QHR CORPORATION V.QHR

QHR loses $801,280 in Q1P

[luberon]

QHR loses $801,280 in Q1

Thursday May 28 2015 - News Release

Mr. Al Hildebrandt reports

QHR REPORTS RECORD REVENUE OF $7.6 MILLION FOR Q1 2015 AND 18% RECURRING REVENUE GROWTH

QHR Corp. has released its financial results for its quarter ended March 31, 2015. The Company reported year over year revenue growth of 10% to $7.6 million for Q1 2015 compared to $6.9 million in Q1 2014. The Company also reported an 18% increase in recurring revenue run rate to $24.8 million at the end of Q1 2015 compared to $21.0 million at the end of Q1 2014.

First Quarter 2015 Highlights:

Record first quarter revenues of $7.6 million, a 10% increase over Q1 2014 revenue of $6.9 million. Adjusted EBITDA(1) for Q1 2015 of $0.7 million or 9.4% of revenue compared to $20,029 or 0% for Q4 2014 and $1.0 million or 15.1% of revenue for Q1 2014. Recurring revenue run rate of $24.8 million, 82% of total revenue, up from 77% at the end of Q1 2014. Basic Earnings (Loss) per Share from continuing operations of ($0.02) for the quarter compared to ($0.00) for Q1 2014. As at March 31, 2015, Days Sales Outstanding ("DSO") was 46 days compared to 53 days at March 31, 2014. The Company closed the quarter with $13.8 million of cash and receivables.

"During this quarter, in a span of three weeks, we deployed the innovative 2015 release of our flagship software product, AccuroEMR, to all of our Accuro customers across Canada," said Mike Checkley, President of QHR Corporation. "We are very pleased with the continued growth of our recurring revenue base and intend to focus on growing our core Electronic Medical Records ("EMR") business."QHR recently announced that following a strategic review, it has decided to sell or wind down its Billing Services, Clearinghouse, Tradelink EDI, and related service products, ("RCM Assets") in the near future. In addition, QHR is continuing an internal restructure in an effort to focus on its core business and reduce costs. The Company continues to look for strategic partners to enhance client offerings as well as acquisition opportunities to increase its client base. To complete the disposition of the RCM Assets in a timely fashion, and to pay for related management and staff restructuring costs, QHR anticipates that it will incur one-time cash outlay in the range of $1.6 to $2.0 million. The Company will also take a non-cash impairment charge for intangibles and goodwill of a maximum $2.6 million which would be lowered by any amounts received from the sale of the RCM Assets.This restructuring is expected to achieve $1.6 to $2.0 million in annualized cost savings, beginning in the second half of 2015. The Company expects to see the positive impact in profitability beginning in Q3 of 2015.