RE:Beacon Excerpt e) VMD is originating ancillary products which are also demanded by its existing clientele such as oxygen. Such products will help to drive revenue/patient revenue, which was +4% y/y.
f) Finally, with $7.7 million in cash and the company generating significant free cash flow, VMD can fund all of its growth opportunities in a non-dilutive manner.
• With the success that Viemed has shown to date, the above indicates to us that we are in the early innings of a great growth story.
• Given the better growth was better than expected as well as the opportunity itemized above,
we are making some changes to our forecasts.
We now estimate rev/EBITDA of $88.4m/$20.8m (was $83.9m/$22.8m) for FY19 and $117.5m/$31.1m (was $109.1m/$29.7m) for FY20.
• We maintain our Buy recommendation but raise our target to C$13,00 (was C$12.50) based on 12x our upwardly revised FY20 EBITDA forecast.