Operational highlights (all dollar amounts are USD):
- Net revenues attributable to the Company's core business for the quarter ended
June 30, 2022 were$33.1 million , a new Company record, and an increase of$6.9 million or 26% over core net revenues reported for the comparable quarter endedJune 30, 2021 . Including COVID-19 related services, total net revenues for the current quarter were$33.3 million . - Through
June 30, 2022 , the Company has repurchased and cancelled 1,350,567 common shares under the share repurchase program at a cost of$7.0 million , representing an average buyback price of$5.18 per share. - As a result of the Qualified Independent Contractor's reconsideration findings, recalculated overpayment requests have been issued by the Medicare Administrative Contractors, reducing the disputed exposure to
$1.1 million . The Company has filed its appeals with the Administrative Law Judge, and intends to continue to defend itself vigorously through the remaining appeals processes, as necessary. - The Company grew its ventilator patient count to 8,837, a 9% increase over the
June 30, 2021 ventilator patient count. This represents the highest sequential quarterly growth since the second quarter of 2019. - Adjusted EBITDA for the quarter ended
June 30, 2022 totaled$6.5 million and Adjusted EBITDA for the six months endedJune 30, 2022 totaled$13.7 million . A reconciliation of reported non-GAAP financial measures to their most directly comparableU.S. GAAP financial measures can be found in the tables accompanying this press release. - The Company had a cash balance of
$21.9 million atJune 30, 2022 ($28.4 million atDecember 31, 2021 ) and an overall working capital balance of$24.0 million atJune 30, 2022 ($29.5 million atDecember 31, 2021 ). Total long-term debt as ofJune 30, 2022 was$4.2 million ($4.3 million atDecember 31 , 2021). - The Company expects to generate net revenues of approximately
$34.5 million to$35.5 million during the third quarter of 2022.
“I am extremely proud of the robust growth across all lines of products and services, highlighting the synergies in our offerings,” said
Conference Call Details
The Company will host a conference call to discuss second quarter results on
Interested parties may participate in the call by dialing:
877-407-6176 (US Toll-Free)
201-689-8451 (International)
Live Audio Webcast: https://event.choruscall.com/mediaframe/webcast.html?webcastid=nCv1tRHb
Following the conclusion of the call, an audio recording and transcript of the call can be accessed on the Company's website.
ABOUT
For further information, please contact:
905-326-1888
glen@bristolir.com
Chief Operating Officer
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
CONDENSED CONSOLIDATED BALANCE SHEETS
(Expressed in thousands of
(Unaudited)
At | At | |||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 21,922 | $ | 28,408 | ||||
Accounts receivable, net of allowance for doubtful accounts of | 14,287 | 12,823 | ||||||
Inventory, net of inventory reserve of | 2,853 | 2,457 | ||||||
Income tax receivable | 531 | 1,893 | ||||||
Prepaid expenses and other assets | 2,266 | 1,729 | ||||||
Total current assets | $ | 41,859 | $ | 47,310 | ||||
Long-term assets | ||||||||
Property and equipment, net | 66,685 | 62,846 | ||||||
Equity investments | 2,435 | 2,157 | ||||||
Deferred tax asset | 3,964 | 4,787 | ||||||
Other long-term assets | 961 | 862 | ||||||
Total long-term assets | $ | 74,045 | $ | 70,652 | ||||
TOTAL ASSETS | $ | 115,904 | $ | 117,962 | ||||
LIABILITIES | ||||||||
Current liabilities | ||||||||
Trade payables | $ | 3,702 | $ | 3,239 | ||||
Deferred revenue | 4,402 | 3,753 | ||||||
Accrued liabilities | 8,860 | 8,875 | ||||||
Current portion of lease liabilities | 283 | 464 | ||||||
Current portion of long-term debt | 612 | 1,480 | ||||||
Total current liabilities | $ | 17,859 | $ | 17,811 | ||||
Long-term liabilities | ||||||||
Accrued liabilities | 385 | 757 | ||||||
Long-term lease liabilities | 207 | 268 | ||||||
Long-term debt | 4,226 | 4,306 | ||||||
