- Revenue for Q3 2022 was
$36.7 millioncompared to $26.2 millionfor Q3 2021, representing a 40% increase in revenue year-over-year. Compared to Q2 2022, the Company experienced very strong sequential organic growth of 2%.
- As of
June 30, 2022, the Company’s backlog decreased to approximately 6,000 patients in the queue to be set up on sleep devices. The Company remains optimistic that sleep device allocations will increase through the remainder of 2022, which will continue to relieve some of the backlog, generating a lift in revenue from this impacted segment of the business.
- As of
- Revenue for the nine months ended
June 30, 2022, increased to $99.8 million, or 36.2% compared to the nine months ended June 30, 2021.
- Recurring Revenue as of Q3 2022 was 77% of total revenue.
- Adjusted EBITDA for Q3 2022 was
$7.7 million(21% margin), compared to Adjusted EBITDA for Q3 2021 of $5.3 million(20.2% margin), representing a 44% increase year-over-year.
- Adjusted EBITDA for the nine months ended
June 30, 2022, increased to $20.8 million, or 30.4% compared to the nine months ended June 30, 2021, and represented 20.8% of revenue.
- Cash flow from operations for the nine months ending
June 2022was $19.4 million, compared to $11.2 millionin the corresponding period ending June 2021.
- The Company reported
$18.5 millionof cash on hand as at June 30, 2022.
- Through the Company’s continued use of technology and centralized intake processes, respiratory resupply set-ups and/or deliveries increased to 62,815 for the three months ended
June 30, 2022, compared to 40,580 for the same period ended June 30, 2021, an increase of 55%.
- The Company’s customer base increased 38% year over year from 64,578 unique patients served in Q3 2021 to 89,085 unique patients in Q3 2022.
- Compared to 133,704 unique set-ups/deliveries in Q3 2022, the Company completed 95,192 unique set-ups/deliveries in Q3 2021, an increase of 40%.
April 26, 2022, the Company announced the execution of a national insurance contract with the largest health insurer in the United States, which has expanded patient accessibility across the country. The Company continues to work towards additional national contracts with large health insurers in the United States.
- The Company’s product mix has reached 80% respiratory as of
June 30, 2022.
- The Company has recently accelerated its hiring of experienced sales personnel to expand its sales reach across
the United States. The Company anticipates this will be a key driver of future organic growth.
- 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.
- Effective after the U.S. market open on June 27, 2022., Quipt joined the Russell Microcap Index.
- The Company operates out of 94 locations in nineteen states across
the United States, completing hundreds of thousands of deliveries each year to more than 200,000 active patients, with over 21,600 referring physicians.
Acquisition Related Updates:
April 19, 2022, the Company has closed four acquisitions adding locations across nine U.S.states including Arkansas, Georgia, Massachusetts, Mississippi, North Carolina, Ohio, Texas, California, and Louisiana. Louisianarepresented the 19th state of service, and the total geographical area represented over 5.5 million COPD patients, a key target group. The four acquisitions added over 30,000 active patients, equate to an estimated annualized revenue of $25 millionand, post integration, an estimated over $4.5 millionof Adjusted EBITDA.
- The Company completed seven acquisitions during the nine months ended
June 30, 2022and one subsequent to June 30, 2022.
Subsequent Events to the Three Months Ended
July 26, 2022, the Company executed a supply contract with Cardinal Health at-Home, a business unit of Cardinal Health, Inc., wherein Quipt has agreed to offer to sell, and Cardinal has agreed to supply and distribute, disposable medical supplies nationwide. The contract is extremely meaningful for Quipt as it provides us the ability to produce meaningful cross selling opportunities, including additional product lines to go after in the future. Additionally, any new acquisitions, will benefit from being able to immediately leverage the contract at new locations across the country, providing further synergies with the expectation this contract will give us stronger buying power for disposable medical supplies.
August 9, 2022, the Company exercised its right under the debenture indenture dated March 7, 2019, which governs all of the Company’s 8.0% unsecured convertible debentures issued on March 7, 2019, to convert all of the principal amount outstanding of the remaining debentures into common shares of the Company.
