According to a report from Marcus & Millichap, the seniors housing market grew in 2015, driven by a positive outlook on the U.S.’s housing market and strong demographic trends.
The report noted that home prices across the U.S. have now surpassed pre-recession levels in many metros. This has encouraged some seniors to monetize the buildup in equity and re-deploy sales proceeds into smaller, age-restricted housing, the report added.
Favorable demographic trends are also benefiting the seniors housing market. According to the Marcus & Millichap report, the number of individuals aged 50 and older has climbed 50% since the start of this millennium and now accounts for a third of the U.S. population.
The favorable demographics and ongoing improvement in the housing market augurs well for Vigil Health Solutions Inc. (TSX-Venture:VGL), a provider of comprehensive solutions to the expanding seniors’ housing market.
Based in Victoria, British Columbia, Vigil Health Solutions’ product range includes the innovative wireless Vitality Care System(TM), which features discreet mini pendants, a nurse call system, mobile fall/incontinence monitoring, resident check-in and the award-winning Vigil Dementia System.
VGL shares have surged in trading today after the company reported an increase in its bookings, revenue and earnings for the December quarter. For the quarter, VGL’s earnings rose 271% to $159,000. For the same period last year, VGL had reported earnings of $43,000.
The company’s revenue for the quarter was $1.40 million, compared to $1.22 million reported for the same period in the previous year.
VGL’s sales bookings for the quarter rose 42% to $1.47 million. Backlog at the end of the quarter was $3.77 million, up from $2.71 million reported at the end of the December quarter in the previous year.
Project revenue accounted for 56% of VGL’s total revenue in the December quarter. The rest of the revenue came from follow-on sales to the company’s existing customers. Follow-on sales include service and maintenance billings and replacement products including wireless devices and communication equipment.
Troy Griffiths, President & CEO at Vigil Health Solutions, said that the company had a strong December quarter as projects that were delayed in the previous quarter due to changes in construction schedules were completed and revenue recognized.
Griffiths further said that VGL’s management is focused on increasing sales to minimize fluctuations in revenue and the strong December quarter has also resulted in revenue and earnings surpassing that of the competitive nine-month period.
