QIPT - Quipt Home Medical Reports Strong Operating Performance With Record First Quarter Fiscal 2024 Financial Results Posting Revenue Growth of 60% and Adjusted EBITDA Growth of 71% | Benzinga
CINCINNATI, Feb. 14, 2024 (GLOBE NEWSWIRE) -- Quipt Home Medical Corp. (the "Company") (NASDAQ:QIPT, TSX:QIPT), a U.S. based home medical equipment provider, focused on end-to-end respiratory care, today announced its first quarter fiscal 2024 financial results and operational highlights. These results pertain to the three months ended December 31, 2023, and are reported in United States dollars ("$", "dollars" and "US$") and have been rounded to the nearest hundred thousand.
Quipt will host its Earnings Conference Call on Thursday, February 15, 2024, at 10:00 a.m. (ET). The dial-in number is 1 (800) 319-4610 or 1 (604) 638-5340. The live audio webcast can be found on the investor section of the Company's website through the following link: www.quipthomemedical.com.
Financial Highlights:
- Revenue for Q1 2024 was $65.4 million compared to $40.8 million for Q1 2023, representing a 60% increase. The Company reported 2% sequential organic growth compared to Q4 2023.
- The Company expects solid organic growth patterns for the balance of fiscal 2024, with the ongoing objective of achieving 8-10% annualized organic revenue growth.
- Recurring Revenue (defined in Non-IFRS Measures below) for Q1 2024 was very strong and exceeded 83% of total revenue, driven by overall growth in new equipment set-ups, which is the initial delivery of equipment to a patient.
- Adjusted EBITDA (defined in Non-IFRS Measures below) for Q1 2024 was $15.3 million (23.5% of revenue) compared to $9.0 million (22.0% of revenue) for Q1 2023, representing a 71% increase.
- Net income (loss) for Q1 2024 was $(0.6) million, or ($0.01) per diluted share, as compared to $0.3 million, or $0.01 per diluted share for Q1 2023.
- Cash flow from operations was $11.7 million for the three months ended December 31, 2023, compared to $4.8 million for the three months ended December 31, 2022.
- For Q1 2024, bad debt expense as a percentage of revenue improved to 4.3%, compared to 5.6% for Q1 2023.
- The Company reported cash on hand of $18.3 million as of December 31, 2023, compared to $17.2 million as of September 30, 2023. The Company has total credit availability of $41 million as of December 31, 2023, with $20 million available on its revolving credit facility and $21 million available pursuant to a delayed-draw term loan facility.
- The Company maintains a conservative balance sheet with net debt to Adjusted EBITDA leverage of 1.3x.
Operational Highlights:
- The Company's customer base increased 56% year over year to 155,434 unique patients served in Q1 2024 from 99,420 unique patients in Q1 2023.
- Compared to 146,350 unique set-ups/deliveries in Q1 2023, the Company completed 215,370 unique set-ups/deliveries in Q1 2024, an increase of 47%. This includes 123,190 respiratory resupply set-ups/deliveries for the three months ended December 31, 2023, compared to 69,482 for the three months ended December 31, 2022, an increase of 77%, which the Company credits to its continued use of technology and centralized intake processes.
- The Company's resupply program is a major proponent of the Company's 83% recurring revenue base as the Company has significantly scaled, now representing 49% of the recurring revenue mix, driving higher margin revenue. The program now consists of approximately 172,000 patients as of December 31, 2023, compared to approximately 100,000 patients as of December 31, 2022.
- The Company continues to experience very strong demand trends for respiratory equipment, including CPAPs, BiPAPs, oxygen concentrators, ventilators, as well as the CPAP resupply and other supplies business.
- The Company has continued expanding its sales reach, driving organic growth which spans across 26 U.S. states with the addition of experienced sales personnel.
- The Company has 287,500 active patients, 34,400 referring physicians and 125 locations.
Management Commentary:
"We continued experiencing robust demand trends in the first quarter across our diverse product offering and are very pleased with the continued record financial and operational results we have posted. Our commitment to scaling our operations efficiently is evident in our margin profile, which has shown remarkable consistency. Moreover, we saw steady sequential organic growth, reduced our bad debt expense year over year, and significantly improved our net operating cash flow. To maintain our positive momentum and competitive edge, we will continue putting a high priority on strategic investments in both inorganic and organic growth opportunities, including penetrating our key sales touch points, with the continued expansion into continuum markets which has been very successful to date," said CEO and Chairman Gregory Crawford.
"We are actively expanding our patient-centric ecosystem across 26 states, offering specialized clinical respiratory programs, to provide efficient and tailored home treatment. Our strategic initiatives are concentrated in regions with a high COPD prevalence, with a concerted sales effort aimed at penetrating targeted markets to fuel our organic growth trajectory. A significant driver of our growth is our proven diversified business model which has increased our overall performance by extending a patient's lifetime relationship with us and generates higher recurring revenue. Our healthy balance sheet, well-timed organic growth initiatives, and strategic acquisition and integration strategy provide us with ample opportunity to capitalize on the expanding market for at-home clinical respiratory care."
"We take great pride in our continued cost discipline and capital allocation prudency which are the cornerstones of our consistent financial and operating results. Our Fiscal Q1 results underscore this with an Adjusted EBITDA margin of 23.5% of revenue, and net cash flow from operations which came in at 18% of revenue," said Hardik Mehta, Quipt's Chief Financial Officer. "We are thrilled to surpass the milestones of $261 million in Run-Rate Revenue and $61 million of Run-Rate Adjusted EBITDA (both defined in Non-IFRS Measures below). Our strategic capital management approach has endowed us with a conservative balance sheet characterized by a low Leverage Ratio of 1.3x net debt to Adjusted EBITDA, bolstered by over $59 million in available credit and cash on hand. Despite the challenges posed by higher interest rates, our strong financial foundation ensures we are well equipped to pursue our strategic objectives. With our flexible capital structure, we continue to explore diverse avenues to enhance shareholder value. The structure of our operations, coupled with our solid financial position, which includes the ability to increase the size of our senior credit facility, equips us with all the necessary tools to successfully drive our growth strategy forward."
From time to time, the Company is involved in various legal proceedings arising from the ordinary course of business. The Company received a civil investigative demand from the U.S. Attorney's Office for the Northern District of Georgia pursuant to the False Claims Act regarding an investigation concerning whether the Company may have caused the submission of false claims to government healthcare programs for CPAP equipment. The Company is cooperating with the investigation and the DOJ has not indicated to the Company whether it believes the Company engaged in any wrongdoing. No assurance can be given as to the timing or outcome of the DOJ's investigation.
ABOUT QUIPT HOME MEDICAL CORP.
The Company provides in-home monitoring and disease management services including end-to-end respiratory solutions for patients in the United States healthcare market. ...