VICTORIA, BRITISH COLUMBIA -- (Marketwire) -- 06/18/12 -- Vigil Health Solutions Inc. ("Vigil") (TSX VENTURE: VGL) announces the results of operations for the fiscal year and the fourth quarter, ending March 31, 2012.
Highlights
-- Sales bookings were up 4% for the year to $3.73 million compared to
$3.57 million in the year ended March 31, 2011.
-- Revenue was $3.37 million compared to $4.38 million in the year ended
March 31, 2011, a decrease of 23%.
-- Gross margin percentage was 46% compared to 42% for fiscal 2011.
-- Revenue from service and maintenance agreements and one-offs grew by 8%
to $1.32 million.
-- Loss of $425 thousand for the year ended March 31, 2012 compared to a
loss of $70 thousand in the year ended March 31, 2011.
-- Completed five installations of the Vitality Care System™, the
company's new wireless monitoring system.
"Vigil saw the second consecutive year of improved sales bookings. The increase was not sufficient to maintain revenue numbers which continue to be affected by the lower bookings seen in the last two years. Therefore, while we remain confident in the strong fundamentals of the senior living industry, in the latter part of fiscal 2012 we took steps to scale operations and expenses to meet the current level of demand. We believe we have a superior product and a dedicated team committed to delivering the best in innovation and customer service and we now need to see a sustained recovery in senior housing construction," stated Troy Griffiths, President and CEO of Vigil Health Solutions Inc.
Financial Results
Bookings for the year ended March 31, 2012 were $3.73 million up from $3.57 million in the year ended March 31, 2011.
At March 31, 2012 Vigil had a backlog of approximately $1.93 million (including $394 thousand in deposits and progress billings, recorded as deferred revenue on the balance sheet) up 34% from $1.43 million (including $521 thousand in deposits and progress billings, recorded as deferred revenue on the balance sheet) at March 31, 2011.
Vigil records revenue following completion of the installation and commissioning of the product at the customer site which is indicated by customer acceptance. The timing of the installation of Vigil's products is often dependent on facility construction schedules, which can result in a considerable lag between receipt of contracts and revenue recognition. The Company's backlog includes all contracts signed including those in progress but not completed.
Revenue for the year ended March 31, 2012 was $3.37 million compared to $4.38 million in the year ended March 31, 2011, a decrease of 23%. The effect of the ongoing new construction slump and decreased bookings in prior periods depressed revenue in the current fiscal. In fiscal 2011 the effect on revenue of historically low levels of senior construction was mitigated by the recognition of the largest sale in Vigil's history ($770 thousand). Project revenue made up 61% of total revenue; the remaining revenue came from follow on sales to existing customers. These sales include service and maintenance billings and replacement products including sensors, wireless devices and communication equipment and were up 8% over fiscal 2011.
The gross margin percentage for the year ended March 31, 2012 was 46% compared to 42% for the year ended March 31, 2011. Gross margins are in line with management's expectations of annual margins of between 42% and 47%.
Operating expenditures for the year ended March 31, 2012 were $1.98 million up 6% from operating expenditures of $1.87 million for the same period ended March 31, 2011. Reflecting the historically low levels of construction still being seen in senior housing, the Company reduced operating cost in the last two quarters and anticipates further reductions in fiscal 2013.
Losses for the year ended March 31, 2012 were $425 thousand, or $0.036 per share, compared to $70 thousand, or $0.014 per share, for the previous year. The increased losses relate to the lower revenue however the majority of the loss ($307 thousand) occurred in the first two quarters prior to the Company decreasing operating expenses.
A summary of our financial performance for the year ended March 31, 2012 follows below. For further information relating to the financial results of the Company, please refer to the Company's financial statements and MD&A filed on SEDAR at www.sedar.com. Financial information will be mailed to entitled security holders on June 22, 2012. Or, upon notice to the Company, entitled security holders may request a copy of financials in advance.
