Quipt Home Medical Corp T.QIPT

PTQ was turning corner before Covid at an impressive rate

[gibbonsj]

This will be 9th consecutive Q of double digit gains in key metrics and just shy of profitability. The demand for their products and services has only increased since last Q. Here's a few take aways.  (repost)


With an extremely healthy balance sheet our focus for 2020 is to seek larger, more transformative acquisitions.
 
approved for a CAD$5.97 million loan ( plus earlier $1.5M grant)
 
“The loan is forgivable if we maintain our payroll at current levels and it is our plan to do exactly that”.
 
“Protech expects to meet the requirements for full loan forgiveness. The forgiven amount is not included in taxable income.”
 
“We maintain a payroll in excess of just over 375 employees.”
 
“This increased liquidity enhances our ability to maintain our payroll as we continue to operate strongly during this pandemic.”
 
“proceeds are used by Protech to cover payroll costs (including benefits), rent and utilities during the eight-week period following the loan origination date”. 
 
“In just a few weeks, our business has settled into a new normal,”
 
“we have seen an uptick in demand for our at-home services…”
 
“In particular, the expedited initiative by the medical community to free up hospital beds by sending non-critical patients home has accelerated physician referrals in most segments of our business”.
 
“We are also pleased that the supply chain for our critical equipment continues to remain effective, and we continue to opportunistically build inventory to meet expected increases in demand, particularly for ventilators and home oxygen equipment.”
 
“In a further positive development, CMS, the Centers for Medicare and Medicaid Services, has removed non-invasive ventilators from the 2021 Competitive Bidding Program. The removal is designed to ensure greater patient access for at-home ventilator therapy. This segment accounts for approximately 17% of Protech’s revenue which continues to grow aggressively, this is very comforting and provides a great boost to our
 
While it is too early to tell what the impact of this situation could be on our business going forward, rest assured, we are operating at a high level of service to meet the current demand for our products
 
“Protech is pleased to announce that it has received more than C$1.5 million in cash payment as part of the CARES Act Provider Relief Fund to support healthcare providers fighting the COVID-19 pandemic. These are payments to healthcare providers, not loans, and will not need to be repaid.
patient centric clinical services that has evolved into industry leading best practices to serve the physician and patient community. This change effectively improves Protech’s confidence in accessing the supply chain for such equipment and strengthens Protech’s margin outlook on the provision of such equipment,”
 
 
We will continue to keep our stakeholders fully apprised of any material developments.  (stay tuned)
 
For further information please visit our website at www.protechhomemedical.com, or contact:
Gregory Crawford
Chief Executive Officer
Protech Home Medical Corp.
859-300-6455
[e-mail]
Investor Relations:
Oak Hill Financial Inc.
Jonathan L. Robinson CFA
416-669-1001
[e-mail]

 Financial highlights for the first fiscal quarter ended December 31, 2019:

• Revenue for Q1 2020 was $22.8 million compared to $20.5 million for Q1 2019, representing an 11% increase in revenue year-over-year.
• Gross margin in Q1 2020 was 74%, up from 70% in Q1 2019 as a result of ongoing margin enhancement efforts including patient intake and distribution optimization.
• Adjusted EBITDA for the Q1 2020 was $4.4 million (19.4% margin), compared to Adjusted EBITDA for Q1 2019 of $3.7 million (18.2% margin), representing an 18% increase year-over-year.
• Cash flow from continuing operations was $4.4 million in Q1 2020 compared to $2.5 million in Q1 2019, an increase of 80%.
• The Company reported $8.4 million of cash on hand as at December 31, 2019 compared to $6.2 million at December 31, 2018.