0001729149false00017291492023-08-092023-08-09

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT

Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 9, 2023
 
Viemed Healthcare, Inc.
(Exact name of registrant as specified in its charter)
  
British Columbia, Canada
001-38973N/A
(State or other jurisdiction
of incorporation)		(Commission
File Number)		(I.R.S. Employer
Identification No.)
625 E. Kaliste Saloom Rd.
Lafayette, Louisiana
70508
(Address of principal executive offices)(Zip Code)
(337) 504-3802
(Registrant’s telephone number, including area code) 


(Former name or former address, if changed since last report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common shares, no par value
VMD
The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐



Item 2.02.     Results of Operations and Financial Condition.

On August 9, 2023, Viemed Healthcare, Inc. (the "Company") issued a press release announcing its financial results for the three and six months ended June 30, 2023. The press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

In accordance with General Instruction B.2 of Form 8-K, the foregoing information, including Exhibit 99.1, shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall such information and Exhibit 99.1 be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01.    Financial Statements and Exhibits
(d)Exhibits
 
Exhibit
Number
Description
104     Cover Page Interactive Data File, formatted in Inline XBRL and included as Exhibit 101


SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: August 9, 2023
 
VIEMED HEALTHCARE, INC.
By:
/s/ Trae Fitzgerald
Trae Fitzgerald
Chief Financial Officer

































VIEMED HEALTHCARE ANNOUNCES SECOND QUARTER 2023 FINANCIAL RESULTS

Lafayette, Louisiana (August 9, 2023) Viemed Healthcare, Inc. (the “Company” or “Viemed”) (NASDAQ:VMD and TSX:VMD.TO), a national leader in respiratory care and technology-enabled home medical equipment services, announced today that it has reported its financial results for the three and six months ended June 30, 2023.

Operational highlights (all dollar amounts are USD):

•Net revenues attributable to the Company's core business for the quarter ended June 30, 2023 reached a new Company record of $43.3 million, representing an increase of $10.2 million, or 31%, over core net revenues reported for the comparable quarter ended June 30, 2022. Net revenues for the quarter ended June 30, 2023 included approximately $2.5 million of revenues related to the HMP acquisition and were up approximately 9% over the quarter ended March 31, 2023.

•Net income for the quarter ended June 30, 2023 totaled $2.3 million. Adjusted EBITDA for the quarter ended June 30, 2023 totaled $9.8 million, a 52% increase as compared to the quarter ended June 30, 2022. A reconciliation of reported non-GAAP financial measures to their most directly comparable U.S. GAAP financial measures can be found in the tables accompanying this press release.

•On June 1, 2023, the Company completed its acquisition of Home Medical Products, Inc. ("HMP"), which operates in Tennessee, Alabama, and Mississippi. Viemed acquired 100% of the equity ownership of HMP in exchange for approximately $28 million in cash at closing, subject to post-closing net working capital and other adjustments. The results of HMP’s operations have been included in the consolidated financial statements since the date of acquisition and were immediately accretive to net income and earnings per share.

•As of June 30, 2023, the Company maintains a strong cash balance of $10.2 million ($16.9 million at December 31, 2022) and an overall working capital balance of $4.4 million ($20.9 million at December 31, 2022). Long term debt as of June 30, 2023 amounted to $12.1 million (the Company had no long term debt at December 31, 2022) and the Company has $47 million available under existing credit facilities.

•The Company expects to generate net revenues of approximately $49.0 million to $50.2 million during the third quarter of 2023.

“We find ourselves in an exceptional position, leveraging the prevailing tailwinds in the operating environment to extend our reach and impact on more patients than ever before,” said Casey Hoyt, Viemed's CEO. "The foundation of our success lies in our robust and resilient business model, which has consistently demonstrated its strength in meeting challenges head-on and driving sustainable growth. We are now taking our growth to new heights by executing on strategic and accretive acquisitions that complement our existing capabilities. These acquisitions serve as powerful catalysts, accelerating the expansion of our comprehensive respiratory offerings."

Conference Call Details

The Company will host a conference call to discuss second quarter results on Thursday, August 10, 2023 at 11:00 a.m. ET.

