Quipt Home Medical Corp. (the “
Company”)
(NASDAQ:QIPT; TSXV:QIPT), a U.S. based leader in the home medical
equipment industry, focused on end-to-end respiratory care, today
announced its second quarter fiscal 2021 financial results and
operational highlights. These results pertain to the three and six
months ended March 31, 2021 and are reported in U.S. Dollars.
Quipt will host its Quarterly Earnings Conference Call on
Tuesday, June 1, 2021 at 10:00 a.m. (ET). The dial-in number is 1
(800) 319-4610 or 1 (604) 638-5340.
Financial Highlights:
- Revenue for Q2 2021 was $24.2
million compared to $17.9 million for Q2 2020, representing a 36%
increase in revenue year-over-year. Compared to Q2 2020, the
Company experienced strong organic growth of 11%. For YTD 2021 the
Company experienced 13% organic growth as compared to the
corresponding period in 2020.
- Recurring Revenue as of Q2 2021
continues to be strong and exceeds 75% of total revenue.
- Adjusted EBITDA for Q2 2021 was
$5.4 million (22.2% margin), compared to Adjusted EBITDA for Q2
2020 of $4.2 million, representing an 28% increase
year-over-year.
- Cash flow from continuing
operations was $6.6 million in Q2 2021 compared to $5.2 million in
Q2 2020, an increase of 28%.
- The Company reported $27.2 million
of cash on hand as at March 31, 2021 compared to $23.6 million at
December 31, 2020.
- The Company has an undrawn credit
facility of $20 million as at March 31, 2021.
Operational
Highlights:
- Through the Company’s continued use
of technology and centralized intake processes, respiratory
resupply set-ups and/or deliveries increased to 35,702 for the
three months ended March 31, 2021, compared to 13,980 for the same
period ended March 31, 2020, an increase of 155%.
- The Company’s customer base
increased 41% year over year to 56,972 unique patients served in Q2
2021 from 40,372 unique patients in Q2 2020.
- Compared to 63,956 unique
set-ups/deliveries in Q2 2020, the Company completed 83,606 unique
set-ups/deliveries in Q2 2021, an increase of 31%.
- The Company continues to experience
robust demand for respiratory equipment, such as Oxygen
Concentrators, Ventilators, as well as the CPAP resupply and other
supplies business.
- The Company has resumed expanding
its sales reach across eleven U.S. states by the addition of
experienced sales personnel.
- The Company opened a new location
in Daytona Beach, Florida, and Concord, New Hampshire. Each
location has a heavily respiratory weighted product mix and is
expected to help the Company reach surrounding areas at an
accelerated pace, as well as cut down on logistical
costs.
Subsequent Events to the three months
ended March 31, 2021:
- On May 13, 2021, the Company
changed its name from Protech Home Medical Corp. to Quipt Home
Medical Corp. The Company carries on the historical patient centric
model to meet the one-of-a-kind needs of every patient in its
ecosystem.
- On May 13, 2021, the Company
consolidated its issued and outstanding common shares based on one
post-consolidation common share for every four pre-consolidation
common shares. The share consolidation was completed in
anticipation of the Company’s application to list its common shares
on the NASDAQ Capital Market (“NASDAQ”).
- On May 27, 2021 the Company
commenced trading on NASDAQ.
Management
Commentary:
“Our record second quarter financial and operating results
speak to the continued strength and consistency of our business
model. The demand we are seeing across our product mix continues to
be robust, and we are pleased to see the strong rebound within our
sleep business with the easing of restrictions across our operating
footprint. As evidenced by our results, home health continues to
experience structural tailwinds, which we expect to provide our
business extraordinary opportunity for years to come,” said CEO and
Chairman Greg Crawford. “With our rebranding process behind us, we
are incredibly enthused to leverage our new name and the existing
highly scalable infrastructure platform we have built to accelerate
growth. The platform we have allows for organic and inorganic
growth to be efficiently layered on to generate economies of scale.
We have applied financial resources and operating expertise to
build this unparalleled platform which is paramount to executing on
our vision. This is a model which we will utilize in our mission to
build-out our operating footprint across the country as we scale
into a national provider over time.
“Combining our patient centric model, highly scalable platform,
strong financial resources, and incredible team, we have the
ability make sizeable acquisitions and integrate with ease within
new and existing markets. Given the numerous ongoing initiatives at
the company level to push our strategy forward, and the most
bullish regulatory environment in a decade, our path forward is
clear, and we look forward to scaling our business aggressively in
the coming months. A special thank you to our entire team, whose
unwavering dedication to providing superior clinical care has once
again set our business up for success.”
