Viemed Healthcare Announces Second Quarter 2022 Financial Results

 

Viemed Healthcare, Inc. (the "Company" or "Viemed") (NASDAQ:VMD and TSX:VMD.TO), 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 and six months ended June 30, 2022.

 

  Operational highlights (all dollar amounts are USD):  

 
  • Net revenues attributable to the Company's core business for the quarter ended June 30, 2022 were $33.1 million, a new Company record, and an increase of $6.9 million or 26% over core net revenues reported for the comparable quarter ended June 30, 2021. Including COVID-19 related services, total net revenues for the current quarter were $33.3 million.

  •  
  • Through June 30, 2022, the Company has repurchased and cancelled 1,350,567 common shares under the share repurchase program at a cost of $7.0 million, representing an average buyback price of $5.18 per share.

  •  
  • As a result of the Qualified Independent Contractor's reconsideration findings, recalculated overpayment requests have been issued by the Medicare Administrative Contractors, reducing the disputed exposure to $1.1 million. The Company has filed its appeals with the Administrative Law Judge, and intends to continue to defend itself vigorously through the remaining appeals processes, as necessary.

  •  
  • The Company grew its ventilator patient count to 8,837, a 9% increase over the June 30, 2021 ventilator patient count. This represents the highest sequential quarterly growth since the second quarter of 2019.

  •  
  • Adjusted EBITDA for the quarter ended June 30, 2022 totaled $6.5 million and Adjusted EBITDA for the six months ended June 30, 2022 totaled $13.7 million. 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 $21.9 million at June 30, 2022 ($28.4 million at December 31, 2021) and an overall working capital balance of $24.0 million at June 30, 2022 ($29.5 million at December 31, 2021). Total long-term debt as of June 30, 2022 was $4.2 million ($4.3 million at December 31, 2021).

  •  
  • The Company expects to generate net revenues of approximately $34.5 million to $35.5 million during the third quarter of 2022.
  •  

"I am extremely proud of the robust growth across all lines of products and services, highlighting the synergies in our offerings," said Casey Hoyt, Viemed's CEO. "We're seeing the release of pent-up demand in the health care system, re-enforcing the critical need for cost-effective home-based treatment solutions that keep patients out of hospital facilities."

 

  Conference Call Details  

 

The Company will host a conference call to discuss second quarter results on Wednesday, August 3, 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://event.choruscall.com/mediaframe/webcast.html?webcastid=nCv1tRHb  

 

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 third 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  
June 30, 2022  
   At  
December 31, 2021  
  ASSETS      
  Current assets      
Cash and cash equivalents   $ 21,922    $ 28,408  
Accounts receivable, net of allowance for doubtful accounts of $9,383 and $7,031 at June 30, 2022 and December 31, 2021, respectively    14,287     12,823  
Inventory, net of inventory reserve of $0 and $1,418 at June 30, 2022 and December 31, 2021, respectively    2,853     2,457  
Income tax receivable    531     1,893  
Prepaid expenses and other assets    2,266     1,729  
  Total current assets    $ 41,859    $ 47,310  
  Long-term assets      
Property and equipment, net    66,685     62,846  
Equity investments    2,435     2,157  
Deferred tax asset    3,964     4,787  
Other long-term assets    961     862  
  Total long-term assets    $ 74,045    $ 70,652  
  TOTAL ASSETS    $ 115,904    $ 117,962  
     
  LIABILITIES      
  Current liabilities      
Trade payables   $ 3,702    $ 3,239  
Deferred revenue    4,402     3,753  
Accrued liabilities    8,860     8,875  
Current portion of lease liabilities    283     464  
Current portion of long-term debt    612     1,480  
  Total current liabilities    $ 17,859    $ 17,811  
  Long-term liabilities      
Accrued liabilities    385     757  
Long-term lease liabilities    207     268  
Long-term debt    4,226     4,306  
  Total long-term liabilities    $ 4,818    $ 5,331  
  TOTAL LIABILITIES    $ 22,677    $ 23,142  
     
  Commitments and Contingencies        
     
  SHAREHOLDERS' EQUITY      
Common stock - No par value: unlimited authorized; 38,333,089 and 39,640,388 issued and outstanding as of June 30, 2022 and December 31, 2021, respectively    14,348     14,014  
Additional paid-in capital    9,991     7,749  
Accumulated other comprehensive loss    (56 )    (278 )
Retained earnings    68,944     73,335  
  TOTAL SHAREHOLDERS' EQUITY    $ 93,227    $ 94,820  
  TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY    $ 115,904    $ 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 June 30,     Six Months Ended June 30,  
    2022       2021       2022       2021   
  Revenue   $ 33,310    $ 27,399    $ 65,565    $ 55,815  
        
