QHR Technologies Inc.
•TSXV: QHR
This presentation has been prepared by QHR Technologies Inc. using its best effortsto realistically and factually present the information contained. However,subjective opinion, dependence upon factors outside QHR Technologies Inc.’scontrol and outside information sources unavoidably dictate that QHRTechnologies Inc. can not warrant the information contained to be exhaustive,complete or sufficient. In addition, many factors can affect our business plan whichcould significantly alter the results intended by QHR Technologies Inc., renderingthe business plan unattainable or substantially altered. Therefore, interested usersshould conduct their own assessment and consult with their own professionaladvisors prior to making any investment decisions.
This business plan and presentation do not constitute a prospectus or publicoffering for financing, and no guarantees are made or implied with regard to thesuccess of QHR Technologies Inc.’s proposed ventures.
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Disclaimer
• High Growth and High Margin: Revenue CAGR of 30% over last 4 years; high growth rate expected to continue; EBITDA margin approx. 25%
• Recurring Revenue: Over 60% recurring revenue & 95% customer retention rate
• Market Leader in EMS: Full service offering (payroll, HR, staff scheduling & financials) is one of the leading software offerings which has resulted in significant RFP wins
• Market Leader in EMR: One of Canada’s largest Electronic Medical Records (EMR) platforms; Utilized by over 2,000 physicians with 1,000 additional physicians on legacy billing systems
• Resistant to Economic Downturns: Healthcare industry standard of care is maintained
• Highly Experienced Management Team
• Proven Consolidator: Ability to execute on accretive acquisitions
• Attractively valued compared to peers
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Investment Highlights
OptionsNumber
Exercise Price Expiry Date
1,400,000 $0.25 Jul 31, 2013
WarrantsNumber
Exercise Price Expiry Date
2,000,000$0.60 (1st Year)$0.70 (2nd Year)
June 30, 2011
Shares Issued28,053,259 Common Shares$9,851,745 Paid in Capital
Directors, Officers, Employees & FamilyApprox. 10M or 35% of Common Shares
Corporate Share Structure
• QHR Technologies Inc. (QHR) is a publicly traded Canadian company specializing in software designed to improve the efficiency of professionals in healthcare and other markets. The company currently offers an integrated Enterprise Management Solution (EMS) and an Electronic Medical Records (EMR) solution.
• EMS Division: Develops and delivers integrated human resource management, payroll, staff scheduling and financial software systems for the healthcare and social services sector
• EMR Division: Provides electronic medical records applications for physicians’ medical offices
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About QHR
QHR Technologies Inc. (QHR)Corporate Operations
QHR Software Inc.Quadrant HR TM
HR, Payroll, Staff Scheduling, Financials
Optimed Software Corporation
Accuro TM
Clinic & Physician Software
Cloudwerx Corp.Data Hosting Service
EMS division EMR division
Corporate Structure
Al Hildebrant – President & CEO• Started New Horizon Technologies in June 1997 which became QHR Software Inc. in June 2000 through a public
offering• Started Total Care Technologies in 1991, a healthcare staff scheduling software vendor (now Kronos)
Charles LaFlèche – Executive VP of Business Development• Founded Momentum Healthware Inc. in 1995 which became a Microsoft Gold business partner• Director of QHR since November 2006
Larry Smith – COO QHR Software• Former COO of Total Care Technologies and former President of Vadim Systems
Tom Mamic, CA – CFO• Former President and CEO of Agrisoma Biosciences Systems• Experience in a variety of managerial roles for both private and public technology companies
Fred Chapman – General Manager Optimed Software• Served in various roles at Clinicare from 1989-2005 including his most recent position as COO
Chairman of the Board: Douglas Blakeway Directors: Al Hildebrandt, Charles LaFlèche, Robert McGowan, Dr. Ernest Wigmore, Ian
MacPherson, Dr. Tom Kinahan, Victoria Withers
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Management & Directors
Revenue & EBITDA Growth
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
10,000,000
QHR Revenue
Recurring Revenue 2,250,000 3,000,000 3,800,000 4,800,000 2,966,512 4,987,932
Annual Revenue 4,228,705 4,721,439 5,893,650 6,521,364 4,480,366 9,980,328
2005 2006 2007 2008
9 Months
Ended
9/30/2008
9 Months
Ended
9/30/2009
-1,000,000
-500,000
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
QHR EBITDA
Annual EBITDA -580,000 -120,000 530,000 610,000 104,940 2,200,368
2005 2006 2007 2008
9 Months
Ended
9/30/2008
9 Months
Ended
9/30/2009
Q3 '06 Q4 '06 Q1 '07 Q2 '07 Q3 '07 Q4 '07 Q1 '08 Q2 '08 Q3 '08 Q4 '08 Q1 '09 Q2 '09 Q3 '09
Revenues 1,503,97 1,340,90 1,289,95 1,321,81 1,509,81 1,772,10 1,671,43 1,515,67 1,293,2 2,042,0 3,446,60 3,234,23 3,298,49
Proft (Loss) 227,065 16,434 17,563 21,233 60,888 112,871 126,988 11,032 -215,043 331,750 753,849 212,614 235,605
-500,000
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
QHR Technologies Jul 1/06-Sep 30/09
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Quarterly Revenue & Earnings
-
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
2005A 2006A 2007A 2008A 2009E 2010E
Recurring 2,250,000 3,000,000 3,800,000 4,800,000 7,200,000 12,500,000
Recurring Revenue
10
Recurring Revenue
EMS Division – Workforce Suite
*includes Staff Scheduling
Competition – Workforce Suite
EMS Division – Quadrant Financials
Competition – Financials Suite
Clients by Healthcare Sector
Market Footprint
QHR’s EMR DivisionClinic Software and Service
Recurring Revenue model
EMR Division
• Total of over 62,000 physicians in Canada
• Only approved EMR vendor in Saskatchewan and one of only 4 approved vendors in Manitoba
• 900 physicians on Optimed’s Accuro EMR (31% increase from 2008)
• Fully Functional & Integrated
• Well suited for specialists
• #1 ranked national EMR vendor according to Canadian EMR (www.canadianemr.ca)
Clinicare Acquisition:
• Has brought total physicians supported by QHR’s EMR system (Optimed) to over 3,000 with over 2,000 utilizing EMR
• Recurring EMR division revenue incl. Clinicare will be in excess of $6 mil. per year (total consolidated QHR 2010 recurring revenue will be over $12 mil.)