Interested parties may participate in the call by dialing:

877-407-6176 (US Toll-Free)
201-689-8451 (International)

Live Audio Webcast: https://event.choruscall.com/mediaframe/webcast.html?webcastid=COGHUH2E

Following the conclusion of the call, an audio recording and transcript of the call can be accessed on the Company's website.



ABOUT VIEMED HEALTHCARE, INC.

Viemed is a provider of in-home medical equipment and post-acute respiratory healthcare services in the United States. Viemed’s service offerings are focused on effective in-home treatment with clinical practitioners providing therapy and counseling to patients in their homes using cutting edge technology. Visit our website at www.viemed.com.

For further information, please contact:

Glen Akselrod
Bristol Capital
905-326-1888
glen@bristolir.com

Todd Zehnder
Chief Operating Officer
Viemed Healthcare, Inc.
337-504-3802
investorinfo@viemed.com

Forward-Looking Statements

Certain statements contained in this press release may constitute “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 or “forward-looking information” as such term is defined in applicable Canadian securities legislation (collectively, “forward-looking statements”). Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “potential”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, “believes”, or “projects”, or the negatives thereof or variations of such words and phrases or statements that certain actions, events or results “will”, “should”, “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved” or the negative of these terms or comparable terminology. All statements other than statements of historical fact, including those that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance, including the Company's net revenue guidance for the third quarter, are not historical facts and may be forward-looking statements and may involve estimates, assumptions and uncertainties that could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements. Such statements reflect the Company's current views and intentions with respect to future events, and current information available to the Company, and are subject to certain risks, uncertainties and assumptions. Many factors could cause the actual results, performance or achievements that may be expressed or implied by such forward-looking statements to vary from those described herein should one or more of these risks or uncertainties materialize. These factors include, without limitation: the general business, market and economic conditions in the regions in which the Company operates; the impact of the COVID-19 pandemic and the actions taken by governmental authorities, individuals and companies in response to the pandemic on our business, financial condition and results of operations, including on the Company's patient base, revenues, employees, and equipment and supplies; significant capital requirements and operating risks that the Company may be subject to; the ability of the Company to implement business strategies and pursue business opportunities; volatility in the market price of the Company's common shares; the Company’s novel business model; the state of the capital markets; the availability of funds and resources to pursue operations; reductions in reimbursement rates and audits of reimbursement claims by various governmental and private payor entities; dependence on few payors; possible new drug discoveries; dependence on key suppliers; granting of permits and licenses in a highly regulated business; competition; disruptions in or attacks (including cyber-attacks) on the Company's information technology, internet, network access or other voice or data communications systems or services; the evolution of various types of fraud or other criminal behavior to which the Company is exposed; difficulty integrating newly acquired businesses; the impact of new and changes to, or application of, current laws and regulations; the overall difficult litigation and regulatory environment; increased competition; increased funding costs and market volatility due to market illiquidity and competition for funding; critical accounting estimates and changes to accounting standards, policies, and methods used by the Company; the Company’s status as an emerging growth company and a smaller reporting company; and the occurrence of natural and unnatural catastrophic events or health epidemics or concerns, such as the COVID-19 pandemic, and claims resulting from such events or concerns; as well as those risk factors discussed or referred to in the Company’s disclosure documents filed with the U.S. Securities and Exchange Commission (the “SEC”) available on the SEC’s website at www.sec.gov, including the Company’s most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q, and with the securities regulatory authorities in certain provinces of Canada available at www.sedar.com. Should any factor affect the Company in an unexpected manner, or should assumptions underlying the forward-looking statements prove incorrect, the actual results or events may differ materially from the results or events predicted. Any such forward-looking statements are expressly qualified in their entirety by this cautionary statement. Moreover, the Company does not assume responsibility for the accuracy or completeness of such forward-looking statements. The forward-looking statements included in this press release are made as of the date of this press release and the Company undertakes no obligation to publicly update or revise any forward-looking statements, other than as required by applicable law.


