Quipt Home Medical Corp T.QIPT

Alternate Symbol(s): QIPT

Healthcare

Quipt Home Medical Corp. is a home medical equipment provider. The Company specializes in improving the home management of chronic illness through the application of telehealth systems and automated distribution. It provides in-home monitoring and disease management services, including end-to-end respiratory solutions for patients in the United States. It offers nebulizers, oxygen concentrators, continuous positive airway pressure (CPAP) and Bilevel Positive Airway Pressure (BiPAP) units; traditional and non-traditional medical respiratory equipment and services, and non-invasive ventilation equipment, supplies, and services. The Company's product offerings include the management of several chronic disease states focusing on patients with heart or pulmonary disease, sleep disorders, reduced mobility, and other chronic health conditions. Its products and services consist of sleep apnea and pap treatment, home ventilation, daily and ambulatory aides, and respiratory equipment rental.

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Quipt Home Medical Corp

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Post by besttobeon Apr 19, 2023 9:29am

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Post# 35402627

Quipt had no choice but to do an equity raise. IMO

Because they did not throw off enough cash to pay down existing debt, cover thier cash burn nor have enough to even do small tuck ins, as they previously stated in the CC (see below). IMO Thus shareholders were blind sided because of this highly dilutive discounted equity raise. Q2 numbers will suck and only add to the shareholders pain. IMO

Rahul Sarugaser: Great. Okay. And that’s helpful. And then just sort of one somewhat housekeeping cash question. Now, of course with the acquisition, your cash position’s going to change; cash flow correctly within this quarter, which is obviously an artifact. And we’re all going to run our own numbers, but maybe just for the sake of clarity, could you give us a sense for pro forma cash moving into the new quarter post-acquisition? Thanks.

Greg Crawford: Sure. On a post-acquisition basis from an internal modeling perspective, we do expect the first two quarters to be possibly a little drag on the cash flow side. And a lot of combinations of the new consummated transaction, there are obviously activities and services that you have that you’re going to use your cash tours. We also in assumed about $5 million of lease liability as part of the acquisition. So those lease liability will start flowing through our lease payment on the cash flow. So for the first two or three quarters we would €“ we do see there would be more of a cash music (USED?) then what are historically enhancement.

Rahul Sarugaser: Okay. That’s very often. And then just a quick follow-up then, and then I’ll get into back in queue. So in terms of the liquidity availability that you talked about with sort of the pay down on the debt. Can you maybe just give us a sense for your liquidity and the ability to sort of manage these integration incremental integration costs? And then I’ll get back on the queue. Thanks.

Greg Crawford: Sure. Yes. I think we are very confident about our liquidity at this point. We still have availability on our line of credit and that should be plenty for us to go through cash flow fluctuations we talked about. And as far, and apart from that to support our acquisition, we still have our ability on our DDTL. So between our ability on DDTL and the line of credit we feel like extremely comfortable with where we stand, not just to maintain what we have, but if we want to €“ should continue on the acquisition path again, we don’t see a challenge of liquidity from that perspective.