Total long-term liabilities | $ | 4,818 | $ | 5,331 | ||||
TOTAL LIABILITIES | $ | 22,677 | $ | 23,142 | ||||
Commitments and Contingencies | — | — | ||||||
SHAREHOLDERS' EQUITY | ||||||||
Common stock - No par value: unlimited authorized; 38,333,089 and 39,640,388 issued and outstanding as of | 14,348 | 14,014 | ||||||
Additional paid-in capital | 9,991 | 7,749 | ||||||
Accumulated other comprehensive loss | (56 | ) | (278 | ) | ||||
Retained earnings | 68,944 | 73,335 | ||||||
TOTAL SHAREHOLDERS' EQUITY | $ | 93,227 | $ | 94,820 | ||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 115,904 | $ | 117,962 |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(Expressed in thousands of
(Unaudited)
Three Months Ended | Six Months Ended | ||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||
Revenue | $ | 33,310 | $ | 27,399 | $ | 65,565 | $ | 55,815 | |||||||
Cost of revenue | 12,920 | 9,774 | 25,432 | 20,448 | |||||||||||
Gross profit | $ | 20,390 | $ | 17,625 | $ | 40,133 | $ | 35,367 | |||||||
Operating expenses | |||||||||||||||
Selling, general and administrative | 17,536 | 12,884 | 33,312 | 27,393 | |||||||||||
Research and development | 672 | 583 | 1,304 | 922 | |||||||||||
Stock-based compensation | 1,271 | 1,236 | 2,576 | 2,543 | |||||||||||
Depreciation | 243 | 207 | 480 | 407 | |||||||||||
Loss (gain) on disposal of property and equipment | (110 | ) | 83 | (124 | ) | 159 | |||||||||
Other expense | (223 | ) | (32 | ) | (664 | ) | (53 | ) | |||||||
Income from operations | $ | 1,001 | $ | 2,664 | $ | 3,249 | $ | 3,996 | |||||||
Non-operating income and expenses | |||||||||||||||
Income from equity method investments | 446 | 231 | 769 | 451 | |||||||||||
Interest expense, net of interest income | (59 | ) | (83 | ) | (123 | ) | (174 | ) | |||||||
Net income before taxes | 1,388 | 2,812 | 3,895 | 4,273 | |||||||||||
Provision for income taxes | 421 | 1,246 | 1,166 | 1,023 | |||||||||||
Net income | $ | 967 | $ | 1,566 | $ | 2,729 | $ | 3,250 | |||||||
Other comprehensive income (loss) | |||||||||||||||
Change in unrealized gain/loss on derivative instruments, net of tax | 59 | (6 | ) | 222 | 100 | ||||||||||
Other comprehensive income (loss) | $ | 59 | $ | (6 | ) | $ | 222 | $ | 100 | ||||||
Comprehensive income | $ | 1,026 | $ | 1,560 | $ | 2,951 | $ | 3,350 | |||||||
Net income per share | |||||||||||||||
Basic | $ | 0.02 | $ | 0.04 | $ | 0.07 | $ | 0.08 | |||||||
Diluted | $ | 0.02 | $ | 0.04 | $ | 0.07 | $ | 0.08 | |||||||
Weighted average number of common shares outstanding: | |||||||||||||||
Basic | 38,773,580 | 39,584,064 | 39,195,317 | 39,357,992 | |||||||||||
Diluted | 39,752,928 | 41,028,742 | 40,056,953 | 40,849,311 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Expressed in thousands of
(Unaudited)
Six Months Ended | ||||||||
2022 | 2021 | |||||||
Cash flows from operating activities | ||||||||
Net income | $ | 2,729 | $ | 3,250 | ||||
Adjustments for: | ||||||||
Depreciation | 7,136 | 5,325 | ||||||
Provision for uncollectible accounts | 6,300 | 3,402 | ||||||
Change in inventory reserve | (1,418 | ) | — | |||||
Share-based compensation | 2,576 | 2,543 | ||||||
Distributions of earnings received from equity method investments | 612 | 123 | ||||||
Income from equity method investments | (769 | ) | (451 | ) | ||||
Loss (gain) on disposal of property and equipment | (124 | ) | 159 | |||||
Deferred income tax expense | 745 | 1,005 | ||||||
Net change in working capital | ||||||||
Increase in accounts receivable | (7,764 | ) | (3,163 | ) | ||||
Increase in inventory | 1,022 | (248 | ) | |||||
Increase (decrease) in prepaid expenses and other assets | (634 | ) | 311 | |||||
Increase (decrease) in trade payables | (243 | ) | 362 | |||||
Increase in deferred revenue | 649 | 333 | ||||||
Decrease in accrued liabilities | (87 | ) | (3,800 | ) | ||||
Change in income tax payable/receivable | 1,362 | (340 | ) | |||||
Net cash provided by operating activities | $ | 12,092 | $ | 8,811 | ||||
Cash flows from investing activities | ||||||||
