Viemed Healthcare Announces First Quarter 2021 Financial Results

Viemed Healthcare Announces First Quarter 2021 Financial Results




Viemed Healthcare Announces First Quarter 2021 Financial Results

LAFAYETTE, La., May 03, 2021 (GLOBE NEWSWIRE) — Viemed Healthcare, Inc. (the “Company” or “Viemed”) (TSX: VMD.TO and NASDAQ:VMD), a home medical equipment supplier that provides post-acute respiratory care services in the United States, announced today that it has reported its financial results for the three months ended March 31, 2021.

Operational highlights (all dollar amounts are USD):

  • Net revenues attributable to the Company’s core business for the quarter ended March 31, 2021 were $25.5 million, an increase of $2.7 million or 12% over net core revenues reported for the comparable quarter ended March 31, 2020. Total net revenues for the current quarter were $28.4 million which included approximately $2.9 million for contact tracing services and product sales related to the COVID-19 pandemic.
  • Net income for the quarter ended March 31, 2021 totaled approximately $1.7 million, compared to $4.2 million for the quarter ended March 31, 2020. The 2020 quarter included $1.0 million of revenue and $2.5 million of proceeds on used equipment sales related to COVID-19 response sales and services.
  • Adjusted EBITDA for the quarter ended March 31, 2021 totaled approximately $5.5 million, a 31% decrease as compared to the quarter ended March 31, 2020. 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 $31.1 million at March 31, 2021 ($31.0 million at December 31, 2020) and an overall working capital balance of $26.4 million ($24.2 million at December 31, 2020). Total long-term debt as of March 31, 2021 was $6.1 million ($6.6 million at December 31, 2020).
  • The Company expects to generate net revenues attributable to its core business of approximately $26.2 million to $27.2 million during the second quarter of 2021. 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 2021 revenues of approximately $0.5 million to $1.0 million related to the COVID-19 pandemic. Total revenues for the second quarter of 2021 are estimated to be approximately $26.7 million to $28.2 million.

“The first quarter will very likely be the quarter where things began to reopen from the COVID-19 pandemic and I am once again proud of our ability to keep servicing high need patients,” said Casey Hoyt, Viemed’s CEO. “Our new patient uploads during March were the highest single month since the pandemic began and gave us the ability to grow our core business even with the challenges faced during January and February. We are excited to continue utilizing our new programs along with our traditional sales methods as more healthcare systems open around the country.”

Conference Call Details

The Company will host a conference call to discuss third quarter results on Tuesday, May 4, 2021 at 11:00 a.m. EST.

The call-in numbers for participants are:

US Toll Free Dial In: 1-877-407-0784
International Toll Free Dial In: 1-201-689-8560
Meeting ID Number: 13719010
Live Event Call me™ Link (Available 15 minutes prior to start time for participant entry)
https://callme.viavid.com/?callme=true&passcode=13707099&h=true&info=company-email&r=true&B=6

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 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; decline of reimbursement rates; dependence on few payors; possible new drug discoveries; dependence on key suppliers; 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 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 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
March 31, 2021
  At
December 31, 2020
ASSETS        
Current assets        
Cash and cash equivalents   $ 31,097     $ 30,981  
Accounts receivable, net of allowance for doubtful accounts of $7,999
and $9,013 at March 31, 2021 and December 31, 2020, respectively
  13,282     12,373  
Inventory, net of inventory reserve of $1,349 and $1,353 at March 31, 2021
and December 31, 2020, respectively
  2,220     2,310  
Prepaid expenses and other assets   1,674     1,511  
Total current assets   $ 48,273     $ 47,175  
Long-term assets        
Property and equipment, net   53,996     55,056  
Equity investments   953     733  
Deferred tax asset   8,918     8,733  
Other long-term assets   861     863  
Total long-term assets   $ 64,728     $ 65,385  
TOTAL ASSETS   $ 113,001     $ 112,560  
         
LIABILITIES        
Current liabilities        
Trade payables   $ 2,534     $ 2,096  
Deferred revenue   3,422     3,409  
Income taxes payable   340     340  
Accrued liabilities   12,013     12,595  
Current portion of lease liabilities   1,688     2,741  
Current portion of long-term debt   1,858     1,836  
Total current liabilities   $ 21,855     $ 23,017  
Long-term liabilities        
Accrued liabilities   1,654     1,292  
Long-term lease liabilities   748     762  
Long-term debt   5,323     5,796  
Total long-term liabilities   $ 7,725     $ 7,850  
TOTAL LIABILITIES   $ 29,580     $ 30,867  
         
Commitments and Contingencies        
         
SHAREHOLDERS’ EQUITY        
Common stock – No par value: unlimited authorized; 39,577,288 and
39,185,182 issued and outstanding as of March 31, 2021 and December 31,
2020, respectively
  13,649     9,181  
Additional paid-in capital   4,224     7,320  
Accumulated other comprehensive loss   (345 )   (451 )
Retained earnings   65,893     65,643  
TOTAL SHAREHOLDERS’ EQUITY   $ 83,421     $ 81,693  
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY   $ 113,001     $ 112,560  


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,
  2021   2020
Revenue $ 28,416     $ 23,806  
       
Cost of revenue 10,674     8,253  
       
Gross profit $ 17,742     $ 15,553  
       
Operating expenses      
Selling, general and administrative 14,509     10,577  
Research and development 339     174  
Stock-based compensation 1,307     1,151  
Depreciation 200     205  
Loss (gain) on disposal of property and equipment 76     (1,169 )
Other income (21 )    
Income from operations $ 1,332     $ 4,615  
       
