VMD: RBC's New PT of $13 and Key Excerpts from the CCRBC just set a new price target of $13 for VMD thanks to its strong quarterly results, pristine balance sheet and growth potential. Another poster posted RBC's full analysis.
Read also carefully these key excerpts from the latest conference call where among other things, the CEO talks about the significant margin expansion to 64% this quarter versus 60% in the same quarter last year:
"Let's begin with discussing the main driver to our growth, which is the addition of 14 new areas and reps in the second quarter. These new hires bring our year-to-date hiring total to 28 new reps, which puts some pace to achieve our end-of-year goal of hiring 60 new reps in 2021. The second quarter saw the beginning of the project Next Level, a 12-week program designed to get all of our sales reps back in the Lafayette headquarters for further training on our new products and tools available for our referral sources.
Reps have been coming to the office in spurts to learn more about our behavioral health component, technology platforms, new products, and really just getting a chance to reconnect the Viemed culture. Project Next Level will be fully completed by the end of August, and we expect to see a lot of momentum in the back half of the year as reps get back into their territories energized and fully trained on how to be more helpful to our physicians in hospitals. "
and:
"We were able to double the amount of patients on the View program in the second quarter and now have over 800 patients on service. The View program has been a nice complement to our Home Sleep Delivered business. With lots of referrals from family practice, internal medicine, and cardiology, these requests for home sleep tests and oxygen often go hand-in-hand with View. View has helped drive our sleep business as a result of these referrals, and we expect it to expand even more as we get our reps further trained through project Next Level."
and:
"The oxygen and sleep business continues to expand across the country due to hiring of direct and Home Sleep Delivered reps, who are specifically focused on selling sleep, oxygen, and View. We are up to 14 Home Sleep reps spread out across seven states with many in the training pipeline. Also, with the Viemed reps being trained on how to sell sleep and oxygen in a unique way through project Next Level, the stage is set for significant growth in these product sectors throughout the remainder of 2021. "
and:
"We have always been a device diagnostic company focused on service rather than equipment. And there couldn't be a more pertinent time to be positioned to capitalize on opportunities presented by the recall. At Viemed, we tend to shine when change, disruption, and uncertainty are upon us as evidenced by our ability during the pandemic to stand up a contact tracing call center for the state of Arizona."
and:
"We foresee a continued need for our call center as the cases surge and vaccine tracing continues to be an ongoing need. I am pleased with the national rollout of Viemed Clinical Services, our behavioral health solution. We've hired 12 licensed clinical social workers this year and are now licensed in 23 states. Sales reps completing project Next Level are tasked with finding their own licensed clinical social worker."
and:
"We have seen success with VCS helping patient retention and really being the conduit to offering more services in the home. We view VCS as a looking glass into better understanding what other patient needs exist within the home that could also fit within our care plan. On the acquisition front, we continue to look at deals that are prudent for springboarding our growth. We want to remain in a strong cash position as we keep a close eye on how the recall will affect the industry, while also being mindful of any solutions that we can provide related to a relapse of the pandemic."
and:
"With that said, June was the highest month of patient – I'm talking vents specifically, patient uploads since the pandemic began, and July outpaced that probably by about 3%. So July is the highest patient upload that we've seen, I think, since either January 2020 or December 2019. "
and:
"What we would be looking at would be a geographical expansion potentially or a disease state expansion, whether it'd be neuromuscular, thoracic restrictive, potentially a pediatric ventilator company, something that would springboard our growth and let us bring adult COPD into that."