Viemed Healthcare Announces 2021 Financial Results

LAFAYETTE, La., March 07, 2022 (GLOBE NEWSWIRE) -- Viemed Healthcare, Inc. (the “Company” or “Viemed”) (NASDAQ:VMD and TSX: VMD.TO), a home medical equipment supplier and the nation’s largest independent provider of ventilation that provides post-acute respiratory care services, today reported its financial results for the three months and year ended December 31, 2021.

Operational highlights (all dollar amounts are USD):

• Net revenues attributable to the Company's core business for the quarter ended December 31, 2021 were $29.0 million, a new Company record and an increase of 11% over the quarter ended December 31, 2020. Net revenues attributable to the Company's core business for the quarter ended December 31, 2021 were up approximately 4% over the quarter ended September 30, 2021. Total net revenues for the current quarter were $32.0 million and included $3.0 million of net revenues for contact and vaccine tracing services and product sales related to the COVID-19 pandemic. Net revenues for the year ended December 31, 2021 were $117.1 million for the Company, including $8.6 million of COVID-19 related sales and services.
• Net income for the quarter ended December 31, 2021 totaled approximately $4.1 million, compared to $5.1 million for the quarter ended December 31, 2020. Net income for the year ended December 31, 2021 totaled approximately $9.1 million, compared to $31.5 million for the year ended December 31, 2020. In the prior year, net income included an income tax benefit of $5.2 million and $34.4 million of COVID-19 response sales and services during the height of the COVID-19 pandemic.
• Adjusted EBITDA for the quarter ended December 31, 2021 totaled approximately $9.5 million. Adjusted EBITDA for the year ended December 31, 2021 totaled approximately $29.3 million. 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 $28.4 million at December 31, 2021 ($31.0 million at December 31, 2020) and an overall working capital balance of $29.5 million ($24.2 million at December 31, 2020). Total long-term debt as of December 31, 2021 was $4.3 million.
• The Company expects to generate net revenues attributable to its core business of approximately $29.2 million to $30.2 million during the first quarter of 2022. In addition to its core business, the Company is continuing to pursue additional revenues related to the COVID-19 pandemic and estimates first quarter 2022 revenues of approximately $1.4 million to $1.8 million related to the COVID-19 pandemic. Total revenues for the first quarter of 2022 are estimated to be approximately $30.6 million to $32.0 million.

“We believe organic growth trends are emerging during the periods following COVID surges," said Casey Hoyt, Viemed's CEO. "Following the Delta variant surge during the third quarter, our sales and clinical teams returned to the field in the fourth quarter eager to serve the strong demand in the market. As a result, we finished the quarter with record setting core revenues and active patient count. As we look forward to the upcoming year, we are excited to meet this demand with the innovative service offerings, which we invested in during the pandemic.”

Conference Call Details

The Company will host a conference call to discuss fourth quarter results on Tuesday, March 8, 2022 at 11:00 a.m. ET.

Interested parties may participate in the call by dialing:

877-407-6176 (US Toll-Free)
201-689-8451 (International)

Live Audio Webcast: https://themediaframe.com/mediaframe/webcast.html?webcastid=lPj8NrhP

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 first 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; reductions in reimbursement rates and audits of reimbursement claims by various governmental and private payor entities; dependence on few payors; possible new drug discoveries; dependence on key suppliers and the recall of certain Royal Philips BiPAP and CPAP devices and ventilators that we distribute and sell; 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 a smaller reporting 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.
CONSOLIDATED BALANCE SHEETS
(Expressed in thousands of U.S. Dollars, except share amounts)

