Release Date: March 11, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Viemed Healthcare Inc (VMD, Financial) reported a record revenue performance with a 20% year-over-year increase for Q4 and a 23% increase for the full year 2024.
- The company experienced strong growth in its core Vent business, which accounted for 55% of Q4 revenue and 56% for the year.
- The sleep business saw a nearly 10% sequential increase in sleep therapy patients, contributing to a 43% increase in 2024 compared to 2023.
- Viemed Healthcare Inc (VMD) has a strong balance sheet with $55 million available on credit facilities and no net debt, providing significant financial flexibility.
- The company is projecting net revenue growth of 16% for 2025, with adjusted EBITDA expected to grow by 10%, indicating a positive outlook for the coming year.
Negative Points
- The adjusted EBITDA margin declined year-over-year and sequentially, primarily due to shifts in product and service mix.
- Free cash flow decreased to $11.6 million in 2024 from $21.7 million in 2023, impacted by increased cash taxes and Philips receivable adjustments.
- The staffing business, while strategically important, contributes less to gross margin and introduces variability in top-line results.
- CapEx increased significantly due to the vent exchange program and growth in vent patients, impacting net cash flow.
- The company faces uncertainty regarding potential impacts from the new administration's healthcare policies and tariffs, which could affect operations.
Q & A Highlights
Q: Do you anticipate any impact from the tariffs suggested by the new Trump administration on your business?
A: W. Todd Zehnder, Chief Operating Officer, stated that they haven't seen any impact yet. Most products are sourced domestically, but if parts are taxed, it could affect them. Casey Hoyt, CEO, added that hospitals are concerned about potential Medicaid program changes, which could lead to more collaboration with Viemed.
Q: Are there any updates on competitive bidding?
A: Casey Hoyt, CEO, mentioned that there have been no updates or whispers about competitive bidding. It seems unlikely to be a 2026 event, possibly 2027 or beyond.
Q: How do you view the current M&A environment?
A: Casey Hoyt, CEO, described it as more target-rich and fertile than during the Biden years, with increased interest and activity. They are optimistic about potential M&A opportunities.
Q: Can you provide an update on the joint venture with East Alabama Medical Center?
A: Casey Hoyt, CEO, reported that the JV is going well, but it took significant time for integration. They are considering larger JV targets for future endeavors. W. Todd Zehnder, COO, added that the JV has been profitable and accretive.
Q: Could you elaborate on your behavioral health initiatives?
A: Casey Hoyt, CEO, explained that Viemed started with clinical social workers to complement respiratory therapists. Their staffing division has identified significant demand for behavioral health services, which now constitutes a large part of their staffing business.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
