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Nightingale reports fiscal 2010 second quarter results

^{Published on 2009-11-23 04:34:13 - Market Wire}
 

 Q2 and Year to Date Highlights ------------------------------ - The Company achieved its third consecutive quarter of positive EBITDA for the quarter ended September 30, 2009. EBITDA was a positive $0.2 million for the quarter ended September 30, 2009 compared to an EBITDA loss of $0.5 million for the fiscal quarter ended September 30, 2008. EBITDA was a positive $0.2 million for the six months ended September 30, 2009 compared to a negative $0.7 million for the six months ended September 30, 2008. - Revenues for the quarter ended September 30, 2009 were $3.9 million compared to $4.2 million for the year ago quarter. Revenues were $8.1 million for the six months ended September 30, 2009 compared to $9.2 million for the six months ended September 30, 2008. Recurring revenues decreased 3% in the quarterly periods and increased 2% in the six month periods. Non-Recurring revenues increased 28% in the quarterly periods and decreased $1.3 million in the six month periods. - Loss and comprehensive loss decreased to $0.7 million from $1.6 million in the quarterly periods and decreased to $1.6 million from $2.8 million for the six months ended September 30, 2008. - Expenses for the fiscal quarter ended September 30, 2009 decreased $0.9 million, or 22%, from the same quarter last fiscal year and decreased $2 million, or 23%, during the six month periods. - In July 2009, the Company amended its debt financing agreements and extended the term of its subordinated debt through July 2012. - In July 2009, the Company was selected to provide its web-based OntarioMD Certified Nightingale On Demand EMR to the North Burlington Medical Centre, where the application will be used by more than 30 full and part-time physicians providing family practice, pediatrics and walk-in (urgent care) medical services with over 75,000 patients visits per year. - In August 2009, the Company entered into an agreement with a Canadian research assistance agency whereby the Company will be reimbursed up to $0.5 million for certain research and development activities in support of the Company's US EMR product. - In October 2009, the Ontario Medical Association (OMA) announced $236M in funding to advance the adoption of EMRs among practice-based family physicians and specialists in the province. 

 Q2 and Year to Date Fiscal 2010 Financial Review ------------------------------------------------ 

 Notice of Conference Call and Webcast ------------------------------------- 

 ------------------------------------------------------------------------- Fiscal Fiscal Six Six Quarter Quarter Months Months Ended Ended Ended Ended September September September September Definition 30, 2009 30, 2008 30, 2009 30, 2008 ------------------------------------------------------------------------- Loss and Comprehensive Loss $ (726) $ (1,492) $ (1,570) $ (2,752) ------------------------------------------------------------------------- Adjustments for: Other Loss (Income) (35) 16 (78) 28 Interest 253 364 570 720 Depreciation and Amortization 553 633 1,121 1,245 Stock-based Compensation 136 21 161 65 ------------------------------------------------------------------------- EBITDA $ 181 $ (458) $ 204 $ (694) ------------------------------------------------------------------------- ------------------------------------------------------------------------- 

