TORONTO, Aug. 29, 2011 /CNW/ - Medworxx Solutions Inc (the "Company")(TSX VENTURE:MWX) announced today that it recorded record revenue in the quarter ended June 30, 2011, and that it has filed with the Canadian securities authorities its interim consolidated financial statements and management discussion analysis report for the three and six month periods ended June 30, 2011. These documents may be viewed under the Company's profile at www.sedar.com.
Highlights of the results include:
- The Company again achieved record quarterly revenue. Revenue for the quarter ended June 30, 2011 was $1,235,058, representing an increase of 28% over revenue of $966,175 in the same quarter last year and an increase of 4% over revenue of $1,189,569 in the prior quarter. The increase is attributable to growth across all areas of the business.
- The Company generated net income in the quarter of $34,524 as compared to a net loss of $262,432 in the same quarter last year. This improvement in results of operations is due to the Company's focus on growing revenue and tightly controlling expenses.
- Total expenses before loss/gain on foreign exchange and interest on long-term debt for the quarter ended June 30, 2011 were $1,074,524 representing a 2.5% decrease from expenses of $1,101,831 in the same quarter last year. These numbers reflect Management's planned control of expenses.
- EBITDA (a non-IFRS measure), defined as Earnings before Interest, Depreciation, and Amortization, for the quarter was $113,371 as compared to EBITDA of ($207,393) in the same quarter last year, an improvement of $320,764. Adjusted EBITDA (a non-IFRS measure), defined as Earnings before Interest, Depreciation, Amortization, and Stock Option Expense, for the quarter was $124,948 as compared to Adjusted EBITDA of ($190,353) in the same quarter last year, an improvement of $315,301. Please see section titled Reconciliation and Definition of Non-IFRS Measures for more clarification of these measures.
- The Company entered into an agreement with Alberta Health Services (AHS) for expanded use of the Medworxx Patient Flow Platform across the province. Currently AHS uses the Medworxx Utilization Management System (UMS) to monitor 2,266 acute care beds in hospitals across five health regions in Alberta. This represents approximately 29 percent of all acute beds in the province. The new agreement creates the framework for AHS to expand use of the Medworxx solution across the province. Initially AHS will add an additional 2,000 beds to its current implementation, bringing the total to 4,266 beds, representing approximately 55% of all acute beds in Alberta.
- A number of new customers were signed in the quarter on the Medworxx Compliance and Education Platform, including BC Women's Hospital and Health Centre, BC, Upper Valley Medical Center, OH, and North Ottawa Community Health System, MI. In addition, The Hospital for Sick Children, ON upgraded to an enterprise license of the Medworxx Learning Management System.
- Nine hospitals were rolled out on the Medworxx Alternative Level of Care (ALC) application in the quarter. The ALC application was designed to support provincial reporting requirements in Ontario.
- The Company added a new strategic marketing executive, Julia Zarb, PhD, to the team. Zarb has 15 years of experience in healthcare IT marketing, and will help Medworxx to meet the upswing in hospital demand for Patient Flow strategies. Subsequent to the quarter end, the Company appointed Brian Goffenberg, CA to the role of Chief Financial Officer. Goffenberg brings expertise in financial management of information technology firms to Medworxx.
- The Company appointed Paul Collins, President and CEO of St Thomas Elgin General Hospital to the Board of Directors.
"Medworxx has been profitable three out of the last four quarters, primarily because our recurring revenue continues to grow as we grow our customer base in all areas of our business", said Dan Matlow, President CEO, Medworxx. "We continue to work on closing our large regional and provincial Canadian opportunities, while simultaneously working on our international distribution strategy that will position Medworxx for growth into larger markets outside of Canada."
ABOUT MEDWORXX
Medworxx is a Toronto-based software company focused exclusively on solutions for the North American healthcare marketplace. Medworxx provides healthcare solutions for patient flow, compliance and education. Its software comprises an integrated suite of solutions, including content management, learning management, policies and procedures, utilization management, bed optimization, single sign on, portal, and emergency readiness solutions.
Medworxx started business in May 2004 in Ontario with 3 employees and has since grown to over 30 employees. Medworxx' executive team consists of experienced sales, marketing, software development, healthcare, and finance personnel. Medworxx currently has a customer base of approximately 100 healthcare organizations representing more than 300 hospitals and 500,000 end users who are distributed approximately 75% in Canada and 25% in the United States. Medworxx' customers use its software platform to increase competency, reduce redundancy, reduce costs, and simplify distribution of knowledge to staff and patients, creating a net effect of increased efficiency and improved patient safety and care.
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Cautionary Note Regarding Forward-Looking Statements
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.