Full Press Release Details
VIEMED HEALTHCARE ANNOUNCES FINANCIAL RESULTS FOR
Lafayette, Louisiana (August 9, 2019) Viemed Healthcare, Inc. (the "Company" or "Viemed") (TSX: VMD.TO and NASDAQ:VMD), a home medical equipment supplier that provides
post-acute respiratory care services in the United States, announced today that it has reported its financial results for the three and six months ended June 30, 2019.
Operational highlights (all dollar amounts are USD):
"I am extremely pleased with another record breaking quarter in revenue and patient growth," said Casey Hoyt, Viemed CEO. "We are making tremendous strides in our future
growth initiatives in the technology, marketing and new referral sources areas, including the VA system as well as the pediatric division. Additionally, we continue to roll out oxygen therapy around the country as well as a new compression therapy
product line. These investments, along with our completed building purchase and Nasdaq listing have us on an exciting path to more future success."
Conference Call Details
The Company will host a conference call to discuss Q2 2019 results on Friday, August 9, 2019 at 11:00 a.m. EST.
The call-in numbers for participants are:
US Toll Free: 1-800-239-9838
International Toll Free: 1-323-794-2551
Meeting ID Number: 3755260
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, through its indirect wholly-owned subsidiaries Sleep Management, L.L.C. and Home Sleep Delivered, L.L.C., is a home medical equipment supplier that provides
post-acute respiratory care services in the United States. Sleep Management, L.L.C. focuses on disease management and improving the quality of life for respiratory patients through clinical excellence, education, and technology. Its service
offerings are based on effective home treatment with respiratory care practitioners providing therapy and counseling to patients in their homes using cutting edge technology. Home Sleep Delivered focuses on providing in-home sleep testing for sleep
apnea sufferers. Visit our website at www.viemed.com.
For further information, please contact:
Chief Operating Officer
Viemed Healthcare, Inc.
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", or "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 guidance for the third and fourth quarters, 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 Company may be subject to significant capital requirements and operating risks; the
ability of the Company to implement business strategies and pursue business opportunities; volatility in the market price of shares in the capital of the Company; the Company's novel business model; the state of the capital markets; the
availability of funds and resources to pursue operations; decline of reimbursement rates; dependence on few payors; possible new drug discoveries; dependence on key suppliers; 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 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 foreign private issuer; and the occurrence of natural and unnatural catastrophic events
and claims resulting from such events; as well as those risk factors discussed or referred to in Viemed'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 Form 10 filed with the SEC on August 1, 2019, 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
VIEMED HEALTHCARE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Expressed in thousands of U.S. Dollars, except share amounts)
| At June 30, 2019 | At December 31, 2018 | |||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 7,691 | $ | 10,413 | ||||
| Accounts receivable, net of allowance for doubtful accounts of $6,874 and $4,266 at June 30, 2019 and December 31, 2018, respectively | 12,797 | 8,839 | ||||||
| Inventory, net | 3,712 | 2,887 | ||||||
| Prepaid expenses and other assets | 861 | 824 | ||||||
| Total current assets | $ | 25,061 | $ | 22,963 | ||||
| Long-term assets | ||||||||
| Property and equipment | 45,803 | 30,562 | ||||||
| Other assets | 22 | - | ||||||
| Total long-term assets | $ | 45,825 | $ | 30,562 | ||||
| TOTAL ASSETS | $ | 70,886 | $ | 53,525 | ||||
| LIABILITIES | ||||||||
| Current liabilities | ||||||||
| Trade payables | $ | 7,818 | $ | 5,884 | ||||
| Income taxes payable | - | 152 | ||||||
| Accrued liabilities | 6,950 | 7,551 | ||||||
| Current portion of lease liabilities | 8,410 | 3,031 | ||||||
| Current portion of long-term debt | 133 | - | ||||||
| Warrant conversion liability | 800 | 363 | ||||||
| Total current liabilities | $ | 24,111 | $ | 16,981 | ||||
| Long-term liabilities | ||||||||
| Accrued liabilities | 1,685 | 1,117 | ||||||
| Long-term lease liabilities | 1,098 | 394 | ||||||
| Long-term debt | 4,703 | - | ||||||
| Total long-term liabilities | $ | 7,486 | $ | 1,511 | ||||
| TOTAL LIABILITIES | $ | 31,597 | $ | 18,492 | ||||
| Commitments and Contingencies | - | - | ||||||
| SHAREHOLDERS' EQUITY | ||||||||
| Common stock - No par value: unlimited authorized; 37,697,535 and 37,500,815 issued and outstanding as of June 30, 2019 and December 31, 2018, respectively | 2,350 | 71 | ||||||
| Additional paid-in capital | 5,063 | 5,390 | ||||||
| Accumulated other comprehensive loss | (148 | ) | - | |||||
| Retained earnings | 32,024 | 29,572 | ||||||
| TOTAL SHAREHOLDERS' EQUITY | $ | 39,289 | $ | 35,033 | ||||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 70,886 | $ | 53,525 |
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)
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2019 | 2018 | 2019 | 2018 | |||||||||||||
| Revenue | $ | 22,547 | $ | 15,508 | $ | 42,990 | $ | 29,619 | ||||||||
| Cost of revenue | 5,686 | 4,185 | 10,727 | 7,744 | ||||||||||||
| Gross profit | $ | 16,861 | $ | 11,323 | $ | 32,263 | $ | 21,875 | ||||||||
| Operating Expenses | ||||||||||||||||
| Selling, general and administrative | 13,244 | 7,919 | 24,836 | 15,208 | ||||||||||||
| Research and development | 203 | 0 | 437 | 0 | ||||||||||||
| Stock-based compensation | 1,034 | 665 | 1,914 | 1,226 | ||||||||||||
| Depreciation | 138 | 124 | 267 | 330 | ||||||||||||
| Loss on disposal of property and equipment | 85 | 52 | 141 | 88 | ||||||||||||
| Other expense | 25 | 7 | 49 | 7 | ||||||||||||
| Income from operations | $ | 2,132 | $ | 2,556 | $ | 4,619 | $ | 5,016 | ||||||||
| Non-operating expenses | ||||||||||||||||
| Unrealized loss on warrant conversion liability | 268 | 123 | 437 | 195 | ||||||||||||
| Interest expense, net of interest income | 20 | 67 | 46 | 114 | ||||||||||||
| Net income before taxes | 1,844 | 2,366 | 4,136 | 4,707 | ||||||||||||
| Provision for income taxes | 24 | - | 162 | - | ||||||||||||
| Net income | $ | 1,820 | $ | 2,366 | $ | 3,974 | $ | 4,707 | ||||||||
| Other Comprehensive Income | ||||||||||||||||
| Change in unrealized loss on derivative instruments, net of tax | (148 | ) | - | (148 | ) | - | ||||||||||
| Other Comprehensive Loss | $ | (148 | ) | $ | - | $ | (148 | ) | $ | - | ||||||
| Comprehensive Income | $ | 1,672 | $ | 2,366 | $ | 3,826 | $ | 4,707 | ||||||||
| Net income per share | ||||||||||||||||
| Basic | $ | 0.05 | $ | 0.06 | $ | 0.10 | $ | 0.12 | ||||||||
| Diluted | $ | 0.05 | $ | 0.06 | $ | 0.10 | $ | 0.12 | ||||||||
| Weighted average number of common shares outstanding: | ||||||||||||||||
| Basic | 37,686,763 | 37,909,628 | 38,165,274 | 37,909,628 | ||||||||||||
| Diluted | 39,975,307 | 39,335,011 | 40,166,855 | 39,099,186 |
VIEMED HEALTHCARE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Expressed in thousands of U.S. Dollars)
| Six Months Ended June 30, | ||||||||
| 2019 | 2018 | |||||||
| Cash flows from operating activities | ||||||||
| Net income | $ | 3,974 | $ | 4,707 | ||||
| Adjustments for: | ||||||||
| Depreciation | 2,739 | 1,634 | ||||||
| Bad debt expense | 3,859 | 2,685 | ||||||
| Share-based compensation | 1,914 | 1,226 | ||||||
| Unrealized loss on warrant conversion liability | 437 | - | ||||||
| Loss on disposal of property and equipment | 141 | 88 | ||||||
| Net change in working capital | ||||||||
| Increase in accounts receivable | (7,818 | ) | (761 | ) | ||||
| Increase in inventory | (825 | ) | (302 | ) | ||||
| Increase (decrease) in trade payables | 1,934 | (120 | ) | |||||
| Decrease in accrued liabilities | (181 | ) | (83 | ) | ||||
| Decrease in income tax payable | (153 | ) | (69 | ) | ||||
| Increase in prepaid expenses and other current assets | (58 | ) | (2 | ) | ||||
| Net cash provided by operating activities | $ | 5,963 | $ | 9,003 | ||||
| Cash flows from investing activities | ||||||||
| Purchase of property and equipment | (7,700 | ) | (2,057 | ) | ||||
| Proceeds from sale of property and equipment | 213 | 277 | ||||||
| Net cash used in investing activities | $ | (7,487 | ) | $ | (1,780 | ) | ||
| Cash flows from financing activities | ||||||||
| Proceeds from exercise of options | 22 | - | ||||||
| Proceeds from exercise of warrants | 16 | - | ||||||
| Proceeds from commercial long-term note for building | 4,837 | - | ||||||
| Shares repurchased and canceled under the Normal Course Issuer Bid | (1,522 | ) | - | |||||
| Repayments of lease liabilities | (4,551 | ) | (3,770 | ) | ||||
| Net cash used in financing activities | $ | (1,198 | ) | $ | (3,770 | ) | ||
| Net (decrease) increase in cash and cash equivalents | (2,722 | ) | 3,453 | |||||
| Cash and cash equivalents at beginning of year | 10,413 | 5,098 | ||||||
| Cash and cash equivalents at end of year | $ | 7,691 | $ | 8,551 | ||||
| Supplemental disclosures of cash flow information | ||||||||
| Cash paid during the period for interest | $ | 52 | $ | 116 | ||||
| Cash paid during the period for income taxes, net of refunds received | $ | 317 | $ | 68 | ||||
| Supplemental disclosures of non-cash transactions | ||||||||
| Property and equipment financed through capital leases and long-term debt | $ | 9,438 | $ | 4,586 | ||||
| Property and equipment financed through leases upon adoption of FASB ASC 842 | $ | 1,919 | $ | - | ||||
| Change in unrealized (losses) on derivative instruments, net of tax | $ | (148 | ) | $ | - |
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 earnings before interest expense, income tax expense (benefit), depreciation and amortization,
unrealized (gain) loss on warrant conversion liability 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 GAAP measure, to Adjusted EBITDA, on a historical basis for the periods indicated:
VIEMED HEALTHCARE, INC.
Reconciliation of Net Income (Loss) to Non-GAAP Adjusted EBITDA
(Expressed in thousands of U.S. Dollars)
| For the quarter ended | June 30, 2019 | March 31, 2019 | December 31, 2018 | September 30, 2018 | June 30, 2018 | March 31, 2018 | December 31, 2017 | September 30, 2017 | ||||||||||||||||||||||||
| Net Income (Loss) | 1,820 | 2,154 | 3,046 | 2,424 | 2,366 | 2,341 | (26 | ) | 4,018 | |||||||||||||||||||||||
| Add back: | ||||||||||||||||||||||||||||||||
| Depreciation | 1,444 | 1,295 | 1,177 | 972 | 893 | 741 | 738 | 662 | ||||||||||||||||||||||||
| Interest expense | 20 | 26 | 30 | 37 | 67 | 47 | 49 | 67 | ||||||||||||||||||||||||
| Unrealized (gain) loss on warrant conversion liability | 268 | 169 | (210 | ) | 220 | 123 | 72 | 158 | - | |||||||||||||||||||||||
| Stock-based compensation | 1,034 | 880 | 804 | 672 | 665 | 561 | 828 | - | ||||||||||||||||||||||||
| Income tax expense (benefit) | 24 | 138 | 127 | 35 | - | - | 130 | (57 | ) | |||||||||||||||||||||||
| Adjusted EBITDA | $ | 4,610 | $ | 4,662 | $ | 4,974 | $ | 4,360 | $ | 4,114 | $ | 3,762 | $ | 1,877 | $ | 4,690 |
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 (loss), 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 comparative measures.
VIEMED HEALTHCARE, INC.
Key Financial and Operational Information
(Expressed in thousands of U.S. Dollars, except vent patients)
| For the quarter ended | June 30, 2019 | March 31, 2019 | December 31, 2018 | September 30, 2018 | June 30, 2018 | March 31, 2018 | December 31, 2017 | September 30, 2017 | ||||||||||||||||||||||||
| Financial Information: | ||||||||||||||||||||||||||||||||
| Revenue | $ | 22,547 | $ | 20,443 | $ | 18,489 | $ | 17,163 | $ | 15,508 | $ | 14,111 | $ | 13,548 | $ | 12,451 | ||||||||||||||||
| Gross Profit | $ | 16,861 | $ | 15,402 | $ | 13,645 | $ | 13,062 | $ | 11,323 | $ | 10,552 | $ | 10,186 | $ | 9,312 | ||||||||||||||||
| Gross Profit % | 75 | % | 75 | % | 74 | % | 76 | % | 73 | % | 75 | % | 75 | % | 75 | % | ||||||||||||||||
| Net Income (Loss) | $ | 1,844 | $ | 2,154 | $ | 3,046 | $ | 2,424 | $ | 2,366 | $ | 2,341 | $ | (26 | ) | $ | 4,018 | |||||||||||||||
| Adjusted EBITDA (1) | $ | 4,610 | $ | 4,662 | $ | 4,974 | $ | 4,360 | $ | 4,114 | $ | 3,762 | $ | 1,877(3 | ) | $ | 4,690 | |||||||||||||||
| Cash (As of) | $ | 7,691 | $ | 7,410 | $ | 10,413 | $ | 10,174 | $ | 8,551 | $ | 4,634 | $ | 5,098 | $ | 7,273 | ||||||||||||||||
| Total Assets (As of) | $ | 70,886 | $ | 58,583 | $ | 53,525 | $ | 49,147 | $ | 44,168 | $ | 40,566 | $ | 37,691 | $ | 32,740 | ||||||||||||||||
| Operational Information: | ||||||||||||||||||||||||||||||||
| Vent Patients (2) | 7,130 | 6,393 | 5,905 | 5,444 | 5,078 | 4,685 | 4,385 | 4,044 |