 INTERIM CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE LOSS FOR THE THREE AND SIX MONTH PERIODS ENDED SEPTEMBER 30, 2009 ------------------------------------------------------------------------- 3 months 3 months 6 months 6 months ending ended ending ended September September September September 30, 2009 30, 2008 30, 2009 30, 2008 ------------------------------------------------------------------------- Revenue $ 3,926,392 $ 4,246,312 $ 8,056,611 $ 9,191,899 Cost of sales 1,107,940 1,082,779 2,301,541 2,359,589 ------------- ------------- ------------- ------------- Gross profit 2,818,452 3,163,533 5,755,070 6,832,310 ------------- ------------- ------------- ------------- Expenses General and administration 606,572 831,058 1,372,495 1,683,696 Sales and marketing 312,645 650,567 737,066 1,347,465 Research and development 695,326 923,287 1,427,474 1,984,947 Client services 1,023,216 1,216,414 2,014,310 2,509,947 Stock based compensation 136,132 21,412 161,482 65,005 Amortization 552,718 632,571 1,121,288 1,244,873 ------------- ------------- ------------- ------------- 3,326,609 4,275,309 6,834,115 8,835,933 ------------- ------------- ------------- ------------- Operating loss (508,157) (1,111,776) (1,079,046) (2,003,623) ------------- ------------- ------------- ------------- Interest 253,273 364,360 569,682 720,387 Foreign currency loss (gain) (34,934) 15,536 (78,455) 27,531 Loss and comprehensive loss $ (726,496) $ (1,491,672) $ (1,570,272) $ (2,751,541) ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- Basic and diluted loss per common share $ (0.01) $ (0.02) $ (0.02) $ (0.04) ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- Weighted average number of common shares 70,534,543 67,478,540 69,931,693 67,478,540 ------------------------------------------------------- ------------------------------------------------------- INTERIM CONSOLIDATED BALANCE SHEET AS AT SEPTEMBER 30, 2009 ------------------------------------------------------------------------- As at As at September March 30, 2009 31, 2009 ------------------------------------------------------------------------- ASSETS Current assets Cash and cash equivalents $ 2,357,786 $ 3,514,056 Accounts receivable 1,822,361 2,324,377 Other receivables 38,229 21,218 Inventory 38,586 62,182 Prepaid expenses 497,155 448,275 ------------- ------------- 4,754,117 6,370,108 ------------- ------------- Long-term assets Deferred costs 101,662 129,104 Property and equipment 853,177 1,216,596 Intangible assets 4,768,620 5,497,436 Goodwill 4,692,399 4,692,399 ------------- ------------- 10,415,858 11,535,535 ------------- ------------- Total assets $ 15,169,975 $ 17,905,643 ------------- ------------- ------------- ------------- LIABILITIES Current liabilities Accounts payable and accrued liabilities $ 2,700,438 $ 3,693,844 Income taxes payable 807,171 948,701 Current portion of deferred revenue 3,819,251 3,935,954 Current portion of capital lease obligations 167,373 178,655 ------------- ------------- 7,494,233 8,757,154 ------------- ------------- Long term liabilities Subordinated debt 4,395,426 4,938,425 Deferred revenue 1,213,914 1,296,842 Capital lease obligations 141,857 281,463 ------------- ------------- 5,751,197 6,516,730 ------------- ------------- Total liabilities 13,245,430 15,273,884 ------------- ------------- SHAREHOLDERS' EQUITY Capital stock 28,348,960 27,596,692 Contributed surplus 4,383,082 3,274,607 Warrants 471,577 1,469,262 Deficit (31,279,074) (29,708,802) ------------- ------------- 1,924,545 2,631,759 ------------- ------------- Total liabilities and shareholders' equity $ 15,169,975 $ 17,905,643 ------------- ------------- ------------- ------------- --------------------------- --------------------------- INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE THREE AND SIX MONTH PERIODS ENDED SEPTEMBER 30, 2009 ------------------------------------------------------------------------- 3 months 3 months 6 months 6 months ending ended Ending Ended September September September September 30, 2009 30, 2008 30, 2009 30, 2008 ------------------------------------------------------------------------- Cash Flow from Operating Activities Loss and comprehensive loss $ (726,496) $(1,491,672) $(1,570,272) $(2,751,541) Adjustments for: Depreciation and amortization 552,718 632,571 1,121,288 1,244,872 Amortization of transaction costs related to debt financing 11,694 33,525 45,218 67,049 Foreign currency loss (gain) (34,934) 15,536 (78,455) 27,531 