Viemed Healthcare, Inc. (the “Company” or “Viemed”) (NASDAQ:VMD and
TSX: VMD.TO), a home medical equipment supplier and the nation’s
largest independent provider of ventilation that provides
post-acute respiratory care services, announced today that it has
reported its financial results for the three months ended March 31,
2022.
Operational highlights (all dollar
amounts are USD):
- Net revenues attributable to the
Company's core business for the quarter ended March 31, 2022 were
$30.2 million, a new Company record, and an increase of $4.7
million or 18% over the quarter ended March 31, 2021. Total net
revenues for the current quarter were $32.3 million, which included
approximately $2.1 million for contact and vaccine tracing services
related to the COVID-19 pandemic.
- Net income before taxes for the
quarter ended March 31, 2022 totaled approximately
$2.5 million, compared to $1.5 million for the quarter
ended March 31, 2021.
- Adjusted EBITDA for the quarter
ended March 31, 2022 totaled approximately $7.3 million, a 33%
increase as compared to the quarter ended March 31, 2021. 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.
- The Company had a cash balance of
$29.2 million at March 31, 2022 ($28.4 million at December 31,
2021) and an overall working capital balance of $30.1 million
($29.5 million at December 31, 2021). Total long-term debt as of
March 31, 2022 was $4.5 million ($4.6 million at December 31,
2021).
- The Company repurchased and
cancelled 389,878 shares under the share repurchase program during
the quarter ended March 31, 2022 and has continued its repurchase
program during the current quarter.
- The Company expects to generate net
revenues attributable to its core business of approximately $32.1
million to $32.8 million during the second quarter of 2022. While
the Company's COVID-19 response related business has slowed during
the current year, the Company is continuing to pursue additional
sales and support revenues and estimates second quarter 2022
revenues of approximately $0.2 million to $0.3 million related to
the COVID-19 pandemic. Total revenues for the second quarter of
2022 are estimated to be approximately $32.3 million to $33.1
million.
“The record setting quarter in our core business
is a reflection of the momentum we are beginning to see in a post
pandemic environment,” said Casey Hoyt, Viemed’s CEO. “Our
investments in people, technology, and inventory during the
pandemic have positioned us extremely well to actively engage with
patients, providers, and payors as pandemic restrictions abate. We
are invigorated by the increasing opportunities for face-to-face
interaction with the people we serve in the coming months.”
Conference Call Details
The Company will host a conference call to discuss first quarter
results on Wednesday, May 4, 2022 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://services.choruscall.com/mediaframe/webcast.html?webcastid=xWYBk1hn
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 AkselrodBristol Capital905-326-1888glen@bristolir.com
Todd ZehnderChief Operating OfficerViemed Healthcare,
Inc.337-504-3802investorinfo@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 second
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 risk that the clinical application of treatments that
demonstrate positive results in a study may not be positively
replicated or that such test results may not be predictive of
actual treatment results or may not result in the adoption of such
treatments by providers; 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 and the recall of certain Royal Philips BiPAP and
CPAP devices and ventilators that we distribute and sell; granting
of permits and licenses in a highly regulated business;
competition; low profit market segments; 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; the
failure of third parties to comply with their obligations;
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; changes in foreign currency rates; 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)