Summary Financial
Information
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Three months ended Twelve months ended
March 31, March 31, March 31, March 31,
2012 2011 2012 2011
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Revenue $ 901,674 $ 1,430,341 $ 3,370,733 $ 4,383,791
Cost of sales 499,482 833,357 1,822,603 2,521,104
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Gross profit 402,192 596,984 1,548,130 1,862,687
Expenses 453,871 463,476 1,976,845 1,866,652
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Income (loss) before
the following items $ (51,679) 133,508 $ (428,715) $ (3,965)
Other income (expense) 1,631 24,760 3,991 $ (66,266)
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Comprehensive income
(loss) for the period $ (50,048) $ 108,748 $ (424,724) $ (70,231)
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Non-IFRS Measure
For the year ended March 31, 2012, we are disclosing Adjusted EBITDA, a non-IFRS financial measure, as a supplementary indicator of operating performance. We define Adjusted EBITDA as net income before, interest, income taxes, amortization, stock based compensation and currency gains or losses including derivative foreign exchange differences. We are presenting the non-IFRS financial measure in our filings because we use it internally to make strategic decisions, forecast future results and to evaluate our performance and because we believe that our current and potential investors and analysts use the measure to assess current and future operating results and to make investment decisions. It is a non-IFRS measure, may not be comparable to other companies and it is not intended as a substitute for IFRS measures.
Adjusted EBITDA reconciliation
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Three months ended Twelve months ended
March 31, March 31, March 31, March 31,
2012 2011 2012 2011
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Income / (loss) for the
period $ (50,048) 108,747 (424,724) (70,231)
Add / (deduct)
Foreign exchange gain
(loss) (2,385) 10,872 (11,586) 28,420
Derivative exchange gain (2,424) - (7,711) -
Interest 3,177 7,157 15,306 37,847
Stock based compensation 1,341 445 7,370 20,764
Amortization 4,825 6,731 22,584 29,130
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4,534 25,205 25,963 116,161
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Adjusted EBITDA $ (45,514) 133,952 (398,761) 45,930
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About Vigil Health Solutions Inc.
Vigil offers a proprietary technology platform combining software and hardware to provide comprehensive solutions to the expanding seniors' housing market. Vigil has established a growing presence in North America and an international reputation for being on the leading edge of systems design and integration. Vigil's objective is to offer solutions for the full continuum of care. Vigil's product range includes the innovative wireless Vitality Care System™ featuring discreet 'mini pendants', a nurse call system, mobile fall, incontinence monitoring, resident check and the award-winning Vigil Dementia System.
Certain statements contained in this news release, that are not based on historical facts, may constitute forward-looking statements or forward-looking information within the meaning of applicable securities laws ("forward-looking statements"). These forward-looking statements are not promises or guarantees of future performance but are only predictions that relate to future events, conditions or circumstances or our future results, performance, achievements or developments and are subject to substantial known and unknown risks, assumptions, uncertainties and other factors that could cause our actual results, performance, achievements or developments in our business or in our industry to differ materially from those expressed, anticipated or implied by such forward-looking statements.
Forward-looking statements include all financial guidance, disclosure regarding possible events, conditions, circumstances or results of operations that are based on assumptions about future economic conditions, courses of action and other future events. We caution you not to place undue reliance upon any such forward-looking statements, which speak only as of the date they are made. These forward-looking statements appear in a number of different places in this presentation and can be identified by words such as "may", "estimates", "projects", "expects", "intends", "believes", "plans", "anticipates", or their negatives or other comparable words. Forward-looking statements include statements regarding the outlook for our future operations, plans and timing for the introduction or enhancement of our services and products, statements concerning strategies or developments, statements about future market conditions, supply conditions, end customer demand conditions, channel inventory and sell through, revenue, gross margin, operating expenses, profits, forecasts of future costs and expenditures, the outcome of legal proceedings, and other expectations, intentions and plans that are not historical fact.
The risk factors and uncertainties that may affect our actual results, performance, achievements or developments are many and include, amongst others, our ability to develop our sales force and generate revenue, the length of the sales cycle, management of the Company's growth, ability to recruit and retain staff, fluctuations in demand for current and future products, our ability to develop, manufacture, supply and market existing and new products that meet the needs of customers, volatility in the exchange rate, ability to secure financing, ability to secure product liability insurance, the continuous commitment of our customers, increased competition, changes in regulation and reliance on third party suppliers. These risk factors and others are discussed in the Risks and Uncertainties section of our Management Discussion and Analysis. Many of these factors and uncertainties are beyond the control of the Company. Consequently, all forward- looking statements in this news release are qualified by this cautionary statement and there can be no assurance that actual results, performance, achievements or developments anticipated by the Company will be realized.
Forward-looking statements are based on management's current plans, estimates, projections, beliefs and opinions and, except as required by law, the Company does not undertake any obligation to update forward-looking statements should the assumptions related to these plans, estimates, projections, beliefs and opinions change.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Contacts:
Vigil Health Solutions Inc.
Troy Griffiths
President and CEO
(250) 383-6900
(250) 383-6999 (FAX)
information@vigil.com
www.vigil.com
