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Viemed Healthcare Announces First Quarter 2021 Financial Results

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LAFAYETTE, La., May 03, 2021 (GLOBE NEWSWIRE) -- Viemed Healthcare, Inc. (the “Company” or “Viemed”) (TSX: VMD.TO and NASDAQ:VMD), a home medical equipment supplier that provides post-acute respiratory care services in the United States, announced today that it has reported its financial results for the three months ended March 31, 2021.

Operational highlights (all dollar amounts are USD):

  • Net revenues attributable to the Company's core business for the quarter ended March 31, 2021 were $25.5 million, an increase of $2.7 million or 12% over net core revenues reported for the comparable quarter ended March 31, 2020. Total net revenues for the current quarter were $28.4 million which included approximately $2.9 million for contact tracing services and product sales related to the COVID-19 pandemic.

  • Net income for the quarter ended March 31, 2021 totaled approximately $1.7 million, compared to $4.2 million for the quarter ended March 31, 2020. The 2020 quarter included $1.0 million of revenue and $2.5 million of proceeds on used equipment sales related to COVID-19 response sales and services.

  • Adjusted EBITDA for the quarter ended March 31, 2021 totaled approximately $5.5 million, a 31% decrease as compared to the quarter ended March 31, 2020. A reconciliation of reported non-GAAP financial measures to their most directly comparable U.S. GAAP financial measures can be found in the tables accompanying this press release.

  • The Company had a cash balance of $31.1 million at March 31, 2021 ($31.0 million at December 31, 2020) and an overall working capital balance of $26.4 million ($24.2 million at December 31, 2020). Total long-term debt as of March 31, 2021 was $6.1 million ($6.6 million at December 31, 2020).

  • The Company expects to generate net revenues attributable to its core business of approximately $26.2 million to $27.2 million during the second quarter of 2021. While the Company's COVID-19 response related business has slowed during the current year, the Company is continuing to pursue additional sales and support revenues and estimates second quarter 2021 revenues of approximately $0.5 million to $1.0 million related to the COVID-19 pandemic. Total revenues for the second quarter of 2021 are estimated to be approximately $26.7 million to $28.2 million.

“The first quarter will very likely be the quarter where things began to reopen from the COVID-19 pandemic and I am once again proud of our ability to keep servicing high need patients,” said Casey Hoyt, Viemed's CEO. “Our new patient uploads during March were the highest single month since the pandemic began and gave us the ability to grow our core business even with the challenges faced during January and February. We are excited to continue utilizing our new programs along with our traditional sales methods as more healthcare systems open around the country.”

Conference Call Details

The Company will host a conference call to discuss third quarter results on Tuesday, May 4, 2021 at 11:00 a.m. EST.

The call-in numbers for participants are:

US Toll Free Dial In: 1-877-407-0784
International Toll Free Dial In: 1-201-689-8560
Meeting ID Number: 13719010
Live Event Call me™ Link (Available 15 minutes prior to start time for participant entry)
https://callme.viavid.com/?callme=true&passcode=13707099&h=true&info=company-email&r=true&B=6

Following the conclusion of the call, an audio recording and transcript of the call can be accessed on the Company's website.

ABOUT VIEMED HEALTHCARE, INC.

Viemed is a provider of in-home medical equipment and post-acute respiratory healthcare services in the United States. Viemed’s service offerings are focused on effective in-home treatment with clinical practitioners providing therapy and counseling to patients in their homes using cutting edge technology. Visit our website at www.viemed.com.

For further information, please contact:

Glen Akselrod
Bristol Capital
905-326-1888
glen@bristolir.com

Todd Zehnder
Chief Operating Officer
Viemed Healthcare, Inc.
337-504-3802
investorinfo@viemed.com