Chief Financial Officer Hardik Mehta added, “I
am very proud of our record breaking second quarter financial and
operating results, as well as our completed listing on the NASDAQ.
As for our results, we are very pleased to see our sustained margin
acceleration as we scale the business and also are encouraged by
the strong recurring revenue growth that we experienced in the
first half of the year. We are also proud of the 13% organic growth
achieved year-to-date, and believe with the many organic growth
initiatives underway we can continue to build upon this as we move
through the year. As it relates to our NASDAQ listing, this is an
extraordinary milestone achieved for the Company and its
shareholders, and we feel it will assist us in unlocking
shareholder value over the long term.
“The infrastructure we have in place allows us
to continue to execute our vision operationally, including the
addition of two new de-novo locations in the quarter, to build out
the operating footprint further. We also anticipate growing our
scale by integrating the Quipt name into local markets over time
and are excited about our pipeline of acquisitions. We think we
have the potential to have a very busy second half of the year on
the acquisition front.”
The financial statements of the Company for the
three and six months ended March 31, 2021 and 2020 and accompanying
Management Discussion & Analysis (MD&A) are available
at www.sedar.com.
ABOUT QUIPT HOME MEDICAL CORP.
The Company provides in-home monitoring and
disease management services including end-to-end respiratory
solutions for patients in the United States healthcare market. It
seeks to continue to expand its offerings to include the management
of several chronic disease states focusing on patients with heart
or pulmonary disease, sleep disorders, reduced mobility and other
chronic health conditions. The primary business objective of the
Company is to create shareholder value by offering a broader range
of services to patients in need of in-home monitoring and chronic
disease management. The Company’s organic growth strategy is to
increase annual revenue per patient by offering multiple services
to the same patient, consolidating the patient’s services and
making life easier for the patient.
Forward-Looking
Statements
Certain statements contained in this press
release constitute "forward-looking information" as such term is
defined in applicable Canadian and United States securities
legislation. The words "may", "would", "could", "should",
"potential", "will", "seek", "intend", "plan", "anticipate",
"believe", "estimate", "expect" and similar expressions as they
relate to the Company, including: the Company’s new locations
helping the Company to reach surrounding areas at an accelerated
pace, as well as cut down on logistical costs; the Company
expecting home health to continue to provide it with extraordinary
opportunity for years to come; the Company building out its
operating footprint across the country and scaling into a national
provider over time; the Company scaling its business aggressively
in the coming months; the Company believing that it can continue
to build upon its organic growth through the year; the NASDAQ
listing unlocking shareholder value over the long term; are
intended to identify forward-looking information. All statements
other than statements of historical fact may be
forward-looking information. Such statements reflect the
Company's current views and intentions with respect to future
events, and current information available to the Company, and
are subject to certain risks, uncertainties and assumptions.
Many factors could cause the actual results, performance or
achievements that may be expressed or implied by such
forward-looking information to vary from those described herein
should one or more of these risks or uncertainties materialize.
Examples of such risk factors include, without limitation:
credit; market (including equity, commodity, foreign exchange
and interest rate); liquidity; operational (including technology
and infrastructure); reputational; insurance; strategic;
regulatory; legal; environmental; capital adequacy; the general
business and economic conditions in the regions in which the
Company operates; the ability of the Company to execute on key
priorities, including the successful completion of acquisitions,
business retention, and strategic plans and to attract, develop
and retain key executives; difficulty integrating newly acquired
businesses; the ability to implement business strategies and
pursue business opportunities; low profit market segments;
disruptions in or attacks (including cyber-attacks) on the
Company's information technology, internet, network access or
other voice or data communications systems or services; the
evolution of various types of fraud or other criminal behavior
to which the Company is exposed; the failure of third parties to
comply with their obligations to the Company or its
affiliates; the impact of new and changes to, or application of,
current laws and regulations; decline of reimbursement rates;
dependence on few payors; possible new drug discoveries; a novel
business model; dependence on key suppliers; granting of
permits and licenses in a highly regulated business; the overall
difficult litigation environment, including in the United
States; increased competition; changes in foreign currency rates;
increased funding costs and market volatility due to market
illiquidity and competition for funding; the availability of funds
and resources to pursue operations; critical accounting
estimates and changes to accounting standards, policies, and
methods used by the Company; the occurrence of natural and
unnatural catastrophic events and claims resulting from such
events; and risks related to COVID-19 including various
recommendations, orders and measures of governmental
authorities to try to limit the pandemic, including travel
restrictions, border closures, non-essential business
closures, quarantines, self-isolations, shelters-in-place and
social distancing, disruptions to markets, economic activity,
financing, supply chains and sales channels, and a deterioration
of general economic conditions including a possible national
or global recession; as well as those risk factors discussed or
referred to in the Company’s disclosure documents filed with
United States Securities and Exchange Commission and available at
www.sec.gov, and with the securities regulatory authorities in
certain provinces of Canada and available at www.sedar.com. Should
any factor affect the Company in an unexpected manner, or
should assumptions underlying the forward-looking information
prove incorrect, the actual results or events may differ
materially from the results or events predicted. Any such
forward-looking information is expressly qualified in its
entirety by this cautionary statement. Moreover, the Company
does not assume responsibility for the accuracy or
completeness of such forward-looking information. The
forward-looking information included in this press release is
made as of the date of this press release and the Company
undertakes no obligation to publicly update or revise any
forward-looking information, other than as required by applicable
law.
