A medical technology company based in Australia, Cleo Diagnostics (ASX:COV) is revolutionising women's healthcare with its disruptive cancer detection platform technology, through a simple blood test that can accurately detect ovarian cancer early – the leading cause of cancer-related deaths among women.
Approximately 50 percent of women will die within five years of an ovarian cancer diagnosis. The chances of survival beyond five years, however, increase with early detection. According to the American Cancer Society, only about 20 percent of ovarian cancers are diagnosed at an early stage, and more than 90 percent of women live beyond five years when the cancer is detected early.
With early diagnosis being key to a higher survival rate, ovarian cancer has become a target for biomarker research. And one particular biomarker holds promise.
Cleo’s technology is underpinned by the CXCL10 novel and patented biomarker, which was first identified as a small inflammatory molecule in ovarian cancer tissue sections. Subsequent research demonstrated that CXCL10 was overexpressed in ovarian cancers, but importantly not expressed in benign disease, and remains throughout the lifetime of the cancer. The biomarker effectively provides a robust indicator at all stages of cancer. Recognizing that early detection is a significantly unmet need in the clinical diagnostics market, Cleo Diagnostics is focused on bringing to market a simple blood test to accurately detect ovarian cancer early.
The addressable market for a technology like this is compelling, and with a management team that brings to the table decades of leadership experience in the medical technology space, Cleo is well-positioned to leverage this market opportunity.
Cleo chief executive and executive director Dr. Richard Allman has over 30 years of experience in commercially focused scientific research and innovation. Over the course of his career, Allman has overseen and expedited a product development pipeline covering no less than six major cancers, cardiovascular disease, type-2 diabetes and a commercially available COVID-19 test.
Chief scientific officer Dr. Andrew Stephens boasts an equally impressive resume. A career research scientist with two decades of experience in molecular and cellular biology, Stephens is named in over 60 academic publications and holds numerous patents in the cancer therapy and diagnostic space. Cleo’s blood test looks for a novel and patented biomarker in the blood called CXCL10, which was discovered by Stephens, the product of over ten years of scientific work at Monash Medical Centre's Hudson Institute of Medical Research.
There's also Professor Tom Jobling, Cleo's non-executive director and medical advisor. As the head of gynaecological oncology at Monash Health and visiting medical officer at the Peter MacCallum Cancer Centre, Jobling has been treating ovarian cancer for over thirty years. He was also the founding Chairman of the Ovarian Cancer Research Foundation (OCRF)
Non-executive director Lucinda Nolan, meanwhile, brings significant business and strategic expertise to the table. Most recently, she served as the CEO of the Ovarian Cancer Research Foundation.
These experienced professionals, together with the other members of Cleo’s management and board, have developed a staged execution strategy focused on de-risking the pathway to the international screening market — ensuring that, although Cleo is still in its advanced R&D stage, its prospects for commercialisation remain incredibly promising.
Developed over the course of a decade by Dr. Andrew Stephens, Cleo’s blood test is underpinned by the CXCL10 novel and patented protein biomarker known to be present in all stages of ovarian cancer. By combining CXCL10 with several other biomarkers in a custom algorithm, Cleo can not only be used in triage, but also for the purposes of screening and recurrence testing. The project is currently in the advanced R&D stage and has so far conducted two clinical studies, analysing more than 700 patient samples in the process.
Dr. Richard Allman has over 30 years of scientific research leadership and innovation with a clear focus on commercialisation. He has wide experience in research leadership, innovation management, and intellectual property strategy, covering oncology, diagnostics, and product development.
Previously, Allman was chief scientific officer at Genetic Technologies (ASX:GTG). Recent successes include the strategic design and management of a second-generation breast cancer risk assessment test from concept to commercial launch and a similar test for colorectal cancer. These tests have now been NATA-accredited and comprise the first commercially available polygenic risk tests in Australia.
