Full Press Release Details
QUIPT HOME MEDICAL REPORTS RECORD FOURTH QUARTER
AND FISCAL YEAR 2022 FINANCIAL RESULTS POSTING POSITIVE NET INCOME, REVENUE GROWTH OF 37% AND ADJUSTED EBITDA GROWTH OF 37%
POSTS STRONG ADJUSTED EBITDA MARGIN OF 20.9%
FOR FISCAL YEAR 2022
Cincinnati, Ohio - December 21, 2022
- Quipt Home Medical Corp. (the "Company") (NASDAQ:QIPT; TSXV:QIPT), a U.S. based home medical equipment provider,
focused on end-to-end respiratory care, today announced its fourth quarter and fiscal year 2022 financial results and operational highlights.
These results pertain to the three months and year ended September 30, 2022 and are reported in U.S. Dollars.
will host its Earnings Conference Call on Thursday, December 22, 2022 at 10:00 a.m. (ET). The dial-in number is 1 (800) 319-4610
or 1 (604) 638-5340. The live audio webcast can be found on the investor section of the Company's website through the following
link: www.quipthomemedical.com.
and Acquisition Highlights:
"The record results seen in the fourth quarter
and fiscal year 2022 are directly attributable to the expansion of our patient-centric ecosystem into favorable geographies across the
United States through our strategic growth initiatives. Despite an ambitious acquisition pace and inflationary operating environment, I
am very pleased with our ability to grow our revenue by 37% and maintain above 20% margins for fiscal year 2022 by continuing to implement
our steady operating processes and integration activities. As a healthcare organization with a concentration on respiratory treatment,
we feel well protected from potential economic challenges given the nature of our business and sector," said CEO and Chairman Greg
"Quipt is in the best position in its history,
with continued growth in revenue and Adjusted EBITDA, continued margin expansion, a strong balance sheet, and a provider of in-home clinical
respiratory care, now providing services to 200,000 active patients in 19 U.S. states. We anticipate continued growth in 2023 due to favorable
regulatory conditions, persistently high demand for respiratory products and services, robust demographic trends, and our continued operating
performance seen throughout the business. Moreover, our current acquisition pipeline and our robust balance sheet provides us with significant
opportunity focused on the expanding demand for at-home clinical respiratory care."
Chief Financial Officer Hardik Mehta added, "We
are extremely proud of our record financial and operating performance in fiscal year 2022, and our ability to sustain an Adjusted EBITDA
margin above 20% is a tremendous accomplishment given the current operating climate. We surpassed $160 million in Run-Rate Revenue (defined
below) in fiscal Q4 and 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. In real time, we see very positive trends
as it relates to our ongoing hiring initiatives with a focus on our sales force and significant easing of existing supply chain constraints.
Our strong financial position enables us to focus on strategic acquisition candidates that can expand our company into favorable geographic
areas in the United States, and we continue to remain confident in our continued growth and financial performance."
The Company also announces that on December 2,
2022, a wholly owned subsidiary of the Company, entered into five separate seven-year lease agreements expiring on September 30,
2029 with Mr. Gregory Crawford, an officer (CEO) and director of the Company, renewing leases originally entered into in 2015
(prior to Mr. Crawford being a non-arm's length party of the Company). The market rate leases are for an aggregate of 60,468
square feet of office, warehouse and retail space for an aggregate of $53,916 per month, with annual increases equal to the greater of
(i) the Consumer Price Index for All Urban Consumers (CPI-U), and (ii) 3%, and have been consistently disclosed in prior
disclosure documents (financials, MD&A, AIF's and management information circular's) of the Company on SEDAR.
ABOUT QUIPT HOME MEDICAL CORP.
The Company provides in-home monitoring and disease
management services including end-to-end respiratory solutions for patients in the United States healthcare market. It seeks to continue
to expand its offerings to include the management of several chronic disease states focusing on patients with heart or pulmonary disease,
sleep disorders, reduced mobility, and other chronic health conditions. The primary business objective of the Company is to create shareholder
value by offering a broader range of services to patients in need of in-home monitoring and chronic disease management. The Company's
organic growth strategy is to increase annual revenue per patient by offering multiple services to the same patient, consolidating the
patient's services, and making life easier for the patient.
Readers are cautioned that the financial information
regarding Hometown Medical, LLC is unaudited and derived as a result of the Company's due diligence, including a review of Hometown
Medical, LLC's bank statements and tax returns.
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.
Unless otherwise specified, all dollar amounts
in this press release are expressed in U.S. dollars.
Neither the TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy
Forward-Looking Statements
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:
post integration financial results (revenue and Adjusted EBITDA) of Hometown Medical, LLC; and the Company anticipating
continued growth in 2023; 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: Hometown Medical, LLC achieving results at least as good as historical performances; the financial information regarding
Hometown Medical, LLC being verified when included in the Company's consolidated financial statements prepared in accordance
with generally accepted accounting principles in Canada as set out in the CPA Canada Handbook - Accounting under
Part I, which incorporates International Financial Reporting Standards as issued by the International Accounting Standards
Board ; and the Company successfully identified, negotiating and completing additional acquisitions, including accretive
acquisitions. 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: credit; market (including equity, commodity, foreign exchange and
interest rate); liquidity; operational (including technology and infrastructure); reputational; insurance; strategic; regulatory;
legal; environmental; 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 U.S.; increased competition; changes in foreign
currency rates; increased funding costs and market volatility due to market illiquidity and competition for funding; the availability
of funds and resources to pursue operations; critical accounting estimates and changes to accounting standards, policies, and
methods used by the Company; the occurrence of natural and unnatural catastrophic events and claims resulting from such events;
and risks related to COVID-19 including various recommendations, orders and measures of governmental authorities to try to
limit the pandemic, including travel restrictions, border closures, non-essential business closures, quarantines, self-isolations,
shelters-in-place and social distancing, disruptions to markets, economic activity, financing, supply chains and sales channels,
and a deterioration of general economic conditions including a possible national or global recession; as well as those risk
factors discussed or referred to in the Company's disclosure documents filed with United States Securities and Exchange
Commission and available at www.sec.gov, and with the securities regulatory authorities in certain provinces of Canada and available
at www.sedar.com. Should any factor affect the Company in an unexpected manner, or should assumptions underlying the forward-looking
information prove incorrect, the actual results or events may differ materially from the results or events predicted. Any
such forward-looking information is expressly qualified in its entirety by this cautionary statement. Moreover, the Company
does not assume responsibility for the accuracy or completeness of such forward-looking information. The forward-looking information
included in this press release is made as of the date of this press release and the Company undertakes no obligation to publicly
update or revise any forward-looking information, other than as required by applicable law .