formerly referred to as ReminderMD) this quarter, the revenues from this service have been entirely deferred.
Adjusted EBITDA(a) improved to a loss of $273 thousand compared to a loss of $311 thousand in the first quarter of fiscal 2008, representing a 12% improvement.
Net loss from continuing operations was $543 thousand, or $0.008 cents per share, and net loss was $557 thousand, or $0.008 per share. While this represents a significant decline over the result posted for the comparative 2007 period which showed a net loss from continuing operations of $104 thousand, or $0.005 per share, and a net loss of $167 thousand, or $0.008, the decline was due to acquisition and integration costs such as additional legal expenses and costs associated to increased headcount, and the additional expenses incurred in order to prepare for further growth. Compared to the previous quarter, net loss from continuing operations and net loss actually improved from a loss of $657 thousand, or $0.011 per share, and $777 thousand, or $0.013 per share respectively.
Full financial results for the second quarter of fiscal year 2008 are available on the Company's website at www.healthscreen.com.
Subsequent Events
Subsequent to quarter end, the Company entered into a debt financing agreement with Wellington Financial LP ("Wellington") for gross proceeds of $4.25 million through the issuance of secured debentures, the proceeds of which will be used to fund the Company's acquisition strategy and for general working capital purposes.
Conference Call
Healthscreen will also host a conference call on Thursday May 29, 2008 at 10:30 AM EST. Mr. Justin Belobaba, President and CEO, and Mr. Eugene Bomba, 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. If you are unable to participate during the live conference call, it will be archived and available for replay on the Company's website or until June 6 at 11:59 pm by dialing 416-915-1035 or 1-866-245-6755, and entering passcode 527 549.
Options Granted
Healthscreen has also has granted an aggregate of 1,428,333 stock options to various consultants and employees of the Corporation. 1,095,000 options are exercisable at $0.335 per common share and are exercisable at any time until May 27, 2013, while 333,333 options were granted at $0.30 and are exercisable at any time until May 27, 2011.
(a) Adjusted EBITDA (earnings before interest, income taxes, depreciation and amortization) is a non-GAAP financial measure to view earnings from operations before interest, income taxes, depreciation, amortization, stock-based compensation, other non-operating income and expenses and non-recurring items. Details with respect to non-GAAP measures, including reasons the Company uses such measures, are included in full in the Company's interim MD&A.
About Healthscreen Solutions Inc.
Healthscreen Solutions (www.healthscreen.com) offers a comprehensive suite of practice enhancing products and services designed to increase physician productivity and revenue, while reducing costs and improving patient care. The Company's robust OHIP billing and patient scheduling software is used by over 4,000 full-time physicians and handles more than $1.5 billion in healthcare transactions a year.
Healthscreen's Electronic Medical Record (EMR) software supports digitalization and network connectivity for community specialists and family physicians plus a growing list of research groups. The Company's broader goal of Continuous Practice Enhancement is being further realized with a growing list of services such as CallerMD, which assists doctors in managing a range of uninsured medical services and PrevCareMD which helps doctors earn supplemental income by achieving government-set preventive care targets. |
