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  • Significant growth and expansion to approximately $19.4 million in revenue representing a 12 per cent increase over 2019
  • Gross Margin of 61 per cent in high-margin software vertical compared to 58 per cent in 2019
  • Net cash used for operations of $9.1 million representing a reduction of $6.8 million compared to the prior year.
  • Net loss of $10.0 million representing an improvement of $3.2 million over the prior year net loss.
  • Improved adjusted EBITDA (a non-IFRS financial measure)[1] loss of $2.6 million with positive adjusted EBITDA of $0.1 million for the three months ending September 30, 2020

TORONTO, Jan. 28, 2021 /CNW/ – Think Research Corp. (TSXV: THNK) (“Think”), a company focused on transforming healthcare through integrated digital health solutions today released audited financial statements for the 12 months ending September 30, 2020.

These statements provide Think’s results for its 2020 fiscal year (October 1, 2019 – September 30, 2020), prior to Think’s go-public transaction which closed on December 23, 2020 and prior to the acquisitions of HealthCarePlus, Clinic 360 and MDBriefCase. Pursuant to Think’s go-public transaction, Think also changed its financial year end to December 31.

Think Research CEO, Sachin Aggarwal said, “I believe Think is well-positioned to drive value for its shareholders with gross margins that distinguish us from our digital health peers and strong revenues from top-tier health system clients, despite the challenges presented by the COVID-19 global pandemic. In my view, this solid foundation has positioned us as a unique digital health leader, in a distinct segment of the market, focused on getting clinical knowledge right so that everyone gets the best possible care. We aim to grow increasingly stronger as we strategically acquire and integrate companies aligned to that mission.”

2020 Financial/Business Highlights

Please see SEDAR for complete copies of audited September 30, 2020 annual financials.

____________________________
1 See “Non-IFRS Financial Measures”.
Year over YearQuarter over Preceding Quarter
Year Ended
September 30,
2020		Year Ended
September 30,
2019		Quarter Ended
September 30,
2020		Quarter Ended
June 30, 2020
In ThousandsIn ThousandsIn ThousandsIn Thousands
Revenue$19,444$17,306$3,969$4,351
Gross Profit$11,930$9,953$2,319$2,244
Gross Margin61%58%58%52%
Net Loss($10,016)($13,284)($778)($2,799)
EBITDA($6,882)($12,173)($19)($2,014)
Adjusted EBITDA($2,634)($10,994)$110($1,792)

Reconciliation of Net Loss to Adjusted EBITDA

Year over YearQuarter over Preceding Quarter
Year Ended
September 30,
2020		Year Ended
September 30,
2019		Quarter Ended
September 30,
2020		Quarter Ended
June 30, 2020
In ThousandsIn ThousandsIn ThousandsIn Thousands
Net Loss($10,016)($13,284)($778)($2,799)
Interest Expense$1,202$741$433$260
Income Taxes($24)$6($24)$0
Depreciation and
Amortization		$1,956$364$350$525
EBITDA($6,882)($12,173)($19)($2,014)
Stock Based
Compensation		$4,248$1,179$129$222
Adjusted EBITDA($2,634)($10,994)$110($1,792)

Subsequent events

  • December 23, 2020 closed go-public transaction with an oversubscribed equity private placement of approximately $33M in gross proceeds
  • December 23, 2020 completed the acquisition of HealthCarePlus, a chain of seven Toronto area digital-first primary, specialty and allied healthcare clinics
  • December 30, 2020 Think common shares commenced trading on TSX Venture Exchange as “THNK”
  • January 4, 2021 announced pending acquisition of Clinic 360, a Toronto surgical clinic specializing in elective surgeries
  • January 18, 2021 announced pending acquisition of MDBriefCase, uniquely positioning Think to deliver a full range of digital medical knowledge to healthcare providers

Outlook

New acquisitions have nearly doubled trailing pro forma annual revenue to more than $36M. Think’s acquisition funnel is robust and the company intends to remain active on that front with a strong conviction that it will continue to attract top-tier companies and talent. Think intends to leverage its existing products and network to drive growth across new and existing business lines. With a pipeline of organic growth opportunities amounting to significant potential revenues, Think intends to accelerate its development of real system solutions that serve hospitals, physicians and ultimately improve the cost and delivery of health care to patients. Think continues to maintain a disciplined approach to managing operating expenses with a view to improve overall EBITDA and operating cash flows.

