Earnings Release • Feb 13, 2019
Earnings Release
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Oslo, Norway – February 13, 2019 – Apptix ASA® (OSE: APP), announced its unaudited financial results for the three and twelve months ended December 31, 2018.
Evimeria EMR AB continued its strong development in growth and profitability during the fourth quarter 2018.
For the full year 2018 revenues grow 46 % to SEK 41,2 (28,1) million and EBITDA grow 41 % to 8,1 SEK million (5,7)
Overview of Fourth Quarter 2018 consolidated results for Apptix ASA:
Evimeria continued its strong growth in the Swedish market during the fourth quarter in 2018. During the quarter 21 new clinics signed up as customers and the Company continuously developed and delivered add on services to existing customers.
The Company also launched two new integrated services, Bank-ID access and Self-service terminal. The total number of integrated services now exceeds 70.
As a result, the revenue growth was 45,6 % compared to fourth quarter 2017. The scalability of the business and delivery model continues to increase earnings.
During the fourth quarter, the Company has also conducted an analysis regarding market conditions and potential in the occupational health service market in Sweden. Given the potential, a structured process has been initiated to develop and adjust services and software for this market. The Company expects to launch this later this year.
Evimeria believes market conditions in Sweden to remain strong, driven by the general digitalization trend, continued growth within the private healthcare sector and a superior scalable service offering.
The Company will continue to pursue investments in new market geographies and segments. Evimeria expects to enter into the Norwegian private healthcare sector during 2019 and will also start to address the occupational health service market in Sweden.
During 2019, Evimeria expects to sign more than one new clinic per week, achieve revenue growth in the 50% range along with triple digit growth in EBITDA.
Revenue for the fourth quarter of 2018 totaled NOK 11,0 million as compared to no revenues during the fourth quarter 2017. All revenues are related to Evimeria EMR AB. Evimeria EMR AB was acquired in May 2018 and has been consolidated in Apptix from that date.
Operating expenses for the fourth quarter of 2018 totaled NOK 9,0 million as compared NOK 1,0 million during the fourth quarter of 2017. Operating expenses excludes cost of sales and amortizations. The operating expenses relates to two different areas.
NOK 8,1 million of the operating expenses for the fourth quarter of 2018 relates to Evimeria EMR AB. NOK 0,9 million consists of professional fees (legal, accounting and consulting) along with public Company costs such as stock exchange registration, insurance and board remuneration fees.
Operating loss for the fourth quarter of 2018 totaled NOK 0,8 million as compared to an operating loss of NOK 1,0 million during the fourth quarter of 2017.
Other expenses for the fourth quarter of 2018 totaled NOK 0,0 million as compared to a gain of NOK 19,0 million during the fourth quarter of 2017. Other expenses in the fourth quarter of 2017 consists mainly of gain from Fusion share transactions.
Net loss for the fourth quarter of 2018 totaled NOK 1,4 million as compared to a net profit of NOK 18,0 million during the fourth quarter of 2017.
The Company ended the fourth quarter of 2018 with NOK 8,8 million of available cash balances and outstanding debt of NOK 3,2 million.
The enclosed consolidated condensed financial statements have been prepared in accordance with IAS 34 - Interim Financial Reporting Standards (IFRS).
The accounting policies and methods of computation used in the preparation of the enclosed financial statements are consistent with the policies used in the annual financial statements for the year ended December 31, 2017. Except for the adoption of new standards effective as of 1 January 2018. The group applies, for the first time, IFRS 15 Revenue from Contracts with Customers, IFRS 9 Financial instruments and a number of other amendments and interpretations. The new standards have no impact on the interim condensed financial statements of the Company. The enclosed consolidated condensed financial statements should be read in conjunction with the Company's 2017 annual financial statements, which include a full description of the Company's accounting policies. The enclosed consolidated condensed financial statements are unaudited. Because of rounding differences, numbers or percentages may not add up to the total.
The financial statements are attached.