Non-GAAP Measures
This press release refers to “Adjusted EBITDA”
which is a non-GAAP and non-IFRS financial measure that does not
have a standardized meaning prescribed by GAAP or IFRS. The
Company’s presentation of this financial measure may not be
comparable to similarly titled measures used by other companies.
This financial measure is intended to provide additional
information to investors concerning the Company’s performance.
Adjusted EBITDA is defined as EBITDA excluding stock-based
compensation. Adjusted EBITDA is a Non-IFRS measure the Company
uses as an indicator of financial health and excludes several items
which may be useful in the consideration of the financial condition
of the Company, including interest expense, income taxes,
depreciation, amortization, stock-based compensation, goodwill
impairment and change in fair value of debentures and financial
derivatives. The following table shows our Non-IFRS measure
(Adjusted EBITDA) reconciled to our net income for the indicated
periods:
|
|
Three months ended March 31, 2021 |
|
Three months ended March 31, 2020 |
|
Six months ended March 31, 2021 |
|
Six months ended March 31, 2020 |
|
Net income (loss) from continuing operations |
|
$ |
(12,490 |
) |
$ |
3,078 |
|
$ |
(11,125 |
) |
$ |
(670 |
) |
Add back: |
|
|
|
|
|
Depreciation and amortization |
|
|
3,940 |
|
|
3,384 |
|
|
7,621 |
|
|
6,946 |
|
Interest expense, net |
|
|
513 |
|
|
461 |
|
|
999 |
|
|
918 |
|
Gain (loss) on foreign currency transactions |
|
|
98 |
|
|
(981 |
) |
|
100 |
|
|
(596 |
) |
Change in fair value of debentures and derivative |
|
|
13,297 |
|
|
(1,895 |
) |
|
14,280 |
|
|
(1,364 |
) |
Provision (benefit) for income taxes |
|
|
- |
|
|
33 |
|
|
(1,407 |
) |
|
33 |
|
EBITDA |
|
|
5,358 |
|
|
4,080 |
|
|
10,468 |
|
|
5,267 |
|
Stock-based compensation |
|
|
12 |
|
|
68 |
|
|
27 |
|
|
101 |
|
Adjusted EBITDA |
|
$ |
5,370 |
|
$ |
4,148 |
|
$ |
10,495 |
|
$ |
5,368 |
|
Management uses this non-IFRS measure as a key
metric in the evaluation of the Company’s performance and the
consolidated financial results. The Company believes this non-IFRS
measure is useful to investors in their assessment of the operating
performance and the valuation of the Company. In addition, this
non-IFRS measure addresses questions the Company routinely receives
from analysts and investors and, in order to assure that all
investors have access to similar data, the Company has determined
that it is appropriate to make this data available to all
investors. However, non-IFRS financial measures are not prepared in
accordance with IFRS, and the information is not necessarily
comparable to other companies and should be considered as a
supplement to, not a substitute for, or superior to, the
corresponding measures calculated in accordance with
IFRS.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
For further information please visit our website
at www.Quipthomemedical.com, or contact:
Cole StevensVP of Corporate DevelopmentQuipt Home Medical
Corp.859-300-6455cole.stevens@myquipt.com
Gregory CrawfordChief Executive OfficerQuipt Home Medical
Corp.859-300-6455investorinfo@myquipt.com
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