Stock based compensation 136,132 43,912 161,482 65,005 Interest accretion 55,386 128,460 157,005 256,238 ------------ ------------ ------------ ------------ (5,500) (637,668) (163,735) (1,090,846) Changes in non-cash working capital balances Accounts receivable 407,402 153,954 262,742 455,359 Prepaid expenses 62,369 109,362 (48,880) 44,227 Inventory 6,329 29,817 23,596 89,798 Deferred costs 14,996 (24,997) 27,340 21,694 Other receivables (20,264) (65,120) (15,020) 569,842 Accounts payable and accrued liabilities (196,598) (388,727) (767,153) (702,251) Deferred revenue (248,288) (202,462) (199,631) (866,834) ------------ ------------ ------------ ------------ Cash flows provided by (used in) operating activities 20,446 (1,025,841) (880,741) (1,479,011) ------------ ------------ ------------ ------------ Cash flow from investing activities Purchase of property and equipment (12,806) (42,529) (29,052) (103,866) ------------ ------------ ------------ ------------ Cash flows used in investing activities (12,806) (42,529) (29,052) (103,866) ------------ ------------ ------------ ------------ Cash flow from financing activities Repayment of subordinated debt financing - (500,000) - (500,000) Borrowing (repayment) under line of credit - 750,000 - 750,000 Repayment of capital lease obligations (59,742) (73,832) (136,130) (176,463) ------------ ------------ ------------ ------------ Cash flows from (used in) financing activities (59,742) 176,168 (136,130) 73,537 ------------ ------------ ------------ ------------ Foreign exchange gains(losses) on cash held in foreign currency (67,853) 44,235 (110,348) 46,833 Net decrease in cash during the period (52,102) (892,202) (1,045,923) (1,509,340) Cash and cash equivalents, beginning of period 2,477,741 4,419,206 3,514,056 5,033,746 Cash and cash equivalents, end of period $ 2,357,786 $ 3,571,239 $ 2,357,786 $ 3,571,239 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ --------------------------------------------------- --------------------------------------------------- OVERALL PERFORMANCE, RESULTS OF OPERATIONS AND FINANCIAL CONDITION QUARTERLY DATA ------------------------------------------------------------------------- Fiscal Fiscal Year Q3 Q4 Year Q1 Q2 In $ 000's (Except Ended Ended Ended Ended Ended Ended per Share March Dec March March June Sept Amounts) 31, 2007 31, 2007 31, 2008 31, 2008 30, 2008 30, 2008 ------------------------------------------------------------------------- Recurring Revenue $ 9,828 $ 3,229 $ 3,247 $13,088 $ 3,309 $ 3,431 Non-Recurring Revenue 4,186 713 931 5,788 1,637 815 Revenue 14,014 3,942 4,178 18,876 4,946 4,246 Gross Profit 9,589 2,660 2,979 13,706 3,669 3,164 Expenses 14,856 5,220 4,739 19,957 4,561 4,275 EBITDA Income (Loss) (3,841) (1,799) (1,188) (3,526) (236) (458) Operating Loss for the Period (5,267) (2,561) (1,761) (6,250) (892) (1,112) Loss and Comprehensive Loss (5,713) (3,324) (6,273) (12,811) (1,260) (1,492) Loss and Comprehensive Loss per Common Share $ (0.14) $ (0.05) $ (0.09) $ (0.19) $ (0.20) $ (0.02) Weighted Avg. No. of Common Shares 40,120 66,914 67,460 66,228 67,479 67,479 ------------------------------------------------------------------------- Total Assets $17,531 $36,257 $23,992 $23,992 $21,807 $20,308 Total Long Term Liabilities $ 2,014 $12,097 $ 6,948 $ 6,948 $ 6,366 $ 6,251 ------------------------------------------------------------------------- ---------------------------------------------------------------- Fiscal Q3 Q4 Year Q1 Q2 In $ 000's (Except Ended Ended Ended Ended Ended per Share Dec March March June Sept Amounts) 31, 2008 31, 2009 31, 2009 30, 2009 30, 2009 ---------------------------------------------------------------- Recurring Revenue $ 4,045 $ 3,746 $14,531 $ 3,564 $ 3,341 Non-Recurring Revenue 511 971 3,934 566 585 Revenue 4,556 4,717 18,465 4,130 3,926 Gross Profit 3,272 3,305 13,410 2,937 2,818 Expenses 4,022 3,962 16,820 3,508 3,327 EBITDA Income (Loss) (34) 9 (719) 22 181 Operating Loss for the Period (750) (656) (3,410) (571) (508) Loss and Comprehensive Loss (876) (1,004) (4,632) (844) (726) Loss and Comprehensive Loss per Common Share $ (0.01) $ (0.01) $ (0.07) $ (0.01) $ (0.01) Weighted Avg. No. of Common Shares 67,667 67,845 67,845 69,322 70,535 ---------------------------------------------------------------- Total Assets $20,078 $17,906 $17,906 $16,413 $15,170 Total Long Term Liabilities $ 6,234 $ 6,517 $ 6,517 $ 6,309 $ 5,751 ----------------------------------------------------------------