Quipt Reports Latest Financial Results, Posts Record $100 Million In Revenue with 41% YOY Increase, 10% YOY Organic Growth And More

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Quipt Home Medical Corp. QIPT QIPT announced its fourth quarter and fiscal year 2021 financial results and operational highlights and filing of its annual financial statements. These results pertain to three months and year ended September 30, 2021, and are reported in U.S. Dollars.

Quipt will host its Quarterly Earnings Conference Call on Tuesday, February 1, 2022, at 10:00 am ET. The dial-in number is 1 (800) 309-4610 or 1 (604) 638-5340.

Financial Highlights:

• Revenue for fiscal year 2021 was $102.4 million compared to $72.6 million for fiscal year 2020, representing a 41% increase in revenue year-over-year. Compared to fiscal year 2020, the Company experienced organic growth of 10%.
• Recurring revenue as of fiscal year 2021 continues to be strong and exceeds 77% of total revenue.
• Adjusted EBITDA (defined below) for fiscal year 2021 was $21.4 million (21.1% margin), compared to Adjusted EBITDA for fiscal year 2020 of $15.5 million, representing a 38.3% increase year-over-year. Adjusted EBITDA margin was impacted by one-time costs related to the Company’s NASDAQ CM listing. On May 27, 2021, the Company commenced trading on NASDAQ CM.
• Revenue for Q4 2021 was $29.1 million compared to $19.7 million for Q4 2020, representing a 48% increase in revenue year-over-year. Compared to Q3 2021, the Company experienced strong organic growth of 14%, excluding new acquisitions, in the fourth quarter.
• Adjusted EBITDA for Q4 2021 was $5.6 million (19.2% margin). Adjusted EBITDA margin was impacted by the expenses related to acquisitions completed in fiscal Q4 as well as lower pre-integration margins than the Company’s overall margin profile. The Company anticipates margins normalizing above 20% when full integration is completed. 
• Operating Expense for fiscal year 2021 was 51.55% compared to 53.18% for fiscal year 2020.
• Cash flow from continuing operations was $18.7 million for the year ended September 30, 2021, compared to $14.1 million for the year ended September 30, 2020.
• For the fiscal year 2021, bad debt expense was 8% compared to 9% for the fiscal year 2020, an improvement of 1%. This exemplifies our ability to scale and add more revenue through add-on acquisitions without compromising our billing capabilities.
• The Company reported $34.6 million of cash on hand as of September 30, 2021, compared to $29.2 million as of September 30, 2020.
• The Company has an undrawn credit facility of $20 million as of September 30, 2021.

Operational Highlights:

• Through the Company’s continued use of technology and centralized intake processes, respiratory resupply set-ups and/or deliveries increased to 158,072 for the year ended September 30, 2021, compared to 61,468 for the year ended September 30, 2020, an increase of 157.2%.
• The Company’s customer base increased 53.8% year over year to 140,996 unique patients served in fiscal year 2021 from 91,650 unique patients in fiscal year 2020.
• Compared to 253,113 unique set-ups/deliveries in fiscal year 2020, the Company completed 364,367 unique set-ups/deliveries in fiscal year 2021, an increase of 44%.
• The Company changed its name from Protech Home Medical Corp. to Quipt Home Medical Corp. in May 2021 and is focused on expansion into a national homecare provider throughout the United States, with a patient-centric model to meet the one-of-a-kind needs of every patient in its ecosystem.
• The Company has expanded its sales reach across fifteen U.S. states by the addition of experienced sales personnel. 
• Added two exceptionally experienced Healthcare executives with a specific focus on the Home Medical Equipment and Services Industry to serve as EVP of Operations and VP of Acquisitions and Integration, both coming from two of the largest home medical equipment companies in the industry, further complementing Quipt’s robust leadership team. 

• Completed six acquisitions during fiscal year 2021.

• The Company has reached 170,000 active patients, 19,000 referring physicians and 76 locations throughout 15 U.S. states.

Acquisition Related Updates Subsequent to Fiscal Year 2021:

• On October 1, 2021, the Company acquired a business with operations in Mississippi, reporting unaudited trailing 12-month annual revenues of approximately $2.7 million, anticipated $0.5 million in Adjusted EBITDA post-integration, and 4,000 active patients. In addition, on November 1, 2021, the Company acquired a business with operations in Central Illinois reporting unaudited trailing 12-month annual revenues of approximately $2.5 million, anticipated $0.6 million in Adjusted EBITDA post-integration, and 3,700 active patients. Integration of both acquisitions is well underway.
• On November 17, 2021, the Company 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. The acquisition provides the Company a synergistic opportunity to expand into a brand-new service line of biomedical repair services for respiratory equipment including preventative maintenance. The Company is now able to assist healthcare providers to improve the operational efficiency of their respiratory equipment program. 
• On December 31, 2021, the Company acquired At Home Health Equipment, Inc, a business with operations in Indiana, reporting unaudited trailing 12-month annual revenues of approximately $13 million ‎and $1.6 million in net income with an anticipated Adjusted EBITDA of $2.9 million (22% margin) post-integration. The acquisition adds over 15,000 active patients. Integration is underway.

Reiteration of Outlook for Calendar End 2022 (Fiscal Year Q1 2023):

Based on the current operations, market trends and completed and prospective acquisitions, the company is reiterating its outlook for its annual run-rate revenue by the end of calendar 2022 (Fiscal Q1 2023) to be $180-$190 million with $38-$43 million in Adjusted EBITDA.

“The record results experienced in the fourth quarter and fiscal year 2021 are a direct result of the significant expansion of our patient-centric ecosystem into favorable geographies, through organic and inorganic activities across the United States,” said CEO and Chairman Greg Crawford.”

Crawford added, “Our robust interconnected operating platform we have built, and dedicated integration team drives our ability to transform lower margin business units we acquire into higher-margin businesses that more closely align with our overall margin profile. It is consistent and steady integration efforts that will allow us to maintain over 20% margins for calendar 2022 amid an aggressive acquisition pace.“

Chief Financial Officer Hardik Mehta said, “We are extremely proud of breaching the $100 million mark in annual revenue for the fiscal year 2021, whilst maintaining an above 20% Adjusted EBITDA margin, a major milestone. Our continued progress in strategically building scale utilizing the infrastructure we have in place is producing consistent financial results, inclusive of over 77% of our revenue being classified as recurring.”

Mehta added, “Driven through higher volumes, stronger cash collections and continuing to support the business with lower operating costs, we have begun to see what more meaningful scale will look like for our financial model. Moreover, organic growth has been a top priority for the team, and the 10% organic growth achieved year-over-year signifies the ongoing execution company-wide.”

The financial statements of the Company for the year ended September 30, 2021, and 2020 and accompanying Management Discussion & Analysis (MD&A) are available at www.sedar.com.

With the filing of these documents, and the CEO and CFO certificates, all as required by National Instrument 51-102, the Company has now filed the documents which were late which resulted in the management cease trade order issued by the British Columbia Securities Commission on December 30, 2021, and such filing represents the Company’s application for revocation of the management cease trade order.

This post contains sponsored advertising content. This content is for informational purposes only and not intended to be investing advice.