The Medical Company That’s Exceeding Expectations, Enriching Lives

Investors looking to get into the profitable medical equipment and services space may have just found a new home. And in a recent Stockhouse Editorial article, we took a deep dive into what makes one particular home medical company so intriguing. In fact, a Stockhouse news release from AdaptHealth Corp. (NASDAQ: AHCO) ON November 4th, detailing their Q3 2021 results, clearly demonstrates how strong the financial metrics are in the sector right now. In short, the patient-centered, healthcare-at-home solutions market is booming.

And a company part of this upward trend is Quipt Home Medical Corp. (QIPT) (TSX-V.QIPT, NASDAQ: QIPT, Forum) – formerly Protech Home Medical Corp. Quipt is focused on end-to-end respiratory care that includes in-home monitoring equipment, supplies, and services to patients. These services consist of respiratory equipment rental, focused on home ventilation, oxygen therapy, and sleep apnea/PAP treatment. Furthermore, about 20% of the product mix focuses on traditional DME, including daily & ambulatory aides, and power mobility.

Quipt provides in-home monitoring and disease management services including end-to-end respiratory solutions for patients in the U.S. healthcare market. It seeks to continue to expand its offerings to 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. The primary business objective of the Company is to create shareholder value by offering a broader range of services to patients in need of in-home monitoring and chronic disease management.

Quipt Home Medical’s organic growth strategy is a relatively simple, yet effective, one –to increase annual revenue per patient by offering multiple services to the same patient, consolidating the patient’s services, and making life easier for the patient. The company’s operating engine serves to convert low margin businesses to high margin businesses through operating efficiencies and cost saving synergies.


In the News

On November 9th, Quipt made a major announcement that it had recently acquired a business with operations in Illinois, reporting unaudited trailing 12-month annual revenues of approximately USD$2.5 million. Post integration, Quipt expects an Adjusted EBITDA for the acquisition target of USD $0.6 million

This acquisition adds a strategic location servicing Central Illinois, a heavily weighted respiratory product mix, and over 3,700 active patients. Moreover, the acquisition provides Quipt important insurance contracts and decades of operating experience, with an over 40-year operating track record in the markets served. The business has a diverse payor mix and full suite of products with a focus on respiratory care, representing over 85% of the mix.

Greg Crawford, Chairman and CEO of Quipt, commented:

“Our robust operating engine and proven ability to integrate acquired assets allows us to continue the strong pace of closing strategic acquisitions. Since July we have now completed 6 acquisitions with combined revenues of over $16 million. Combining these newly acquired entities provides us a pathway to scale into new states with each business having a proven track record in the markets they serve and diversified product mixes. In this short period of time, we have amassed infrastructure in 4 new states and further penetrated existing states such as Illinois. Given the favorable regulatory environment, we have been able to accelerate our expansion efforts by economically acquiring smaller respiratory focused home medical providers throughout the United States that fit our stringent acquisition criteria. This newest transaction in Illinois is another example of our strategy to make tuck-in acquisitions to fill in attractive geographies, obtain important insurance contracts, add to our active patient base, and build out our referring physician network. Our current pipeline consists of companies reflective of all three tiers of our previously disclosed acquisition strategy and we are extremely optimistic we will maintain momentum in closing targets that fit the mold.”

Investment Opportunity

When the company published its Q3 2021 fiscal financial results in late August, QIPT reported revenue at USD$26.2 million compared to $18.6 million (USD) for the Q3 2020. This represents a 41% increase in year-over-year revenue compared to Q3 2020, where the company experienced organic growth of 7% and has seen 11% organic growth so far in 2021, compared to the same time last year.

The company’s customer base also increased 74% YOY to 64,578 unique patients served in Q3 – up from 37,128 unique patients that time in 2020.

According to a report by market research company, MarketsandMarkets, the respiratory device market alone is expected to reach nearly $30 billion by 2025 – up from $16 billion in 2019, Quipt is a leader in providing respiratory care devices through its network of more than 19,000 referring physicians worldwide and the delivery of nearly 250,000 pieces each year.

Quipt Home Medical Corp. looks well-positioned for strong growth in 2022 and is ready to expand operations to meet this escalating demand for in-home medical devices and services.


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Here’s the company’s corporate presentation.

To find out more, visit quipthomemedical.com.

And be sure to follow them Linkedin and Facebook so you don’t miss a thing.


FULL DISCLOSURE: This is a paid article produced by Stockhouse Publishing.