LAFAYETTE, La., Aug. 09, 2023 (GLOBE NEWSWIRE) -- Viemed Healthcare, Inc. (the “Company” or “Viemed”) (VMD and TSX:VMD.TO), a national leader in respiratory care and technology-enabled home medical equipment services, announced today that it has reported its financial results for the three and six months ended June 30, 2023.
Operational highlights (all dollar amounts are USD):
- Net revenues attributable to the Company's core business for the quarter ended June 30, 2023 reached a new Company record of $43.3 million, representing an increase of $10.2 million, or 31%, over core net revenues reported for the comparable quarter ended June 30, 2022. Net revenues for the quarter ended June 30, 2023 included approximately $2.5 million of revenues related to the HMP acquisition and were up approximately 9% over the quarter ended March 31, 2023.
- Net income for the quarter ended June 30, 2023 totaled $2.3 million. Adjusted EBITDA for the quarter ended June 30, 2023 totaled $9.8 million, a 52% increase as compared to the quarter ended June 30, 2022. A reconciliation of reported non-GAAP financial measures to their most directly comparable U.S. GAAP financial measures can be found in the tables accompanying this press release.
- On June 1, 2023, the Company completed its acquisition of Home Medical Products, Inc. ("HMP"), which operates in Tennessee, Alabama, and Mississippi. Viemed acquired 100% of the equity ownership of HMP in exchange for approximately $28 million in cash at closing, subject to post-closing net working capital and other adjustments. The results of HMP’s operations have been included in the consolidated financial statements since the date of acquisition and were immediately accretive to net income and earnings per share.
- As of June 30, 2023, the Company maintains a strong cash balance of $10.2 million ($16.9 million at December 31, 2022) and an overall working capital balance of $4.4 million ($20.9 million at December 31, 2022). Long term debt as of June 30, 2023 amounted to $12.1 million (the Company had no long term debt at December 31, 2022) and the Company has $47 million available under existing credit facilities.
- The Company expects to generate net revenues of approximately $49.0 million to $50.2 million during the third quarter of 2023.
“We find ourselves in an exceptional position, leveraging the prevailing tailwinds in the operating environment to extend our reach and impact on more patients than ever before,” said Casey Hoyt, Viemed's CEO. "The foundation of our success lies in our robust and resilient business model, which has consistently demonstrated its strength in meeting challenges head-on and driving sustainable growth. We are now taking our growth to new heights by executing on strategic and accretive acquisitions that complement our existing capabilities. These acquisitions serve as powerful catalysts, accelerating the expansion of our comprehensive respiratory offerings."
Conference Call Details
The Company will host a conference call to discuss second quarter results on Thursday, August 10, 2023 at 11:00 a.m. ET.
Interested parties may participate in the call by dialing:
877-407-6176 (US Toll-Free)
201-689-8451 (International)
Live Audio Webcast: https://event.choruscall.com/mediaframe/webcast.html?webcastid=COGHUH2E
Following the conclusion of the call, an audio recording and transcript of the call can be accessed on the Company's website.
ABOUT VIEMED HEALTHCARE, INC.
Viemed is a provider of in-home medical equipment and post-acute respiratory healthcare services in the United States. Viemed’s service offerings are focused on effective in-home treatment with clinical practitioners providing therapy and counseling to patients in their homes using cutting edge technology. Visit our website at www.viemed.com.
For further information, please contact:
Glen Akselrod
Bristol Capital
905-326-1888
[email protected]
Todd Zehnder
Chief Operating Officer
Viemed Healthcare, Inc.
337-504-3802
[email protected]
Forward-Looking Statements
Certain statements contained in this press release may constitute “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 or “forward-looking information” as such term is defined in applicable Canadian securities legislation (collectively, “forward-looking statements”). Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “potential”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, “believes”, or “projects”, or the negatives thereof or variations of such words and phrases or statements that certain actions, events or results “will”, “should”, “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved” or the negative of these terms or comparable terminology. All statements other than statements of historical fact, including those that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance, including the Company's net revenue guidance for the third quarter, are not historical facts and may be forward-looking statements and may involve estimates, assumptions and uncertainties that could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements. 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 statements to vary from those described herein should one or more of these risks or uncertainties materialize. These factors include, without limitation: the general business, market and economic conditions in the regions in which the Company operates; the impact of the COVID-19 pandemic and the actions taken by governmental authorities, individuals and companies in response to the pandemic on our business, financial condition and results of operations, including on the Company's patient base, revenues, employees, and equipment and supplies; significant capital requirements and operating risks that the Company may be subject to; the ability of the Company to implement business strategies and pursue business opportunities; volatility in the market price of the Company's common shares; the Company’s novel business model; the state of the capital markets; the availability of funds and resources to pursue operations; reductions in reimbursement rates and audits of reimbursement claims by various governmental and private payor entities; dependence on few payors; possible new drug discoveries; dependence on key suppliers; granting of permits and licenses in a highly regulated business; competition; 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; difficulty integrating newly acquired businesses; the impact of new and changes to, or application of, current laws and regulations; the overall difficult litigation and regulatory environment; increased competition; increased funding costs and market volatility due to market illiquidity and competition for funding; critical accounting estimates and changes to accounting standards, policies, and methods used by the Company; the Company’s status as an emerging growth company and a smaller reporting company; and the occurrence of natural and unnatural catastrophic events or health epidemics or concerns, such as the COVID-19 pandemic, and claims resulting from such events or concerns; as well as those risk factors discussed or referred to in the Company’s disclosure documents filed with the U.S. Securities and Exchange Commission (the “SEC”) available on the SEC’s website at www.sec.gov, including the Company’s most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q, and with the securities regulatory authorities in certain provinces of Canada available at www.sedar.com. Should any factor affect the Company in an unexpected manner, or should assumptions underlying the forward-looking statements prove incorrect, the actual results or events may differ materially from the results or events predicted. Any such forward-looking statements are expressly qualified in their entirety by this cautionary statement. Moreover, the Company does not assume responsibility for the accuracy or completeness of such forward-looking statements. The forward-looking statements included in this press release are made as of the date of this press release and the Company undertakes no obligation to publicly update or revise any forward-looking statements, other than as required by applicable law.
