The global home healthcare market could be worth nearly $635 billion by 2030, says Grand View Research, which could be a significant catalyst for companies such as Quipt Home Medical Corp. (NASDAQ: QIPT) (TSXV: QIPT), Amedisys Inc. (NASDAQ: AMED), LHC Group Inc. (NASDAQ: LHCG), Savaria Corporation (TSX: SIS) (OTC: SISXF) and Addus Homecare Corporation (NASDAQ: ADUS). Driving a good deal of growth, the number of Americans suffering from ailments, such as sleep apnea has been on the rise. In fact, over the last 25 years the number of patients has increased by 70%. Also, the utilization of oxygen among patients 65 and older continues to increase, especially among COPD patients. Plus, we have to consider that the number of Americans with three or more chronic diseases is expected to increase by 171% to more than 83 million people.
One of the Companies Helping is Quipt Home Medical Corp. (NASDAQ: QIPT) (TSXV: QIPT)
Quipt Home Medical Corp., a U.S. based leader in the home medical equipment industry, focused on end-to-end respiratory care, today announced its second quarter fiscal 2022 financial results and operational highlights. These results pertain to the three-month period ended March 31, 2022 and are reported in U.S. Dollars.
Financial Highlights:
- Revenue for Q2 2022 was $33.6 million compared to $24.2 million for Q2 2021, representing a 38% increase in revenue year-over-year. Compared to Q1 2022, the Company experienced sequential organic growth of 2%.
- As of March 31, 2022, the Company’s backlog decreased to approximately 6,500 patients in the queue to be set up on sleep devices. At the start of Fiscal Q3 2022, the Company had the highest CPAP inventory level since the recall began and is continuing to drive patient set-ups to ease the backlog. The Company remains cautiously optimistic that sleep device allocations will increase in the second half of 2022, which will continue to relieve some of the backlog, generating a lift in revenue from this impacted segment of the business.
- The sleep segment revenue impact was approximately $1.0 million to $1.5 million in Q2 2022.
- Recurring Revenue as of Q2 2022 was 77% of total revenue.
- Revenue for the six months ended March 31, 2022 of $63 million, a 34.2% increase from the prior year period.
- Adjusted EBITDA for Q2 2022 was $7.0 million (21% margin), compared to Adjusted EBITDA for Q2 2021 of $5.4 million, representing a 31% increase year-over-year.
- Adjusted EBITDA for the six months ended March 31, 2022 of $13.1 million, a 24% increase from the prior year period, and represented 20.7% of revenue.
- Net income for Q2 2022 was $5 million or $0.14 per fully diluted share, compared to a loss of $12.5 million for Q2 2021 or $(0.43) per fully diluted share.
- Cash flow from continuing operations was $12.2 million for the six months ended March 31, 2022 compared to $6.6 million in the corresponding period.
- The Company reported $17.4 million of cash on hand as at March 31, 2022.
- The Company has an undrawn credit facility of $20 million as at March 31, 2022.
Operational Highlights:
- Through the Company’s continued use of technology and centralized intake processes, respiratory resupply set-ups and/or deliveries increased to 50,713 for the three months ended March 31, 2022, compared to 35,702 for the same period ended March 31, 2021, an increase of 42%.
- The Company’s customer base increased 37% year over year from 56,972 unique patients served in Q2 2021 to 78,273 unique patients in Q2 2022.
- Compared to 118,878 unique set-ups/deliveries in Q2 2022, the Company completed 83,606 unique set-ups/deliveries in Q2 2021, an increase of 42%.
- The Company has recently accelerated its hiring of experienced sales personnel to expand its sales reach across the United States.
- The Company continues to experience robust demand for respiratory equipment, such as Oxygen Concentrators, Ventilators, as well as the CPAP resupply and other supplies business.
- The Company operates out of 87 locations in eighteen states across the United States, completing hundreds of thousands of deliveries each year to more than 180,000 active patients, with over 19,000 referring physicians.
Acquisition Related Updates:
- Completed four acquisitions during the six months ended March 31, 2022 and one subsequent to March 31, 2022.
- On January 1, 2022, the Company acquired At Home Health Equipment, Inc., a business with operations in Indiana, reporting unaudited trailing 12-month annual revenues of approximately $13 million and $1.6 million in net income with anticipated Adjusted EBITDA of $2.9 million (22% margin) post integration. The acquisition added over 15,000 active patients. Integration is near completion.
Subsequent Events to the Three Months Ended March 31, 2021:
- On April 19, 2022, the Company announced the acquisition of Good Night Medical, LLC, a business with operations across seven U.S. states, reporting unaudited trailing 12-month annual revenues of approximately $7.5 million and with anticipated Adjusted EBITDA of $1.5 million (20% margin) post integration. The acquisition added 10,000 active patients, and encompassed locations across seven U.S. states including Arkansas, Georgia, Massachusetts, North Carolina, Ohio, Texas and California. The acquisition provides Quipt an expansionary opportunity into Massachusetts, North Carolina and Texas, which are new U.S. states for Quipt’s coverage sphere including important new commercial insurance contracts. Integration is well underway.
- On April 26, 2022, the Company announced the execution of a national insurance contract with a top five health insurer in the United States, which will expand patient accessibility across the country.
Reiteration of Outlook for Calendar End 2022 (Fiscal Year Q1 2023):
Based on the current operations, market trends and completed and prospective acquisitions, the Company is reiterating its outlook for its annual run-rate revenue by the end of calendar 2022 (Fiscal Q1 2023) to be $180-$190 million with $38-$43 million in run-rate Adjusted EBITDA.