More recently, Allman supervised the underlying R&D, translation, regulatory approval, patent filing and commercial launch of a COVID-19 disease severity test within a 12-month period. This strategy has been utilised to expedite a product development pipeline covering six major cancers, cardiovascular disease and type-2 diabetes which were commercially launched in March 2022.
Dr. Andrew Stephens is a career research scientist with 20 years of experience in molecular and cellular biology research. He has broad experience in academic and pre-clinical research and a strong focus on translation and the commercialisation of research findings. He established and leads an independent academic research group at the Hudson Institute of Medical Research, investigating mechanisms that contribute to the formation, progression and dissemination of high grade, serous epithelial ovarian cancers. Since 2010, his research has focused on biomarker identification and development in ovarian cancer and the development of therapeutic strategies to improve patient outcomes. He is also actively involved across the biotech sector, with appointments to the scientific advisory for Invion and AMTBio.
Stephens has more than 60 academic publications and numerous patents (pending and provisional) in the cancer therapeutic and diagnostic space.
Professor Thomas Jobling is director of gynaecologic oncology at Monash Medical Centre. He graduated from Monash University in 1980 and did his postgraduate sub-specialist training in gynaecologic oncology in London at the Royal Marsden and St Bartholomew's hospitals. Jobling has subsequently been elected as a member of the Society of Pelvic Surgeons and is also founder of the Ovarian Cancer Research Foundation (1999). He was the chairman of the Ovarian Cancer Research Foundation Board. His major interests are in radical surgery for ovarian cancer and the application of robotic surgery for gynaecological malignancy.
Jobling is an active member of a research team in biomarker detection and proteomics in ovarian cancer. He is involved as a collaborative investigator on a number of international clinical trials and is a member of the Australia and New Zealand Gynaecologic Oncology Group, the Australian Society of Gynaecologic Oncology, the Victorian Cooperative Oncology Group and the International Society of Gynaecological Cancer.
Lucinda Nolan is a non-executive director and was most recently the CEO of the Ovarian Cancer Research Foundation. She has a wealth of knowledge and experience across the public sector and not-for-profit environments. Prior to joining the Ovarian Cancer Research Foundation, she was selected as the first female CEO of the Country Fire Authority, one of the world’s largest volunteer-based emergency services organisations. She also spent 32 years with Victoria Police, reaching the rank of deputy commissioner. She was awarded the Australian Police Medal in 2009.
Nolan is also the chair of BankVic and a director on the boards of Alkira Box Hill and the Melbourne Archdiocese of Catholic Schools. She has a Master of Arts and a Bachelor of Arts (Honours) from Melbourne University and is an alum of the Advanced Management Programme at Harvard University.
Adrien Wing began his professional career practising in the audit and corporate advisory divisions of a chartered accounting firm. He has over 25 years of experience in the corporate sector with a large portion of this experience in ASX small caps, lead in IPO transactions and post listing reverse takeovers and acquisitions across a range of industry sectors and jurisdictions. He also has a strong pedigree in the life sciences industry being the founder of Rhythm Biosciences and bringing that entity to the ASX in 2017.
Wing currently serves as an officer/director on the following company boards: New Age Exploration (ASX: NAE), director and joint company secretary; Red Sky Energy (ASX:ROG), director and joint company secretary; Sparc Technologies (ASX:SPN), company secretary; and Osmond Resources (ASX:OSM), company secretary.Viemed Healthcare, Inc. (the " Company " or " Viemed ") (NASDAQ:VMD), a national leader in respiratory care and technology-enabled home medical equipment services, announced today that it will host its Quarterly Conference Call on Tuesday, May 7, 2024 at 11:00 a.m. ET.
Interested parties may participate in the call by dialing:
877-407-6176 (US Toll-Free)
+1 201-689-8451 (International)
Financial professionals are invited to call in to register in advance to ask questions. To pre-register as a qualified caller, please e-mail investorinfo@viemed.com by 12:00 p.m. ET Monday, May 6, 2024.
