Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2024 | Apr. 26, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-38973 | |
Entity Registrant Name | Viemed Healthcare, Inc. | |
Entity Incorporation, State or Country Code | Z4 | |
Entity Address, Address Line One | 625 E. Kaliste Saloom Rd. | |
Entity Address, City or Town | Lafayette | |
Entity Address, State or Province | LA | |
Entity Address, Postal Zip Code | 70508 | |
City Area Code | 337 | |
Local Phone Number | 504-3802 | |
Title of 12(b) Security | Common Shares, no par value | |
Trading Symbol | VMD | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 38,820,766 | |
Entity Central Index Key | 0001729149 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Document Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Current assets | ||
Cash and cash equivalents | $ 7,309 | $ 12,839 |
Accounts receivable, net | 24,477 | 18,451 |
Inventory | 4,349 | 4,628 |
Prepaid expenses and other assets | 2,483 | 2,449 |
Total current assets | 38,618 | 38,367 |
Long-term assets | ||
Property and equipment, net | 73,511 | 73,579 |
Finance lease right-of-use assets | 297 | 401 |
Operating lease right-of-use assets | 2,733 | 2,872 |
Equity investments | 1,698 | 1,680 |
Debt investment | 2,274 | 2,219 |
Deferred tax asset | 4,558 | 4,558 |
Identifiable intangibles, net | 534 | 567 |
Goodwill | 29,765 | 29,765 |
Other long-term assets | 887 | 887 |
Total long-term assets | 116,257 | 116,528 |
TOTAL ASSETS | 154,875 | 154,895 |
Current liabilities | ||
Trade payables | 5,800 | 4,180 |
Deferred revenue | 6,092 | 6,207 |
Income taxes payable | 2,675 | 2,153 |
Accrued liabilities | 14,057 | 17,578 |
Finance lease liabilities, current portion | 199 | 256 |
Operating lease liabilities, current portion | 698 | 678 |
Current portion of long-term debt | 596 | 1,072 |
Total current liabilities | 30,117 | 32,124 |
Long-term liabilities | ||
Accrued liabilities | 447 | 558 |
Finance lease liabilities, less current portion | 95 | 132 |
Operating lease liabilities, less current portion | 2,037 | 2,184 |
Long-term debt | 5,906 | 6,002 |
Total long-term liabilities | 8,485 | 8,876 |
TOTAL LIABILITIES | 38,602 | 41,000 |
Commitments and Contingencies | 0 | 0 |
SHAREHOLDERS' EQUITY | ||
Common stock - No par value: unlimited authorized; 38,816,766 and 38,506,161 issued and outstanding as of March 31, 2024 and December 31, 2023, respectively | 21,842 | 18,702 |
Additional paid-in capital | 14,294 | 15,698 |
Retained earnings | 80,137 | 79,495 |
TOTAL SHAREHOLDERS' EQUITY | 116,273 | 113,895 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 154,875 | $ 154,895 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares | Mar. 31, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Issued (in shares) | 38,816,766 | 38,506,161 |
Outstanding (in shares) | 38,816,766 | 38,506,161 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Statement [Abstract] | ||
Revenue | $ 50,593 | $ 39,556 |
Cost of revenue | 20,791 | 15,552 |
Gross profit | 29,802 | 24,004 |
Operating expenses | ||
Selling, general and administrative | 24,814 | 19,762 |
Research and development | 750 | 780 |
Stock-based compensation | 1,432 | 1,391 |
Depreciation and amortization | 415 | 240 |
Loss (gain) on disposal of property and equipment | 213 | (22) |
Other income, net | (26) | (81) |
Income from operations | 2,204 | 1,934 |
Non-operating income and expenses | ||
Income from equity method investments | (67) | (35) |
Interest expense (income), net | 150 | (49) |
Net income before taxes | 2,121 | 2,018 |
Provision for income taxes | 518 | 501 |
Net income | 1,603 | 1,517 |
Other comprehensive income | 0 | 0 |
Comprehensive income | $ 1,603 | $ 1,517 |
Net income per share | ||
Basic (in dollars per share) | $ 0.04 | $ 0.04 |
Diluted (in dollars per share) | $ 0.04 | $ 0.04 |
Weighted average number of common shares outstanding: | ||
Basic (in shares) | 38,717,123 | 38,156,777 |
Diluted (in shares) | 40,580,634 | 40,016,693 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional paid-in capital | Retained earnings |
Shareholders' equity, beginning balance (in shares) at Dec. 31, 2022 | 38,049,739 | |||
Shareholders' equity, beginning balance at Dec. 31, 2022 | $ 97,094 | $ 15,123 | $ 12,125 | $ 69,846 |
Increase (Decrease) in Stockholders' Equity | ||||
Stock-based compensation - options | 348 | 348 | ||
Stock-based compensation - restricted stock | 1,043 | 1,043 | ||
Exercise of options (in shares) | 108,370 | |||
Exercise of options | 544 | $ 544 | ||
Shares issued for vesting of restricted stock units (in shares) | 183,036 | |||
Shares issued for vesting of restricted stock units | 0 | $ 1,429 | (1,429) | |
Shares redeemed to pay income tax (in shares) | (64,756) | |||
Shares redeemed to pay income tax | (505) | (505) | ||
Net income | 1,517 | 1,517 | ||
Shareholders' equity, ending balance (in shares) at Mar. 31, 2023 | 38,276,389 | |||
Shareholders' equity, ending balance at Mar. 31, 2023 | $ 100,041 | $ 17,096 | 12,087 | 70,858 |
Shareholders' equity, beginning balance (in shares) at Dec. 31, 2023 | 38,506,161 | 38,506,161 | ||
Shareholders' equity, beginning balance at Dec. 31, 2023 | $ 113,895 | $ 18,702 | 15,698 | 79,495 |
Increase (Decrease) in Stockholders' Equity | ||||
Stock-based compensation - options | 111 | 111 | ||
Stock-based compensation - restricted stock | $ 1,321 | 1,321 | ||
Exercise of options (in shares) | 60,000 | 60,130 | ||
Exercise of options | $ 304 | $ 304 | ||
Shares issued for vesting of restricted stock units (in shares) | 378,837 | |||
Shares issued for vesting of restricted stock units | 0 | $ 2,836 | (2,836) | |
Shares redeemed to pay income tax (in shares) | (128,362) | |||
Shares redeemed to pay income tax | (961) | (961) | ||
Net income | $ 1,603 | 1,603 | ||
Shareholders' equity, ending balance (in shares) at Mar. 31, 2024 | 38,816,766 | 38,816,766 | ||
Shareholders' equity, ending balance at Mar. 31, 2024 | $ 116,273 | $ 21,842 | $ 14,294 | $ 80,137 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash flows from operating activities | ||
Net income | $ 1,603 | $ 1,517 |
Adjustments for: | ||
Depreciation and amortization | 6,285 | 4,762 |
Stock-based compensation expense | 1,432 | 1,391 |
Distributions of earnings received from equity method investments | 49 | 196 |
Income from equity method investments | (67) | (35) |
Income from debt investment | (55) | (57) |
Loss (gain) on disposal of property and equipment | 213 | (22) |
Deferred income tax benefit | 0 | (725) |
Changes in working capital: | ||
Accounts receivable, net | (6,026) | (941) |
Inventory | 279 | 127 |
Prepaid expenses and other assets | 99 | 449 |
Trade payables | 588 | 641 |
Deferred revenue | (115) | 74 |
