Medworxx Solutions Inc. Files Third Quarter 2011 Financial Statements and Management's Discussion and Analysis

TORONTO, Nov. 23, 2011 /CNW/ - Medworxx Solutions Inc. (the "Company")(TSXV: MWX) announced today that it has filed with the Canadian securities authorities its unaudited interim Consolidated Financial Statements, and Management's Discussion and Analysis report for the three and nine month periods ended September 30, 2011. These documents may be viewed under the Company's profile at www.sedar.com.

Highlights of the results include:

  • Revenue for the nine months ended September 30, 2011 was $3,550,306, representing an increase of 12% over revenues of $3,181,949 in the same period last year. The increase is attributable to growth across all areas of the business. Revenue for the quarter ended September 30, 2011 was $1,125,679, representing an increase of 1% over revenue of $1,116,528, in the same quarter last year.
  • The company has generated net income of $5,155 for the nine months ended September 30, 2011 as compared to a net loss of ($289,197) for the same period last year. This improvement in results of operations is due to the Company's focus on growing revenue and tightly controlling expenses. The Company had a net loss of ($122,158) in the quarter as compared to net income of $43,383 in the same quarter last year. The loss in the quarter is primarily due to a shortfall in the Compliance and Education revenue as well as an increase in expenses in sales and marketing related to the Patient Flow solution.
  • Total expenses before loss/gain on foreign exchange and interest on long-term debt for the nine months ended September 30, 2011 were $3,270,844, an increase of 3% over expenses of $3,168,863 in the same period last year. Total expenses before loss/gain on foreign exchange and interest on long-term debt for the quarter ended September 30, 2011 were $1,152,111, representing a 15% increase from expenses of $999,819 in the same quarter last year. These numbers are in line with Management's planned investment into the expansion of marketing and distribution channels for the Patient Flow solution.
  • EBITDA (a non-IFRS measure), defined as Earnings before Interest, Depreciation, and Amortization, for the nine months ended September 30, 2011 was $255,938 as compared to EBITDA of ($139,847) for the same period last year, representing an improvement of $395,785. EBITDA for the quarter was ($52,383) as compared to EBITDA of $95,975 in the same quarter last year. Adjusted EBITDA (a non-IFRS measure), defined as Earnings before Interest, Depreciation, Amortization, and Stock Option Expense, for the nine months ended September 30, 2011 was $298,778 as compared to ($76,409) for the same period last year, representing an improvement of $375,187. Adjusted EBITDA for quarter was ($32,697) as compared to Adjusted EBITDA of $109,102 in the same quarter last year.
  • The Company announced that Vancouver Coastal Health (VCH) will implement the Medworxx Utilization Management System (UMS) to provide evidence-based clinical admission and discharge criteria across two hospitals, Lions Gate Hospital and Richmond Hospital. This 442-bed deal is an extension of a 2009 licensing agreement between Medworxx and the Health Shared Service British Columbia (HSSBC) representing all British Columbia Health Authorities. Vancouver Coastal Health encompasses a total of 2,055 patient beds.
  • A number of new agreements were signed in the quarter for the Medworxx Compliance and Education Platform including Windsor Regional Hospital and Providence Healthcare.
  • Medworxx launched a rebranding of its Patient Flow and Compliance and Education platforms, including a new website, logo, branding and messaging.
  • As of September 30, 2011, Medworxx Patient Flow Solutions serves 25% of Canadian acute hospital beds, including implementations at the Provincial, Local Health Integration Network (LHIN), regional and local levels. Revenue of the Patient Flow solution for the nine months ended September 30, 2011 was $1,855.858, representing an increase of 39% over revenues of $1,338,460 in the same period last year. Revenue for the quarter ended September 30, 2011 was $642,043, representing an increase of 43% over revenue of $448,133, in the same quarter last year.
  • Subsequent to the end of the quarter the province of Nova Scotia awarded Medworxx with a $1.8 million contract to license its flagship Patient Flow solution for the majority of acute care beds in the province. The project, administered under the Change and Innovation Fund, enables the province to address issues of overcapacity that challenge hospitals daily. Nova Scotia is the fourth province to fully-scope a patient flow management agreement with Medworxx. Nova Scotia is currently operating 3,000 acute care beds; and the province has committed to a five year contract at a cost of approximately $360K per annum for the licensing and maintenance of the Medworxx Utilization Management System for 2,500 beds and the Medworxx Bed Optimization System for 3,000 beds. The addition of the Nova Scotia contract increases the use of the Medworxx solution to 30% of all acute care beds in Canada.


"Medworxx is profitable year to date at the end of three quarters. We continue to build our customer base", said Dan Matlow, President and CEO, Medworxx. "We are especially pleased about the tremendous progress with our Patient Flow business, which showed revenue growth of 39% over the same nine month period last year."

About Medworxx
Medworxx delivers health information technology solutions to over 300 clients internationally; including Canada, United States and United Kingdom. Medworxx helps hospitals meet patient flow challenges, and requirements in compliance and education. Medworxx offers solutions in content management, learning management, policies and procedures, utilization management, bed optimization, single sign on, portal, and emergency readiness arenas.

Medworxx started business in May, 2004, in Ontario with three employees and has since grown to approximately 40 employees. Medworxx' Executive Team and Board of Directors are experienced leaders in healthcare, sales, marketing, IT development, and finance.

Medworxx current client base is distributed approximately 75% in Canada and 25% in the United States, with a growing UK presence. Medworxx Patient Flow solution currently serves over 30% of the acute care beds in Canada.

Medworxx Inc. is publicly traded on the TSX Venture Exchange: MWX
Visit www.medworxx.com

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Disclaimer

This press release contains forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "estimates", "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" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors, such as competition, technological changes, the changing needs of hospitals, the financial condition of the Company's current and potential customers, foreign currency exchange rates, as well as general economic conditions, which may cause the actual results, performance or achievements of the Corporation and Medworxx to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this press release. There can be no assurance that forward-looking 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.

SOURCE Medworxx Inc.

For further information:

Media Contact 

Julia Zarb, PhD
SVP Marketing & Strategy
Medworxx
700 - 121 Richmond St West, Toronto, Canada M5H 2K1
T: 1.800.321.1591 | T: 416.642.1278 x322
jzarb@medworxx.comwww.medworxx.com

Contact 
Dan Matlow
President & Chief Executive Officer
Medworxx
700 - 121 Richmond St West, Toronto, Canada M5H 2K1
T: 1.800.321.1591 | T: 416.642.1278 x311
dmatlow@medworxx.comwww.medworxx.com

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Medworxx Inc.

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