Quipt will host its Earnings Conference Call on
Financial Highlights:
- Revenue for fiscal year 2023 was
$221.7 million compared to$139.9 million for fiscal year 2022, representing a 59% increase. - Net income (loss) for fiscal year 2023 was
($2.8) million , or ($0.07 ) per diluted share, compared to$4.8 million , or$0.14 per diluted share for fiscal year 2022. - Adjusted EBITDA (defined in Non-IFRS Measures below) for fiscal year 2023 was
$50.6 million (22.8% of revenue), compared to fiscal year 2022 of$29.2 million (20.9% of revenue), representing a 73% increase. Adjusted EBITDA as a percent of revenue accelerated due to increased scale resulting in better operating leverage across the business. - Revenue for Q4 2023 was
$62.5 million compared to$40.1 million for Q4 2022, representing a 56% increase. - Recurring Revenue (defined in Non-IFRS Measures below) for Q4 2023 was very strong and exceeded 83% of total revenue, driven by growth in the Company’s resupply platform.
- Net income (loss) for Q4 2023 was
($1.3) million , or ($0.03 ) per diluted share, as compared to$1.8 million , or$0.05 per diluted share for Q4 2022. - Adjusted EBITDA for Q4 2023 was
$14.7 million (23.5% of revenue) compared to$8.4 million (21.0% of revenue) for Q4 2022, representing a 75% increase. - Cash flow from operations was
$40.5 million for the year endedSeptember 30, 2023 , compared to$26.3 million for the year endedSeptember 30, 2022 . - For fiscal year 2023, bad debt expense improved to 4.5% compared to 8.7% for fiscal year 2022. This exemplifies the Company’s ability to scale and add more revenue through add-on acquisitions without compromising billing and collection capabilities.
- The Company reported
$17.2 million of cash on hand and total credit availability of$41.0 million as ofSeptember 30, 2023 with$20.0 million available towards its revolving credit facility and$21.0 million available pursuant to a delayed draw term loan facility. - The Company maintains a conservative balance sheet with net debt to Adjusted EBITDA leverage of 1.4x.
Operational and Recent Acquisition Highlights:
- The Company’s customer base increased 65% year over year to 285,819 unique patients served in fiscal year 2023 from 173,203 unique patients in fiscal year 2022.
- Compared to 516,328 unique set-ups/deliveries in fiscal year 2022, the Company completed 754,414 unique set-ups/deliveries in fiscal year 2023, an increase of 46%. This includes 395,618 respiratory resupply set-ups/deliveries for the year ended
September 30, 2023 , compared to 231,495 for the year endedSeptember 30, 2022 , an increase of 71%, which the Company credits to its continued use of technology and centralized intake processes. - The Company’s resupply program is a major proponent of the Company’s 83% recurring revenue base as the Company has significantly scaled, now representing 47% of the recurring revenue mix, driving higher margin revenue. The program now consists of approximately 169,000 patients as of
September 30, 2023 , compared to approximately 100,000 patients as ofSeptember 30, 2022 . - The Company continues to experience very strong demand for respiratory equipment, including CPAPs, BiPAPs, oxygen concentrators, ventilators, as well as the CPAP resupply and other supplies business.
- The Company has continued expanding its sales reach, driving organic growth which now spans across 26 U.S. states with the addition of experienced sales personnel.
- The Company has reached 287,500 active patients, 34,400 referring physicians and 125 locations.
- In
September 2023 , the Company acquired a multi-state home medical equipment operator inMississippi ,Texas , andLouisiana . The acquisition added approximately$9 million in revenue with anticipated post-integration Adjusted EBITDA as a percent of revenue similar to Company’s existing percent. Integration has gone very well, and the Company is working on organic expansionary opportunities within those existing markets.
Management Commentary:
“We exited fiscal 2023 with strong momentum across the organization, and substantial operating scale achieved, posting record results with revenue increasing by
He added “with 287,500 active patients across 26 states in
“We take great pride in our record-breaking financial and operational performance in the 2023 fiscal year and are incredibly proud of our ability to post our Adjusted EBITDA at 22.8% of revenue” said
The Company's full financial statements and management's discussion and analysis for the three months and year ended
ABOUT
The Company provides in-home monitoring and disease management services including end-to-end respiratory solutions for patients in
Reader Advisories
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.
