$5.5 Million in Annualized Revenues, 20% Adjusted EBITDA Margin Post Integration Expected, 1,500 Unique Referring Physicians Added
CINCINNATI, Aug. 23, 2021 (GLOBE NEWSWIRE) -- 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.