| |
|
AtMarch 31, 2022 |
|
AtDecember 31, 2021 |
| ASSETS |
|
|
|
|
| Current
assets |
|
|
|
|
|
Cash and cash equivalents |
|
$ |
29,248 |
|
|
$ |
28,408 |
|
|
Accounts receivable, net of allowance for doubtful accounts of
$8,484 and $7,031 at March 31, 2022 and December 31, 2021,
respectively |
|
|
13,599 |
|
|
|
12,823 |
|
|
Inventory, net of inventory reserve of $0 and $1,418 at March 31,
2022 and December 31, 2021, respectively |
|
|
2,503 |
|
|
|
2,457 |
|
|
Income tax receivable |
|
|
676 |
|
|
|
1,893 |
|
|
Prepaid expenses and other assets |
|
|
1,778 |
|
|
|
1,729 |
|
| Total current
assets |
|
$ |
47,804 |
|
|
$ |
47,310 |
|
| Long-term
assets |
|
|
|
|
|
Property and equipment, net |
|
|
63,977 |
|
|
|
62,846 |
|
|
Equity investments |
|
|
2,359 |
|
|
|
2,157 |
|
|
Deferred tax asset |
|
|
3,985 |
|
|
|
4,787 |
|
|
Other long-term assets |
|
|
882 |
|
|
|
862 |
|
| Total long-term
assets |
|
$ |
71,203 |
|
|
$ |
70,652 |
|
| TOTAL
ASSETS |
|
$ |
119,007 |
|
|
$ |
117,962 |
|
| |
|
|
|
|
|
LIABILITIES |
|
|
|
|
| Current
liabilities |
|
|
|
|
|
Trade payables |
|
$ |
3,697 |
|
|
$ |
3,239 |
|
|
Deferred revenue |
|
|
3,888 |
|
|
|
3,753 |
|
|
Accrued liabilities |
|
|
8,739 |
|
|
|
8,875 |
|
|
Current portion of lease liabilities |
|
|
361 |
|
|
|
464 |
|
|
Current portion of long-term debt |
|
|
1,049 |
|
|
|
1,480 |
|
| Total current
liabilities |
|
$ |
17,734 |
|
|
$ |
17,811 |
|
| Long-term
liabilities |
|
|
|
|
|
Accrued liabilities |
|
|
731 |
|
|
|
757 |
|
|
Long-term lease liabilities |
|
|
232 |
|
|
|
268 |
|
|
Long-term debt |
|
|
4,266 |
|
|
|
4,306 |
|
| Total long-term
liabilities |
|
$ |
5,229 |
|
|
$ |
5,331 |
|
| TOTAL
LIABILITIES |
|
$ |
22,963 |
|
|
$ |
23,142 |
|
| |
|
|
|
|
| Commitments and
Contingencies |
|
|
— |
|
|
|
— |
|
| |
|
|
|
|
| SHAREHOLDERS’
EQUITY |
|
|
|
|
|
Common stock - No par value: unlimited authorized; 39,293,778 and
39,640,388 issued and outstanding as of March 31, 2022 and December
31, 2021, respectively |
|
|
14,348 |
|
|
|
14,014 |
|
|
Additional paid-in capital |
|
|
8,720 |
|
|
|
7,749 |
|
|
Accumulated other comprehensive loss |
|
|
(115 |
) |
|
|
(278 |
) |
|
Retained earnings |
|
|
73,091 |
|
|
|
73,335 |
|
| TOTAL SHAREHOLDERS’
EQUITY |
|
$ |
96,044 |
|
|
$ |
94,820 |
|
| TOTAL LIABILITIES AND
SHAREHOLDERS’ EQUITY |
|
$ |
119,007 |
|
|
$ |
117,962 |
|
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 March 31, |
|
|
|
2022 |
|
|
|
2021 |
|
| Revenue |
$ |
32,255 |
|
|
$ |
28,416 |
|
| |
|
|
|
| Cost of revenue |
|
12,512 |
|
|
|
10,674 |
|
| |
|
|
|
| Gross
profit |
$ |
19,743 |
|
|
$ |
17,742 |
|
| |
|
|
|
| Operating
expenses |
|
|
|
|
Selling, general and administrative |
|
15,776 |
|
|
|
14,509 |
|
|
Research and development |
|
632 |
|
|
|
339 |
|
|
Stock-based compensation |
|
1,305 |
|
|
|
1,307 |
|
|
Depreciation |
|
237 |
|
|
|
200 |
|
| Other (income) expense |
|
(455 |
) |
|
|
55 |
|
| Income from
operations |
$ |
2,248 |
|
|
$ |
1,332 |
|
| |
|
|
|
| Non-operating income
and expenses |
|
|
|
|
Income from equity method investments |
|
(323 |
) |
|
|
(220 |
) |
|
Interest expense, net of interest income |
|
64 |
|
|
|
91 |
|
| |
|
|
|
| Net income before
taxes |
|
2,507 |
|
|
|
1,461 |
|
|
Provision (benefit) for income taxes |
|
745 |
|
|
|
(223 |
) |
| |
|
|
|
| Net
income |
$ |
1,762 |
|
|
$ |
1,684 |
|
| |
|
|
|
| Other comprehensive
income |
|
|
|
|
Change in unrealized gain/loss on derivative instruments, net of
tax |
|
163 |
|
|
|
106 |
|
| Other comprehensive
income |
$ |
163 |
|
|
$ |
106 |
|
| |
|
|
|
| Comprehensive
income |
$ |
1,925 |
|
|
$ |
1,790 |
|
| |
|
|
|
| Net income per
share |
|
|
|
|
Basic |
$ |
0.04 |
|
|
$ |
0.04 |
|
|
Diluted |
$ |
0.04 |
|
|
$ |
0.04 |
|
| |
|
|
|
| Weighted average
number of common shares outstanding: |
|
|
|
|
Basic |
|
39,621,741 |
|
|
|
39,129,407 |
|
|
Diluted |
|
40,363,456 |
|
|
|
40,663,368 |
|
VIEMED HEALTHCARE,
INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS(Expressed in thousands of U.S.