		At December 31, 2021				At December 31, 2020
ASSETS
Current assets
Cash and cash equivalents		$	28,408			$	30,981
Accounts receivable, net of allowance for doubtful accounts of $7,031 and $9,013 at December 31, 2021 and December 31, 2020, respectively			12,823				12,373
Inventory, net of inventory reserve of $1,418 and $1,353 at December 31, 2021 and December 31, 2020, respectively			2,457				2,310
Income tax receivable			1,893				—
Prepaid expenses and other assets			1,729				1,511
Total current assets		$	47,310			$	47,175
Long-term assets
Property and equipment, net			62,846				55,056
Equity investments			2,157				733
Deferred tax asset			4,787				8,733
Other long-term assets			862				863
Total long-term assets			70,652				65,385
TOTAL ASSETS		$	117,962			$	112,560
LIABILITIES
Current liabilities
Trade payables		$	3,239			$	2,096
Deferred revenue			3,753				3,409
Income taxes payable			—				340
Accrued liabilities			8,875				12,595
Current portion of lease liabilities			464				2,741
Current portion of long-term debt			1,480				1,836
Total current liabilities		$	17,811			$	23,017
Long-term liabilities
Accrued liabilities			757				1,292
Long-term lease liabilities			268				762
Long-term debt			4,306				5,796
Total long-term liabilities		$	5,331			$	7,850
TOTAL LIABILITIES		$	23,142			$	30,867
Commitments and Contingencies			—				—
SHAREHOLDERS' EQUITY
Common stock - No par value: unlimited authorized; 39,640,388 and 39,185,182 issued and outstanding as of December 31, 2021 and December 31, 2020, respectively			14,014				9,181
Additional paid-in capital			7,749				7,320
Accumulated other comprehensive loss			(278	)			(451	)
Retained earnings			73,335				65,643
TOTAL SHAREHOLDERS' EQUITY		$	94,820			$	81,693
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY		$	117,962			$	112,560

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

	Three Months Ended December 31,								Year Ended December 31,
		2021				2020				2021				2020
Revenue	$	31,962			$	31,202			$	117,062			$	131,309
Cost of revenue		12,300				12,024				43,652				51,198
Gross profit	$	19,662			$	19,178			$	73,410			$	80,111
Operating expenses
Selling, general and administrative		14,240				12,274				54,893				52,829
Research and development		612				395				2,110				1,083
Stock-based compensation		1,305				1,301				5,150				4,882
Depreciation		233				204				851				816
Loss (gain) on disposal of property and equipment		144				96				448				(2,328	)
Other expense (income)		(1,537	)			(359	)			(1,622	)			(3,952	)
Income from operations	$	4,665			$	5,267			$	11,580			$	26,781
Non-operating income and expenses
Income from equity method investments		(459	)			(55	)			(1,241	)			(91	)
Interest expense, net of interest income		69				100				318				509
Net income before taxes		5,055				5,222				12,503				26,363
Provision (benefit) for income taxes		968				151				3,377				(5,167	)
Net income	$	4,087			$	5,071			$	9,126			$	31,530
Other comprehensive income (loss)
Change in unrealized gain/loss on derivative instruments, net of tax		52				27				173				(294	)
Other comprehensive income (loss)	$	52			$	27			$	173			$	(294	)
Comprehensive income	$	4,139			$	5,098			$	9,299			$	31,236
Net income per share
Basic	$	0.10			$	0.13			$	0.23			$	0.81
Diluted	$	0.10			$	0.12			$	0.22			$	0.78
Weighted average number of common shares outstanding:
Basic		39,636,606				39,161,215				39,491,117				38,743,516
Diluted		40,529,206				41,043,419				40,680,947				40,525,737

