Viemed Healthcare Inc VMD

APR was acquired for 7x adj. EBITDA, VMD at 4.5x adj. EBITDA

[stockfy]

VMD's main competitors are Lincare (owned by Linde AG) and Apria Healthcare (APR).

 

APR's top line YoY growth this year is only 4%, see:

https://www.globenewswire.com/news-release/2021/11/04/2328043/4031/en/Apria-Announces-Financial-Results-for-Third-Quarter-2021.html
 

 

For comparison, VMD's top line YoY growth for its core business this year is 12%:

 

 "Net revenues attributable to the Company's core business for the quarter ended September 30, 2021 were $27.8 million, a new Company record, and an increase of $2.9 million, or 12%, over core business revenues reported for the comparable quarter ended September 30, 2020."

 

 

APR was acquired just one month ago for a total transaction value of $1.6 billion:

https://www.pymnts.com/acquisitions/2022/healthcare-firm-owens-minor-buys-apria-for-1-6b/

 

According to APR's guidance, adj. EBITDA this year is about $230 million.

 

Therefore, APR with only 4% YoY growth was acquired for 7 times its adj. EBITDA.

 

For comparison, VMD's adj. EBITDA this year will be about $28-$29 million.

VMD's Enterprise Value at US$4 per share is $140 million.

Therefore, VMD has 12% YoY growth (VMD reports much stronger growth than APR) but its Enterprise Value at US$4 per share is only 4.5 times its adj. EBITDA!!!

 

[LongTerm3]

APR expected Adjusted EPS growth is 8 percent next year. Viemed expected Adjusted EPS growth is over 20 percent next year. APR also has debt of over 400 Million. Viemed debt is about 4 Million.    APR has 100 times the debt. That is huge. That is why they were about to get the company at only 7 times ADJ. EBITA. Viemed would go for more.  APR has about 35 million shares

[donmayne]

At the Stifel CC (Nov 16, 2021), the Moderator asked about the big picture post covid which we hope is not in the too distant future. If we are in a steady state  how should we think about Viemed's top line and margin profile. Casey Hoyt responded where he said we are never satisfied unless we grow north of 30%.  We are used to growing at 30-40% range. We grew the core business

[LongTerm3]

Please start a new text if changing the subject. Covid has come down dramatically in the last month.

[donmayne]

Sorry Longterm...I thought the conversation was about growth rates so I posted the most recent public observation from Casey Hoyt and commented that it would have to be adjusted downwards for the subsequent Omicron surge.  I felt that was the same subject of growth rates that you were speaking to.   Since posting my comments, I have now read Stockfy's vitriolic attack on an

[stockfy]

Good catch in terms of debt/leverage. APR was a leveraged (indebted) company with its leverage being about 2 times. In contrast, VMD has a fortress balance sheet with a net cash position. To sum it up: 1) VMD's top line YoY growth is much stronger than APR's and 2) VMD has a net cash position of about $20 million while APR was an indebted company with its leverage being about 2 times.