Protech Home Medical

  • Simplifying the Patient Experience!

  • 859-300-6455

    cole.stevens@myphm.com

  • 1019 Town Drive

    Wilder, KY 41076

PROTECH HOME MEDICAL PROVIDES CORPORATE UPDATE AS COMPANY POSITIONED TO ACCELERATE GROWTH ROBUST BALANCE SHEET TO ALLOW FOR AGGRESSIVE M&A STRATEGY


  •   8:00AM EST

NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN.

Cincinnati, Ohio – July 7, 2020 – Protech Home Medical Corp. (the “Company” or “Protech”) (TSXV: PTQ) (OTCQX: PTQQF), a U.S. based leader in the home medical equipment industry, focused on end-to-end respiratory care, is pleased to provide a corporate update, including details on the Company’s continued response to COVID-19, commentary on the closing of the recent bought-deal offering and private placement, and an M&A pipeline update.

COVID-19

• As the COVID-19 pandemic continues to evolve we are pleased to report that our operations continue to perform soundly, with demand remaining elevated and supply chain stability continuing through the third quarter. In particular:
     • Increased demand for respiratory equipment, such as ventilators, and oxygen concentrators.
     • CPAP resupply and other supplies business remains very strong.
     • Sleep business gained strength in the 2nd half of the third quarter.
• As certain U.S. States see spikes in COVID-19 cases, including some in markets the Company operates, we have taken the necessary steps to plan, prepare and respond to a 2nd wave of COVID-19 cases.
• The Company’s supply chain for critical equipment remains solid and we are comfortable with our current levels of inventory, however as we feel appropriate, we will opportunistically build inventory to meet the increases in demand, particularly for ventilators and home oxygen equipment. 
• We continue to ensure our patient-facing employees health and wellness when visiting patients and continue to provide them with the appropriate personal protective equipment.
• With a robust balance sheet, strength in our underlying business, acceleration of our M&A strategy and broad industry tailwinds, we are as confident as ever in our ability to execute.

“Operating strength continued into the third quarter, as our supply chain remained resilient, and momentum continued to build across the business, as an acceleration to treating patients in the home provides us with ample opportunity in the markets in which we currently serve” commented Greg Crawford, CEO, and Chairman of Protech. “We are proud to be on the front-lines helping relieve the strain on the traditional healthcare system and stand ready to assist in the event of a 2nd wave of COVID-19.”

Bought-Deal Offering & Private Placement

As press released on June 29, 2020, the Company announced the closing of a $31.8 million short form prospectus offering, including full exercise of the over-allotment option, and concurrent private placements.

“This extremely successful offering provides an opportunity for Protech to accelerate its growth trajectory, with the company having the strongest balance sheet in its history” commented Greg Crawford, CEO and Chairman of Protech. “By participating in the private placement, Mr. Greenberg and I were thrilled to have participated alongside existing and new shareholders in the offering and believe this a testament to how we feel about Protech’s prospects moving forward. We are also delighted by the level of institutional support that participated in the financing as a whole and believe this will serve our shareholder base well. With over $41 million in cash, we have extraordinary financial flexibility when it comes to growing our business and will be aggressively exploring opportunities. We are well positioned to execute on our three-pronged growth strategy and look forward to updating investors as we continue to make additional progress.”

M&A Pipeline

Protech is focused on executing its corporate strategy that incorporates the implementation of technology, organic growth and strategic acquisitions. Following the closing of the recent financing, the Company has more than $41 million in cash to continue to pursue additional accretive acquisitions that are designed to build scale, within markets currently served, and new markets. The focus remains on strategic locations driven by product mix, distribution volumes and the ability to consolidate distribution channels to drive operating efficiencies and maximize earnings accretion.

We are focused on companies with stable revenue generation and consistent EBITDA margins, which we will focus on increasing sales by expanding product offerings, decrease COGS through purchasing volume, and drive efficiencies across the operations.

Additionally, given our robust balance sheet, we will not shy away from larger accretive transactions as compared to the size of our recent acquisitions, that are designed to significantly add to our presence in a market we serve or potentially even open a new market entirely.

“On the heels of our financing, and as we examine the marketplace in the midst of COVID-19, we continue to build our pipeline of qualified acquisition targets aggressively,” said Hardik Mehta, CFO of Protech. “We will remain extremely disciplined as it comes to our approach and will focus on building long-term shareholder value.”