VIEMED HEALTHCARE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Expressed in thousands of U.S. Dollars, except share amounts)
(Unaudited)
At
June 30, 2023		At
December 31, 2022
ASSETS
Current assets
Cash and cash equivalents$10,224 $16,914 
Accounts receivable, net17,893 15,379 
Inventory4,476 3,574 
Income tax receivable1,029 26 
Prepaid expenses and other assets2,327 3,849 
Total current assets$35,949 $39,742 
Long-term assets
Property and equipment, net72,884 67,743 
Finance lease right-of-use assets538 — 
Operating lease right-of-use assets516 694 
Equity investments1,942 2,155 
Debt investment2,110 2,000 
Deferred tax asset3,844 3,119 
Identifiable intangibles, net688 — 
Goodwill29,759 — 
Other long-term assets887 1,590 
Total long-term assets$113,168 $77,301 
TOTAL ASSETS$149,117 $117,043 
LIABILITIES
Current liabilities
Trade payables$6,167 $2,650 
Deferred revenue5,960 4,624 
Accrued liabilities15,509 11,092 
Finance lease liabilities, current portion375 — 
Operating lease liabilities, current portion 395 495 
Current debt3,169 — 
Total current liabilities$31,575 $18,861 
Long-term liabilities
Accrued liabilities637 889 
Finance lease liabilities, less current portion 143 — 
Operating lease liabilities, less current portion143 199 
Long-term debt12,114 — 
Total long-term liabilities$13,037 $1,088 
TOTAL LIABILITIES$44,612 $19,949 
Commitments and Contingencies— — 
SHAREHOLDERS' EQUITY
Common stock - No par value: unlimited authorized; 38,400,422 and 38,049,739 issued and outstanding as of June 30, 2023 and December 31, 2022, respectively17,850 15,123 
Additional paid-in capital13,488 12,125 
Retained earnings73,167 69,846 
TOTAL SHAREHOLDERS' EQUITY$104,505 $97,094 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY$149,117 $117,043 


VIEMED HEALTHCARE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(Expressed in thousands of U.S. Dollars, except outstanding shares and per share amounts)
(Unaudited)
Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
Revenue$43,311 $33,310 $82,867 $65,565 
Cost of revenue17,205 12,920 32,757 25,432 
Gross profit$26,106 $20,390 $50,110 $40,133 
Operating expenses
Selling, general and administrative20,563 17,536 40,325 33,312 
Research and development758672 1,5381,304 
Stock-based compensation1,471 1,271 2,862 2,576 
Depreciation298 243 538 480 
Loss (gain) on disposal of property and equipment117 (110)95 (124)
     Other (income) expense, net(2)(223)(83)(664)
Income from operations$2,901 $1,001 $4,835 $3,249 
Non-operating income and expenses
Income from equity method investments137446172 769 
Interest income (expense), net20 (59)69 (123)
Net income before taxes3,058 1,388 5,076 3,895 
Provision for income taxes728 421 1,229 1,166 
Net income$2,330 $967 $3,847 $2,729 
Other comprehensive income (loss)
Change in unrealized gain/loss on derivative instruments, net of tax— 59 — 222 
Other comprehensive income (loss)$— $59 $— $222 
Comprehensive income$2,330 $1,026 $3,847 $2,951 
Net income per share
Basic$0.06 $0.02 $0.10 $0.07 
Diluted$0.06 $0.02 $0.10 $0.07 
Weighted average number of common shares outstanding:
Basic 38,324,249 38,773,580 38,240,902 39,195,317 
Diluted40,676,951 39,752,928 40,383,616 40,056,953 


