Viemed Healthcare Inc VMD

RBC

[retiredcf]

Their upside scenario target is US$12.00. Only posting the first part because some of their reports (such as this one) are a real pain to cut and paste. GLTA

VieMed Healthcare, Inc.

Solid 3Q21 while weathering Delta surge; posts nice sequential improvement

Our view:

VMD solid 3Q21 results came in above our expectations, with core organic growth of 12% YOY (excl. COVID-related revs), despite the delta surge impacting new patient vent counts. With the expansion of CPAP and O2 segments, increasing vent counts, and strong (and improving) margins, the fundamentals remain attractive. We maintain our Outperform rating, though lower our PT to $9/sh (from $13/sh) on 7.5x our FY22E EBITDA (prior ~11x), largely due to the recent multiple compression amongst peers.

Key points: 
Strong top-line growth enabled adj. EBITDA margin expansion (+230 bps YOY) to 25.3%. Adj. EBITDA came in nicely above expectations at $7.4MM vs. our $6.1MM estimate and consensus of $6.3MM. Though VMD saw a tighter labor market, the company's retention remained steady limiting SG&A pressure. Mgmt expects 4Q21 core revs of $27.8-28.8MM and $1.5-1.7MM of COVID-related revs (or $29.3-30.5MM total) vs. our/consensus estimates of $29.9MM/$28.6MM.

Solid patient count growth despite delta surge.  

[JackLambert]

Appreciated.   Very useful.   This one is becoming a test of patience as much as anything.   But the numbers do not lie.   I write in Canada - I really do not think we understand how bad delta has been in the US.   This wave has been a disaster. But the company sails on. 

[stockfy]

Thanks for the update.