Non-operating expenses      
Loss (gain) from equity method investments (220 )   27  
Interest expense, net of interest income 91     158  
       
Net income before taxes 1,461     4,430  
Provision (benefit) for income taxes (223 )   187  
       
Net income $ 1,684     $ 4,243  
       
Other comprehensive income (loss)      
Change in unrealized gain/loss on derivative instruments, net of tax 106     (312 )
Other comprehensive income (loss) $ 106     $ (312 )
       
Comprehensive income $ 1,790     $ 3,931  
       
Net income per share      
Basic $ 0.04     $ 0.11  
Diluted $ 0.04     $ 0.11  
       
Weighted average number of common shares outstanding:      
Basic 39,129,407     38,030,854  
Diluted 40,663,368     39,677,983  


VIEMED HEALTHCARE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Expressed in thousands of U.S. Dollars)
(Unaudited)

    Three Months Ended March 31,
    2021   2020
Cash flows from operating activities        
Net income   $ 1,684     $ 4,243  
Adjustments for:        
Depreciation   2,609     2,130  
Change in allowance for doubtful accounts   1,819     2,846  
Change in inventory reserve   (4 )    
Share-based compensation   1,307     1,151  
(Gain) loss on equity method investments   (220 )   27  
Loss (gain) on disposal of property and equipment   76     (1,169 )
Deferred income taxes (benefit)   (222 )    
Net change in working capital        
Increase in accounts receivable   (2,728 )   (6,755 )
Decrease (increase) in inventory   94     (425 )
Increase in prepaid expenses and other current assets   (161 )   (2,952 )
Increase in trade payables   438     3,598  
Increase in deferred revenue   13     79  
Decrease in accrued liabilities   (77 )   (2,361 )
Increase in income tax payable       195  
Net cash provided by operating activities   $ 4,628     $ 607  
         
Cash flows from investing activities        
Purchase of property and equipment   (1,797 )   (4,220 )
Investment in equity investments       (32 )
Proceeds from sale of property and equipment   99     2,541  
Net cash used in investing activities   $ (1,698 )   $ (1,711 )
         
Cash flows from financing activities        
Proceeds from exercise of options   65     15  
Principal payments on notes payable   (37 )   (33 )
Principal payments on term note   (414 )   (395 )
Shares redeemed to pay income tax   (1,434 )    
Repayments of lease liabilities   (994 )   (3,429 )
Net cash used in financing activities   $ (2,814 )   $ (3,842 )
         
Net increase (decrease) in cash and cash equivalents   116     (4,946 )
Cash and cash equivalents at beginning of year   30,981     13,355  
Cash and cash equivalents at end of period   $ 31,097     $ 8,409  
         
Supplemental disclosures of cash flow information        
Cash paid during the period for interest   $ 117     $ 165  
Cash paid during the period for income taxes, net of refunds received   $     $ (8 )
Supplemental disclosures of non-cash transactions        
Property and equipment financed through finance leases   $ 12     $ 3,002  
Property and equipment financed through operating leases   $ 85     $ 31  


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 amortization, unrealized (gain) loss on warrant conversion liability 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,
2021
December 31,
2020
September 30,
2020
June 30,
2020
March 31,
2020
December 31,
2019
September 30,
2019
June 30,
2019
Net Income $ 1,684     $ 5,071   $ 2,804   $ 19,412     $ 4,243   $ 2,388   $ 2,853     $ 1,326  
Add back:                
Depreciation 2,609     2,835   2,425   2,190     2,130   2,003   1,659     1,444  
Interest expense 91     100   116   135     158   212   56     20  
Unrealized (gain) loss on
warrant conversion liability
                (800 )   268  
Stock-based compensation 1,307     1,301   1,234   1,196     1,151   908   1,064     1,034  
Income tax expense (benefit) (223 )   151   1,141   (6,646 )   187   58   51     24  
Adjusted EBITDA $ 5,468      $ 9,458    $ 7,720    $ 16,287      $ 7,869    $ 5,569    $ 4,883      $ 4,116   


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,
2021
December 31,
2020
September 30,
2020
June 30,
2020
March 31,
2020
December 31,
2019
September 30,
2019
June 30,
2019
Financial Information:              
Revenue $ 28,416   $ 31,202   $ 33,447   $ 42,854   $ 23,806   $ 21,448   $ 20,368   $ 20,325  
Gross Profit $ 17,742   $ 19,178   $ 19,453   $ 25,927   $ 15,553   $ 14,243   $ 14,050   $ 14,639  
Gross Profit % 62  % 61  % 58  % 61  % 65  % 66  % 69  % 72  %
Net Income $ 1,684   $ 5,071   $ 2,804   $ 19,412   $ 4,243   $ 2,388   $ 2,853   $ 1,326  
Cash (As of) $ 31,097   $ 30,981   $ 32,396   $ 29,707   $ 8,409   $ 13,355   $ 12,630   $ 7,691  
Total Assets (As of) $ 113,001   $ 112,560   $ 113,969   $ 112,178   $ 86,801   $ 82,596   $ 79,981   $ 71,014  
Adjusted EBITDA(1) $ 5,468   $ 9,458   $ 7,720   $ 16,287   $ 7,869   $ 5,569   $ 4,883   $ 4,116  
Operational Information:              
Vent Patients(2) 7,733   7,892   7,788   7,705   7,965   7,759   7,421   7,130  

(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.