Viemed Healthcare Announces First Quarter 2022 Financial Results

Viemed Healthcare Announces First Quarter 2022 Financial Results




Viemed Healthcare Announces First Quarter 2022 Financial Results

LAFAYETTE, La., May 03, 2022 (GLOBE NEWSWIRE) — 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 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; 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)

    At
March 31, 2022
  At
December 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.