Dollars)(Unaudited)
| |
|
Three Months Ended March 31, |
|
|
|
|
2022 |
|
|
|
2021 |
|
| Cash flows from
operating activities |
|
|
|
|
| Net income |
|
$ |
1,762 |
|
|
$ |
1,684 |
|
| Adjustments for: |
|
|
|
|
|
Depreciation |
|
|
3,397 |
|
|
|
2,609 |
|
|
Change in allowance for doubtful accounts |
|
|
3,445 |
|
|
|
1,819 |
|
|
Change in inventory reserve |
|
|
(1,418 |
) |
|
|
(4 |
) |
|
Share-based compensation |
|
|
1,305 |
|
|
|
1,307 |
|
|
Distributions of earnings received from equity method
investments |
|
|
221 |
|
|
|
— |
|
|
Income from equity method investments |
|
|
(323 |
) |
|
|
(220 |
) |
|
(Gain) Loss on disposal of property and equipment |
|
|
(14 |
) |
|
|
76 |
|
|
Deferred income tax expense (benefit) |
|
|
745 |
|
|
|
(222 |
) |
| Net change in working
capital |
|
|
|
|
|
Increase in accounts receivable |
|
|
(4,221 |
) |
|
|
(2,728 |
) |
|
Decrease in inventory |
|
|
1,372 |
|
|
|
94 |
|
|
Increase in prepaid expenses and other assets |
|
|
(68 |
) |
|
|
(161 |
) |
|
(Decrease) increase in trade payables |
|
|
(467 |
) |
|
|
438 |
|
|
Increase in deferred revenue |
|
|
135 |
|
|
|
13 |
|
|
Increase (decrease) in accrued liabilities |
|
|
58 |
|
|
|
(77 |
) |
|
Change in income tax payable/receivable |
|
|
1,217 |
|
|
|
— |
|
| Net cash provided by
operating activities |
|
$ |
7,146 |
|
|
$ |
4,628 |
|
| |
|
|
|
|
| Cash flows from
investing activities |
|
|
|
|
|
Purchase of property and equipment |
|
|
(3,963 |
) |
|
|
(1,797 |
) |
|
Investment in equity investments |
|
|
(100 |
) |
|
|
— |
|
|
Proceeds from sale of property and equipment |
|
|
256 |
|
|
|
99 |
|
| Net cash used in
investing activities |
|
$ |
(3,807 |
) |
|
$ |
(1,698 |
) |
| |
|
|
|
|
| Cash flows from
financing activities |
|
|
|
|
|
Proceeds from exercise of options |
|
|
— |
|
|
|
65 |
|
|
Principal payments on notes payable |
|
|
(39 |
) |
|
|
(37 |
) |
|
Principal payments on term note |
|
|
(433 |
) |
|
|
(414 |
) |
|
Shares repurchased under the share repurchase program |
|
|
(1,887 |
) |
|
|
— |
|
|
Shares redeemed to pay income tax |
|
|
(119 |
) |
|
|
(1,434 |
) |
|
Repayments of lease liabilities |
|
|
(21 |
) |
|
|
(994 |
) |
| Net cash used in
financing activities |
|
$ |
(2,499 |
) |
|
$ |
(2,814 |
) |
| |
|
|
|
|
| Net (decrease)
increase in cash and cash equivalents |
|
|
840 |
|
|
|
116 |
|
| Cash and cash
equivalents at beginning of year |
|
|
28,408 |
|
|
|
30,981 |
|
| Cash and cash
equivalents at end of period |
|
$ |
29,248 |
|
|
$ |
31,097 |
|
| |
|
|
|
|
| Supplemental
disclosures of cash flow information |
|
|
|
|
|
Cash paid during the period for interest |
|
$ |
66 |
|
|
$ |
117 |
|
|
Refunds received during the period for income taxes |
|
$ |
1,217 |
|
|
$ |
— |
|
| Supplemental
disclosures of non-cash transactions |
|
|
|
|
|
Net non-cash changes to finance leases |
|
$ |
— |
|
|
$ |
12 |
|
|
Net non-cash changes to operating leases |
|
$ |
— |
|
|
$ |
85 |
|
Non-GAAP Financial Measures
This press release refers to “Adjusted EBITDA”
which is a non-GAAP financial measure that does not have a
standardized meaning prescribed by U.S. GAAP. The Company's
presentation of this financial measure may not be comparable to
similarly titled measures used by other companies. Adjusted EBITDA
is defined as net income (loss) before interest expense, income tax
expense (benefit), depreciation, and stock-based compensation.
