Protech Home Medical

  • Simplifying the Patient Experience!

  • 859-300-6455

    cole.stevens@myphm.com

  • 1019 Town Drive

    Wilder, KY 41076

PROTECH HOME MEDICAL REPORTS RECORD FIRST QUARTER FISCAL 2021 FINANCIAL RESULTS


  •   8:00AM EST

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Posts Revenue Growth of 32% And Adjusted EBITDA Growth of 53% | Recurring Revenue Grows to 75% of Total Revenue

CINCINNATI, March 02, 2021 (GLOBE NEWSWIRE) -- Protech Home Medical Corp. (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 first quarter fiscal 2021 financial results and operational highlights. These results pertain to the three-month period ended December 31, 2020 and are reported in U.S. Dollars.

Protech will host its Quarterly Earnings Conference Call on Tuesday, March 2, 2021 at 10:00 a.m. (EST). The dial-in number is 1 (800) 319-4610 or 1 (604) 638-5340.

Financial Highlights:

     •  Revenue for Q1 2021 was $22.8 million compared to $17.2 million for Q1 2020, representing a 32% increase in revenue year-over-year. Compared to Q4, 2020,
         the Company experienced strong organic growth of 5%.
     •  Average Recurring Revenue for trailing twelve month at the end of Q1 2021 represents 75% of total revenue.
     •  Adjusted EBITDA for Q1 2021 was $5.1 million (22.5% margin), compared to Adjusted EBITDA for Q1 2020 of $3.3 million (19.4% margin), representing a 53%
        increase year-over-year.
     •  Operating Expense for Q1 2021 was 50.7 %, compared to Q1 2020 of 56.2 %, a substantial margin improvement resulting from scaling on our existing platform
     •  Cash flow from continuing operations was $2.8 million in Q1 2021 compared to $3.6 million in Q1 2020, the variance was primarily due to changes in working
         capital.
     •  The Company reported $23.6 million of cash on hand as at December 31, 2020 compared to $6.4 million at December 31, 2019 in addition to having an undrawn
        credit facility of $20 million as at December 31, 2020.

Operational Highlights
:

     •  Through the Company’s continued use of technology and centralized intake processes, respiratory resupply set-ups and/or deliveries increased to 34,996 for Q1
         2021, compared to 13,439 for Q1 2020, an increase of 160%.
     •  The Company’s customer base increased 33% year over year to 51,836 unique patients served in Q1 2021 from 39,070 unique patients in Q1 2020.
     •  Compared to 62,999 unique set-ups/deliveries in Q1 2020, the Company completed 76,691 unique set-ups/deliveries in Q1 2021, an increase of 22%.
     •  The Company continues to experience robust demand for respiratory equipment, such as oxygen concentrators, ventilators, as well as the CPAP resupply and
         other supplies business.

Subsequent Events to the three months ended December 31, 2020
:

     •  On January 13th the Company announced it has applied to list its common shares on the NASDAQ Capital Market (“NASDAQ”). Subject to meeting all conditions
         to listings, the Company is targeting completion within the 1st half of 2021.
               •  On February 2nd the Company announced the acquisition of Mayhugh’s Medical Equipment (“MME”), a respiratory care company based in Florida, reporting
                   unaudited trailing 12-month annual revenues of approximately $5.5 million and Adjusted EBITDA of approximately $946,000. MME adds over 10,000 active
                   patients to Protech’s patient population and represents Protech’s 49th location and entrance into its 11th U.S. State.

Management Commentary
:

“The momentum across the business continues to be robust as evidenced by our first quarter financial and operating results, and I am pleased to say that we are seeing similar strong trends into our second quarter,” said CEO and Chairman Greg Crawford. “Over the last few years, we have applied financial resources and operating expertise to build an unparalleled scalable platform which is poised for tremendous growth. We have the ability to leverage this patient centric platform to make sizeable acquisitions in new and existing markets and integrate them with ease. Coupling this with our significant financial resources, we have never been more excited as to what we can accomplish as a company and have our eyes set on transforming into a national provider of respiratory home care in the United States. As seen in our financials, our recurring revenue grew to 75% of total revenue and we anticipate a further uptick with a full quarter of contribution from SleepWell. This strong recurring revenue platform provides us further stability and consistency as it relates to our growth outlook and is a direct result of the infrastructure we have developed. Our path forward is crystal clear, and with an extremely healthy balance sheet our focus for 2021 is to seek larger, more transformative acquisitions. Lastly, 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 to have transitioned to reporting in U.S. dollars, representing an important step forward in our goal to simplify our reporting and capital markets presentation for investors. We are excited to see the sustained margin acceleration and strong recurring revenue growth that we experienced in the first quarter. Our Adjusted EBITDA margin remains strong as we continue to experience tailwinds across the Company. We also expect our results to further improve as our sleep business normalizes and exceeds historical levels as we move through 2021. On the acquisition front, we are looking forward to quickly scaling up in Florida on the heels of closing MME, and have a full pipeline of acquisition targets in current and new markets that we will continue to assess in the coming months.”

The financial statements of the Company for the three months ended December 31, 2020 and 2019 and accompanying Management Discussion & Analysis (MD&A) are available at www.sedar.com.