QHR Achieves Record Quarterly Revenue of $7.7 Million

KELOWNA, BC, April 28, 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 fourth quarter and year ended December 31, 2015.

Q4 2015 revenue increased 19% year-over-year to a record $7.7 million, up from $6.4 million in Q4 2014.  The Company also reported a 26% increase in recurring revenue run rate(1) to $26.4 million at the end of Q4 2015 compared to $20.9 million at the end of Q4 2014. Fiscal 2015 revenue was $28.2 million compared to $25.0 million in fiscal 2014.

Other Selected Financial Information:


Q4/15 compared to Q3/15 (millions)



Q4 2015


Q3 2015


 $ Change


% Change

Revenue


7.683


7.051


0.632


9%

Recurring Revenue Run Rate(1)


26.4


24.1


2.300


10%

EBITDA


0.965


0.627


0.338


54%

ADJUSTED EBITDA(1)


1.033


0.756


0.277


37%

Net Earnings (Loss)


0.318


(0.300)


0.618


206%

Cash


9.374


7.605


1.769


23%

DSO


38 Days


47 Days


9 Days


19%










Q4/15 compared to Q4/14 (millions)



Q4 2015


Q4 2014


$ Change


% Change

Revenue


7.683


6.438


1.245


19%

Recurring Revenue Run Rate(1)


26.4


20.9


5.500


26%

EBITDA


0.965


(0.355)


1.320


372%

ADJUSTED EBITDA(1)


1.033


0.552


0.481


87%

Net Earnings (Loss)


0.318


(0.868)


1.186


137%

Cash


9.374


12.169


(2.795)


-23%

DSO


38 Days


38 Days


0 Days


0%










QHR continues to focus on the Electronic Medical Records ("EMR") market, growing organic sales as well as pursuing complementary acquisitions and partnerships to further its leadership position in the market.

"We finished the year in a very strong position, both in market share and financial run rates which are now profitable, driven by recurring revenue growth from our EMR platform. The market continues to embrace Electronic Medical Records, and our single platform strategy sets us apart from our competition as the primary choice for both healthcare providers and partners as we grow our network across the country." said Mike Checkley, President and CEO of QHR Corporation.

Revenue

Record revenue of $7.7 million for Q4 2015 and $28.2 million for 2015 was largely driven by organic growth of the Accuro EMR product.

Net Earnings (Loss)

Net earnings for the quarter ended December 31, 2015 for continuing operations were $318,070, compared to a loss of $867,612 for Q4 2014.  Net loss for continuing operations in 2015 was $1,319,943 compared to net earnings of $383,219 for 2014.

Cash Flow 

In Q4 2015, cash flow generated from operating activities was $ 2.1 million. For the year ended December 31, 2015, operating activities resulted in net cash outflows of $1,894,660. The cash outflow for 2015 was driven primarily by working capital requirements and Other Charges during the first half of 2015.

At December 31, 2015, the Company had cash and cash equivalents in the amount of $9.4 million and trade and other receivables of $3.4 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 and 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 an 11-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, empower health providers with tools for virtual care including secure video and messaging, and 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)These consolidated financial statements for the year ended December 31, 2015, including comparatives, are expressed in Canadian dollars and have been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB"). As a complement to results provided in accordance with 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 audited consolidated financial statements and accompanying notes for the year ended December 31, 2015.

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, April 28, 2016, to discuss the Company's Q4 and full year 2015 financial results. To join the conference call, please dial Toll Free 1-888-390-0546, Conference ID# 04181004

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 its single platform strategy will continue to serve it well in the coming year, as well as its belief that the pursuit of complementary acquisitions and partnerships in an effort to drive growth in new markets and further cement its leadership position in the Canadian EMR market.  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

For further information: Mike Checkley, President & CEO, 250.979.1709, mike.checkley@QHRtech.com; Jerry Diener, CFO & VP Finance, 250.979.1722, jerry.diener@QHRtech.com

RELATED LINKS
www.qhrtechnologies.com

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