Live Audio Webcast: https://event.choruscall.com/mediaframe/webcast.html?webcastid=3FnR2caD
Following the live call, a replay will be available in the Investor Relations section of the Company's website, www.viemed.com.
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
News Provided by GlobeNewswire via QuoteMedia
Viemed Healthcare, Inc. (the "Company" or "Viemed") (NASDAQ:VMD), a national leader in respiratory care and technology-enabled home medical equipment services, announced the finalization of its strategic partnership with East Alabama Health ("EAH"), providing Viemed with the controlling interest of East Alabama HomeMed, LLC ("HomeMed"). HomeMed provides home medical equipment services to patients within the EAH network as well as those in the surrounding areas of Eastern Alabama.
"We are thrilled to join forces with the exceptional team at East Alabama Health to deliver best-in-class home medical services to their patients and expand HomeMed's business through the strategic partnership," said Viemed Chief Executive Officer Casey Hoyt. "This marks a significant milestone in our ongoing growth strategy, which includes hospital joint ventures and institutional partnerships. We view this transaction as a blueprint that can be replicated nationwide, enhancing care quality while simultaneously creating value for healthcare systems."
Laura Grill, President and CEO of EAH, emphasized that the collaboration with Viemed aligns seamlessly with East Alabama Health's organizational mission to provide the best possible care for every patient, every time, and to do so with empathy, kindness and caring. The EAH network encompasses East Alabama Medical Center in Opelika, AL, and EAMC-Lanier Hospital in Valley, AL, with a combined medical staff of 380 physicians.
The transaction closed on April 1, 2024, with Viemed acquiring a majority ownership interest and assuming managerial responsibilities of HomeMed. EAH will retain a minority, non-controlling interest in the entity. Viemed expects incremental annualized revenue from the acquired operations of approximately $4 million.
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", "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 ability to expand HomeMed's business, to replicate the transaction nationwide, and expected annualized revenue associated with the acquisition, 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; 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 state of the capital markets; the availability of funds and resources to pursue operations; inflation; 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; granting of permits and licenses in a highly regulated business; competition; 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; 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; 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, 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.
News Provided by GlobeNewswire via QuoteMedia
Viemed Healthcare, Inc. (the "Company" or "Viemed") (NASDAQ:VMD), a national leader in respiratory care and technology-enabled home medical equipment services, announced today that it has reported its financial results for the three months and year ended December 31, 2023.
Operational highlights (all dollar amounts are USD):
"We're thrilled to announce another exceptional year of financial performance at Viemed, marked by robust double-digit annual growth and sustained profitability," said Casey Hoyt, Viemed's CEO. "We are particularly pleased with the Company's capacity to generate free cash flow, enabling us to fuel continued strong growth. This underscores the effectiveness of our strategic initiatives and the dedication of our entire team. These accomplishments reaffirm our commitment to delivering enduring value to our stakeholders."
Conference Call Details
The Company will host a conference call to discuss fourth quarter and year end results on Thursday, March 7, 2024 at 11:00 a.m. ET.
Interested parties may participate in the call by dialing:
877-407-6176 (US Toll-Free)
+1-201-689-8451 (International)
Live Audio Webcast: https://event.choruscall.com/mediaframe/webcast.html?webcastid=Axpi0DDw
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", "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 first 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; 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 state of the capital markets; the availability of funds and resources to pursue operations; inflation; 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; granting of permits and licenses in a highly regulated business; competition; 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; 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; 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, 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.
Use of Non-GAAP Financial Measures
This press release refers to Adjusted EBITDA and Free Cash Flow, which are financial measures that are not prepared in accordance with generally accepted accounting principles in the United States ("GAAP"). Adjusted EBITDA and Free Cash Flow should be considered in addition to, not as a substitute for, or superior to, financial measures calculated in accordance with U.S. GAAP.
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. Adjusted EBITDA 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.
