CINCINNATI—Home medical equipment provider Quipt Home Medical Corp. announced its fourth quarter and fiscal year 2022 financial results and operational highlights.
“The record results seen in the fourth quarter and fiscal year 2022 are directly attributable to the expansion of our patient-centric ecosystem into favorable geographies across the United States through our strategic growth initiatives," said CEO and Chairman Greg Crawford. "Despite an ambitious acquisition pace and inflationary operating environment, I am very pleased with our ability to grow our revenue by 37% and maintain above 20% margins for fiscal year 2022 by continuing to implement our steady operating processes and integration activities. As a healthcare organization with a concentration on respiratory treatment, we feel well protected from potential economic challenges given the nature of our business and sector.”
The company reported the following highlights:
- Revenue for fiscal year 2022 was $139.9 million compared to $102.4 million for fiscal year 2021, representing a 36.6% increase.
- Recurring revenue for fiscal year 2022 continues to be strong and exceeded 77% of total revenue.
- Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) for fiscal year 2022 was $29.2 million (20.9% margin), compared to Adjusted EBITDA for fiscal year 2021 of $21.4 million, representing a 36.5% increase. Adjusted EBITDA margin remained very stable despite the inflationary operating environment.
- Net Income for fiscal year 2022 was $4.8 million or $0.13 per fully diluted share, compared to net income for fiscal year 2021 of a loss of $(6.2) million or $(0.20) per fully diluted share.
- Revenue for Q4 2022 was $40.1 million compared to $29.1 million for Q4 2021, representing a 37.7% increase.
- Adjusted EBITDA for Q4 2022 was $8.4 million (21% margin) compared to $5.6 million (19% margin) for Q4 2021, representing a 51% increase.
- Cash flow from operations was $26.3 million for the year ended September 30, 2022 compared to $17.8 million for the year ended September 30, 2021.
- For fiscal year 2022, bad debt expense remained consistent at 8.7%.
- On September 19, 2022, the company announced the closing of $110,000,000 in senior secured credit facilities with CIT Bank, a division of First-Citizens Bank & Trust Company. The senior secured credit facilities are comprised of a term loan facility in an aggregate principal amount of $5 million, a delayed draw term loan facility in an aggregate principal amount of $85 million and a revolving credit facility in an aggregate principal amount of $20 million.
- The company reported $8.5 million of cash on hand and total credit availability of $96.5 million as of September 30, 2022 with $11.5 million available towards the revolving credit facility and $85 million available pursuant to the delayed draw term loan facility.
Operational and Acquisition Highlights:
- Quipt's customer base increased 23% year over year to 173,203 unique patients served in fiscal year 2022 from 140,996 unique patients in fiscal year 2021.
- Compared to 364,367 unique set-ups/deliveries in fiscal year 2021, the company completed 516,328 unique set-ups/deliveries in fiscal year 2022, an increase of 41.7%. This includes 231,495 respiratory resupply set-ups/deliveries which increased to 231,495 for the year ended September 30, 2022, compared to 158,072 for the year ended September 30, 2021, an increase of 46.4%, which officials credited to its continued use of technology and centralized intake processes.
- Quipt Company continues to experience robust demand for respiratory equipment, such as oxygen concentrators, ventilators, as well as the CPAP resupply and other supplies business.
- On April 26, 2022, the company announced the execution of a national insurance contract with a top five health insurer in the United States 1, which has expanded accessibility for our patients across the country. The company will continue to work towards agreements with other sizable commercial payors.
- The company completed eight acquisitions during fiscal year 2022. In fiscal Q4 2022, it acquired Hometown Medical, LLC, a business with operations in Mississippi, reporting unaudited trailing 12-month annual revenues of approximately $7 million and with anticipated adjusted EBITDA of $1.4 million post integration.
- The company has expanded its sales reach which now spans across 19 U.S. states with the addition of experienced sales personnel.
- Quipt has reached 200,000 active patients, 21,500 referring physicians and 94 locations.
“Quipt is in the best position in its history, with continued growth in revenue and Adjusted EBITDA, continued margin expansion, a strong balance sheet, and a provider of in-home clinical respiratory care, now providing services to 200,000 active patients in 19 U.S. states," Crawford said. "We anticipate continued growth in 2023 due to favorable regulatory conditions, persistently high demand for respiratory products and services, robust demographic trends, and our continued operating performance seen throughout the business. Moreover, our current acquisition pipeline and our robust balance sheet provides us with significant opportunity focused on the expanding demand for at-home clinical respiratory care.”