| Three Months Ended | ||
|---|---|---|
| December 31, 2018 | December 31, 2017 | |
| (Amounts in NOK 1,000) | IFRS | IFRS |
| Total Operating Revenues | 11 034 | - |
| Total Cost of Sales | 2 080 | - |
| Gross Profit | 8 955 | - |
| Operating Expenses | ||
| Employee Compensation and Benefits | 5 777 | 188 |
| Other Operational and Administrative Costs | 2 673 | 841 |
| Depreciation and Amortization | 1 294 | - |
| Total Operating Expenses | 9 744 | 1 029 |
| Operating Income | (790) | (1 029) |
| Other Expense | ||
| Interest, net | (37) | (16) |
| Foreign Exchange Income / (Loss), net | - | - |
| Other Financial Income | 19 032 | |
| Total Other Expense | (37) | 19 016 |
| Income Before Income Taxes | (827) | 17 987 |
| Income Tax Expense | (577) | - |
| Net Income for the Period | (1 404) | 17 987 |
| Earnings Per Share: Basic |
-0,01 | 0,22 |
| Diluted | -0,01 | 0,22 |
| Weighted Average Common Shares Outstanding | 162 535 | 81 430 |
| 12 Months Ended | ||
|---|---|---|
| December 31, 2018 | December 31, 2017 | |
| (Amounts in NOK 1,000) | IFRS | IFRS |
| Total Operating Revenues | 26 539 | - |
| Total Cost of Sales | 5 032 | - |
| Gross Profit | 21 507 | - |
| Operating Expenses | ||
| Employee Compensation and Benefits | 13 480 | 917 |
| Other Operational and Administrative Costs | 11 291 | 4 883 |
| Depreciation and Amortization | 3 534 | - |
| Total Operating Expenses | 28 305 | 5 801 |
| Operating Income | (6 798) | (5 801) |
| Other Expense | ||
| Interest, net | (44) | - |
| Foreign Exchange Income / (Loss), net | - | - |
| Other Financial Income | - | 26 235 |
| Total Other Expense | (44) | 26 235 |
| Income Before Income Taxes | (6 842) | 20 434 |
| Income Tax Expense | (276) | - |
| Net Income for the Period | (7 118) | 20 434 |
| Earnings Per Share: Basic |
-0,06 | 0,25 |
| Diluted | -0,06 | 0,25 |
| Weighted Average Common Shares Outstanding | 124 508 | 81 430 |
| december - 31 | december - 31 | |
|---|---|---|
| 2018 | 2017 | |
| (Amounts in NOK 1,000) | IFRS | IFRS |
| ASSETS | ||
| Non-Current Assets | ||
| Customer Relationships | 20 044 | - |
| WebDoc | 14 749 | - |
| Goodwill | 52 657 | - |
| Total Intangible Assets, net | 87 450 | - |
| Inventory, Tools & Installations | 678 | - |
| Investment Available for Sale at Cost | - | - |
| Total Non-Current Assets | 88 127 | - |
| Current Assets | ||
| Customer Receivables | 8 630 | - |
| Other Receivables | 648 | - |
| Prepaid Expenses | 765 | 57 |
| Cash and Cash Equivalents | 8 773 | 61 716 |
| Total Current Assets | 18 815 | 61 773 |
| TOTAL ASSETS | 106 942 | 61 773 |
| LIABILITIES AND SHAREHOLDERS EQUITY | ||
| Equity Attributed to Equity Holders of the Parent | ||
| Common Stock | 54 124 | 38 314 |
| Paid-in Premium Reserve | 32 239 | 392 926 |
| Other Paid-in Capital | 48 | 50 943 |
| Current Period Retained Earnings | (6 939) | (420 919) |
| Total Shareholders Equity | 79 472 | 61 264 |
| Non-Current Liabilities | ||
| Other Liabilities to Credit Institutions | 3 227 | - |
| Deferred Tax Liabilities | 6 711 | - |
| Total Long-Term Debt | 9 938 | - |
| Current Liabilities | ||
| Trade Accounts Payable | 5 501 | 8 |
| Accrued Expenses and Prepaid Income | 9 834 | - |
| Other Current Liabilities | 2 197 | 501 |
| Total Current Liabilities | 17 531 | 509 |
| TOTAL LIABILITIES AND EQUITY | 106 942 | 61 773 |
Apptix ASA Fourth Quarter and Full Year 2018 Earnings Report Page 6
| Twelve Months Ended December 31 | ||
|---|---|---|
| 2018 | 2017 | |
| (Amounts in NOK 1,000) | IFRS | IFRS |
| Cash Flows from Operating Activities | ||
| Earnings Before Taxes | (6 842) | 20 434 |
| Stock Based Compensation Expense | - | |
| Depreciation and Amortization | 3 534 | - |
| Goodwill Impairment | - | - |
| Proceeds from the sale of Fusion Shares | - | 57 734 |
| Gain on Sale of Subsidiary | - | - |
| Change in Accounts Receivable | (4 713) | - |
| Change in Accounts Payable | 2 789 | (479) |
| Net Gain Receivable on Sale of Fusion Shares | - | (26 235) |
| Change in Current Assets & Liabilities | 5 636 | (645) |
| Cash Flows Provided by Operating Activities | 404 | 50 809 |
| Interest Received | - | |
| Interest Paid | (44) | - |
| Income Tax Paid and accounting dispositions | - | - |
| Net Cash Flows Provided by Operating Activities | 360 | 50 809 |
| Cash Flows from Investing Activities | ||
| Purchase of Evimeria AB, net of cash from Evimeria | (21 310) | - |
| Investments in intangiable assets | (2 695) | - |
| Cash Flows Used in Investing Activities | (24 005) | - |
| Cash Flows from Financing Activities | ||
| Return of Capital to Shareholders | (28 562) | - |
| Distribution of Paid in Captial | (737) | - |
| Cash Flows Used in Financing Activities | (29 299) | - |
| Effect of Exchange Rates on Cash and Cash Equivalents | - | 99 |
| Net Change in Cash and Cash Equivalents | (52 944) | 50 908 |
| Cash and Cash Equivalents at Beginning of Period | 61 716 | 10 808 |
| Cash and Cash Equivalents at End of Period | 8 773 | 61 716 |
Founded in 1997, Apptix ASA was previously the parent company of Apptix, Inc. Apptix withdrew from the US market in 2017. In May 2018 Apptix acquired the Swedish companyCompany Evimeria EMR AB, a company providing cloud-based medical record services to the health care industry. The Company's strategy is to continue to develop and expand digitalization that helps customers to meet challenges in providing efficient and qualitative health care services. For more information, visit www.apptixasa.no.
Johan Lindqvist (Chairman) [email protected] +46 733 55 09 35
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