QHR CORPORATION REPORTS A 22% YEAR OVER YEAR Q3 REVENUE INCREASE AND A
168% YEAR OVER YEAR Q3 EBITDA(1) INCREASE
KELOWNA, BC, Nov. 19, 2013 /CNW/ - (TSXV: QHR) QHR Corporation ("QHR" or the "Company"), a leader in the Healthcare
Information Technology sector, announced financial results for its 2013
third quarter ended September 30, 2013.
The Company is reporting its third consecutive quarterly EBITDA(1) in excess of $1 million. The Company is also reporting record 2013
third quarter revenues of $8.5 million, a 22% increase as compared to
Q3 2012 and Q3 EBITDA(1) of $1.2 million, a 168% increase as compared to Q3 2012.
Q3 2013 Highlights
The Company on a consolidated basis reported a record quarterly revenue
of $8,544,854 for Q3 2013, an increase of $1,534,981 or 22% over the
$7,009,873 in revenue recorded in the third quarter of 2012. This
increase includes a contribution of $658,043 from the RCM division and
the balance from organic growth.
EBITDA(1) on a consolidated basis improved by 168%, to $1,187,445 in Q3 2013,
compared to $442,338 in Q3 of 2012. This is the third consecutive
quarter of EBITDA greater than $1,000,000.
EBITDA(1) margin on a consolidated basis improved to 13.9% in Q3 2013 compared to
6.3% in Q3 2012.
The EMR division recorded record revenue of $5,446,094 an increase of
$1,086,629 or 25% over the $4,359,465 in revenue recorded in Q3 2012.
Consolidated recurring revenue for Q3 2013 was 76% of total revenue,
which compares to 67% for Q3 2012.
"We are pleased to report continued stable results quarter over quarter
and significant improvements in our Q3 year over year results in
revenue and also in both our EBITDA(1) $'s and EBITDA(1) margin. This most recently completed quarter is our third consecutive
quarter with greater than $1.0 million of EBITDA(1). We continue to focus on developing our strong and stable business
model around recurring revenue. Our recurring revenue was 76% of total
revenue for the quarter and 88% of total expenses for the quarter."
said Al Hildebrandt, President and CEO of QHR Corporation.
Consolidated revenue for the quarter increased by $1,534,981 to
$8,544,854 or 22%, from $7,009,873 in Q3 2012. The Electronic Medical
Record ("EMR") division revenue achieved solid growth of 25% in Q3 2013
to report a new record revenue of $5,446,094 compared to Q3 2012
revenue of $4,359,465. The Enterprise Management Solutions ("EMS")
division revenue decreased by $209,691 in Q3 2013 as compared to Q3
2012 due to additional one-time revenue included in Q3 2012 that was
not present in Q3 2013. Our Revenue Cycle Management ("RCM") division
(the Open EC acquisition) contributed revenues of $658,043 for Q3 2013.
Recurring Revenue on a consolidated basis grew to a run rate of $25.0
million at September 30, 2013, compared to $18.3 million at the end of
Q3 2012. Q3 2013 recurring revenue was 76% of total revenue.
(1)EBITDA (earnings before interest, depreciation, taxes, amortization,
stock-based compensation and foreign exchange) is a non-IFRS measure.
Management believes that, in addition to net earnings, EBITDA is a
useful complementary measure of pre-tax profitability and is commonly
used by the financial and investment community for valuation purposes.
However, EBITDA does not have a standardized meaning prescribed by
IFRS. Investors are cautioned that EBITDA should not be construed as an
alternative to net earnings determined in accordance with IFRS as an
indicator of performance or to cash flows from operating, investing and
financing activities as a measure of liquidity and cash flows. QHR's
method of calculating EBITDA may differ from the methods used by other
entities and, accordingly, our EBITDA may not be comparable to
similarly titled measures used by other entities
EBITDA(1) $'s and EBITDA(1) margin significantly improved during Q3 2013 as compared to Q3 2012. We
continue to increase efficiencies and build better scalability into
delivery of our products. Consolidated EBITDA(1) improved from 6.3% in Q3 2012 to 13.9% in Q3 2013. EBITDA per share
(diluted) was $0.024.
Comprehensive Net Earnings
The comprehensive net earnings for the three months ended September 30,
2013 was $23,674, compared to a comprehensive net loss of $116,212 for
the same period in 2012. Comprehensive net earnings for the nine months
ended September 30, 2013 were $462,032, compared to $43,645 for the
same period last year. The Company continues to be profitable and to
strengthen its balance sheet.
For the nine months ended September 30, 2013, operating activities
resulted in net cash inflows of $3,035,474, compared to $1,879,871 for
the same period in 2012. Debt was reduced by $2,254,389 during the nine
month period. Working capital improved from ($182,092) at December 31,
2012 to $1,035,640 at September 30, 2013.
At September 30, 2013, the Company had cash and cash equivalents in the
amount of $1,468,211 compared to $1,592,896 at December 31, 2012. The
Company has an available operating line of credit with the Royal Bank
of up to $1.5 million, subject to margining calculations against trade
account receivables. At September 30, 2013, the Company had drawn
$680,000 of the operating line. As at November 19, 2013 the Company is
not using any of this operating line.
Full financial statements, together with Management's Discussion and
Analysis are available on SEDAR.
Conference Call - The Company executives will host a conference call at
11:00 AM EST (8:00 AM PST) Wednesday, November 20, 2013, to discuss the
Company's 2013 third quarter financial results. To join the conference
call, please dial Toll Free 1-888-390-0605, Conference ID #: 81580924
On behalf of the Board of Directors
President and CEO
About QHR Corporation
QHR is a leader in quality and technology, providing software and
services in the following markets:
In the Electronic Medical Records ("EMR") market, QHR offers a suite of
medical software modules that provide computer-based medical records
for family physicians, medical specialists, and surgeons, as well as
administrative modules for billing and patient scheduling, that is a
key component in the move throughout Canada to provide electronic
healthcare records for all Canadians. QHR also provides on-site and
off-site (ASP) hosting capabilities for the EMR market.
In the Revenue Cycle Management ("RCM") market, QHR provides best in
class clearinghouse services, with over 1,500 payers, which assist US
healthcare providers to exchange claim information that ensures
accurate revenue management. QHR provides a progressive medical billing
service that outsources coding, payer reconciliation and revenue
reporting. QHR's software also supports employer health plan enrolment,
employee health plan eligibility and health care interoperability
through a 5010 standard based EDI gateway. The RCM markets QHR services
are primarily in the US.
In the Enterprise Management Solutions ("EMS") market, QHR specializes
in workforce management software, which consists of integrated payroll,
staff scheduling and human resource software, and in customized
financial management software built on the Microsoft Dynamics GP
platform. These products are targeted at complex healthcare, social
services and public safety environments.
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. Risks that may prevent or delay the forward looking statements from
coming to fruition include that we may not offer products that are
acceptable to industry regulators or customers; competitors may offer
better or cheaper products; we may not be able to raise sufficient
capital to improve products to remain competitive; changing regulatory
requirements may prevent our products from being sold as expected; we
may not be able to attract or retain key personnel; our technology may
become obsolete; orders could be cancelled or delayed and market
factors may increase our 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 our 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:
Al Hildebrandt, President & CEO
Jerry Diener, VP Finance & CFO
Jim Wilson, VP Marketing & Communications