Revenue for fiscal year 2023 was $221.7 million compared to $139.9 million for fiscal year 2022
Tuesday, December 19, 2023

CINCINNATI—Quipt Home Medical Corp. (the “Company”) (NASDAQ: QIPT; TSX: QIPT), a U.S.-based home medical equipment provider, focused on end-to-end respiratory care, today announced its fourth quarter and fiscal year 2023 financial results and operational highlights. These results pertain to the three months and year ended Sept. 30, 2023, and are reported in United States dollars ("$", "dollars" and "US$") and have been rounded to the nearest hundred thousand.

Financial Highlights:
  • Revenue for fiscal year 2023 was $221.7 million compared to $139.9 million for fiscal year 2022, representing a 59% increase.
  • Net income (loss) for fiscal year 2023 was ($2.8) million, or ($0.07) per diluted share, compared to $4.8 million, or $0.14 per diluted share for fiscal year 2022.
  • Adjusted EBITDA (defined in Non-IFRS Measures below) for fiscal year 2023 was $50.6 million (22.8% of revenue), compared to fiscal year 2022 of $29.2 million (20.9% of revenue), representing a 73% increase. Adjusted EBITDA as a percent of revenue accelerated due to increased scale resulting in better operating leverage across the business.
  • Revenue for Q4 2023 was $62.5 million compared to $40.1 million for Q4 2022, representing a 56% increase.
  • Recurring Revenue (defined in Non-IFRS Measures below) for Q4 2023 was very strong and exceeded 83% of total revenue, driven by growth in the Company’s resupply platform.
  • Net income (loss) for Q4 2023 was ($1.3) million, or ($0.03) per diluted share, as compared to $1.8 million, or $0.05 per diluted share for Q4 2022.
  • Adjusted EBITDA for Q4 2023 was $14.7 million (23.5% of revenue) compared to $8.4 million (21.0% of revenue) for Q4 2022, representing a 75% increase.
  • Cash flow from operations was $40.5 million for the year ended September 30, 2023, compared to $26.3 million for the year ended September 30, 2022.
  • For fiscal year 2023, bad debt expense improved to 4.5% compared to 8.7% for fiscal year 2022. This exemplifies the Company’s ability to scale and add more revenue through add-on acquisitions without compromising billing and collection capabilities.
  • The Company reported $17.2 million of cash on hand and total credit availability of $41.0 million as of September 30, 2023 with $20.0 million available towards its revolving credit facility and $21.0 million available pursuant to a delayed draw term loan facility.
  • The Company maintains a conservative balance sheet with net debt to Adjusted EBITDA leverage of 1.4x.
Operational and Recent Acquisition Highlights:
  • The Company’s customer base increased 65% year over year to 285,819 unique patients served in fiscal year 2023 from 173,203 unique patients in fiscal year 2022.
  • Compared to 516,328 unique set-ups/deliveries in fiscal year 2022, the Company completed 754,414 unique set-ups/deliveries in fiscal year 2023, an increase of 46%. This includes 395,618 respiratory resupply set-ups/deliveries for the year ended September 30, 2023, compared to 231,495 for the year ended September 30, 2022, an increase of 71%, which the Company credits to its continued use of technology and centralized intake processes.
  • The Company’s resupply program is a major proponent of the Company’s 83% recurring revenue base as the Company has significantly scaled, now representing 47% of the recurring revenue mix, driving higher margin revenue. The program now consists of approximately 169,000 patients as of September 30, 2023, compared to approximately 100,000 patients as of September 30, 2022.
  • The Company continues to experience very strong demand for respiratory equipment, including CPAPs, BiPAPs, oxygen concentrators, ventilators, as well as the CPAP resupply and other supplies business.
  • The Company has continued expanding its sales reach, driving organic growth which now spans across 26 U.S. states with the addition of experienced sales personnel.
  • The Company has reached 287,500 active patients, 34,400 referring physicians and 125 locations.
  • In September 2023, the Company acquired a multi-state home medical equipment operator in Mississippi, Texas, and Louisiana. The acquisition added approximately $9 million ‎in revenue with anticipated post-integration Adjusted EBITDA as a percent of revenue similar to Company’s existing percent. Integration has gone very well, and the Company is working on organic expansionary opportunities within those existing markets.
Management Commentary:

“We exited fiscal 2023 with strong momentum across the organization, and substantial operating scale achieved, posting record results with revenue increasing by $81.8 million to $221.7 million," said CEO and Chairman Greg Crawford. "We saw an acceleration of our fiscal 2023 Adjusted EBITDA as a percentage of revenue increase to 22.8%, compared to 20.9% in fiscal 2022, reduced our bad debt expense significantly and improved net operating cash flow. Our growth strategy continues to yield consistent financial and operational results, and we are pleased with the team's continuous efforts to expand our patient-centric ecosystem into strategic areas around the country. To achieve our goals for organic growth, we have been concentrating our efforts on areas where COPD prevalence is high and extending our sales efforts into continuum markets. In fiscal 2024, we anticipate solid organic growth, with the goal of achieving 8-10% revenue growth on an annualized basis. In real time during fiscal Q1 2024, we have seen continued strong demand for our entire diversified respiratory product mix including sleep products and expect this to continue through fiscal 2024."

He continued, “with 287,500 active patients across 26 states in the United States, Quipt is currently in the strongest market position it has ever been in. Given the favorable regulatory environment, the ongoing high demand for respiratory products and services, the robust demographic trends, and our consistent operating success across the board, we expect continued robust growth in fiscal 2024. Furthermore, we have a lot of opportunity to take advantage of the growing market for at-home clinical respiratory care thanks to our healthy balance sheet, strategic organic growth initiatives and acquisition pipeline.”

“We take great pride in our record-breaking financial and operational performance in the 2023 fiscal year and are incredibly proud of our ability to post our Adjusted EBITDA at 22.8% of revenue,” said Hardik Mehta, Quipt’s chief financial officer. “In fiscal Q4, we saw further margin acceleration with Adjusted EBITDA as a percentage of revenue reaching 23.5% and we exceeded $256 million in Run-Rate Revenue (defined in Non-IFRS Measures below). We continue achieving consistent financial results as a result of our ongoing efforts to strategically develop scale with the infrastructure we already have in place, and with over 83% of our revenue being categorized as recurring. Our seamless integration of our largest acquisition to date to kick off 2023 has opened lots of growth opportunities for us to push in 2024. We have the resources needed to carry out our organic and inorganic plan for strategic expansion in an environment with elevated interest rates thanks to our very strong balance sheet with a very low leverage ratio of 1.4x net debt to Adjusted EBITDA, and more than $58 million between available credit and cash on hand. Given our flexible capital structure we continue to look at different ways to create shareholder value and believe that our operational excellence and robust balance sheet provide us with all the resources necessary to execute our growth strategy.”

The Company's full financial statements and management's discussion and analysis for the three months and year ended September 30, 2023 will be available under the Company's profile on SEDAR (sedarplus.ca) and at sec.gov and will be posted on the Company's web site at quipthomemedical.com, on or before the filing deadline of Dec. 29, 2023.