Accrued liabilities | (3,632) | 1,846 |
Income tax payable/receivable | 522 | 1,273 |
Net cash provided by operating activities | 1,175 | 10,496 |
Cash flows from investing activities | ||
Purchase of property and equipment | (6,006) | (4,681) |
Proceeds from sale of property and equipment | 641 | 776 |
Net cash used in investing activities | (5,365) | (3,905) |
Cash flows from financing activities | ||
Proceeds from exercise of options | 304 | 544 |
Principal payments on term notes | (589) | 0 |
Shares redeemed to pay income tax | (961) | (505) |
Repayments of finance lease liabilities | (94) | 0 |
Net cash provided by (used in) financing activities | (1,340) | 39 |
Net increase (decrease) in cash and cash equivalents | (5,530) | 6,630 |
Cash and cash equivalents at beginning of year | 12,839 | 16,914 |
Cash and cash equivalents at end of period | 7,309 | 23,544 |
Supplemental disclosures of cash flow information | ||
Cash paid during the period for interest | 224 | 42 |
Cash received during the period for income tax refunds | $ 0 | $ (40) |
Nature of Business and Operatio
Nature of Business and Operations | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business and Operations | Nature of Business and Operations Viemed Healthcare, Inc. (the "Company"), through its subsidiaries, is a provider of home medical equipment ("HME") and post-acute respiratory healthcare services in the United States. The Company’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. The Company serves patients in all 50 states of the United States. The Company was incorporated under the Business Corporations Act (British Columbia) on December 14, 2016. The Company's registered and records office is located at Suite 2800, Park Place, 666 Burrard Street, Vancouver, British Columbia V6C 2Z7 and its corporate office is located at 625 E. Kaliste Saloom Road, Lafayette, Louisiana 70508. The Company no longer qualifies as a “smaller reporting company” and is required to comply with the larger company disclosure obligations (subject to certain exemptions and relief from various reporting requirements that are applicable to emerging growth companies) beginning in this Quarterly Report on Form 10-Q. The Company is an "emerging growth company," as defined in the Jumpstart Our Business Startups Act (the "JOBS Act"), and as such, has elected to comply with certain reduced U.S. public company reporting requirements. The Company’s common shares are traded on the Nasdaq Capital Market under the symbol "VMD". |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Principles of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC"). Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. The accompanying condensed consolidated financial statements are unaudited, but reflect all adjustments consisting of normal recurring accruals, which, in the opinion of management, are necessary to present fairly the Company's Condensed Consolidated Balance Sheets, Condensed Consolidated Statements of Income and Comprehensive Income, Condensed Consolidated Statements of Changes in Shareholders’ Equity and Condensed Consolidated Statements of Cash Flows for the interim periods presented. The Company's fiscal year ends on December 31. The Condensed Consolidated Balance Sheet as of December 31, 2023 was derived from audited consolidated financial statements but does not include all disclosures required by GAAP. These condensed consolidated financial statements should be read in conjunction with the annual consolidated financial statements and the notes thereto and the report of the Company's independent registered public accounting firm included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. The nature of the Company's business is such that the results of any interim period may not be indicative of the results to be expected for the entire year. Basis of Consolidation These consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany transactions have been eliminated. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Management bases these estimates and assumptions upon historical experience, existing and known circumstances, authoritative accounting pronouncements and other factors that management believes to be reasonable. Significant areas requiring the use of management estimates relate to revenue recognition, accounts receivable, income tax provisions, the fair value of financial instruments, and goodwill. Actual results could differ from these estimates. Segment Reporting The Company’s chief operating decision-makers ("CODMs") are its Chief Executive Officer and Chief Operating Officer, who make resource allocation decisions and assess performance based on financial information presented on an aggregate basis. There are no segment managers who are held accountable by the chief operating decision-makers, or anyone else, for any planning, strategy and key decision-making regarding operations. The corporate office is responsible for contract negotiation with vendors and payors, corporate compliance with healthcare laws and regulations, and revenue cycle management, among other corporate supporting functions. Accordingly, the Company has a single reportable segment and operating segment structure based on ASC 280, Segment Reporting . Accounts Receivable Accounts receivable and net revenues are based on contractually agreed-upon rates for services provided, reduced by estimated adjustments, including variable consideration for implicit price concessions for sales revenue. Inherent in these estimates is the risk that they will have to be revised or updated as additional information becomes available. The complexity of third-party billing arrangements and laws and regulations governing Medicare and Medicaid may result in adjustments to amounts originally recorded. The Company performs a periodic analysis to review the valuation of accounts receivable and collectability of outstanding balances. These estimates are determined utilizing historical realization data under a portfolio approach, which is then assessed by management to evaluate whether adjustments should be made based on accounts receivable aging trends, other operating trends, and relevant business conditions such as governmental and managed care payor claims processing procedures. The Company records a reserve for estimated probable losses as part of net rental revenue adjustments in order to report rental revenue at an expected collectable amount based on the total portfolio of operating lease receivables for which collectability has been deemed probable. The accounts receivable are presented on the Condensed Consolidated Balance Sheets net of the adjustments. Receivables are