Protech Home Medical

  • Simplifying the Patient Experience!

  • 859-300-6455

  • 1019 Town Drive

    Wilder, KY 41076


  •   EST


Cincinnati, Ohio – February 1, 2021 – Protech Home Medical Corp. (“Protech” or the “Company”) (TSXV:PTQ; OTCQX:PTQQF), a U.S. based leader in the home medical equipment industry, focused on end-to-end respiratory care, today announced its fourth quarter and audited full year fiscal 2020 financial results and operational highlights for the period ended September 30, 2020. After a delay in receiving the auditors opinion, the financial statements of the Company for fiscal years ended September 30, 2020 and 2019 and accompanying Management Discussion & Analysis (MD&A) have now been filed and are now available at

Financial Highlights

•  Revenue for Q4 2020 was $25.0 million compared to $19.5 million for Q4 2019, representing a 28% increase in revenue year-over-year. Compared to Q3 2020, the Company experienced strong organic growth of 3%, excluding new acquisitions, in the fourth quarter, however the reported Canadian dollar revenue amount was slightly offset by a weakening of the U.S. dollar relative to the Canadian dollar. Additionally, from previously issued guidance $1.6 million revenue was reclassified as other income, as per the Company’s auditor’s request.
•  Revenue for fiscal 2020 was $97.8 million compared to $81.0 million in fiscal 2019, a 21% increase year-over-year.
•  Adjusted EBITDA for Q4 2020 was $5.9 million (23.7% margin), compared to $3.5 million (18.0% margin) for Q4 2019, representing a 69% increase year-over-year.
•  Adjusted EBITDA for fiscal 2020 was $20.8 million, compared to $14.8 million for fiscal 2019, an increase of 41%.
•  Cash flow from operations was $17.6 million for the twelve months ended September 30, 2020 compared to $11.1 million for the twelve months ended September 30, 2019.
•  As at September 30, 2020, the Company had cash on hand of $39.0 million, compared to $12.9 million as at September 30, 2019.

Operational Highlights

•  The Company’s customer base increased 20% year-over-year from 76,146 unique patients served in fiscal 2019 to 91,650 unique patients in fiscal 2020.
•  The Company’s customer base increased 35% year-over-year from 32,797 unique patients served in the three months ended September 30, 2020 to 44,185 unique patients in the three months ended September 30, 2020
•  Through the Company’s continued use of technology and centralized intake processes, respiratory resupply set-ups and/or deliveries increased to 19,613 for the three months ended September 30, 2020, compared to 12,727 for the same period ended September 30, 2019, an increase of 54%.
•  Increased the number of equipment set-ups to 68,909 in the quarter ended September 30, 2020 from 53,386 in the quarter ended September 30, 2019, an increase of 29%.
•  During the second half of 2020, the Company’s sleep business regained momentum as stay-at-home orders were lifted across the states it operates in and the Company is confident that this vertical will surpass historical levels in 2021.
•  Strong demand has continued into Q1 2021 for respiratory equipment, such as Ventilators and Oxygen Concentrators, as well as CPAP resupply and other supplies business.

Subsequent Events to the twelve months ended September 30, 2020

•  On September 23, 2020, the Company acquired all of the issued and outstanding equity securities of Sleepwell, LLC (“Sleepwell”), a leader in sleep services in the State of Georgia with $13.0 million in revenue, adjusted EBITDA of $3.25 million, net income of $2.5 million and no debt.
     •   Entered new market in Dayton, Ohio, increased active patient count by over 15,000, and provided strong re-supply model in which the Company plans to grow substantially. Protech derives $25 million from its re-supply subscription model and anticipates that growing to over $30 million with the full integration of Sleepwell, which is well underway.
•  On October 28, 2020, the CMS (Centers for Medicare and Medicaid Services) cancelled the 2021 Competitive Bidding Program for 13 Product Categories that was expected to begin on January 1, 2021.
     •   The cancellation of this program provided Protech with a clear margin outlook across its product mix and ensures patient base stability.
     •   Additionally, the decision helps to ensure that there are no unnecessary barriers to the quality of care for patients, such as access to home respiratory products, durable medical equipment, and other needed supplies.
•  On December 9, 2020, the Company announced that Dr. Kevin A. Carter joined the board of directors of the Company as an independent director.
     •   Kevin A. Carter, DO, FAASM, is Board Certified in Sleep Medicine by the American Board of Family Medicine; he is also Board Certified in Family Medicine.
     •   Dr. Carter served as Medical Director at the Martin Army Sleep Medicine Center at Fort Benning, Georgia. Prior to this appointment, he served as a United States Army Field Surgeon, with service including deployment in Iraq. Currently, through the Carter Sleep Center, he offers full-spectrum sleep medicine evaluations, diagnosis, and treatments.
     •   Dr. Carter holds the degree of Fellow by the American Academy of Sleep Medicine, a recognition that he has met the highest standards in the practice of sleep medicine.