The Company also announced today that it has made, and certain former shareholders of TRC Management Holdings Corp. (a predecessor to the Company) (“TRC”) have accepted, offers by to issue one common share in the capital of Think Research (each, a “Common Share”) as payment of the fair value of each common share in the capital of TRC in respect of which such shareholders had exercised dissent rights under the Business Corporations Act (Ontario). As a result, the Company will issue an aggregate of 229,102 Common Shares to such former shareholders of TRC.

About Think Research Corporation

Think Research is an industry leader in delivering integrated digital healthcare solutions. The Company’s focused mission is to organize the world’s health knowledge so everyone gets the best care. Its evidence-based healthcare technology solutions support the clinical decision-making process, standardize care, and improve patient outcomes. For over a decade, TRC’s cloud-based, EMR-agnostic digital tools have empowered clinicians around the world and impacted millions of patients across the continuum of care – from acute to primary, community and seniors care. The Company is proud to serve as a trusted health system partner to a rapidly growing global client base that spans three continents and more than 2,200 healthcare facilities.

Non-IFRS Financial Measures

Certain identified financial measures included in the press release do not have any standardized meaning under international financial reporting standards (“IFRS”) and therefore may not be comparable to similar measures presented by other issuers.

EBITDA is a Non-GAAP measure. Earnings before interest, tax, depreciation and amortization (“EBITDA”) should not be construed as an alternative to net income/loss determined in accordance with IFRS. The Company defines Adjusted EBITDA as EBITDA adjusted for stock based compensation. EBITDA does not have any standardized meanings under IFRS and therefore may not be comparable to similar measures presented by other issuers. The Company believes that Adjusted EBITDA is a meaningful financial metric as it measures cash generated from operations.

Forward Looking Statements

This press release contains “forward-looking statements” within the meaning of applicable securities laws. Forward-looking statements can be identified by words such as: “anticipate,” “intend,” “plan,” “budget,” “believe,” “project,” “estimate,” “expect,” “scheduled,” “forecast,” “strategy,” “future,” “likely,” “may,” “to be,” “could,”, “would,” “should,” “will” and similar references to future periods or the negative or comparable terminology, as well as terms usually used in the future and the conditional. Examples of forward-looking statements include, among others, Think’s expectations to drive value for its shareholders, acquisitions and the statements included under the heading “Outlook”.

By their nature, forward-looking statements involve known and unknown risks, uncertainties, changes in circumstances and other factors that are difficult to predict and many of which are outside of the Company’s control which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The Company’s actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause actual results and financial conditions to differ materially from those indicated in the forward-looking statements include, among others: the risks disclosed in the filing statement of Think’s predecessor dated November 27, 2020 filed under Think’s profile on SEDAR at www.sedar.com, including under the heading “Risk Factors”; and risks related to the ability of THNK to complete announced acquisitions in a timely manner, if at all, and on acceptable terms.

The Company has assumed that the material factors referred to above will not cause such forward-looking statements and information to differ materially from actual results or events, including that the announced acquisitions close on time and on the terms originally negotiated. However, there can be no assurance that such assumptions will reflect the actual outcome of such items or factors.

Other than as required under securities laws, the Company does not undertake to update this information at any particular time.

This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933 (the “US Securities Act”) or any states securities laws and may not be offered or sold within the United states or to US Persons (as defined in Regulation S under the US Securities Act) unless registered under the US Securities Act and applicable state securities laws or an exemption from such registration is available.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibilities for the adequacy or accuracy of this release.

SOURCE Think Research Corporation

For further information: Mark Sakamoto, EVP, Think Research, Direct: 647-691-6031, mark.sakamoto@thinkresearch.com