Anticipating Q2 resultsOn May 3, 2022, the Company provided guidance for Q2:
- The Company expects to generate net revenues attributable to its core business of approximately $32.1 million to $32.8 million during the second quarter of 2022. While the Company's COVID-19 response related business has slowed during the current year, the Company is continuing to pursue additional sales and support revenues and estimates second quarter 2022 revenues of approximately $0.2 million to $0.3 million related to the COVID-19 pandemic. Total revenues for the second quarter of 2022 are estimated to be approximately $32.3 million to $33.1 million.
In the conference call, Todd stated:
"Our gross and EBITDA margins during the quarter came in at 61.2% and 22.5%, accordingly. Our first quarter gross and EBITDA amounts came in at $19.7 and $7.3 million respectively. We are once again encouraged by the rapid growth of our oxygen and sleep businesses as they continue to benefit from our ongoing national rollout of these products. Our first quarter revenue from vents was approximately 71% of our core revenue, as compared to 80% in the first quarter of 2021. Importantly, our vent revenue has grown during the same time, but the product diversification is beginning to show up more and more each quarter.
Moving on to the second quarter, we've provided net revenue guidance in the $32.1 to $32.8 million range related to our core business, and have also guided approximately two to $300,000 of revenue related to the COVID-19 pandemic. Our organic core revenue is guided up 22% to 25% over the second quarter of 2021. We continue to be encouraged by the core revenue growth as we have seen the COVID effects diminish."
The Q2 2022 results will be compared to Q1 2022 results and Q2 2021.
| | Q1 2022 | Q2 2021 |
| Total Revenue: | 32,255 | 27,399 |
| Core Business revenue: | 30,155 | 26,299 |
| Covid related revenue: | 2,100 | 1,100 |
| Net Income: | 2,507 | 1,566 |
| Adjusted Ebita: | 7,273 | 6,847 |
| Cash balance: | 29,248 | 31.151 |
| Vent patients | 8,434 | 8,103 |
| Shares outstanding | 39,621,741 | 39,584,064 |
The growth of Revenues in the core business will be the primary focus. To achieve a 35% annual growth rate, there would have to be core revenues of $32.5 in the quarter. This exceeds guidance but would be necessary to trigger a healthy expansion of the multiples.
The second focus will be earnings. Earnings have been sluggish in recent quarters due to pandemic related slowdowns in attracting new patients whilst Viemed increased its staffing. The pandemic abated for the entirety of Q2 but management would have been cautious giving guidance because of the uncertainty of the pandemic.
The share repurchase plan for up to 5% of the shares should now be completed. This will enhance the per share earnings by 5%.
The management share compensation, RSU, Phantom Shares and bonuses will be up because they primarily are based on share price. The June 30 share price was $C 6.96 while it was $C 6.29. The significant share price increase came after June 30 so that large expense won't appear until Q3.
Earnings estimates by analysts are few and far between. I see one at $.07 for this quarter.
FYI...Canadian markets are closed on Monday, August 1.