The Company uses Free Cash Flow in its operational and financial decision-making and believes free cash flow is useful to investors because similar measures are frequently used by securities analysts, investors, ratings agencies and other interested parties to evaluate the Company's competitors and to measure the ability of companies to service their debt. The Company's presentation of Free Cash Flow should not be construed as a measure of liquidity or discretionary cash available to the Company to fund its cash needs, including investing in the growth of its business and meeting its obligations.
| Viemed Healthcare, INC. CONSOLIDATED BALANCE SHEETS (Expressed in thousands of U.S. Dollars, except share amounts) | ||||||
| At December 31, 2023 | At December 31, 2022 | |||||
| ASSETS | ||||||
| Current assets | ||||||
| Cash and cash equivalents | $ | 12,839 | $ | 16,914 | ||
| Accounts receivable, net | 18,451 | 15,379 | ||||
| Inventory | 4,628 | 3,574 | ||||
| Income tax receivable | — | 26 | ||||
| Prepaid expenses and other assets | 2,449 | 3,849 | ||||
| Total current assets | $ | 38,367 | $ | 39,742 | ||
| Long-term assets | ||||||
| Property and equipment, net | 73,579 | 67,743 | ||||
| Finance lease right-of-use assets | 401 | — | ||||
| Operating lease right-of-use assets | 2,872 | 694 | ||||
| Equity investments | 1,680 | 2,155 | ||||
| Debt investment | 2,219 | 2,000 | ||||
| Deferred tax asset | 4,558 | 3,119 | ||||
| Identifiable intangibles, net | 567 | — | ||||
| Goodwill | 29,765 | — | ||||
| Other long-term assets | 887 | 1,590 | ||||
| Total long-term assets | 116,528 | 77,301 | ||||
| TOTAL ASSETS | $ | 154,895 | $ | 117,043 | ||
| LIABILITIES | ||||||
| Current liabilities | ||||||
| Trade payables | $ | 4,180 | $ | 2,650 | ||
| Deferred revenue | 6,207 | 4,624 | ||||
| Income taxes payable | 2,153 | — | ||||
| Accrued liabilities | 17,578 | 11,092 | ||||
| Finance lease liabilities, current portion | 256 | — | ||||
| Operating lease liabilities, current portion | 678 | 495 | ||||
| Current debt | 1,072 | — | ||||
| Total current liabilities | $ | 32,124 | $ | 18,861 | ||
| Long-term liabilities | ||||||
| Accrued liabilities | 558 | 889 | ||||
| Finance lease liabilities, less current portion | 132 | — | ||||
| Operating lease liabilities, less current portion | 2,184 | 199 | ||||
| Long-term debt | 6,002 | — | ||||
| Total long-term liabilities | $ | 8,876 | $ | 1,088 | ||
| TOTAL LIABILITIES | $ | 41,000 | $ | 19,949 | ||
| Commitments and Contingencies | — | — | ||||
| SHAREHOLDERS' EQUITY | ||||||
| Common stock - No par value: unlimited authorized; 38,506,161 and 38,049,739 issued and outstanding as of December 31, 2023 and December 31, 2022, respectively | 18,702 | 15,123 | ||||
| Additional paid-in capital | 15,698 | 12,125 | ||||
| Retained earnings | 79,495 | 69,846 | ||||
| TOTAL SHAREHOLDERS' EQUITY | $ | 113,895 | $ | 97,094 | ||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 154,895 | $ | 117,043 | ||
| Viemed Healthcare, INC. CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Expressed in thousands of U.S. Dollars, except outstanding shares and per share amounts) | |||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||
| Revenue | $ | 50,739 | $ | 37,508 | $ | 183,008 | $ | 138,832 | |||||||
| Cost of revenue | 18,628 | 14,612 | 70,225 | 54,152 | |||||||||||
| Gross profit | $ | 32,111 | $ | 22,896 | $ | 112,783 | $ | 84,680 | |||||||
