MediSolution Ltd. Announces Results for the Third Quarter
MONTREAL, QUEBEC--(Marketwire - February 13, 2009) - MediSolution Ltd.(TSX: MSH), a leading provider of enterprise resource planning (ERP) solutions and specialized blood bank software, today announced its results for the third quarter ended December, 31, 2008.
Third Quarter Highlights
For the quarter ended December 31, 2008, the Corporation reported a net loss of $0.7 million, compared to a net loss of $1.0 million in the same period ended December 31, 2007.
Overall, new systems revenue in the third quarter of fiscal 2009 increased by 26% to $1.96 million as compared to $1.56 million during the same quarter in the prior year. Consolidated revenue in the third quarter of fiscal 2009 increased by 7% for a total of $5.6 million as compared to $5.2 million the same quarter in fiscal 2008. The Corporation's earnings before interest, taxes, depreciation and amortization of negative $0.2 million remained unchanged from the same quarter prior year.
"In Q3, we continue to focus on rationalizing our cost structure to reflect our more streamlined ERP and Blood Bank business focus," said Paul Lepage, President and Chief Executive Officer, "while looking for opportunities to increase revenue, improve operational efficiency and reduce costs."
About MediSolution
MediSolution (TSX: MSH), a Brookfield Asset Management company, is a leading information technology company, providing enterprise resource planning (ERP) and specialized blood bank software, solutions and services to healthcare and service sector customers across North America. More than 300 healthcare, public and service sector organizations rely on MediSolution's systems to maximize their operational efficiencies, lower their costs and improve the delivery of services. The company's product portfolio is comprised of Financial Management software such as accounts receivable, budgeting and materials management, Business Intelligence solutions as well as Human Capital Management tools and services including human resources management, staff scheduling and payroll processing. The company also provides speciality hemovigilance solutions that improve patient safety, reduce waste and increase efficiency for blood transfusion services.
For more information, visit www.medisolution.com.
This press release contains "forward-looking statements" regarding MediSolution. The words "believe", "expect", "anticipate", "intend", "estimate" and other expressions which are predictions of or indicate future events and trends and which do not relate to historical matters identify forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements because they involve known an unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the company to differ materially from anticipated future results, performance or achievements expressed or implied by such forward-looking statements.
(1) "EBITDA" (earnings before interest expense, income taxes, depreciation of property and equipment, amortization of intangible assets and loss on settlement of lawsuit) does not have a standardized meaning prescribed by Canadian Generally Accepted Accounting Principles (GAAP) and may not be comparable to similar measures presented by other publicly traded companies. We use EBITDA amongst other measures, to assess the operating performance of our business.
MediSolution Ltd.
Consolidated Statements of Operations and
Comprehensive Income (loss) (unaudited)
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(in thousands of dollars Three months ended Nine months ended
except per share data) December 31 December 31
2008 2007 2008 2007
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REVENUE
System sales $1,959 $1,564 $4,673 $5,122
Support and
processing 3,598 3,649 10,543 10,579
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5,557 5,213 15,216 15,701
Cost of revenue 3,328 3,030 9,612 9,519
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2,229 2,183 5,604 6,182
Sales and
marketing expenses 814 1,279 2,253 3,528
Software
development
expenses (net
of tax credit) 387 346 1,246 1,132
General and
administrative
expenses 1,196 794 2,927 3,094
Restructuring
charges - 4 (9) (117)
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Loss before the
undernoted items: (168) (240) (813) (1,455)
Depreciation of
property and
equipment 86 89 241 323
Amortization of
intangible assets 564 529 1,687 1,563
Interest expense (3) 66 (2) 116
Interest income (199) - (294) -
Loss on foreign
exchange 52 36 57 139
Loss on settlement
of lawsuit - - - 112
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Loss from continuing
operations before
income taxes (668) (960) (2,502) (3,708)
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Income taxes recovered - - (7,113) (3)
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Net earning (loss)
from continuing
operations (668) (960) 4,611 (3,705)
Net earnings (loss)
from discontinued
operations, net of
taxes (29) 651 32,364 3,435
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Net earnings (loss)
and comprehensive
income (loss) $(697) $(309) $36,975 $(270)
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Net earnings (loss)
per share - basic
From continuing
operations (0.00) (0.01) 0.03 (0.02)
From discontinued
operations (0.00) 0.01 0.21 0.02
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Net earnings (loss)
per share - basic (0.00) (0.00) 0.24 (0.00)
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Net earnings (loss)
per share - diluted
From continuing
operations (0.00) (0.01) 0.03 (0.02)
From discontinued
operations (0.00) 0.01 0.20 0.02
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Net earnings (loss)
per share - diluted (0.00) (0.00) 0.23 (0.00)
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Weighted average
Number of common
shares
outstanding -
basic 158,292,332 158,282,332 158,286,114 158,152,970
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Weighted average
number of common
shares
outstanding -
diluted 158,292,332 158,282,332 158,878,810 158,152,970
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MediSolution Ltd.