considered past due when not collected by established due dates. Specific patient balances are written off after collection efforts have been followed and the account has been determined to be uncollectible. Revisions in reserve estimates are recorded as an adjustment to net revenue in the period of revision. The estimates of the allowance for uncollectible accounts was $14.4 million and $11.1 million as of March 31, 2024 and December 31, 2023, respectively. Included in accounts receivable at March 31, 2024 are amounts due from Medicare and Medicaid, representing 25% and 2% , respectively, and 27% combined, of total outstanding receivables. As of December 31, 2023, 32% of total outstanding receivables were amounts due from Medicare and Medicaid. Inventory Inventory represents non-serialized supplies that consist of equipment parts, consumables, and associated product supplies and is expensed at the time of sale or use. The Company values inventory at the lower of cost or net realizable value. Obsolete and unserviceable inventories are valued at estimated net realizable value. Property and Equipment Property and equipment is presented on the Condensed Consolidated Balance Sheets at historic cost less accumulated depreciation. Major renewals and improvements that extend the useful life of assets are capitalized to the respective property accounts, while maintenance and repairs, which do not extend the useful life of the respective assets, are expensed as incurred. Management has estimated the useful lives of equipment leased to customers. Depreciation is computed using the straight-line method over the estimated useful lives of the respective assets. Property and equipment are depreciated on a straight-line basis over their estimated useful lives. Depreciation of medical equipment commences at the date of service, which represents the date that the asset has been delivered to a patient and is put in use and continues through the useful life of the asset. Property and equipment with definite useful lives are tested for impairment whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. Equity Investments Equity investments on the Condensed Consolidated Balance Sheets are comprised of an investment accounted for under the equity method and equity investments without readily determinable fair values accounted for under the measurement alternative described in ASC 321-10-35-2. The following table details the Company’s equity investments: March 31, 2024 December 31, 2023 Equity method investments $ 338 $ 320 Other equity investments 1,360 1,360 Balance, end of period $ 1,698 $ 1,680 The Company's equity method investments include a 49% equity interest in Solvet Services, LLC, an entity which provides health care support services to state and federal governments. Investments accounted for under the equity method are investments in unconsolidated entities over whose operating and financial policies the Company has the ability to exercise significant influence but not control. Equity method investments are initially measured at cost in the Condensed Consolidated Balance Sheets with any subsequent adjustments made to the carrying amount of the investment for the Company’s proportionate share of income or loss. Distributions received from the investee reduce the Company’s carrying value of the investment. The Company has recognized its share of income or loss on the gain (loss) from equity method investments within non-operating expenses in the Condensed Consolidated Statements of Income and Comprehensive Income. Equity method investments are evaluated for impairment whenever events or changes in circumstances indicate that the carrying value of the investments may exceed the fair value. No events or changes have occurred as of March 31, 2024 that would impair the carrying value of equity method investments. Other equity investments are investments without a readily determinable fair value which do not qualify for the practical expedient in ASC 820. For these investments, the Company has elected the measurement alternative which measures the investment at cost, less any impairment. ASU 2019-04 clarifies that if an entity identifies observable price changes in orderly transactions for the identical or a similar investment of the same issuer, it must measure its equity investment at fair value in accordance with ASC 820 as of the date that the observable transaction occurred. The Company was not aware of any impairment or observable price change adjustments that needed to be made as of March 31, 2024 on its investments in equity securities without a readily determinable fair value. Debt Investment The Company's debt investment is a variable rate secured convertible note issued by Healthcare DX, Inc. (d/b/a ModoHealth) on December 21, 2022, classified as an available-for-sale debt instrument. Accrued interest is due upon the 18 month maturity of the note and is included in the amortized cost basis at each reporting period. At each financial statement date until a conversion event, the debt instrument is required to be remeasured at fair value. Changes in unrealized gains and losses are included in accumulated other comprehensive income, net of tax effect, until realized. Intangible Assets Intangible assets include trade names and other identifiable intangible assets, which are amortized on a straight-line basis over a period of their expected useful lives, generally five years. Comprehensive Income Comprehensive income reflects the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. The Company's comprehensive income represents net income adjusted for unrealized gains and losses, net of tax. Accumulated other comprehensive loss is presented on the accompanying Condensed Consolidated Balance Sheets as a component of shareholders' equity. Revenue Recognition Revenues are principally derived from the rental and sale of HME products and services to patients. Rental revenues Revenue generated from equipment that is rented to patients is recognized over the non-cancellable rental period (typically one month) and commences on delivery of the equipment to the patients. The lease agreements are evaluated at lease commencement and the start of each monthly renewal period to determine if it is reasonably certain that the monthly renewal or purchase options would be exercised. The exercise of monthly renewal or purchase options by a patient has historically not been reasonably certain to occur at lease commencement or subsequent monthly renewal. Revenues are recorded at amounts estimated to be received under reimbursement arrangements with third-party payors, including private insurers, prepaid health plans, Medicare, Medicaid and