ACUMEN CAPITAL | RESEARCH REPORT:November 6, 2020 Event. Financial results for Q3/20. Summary. VMD reported solid Q3/20 results. Guidance for Q4/20 was ahead of our previous estimates as COVID-19 related sales are expected to continue. Highlights include: • Net revenue of $33.4M was ahead of our estimate of $30.7M and consensus of $31.7M. The quarter included $8.6M of COVID-19 related sales (in line with our estimate of $9M). • Vent patients were up 1.1% Q/Q to 7,788 patients (below our forecast of 4.0%). Management indicated the Company is expected to return to historical sequential growth of 3-6% as COVID-19 normalizes. • Gross profit of $19.5M was ahead of our estimate of $18.6M. • Adj. EBITDA of $7.7M was ahead of our estimate of $7.5M and consensus of $7.4M. • EPS (f.d.) of $0.07 was between our estimate of $0.06 and consensus of $0.08. • VMD had cash of $32.4M, working capital of $19.5M, and LTD of $7.2M at the end of Q3/20. • VMD expects to generate net revenue of $31M – $33M in Q4/20, with $5M – $6M of COVID-19 related revenue.