CINCINNATI, Dec. 16, 2021 (GLOBE NEWSWIRE) -- Quipt Home Medical Corp. (“Quipt” or the “Company”) (NASDAQ:QIPT; TSXV:QIPT), a U.S. based leader in the home medical equipment industry, focused on end-to-end respiratory care, is very pleased to announce record preliminary financial results for the fourth quarter of 2021, ending September 30, 2021 as well as a business update with respect to recent announcements.
Record Preliminary Financial Results – Fourth Quarter Ended September 30, 2021
- Revenue in the range of $27.6 million to $28.1 million
- Adjusted EBITDA (defined and reconciled below) in the range of $5.3 million to $5.6 million
- Cash (and cash equivalents) was $34.6 million as of September 30, 2021
Business Updates
- On October 1, 2021, the Company acquired a business with operations in Mississippi, reporting unaudited trailing 12-month annual revenues of approximately $2.7 million, anticipated $0.5 million in Adjusted EBITDA post integration, and 4,000 active patients. See October 5, 2021 press release. Integration is well underway.
- On November 1, 2021, the Company acquired a business with operations in Central Illinois reporting unaudited trailing 12-month annual revenues of approximately $2.5 million, anticipated $0.6 million in Adjusted EBITDA post integration, and 3,700 active patients. See November 9, 2021 press release. Integration is well underway.
- On November 16, 2021, the Company executed a non-binding letter of intent to acquire an arm’s length private respiratory care company in a major metropolitan hub within the Midwestern United States reporting unaudited trailing 12-month annual revenues of approximately $13 million, $1.6 million in net income, positive Adjusted EBITDA and over 15,000 active patients. Closing is on track to occur within the provided timeline in the original press release (November 16, 2021).
- On November 17, 2021, the Company acquired a privately held biomedical services company, with operations in the Southeastern United States, reporting unaudited trailing 12-month annual revenues of approximately $1.5 million, and $225,000 in net income. The acquisition provides the Company a synergistic opportunity to expand into a brand-new service line of biomedical repair services for respiratory equipment including preventative maintenance. The Company is now able to assist healthcare providers to improve the operational efficiency of their respiratory equipment program. See November 17, 2021 press release.
- On November 22, 2021, the Company executed a non-binding letter of intent to acquire an arm’s length private comprehensive respiratory care company within the long-term care setting servicing seven states throughout the U.S. reporting unaudited trailing 12-month annual revenues of approximately $14 million, $1 million in net income, and positive Adjusted EBITDA. Closing is on track to occur within the provided timeline in the original press release (November 22, 2021).
Reiteration of Outlook for Calendar End 2022 (Fiscal Q1 2023)
As disclosed on November 16, 2021, based on the current operations, market trends and completed and prospective acquisitions, the Company is reiterating it outlook for its annual run-rate revenue by the end of calendar 2022 (Fiscal Q1 2023) to be $180-$190 million with $38-$43 million in Adjusted EBITDA.
ManagementCommentary
“Our efforts in building a national clinical respiratory organization focused on superior patient care are being realized, and our continued robust preliminary financial results are a testament to the ongoing operational progress made throughout the year. During the second half of the year, we have continued to strategically scale our business throughout the United States with 7 completed acquisitions representing combined revenue of over $17.5 million since July, propelling our active patient count to well over 150,000. Moreover, we have two outstanding executed non-binding LOI’s representing an aggregate potential new revenue of approximately $27 million, net income of $2.6 million, positive Adjusted EBITDA and over 15,000 active patients progressing us further to our stated financial goals exiting calendar 2022,” said Greg Crawford, Chairman and CEO of Quipt. “Our team is focused on integration efforts across our recently acquired businesses, and we are pleased with the progress to date. We have a robust platform that allows for organic and inorganic growth opportunities to be efficiently layered on to generate economies of scale, and we will continue to stay nimble with the opportunities in front of us.”
Chief Financial Officer, Hardik Mehta added, “We are extremely proud of the record preliminary results we are seeing in our fiscal fourth quarter and are excited about the positioning we have built within the industry landscape as we continue to strategically grow both organically and inorganically. The two LOI’s announced on November 16 and 22, 2021, are both expected to be closed using cash on hand and our existing debt facility.
“Furthermore, as disclosed in a separate press release today, due to the accelerated timeline to complete the filing of our audited financials as a result of the listing of our common shares on Nasdaq Capital Markets (90 days, as opposed to 120 days), our auditors have informed us that they will unfortunately be unable to complete the audit within the compacted time period. We will continue to work diligently and expeditiously with them to complete the audit on or before January 28, 2022.”
Closing of the two acquisitions is subject to final due diligence, final negotiation and execution of definitive purchase agreements, all closing conditions being satisfied or waived and all necessary approvals.