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

		Year Ended December 31,
			2021				2020
Cash flows from operating activities
Net income		$	9,126			$	31,530
Adjustments for:
Depreciation			11,312				9,582
Change in allowance for doubtful accounts			6,895				9,116
Change in inventory reserve			65				1,353
Share-based compensation			5,150				4,882
Distributions of earnings received from equity method investments			416				—
Income from equity method investments			(1,241	)			(91	)
Loss (gain) on disposal of property and equipment			448				(2,328	)
Deferred income tax expense (benefit)			3,884				(8,733	)
Net change in working capital
Increase in accounts receivable			(7,345	)			(9,955	)
Increase in inventory			(212	)			(2,303	)
Increase in prepaid expenses and other assets			(226	)			(812	)
Increase in trade payables			133				213
Increase in deferred revenue			344				94
(Decrease) increase in accrued liabilities			(4,022	)			2,308
Change in income tax payable/receivable			(2,233	)			254
Net cash provided by operating activities		$	22,494			$	35,110
Cash flows from investing activities
Purchase of property and equipment			(19,743	)			(13,044	)
Investment in equity investments			(599	)			(629	)
Proceeds from sale of property and equipment			596				5,258
Net cash used in investing activities		$	(19,746	)		$	(8,415	)
Cash flows from financing activities
Proceeds from exercise of options			112				1,876
Principal payments on notes payable			(152	)			(142	)
Principal payments on term note			(1,683	)			(1,605	)
Shares redeemed to pay income tax			(1,434	)			—
Repayments of lease liabilities			(2,164	)			(9,198	)
Net cash used in financing activities		$	(5,321	)		$	(9,069	)
Net (decrease) increase in cash and cash equivalents			(2,573	)			17,626
Cash and cash equivalents at beginning of year			30,981				13,355
Cash and cash equivalents at end of period		$	28,408			$	30,981
Supplemental disclosures of cash flow information
Cash paid during the period for interest		$	351			$	559
Cash paid during the period for income taxes, net of refunds received		$	1,768			$	3,311
Supplemental disclosures of non-cash transactions
Net non-cash changes to finance leases balances		$	48			$	3,002
Net non-cash changes to operating lease balances		$	712			$	57

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 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	December 31, 2021		September 30, 2021		June 30, 2021		March 31, 2021			December 31, 2020		September 30, 2020		June 30, 2020			March 31, 2020
Net Income	$	4,087	$	1,789	$	1,566	$	1,684		$	5,071	$	2,804	$	19,412		$	4,243
Add back:
Depreciation		3,120		2,867		2,716		2,609			2,835		2,425		2,190			2,130
Interest expense		69		75		83		91			100		116		135			158
Stock-based compensation		1,305		1,302		1,236		1,307			1,301		1,234		1,196			1,151
Income tax expense (benefit)		968		1,386		1,246		(223	)		151		1,141		(6,646	)		187
Adjusted EBITDA	$	9,549	$	7,419	$	6,847	$	5,468		$	9,458	$	7,720	$	16,287		$	7,869

		Year Ended December 31, 2021
Net Income		$	9,126
Add back:
Depreciation			11,312
Interest expense			318
Stock-based compensation			5,150
Income tax expense (benefit)			3,377
Adjusted EBITDA		$	29,283

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	December 31, 2021			September 30, 2021			June 30, 2021			March 31, 2021			December 31, 2020			September 30, 2020			June 30, 2020			March 31, 2020
Financial Information:
Revenue	$	31,962		$	29,285		$	27,399		$	28,416		$	31,202		$	33,447		$	42,854		$	23,806
Gross Profit		19,662			18,381			17,625			17,742			19,178			19,453			25,927			15,553
Gross Profit %		62	%		63	%		64	%		62	%		61	%		58	%		61	%		65	%
Net Income		4,087			1,789			1,566			1,684			5,071			2,804			19,412			4,243
Cash and Cash Equivalents (As of)		28,408			26,867			31,151			31,097			30,981			32,396			29,707			8,409
Total Assets (As of)		117,962			115,486			111,014			113,001			112,560			113,969			112,178			86,801
Adjusted EBITDA(1)		9,549			7,419			6,847			5,468			9,458			7,720			16,287			7,869
Operational Information:
Vent Patients(2)		8,405			8,200			8,103			7,733			7,892			7,788			7,705			7,965

⁽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.