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", "outlook", and similar expressions as they relate to the Company, including: the Company anticipating solid and robust organic growth, with the goal of achieving 8-10% revenue growth on an annualized basis; 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 Company successfully identified, negotiating and completing additional acquisitions; and operating and other financial metrics maintaining their current trajectories. 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: risks related to credit, market (including equity, commodity, foreign exchange and interest rate), liquidity, operational (including technology and infrastructure), reputational, insurance, strategic, regulatory, legal, environmental, and 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
Pre-ReleasedFinancial Metrics
This press release contains certain pre-released fourth quarter and full year financial metrics. The fourth quarter and full year financial metrics contained in this press release are preliminary and represent the most current information available to the Company's management, as financial closing procedures for the three months and year ended
Non-IFRS Measures
This press release refers to “Recurring Revenue”, “Run-Rate Revenue” and “Adjusted EBITDA”, which are non-IFRS financial measures that do not have standardized meanings prescribed by IFRS. The Company’s presentation of these financial measures may not be comparable to similarly titled measures used by other companies. These financial measures are intended to provide additional information to investors concerning the Company’s performance.
Recurring Revenue for Quipt for the three months ended
Run-Rate Revenue is defined as revenue for Q4 2023 of
Adjusted EBITDA is defined as net income (loss), and adding back depreciation and amortization, interest expense, net, provision (benefit) for income taxes, stock-based compensation, acquisition-related costs, loss (gain) on foreign currency transactions, loss on extinguishment of debt, loss on settlement of shares to be issued, other income from government grant, change in fair value of debentures,and share of income (loss) of equity method investment. Adjusted EBITDA is a non-IFRS measures that the Company uses as an indicator of financial health and exclude several items which may be useful in the consideration of the financial condition of the Company. The following table shows our non-IFRS measure, Adjusted EBITDA, reconciled to our net income (loss) for the following indicated periods (in $millions):
For further information please visit our website at www.Quipthomemedical.com, or contact:
For the three | For the three | For the | For the | ||||||||||||||
months ended | months ended | year ended | year ended | ||||||||||||||
September | September | September | September | ||||||||||||||
30, 2023 | 30, 2022 | 30, 2023 | 30, 2022 | ||||||||||||||
Net income (loss) | $ | (1.3 | ) | $ | 1.8 | $ | (2.8 | ) | $ | 4.8 | |||||||
Add back: | |||||||||||||||||
Depreciation and amortization | 12.1 | 7.2 | 40.2 | 23.0 | |||||||||||||
Interest expense, net | 1.9 | 0.6 | 6.6 | 2.1 | |||||||||||||
Provision (benefit) for income taxes | 0.1 | (2.4 | ) | 0.1 | (1.9 | ) | |||||||||||
Stock-based compensation | 1.4 | 0.9 | 5.3 | 5.5 | |||||||||||||
Acquisition-related costs | 0.1 | 0.1 | 1.2 | 0.8 | |||||||||||||
Other income from government grant | — | (0.6 | ) | — | (4.9 | ) | |||||||||||
Loss on extinguishment of debt | — | 0.3 | — | 0.3 | |||||||||||||
Loss on settlement of shares to be issued | — | 0.4 | — | 0.4 | |||||||||||||
Gain (loss) on foreign currency transactions | 0.3 | — | (0.1 | ) | 0.2 | ||||||||||||
Change in fair value of debentures and warrants | — | 0.1 | — | (1.1 | ) | ||||||||||||
Share of loss in equity method investment | 0.1 | — | 0.1 | — | |||||||||||||
Adjusted EBITDA | $ | 14.7 | $ | 8.4 | $ | 50.6 | $ | 29.2 |