Consolidated Statements of Retained Earnings (deficit)
(unaudited)
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Nine months ended December 31 (in thousands of dollars) 2008 2007
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Deficit, beginning of period $(1,259) $(1,850)
Net earnings (loss) 36,975 (270)
Interest on share purchase financing - 9
Retained earnings (deficit), end of period $35,716 $(2,111)
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MediSolution Ltd.
Consolidated Balance Sheets (unaudited)
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As at (in thousands of dollars) December 31 , March 31,
2008 2008
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ASSETS
Current Assets
Cash $32,006 $1,404
Accounts receivable and accrued revenue 9,362 7,695
Tax credit receivable 1,038 660
Inventory 113 161
Sundry deposits and prepaid expenses 921 1,184
Deferred expenses 170 218
Current assets held for sale - 12,906
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43,610 24,228
Property and equipment 466 600
Intangible assets 5,882 6,056
Goodwill 5,022 5,022
Deferred expenses 842 1,373
Other long-term asset 75 162
Long-term assets held for sale - 8,682
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$55,897 $46,123
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LIABILITIES
Current Liabilities
Accounts payable and accrued liabilities $4,632 $6,876
Deferred revenue 3,045 5,450
Current liabilities related to assets held for sale - 17,891
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7,677 30,217
Deferred revenue 1,162 2,068
Long-term liabilities related to assets held for sale - 4,001
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8,839 36,286
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SHAREHOLDERS' EQUITY 47,058 9,837
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$55,897 $46,123
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MediSolution Ltd.
Consolidated Statements of Cash Flows (unaudited)
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(in thousands of dollars) Three months ended Nine months ended
December 31 December 31
2008 2007 2008 2007
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INFLOW (OUTFLOW) RELATED TO THE
FOLLOWING ACTIVITIES
Operating
Net earnings (loss) from
continuing operations $(668) $(960) $4,611 $(3,705)
Items not affecting cash:
Depreciation of property and
equipment 86 89 241 323
Amortization of intangible assets 564 529 1,687 1,563
Stock-based compensation 105 80 244 234
Non-cash portion of restructuring
charges - 4 (9) (117)
Changes in non-cash operating
working capital items (1,145) 204 (3,882) 2,368
Change in deferred revenue (1,497) (1,205) (3,312) (4,180)
Change in deferred expenses 143 (68) 579 452
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Cash flows from continuing
operations (2,412) (1,327) 159 (3,062)
Cash flows from discontinued
operations (29) (1,602) (2,958) 83
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(2,441) (2,929) (2,799) (2,979)
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Investing
Additions to property
and equipment (78) (68) (107) (246)
Additions to intangible assets,
net of tax credits (512) (599) (1,513) (1,663)
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Cash flows from continuing
operations (590) (667) (1,620) (1,909)
Cash flows from discontinued
operations - (330) 35,019 (875)
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(590) (997) 33,399 (2,784)
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Financing
Repayment of share purchase plan
loan - - - 800
Issuance of common shares - - 2 136
Interest on share purchase
financing - - - 9
Increase of short-term loans
Trilon Bancorp - 4,000 - 2,001
Increase (decrease) of short-term
loans - (171) - 2,206
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Cash flows from continuing
operations - 3,829 2 5,152
Cash flows from discontinued
operations - - - -
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- 3,829 2 5,152
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Increase (decrease) in cash and
cash equivalents (3,031) (97) 30,602 (611)
Cash, beginning of period 35,037 342 1,404 856
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Cash, end of period $32,006 $245 $32,006 $245
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Supplemental cash flow information
Interest paid $(3) $66 $1 $116
Interest received (153) - (247) -
Income taxes received - - - 3
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Contacts:
MediSolution Ltd
Paul Lepage
President and CEO
514-850-5040
info@medisolution.com
www.medisolution.com