• Approved in Ontario (1 of 6) and Manitoba (1 of 4)
EMR Division – Optimed Software Corp.
Physicians
BC 9,600
AB 6,800
SK 1,750
18,150
MB 2,300
ON 23,683
25,983
=====
44,133
EMR Market: BC, AB, SK, MB, ON
• Acquisition of Clinicare makes QHR’s Optimed one of the most widely used EMR platforms by physicians in Canada
• Recurring revenue of over $6 mil. per year (incl. Clinicare)
• Manitoba Health announced Optimed as 1st “Approved” vendor
▫ Manitoba Market now open to Optimed; 2,300 doctors
• Saskatchewan SMA announced Optimed as 1st “Approved” & only vendor
▫ 760 doctors of 1,400 potential already supported by Optimed
• Calgary Scientific Inc. partnership for Optimed’s Accuro EMR Product
▫ Provides DI Image and report access via the Web and iPhone
▫ Exclusive on Sask, Manitoba & Quebec; Partnered in Alberta
• Clinicvault merging with SEBO hosting systems to form Cloudwerx
• QHR’s EMR platform is highly transferable to the U.S. market
EMR Division Highlights
Al Hildebrandt
President & CEO
Phone: (250) 979-1701
Cell: (250) 878-9100
E-mail: [email protected]
Contact
APPENDIX
#1 Whidden Systems (Mar 2003)
▫ DOS based payroll for 10,000 employees in NS and PEI
▫ $400k/year revenues, 6 employees
▫ Purchased for $250k over 2 years
#2 Accuro EMR product (Apr 2004)
▫ Purchased SW Asset from Optimedirect Corp (Dr. Tom Kinahan) $550k / 4 months
▫ Foundation EMR product for Optimed
▫ 5 of 7 staff still with Optimed
▫ 69 physician clients (65 still with Optimed)
#3 Medsoft Billing SW rights in Sask (Jun 2006)
▫ 488 doctors generating $23k/year
▫ Paid founder $125k over 3 ½ years
#4 Medicentre EMR product (formerly Rave) purchased from iQmedix (Oct 2006) in Sask
▫ $250k cash
▫ 1 support staff (still with Optimed)
#5 Exan DOS based Billing system in BC (my original ‘88-’91 Medical experience company)
▫ Announced as 150 doctors but in reality less than 40 doctors, mostly GP’s
▫ Paid $55k, no staff
#6 National Medical (Aug 2007)
▫ Purchased company, EMR software and 450 physicians clients in Alberta
▫ Announced by Wolf as acquisition on Feb 6/07, but that one fell apart by Jun 20/07
▫ By that time, all staff but 4 where gone (2 staff today)
▫ Paid 2M shares ($600k)
#7 Clinicvault Inc. (Sep 2008)
▫ EMR Hosting operations for 5 EMR products, 5 staff (4 staff today)
▫ Paid $600k in debt assumption & shares
#8 Momentum Financial product (Jan 2009)
▫ Paid $5M + $1.7M debt assumption
▫ Strong Microsoft alliances
▫ 30% of clientbase already overlapped
▫ Overlap in $25M LTC Ontario Market & RFP’s
▫ 7 staff, Winnipeg office (now 10)
#9 Cloudwerx Data Solutions (July 2009)
▫ Purchased SEBO data centre assets and clientbase
▫ $455,000 (700,000 QHR shares @ $0.65)
▫ 5 staff, Calgary office
#10 Clinicare Corporation (Dec 2009)
▫ Paid $5.3M including $1.8M debt assumption
▫ 1,450 doctors, 26 year old EMR pioneer
▫ Inherited 35 staff, Calgary office (now 27)
Acquisition History