Management Commentary:
“We are extremely proud of the robust results we experienced in our fiscal second quarter which showed accelerating momentum across our heavily weighted respiratory product mix as the quarter progressed. Looking to the beginning of the fiscal third quarter, we are pleased to report we had the highest level of CPAP inventory since the recall began and have seen a positive inventory trend continue in real time,” said CEO and Chairman Greg Crawford. “Moreover, demand remains very strong for at home respiratory care which will continue to foster consistent financial performance. This strong demand coupled with an extremely bullish regulatory environment, provides us the ability to drive our organic and inorganic initiatives over the near term, and we are working diligently to progress on our plan of becoming a leader in clinical respiratory care throughout the United States. On the acquisition front, our pipeline remains very strong with many strategic opportunities ranging in size, and we look forward to progressing on attractive targets to leverage the unparalleled scalable platform we have created. Our strategy is allowing us to grow market share in new and existing markets and we are also excited to accelerate the hiring of experienced sales professionals as we exit the pandemic environment, which we expect to be a drive of future organic growth. We are extremely encouraged about the growth path we are on, carving out a special segment of the homecare industry and we are well positioned to seize the growth opportunity ahead of us.”
Chief Financial Officer Hardik Mehta added, “Our record fiscal second quarter results demonstrate our ability to successfully navigate a challenging operating environment, with revenue reaching $33.6 million, experiencing improving organic growth over fiscal Q1 2022, strong operating cash flow and seeing our Adjusted EBITDA margin accelerate to 21%. The strong performance was driven through elevated demand for oxygen, ventilation therapy and our other supplies business, leading to larger volumes, and continuing to support the business with lower operating costs. We are also very pleased with the integration process of our recent acquisitions, as we continue to drive meaningful cost and revenue synergies. Integration is the key to our ongoing financial and operating success as it positions us to continue working towards potential future strategic acquisitions. We continue to add attractive targets to our already deep acquisition pipeline that fit our stringent criteria including potential expansionary opportunities into synergistic verticals of service that would enhance our end-to-end product and service offering. Our goal is to be very active over the near term and look forward to updating investors on our progress.”
Other related developments from around the markets include:
Amedisys Inc. reported its financial results for the three-month period ended March 31, 2022. Chris Gerard, President and Chief Executive Officer stated, “The start of 2022 saw continuation of the COVID driven challenges we and the industry faced over the past few years and further highlighted how Amedisys’ differentiated strategy presents us with significant opportunities as we navigate an ever-changing landscape. We saw Omicron impact our business and the number of clinicians on quarantine in January; we signed two home health acquisitions and are well on our way to additional inorganic growth; we saw discharge rates in our hospice business reach new highs and subsequently have begun to pull back; and we continued to field a tremendous amount of interest for Hospital at Home and other high-acuity care products. The competitive landscape continues to evolve as COVID impacts linger, yet we still delivered financial results this quarter that I am very proud of. Through the ups and downs, our 21,000 employees continued to do what they do best: providing (or enabling our clinicians to provide) the highest quality care to patients wherever they call home. A sincere thank you to all our employees; it is your care, passion and effort that continues to propel us forward.”
LHC Group announced its financial results for the quarter ended March 31, 2022.
Net service revenue increased 8.9% to $571.5 million. Adjusted net revenue was $575.5 million
Net income attributable to LHC Group's common stockholders was $19.5 million, or $0.64 per diluted share. Adjusted net income attributable to LHC Group's common stockholders was $33.4 million, or $1.09 adjusted earnings per diluted share. Adjusted EBITDA was $54.5 million.
Savaria Corporation, a global leader in the accessibility industry, is pleased to announce its results for the first quarter of fiscal 2022. Revenue for the quarter was $183.5M, up $71.5M or 63.8%, mainly due to the acquisition of Handicare in March 2021 and organic growth in the Accessibility and Patient Care segments. Gross profit was $58.5M, up $21.1M or 56.5%, representing 31.9% of revenue compared to 33.4% in Q1 2021. Operating income was $8.8M, up $2.4M or 38.4%, representing 4.8% of revenue compared to 5.7% in Q1 2021. Adjusted EBITDA was $24.4M, up $7.1M or 41.2%. Adjusted EBITDA margin stood at 13.3%, down 2.1% compared to 15.4% in Q1 2021. Net earnings for the quarter were $5.3M, or $0.08, per share on a diluted basis.
Addus HomeCare Corporation, a provider of home care services, today announced its financial results for the first quarter ended March 31, 2022. Dirk Allison, Chairman and Chief Executive Officer, said, “Addus delivered a strong financial and operating performance for the first quarter of 2022, despite some early challenges related to the surge of the Omicron variant of COVID-19. We had a significant number of caregivers in quarantine in January, which primarily affected our personal care volumes and revenues, which are reimbursed on an hourly rate basis. We were pleased, however, to see a marked decline in caregiver quarantine rates starting in February and continuing through March, resulting in personal care volumes returning to pre-Omicron levels. We are fortunate to have a team of dedicated caregivers who continue to provide outstanding care and support to our patients and their families in a safe and preferred home environment. Like most health care providers, we are facing a tight labor market, and we continue to focus on implementing effective hiring and retention strategies to attract and retain caregivers.
Legal Disclaimer / Except for the historical information presented herein, matters discussed in this article contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Winning Media is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. For making specific investment decisions, readers should seek their own advice. Winning Media is only compensated for its services in the form of cash-based compensation. Pursuant to an agreement Winning Media has been paid three thousand five hundred dollars for advertising and marketing services for Quipt Home Medical Corp. by Quipt Home Medical Corp.. We own ZERO shares of Quipt Home Medical Corp.. Please click here for full disclaimer.
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