Cost of revenue   12,920     9,774     25,432     20,448  
        
  Gross profit   $ 20,390    $ 17,625    $ 40,133    $ 35,367  
        
  Operating expenses         
Selling, general and administrative   17,536     12,884     33,312     27,393  
Research and development   672     583     1,304     922  
Stock-based compensation   1,271     1,236     2,576     2,543  
Depreciation   243     207     480     407  
Loss (gain) on disposal of property and equipment   (110 )    83     (124 )    159  
Other expense   (223 )    (32 )    (664 )    (53 )
  Income from operations   $ 1,001    $ 2,664    $ 3,249    $ 3,996  
        
  Non-operating income and expenses         
Income from equity method investments   446     231     769     451  
Interest expense, net of interest income   (59 )    (83 )    (123 )    (174 )
        
  Net income before taxes    1,388     2,812     3,895     4,273  
Provision for income taxes   421     1,246     1,166     1,023  
        
  Net income   $ 967    $ 1,566    $ 2,729    $ 3,250  
        
  Other comprehensive income (loss)         
Change in unrealized gain/loss on derivative instruments, net of tax   59     (6 )    222     100  
  Other comprehensive income (loss)   $ 59    $ (6 )   $ 222    $ 100  
        
  Comprehensive income   $ 1,026    $ 1,560    $ 2,951    $ 3,350  
        
  Net income per share         
Basic $ 0.02    $ 0.04    $ 0.07    $ 0.08  
Diluted $ 0.02    $ 0.04    $ 0.07    $ 0.08  
        
  Weighted average number of common shares outstanding:         
Basic   38,773,580     39,584,064     39,195,317     39,357,992  
Diluted   39,752,928     41,028,742     40,056,953     40,849,311  
 

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

 
                                                                                                                                                                                                                                                                                                                                                                                              
    Six Months Ended June 30,  
     2022       2021   
  Cash flows from operating activities      
Net income   $ 2,729    $ 3,250  
Adjustments for:     
Depreciation    7,136     5,325  
Provision for uncollectible accounts    6,300     3,402  
Change in inventory reserve    (1,418 )    
Share-based compensation    2,576     2,543  
Distributions of earnings received from equity method investments    612     123  
Income from equity method investments    (769 )    (451 )
Loss (gain) on disposal of property and equipment    (124 )    159  
Deferred income tax expense    745     1,005  
Net change in working capital     
Increase in accounts receivable    (7,764 )    (3,163 )
Increase in inventory    1,022     (248 )
Increase (decrease) in prepaid expenses and other assets    (634 )    311  
Increase (decrease) in trade payables    (243 )    362  
Increase in deferred revenue    649     333  
Decrease in accrued liabilities    (87 )    (3,800 )
Change in income tax payable/receivable    1,362     (340 )
  Net cash provided by operating activities    $ 12,092    $ 8,811  
     
  Cash flows from investing activities      
Purchase of property and equipment    (10,989 )    (5,047 )
Investment in equity investments    (121 )    
Proceeds from sale of property and equipment    615     289  
  Net cash used in investing activities    $ (10,495 )   $ (4,758 )
     
  Cash flows from financing activities      
Proceeds from exercise of options       112  
Principal payments on notes payable    (78 )    (73 )
Principal payments on term note    (872 )    (833 )
Shares redeemed to pay income tax    (119 )    (1,434 )
Shares repurchased under the share repurchase program    (7,001 )    
Repayments of lease liabilities    (13 )    (1,655 )
  Net cash used in financing activities    $ (8,083 )   $ (3,883 )
     
  Net (decrease) increase in cash and cash equivalents     (6,486 )    170  
  Cash and cash equivalents at beginning of year     28,408     30,981  
  Cash and cash equivalents at end of period    $ 21,922    $ 31,151  
     
  Supplemental disclosures of cash flow information      
Cash paid during the period for interest   $ 128    $ 198  
Cash paid (received) during the period for income taxes, net of refunds   $ (940 )   $ 358  
  Supplemental disclosures of non-cash transactions      
Net non-cash changes to finance leases   $    $ 12  
Net non-cash changes to operating leases   $ (8 )   $ 355  
 

  
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    June 30,
2022
 
  March 31,
2022
 
  December 31,
2021
 
  September 30,
2021
 
  June 30,
2021
 
  March 31,
2021
 
  December 31,
2020
 
  September 30,
2020
 
  Net Income   $ 967   $ 1,762   $ 4,087   $ 1,789   $ 1,566   $ 1,684   $ 5,071   $ 2,804  
Add back:         
Depreciation   3,740    3,397    3,120    2,867    2,716    2,609    2,835    2,425  
Interest expense   59    64    69    75    83    91    100    116  
Stock-based compensation   1,271    1,305    1,305    1,302    1,236    1,307    1,301    1,234  
Income tax expense (benefit)   421    745    968    1,386    1,246    (223 )   151    1,141  
  Adjusted EBITDA    $    6,458     $    7,273     $    9,549     $    7,419     $    6,847     $    5,468     $    9,458     $    7,720   
 

 

 
                                                                
    Three Months Ended
June 30, 2022
 
   Six Months Ended
June 30, 2022
 
  Net Income    $ 967    $ 2,729  
Add back:     
Depreciation    3,740     7,137  
Interest expense    59     123  
Stock-based compensation    1,271     2,576  
Income tax expense (benefit)    421     1,166  
  Adjusted EBITDA     $    6,458      $    13,731   
 