VIEMED HEALTHCARE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Expressed in thousands of U.S. Dollars)
(Unaudited)
Six Months Ended June 30,
20232022
Cash flows from operating activities
Net income$3,847 $2,729 
Adjustments for:
Depreciation9,968 7,136 
Change in inventory reserve— (1,418)
Stock-based compensation expense2,862 2,576 
Distributions of earnings received from equity method investments392 612 
Income from equity method investments(172)(769)
Income from debt investment(110)— 
Loss (gain) on disposal of property and equipment95 (124)
Deferred income tax (benefit) expense(725)745 
Changes in working capital, net of effects from acquisitions:
Accounts receivable, net(500)(1,464)
Inventory(320)1,022 
Prepaid expenses and other assets2,076 (634)
Trade payables(488)(243)
Deferred revenue604 649 
Accrued liabilities1,593 (87)
Income tax payable/receivable(1,003)1,362 
Net cash provided by operating activities$18,119 $12,092 
Cash flows from investing activities
Purchase of property and equipment(10,759)(10,989)
Investment in equity investments(7)(121)
Cash paid for acquisition of HMP, net of cash acquired(27,121)— 
Proceeds from sale of property and equipment1,775 615 
Net cash used in investing activities$(36,112)$(10,495)
Cash flows from financing activities
Proceeds from exercise of options1,228 — 
Proceeds from term notes5,000 — 
Principal payments on term notes(1,357)(78)
Proceeds from revolving credit facilities8,000 — 
Payments on revolving credit facilities(1,005)(872)
Shares redeemed to pay income tax(526)(119)
Shares repurchased under the share repurchase program— (7,001)
Repayments of lease liabilities(37)(13)
Net cash provided by (used in) financing activities$11,303 $(8,083)
Net decrease in cash and cash equivalents(6,690)(6,486)
Cash and cash equivalents at beginning of year16,914 28,408 
Cash and cash equivalents at end of period$10,224 $21,922 
Supplemental disclosures of cash flow information
Cash paid during the period for interest$169 $128 
Cash paid (received) during the period for income taxes, net of refunds$3,093 $(940)


Non-GAAP Financial Measures

This press release refers to “Adjusted EBITDA”, which is a financial measure that is not prepared in accordance with generally accepted accounting principles in the United States ("GAAP"). Management believes Adjusted EBITDA provides helpful information with respect to the Company’s operating performance as viewed by management, including a view of the Company’s business that is not dependent on the impact of the Company’s capitalization structure and items that are not part of the Company’s day-to-day operations. Management uses Adjusted EBITDA (i) to compare the Company’s operating performance on a consistent basis, (ii) to calculate incentive compensation for the Company’s employees, (iii) for planning purposes, including the preparation of the Company’s internal annual operating budget, and (iv) to evaluate the performance and effectiveness of the Company’s operational strategies. Accordingly, management believes that Adjusted EBITDA provides useful information in understanding and evaluating the Company’s operating performance in the same manner as management. In calculating Adjusted EBITDA, certain items (mostly non-cash) are excluded from net income including interest, taxes, stock based compensation, and depreciation of property and equipment. Beginning with financial results reported for periods in fiscal year 2023, Adjusted EBITDA also excludes transaction costs and expenses related to acquisition and integration efforts associated with recently announced or completed acquisitions. This modification enables investors to compare period-over-period results on a more consistent basis without the effects of acquisitions. We have recast Adjusted EBITDA for prior periods when reported to conform to the modified presentation.

The following table is a reconciliation of net income (loss), the most directly comparable U.S. GAAP measure, to Adjusted EBITDA, on a historical basis for the periods indicated:

VIEMED HEALTHCARE, INC.
Reconciliation of Net Income to Non-GAAP Adjusted EBITDA
(Expressed in thousands of U.S. Dollars)
(Unaudited)
For the quarter endedJune 30, 2023March 31, 2023December 31, 2022September 30, 2022June 30, 2022March 31, 2022December 31, 2021September 30, 2021
Net Income$2,330 $1,517 $2,438 $1,055 $967 $1,762 $4,087 $1,789 
Add back:
Depreciation5,207 4,762 4,373 4,120 3,740 3,397 3,120 2,867 
Interest expense (income)(20)(49)32 42 59 64 69 75 
Stock-based compensation(a)
1,471 1,391 1,317 1,309 1,271 1,305 1,305 1,302 
Transaction costs(b)
94 206 — — — — — — 
Income tax expense728 501 1,146 456 421 745 968 1,386 
Adjusted EBITDA$9,810 $8,328 $9,306 $6,982 $6,458 $7,273 $9,549 $7,419 

(a) Represents non-cash, equity-based compensation expense associated with option and RSU awards.
(b) Represents transaction costs and expenses related to acquisition and integration efforts associated with recently announced or completed acquisitions.