patients. Rental revenue, less estimated adjustments, is recognized as earned on a straight-line basis over the non-cancellable lease term. Rental of patient equipment is billed on a monthly basis beginning on the date the equipment is delivered. Since deliveries can occur on any day during a month, the amount of billings that apply to the next month are deferred. The Company's lease agreements generally contain lease components and non-lease components, which primarily relate to supplies. The Company has made the accounting policy election to account for a lease component of an agreement and its associated non-lease components as a single lease component based on the Company's assessment of classification of the lease based on the consideration in the contract for the combined component. Sales and Services revenues Revenue related to sales of equipment and supplies is recognized on the date of delivery as this is when control of the promised goods is transferred to patients and is presented net of applicable sales taxes. Revenues are recorded only to the extent it is probable that a significant reversal will not occur in the future as amounts may include implicit price concessions under reimbursement arrangements with third-party payors, including private insurers, prepaid health plans, Medicare, Medicaid and patients. The sales transaction price is determined based on contractually agreed-upon rates, adjusted for estimates of variable consideration. The expected value method is used in determining the variable consideration as part of determining the sales transaction price using historical reimbursement experience, historical sales returns, and other operating trends. Payment terms and conditions vary by contract. The timing of revenue recognition, billing, and cash collection generally results in billed and unbilled accounts receivable. Revenues associated with external staffing services are accrued on an hourly basis and are recorded based on the determination of whether the Company is acting as a principal or an agent. In arrangements in which the Company manages customers' supplemental workforce needs utilizing its own network of healthcare professionals, the Company is determined to be a principal and includes the contractual gross billings in revenues with a corresponding increase to cost of revenues for worksite employee payroll costs associated with these services. Alternatively, when the Company acts as agent in the performance of workforce management, revenue is recorded based on contractually agreed upon fees or commissions with no associated cost of revenues. The revenues from each major source are summarized in the following table: Three Months Ended March 31, 2024 2023 Revenue from rentals Ventilator rentals, non-invasive and invasive $ 29,187 $ 25,147 Other home medical equipment rentals 10,934 6,906 Revenue from sales and services Equipment and supply sales 6,138 4,764 Service revenues 4,334 2,739 Total revenues $ 50,593 $ 39,556 Revenues from Medicare as percentages of the Company's total revenue for the three months ended March 31, 2024 and 2023 were 43% and 45%, respectively. Stock-Based Compensation The Company accounts for its stock-based compensation in accordance with ASC 718 , "Compensation—Stock Compensation" , which establishes accounting for share-based awards exchanged for employee services and requires companies to expense the estimated fair value of these awards over the requisite employee service period. Stock–based compensation costs for stock options are determined at the grant date using the Black-Scholes option pricing model. Stock-based compensation costs for restricted stock units ("RSUs") are determined at the grant date based on the closing stock price. The expense of such stock-based compensation awards is recognized using the graded vesting attribution method over the vesting period and the offsetting credit is recorded as an increase in additional paid-in capital. Forfeitures are recorded as incurred. Any excess tax benefit or deficiency is recognized as a component of income taxes and within operating cash flows upon vesting of the share-based award. For the Company’s phantom share units settled in cash, the Company computes the fair value of the phantom share units using the closing price of the Company's stock at the end of each period and records a liability based on the percentage of requisite service. Income Taxes The Company is subject to income taxes in numerous U.S. jurisdictions. Significant judgment is required in determining the provision for income taxes. The Company's income tax provisions reflect management’s interpretation of country and state tax laws. There are many transactions and calculations for which the ultimate tax determination is uncertain during the ordinary course of business and may remain uncertain for several years after their occurrence. The Company recognizes assets and liabilities for taxation when it is probable that the Company will receive refunds from or pay taxes to the relevant tax authority. Where the final determination of tax assets and liabilities is different from the amounts that were initially recorded, such differences will impact the current and deferred income taxes provision in the period in which such a determination is made. Changes in tax law or changes in the way tax law is interpreted may also impact the Company's effective tax rate as well as the Company's business and operations. Deferred income tax assets and liabilities are recognized for the future income tax consequences attributable to temporary differences between the financial statement carrying value of assets and liabilities and their respective income tax bases. Deferred income tax assets or liabilities are measured using enacted income tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be settled. The calculation of current and deferred income taxes requires management to make estimates and assumptions and to exercise a certain amount of judgment concerning the carrying value of assets and liabilities. The current and deferred income tax assets and liabilities are also impacted by expectations about future operating results and the timing of reversal of temporary differences as well as possible audits of tax filings by regulatory agencies. Changes or differences in these estimates or assumptions may result in changes to the current and deferred tax assets and liabilities on the Condensed Consolidated Balance Sheets and a charge to or recovery of income tax expense. Deferred tax is recognized on any temporary differences between the carrying amounts of assets and liabilities in the consolidated financial statements and the corresponding tax