Purchase of property and equipment | (10,989 | ) | (5,047 | ) | ||||
Investment in equity investments | (121 | ) | — | |||||
Proceeds from sale of property and equipment | 615 | 289 | ||||||
Net cash used in investing activities | $ | (10,495 | ) | $ | (4,758 | ) | ||
Cash flows from financing activities | ||||||||
Proceeds from exercise of options | — | 112 | ||||||
Principal payments on notes payable | (78 | ) | (73 | ) | ||||
Principal payments on term note | (872 | ) | (833 | ) | ||||
Shares redeemed to pay income tax | (119 | ) | (1,434 | ) | ||||
Shares repurchased under the share repurchase program | (7,001 | ) | — | |||||
Repayments of lease liabilities | (13 | ) | (1,655 | ) | ||||
Net cash used in financing activities | $ | (8,083 | ) | $ | (3,883 | ) | ||
Net (decrease) increase in cash and cash equivalents | (6,486 | ) | 170 | |||||
Cash and cash equivalents at beginning of year | 28,408 | 30,981 | ||||||
Cash and cash equivalents at end of period | $ | 21,922 | $ | 31,151 | ||||
Supplemental disclosures of cash flow information | ||||||||
Cash paid during the period for interest | $ | 128 | $ | 198 | ||||
Cash paid (received) during the period for income taxes, net of refunds | $ | (940 | ) | $ | 358 | |||
Supplemental disclosures of non-cash transactions | ||||||||
Net non-cash changes to finance leases | $ | — | $ | 12 | ||||
Net non-cash changes to operating leases | $ | (8 | ) | $ | 355 |
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
Reconciliation of Net Income to Non-GAAP Adjusted EBITDA
(Expressed in thousands of
(Unaudited)
For the quarter ended | 2022 | 2022 | 2021 | 2021 | 2021 | 2021 | 2020 | 2020 | ||||||||||||||||
Net Income | $ | 967 | $ | 1,762 | $ | 4,087 | $ | 1,789 | $ | 1,566 | $ | 1,684 | $ | 5,071 | $ | 2,804 | ||||||||
Add back: | ||||||||||||||||||||||||
Depreciation | 3,740 | 3,397 | 3,120 | 2,867 | 2,716 | 2,609 | 2,835 | 2,425 | ||||||||||||||||
Interest expense | 59 | 64 | 69 | 75 | 83 | 91 | 100 | 116 | ||||||||||||||||
Stock-based compensation | 1,271 | 1,305 | 1,305 | 1,302 | 1,236 | 1,307 | 1,301 | 1,234 | ||||||||||||||||
Income tax expense (benefit) | 421 | 745 | 968 | 1,386 | 1,246 | (223 | ) | 151 | 1,141 | |||||||||||||||
Adjusted EBITDA | $ | 6,458 | $ | 7,273 | $ | 9,549 | $ | 7,419 | $ | 6,847 | $ | 5,468 | $ | 9,458 | $ | 7,720 |
Three Months Ended | Six Months Ended | |||||||
Net Income | $ | 967 | $ | 2,729 | ||||
Add back: | ||||||||
Depreciation | 3,740 | 7,137 | ||||||
Interest expense | 59 | 123 | ||||||
Stock-based compensation | 1,271 | 2,576 | ||||||
Income tax expense (benefit) | 421 | 1,166 | ||||||
Adjusted EBITDA | $ | 6,458 | $ | 13,731 |
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
Key Financial and Operational Information
(Expressed in thousands of
(Unaudited)
For the quarter ended | 2022 | 2022 | 2021 | 2021 | 2021 | 2021 | 2020 | 2020 | ||||||||||||||||
Financial Information: | ||||||||||||||||||||||||
Revenue | $ | 33,310 | $ | 32,255 | $ | 31,962 | $ | 29,285 | $ | 27,399 | $ | 28,416 | $ | 31,202 | $ | 33,447 | ||||||||
Gross Profit | $ | 20,390 | $ | 19,743 | $ | 19,662 | $ | 18,381 | $ | 17,625 | $ | 17,742 | $ | 19,178 | $ | 19,453 | ||||||||
Gross Profit % | 61 | % | 61 | % | 62 | % | 63 | % | 64 | % | 62 | % | 61 | % | 58 | % | ||||||||
Net Income | $ | 967 | $ | 1,762 | $ | 4,087 | $ | 1,789 | $ | 1,566 | $ | 1,684 | $ | 5,071 | $ | 2,804 | ||||||||
Cash (As of) | $ | 21,922 | $ | 29,248 | $ | 28,408 | $ | 26,867 | $ | 31,151 | $ | 31,097 | $ | 30,981 | $ | 32,396 | ||||||||
Total Assets (As of) | $ | 115,904 | $ | 119,007 | $ | 117,962 | $ | 115,486 | $ | 111,014 | $ | 113,001 | $ | 112,560 | $ | 113,969 | ||||||||
Adjusted EBITDA(1) | $ | 6,458 | $ | 7,273 | $ | 9,549 | $ | 7,419 | $ | 6,847 | $ | 5,468 | $ | 9,458 | $ | 7,720 | ||||||||
Operational Information: | ||||||||||||||||||||||||
Vent Patients(2) | 8,837 | 8,434 | 8,405 | 8,200 | 8,103 | 7,733 | 7,892 | 7,788 |
(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.
Source:
2022 GlobeNewswire, Inc., source