Quipt Home Medical Corp. (“
Quipt” or the
“
Company”) (NASDAQ:QIPT; TSXV:QIPT), a U.S. based
leader in the home medical equipment industry, focused on
end-to-end respiratory care, is pleased to announce that it has
recently acquired a business with operations in Missouri, reporting
unaudited trailing 12-month annual revenues of approximately $5.5
million, and Adjusted EBITDA (defined below) of $1.1 million
expected, post integration. As a reminder all figures stated are in
USD.
Acquisition
Details
The acquisition adds three locations, 15,000
active patients, 1,500 unique referring physicians, important
insurance contracts and decades of operating experience, with an
over 40-year operating track record in the markets served. The
acquisition provides Quipt the ability to quickly expand on the
recently acquired business in Missouri and gives meaningful
exposure to a major U.S. city. The business has a diverse payor mix
and traditional durable medical equipment product mix.
The Company is pleased to share the following
updated metrics for the Company on a consolidated basis taking into
consideration the three businesses recently acquired (including the
acquisition disclosed herein):
- 145,000 current active
patients;
- 18,500 referring physicians;
and
- 60 locations across 15 U.S.
States.
Under the terms of the definitive purchase
agreement, Quipt acquired the business for approximately $2.25
million in cash. It is expected that the acquisition will increase
Quipt’s annual revenues by approximately $5.5 million and, post
integration, increase Quipt’s Adjusted EBITDA (as defined below) by
$1.1 million.
Management
Commentary
“We continue to focus on strategic acquisitions
that help to build our footprint across the United States. The
addition of 15,000 patients and 1,500 referring physicians
significantly strengthens our overall interconnected healthcare
network and the fast-paced expansion in Missouri will serve as a
foundation for other new states, where we can grow through
economical bolt-on acquisitions that provide us important insurance
contracts,” said Greg Crawford, Chairman and CEO of Quipt. “Our
continued dedication to superior patient care is helping us build
market share across our geographies and we are excited to continue
filling in the map. As we look at the last 90 days, not only have
we accomplished a major milestone of listing on NASDAQ, but we have
also completed four acquisitions with combined revenue of over $11
million, expanding us into four new states.
Chief Financial Officer, Hardik Mehta added, “We
are able to add a metro hub to our operating footprint and $5.5
million in revenue providing us additional meaningful
infrastructure in Missouri. As we continue to work through our
acquisition pipeline, we are enthused to have the opportunity to
penetrate existing and new states building scale both organically
and through strategic bolt-on opportunities. While we accelerate
our pace on acquisitions, I want to reiterate that we will continue
our disciplined approach that has been very successful in growing
shareholder value.
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.
There can be no assurance that any future
acquisitions will be completed as proposed or at all and no
definitive agreements have been executed. Completion of any
transaction will be subject to applicable director, shareholder and
regulatory approvals.
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.
Forward-Looking
Statements
Certain statements contained in this press
release constitute "forward-looking information" as such term is
defined in applicable Canadian 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: post
integration financials results of Quipt; Quipt growing through
economical bolt-on acquisitions that provide important insurance
contracts; the Company’s acquisition approach; the Company
accelerating its pace on acquisitions; and the amount the Company
expects its annual revenues and Adjusted EBITDA will increase as a
result of the acquisitions of the combined entities; 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, including: the acquisition targets achieving results
at least as good as historical performances; and the Company
successfully identified, negotiating and completing additional
acquisitions, including accretive acquisitions. 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 U.S.; 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, as applicable, including interest expense, income
taxes, depreciation, amortization, stock- based compensation,
goodwill impairment and change in fair value of debentures and
financial derivatives.
For further information please visit our website
at www.Quipthomemedical.com, or contact:
Cole StevensVP of Corporate Development Quipt
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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