Forward-Looking Statements

Certain statements contained in this press release may constitute “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 or “forward-looking information” as such term is defined in applicable Canadian securities legislation (collectively, “forward-looking statements”). Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “potential”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, “believes”, or “projects”, or the negatives thereof or variations of such words and phrases or statements that certain actions, events or results “will”, “should”, “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved” or the negative of these terms or comparable terminology. All statements other than statements of historical fact, including those that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance, including the Company's net revenue guidance for the second quarter, are not historical facts and may be forward-looking statements and may involve estimates, assumptions and uncertainties that could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements. Such statements reflect the Company's current views and intentions with respect to future events, and current information available to the Company, and are subject to certain risks, uncertainties and assumptions. Many factors could cause the actual results, performance or achievements that may be expressed or implied by such forward-looking statements to vary from those described herein should one or more of these risks or uncertainties materialize. These factors include, without limitation: the general business, market and economic conditions in the regions in which the Company operates; the impact of the COVID-19 pandemic and the actions taken by governmental authorities, individuals and companies in response to the pandemic on our business, financial condition and results of operations, including on the Company's patient base, revenues, employees, and equipment and supplies; significant capital requirements and operating risks that the Company may be subject to; the ability of the Company to implement business strategies and pursue business opportunities; volatility in the market price of the Company's common shares; the Company’s novel business model; the risk that the clinical application of treatments that demonstrate positive results in a study may not be positively replicated or that such test results may not be predictive of actual treatment results or may not result in the adoption of such treatments by providers; the state of the capital markets; the availability of funds and resources to pursue operations; decline of reimbursement rates; dependence on few payors; possible new drug discoveries; dependence on key suppliers; granting of permits and licenses in a highly regulated business; competition; low profit market segments; disruptions in or attacks (including cyber-attacks) on the Company's information technology, internet, network access or other voice or data communications systems or services; the evolution of various types of fraud or other criminal behavior to which the Company is exposed; the failure of third parties to comply with their obligations; difficulty integrating newly acquired businesses; the impact of new and changes to, or application of, current laws and regulations; the overall difficult litigation and regulatory environment; increased competition; changes in foreign currency rates; increased funding costs and market volatility due to market illiquidity and competition for funding; critical accounting estimates and changes to accounting standards, policies, and methods used by the Company; the Company’s status as an emerging growth company; and the occurrence of natural and unnatural catastrophic events or health epidemics or concerns, such as the COVID-19 pandemic, and claims resulting from such events or concerns; as well as those risk factors discussed or referred to in the Company’s disclosure documents filed with the U.S. Securities and Exchange Commission (the “SEC”) available on the SEC’s website at www.sec.gov, including the Company’s most recent Annual Report on Form 10-K, and with the securities regulatory authorities in certain provinces of Canada available at www.sedar.com. Should any factor affect the Company in an unexpected manner, or should assumptions underlying the forward-looking statements prove incorrect, the actual results or events may differ materially from the results or events predicted. Any such forward-looking statements are expressly qualified in their entirety by this cautionary statement. Moreover, the Company does not assume responsibility for the accuracy or completeness of such forward-looking statements. The forward-looking statements included in this press release are made as of the date of this press release and the Company undertakes no obligation to publicly update or revise any forward-looking statements, other than as required by applicable law.


VIEMED HEALTHCARE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Expressed in thousands of U.S. Dollars, except share amounts)
(Unaudited)

At
March 31, 2021

At
December 31, 2020

ASSETS

Current assets

Cash and cash equivalents

$

31,097

$

30,981

Accounts receivable, net of allowance for doubtful accounts of $7,999
and $9,013 at March 31, 2021 and December 31, 2020, respectively

13,282

12,373

Inventory, net of inventory reserve of $1,349 and $1,353 at March 31, 2021
and December 31, 2020, respectively

2,220

2,310

Prepaid expenses and other assets

1,674

1,511

Total current assets

$

48,273

$

47,175

Long-term assets

Property and equipment, net

53,996

55,056

Equity investments

953

733

Deferred tax asset

8,918

8,733

Other long-term assets

861

863

Total long-term assets

$

64,728

$

65,385

TOTAL ASSETS

$

113,001

$

112,560

LIABILITIES

Current liabilities

Trade payables

$

2,534

$

2,096

Deferred revenue

3,422

3,409

Income taxes payable

340

340

Accrued liabilities

12,013

12,595

Current portion of lease liabilities

1,688

2,741

Current portion of long-term debt

1,858

1,836

Total current liabilities

$

21,855

$

23,017

Long-term liabilities

Accrued liabilities

1,654

1,292

Long-term lease liabilities

748

762

Long-term debt

5,323

5,796

Total long-term liabilities

$

7,725

$

7,850

TOTAL LIABILITIES

$

29,580

$

30,867

Commitments and Contingencies

SHAREHOLDERS' EQUITY

Common stock - No par value: unlimited authorized; 39,577,288 and
39,185,182 issued and outstanding as of March 31, 2021 and December 31,
2020, respectively

