Quipt Home Medical Corp. (“
Quipt” or the
“
Company”) (NASDAQ:QIPT; TSXV:QIPT), a U.S. based
leader in the home medical equipment industry, focused on
end-to-end respiratory care, is pleased to announce that it has
recently acquired a privately held biomedical services company,
with operations in the Southeastern United States, reporting
unaudited trailing 12-month annual revenues of approximately $1.5
million, and $225,000 in net income.
Acquisition
Details
The acquisition provides Quipt a synergistic
opportunity to expand into a brand-new service line of biomedical
repair services for respiratory equipment including preventative
maintenance. Quipt will be able to assist healthcare providers to
improve the operational efficiency of their respiratory equipment
program. With the national footprint being formed, and robust
operating platform in place, Quipt will be well positioned to
provide equipment management services for a range of healthcare
providers.
The acquisition services a wide range of
respiratory products including ventilators, oxygen devices,
CPAP/bilevel devices and more. This includes devices from both the
acute and non-acute settings from within the home and hospital
environments. The Company’s focus on superior patient care and
safety is at the forefront with this acquisition and the Company
sees an opportunity to further relationships with new and existing
long term care facilities, hospital systems and other medical
facilities across the country.
Quipt will have the opportunity to acquire used
equipment and repair in-house, allowing Quipt the ability to
redeploy equipment on its patient population, thus providing the
opportunity to lower equipment acquisition costs. Furthermore,
Quipt will penetrate a new sales channel by engaging with customers
in this new business unit. Quipt will have the opportunity to
service medical equipment outside of its current product mix over
time, providing additional growth opportunities. The acquisition
serves as an additional organic growth driver as Quipt builds out
this new service line.
Under the terms of the definitive purchase
agreement, Quipt acquired the biomedical services operation for
approximately $700,000 in cash, and the acquisition is expected to
increase Quipt’s annual revenues by approximately $1.5 million and
net income by approximately of $225,000.
Management
Commentary
“We are delighted to enter this segment of the
market, a logical fit for us given the growing number of patients,
and referral partners in our network, as well as the burgeoning
amount of equipment deliveries we complete every year. Our robust
operating engine allows us to synergistically add a new service
offering to the platform, which can be rolled out efficiently
throughout the entire organization. The opportunity to include
annual preventative maintenance and repair services for respiratory
equipment is timely and we feel we can penetrate new and existing
long term care facilities, hospital systems and other medical
facilities with this additional service,” said Greg Crawford,
Chairman and CEO of Quipt. “We feel this segment can offer
additional organic and inorganic growth opportunities and will be
very nimble as we work to grow this segment of the business. The
end of 2021 is providing Quipt significant momentum across the
board and our current pipeline consists of companies reflective of
all three tiers of our previously disclosed acquisition strategy
and we are very optimistic regarding our opportunity to continue
closing targets that fit the strategic vision we have.”
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. It
seeks to continue to expand its offerings to include the management
of several chronic disease states focusing on patients with heart
or pulmonary disease, sleep disorders, reduced mobility and other
chronic health conditions. The primary business objective of the
Company is to create shareholder value by offering a broader range
of services to patients in need of in-home monitoring and chronic
disease management. The Company’s organic growth strategy is to
increase annual revenue per patient by offering multiple services
to the same patient, consolidating the patient’s services, and
making life easier for the patient.
Reader Advisories
Readers are cautioned that the financial
information regarding the target disclosed herein is unaudited and
derived as a result of the Company’s due diligence, including a
review of the target’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 U.S. dollars.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
Forward-Looking
Statements
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: post
integration financial results of the acquisition target; the
Company’s acquisition approach; the impact and results of the
acquisition on the Company; the Company’s view on future growth,
including organic growth; the Company entering new lines of
business; and the Company being very optimistic regarding its
opportunity to continue closing targets that fit its strategic
vision; are intended to identify forward-looking information. All
statements other than statements of historical fact may be
forward-looking information. 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, including: the
acquisition targets achieving results at least as good as
historical performances; and the Company successfully identified,
negotiating and completing additional acquisitions, including
accretive acquisitions. Many factors could cause the actual
results, performance or achievements that may be expressed or
implied by such forward-looking information to vary from those
described herein should one or more of these risks or uncertainties
materialize. Examples of such risk factors include, without
limitation: credit; market (including equity, commodity, foreign
exchange and interest rate); liquidity; operational (including
technology and infrastructure); reputational; insurance; strategic;
regulatory; legal; environmental; capital adequacy; the general
business and economic conditions in the regions in which the
Company operates; the ability of the Company to execute on key
priorities, including the successful completion of acquisitions,
business retention, and strategic plans and to attract, develop and
retain key executives; difficulty integrating newly acquired
businesses; the ability to implement business strategies and pursue
business opportunities; 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 to the Company or its affiliates; the impact of new and
changes to, or application of, current laws and regulations;
decline of reimbursement rates; dependence on few payors; possible
new drug discoveries; a novel business model; dependence on key
suppliers; granting of permits and licenses in a highly regulated
business; the overall difficult litigation environment, including
in the U.S.; increased competition; changes in foreign currency
rates; increased funding costs and market volatility due to market
illiquidity and competition for funding; the availability of funds
and resources to pursue operations; critical accounting estimates
and changes to accounting standards, policies, and methods used by
the Company; the occurrence of natural and unnatural catastrophic
events and claims resulting from such events; and risks related to
COVID-19 including various recommendations, orders and measures of
governmental authorities to try to limit the pandemic, including
travel restrictions, border closures, non-essential business
closures, quarantines, self-isolations, shelters-in-place and
social distancing, disruptions to markets, economic activity,
financing, supply chains and sales channels, and a deterioration of
general economic conditions including a possible national or global
recession; as well as those risk factors discussed or referred to
in the Company’s disclosure documents filed with United States
Securities and Exchange Commission and available at www.sec.gov,
and with the securities regulatory authorities in certain provinces
of Canada and available at www.sedar.com. Should any factor affect
the Company in an unexpected manner, or should assumptions
underlying the forward-looking information prove incorrect, the
actual results or events may differ materially from the results or
events predicted. Any such forward-looking information is expressly
qualified in its entirety by this cautionary statement. Moreover,
the Company does not assume responsibility for the accuracy or
completeness of such forward-looking information. The
forward-looking information included in this press release is made
as of the date of this press release and the Company undertakes no
obligation to publicly update or revise any forward-looking
information, other than as required by applicable law.
For further information please visit our website
at www.Quipthomemedical.com, or contact:
Cole StevensVP of Corporate Development
859-300-6455cole.stevens@myquipt.com
Gregory CrawfordChief Executive OfficerQuipt Home Medical
Corp.859-300-6455investorinfo@myquipt.com
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