August 15, 2022, the Company received a commitment letter from CIT Bank, a division of First-Citizens Bank & Trust Company, wherein CIT would commit to provide 100% of the senior secured credit facilities in the aggregate amount of up to $80,000,000(to be comprised of a term loan facility of $5,000,000, a delayed draw term loan facility of $55,000,000and a revolving credit facility of $20,000,000). The senior credit facilities will be evidenced by an Amended and Restated Credit and Guaranty Agreement, which will amend and restate the Credit Agreement dated September 18, 2020(announced by the Company on September 21, 2020).
“The robust financial and operating results in the fiscal third quarter are reflective of the continued operational excellence displayed throughout each facet of the organization. Our team of hands-on operators have been able to effectively integrate acquired assets, drive organic growth, and maintain strength in our margins during a well above normal inflationary period. We are very encouraged by the substantial improvement on the labor side as it relates to hiring additional talented team members as we have moved through the year, and we have also seen continued progress on the supply chain in real time. Moreover, we saw accelerating momentum across our respiratory product mix as the quarter progressed, which has continued into fiscal Q4.,” said CEO and Chairman
“There have been several exciting developments over the course of 2022 as we continue building our scalable healthcare platform and expand our continuum of care across the country. During fiscal Q3, we executed a national contract with the largest healthcare insurance provider in
Chief Financial Officer
The financial statements of the Company for the three and nine months ended
The Company provides in-home monitoring and disease management services focused on end-to-end respiratory solutions for patients in
Readers are cautioned that the financial information regarding recent acquisitions disclosed herein is unaudited and derived as a result of the Company’s due diligence, including a review of the acquisition’s bank statements and tax returns.
There can be no assurance that any of the potential acquisitions in the Company’s pipeline or in negotiations will be completed as proposed or at all and no definitive agreements have been executed. Completion of any transaction will be subject to applicable director, shareholder and regulatory approvals.
Unless otherwise specified, all dollar amounts in this press release are expressed in
Certain statements contained in this press release constitute “forward-looking information” as such term is defined in applicable Canadian securities legislation. The words “may”, “would”, “could”, “should”, “potential”, “will”, “seek”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” and similar expressions as they relate to the Company, including: the Company being optimistic that sleep device allocations increasing in the third half of 2022 will relieve some of the backlog, generating a lift in revenue from this impacted segment of the business; the Company anticipating that its acceleration of hiring of experienced sales personnel to expand its sales reach across
This press release refers to “Adjusted EBITDA” which is a non-GAAP and non-IFRS financial measure that does not have a standardized meaning prescribed by GAAP or IFRS. The Company’s presentation of this financial measure may not be comparable to similarly titled measures used by other companies. This financial measure is intended to provide additional information to investors concerning the Company’s performance. Adjusted EBITDA is defined as EBITDA excluding stock-based compensation. Adjusted EBITDA is a Non-IFRS measure the Company uses as an indicator of financial health and excludes several items which may be useful in the consideration of the financial condition of the Company, including interest expense, income taxes, depreciation, amortization, stock-based compensation, goodwill impairment and change in fair value of debentures and financial derivatives. The following table shows our Non-IFRS measure (Adjusted EBITDA) reconciled to our net income for the indicated periods:
|ended June||ended June||ended June||ended June|
|30, 2022||30, 2021||30, 2022||30, 2021|
|Net income (loss)||$||163||$||6,329||$||3,069||$||(4,677||)|
|Depreciation and amortization||5,363||4,768||15,835||12,389|
|Interest expense, net||522||479||1,507||1,480|
|Provision (benefit) for income taxes||155||(535||)||458||(1,941||)|
|Gain (loss) on foreign currency transactions||(44||)||36||82||170|
|Other income from government grant||—||—||(4,254||)||—|
|Change in fair value of debentures and warrants||(177||)||(7,422||)||(1,235||)||6,704|
Management uses this non-IFRS measure as a key metric in the evaluation of the Company’s performance and the consolidated financial results. The Company believes this non-IFRS measure is useful to investors in their assessment of the operating performance and the valuation of the Company. In addition, this non-IFRS measure addresses questions the Company routinely receives from analysts and investors and, in order to assure that all investors have access to similar data, the Company has determined that it is appropriate to make this data available to all investors. However, non-IFRS financial measures are not prepared in accordance with IFRS, and the information is not necessarily comparable to other companies and should be considered as a supplement to, not a substitute for, or superior to, the corresponding measures calculated in accordance with IFRS.
For further information please visit our website at www.Quipthomemedical.com, or contact: