PROTECH HOME MEDICAL REPORTS SOLID Q1 2020 FINANCIAL RESULTS POSTS REVENUE GROWTH OF 11% AND ADJUSTED EBITDA GROWTH OF 18%
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Cincinnati, Ohio – February 26, 2020 – Protech Home Medical Corp. (the “Company”) (TSXV: PTQ), a healthcare services company with operations in the U.S., today announced its first quarter fiscal 2020 financial results and operational highlights. These results pertain to the three month period ended December 31, 2019.
Financial highlights from the first fiscal quarter ended December 31, 2019:
█ Revenue for Q1 2020 was $22.8 million compared to $20.5 million for Q1 2019, representing an 11% increase in revenue year-over-year.
█ Gross margin in Q1 2020 was 74%, up from 70% in Q1 2019 as a result of ongoing margin enhancement efforts including patient intake and distribution optimization.
█ Adjusted EBITDA for the Q1 2020 was $4.4 million (19.4% margin), compared to Adjusted EBITDA for Q1 2019 of $3.7 million (18.2% margin), representing an 18% increase year-over-year.
█ Cash flow from continuing operations was $4.4 million in Q1 2020 compared to $2.5 million in Q1 2019, an increase of 80%.
█ The Company reported $8.4 million of cash on hand as at December 31, 2019 compared to $6.2 million at December 31, 2018.
Operational highlights from the three months ended September 30, 2019:
█ Through the Company’s continued use of technology and centralized intake processes, respiratory resupply set-ups and/or deliveries increased to 13,439 for the three months ended December 31, 2019, compared to 11,279 for the same period ended December 31, 2018, an increase of 19%.
█ Compared to Q1 2019, resupply revenue increased by 24%, set-up/deliveries increased by 19%
█ The Company’s customer base increased 25% year over year from 31,199 unique patients served in Q1 2019 to 39,070 unique patients in Q1 2020.
“I am very pleased with our first quarter fiscal 2020 financial results,” said CEO and Chairman Greg Crawford. “For eight consecutive quarters, we have demonstrated consistent and growing revenue, both organically and further enhanced by acquisitions. Over the last six quarters, our Adjusted EBITDA margins have been growing demonstrably and have been consistently above 18%. We at Protech are very excited and enthusiastic about 2020, as we believe we will hit the $100 million revenue run rate during the year. With an extremely healthy balance sheet our focus for 2020 is to seek larger, more transformative acquisitions. Once again, I’d like to thank the entire Protech team for their tireless efforts and stakeholders for all of their continued support.”
Chief Financial Officer Hardik Mehta added, “We are extremely pleased that our Adjusted EBITDA margin remains strong and we are growing across the company. This continues the trend in demonstrating year-over-year operational improvements and revenue growth at a rate estimated to be in excess of the industry growth rate. Our acquisition pipeline remains strong and our focus is on highly accretive acquisitions posting current annual revenue in the $6M to $20M range.”
The financial statements of the Company for the three months ended December 31, 2019 and 2018 and accompanying Management Discussion & Analysis (MD&A) are available at www.sedar.com.