13,649

9,181

Additional paid-in capital

4,224

7,320

Accumulated other comprehensive loss

(345

)

(451

)

Retained earnings

65,893

65,643

TOTAL SHAREHOLDERS' EQUITY

$

83,421

$

81,693

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$

113,001

$

112,560


VIEMED HEALTHCARE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(Expressed in thousands of U.S. Dollars, except outstanding shares and per share amounts)
(Unaudited)

Three Months Ended March 31,

2021

2020

Revenue

$

28,416

$

23,806

Cost of revenue

10,674

8,253

Gross profit

$

17,742

$

15,553

Operating expenses

Selling, general and administrative

14,509

10,577

Research and development

339

174

Stock-based compensation

1,307

1,151

Depreciation

200

205

Loss (gain) on disposal of property and equipment

76

(1,169

)

Other income

(21

)

Income from operations

$

1,332

$

4,615

Non-operating expenses

Loss (gain) from equity method investments

(220

)

27

Interest expense, net of interest income

91

158

Net income before taxes

1,461

4,430

Provision (benefit) for income taxes

(223

)

187

Net income

$

1,684

$

4,243

Other comprehensive income (loss)

Change in unrealized gain/loss on derivative instruments, net of tax

106

(312

)

Other comprehensive income (loss)

$

106

$

(312

)

Comprehensive income

$

1,790

$

3,931

Net income per share

Basic

$

0.04

$

0.11

Diluted

$

0.04

$

0.11

Weighted average number of common shares outstanding:

Basic

39,129,407

38,030,854

Diluted

40,663,368

39,677,983


VIEMED HEALTHCARE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Expressed in thousands of U.S. Dollars)
(Unaudited)

Three Months Ended March 31,

2021

2020

Cash flows from operating activities

Net income

$

1,684

$

4,243

Adjustments for:

Depreciation

2,609

2,130

Change in allowance for doubtful accounts

1,819

2,846

Change in inventory reserve

(4

)

Share-based compensation

1,307

1,151

(Gain) loss on equity method investments

(220

)

27

Loss (gain) on disposal of property and equipment

76

(1,169

)

Deferred income taxes (benefit)

(222

)

Net change in working capital

Increase in accounts receivable

(2,728

)

(6,755

)

Decrease (increase) in inventory

94

(425

)

Increase in prepaid expenses and other current assets

(161

)

(2,952

)

Increase in trade payables

438

3,598

Increase in deferred revenue

13

79

Decrease in accrued liabilities

(77

)

(2,361

)

Increase in income tax payable

195

Net cash provided by operating activities

$

4,628

$

607

Cash flows from investing activities

Purchase of property and equipment

(1,797

)

(4,220

)

Investment in equity investments

(32

)

Proceeds from sale of property and equipment

99

2,541

Net cash used in investing activities

$

(1,698

)

$

(1,711

)

Cash flows from financing activities

Proceeds from exercise of options

65

15

Principal payments on notes payable

(37

)

(33

)

Principal payments on term note

(414

)

(395

)

Shares redeemed to pay income tax

(1,434

)

Repayments of lease liabilities

(994

)

(3,429

)

Net cash used in financing activities

$

(2,814

)

$

(3,842

)

Net increase (decrease) in cash and cash equivalents

116

(4,946

)

Cash and cash equivalents at beginning of year

30,981

13,355

Cash and cash equivalents at end of period

$

31,097

$

8,409

Supplemental disclosures of cash flow information

Cash paid during the period for interest

$

117

$

165

Cash paid during the period for income taxes, net of refunds received

$

$

(8

)