| Operating expenses | |||||||||||||||
| Selling, general and administrative | 23,905 | 17,172 | 87,884 | 68,161 | |||||||||||
| Research and development | 651 | 722 | 2,782 | 2,696 | |||||||||||
| Stock-based compensation | 1,534 | 1,317 | 5,849 | 5,202 | |||||||||||
| Depreciation and amortization | 434 | 241 | 1,391 | 1,012 | |||||||||||
| Loss on disposal of property and equipment | 272 | 178 | 645 | 346 | |||||||||||
| Other income, net | 26 | (268 | ) | (98 | ) | (989 | ) | ||||||||
| Income from operations | $ | 5,289 | $ | 3,534 | $ | 14,330 | $ | 8,252 | |||||||
| Non-operating income and expenses | |||||||||||||||
| Income from equity method investments | 43 | 82 | 485 | 935 | |||||||||||
| Interest expense, net | (256 | ) | (32 | ) | (424 | ) | (197 | ) | |||||||
| Net income before taxes | 5,076 | 3,584 | 14,391 | 8,990 | |||||||||||
| Provision for income taxes | 1,599 | 1,146 | 4,148 | 2,768 | |||||||||||
| Net income | $ | 3,477 | $ | 2,438 | $ | 10,243 | $ | 6,222 | |||||||
| Other comprehensive income | |||||||||||||||
| Change in unrealized gain/loss on derivative instruments, net of tax | — | (56 | ) | — | 278 | ||||||||||
| Other comprehensive income | $ | — | $ | (56 | ) | $ | — | $ | 278 | ||||||
| Comprehensive income | $ | 3,477 | $ | 2,382 | $ | 10,243 | $ | 6,500 | |||||||
| Net income per share | |||||||||||||||
| Basic | $ | 0.09 | $ | 0.06 | $ | 0.27 | $ | 0.16 | |||||||
| Diluted | $ | 0.09 | $ | 0.06 | $ | 0.25 | $ | 0.16 | |||||||
| Weighted average number of common shares outstanding: | |||||||||||||||
| Basic | 38,492,731 | 38,015,795 | 38,354,071 | 38,655,403 | |||||||||||
| Diluted | 40,383,109 | 39,513,158 | 40,378,922 | 39,807,434 | |||||||||||
| Viemed Healthcare, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Expressed in thousands of U.S. Dollars) | ||||||||
| Year Ended December 31, | ||||||||
| 2023 | 2022 | |||||||
| Cash flows from operating activities | ||||||||
| Net income | $ | 10,243 | $ | 6,222 | ||||
| Adjustments for: | ||||||||
| Depreciation and amortization | 21,862 | 15,630 | ||||||
| Change in inventory reserve | — | (1,418 | ) | |||||
| Stock-based compensation expense | 5,849 | 5,202 | ||||||
| Distributions of earnings received from equity method investments | 980 | 1,079 | ||||||
| Income from equity method investments | (485 | ) | (935 | ) | ||||
| Income from debt investment | (219 | ) | — | |||||
| Loss on disposal of property and equipment | 645 | 346 | ||||||
| Deferred income tax (benefit) expense | (1,439 | ) | 1,746 | |||||
| Changes in working capital, net of effects from acquisitions: | ||||||||
| Accounts receivable, net | (1,058 | ) | (2,556 | ) | ||||
| Inventory | (472 | ) | 301 | |||||
| Prepaid expenses and other assets | 2,176 | (2,838 | ) | |||||
| Trade payables | (859 | ) | (318 | ) | ||||
| Deferred revenue | 851 | 871 | ||||||
| Accrued liabilities | 4,959 | 2,549 | ||||||
| Income tax payable/receivable | 2,179 | 1,867 | ||||||
| Net cash provided by operating activities | $ | 45,212 | $ | 27,748 | ||||
| Cash flows from investing activities | ||||||||
| Purchase of property and equipment | (26,093 | ) | (22,898 | ) | ||||
| Investment in equity investments | (20 | ) | (141 | ) | ||||
| Cash paid for acquisition of HMP, net of cash acquired | (28,588 | ) | — | |||||
| Investment in debt security | — | (2,000 | ) | |||||