Management Commentary

“2020 was a transformational year for Protech, with a long list of milestones achieved to help drive sustained growth into the future,” said CEO and Chairman Greg Crawford. “I am so proud of our over 400 healthcare professionals for their tireless efforts during what was an extremely challenging year given the ongoing global pandemic. The operational excellence we experienced in 2020 is a direct reflection of the level of continuity across the entire organization, and I am incredibly excited for us to further build on our platform in 2021. Our fourth quarter results showcase the continued momentum across the entire business as our revenue and Adjusted EBITDA growth continued to be robust with continued margin expansion. The investments we have made in technology to remove friction points across the organization have aided in the robust nature of our results and our tele-health platform allowed for the interaction between our frontline workers and patients to continue seamlessly. As a result, we were able to capture the meaningful tailwinds that continue to present themselves. We believe this pandemic has underscored the importance of our mission, which is to be a dynamic clinical respiratory company, providing the growing number of communities we serve with exceptional accessibility and patient care.

In 2021, we will not rest on our laurels as there is still much work to be done to realize on all of our objectives. We will continue to work every day to ensure the care we provide is at the highest level possible as that is truly what drives us and has yielded the results we have had to date. The foundation which we have built will allow us to continue to execute on the tremendous opportunity that exists to further our footprint, unlock operational efficiencies and drive patient satisfaction. With continued focus, we believe we can continue to lower operational costs while offering a better patient experience for the more than 110,000 patients that we care for.

Finally, we are pleased to have announced an LOI on January 5, 2021 for a Southern based respiratory care company that would give Protech access to its 11th U.S. state. The target would add over 10,000 active patients, of which over 5,000 would enter our subscription-based re-supply program. We look forward to closing this acquisition in the coming weeks. Moreover, we are thrilled to have applied to list on NASDAQ and feel this will be a monumental value creator for new and existing shareholders. Creating awareness for our Company is crucial and we look forward to being active on both sides of the border in 2021. I’d like to once again thank the entire Protech team for their hard work each and every day as well as our stakeholders for all of their continued support.”

Chief Financial Officer, Hardik Mehta added, “We wrapped up 2020 in extraordinary shape, with record-breaking annual results, an exceptionally strong balance sheet, and a full M&A pipeline which we expect to make for a very busy 2021. Our run-rate revenue sits at over $125 million, not including the recent LOI announced, and we have upwardly revised our 5-year growth trajectory to reflect the continued success of our operations, and aggressive M&A plans. We are excited to see our top-line growth continue to accelerate far faster than the industry, and our Adjusted EBITDA margin breaching the 22% level. We remain committed to driving profitability and believe we are making meaningful progress to this end, which we believe will materialize as we move through 2021. With a pristine balance sheet, continued margin expansion and improving cash flows, we are in a position to be very aggressive with our acquisition strategy and are focused on accretive respiratory focused companies with $5-$20 million in revenue and double-digit EBITDA margins that allow us to expand our geographical reach. We are focused on building long-term shareholder value, and feel we have a successful organic and inorganic growth strategy that has us positioned to do so into the future.”

Nasdaq Listing Update

In connection with the Company’s application for listing on the NASDAQ Capital Market, the Company is also working with its auditor on a review of fiscal 2020 financial statements not yet reviewed for inclusion in a Form 40-F Registration Statement to be filed with the United States Securities and Exchange ‎Commission.