bases used in the computation of taxable earnings. The effect of a change in the enacted tax rates is recognized in net earnings and comprehensive income or in equity depending on the item to which the adjustment relates. At each reporting period end, deferred tax assets are evaluated for recoverability based on whether it is more likely than not that sufficient taxable earnings will be available to allow all or part of the asset to be recovered. Business Combinations The Company applies the acquisition method of accounting for business acquisitions. The results of operations of the business acquired by the Company are included as of the respective acquisition date. The acquisition-date fair value of the consideration transferred, including the fair value of any contingent consideration, is allocated to the underlying assets acquired and liabilities assumed based upon their estimated fair values at the date of acquisition. To the extent the acquisition-date fair value of the consideration transferred exceeds the fair value of the identifiable tangible and intangible assets acquired and liabilities assumed, such excess is allocated to goodwill. Patient relationships, medical records and patient lists are not reported as separate intangible assets due to the regulatory requirements and lack of contractual agreements but are part of goodwill. Customer related relationships are not reported as separate intangible assets but are part of goodwill as authorizing physicians are under no obligation to refer the Company’s services to their patients, who are free to change physicians and service providers at any time. The Company may adjust the preliminary purchase price allocation, as necessary, as it obtains more information regarding asset valuations and liabilities assumed that existed but were not available at the acquisition date, which is generally up to one year after the acquisition closing date. Acquisition related costs are recognized separately from the business combination and are expensed as incurred. Impairment of Goodwill and Long-Lived Assets Goodwill resulting from business combinations is not amortized, rather, it is assessed for impairment annually and upon the occurrence of a triggering event or change in circumstances indicating a possible impairment. Such triggering events potentially warranting an annual or interim goodwill impairment assessment include, among other factors, declines in historical or projected revenue, operating income or cash flows, and sustained decreases in the Company’s stock price or market capitalization. Such changes in circumstance can include, among others, changes in the legal environment, reimbursement environment, operating performance, and/or future prospects. The Company performs its annual impairment assessment of goodwill during the fourth quarter of each year. The impairment assessment can be performed on either a quantitative or qualitative basis. The Company first assesses qualitative factors to determine whether it is necessary to perform a quantitative goodwill impairment analysis. If determined necessary, the Company applies the quantitative impairment test to identify and measure the amount of impairment, if any. Fair value determinations require considerable judgment and are sensitive to changes in underlying assumptions and factors, such as estimates of a reporting unit's fair value and judgment about impairment triggering events. As a result, there can be no assurance that the estimates and assumptions made for purposes of the annual or interim goodwill impairment test will prove to be accurate predictions of the future. For the year ended December 31, 2023, the Company performed an assessment of qualitative factors and determined that no events or circumstances existed that would lead to a determination that it is more likely than not that the fair value of indefinite-lived assets were less than the carrying amount. As such, a quantitative analysis was not required to be performed and the Company did not record any goodwill impairment charges. The Company follows ASC Topic 360, which requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that the asset group’s carrying amounts may not be recoverable. In performing the review for recoverability, if future undiscounted cash flows (excluding interest charges) from the use and ultimate disposition of the assets are less than their carrying values, an impairment loss represented by the difference between its fair value and carrying value, is recognized. When properties are classified as held for sale, they are recorded at the lower of the carrying amount or the expected sales price less costs to sell. There were no impairment charges recognized during the three months ended March 31, 2024 and March 31, 2023. Net Income per Share Attributable to Common Stockholders Basic net income per common share is computed based on the weighted average number of shares of common stock outstanding during the period. Diluted net income per common share is computed based on the weighted average number of shares of common stock plus the effect of dilutive stock-based awards outstanding during the period using the treasury stock method. Dilutive stock-based awards include outstanding common stock options and time-based RSUs. See Note 11 for earnings per share computations. Recently adopted accounting pronouncements In September 2022, the FASB issued ASU No. 2022-04, Liabilities — Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations, which requires entities that use supplier finance programs in connection with the purchase of goods and services to disclose the key terms of the programs and information about their obligations that are outstanding at the end of the reporting period. The amendments in this update are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, except for the amendment on rollforward information, which is effective for fiscal years beginning after December 15, 2023. The Company adopted this standard during the year ended December 31, 2023, which did not have a material impact on its consolidated financial statements and related disclosures. Recently issued accounting pronouncements The Company is an “emerging growth company” as defined by the JOBS Act. The JOBS Act provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act of 1933, as amended, for complying with new or revised accounting standards. In other words, an emerging growth company can selectively delay the adoption of all accounting standards until those standards would otherwise apply to private companies. The Company has elected to utilize this exemption and, as a result, the Company's condensed consolidated financial statements may not be comparable to the financial statements of issuers that are required to comply with the effective dates for new or revised accounting standards that are applicable to public companies. To date, however, the Company has not delayed the adoption of any accounting standards. Section 107 of the JOBS Act provides that the Company can elect to opt out of the extended transition period at any time, which election is irrevocable. In December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which is intended to improve the transparency of income tax disclosures by requiring consistent categories and greater disaggregation of information in the effective tax rate reconciliation and income taxes paid by jurisdiction. The ASU is effective for public business entities' annual periods beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact of adopting this guidance on its consolidated financial statements. |