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.
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 ended |
March 31,2022 |
December 31,2021 |
September 30,2021 |
June 30,2021 |
March 31,2021 |
December 31,2020 |
September 30,2020 |
June 30,2020 |
|
Net Income |
$ |
1,762 |
$ |
4,087 |
$ |
1,789 |
$ |
1,566 |
$ |
1,684 |
|
$ |
5,071 |
$ |
2,804 |
$ |
19,412 |
|
| Add back: |
|
|
|
|
|
|
|
|
|
Depreciation |
|
3,397 |
|
3,120 |
|
2,867 |
|
2,716 |
|
2,609 |
|
|
2,835 |
|
2,425 |
|
2,190 |
|
|
Interest expense |
|
64 |
|
69 |
|
75 |
|
83 |
|
91 |
|
|
100 |
|
116 |
|
135 |
|
|
Stock-based compensation |
|
1,305 |
|
1,305 |
|
1,302 |
|
1,236 |
|
1,307 |
|
|
1,301 |
|
1,234 |
|
1,196 |
|
|
Income tax expense (benefit) |
|
745 |
|
968 |
|
1,386 |
|
1,246 |
|
(223 |
) |
|
151 |
|
1,141 |
|
(6,646 |
) |
|
Adjusted EBITDA |
$ |
7,273 |
$ |
9,549 |
$ |
7,419 |
$ |
6,847 |
$ |
5,468 |
|
$ |
9,458 |
$ |
7,720 |
$ |
16,287 |
|
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 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 ended |
March 31,2022 |
December 31,2021 |
September 30,2021 |
June 30,2021 |
March 31,2021 |
December 31,2020 |
September 30,2020 |
June 30,2020 |
| Financial
Information: |
|
|
|
|
|
|
|
|
Revenue |
$ |
32,255 |
|
$ |
31,962 |
|
$ |
29,285 |
|
$ |
27,399 |
|
$ |
28,416 |
|
$ |
31,202 |
|
$ |
33,447 |
|
$ |
42,854 |
|
| Gross Profit |
$ |
19,743 |
|
$ |
19,662 |
|
$ |
18,381 |
|
$ |
17,625 |
|
$ |
17,742 |
|
$ |
19,178 |
|
$ |
19,453 |
|
$ |
25,927 |
|
| Gross Profit % |
|
61 |
% |
|
62 |
% |
|
63 |
% |
|
64 |
% |
|
62 |
% |
|
61 |
% |
|
58 |
% |
|
61 |
% |
| Net Income |
$ |
1,762 |
|
$ |
4,087 |
|
$ |
1,789 |
|
$ |
1,566 |
|
$ |
1,684 |
|
$ |
5,071 |
|
$ |
2,804 |
|
$ |
19,412 |
|
| Cash (As of) |
$ |
29,248 |
|
$ |
28,408 |
|
$ |
26,867 |
|
$ |
31,151 |
|
$ |
31,097 |
|
$ |
30,981 |
|
$ |
32,396 |
|
$ |
29,707 |
|
| Total Assets (As of) |
$ |
119,007 |
|
$ |
117,962 |
|
$ |
115,486 |
|
$ |
111,014 |
|
$ |
113,001 |
|
$ |
112,560 |
|
$ |
113,969 |
|
$ |
112,178 |
|
| Adjusted EBITDA(1) |
$ |
7,273 |
|
$ |
9,549 |
|
$ |
7,419 |
|
$ |
6,847 |
|
$ |
5,468 |
|
$ |
9,458 |
|
$ |
7,720 |
|
$ |
16,287 |
|
|
Operational Information: |
|
|
|
|
|
|
|
| Vent Patients(2) |
|
8,434 |
|
|
8,405 |
|
|
8,200 |
|
|
8,103 |
|
|
7,733 |
|
|
7,892 |
|
|
7,788 |
|
|
7,705 |
|
(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.
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