  
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    June 30,
  2022  
  March 31,
2022
 
  December 31,
2021
 
  September 30,
2021
 
  June 30,
2021
 
  March 31,
2021
 
  December 31,
2020
 
  September 30,
2020
 
  Financial Information:         
Revenue $ 33,310   $ 32,255   $ 31,962   $ 29,285   $ 27,399   $ 28,416   $ 31,202   $ 33,447  
Gross Profit $ 20,390   $ 19,743   $ 19,662   $ 18,381   $ 17,625   $ 17,742   $ 19,178   $ 19,453  
Gross Profit %   61 %   61 %   62 %   63 %   64 %   62 %   61 %   58 %
Net Income $ 967   $ 1,762   $ 4,087   $ 1,789   $ 1,566   $ 1,684   $ 5,071   $ 2,804  
Cash (As of) $ 21,922   $ 29,248   $ 28,408   $ 26,867   $ 31,151   $ 31,097   $ 30,981   $ 32,396  
Total Assets (As of) $ 115,904   $ 119,007   $ 117,962   $ 115,486   $ 111,014   $ 113,001   $ 112,560   $ 113,969  
Adjusted EBITDA ( 1) $ 6,458   $ 7,273   $ 9,549   $ 7,419   $ 6,847   $ 5,468   $ 9,458   $ 7,720  
  Operational Information:         
Vent Patients ( 2)   8,837    8,434    8,405    8,200    8,103    7,733    7,892    7,788  
 

  ( 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.

 

 

 

  Primary Logo 

 

News Provided by GlobeNewswire via QuoteMedia

VMD:CA,VMD
The Conversation (0)
illustration of brain and cell phone.

BlinkLab Completes First Patient Test for US Autism Diagnostic Study

Digital healthcare company BlinkLab (ASX:BB1) has tested the first patient in its US autism diagnostic study, which is geared at validating the company's Dx1 test as a diagnostic aid for clinicians.

BlinkLab states in its Wednesday (March 12) release that the study is the largest digital diagnostic trial for autism in the US, with its aim being to support the early detection of developmental conditions like autism.

The first patient test took place at PriMED Clinical Research in Dayton, Ohio. PriMED, a division of PriMED Physicians, is one of two clinical sites selected for the study’s initial phase, which is targeting 100 patients.

Keep reading...Show less
HeraMED Signs Strategic Collaboration Agreement with Garmin Health

HeraMED Signs Strategic Collaboration Agreement with Garmin Health

HeraMED Limited (ASX: HMD), a medical data and technology company leading the digital transformation of maternity care, is delighted to announce it has entered into a collaboration agreement with Garmin (NYSE: GRMN), a leading global provider of smartwatches and GPS-enabled products, aimed at enhancing remote pregnancy monitoring and expanding the range of health data available to expectant mothers and their healthcare providers.

Keep reading...Show less
Cardiologist wearing virtual reality glasses.

2 Biggest Medical Device ETFs in 2025

Exchange-traded funds (ETFs) are a popular investment strategy, and generally contain a variety of publicly traded companies under one stock symbol, often with a focus on a specific sector.

Depending on the ETF, investors may be able to track up-and-coming companies, get exposure to top firms or a mix of both. Aside from stocks, some ETFs also track commodities or bonds.

In the healthcare industry, medical device ETFs bring together companies that go to great lengths to develop pharmaceutical-based technology that can improve the lives of patients.

Keep reading...Show less
Cyclomedica

Cyclopharm Signs US Agreement with HCA Healthcare for Technegas®

Cyclopharm Limited (ASX: CYC) is pleased to announce the signing of a major contract with Hospital Corporation of America Healthcare (HCA), one of the largest single healthcare providers in the United States. This agreement marks a significant milestone for the company which will allow the deployment of Technegas® in up to 169 nuclear medicine departments across HCA’s extensive network.1

Keep reading...Show less
CONNEQT App Launches in USA as Pulse Deliveries Commence

CONNEQT App Launches in USA as Pulse Deliveries Commence

Cardiex Limited (CDX:AU) has announced CONNEQT App Launches in USA as Pulse Deliveries Commence

Download the PDF here.

Female doctor with clipboard talking to smiling female patient at hospital.

Revolutionizing Women's Health: Antifungal Innovation Brings New Investment Opportunities

The intersection of women's health and antifungal innovation represents a pivotal moment in healthcare, offering both transformative medical advancements and compelling investment opportunities.

The groundbreaking developments in antifungal treatments specifically targeting women's health issues present a substantial market potential, resulting in rising investor interest in this rapidly evolving sector.

Despite comprising half the global population, women face unique health challenges that have historically received insufficient attention and investment. Among these health challenges, vaginal candidiasis stands out as a persistent and widespread issue affecting millions of women worldwide.

Keep reading...Show less

Latest Press Releases

Related News

×