Business Combinations
Business Combinations | 3 Months Ended |
Mar. 31, 2024 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Combinations | Business Combinations On June 1, 2023, Viemed, Inc., a wholly-owned subsidiary of the Company, completed the acquisition of Home Medical Products, Inc. (“HMP”), which operates in Tennessee, Alabama, and Mississippi. The Company acquired 100% of the equity ownership of HMP in exchange for approximately $29 million in cash or cash payable, subject to customary post-closing net working capital and other adjustments. Approximately $16 million of the purchase consideration was funded by cash on hand, $8 million was funded by a borrowing on the 2022 Revolving Credit Facility, and $5 million was funded by a borrowing on the 2022 Term Loan Facility. The results of HMP’s operations have been included in the condensed consolidated financial statements since the date of acquisition. The following table summarizes the consideration paid and estimated fair values of the assets acquired and liabilities assumed at the acquisition date. Purchase Price Cash paid $ 29,417 Identifiable Assets Cash and cash equivalents 829 Accounts receivable 2,014 Inventory 582 Prepaid expenses and other assets 498 Property and equipment 4,358 Lease assets 743 Identifiable intangibles 641 Other long-term assets 25 TOTAL ASSETS 9,690 Identifiable Liabilities Trade payables 1,985 Deferred revenue 732 Accrued liabilities 1,195 Current portion of lease liabilities 536 Current debt 4,558 Long-term lease liabilities 196 Long-term debt 836 TOTAL LIABILITIES 10,038 Net assets (liabilities) acquired (348) Resulting goodwill $ 29,765 |
Property and Equipment
Property and Equipment | 3 Months Ended |
Mar. 31, 2024 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment The Company’s fixed assets consist of its medical equipment held for rental, furniture and equipment, real property and related improvements, and vehicles and other various small equipment. The following table details the Company’s fixed assets: March 31, 2024 December 31, 2023 Medical equipment $ 113,867 $ 110,920 Furniture and equipment 3,764 3,540 Land 2,566 2,566 Buildings 7,970 7,953 Leasehold improvements 657 345 Vehicles 1,223 1,192 Less: Accumulated depreciation (56,536) (52,937) Property and equipment, net of accumulated depreciation and amortization $ 73,511 $ 73,579 Depreciation in the amount of $5.9 million and $4.5 million is included in cost of revenue for the three months ended March 31, 2024 and 2023, respectively. Medical equipment purchases with a cost of $2.4 million and $1.4 million |
Current Liabilities
Current Liabilities | 3 Months Ended |
Mar. 31, 2024 | |
Payables and Accruals [Abstract] | |
Current Liabilities | Current Liabilities The Company’s short-term accrued liabilities are included within current liabilities and consist of the following: March 31, 2024 December 31, 2023 Accrued trade payables $ 2,994 $ 3,230 Accrued commissions payable 993 794 Accrued bonuses payable 2,185 7,131 Accrued vacation and payroll 3,554 2,058 Current portion of phantom share liability 1,854 1,867 Accrued other liabilities 2,477 2,498 Total accrued liabilities $ 14,057 $ 17,578 |
Debt and Lease Liabilities
Debt and Lease Liabilities | 3 Months Ended |
Mar. 31, 2024 | |
Debt And Leases [Abstract] | |
Debt and Lease Liabilities | Debt and Lease Liabilities Debt The following table summarizes the Company’s debt as of March 31, 2024 and December 31, 2023: March 31, 2024 December 31, 2023 2022 Senior Credit Facilities $ 6,813 $ 6,875 Medical equipment financing $ 267 $ 793 Financing costs and commitment fees (578) (594) Current portion (596) (1,072) Long-term portion $ 5,906 $ 6,002 2022 Senior Credit Facilities On November 29, 2022, the Company refinanced its existing borrowings under the 2018 Senior Credit Facility and entered into a new credit agreement (the "2022 Senior Credit Facilities") with the lenders from time to time party thereto, and Regions Bank, as administrative agent (the "Administrative Agent") and collateral agent, that provides for an up to $30.0 million revolving credit facility (the "2022 Revolving Credit Facility") and an up to $30.0 million delayed draw term loan facility (the "2022 Term Loan Facility"), both maturing in November 2027. The proceeds of the 2022 Revolving Credit Facility may be used to refinance existing indebtedness, for working capital purposes, capital expenditures and other general corporate purposes (including permitted acquisitions), and to pay transaction fees, costs and expenses related to the 2022 Senior Credit Facilities. The proceeds of the 2022 Term Loan Facility and any additional term loans established in accordance with the 2022 Senior Credit Facilities may be used to finance permitted acquisitions and to pay transaction fees, costs and expenses related to such acquisitions. The interest rates per annum applicable to the 2022 Senior Credit Facilities are a forward looking term rate based on a secured overnight financing rate ("Term SOFR") plus an applicable margin ranging from 2.625% to 3.375%, or, at the option of the Company, a Base Rate (as defined in the 2022 Senior Credit Facilities) plus an applicable margin, which ranges from 1.625% to 2.375%. The 2022 Senior Credit Facilities require the Company to comply with certain affirmative, as well as certain negative covenants that, among other things, restrict, subject to certain exceptions, the ability of the Company to incur indebtedness, grant liens, make investments, engage in acquisitions, mergers or consolidations and pay dividends and other restricted payments. The 2022 Senior Credit Facilities also include certain financial covenants, which generally include, but are not limited to the following : • Consolidated Total Leverage