VP of Corporate Development
859-300-6455
cole.stevens@myquipt.com
Chief Executive Officer
859-300-6455
investorinfo@myquipt.com
Condensed Statements of Income (Loss) (Unaudited, in $000s)
For the three | For the three | For the | For the | ||||||||||||||
months ended | months ended | year ended | year ended | ||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||
Revenues | $ | 62,523 | $ | 40,092 | $ | 221,742 | $ | 139,862 | |||||||||
Inventory sold | 16,283 | 9,294 | 57,897 | 33,213 | |||||||||||||
Operating expenses | 28,691 | 18,606 | 103,224 | 65,203 | |||||||||||||
Bad debt expense | 2,875 | 3,242 | 10,065 | 12,225 | |||||||||||||
Depreciation | 10,639 | 6,294 | 34,966 | 20,453 | |||||||||||||
Amortization of intangible assets | 1,453 | 911 | 5,197 | 2,587 | |||||||||||||
Stock-based compensation | 1,369 | 897 | 5,280 | 5,493 | |||||||||||||
Acquisition-related costs | 137 | 574 | 1,269 | 797 | |||||||||||||
Loss (gain) on sale of property and equipment | 12 | 55 | (75 | ) | 45 | ||||||||||||
Other income from government grant | — | (631 | ) | — | (4,885 | ) | |||||||||||
Interest expense, net | 1,904 | 572 | 6,607 | 2,079 | |||||||||||||
Loss on extinguishment of debt | — | 281 | 30 | 281 | |||||||||||||
(Gain) loss on foreign currency transactions | 322 | 62 | (108 | ) | 144 | ||||||||||||
Share of loss in equity method investment | 89 | — | 89 | — | |||||||||||||
Change in fair value of debentures | — | 85 | — | (1,150 | ) | ||||||||||||
Loss on settlement of shares to be issued | — | 442 | — | 442 | |||||||||||||
Provision (benefit) for income taxes | 75 | (2,362 | ) | 85 | (1,904 | ) | |||||||||||
Net income (loss) | $ | (1,326 | ) | $ | 1,770 | $ | (2,784 | ) | $ | 4,839 | |||||||
Income (loss) per share | |||||||||||||||||
Basic | $ | (0.03 | ) | $ | 0.05 | $ | (0.07 | ) | $ | 0.14 | |||||||
Diluted | $ | (0.03 | ) | $ | 0.05 | $ | (0.07 | ) | $ | 0.13 |
Condensed Statements of Financial Position (Unaudited, in $000s)
As of | As of | |||||||
Cash | $ | 17,209 | $ | 8,516 | ||||
Accounts receivable, inventory and prepaid assets | 48,224 | 33,020 | ||||||
Property and equipment | 53,405 | 33,497 | ||||||
Other assets | 128,570 | 57,181 | ||||||
Total assets | $ | 247,408 | $ | 132,214 | ||||
Accounts payable and other current liabilities | $ | 60,574 | $ | 41,740 | ||||
Long-term liabilities | 75,719 | 10,927 | ||||||
Total liabilities | 136,293 | 52,667 | ||||||
Shareholders’ equity | 111,115 | 79,547 | ||||||
Total liabilities and shareholders’ equity | $ | 247,408 | $ | 132,214 |
Condensed Statements of Cash Flows (Unaudited, in $000s)
For the years ended | |||||||
2023 | 2022 | ||||||
Operating activities | |||||||
Net income (loss) | $ | (2,784 | ) | $ | 4,839 | ||
Adjustments to reconcile net income (loss) to net cash provided by operating activities | 45,269 | 20,747 | |||||
Change in working capital, net of acquisitions: | (1,949 | ) | 758 | ||||
Net cash flow provided by operating activities | 40,536 | 26,344 | |||||
Investing activities | |||||||
Purchase of property and equipment, net of proceeds | (6,787 | ) | (8,968 | ) | |||
Cash paid for acquisitions, net of cash acquired | (76,038 | ) | (33,525 | ) | |||
Net cash flow used in investing activities | (82,825 | ) | (42,493 | ) | |||
Financing activities | |||||||
Repayments of loans, leases, purchase price payable, and other | (39,557 | ) | (19,539 | ) | |||
Proceeds from credit facility, net of issuance costs | 63,419 | 10,221 | |||||
Proceeds (payments) from shareholders' equity activity | 27,012 | (533 | ) | ||||
Net cash flow (used in) provided by financing activities | 50,874 | (9,851 | ) | ||||
Net increase (decrease) in cash | 8,585 | (26,000 | ) | ||||
Effect of exchange rate changes on cash held in foreign currencies | 108 | (96 | ) | ||||
Cash, beginning of year | 8,516 | 34,612 | |||||
Cash, end of year | $ | 17,209 | $ | 8,516 |
Source:
2023 GlobeNewswire, Inc., source