Medworxx Inc. Files First Quarter 2013 Financial Statements and Management's Discussion and Analysis
Medworxx reports solid growth of 15.6 percent for the first quarter of 2013
TORONTO--(BUSINESS WIRE)-- Medworxx Inc. ("Medworxx") (TSXV:MWX), a leader in clinical patient flow, and compliance and education solutions, announced today it has filed with the Canadian securities authorities its Consolidated Financial Statements and Management's Discussion and Analysis report for the quarter ended March 31, 2013. These documents may be viewed under the Company's profile at www.sedar.com.
Highlights of the results for the year ended March 31, 2013 include:
Revenue for the quarter ended March 31, 2013 was $1,452,806, representing an increase of 15.6% over revenues of $1,257,067 for the previous year. The increase is attributable primarily to growth in the Compliance and Education platform of 28.4% and the Patient Flow platform of 13.6%. The number of beds under license in the Patient Flow platform has grown by 4.2% from 26,469 beds under license at December 31, 2012 to 27,578 beds under license at March 31, 2013.
The Company incurred a net loss of $321,814 for the three months ended March 31, 2013 as compared to a net loss of $69,881 for the three months ended March 31, 2012. The loss for the quarter is attributable to the planned investment in building the sales and partner channels for the Medworxx Patient Flow platform and was lower than planned.
Adjusted EBITDA (a non-IFRS measure), defined as Earnings before Interest, Taxation, Depreciation, Amortization, and Stock Option Expense, for the three months ended March 31, 2013 was a negative $244,064 as compared to a positive $23,196 for the same period last year, representing a decline of $267,260.
South Tees Hospitals NHS Foundation Trust, the largest hospital trust in Tees Valley, is the newest UK client, having licensed the Medworxx Patient Flow Solution. Hotel Dieu Grace Hospital/Erie St. Clair LHIN, ON, Canada and Windsor Regional Hospital, ON, Canada also licensed additional Medworxx Patient Flow modules of Bed Management and Forms and Assessments (in addition to their existing Clinical Criteria license).
With strong traction in Canada and robust growth in the UK, Medworxx, along with its partner, EQhealth, have begun to actively market into the Australian base. Due to the similarities between the Canadian, UK and Australian health systems, Medworxx expansion into Australia is a natural extension. With 82,800 hospital beds in Australia, there is significant opportunity for impact that provides for quantifiable increases in efficiency from implementing Medworxx Patient Flow solution.
In January 2013, the company launched Medworxx 5.0. This new web-based, integrated Patient Flow Solution, comprised of Medworxx Client Criteria (formerly Utilization Management), Medworxx Bed Management (formerly Bed Board) and Medworxx Forms and Assessments (formerly Assessments).
A number of contracts were signed in the quarter for the Medworxx Compliance and Education platform including: Carle Foundation Hospital, IL, USA, Providence Care Kingston, ON, Canada and St. Joseph's Health Centre Guelph, ON, Canada. Royal Victoria Hospital, ON, Canada, a client since 2010, plans to expand their use of Medworxx and has licensed additional users.
In the quarter, the convertible debentures came due on February 21, 2013. The debenture holders had the option to convert the principal plus any accrued interest into stock at $0.35 per share, plus a half warrant at $0.48 per share. Of the $438,700 due ($410,000 convertible debentures plus $28,700 in accrued interest for six months ending February 21, 2013), $31,650 was converted at $0.35 per share and 90,429 shares were issued from treasury; the remaining $407,050 was repaid in cash.
"We continue to make progress with our expansion model, particularly in the UK market, as evidenced by the new license agreement with South Tees Hospital NHS Foundation Trust," said Dan Matlow, President and CEO, Medworxx. "There is great market potential for Medworxx in the UK, which has double the number of beds that Canada does, meaning opportunity for larger deals. We look forward to continued growth in the UK and Australia, as well as North America."
Medworxx delivers health information solutions to over 350 hospitals internationally; including Canada, United States and United Kingdom. Medworxx helps hospitals meet patient flow challenges, and requirements in compliance and education. Medworxx Clinical Criteria - flagship of Medworxx Patient Flow that includes electronic bed board and independent assessment components - currently serves over 33% of the acute care beds in Canada. Founded in 2004, Medworxx is based in Toronto, ON, and publicly traded on the TSX Venture Exchange: MWX.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
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.
Dan Matlow, 416-642-1278 Ext. 311
President & Chief Executive Officer
Brian Goffenberg, 416-642-1278 Ext. 315
Chief Financial Officer & Executive Vice President
KEYWORDS: United Kingdom Europe North America Canada
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