Supplemental disclosures of non-cash transactions

Property and equipment financed through finance leases

$

12

$

3,002

Property and equipment financed through operating leases

$

85

$

31


Non-GAAP Financial Measures

This press release refers to “Adjusted EBITDA” which is a non-GAAP financial measure that does not have a standardized meaning prescribed by U.S. GAAP. The Company's presentation of this financial measure may not be comparable to similarly titled measures used by other companies. Adjusted EBITDA is defined as net income (loss) before interest expense, income tax expense (benefit), depreciation and amortization, unrealized (gain) loss on warrant conversion liability and stock-based compensation. Management believes Adjusted EBITDA provides helpful information with respect to the Company’s operating performance as viewed by management, including a view of the Company’s business that is not dependent on the impact of the Company’s capitalization structure and items that are not part of the Company’s day-to-day operations. Management uses Adjusted EBITDA (i) to compare the Company’s operating performance on a consistent basis, (ii) to calculate incentive compensation for the Company’s employees, (iii) for planning purposes, including the preparation of the Company’s internal annual operating budget, and (iv) to evaluate the performance and effectiveness of the Company’s operational strategies. Accordingly, management believes that Adjusted EBITDA provides useful information in understanding and evaluating the Company’s operating performance in the same manner as management. The following table is a reconciliation of net income (loss), the most directly comparable U.S. GAAP measure, to Adjusted EBITDA, on a historical basis for the periods indicated:


VIEMED HEALTHCARE, INC.
Reconciliation of Net Income to Non-GAAP Adjusted EBITDA
(Expressed in thousands of U.S. Dollars)
(Unaudited)

For the quarter ended

March 31,
2021

December 31,
2020

September 30,
2020

June 30,
2020

March 31,
2020

December 31,
2019

September 30,
2019

June 30,
2019

Net Income

$

1,684

$

5,071

$

2,804

$

19,412

$

4,243

$

2,388

$

2,853

$

1,326

Add back:

Depreciation

2,609

2,835

2,425

2,190

2,130

2,003

1,659

1,444

Interest expense

91

100

116

135

158

212

56

20

Unrealized (gain) loss on
warrant conversion liability

(800

)

268

Stock-based compensation

1,307

1,301

1,234

1,196

1,151

908

1,064

1,034

Income tax expense (benefit)

(223

)

151

1,141

(6,646

)

187

58

51

24

Adjusted EBITDA

$

5,468

$

9,458

$

7,720

$

16,287

$

7,869

$

5,569

$

4,883

$

4,116


Use of Non-GAAP Financial Measures

Adjusted EBITDA should be considered in addition to, not as a substitute for, or superior to, financial measures calculated in accordance with U.S. GAAP. It is not a measurement of the Company’s financial performance under U.S. GAAP and should not be considered as an alternative to revenue or net income, as applicable, or any other performance measures derived in accordance with U.S. GAAP and may not be comparable to other similarly titled measures of other businesses. Adjusted EBITDA has limitations as an analytical tool and you should not consider it in isolation or as a substitute for analysis of the Company’s operating results as reported under U.S. GAAP. Adjusted EBITDA does not reflect the impact of certain cash charges resulting from matters the Company considers not to be indicative of ongoing operations; and other companies in the Company’s industry may calculate Adjusted EBITDA differently than we do, limiting its usefulness as a comparative measure.


VIEMED HEALTHCARE, INC.
Key Financial and Operational Information
(Expressed in thousands of U.S. Dollars, except vent patients)
(Unaudited)

For the quarter ended

March 31,
2021

December 31,
2020

September 30,
2020

June 30,
2020

March 31,
2020

December 31,
2019

September 30,
2019

June 30,
2019

Financial Information:

Revenue

$

28,416

$

31,202

$

33,447

$

42,854

$

23,806

$

21,448

$

20,368

$

20,325

Gross Profit

$

17,742

$

19,178

$

19,453

$

25,927

$

15,553

$

14,243

$

14,050

$

14,639

Gross Profit %

62

%

61

%

58

%

61

%

65

%

66

%

69

%

72

%

Net Income

$

1,684

$

5,071

$

2,804

$

19,412

$

4,243

$

2,388

$

2,853

$

1,326

Cash (As of)

$

31,097

$

30,981

$

32,396

$

29,707

$

8,409

$

13,355

$

12,630

$

7,691

Total Assets (As of)

$

113,001

$

112,560

$

113,969

$

112,178

$

86,801

$

82,596

$

79,981

$

71,014

Adjusted EBITDA(1)

$

5,468

$

9,458

$

7,720

$

16,287

$

7,869

$

5,569

$

4,883

$

4,116

Operational Information:

Vent Patients(2)

7,733

7,892

7,788

7,705

7,965

7,759

7,421

7,130

(1)Refer to "Non-GAAP Financial Measures" section above for definition of Adjusted EBITDA.

(2)Vent Patients represents the number of active ventilator patients on recurring billing service at the end of each calendar quarter.