CINCINNATI (February 17, 2022)—Quipt Home Medical Corp., a U.S. based home medical equipment provider focused on end-to-end respiratory care, announced its first quarter fiscal 2022 financial results and operational highlights. These results pertain to the three-month period ended Dec. 31, 2021 and are reported in U.S. dollars.
The company reported revenue for Q1 2022 was $29.5 million compared to $22.8 million for Q1 2021, representing a 30% increase in revenue year-over-year.
Quipt also reported a backlog on patients in their queue to be set up on sleep devices. As of Dec. 31, that backlog had 8,000 patients. The company is cautiously optimistic that sleep device allocations will increase in the second half of 2022, which will relieve some of the backlog, generating a lift in revenue from this impacted segment of the business.
Through the company’s continued use of technology and centralized intake processes, respiratory resupply set-ups and/or deliveries increased to 51,137 for the three months ended Dec. 31, 2021, compared to 34,996 for the same period ended Dec.31, 2020, an increase of 46%. In addition, the Company’s customer base increased 45% year over year from 51,836 unique patients served in Q1 2021 to 75,309 unique patients in Q1 2022.
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 continued momentum across the business shown through our record first quarter results exemplifies our ability to successfully navigate our operations through a challenging supply chain environment driving consistent business performance. … Inclusive of the sleep device supply constraints we remain on track for our calendar end 2022 financial outlook and anticipate a further lift as the sleep device patient backlog subsides in the second half of the year,” said CEO and chairman Greg Crawford.
Acquisition Related Updates
The company completed three acquisitions during the three months ended Dec. 31, 2021.
“Moreover, we continue to operate in an extremely bullish regulatory environment, providing us the ability to aggressively approach our acquisition strategy with the goal of being a leader in clinical respiratory care throughout the United States. Our acquisition pipeline is exciting with a plethora of strategic opportunities ranging in size, and we look forward to moving targets through the funnel in the coming months,” Crawford said.
On Oct. 1, 2021, the company acquired a business with operations in Mississippi adding over 4,000 active patients, more than 10,000 unique orders, and 590 unique referring physicians. Moreover, the acquisition provides Quipt important insurance contracts and decades of operating experience, with an over 30-year operating track record in the markets served. The business has a diverse payor mix and full suite of products with a focus on respiratory care, representing over 65% of the mix.
On Nov. 1, 2021, the company acquired a business with operations in Central Illinois. The acquisition has a heavily weighted respiratory product mix, and over 3,700 active patients. Moreover, the acquisition provides Quipt important insurance contracts and decades of operating experience, with an over 40-year operating track record in the markets served. The business has a diverse payor mix and full suite of products with a focus on respiratory care, representing over 85% of the mix.
On Nov. 9, 2021, the company acquired a privately held biomedical services company, with operations in the Southeastern United States. The acquisition provides the company a synergistic opportunity to expand into a brand-new service line of biomedical repair services for respiratory equipment including preventative maintenance.
Also, outside of that period, on Jan. 1, 2022, the company acquired At Home Health Equipment, Inc., a business with operations in Indiana, reporting unaudited trailing 12-month annual revenues of approximately $13 million and $1.6 million in net income with anticipated Adjusted EBITDA of $2.9 million (22% margin) post integration. The acquisition adds over 15,000 active patients. Quipt’s current revenue run-rate (unaudited), including At Home Health Equipment, Inc., is $135 million.
New Board Member
On Feb. 3, 2022, the company announced that Brian J. Wessel has joined the board of directors of the company as an independent director and chair of the audit committee. Wessel is a senior business executive with over 34 years of global client service, operational and financial expertise. As a former senior partner at Ernst & Young, Wessel provided audit and advisory services to public, private and private-equity-owned companies across multiple industry sectors. He adds significant knowledge and practical experience in complex accounting and financial reporting matters, SEC registration statements, business combinations, audits of internal control over financial reporting and carve-out audits. Furthermore, Wessel has deep experience with various types of transactions including business acquisitions and divestitures.
Visit quipthomemedical.com for more information.