| Proceeds from sale of property and equipment | 2,588 | 1,063 | ||||||
| Net cash used in investing activities | $ | (52,113 | ) | $ | (23,976 | ) | ||
| Cash flows from financing activities | ||||||||
| Proceeds from exercise of options | 1,303 | 283 | ||||||
| Proceeds from term notes | 5,000 | — | ||||||
| Principal payments on term notes | (3,721 | ) | (5,796 | ) | ||||
| Proceeds from revolving credit facilities | 8,000 | — | ||||||
| Payments on revolving credit facilities | (7,005 | ) | — | |||||
| Shares redeemed to pay income tax | (594 | ) | (143 | ) | ||||
| Shares repurchased under the share repurchase program | — | (9,568 | ) | |||||
| Repayments of lease liabilities | (157 | ) | (42 | ) | ||||
| Net cash provided by (used in) financing activities | $ | 2,826 | $ | (15,266 | ) | |||
| Net decrease in cash and cash equivalents | (4,075 | ) | (11,494 | ) | ||||
| Cash and cash equivalents at beginning of year | 16,914 | 28,408 | ||||||
| Cash and cash equivalents at end of period | $ | 12,839 | $ | 16,914 | ||||
| Supplemental disclosures of cash flow information | ||||||||
| Cash paid during the period for interest | $ | 851 | $ | 231 | ||||
| Cash paid (received) during the period for income taxes, net of refunds | $ | 3,566 | $ | (846 | ) | |||
| Supplemental disclosures of non-cash transactions | ||||||||
| Non-cash change in debt from the reclassification of debt issuance costs | $ | (594 | ) | $ | — | |||
| Net non-cash changes to operating lease | $ | (41 | ) | $ | 530 | |||
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. Adjusted EBITDA is defined as net income (loss) before net interest expense (income), income tax expense (benefit), depreciation and amortization, and stock-based compensation. Beginning with financial results reported for periods in fiscal year 2023, Adjusted EBITDA also excludes transaction costs and expenses related to acquisition and integration efforts associated with recently announced or completed acquisitions. This modification enables investors to compare period-over-period results on a more consistent basis without the effects of acquisitions. We have recast Adjusted EBITDA for prior periods when reported to conform to the modified presentation. The Company's presentation of this financial measure may not be comparable to similarly titled measures used by other companies.
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 | December 31, 2023 | September 30, 2023 | June 30, 2023 | March 31, 2023 | December 31, 2022 | September 30, 2022 | June 30, 2022 | March 31, 2022 | ||||||||||
| Net Income | $ | 3,477 | $ | 2,919 | $ | 2,330 | $ | 1,517 | $ | 2,438 | $ | 1,055 | $ | 967 | $ | 1,762 | ||
| Add back: | ||||||||||||||||||
| Depreciation & amortization | 5,918 | 5,975 | 5,207 | 4,762 | 4,373 | 4,120 | 3,740 | 3,397 | ||||||||||
| Interest expense (income) | 256 | 237 | (20 | ) | (49 | ) | 32 | 42 | 59 | 64 | ||||||||
| Stock-based compensation (a) | 1,534 | 1,453 | 1,471 | 1,391 | 1,317 | 1,309 | 1,271 | 1,305 | ||||||||||
| Transaction costs (b) | 61 | 177 | 94 | 206 | — | — | — | — | ||||||||||
| Income tax expense | 1,599 | 1,320 | 728 | 501 | 1,146 | 456 | 421 | 745 | ||||||||||
| Adjusted EBITDA | $ | 12,845 | $ | 12,081 | $ | 9,810 | $ | 8,328 | $ | 9,306 | $ | 6,982 | $ | 6,458 | $ | 7,273 | ||
(a) Represents non-cash, equity-based compensation expense associated with option and RSU awards.
