QHR 2011 Q3 FINANCIAL RESULTS

Year to date revenues of $17.2 million, an increase of $2.8 million over prior year

KELOWNA, BC, November 17, 2011 – (TSX-V: QHR) QHR Technologies Inc. (“QHR” or the “Company”) a leader in the Canadian Healthcare Information Technology sector, is pleased to announce today the release of its third quarter financial statements for September 30, 2011 and continuing progress in its growth targets. Total revenue for the quarter was $5.5 million, an increase of $0.9 million over the $4.6 million reported in the same 2010 period. Net earnings for the quarter were $0.1 million compared to a loss of $0.1 million for the comparative period in 2010. The Enterprise Management Solutions (“EMS”) division reported revenue of $2.8 million; the Electronic Medical Record (“EMR”) division reported $2.3 million and the (“Hosting”) division had revenues of $0.4 million.

HIGHLIGHTS:

  • On July 25th the Company (through a wholly owned subsidiary) became the secured creditor of Healthscreen Solutions Inc., when it acquired two debentures for a total of $5.1 million
  • On September 1st the Company received Conditional Approval from OntarioMD as having passed the requirements in order to be an eligible vendor under the new Specification 4.0 program
  • On September 2nd a Receiver was appointed to manage the process of selling the assets of Healthscreen Solutions Inc., which was indebted to QHR (through a wholly owned subsidiary)
  • From September 15th to 17th the Company hosted its annual EMR User Conference which took place in Kelowna and saw more than 270 physician and clinic managers attend from across Canada
  • All operating divisions for the quarter reported revenue increases over the prior period quarter
  • As at September 30, 2011, recurring revenues have reached approximately $12.8 million on an annualized basis compared to $12.0 million for the same period last year.

Revenues

The Company recorded $5.5 million in revenue for the three months ending September 30, 2011 compared to $4.6 million for the three months ending September 30, 2010 an increase of 18%, and revenues of $17.2 for the nine month period ending September 30, 2011 compared to $14.4 million for the same period in 2010, an increase of 20%.

The EMS division revenue for the second quarter was $2.8 million compared to $2.4 million for the same period last year, an increase of 18%.

The EMR division revenue for the second quarter was $2.3 million compared to $2.0 million for the same period last year, an increase of 16%.

The Hosting division revenue for the second quarter was $0.4 million compared to $0.3 million for the same period last year, an increase of 33%.

Operating Expenses

Operating expenses including cost of goods sold were $4.8 million for the three months ending September 30, 2011 compared to $4.1 million for the same period in 2010, an increase of 17%. Included in the operating expenses for this period, is $0.1 million directly related to the legal and other associated expenses associated with realizing on the Healthscreen debentures and $0.1 million related to the non-recoverable cost of the EMR User Conference.

Other Expenses

Other expenses including stock-based compensation, amortization, interest and foreign exchange were $0.4 million for the three months ending September 30, 2011 compared to $0.6 million for the same period in 2010.

Earnings

Net earnings for the three months ended September 30, 2011 were $0.1 million or $0.00 per share compared to a loss of $0.1 million or $0.00 per share in 2010, an increase of $0.2 million. The net earnings for the nine months ended September 30, 2011 were $1.2 million or $0.03 per share compared to a loss of $0.1 million or $0.00 per share in 2010, an increase of $1.3 million.

EBITDA(1) for the three months ended September 30, 2011 were $0.7 million or $0.02 per share compared to $0.5 million or $0.02 per share for the same period in 2010. EBITDA(1) for the nine months ended September 30, 2011 were $2.7 million or $0.06 per share compared to $1.7 million or $0.06 per share for the same period last year an increase of $1.0 million or 60%.

Financial Position

The September 30, 2011 current assets of $11.0 million consists of $0.7 million in cash and $5.4 million of investment in secured debentures, and $3.6 million in accounts receivable, providing a strong working capital balance.

Financial Guidance

The Company reconfirms its 2011 financial guidance; revenues for the fiscal year ended December 31, 2011 are expected to be within the range of $23.0 million. The revenues, expenses and net earnings are consistent with the financial budget for the period to date.

For a more complete business and financial profile of the Company, management encourages interested parties to visit the Company’s website: www.QHRtechnologies.com

On behalf of the Board of Directors,

Al Hildebrandt, President and CEO