Posts Revenue Growth of 41% and Adjusted Ebitda Growth of 21%
Strong Organic Growth Of 11% YTD as Compared to 2020
CINCINNATI, Aug. 23, 2021 (GLOBE NEWSWIRE) -- Quipt Home Medical Corp. (the “Company”) (NASDAQ:QIPT; TSXV:QIPT), a U.S. based leader in the home medical equipment industry, focused on end-to-end respiratory care, today announced its third quarter fiscal 2021 financial results and operational highlights. These results pertain to the three and six months ended June 30, 2021 and are reported in U.S. Dollars.
Quipt will host its Quarterly Earnings Conference Call on Tuesday, August 24, 2021 at 10:00 a.m. (ET). The dial-in number is 1 (800) 309-4610 or 1 (604) 638-5340.
Financial Highlights:
- Revenue for Q3 2021 was $26.2 million compared to $18.6 million for Q3 2020, representing a 41% increase in revenue year-over-year. Compared to Q3 2020, the Company experienced organic growth of 7%. For YTD 2021 the Company experienced 11% organic growth as compared to the corresponding period in 2020.
- Recurring revenue as of Q3 2021 continues to be strong and exceeds 75% of total revenue.
- Adjusted EBITDA (defined below) for Q3 2021 was $5.3 million (20.2% margin), compared to Adjusted EBITDA for Q3 2020 of $4.4 million, representing a 21% increase year-over-year. Adjusted EBITDA margin was impacted by one-time costs related to the Company’s NASDAQ listing. On May 27, 2021, the Company commenced trading on NASDAQ.
- Net income for Q3 2021 was $6.3 million or $0.19 per fully diluted share, compared to a loss of $2.5 million for Q3 2020 or $(0.12) per fully diluted share.
- Cash flow from continuing operations was $11.9 million for the nine months ended June 30, 2021 compared to $9.7 million for the nine months ended June 30, 2020.
- For the nine months ending June 2021, bad debt expense was 8% compared to 10% for the corresponding period in 2020, an improvement of 2%. This exemplifies our ability to scale and add more revenue through add-on acquisitions without compromising our billing capabilities.
- The Company reported $30.6 million of cash on hand as at June 30, 2021 compared to $27.2 million as at March 31, 2021.
- The Company has an undrawn credit facility of $20 million as at June 30, 2021.
Operational Highlights:
- Through the Company’s continued use of technology and centralized intake processes, respiratory resupply set-ups and/or deliveries increased to 40,580 for the three months ended June 30, 2021, compared to 14,436 for the same period ended June 30, 2020, an increase of 181%.
- The Company’s customer base increased 74% year over year to 64,578 unique patients served in Q3 2021 from 37,128 unique patients in Q3 2020.
- Compared to 57,551 unique set-ups/deliveries in Q3 2020, the Company completed 95,192 unique set-ups/deliveries in Q3 2021, an increase of 65%.
- The Company is expanding its sales reach across fifteen U.S. states by the addition of experienced sales personnel.
- The Company changed its name from Protech Home Medical Corp. to Quipt Home Medical Corp. in May 2021 and is focused on expansion into a national homecare provider throughout the United States, with a patient centric model to meet the one-of-a-kind needs of every patient in its ecosystem.
Acquisition Related Update:
- The Company acquired three separate entities with combined operations in California, Missouri, Arkansas and Mississippi, reporting combined unaudited trailing 12-month annual revenues of approximately $5.5 million and Adjusted EBITDA of $550,000 prior to integration. The Company expects the margin profile to be in line with the overall business, post integration.
- On August 20, 2021, the Company acquired a business with operations in Missouri, reporting unaudited trailing 12-month annual revenues of approximately $5.5 million, and Adjusted EBITDA of $1.1 million, post integration.
- The Company is pleased to announce the addition of David Chester to lead the Company’s M&A and Integration team. David is a healthcare executive with 21 years’ experience with a specific focus on the Home Medical Equipment and Services Industry. David comes from one of the largest home medical equipment companies in the industry, where he served as Director of Acquisitions.
- The Company has reached 145,000 active patients, 18,500 referring physicians and 59 locations throughout 15 states.
Management Commentary:
“We continue to produce exceptional results, highlighted by our robust organic growth, driven by the strong execution displayed across the organization, comprised of over 600 dedicated team members. Our record third quarter financial and operating results are a direct result of our ability to leverage ongoing technology implementation and workflow processes to improve our operations. Strength in the underlying business combined with secular tailwinds and a bullish regulatory landscape provide us extraordinary opportunity to scale aggressively,” said CEO and Chairman Greg Crawford. “We have been extremely busy this year, entering five new states (Florida, California, Missouri, Arkansas and Mississippi), as we expand from a regional homecare provider into a national provider, within the United States. For the first time, we will utilize the Quipt brand name post-integration of acquisitions where it makes sense, marking the start of a longer-term plan to transition certain local market brands to Quipt, which we strongly believe will be a driver of future organic growth. The platform we have allows for organic and inorganic growth to be efficiently layered on to generate economies of scale. We have the substantial financial resources and operating expertise to build on the highly scalable platform we have, and we expect to be active on the acquisition front over the remainder of the year.
As many of you are aware, in mid-June, Philips Respironics issued a product recall for a large portion of their CPAPs, BiPaps and ventilators. Philips has been a fantastic partner to us over the years, and we are committed to working through the recall united together. As it relates to our supply chain, it is worth noting, Philips represents a minority percentage of the impacted category for us, and we have not experienced any material impact to date. The Quipt clinical team has done an excellent job working with patients and physicians to manage this complex process and we will continue to work diligently to minimize any future impact. Our focus on delivering superior patient care positions us well to drive future growth.”
Chief Financial Officer Hardik Mehta added, “I am very proud of our record breaking third quarter financial and operating results. We reached the high end of our target run-rate revenue range one quarter early, nearing $105 million, whilst maintaining an above 20% Adjusted EBITDA margin inclusive of the one-time costs related to our listing on NASDAQ. Our strong performance was driven through higher volumes, cash collections and continuing to support the business with lower operating costs. Organic growth has been a top priority for the team, and the 11% organic growth achieved year-to-date embodies the ongoing execution company-wide. Our infrastructure allows us to scale quickly as evidenced by the entrance into five new U.S. states so far this year, adding over $15 million in revenue, and 35,000 active patients. Our robust financial position provides us the ability to target meaningful acquisition candidates that work significantly to move the needle for our coverage sphere in the United States. Our pipeline continues to be very strong and I am excited to welcome David Chester to our team, to lead our acquisition and integration initiatives. We believe David will be instrumental in driving future growth and assist us in accelerating our acquisition pace.”
The financial statements of the Company for the three and six months ended June 30, 2021, and 2020 and accompanying Management Discussion & Analysis (MD&A) are available at www.sedar.com.