Three Months Ended June 30, 2023Six Months Ended June 30, 2023
Net Income$2,330$3,847 
Add back:
Depreciation5,207 9,969 
Interest expense(20)(69)
Stock-based compensation(a)
1,471 2,862 
Transaction costs(b)
94 300 
Income tax expense (benefit)728 1,229 
Adjusted EBITDA$9,810 $18,138 

(a) Represents non-cash, equity-based compensation expense associated with option and RSU awards.
(b) Represents transaction costs and expenses related to acquisition and integration efforts associated with recently announced or completed acquisitions.





Use of Non-GAAP Financial Measures

Adjusted EBITDA should be considered in addition to, not as a substitute for, or superior to, financial measures calculated in accordance with U.S. GAAP. It is not a measurement of the Company’s financial performance under U.S. GAAP and should not be considered as an alternative to revenue or net income, as applicable, or any other performance measures derived in accordance with U.S. GAAP and may not be comparable to other similarly titled measures of other companies or businesses. Adjusted EBITDA has limitations as an analytical tool and you should not consider it in isolation or as a substitute for analysis of the Company’s operating results as reported under U.S. GAAP. Adjusted EBITDA does not reflect the impact of certain cash charges resulting from matters the Company considers not to be indicative of ongoing operations; and other companies in the Company’s industry may calculate Adjusted EBITDA differently than we do, limiting its usefulness as a comparative measure.


VIEMED HEALTHCARE, INC.
Key Financial and Operational Information
(Expressed in thousands of U.S. Dollars, except vent patients)
(Unaudited)
For the quarter endedJune 30,
2023		March 31, 2023December 31, 2022September 30, 2022June 30, 2022March 31, 2022December 31, 2021September 30, 2021
Financial Information:
Revenue$43,311 $39,556 $37,508 $35,759 $33,310 $32,255 $31,962 $29,285 
Gross Profit$26,106 $24,004 $22,896 $21,651 $20,390 $19,743 $19,662 $18,381 
Gross Profit %60 %61 %61 %61 %61 %61 %62 %63 %
Net Income$2,330 $1,517 $2,438 $1,055 $967 $1,762 $4,087 $1,789 
Cash (As of)$10,224 $23,544 $16,914 $21,478 $21,922 $29,248 $28,408 $26,867 
Total Assets (As of)$149,117 $124,634 $117,043 $119,419 $115,904 $119,007 $117,962 $115,486 
Adjusted EBITDA(1)
$9,810 $8,328 $9,306 $6,982 $6,458 $7,273 $9,549 $7,419 
Operational Information:
Vent Patients(2)
10,005 9,337 9,306 9,127 8,837 8,434 8,405 8,200 
(1)Refer to "Non-GAAP Financial Measures" section above for definition of Adjusted EBITDA.
(2)Vent Patients represents the number of active ventilator patients on recurring billing service at the end of each calendar quarter.






v3.23.2
Cover
Aug. 09, 2023
Cover [Abstract]  
Document Type 8-K
Document Period End Date Aug. 09, 2023
Entity Registrant Name Viemed Healthcare, Inc.
Entity File Number 001-38973
Entity Incorporation, State or Country Code Z4
Entity Address, Address Line One 625 E. Kaliste Saloom Rd.
Entity Address, Postal Zip Code 70508
Entity Address, City or Town Lafayette
Entity Address, State or Province LA
City Area Code 337
Local Phone Number 504-3802
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common shares, no par value
Trading Symbol VMD
Security Exchange Name NASDAQ
Entity Emerging Growth Company true
Entity Ex Transition Period false
Entity Central Index Key 0001729149
Amendment Flag false
VieMed Healthcare (NASDAQ:VMD)
Historical Stock Chart
From Apr 2024 to May 2024 Click Here for more VieMed Healthcare Charts.
VieMed Healthcare (NASDAQ:VMD)
Historical Stock Chart
From May 2023 to May 2024 Click Here for more VieMed Healthcare Charts.