| VIEMED HEALTHCARE, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Expressed in thousands of U.S. Dollars, except share amounts) (Unaudited) | ||||||
| At June 30, 2023 | At December 31, 2022 | |||||
| ASSETS | ||||||
| Current assets | ||||||
| Cash and cash equivalents | $ | 10,224 | $ | 16,914 | ||
| Accounts receivable, net | 17,893 | 15,379 | ||||
| Inventory | 4,476 | 3,574 | ||||
| Income tax receivable | 1,029 | 26 | ||||
| Prepaid expenses and other assets | 2,327 | 3,849 | ||||
| Total current assets | $ | 35,949 | $ | 39,742 | ||
| Long-term assets | ||||||
| Property and equipment, net | 72,884 | 67,743 | ||||
| Finance lease right-of-use assets | 538 | — | ||||
| Operating lease right-of-use assets | 516 | 694 | ||||
| Equity investments | 1,942 | 2,155 | ||||
| Debt investment | 2,110 | 2,000 | ||||
| Deferred tax asset | 3,844 | 3,119 | ||||
| Identifiable intangibles, net | 688 | — | ||||
| Goodwill | 29,759 | — | ||||
| Other long-term assets | 887 | 1,590 | ||||
| Total long-term assets | $ | 113,168 | $ | 77,301 | ||
| TOTAL ASSETS | $ | 149,117 | $ | 117,043 | ||
| LIABILITIES | ||||||
| Current liabilities | ||||||
| Trade payables | $ | 6,167 | $ | 2,650 | ||
| Deferred revenue | 5,960 | 4,624 | ||||
| Accrued liabilities | 15,509 | 11,092 | ||||
| Finance lease liabilities, current portion | 375 | — | ||||
| Operating lease liabilities, current portion | 395 | 495 | ||||
| Current debt | 3,169 | — | ||||
| Total current liabilities | $ | 31,575 | $ | 18,861 | ||
| Long-term liabilities | ||||||
| Accrued liabilities | 637 | 889 | ||||
| Finance lease liabilities, less current portion | 143 | — | ||||
| Operating lease liabilities, less current portion | 143 | 199 | ||||
| Long-term debt | 12,114 | — | ||||
| Total long-term liabilities | $ | 13,037 | $ | 1,088 | ||
| TOTAL LIABILITIES | $ | 44,612 | $ | 19,949 | ||
| Commitments and Contingencies | — | — | ||||
| SHAREHOLDERS' EQUITY | ||||||
| Common stock - No par value: unlimited authorized; 38,400,422 and 38,049,739 issued and outstanding as of June 30, 2023 and December 31, 2022, respectively | 17,850 | 15,123 | ||||
| Additional paid-in capital | 13,488 | 12,125 | ||||
| Retained earnings | 73,167 | 69,846 | ||||
| TOTAL SHAREHOLDERS' EQUITY | $ | 104,505 | $ | 97,094 | ||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 149,117 | $ | 117,043 | ||
| VIEMED HEALTHCARE, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Expressed in thousands of U.S. Dollars, except outstanding shares and per share amounts) (Unaudited) | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||
| Revenue | $ | 43,311 | $ | 33,310 | $ | 82,867 | $ | 65,565 | |||||||
| Cost of revenue | 17,205 | 12,920 | 32,757 | 25,432 | |||||||||||
| Gross profit | $ | 26,106 | $ | 20,390 | $ | 50,110 | $ | 40,133 | |||||||
| Operating expenses | |||||||||||||||
| Selling, general and administrative | 20,563 | 17,536 | 40,325 | 33,312 | |||||||||||
| Research and development | 758 | 672 | 1,538 | 1,304 | |||||||||||
| Stock-based compensation | 1,471 | 1,271 | 2,862 | 2,576 | |||||||||||
| Depreciation | 298 | 243 | 538 | 480 | |||||||||||
| Loss (gain) on disposal of property and equipment | 117 | (110 | ) | 95 | (124 | ) | |||||||||
| Other (income) expense, net | (2 | ) | (223 | ) | (83 | ) | (664 | ) | |||||||
| Income from operations | $ | 2,901 | $ | 1,001 | $ | 4,835 | $ | 3,249 | |||||||
| Non-operating income and expenses | |||||||||||||||
| Income from equity method investments | 137 | 446 | 172 | 769 | |||||||||||
| Interest income (expense), net | 20 | (59 | ) | 69 | (123 | ) | |||||||||
| Net income before taxes | 3,058 | 1,388 | 5,076 | 3,895 | |||||||||||
| Provision for income taxes | 728 | 421 | 1,229 | 1,166 | |||||||||||
| Net income | $ | 2,330 | $ | 967 | $ | 3,847 | $ | 2,729 | |||||||
| Other comprehensive income (loss) | |||||||||||||||
| Change in unrealized gain/loss on derivative instruments, net of tax | — | 59 | — | 222 | |||||||||||
| Other comprehensive income (loss) | $ | — | $ | 59 | $ | — | $ | 222 | |||||||
| Comprehensive income | $ | 2,330 | $ | ||||||||||||