(b) Represents transaction costs and expenses related to acquisition and integration efforts associated with recently announced or completed acquisitions.
| Year Ended December 31, 2023 | |||
| Net Income | $ | 10,243 | |
| Add back: | |||
| Depreciation & amortization | 21,862 | ||
| Interest expense (income) | 424 | ||
| Stock-based compensation (a) | 5,849 | ||
| Transaction costs (b) | 538 | ||
| Income tax expense | 4,148 | ||
| Adjusted EBITDA | $ | 43,064 | |
Free Cash Flow
This press release refers to "Free Cash Flow" which is a non-GAAP financial measure that does not have a standardized meaning prescribed by U.S. GAAP. Free Cash Flow is defined as net cash provided by operating activities less cash paid for purchases of property and equipment. The Company's presentation of this financial measure may not be comparable to similarly titled measures used by other companies.
The following unaudited table is a reconciliation of net cash provided by operating activities, the most directly comparable U.S. GAAP measure, to Free Cash Flow, on a historical basis for the periods indicated:
| (in thousands) | Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| Net cash provided by operating activities | $ | 13,284 | $ | 7,684 | $ | 45,212 | $ | 27,748 | ||||||||
| Purchase of property and equipment | (7,932 | ) | (5,572 | ) | (26,093 | ) | (22,898 | ) | ||||||||
| Free Cash Flow | $ | 5,352 | $ | 2,112 | $ | 19,119 | $ | 4,850 | ||||||||
| Viemed Healthcare, INC. Key Financial and Operational Information (Expressed in thousands of U.S. Dollars, except vent patients) (Unaudited) | ||||||||||||||||||||||||
| For the quarter ended | December 31, 2023 | September 30, 2023 | June 30, 2023 | March 31, 2023 | December 31, 2022 | September 30, 2022 | June 30, 2022 | March 31, 2022 | ||||||||||||||||
| Financial Information: | ||||||||||||||||||||||||
| Revenue | $ | 50,739 | $ | 49,402 | $ | 43,311 | $ | 39,556 | $ | 37,508 | $ | 35,759 | $ | 33,310 | $ | 32,255 | ||||||||
| Gross Profit | 32,111 | 30,562 | 26,106 | 24,004 | 22,896 | 21,651 | 20,390 | 19,743 | ||||||||||||||||
| Gross Profit % | 63 | % | 62 | % | 60 | % | 61 | % | 61 | % | 61 | % | 61 | % | 61 | % | ||||||||
| Net Income | 3,477 | 2,919 | 2,330 | 1,517 | 2,438 | 1,055 | 967 | 1,762 | ||||||||||||||||
| Cash and Cash Equivalents (As of) | 12,839 | 10,078 | 10,224 | 23,544 | 16,914 | 21,478 | 21,922 | 29,248 | ||||||||||||||||
| Total Assets (As of) | 154,895 | 149,400 | 149,117 | 124,634 | 117,043 | 119,419 | 115,904 | 119,007 | ||||||||||||||||
| Adjusted EBITDA (1) | 12,845 | 12,081 | 9,810 | 8,328 | 9,306 | 6,982 | 6,458 | 7,273 | ||||||||||||||||
| Operational Information: | ||||||||||||||||||||||||
| Vent Patients (2) | 10,327 | 10,244 | 10,005 | 9,337 | 9,306 | 9,127 | 8,837 | 8,434 | ||||||||||||||||
(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.
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IMPORTANT NOTE: Unless otherwise designated, the consolidated financial statements and this associated analysis are presented in USD ($), which is The Hydration Pharmaceuticals Company Limited's functional and presentation currency.
Results for Announcement to the Market for Year Ending 31 December 2023:
Highlights
Financial Results
Net Sales
The Company achieved net revenue of $10,041,184 during FY23, which represented a 10% or $0.9 million increase on the previous 12-month period (FY22: $9,099,968). The Company faced inventory shortages due to high demand combined with supplier delays from September through December 2023, which resulted in unfilled orders worth approximately $877,576 in net sales. The Company’s inventory situation has since recovered with best selling products back in stock and meeting demand from key retailers. After adjusting for inventory shortages, the YoY growth rate increases to 20%.
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