Quipt Home Medical Reports Record Second Quarter Fiscal 2021 Financial Results, Posts Revenue Growth of 36% and Adjusted EBITDA Growth of 28% - Strong Organic Growth of 13% YTD as Compared to 2020
CINCINNATI, June 01, 2021 -- Quipt Home Medical Corp. (the “Company”) (NASDAQ:QIPT; TSXV:QIPT), a U.S. based leader in the home medical equipment industry, focused on end-to-end respiratory care, today announced its second quarter fiscal 2021 financial results and operational highlights. These results pertain to the three and six months ended March 31, 2021 and are reported in U.S. Dollars.
Quipt will host its Quarterly Earnings Conference Call on Tuesday, June 1, 2021 at 10:00 a.m. (ET). The dial-in number is 1 (800) 319-4610 or 1 (604) 638-5340.
- Revenue for Q2 2021 was $24.2 million compared to $17.9 million for Q2 2020, representing a 36% increase in revenue year-over-year. Compared to Q2 2020, the Company experienced strong organic growth of 11%. For YTD 2021 the Company experienced 13% organic growth as compared to the corresponding period in 2020.
- Recurring Revenue as of Q2 2021 continues to be strong and exceeds 75% of total revenue.
- Adjusted EBITDA for Q2 2021 was $5.4 million (22.2% margin), compared to Adjusted EBITDA for Q2 2020 of $4.2 million, representing an 28% increase year-over-year.
- Cash flow from continuing operations was $6.6 million in Q2 2021 compared to $5.2 million in Q2 2020, an increase of 28%.
- The Company reported $27.2 million of cash on hand as at March 31, 2021 compared to $23.6 million at December 31, 2020.
- The Company has an undrawn credit facility of $20 million as at March 31, 2021.
- Through the Company’s continued use of technology and centralized intake processes, respiratory resupply set-ups and/or deliveries increased to 35,702 for the three months ended March 31, 2021, compared to 13,980 for the same period ended March 31, 2020, an increase of 155%.
- The Company’s customer base increased 41% year over year to 56,972 unique patients served in Q2 2021 from 40,372 unique patients in Q2 2020.
- Compared to 63,956 unique set-ups/deliveries in Q2 2020, the Company completed 83,606 unique set-ups/deliveries in Q2 2021, an increase of 31%.
- 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.
- The Company has resumed expanding its sales reach across eleven U.S. states by the addition of experienced sales personnel.
- The Company opened a new location in Daytona Beach, Florida, and Concord, New Hampshire. Each location has a heavily respiratory weighted product mix and is expected to help the Company reach surrounding areas at an accelerated pace, as well as cut down on logistical costs.
Subsequent Events to the three months ended March 31, 2021:
- On May 13, 2021, the Company changed its name from Protech Home Medical Corp. to Quipt Home Medical Corp. The Company carries on the historical patient centric model to meet the one-of-a-kind needs of every patient in its ecosystem.
- On May 13, 2021, the Company consolidated its issued and outstanding common shares based on one post-consolidation common share for every four pre-consolidation common shares. The share consolidation was completed in anticipation of the Company’s application to list its common shares on the NASDAQ Capital Market (“NASDAQ”).
- On May 27, 2021 the Company commenced trading on NASDAQ.
“Our record second quarter financial and operating results speak to the continued strength and consistency of our business model. The demand we are seeing across our product mix continues to be robust, and we are pleased to see the strong rebound within our sleep business with the easing of restrictions across our operating footprint. As evidenced by our results, home health continues to experience structural tailwinds, which we expect to provide our business extraordinary opportunity for years to come,” said CEO and Chairman Greg Crawford. “With our rebranding process behind us, we are incredibly enthused to leverage our new name and the existing highly scalable infrastructure platform we have built to accelerate growth. The platform we have allows for organic and inorganic growth to be efficiently layered on to generate economies of scale. We have applied financial resources and operating expertise to build this unparalleled platform which is paramount to executing on our vision. This is a model which we will utilize in our mission to build-out our operating footprint across the country as we scale into a national provider over time.
“Combining our patient centric model, highly scalable platform, strong financial resources, and incredible team, we have the ability make sizeable acquisitions and integrate with ease within new and existing markets. Given the numerous ongoing initiatives at the company level to push our strategy forward, and the most bullish regulatory environment in a decade, our path forward is clear, and we look forward to scaling our business aggressively in the coming months. A special thank you to our entire team, whose unwavering dedication to providing superior clinical care has once again set our business up for success.”
Chief Financial Officer Hardik Mehta added, “I am very proud of our record breaking second quarter financial and operating results, as well as our completed listing on the NASDAQ. As for our results, we are very pleased to see our sustained margin acceleration as we scale the business and also are encouraged by the strong recurring revenue growth that we experienced in the first half of the year. We are also proud of the 13% organic growth achieved year-to-date, and believe with the many organic growth initiatives underway we can continue to build upon this as we move through the year. As it relates to our NASDAQ listing, this is an extraordinary milestone achieved for the Company and its shareholders, and we feel it will assist us in unlocking shareholder value over the long term.
“The infrastructure we have in place allows us to continue to execute our vision operationally, including the addition of two new de-novo locations in the quarter, to build out the operating footprint further. We also anticipate growing our scale by integrating the Quipt name into local markets over time and are excited about our pipeline of acquisitions. We think we have the potential to have a very busy second half of the year on the acquisition front.”
The financial statements of the Company for the three and six months ended March 31, 2021 and 2020 and accompanying Management Discussion & Analysis (MD&A) are available at www.sedar.com.