Ratio ( defined generally as total indebtedness to adjusted EBITDA) of not greater than (i) for any fiscal quarter ending during the period from the closing date to and including December 31, 2024, 2.75 to 1.0 and (ii) for any fiscal quarter ending on and after March 31, 2025, 2.50 to 1.0, subject to certain adjustments following a material acquisition. • Consolidated Fixed Charge Coverage Ratio ( defined generally as (a) adjusted EBITDA minus capital expenditures minus cash taxes to (b) the sum of scheduled principal payments plus cash interest expense plus restricted payments) of not less than 1.25:1.0. The Company was in compliance with all covenants under the 2022 Senior Credit Facilities in effect at March 31, 2024. The 2022 Senior Credit Facilities include provisions permitting the Company from time to time to, subject to certain terms and conditions, increase the aggregate amount of commitments under the 2022 Revolving Credit Facility and/or establish one or more additional term loans under the 2022 Term Loan Facility, in each case, with additional commitments from existing lenders or new commitments from financial institutions acceptable to the Administrative Agent in its reasonable discretion; provided, that, (a) the aggregate principal amount of any increases in the 2022 Revolving Credit Facility, and (b) the aggregate principal amount of all additional term loans under the 2022 Term Loan Facility established after the closing date will not exceed $30.0 million. Financing costs related to the 2022 Senior Credit Facilities are capitalized and amortized over the term of the loans using the effective interest method. Upon the initial draw of debt under the 2022 Senior Credit Facilities during the year ended December 31, 2023, the Company reclassified the deferred financing fees previously recorded in other long-term assets to long-term debt in the condensed consolidated balance sheets. Medical Equipment Financing As a result of the acquisition of HMP, the Company assumed equipment financing obligations consisting of installment payments for medical equipment which secure the financing. The financing obligations are payable in monthly installments through 2026 and include interest at rates ranging from 0% to 7.99%. As of March 31, 2024 , $0.3 million of the outstanding medical equipment financing obligations is presented on the condensed consolidated balance sheets as short term debt based on the scheduled repayment dates. Leases The Company has recognized finance lease liabilities for vehicles and operating leases for land and buildings that have terms greater than twelve months, as follows: March 31, 2024 December 31, 2023 Lease liabilities $ 3,029 $ 3,250 Less: Current portion of lease liabilities (897) (934) Net long-term lease liabilities $ 2,132 $ 2,316 Operating Lease Liabilities The Company has recognized operating lease liabilities that relate primarily to the lease of land and buildings. The exercise of lease renewal options is at the Company's sole discretion and is included in the lease term for calculations of its right-of-use assets and liabilities when it is reasonably certain that the Company plans to renew these leases. These lease liabilities are recorded at present value based on a discount rate of 5.50% , which was based on the Company's incremental borrowing rate at the time of assessment. At March 31, 2024, the weighted average lease term was approximately 4.36 years. Future maturities of the Company's operating lease liabilities as of March 31, 2024 are summarized as follows: Lease Liability 2024 $ 657 2025 $ 749 2026 $ 629 2027 $ 629 2028 $ 573 Thereafter 7 Total lease payments $ 3,244 Less: imputed interest 509 Present value of lease liabilities $ 2,735 Operating rental expenses for the three months ended March 31, 2024 amounted to $355,000. |
Fair Value Measurement
Fair Value Measurement | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | Fair Value Measurement Under ASC Topic 820, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (i.e., an exit price). ASC Topic 820 establishes a hierarchy for inputs to valuation techniques used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. There are three levels to the hierarchy based on the reliability of inputs, as follows: Level 1 - Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 - Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets or liabilities in active markets, or quoted prices for identical or similar assets and liabilities in markets that are not active. Level 3 - Unobservable inputs for the asset or liability. The degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized in Level 3. Assets Measured at Fair Value on a Recurring Basis The Company measures certain assets at fair value on a recurring basis. There were no transfers between fair value measurement levels during any presented period. The following tables summarize the Company's assets measured at fair value on a recurring basis as of March 31, 2024 and December 31, 2023: At March 31, 2024 (In thousands) Level 1 Level 2 Level 3 Total Recurring Fair Value Measurements: Money market mutual funds $ 19 $ — $ — $ 19 Available for sale debt instrument — — 2,274 2,274 Total $ 19 $ — $ 2,274 $ 2,293 At December 31, 2023 (In thousands) Level 1 Level 2 Level 3 Total Recurring Fair Value Measurements: Money market mutual funds $ 5,657 $ — $ — $ 5,657 Available for sale debt instrument — — 2,219 2,219 Total $ 5,657 $ — $ 2,219 $ 7,876 Available for Sale Debt Instrument The fair value of the Company’s available for sale debt instrument approximates its amortized cost basis due to the short maturity and indexed interest rate terms. The fair value is classified within Level 3 in the fair value hierarchy as the Company evaluates adjustments using a combination of observable and unobservable inputs, such as operating results of the counterparty as well observable prices in transactions of debt and equity instruments of the issuing counterparty when available. As of March 31, 2024, the analysis resulted in no adjustments to the carrying value impacting unrealized gains or losses. All changes to measured fair value during the period were the result of accrued interest. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis The Company measures certain assets at fair value on a nonrecurring basis. These assets include equity method investments, other equity investments, and the fair value allocation related to the Company’s acquisitions. Equity method investments are evaluated for impairment whenever events or changes in circumstances indicate that the carrying value of the investments may exceed the fair value. The Company's other equity investments are holdings in privately-held companies without a readily determinable market value. The Company remeasures equity securities without readily determinable fair value at fair value when an orderly transaction is identified for an identical or similar investment of the same issuer in accordance with the measurement alternative under Topic 820. ASU 2019-04 states that the measurement alternative is a nonrecurring fair value measurement. Accordingly, other equity investments without readily determinable fair value are classified within Level 3 in the fair value hierarchy because the Company estimates the value using a combination of observable and unobservable inputs, including valuation ascribed to the issuing company in subsequent financing rounds, volatility in the results of operations of the issuers and rights and obligations of the holdings the Company owns. The Company had no material adjustments of equity method investments or other equity investments measured at fair value on a nonrecurring basis during any of the periods presented. The fair value allocation related to the Company’s acquisitions are determined using a discounted cash flow approach, or a replacement cost approach, which are based on significant unobservable inputs (Level 3). These valuation methods required management to make various assumptions, including, but not limited to, future profitability, cash flows, replacement costs, and discount rates. The Company’s estimates are based upon historical trends, management’s knowledge and experience and overall economic factors, including projections of future earnings potential. Developing discounted future cash flows in applying the income approach requires the Company to evaluate its intermediate to longer-term strategies, including, but not limited to, estimates of revenue growth, operating margins, capital requirements, inflation and working capital management. The development of appropriate rates to discount the estimated future cash flows requires the selection of risk premiums, which can materially impact the present value of future cash flows. The Company estimated the fair value of acquired identifiable intangible assets using discounted cash flow techniques that included an estimate of future cash flows, consistent with overall cash flow projections used to determine the purchase price paid to acquire the business, discounted at a rate of return that reflects the relative risk of the cash flows. The Company estimated the fair value of certain acquired identifiable intangible assets based on the cost approach using estimated costs consistent with historical experience. The Company believes the estimates and assumptions used in the valuation methods are reasonable. There were no transfers between fair value measurement levels during any presented period. |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Shareholders' Equity | Shareholders' Equity Authorized Share Capital The Company’s authorized share capital consists of an unlimited number of common shares, with no stated par value . Issued and Outstanding Share Capital The Company has only one class of stock outstanding, common shares. The authorized stock consists of an unlimited number of common shares with no stated par value, of which 38,816,766 and 38,506,161 shares were issued and outstanding as of March 31, 2024 and December 31, 2023, respectively. The Company acquired and cancelled 128,362 common shares at a cost of $1.0 million to satisfy employee income tax withholding associated with RSUs vesting during the three months ended March 31, 2024. The Company’s retained earnings were reduced by the amount paid for the shares repurchased and cancelled. Stock-Based Compensation On June 11, 2020 (the "Effective Date"), the Company’s shareholders approved the Company's 2020 Long Term Incentive Plan (the "Omnibus Plan") to provide an incentive to attract, retain and reward directors, officers, employees, and consultants who provide services to the Company or any of its subsidiaries. Upon approval of the Omnibus Plan, no future awards are available to be made under the Company's previous RSU and Option Plans (collectively, the "Former Plan"), and the common shares that were not settled or awarded under the Former Plan as of the Effective Date are available for awards under the Omnibus Plan. The maximum number of common shares that are available for awards under the Omnibus Plan and under any other security based compensation arrangements adopted by the Company, including the Former Plan, may not exceed 7,758,211 shares (equal to 20% of the issued and outstanding common shares of the Company on the Effective Date). The maximum amount of the foregoing common shares that may be awarded under the Omnibus Plan as “incentive stock options” is 2,600,000 common shares. As of March 31, 2024, the Company had outstanding options of 4,152,000 and RSUs of 1,524,000 associated with common shares under the Omnibus Plan. The following table summarizes stock-based compensation expense for the three months ended March 31, 2024 and 2023 (in thousands): Three Months Ended March 31, 2024 2023 Stock-based compensation - options $ 111 $ 348 Stock-based compensation - restricted stock units 1,321 1,043 Total $ 1,432 $ 1,391 At March 31, 2024, there was approximately $220,000 of total unrecognized pre-tax stock option expense under the Company's equity compensation plans, which is expected to be recognized over a weighted average period of 0.91 years . As of March 31, 2024, there was approximately $8,232,000 of total unrecognized pre-tax compensation expense related to outstanding time-based restricted stock units that is expected to be recognized over a weighted average period of 0.95 years . Options The following table summarizes stock option activity for the three months ended March 31, 2024: Number of options Weighted average exercise price (1) Weighted average remaining contractual life Aggregate intrinsic value (2) Balance December 31, 2023 4,214 $ 5.25 5.9 years $ 11,698 Issued — — Exercised (60) 5.06 Expired / Forfeited (2) 5.21 Balance March 31, 2024 4,152 $ 5.25 5.6 years $ 17,423 (1) For presentation purposes, stock options issued with a Canadian dollar exercise price have been translated to U.S. dollars based on the prevailing exchange rate on the date of grant. (2) The aggregate intrinsic value of options outstanding represents the difference between the exercise price of the option and the closing price of the Company's common shares on the last trading day of the perio d ($9.43 and $7.85 on March 31, 2024 and December 31, 2023, respectively). The aggregate intrinsic value of options outstanding was $17,423,000 and options exercisable was $16,278,000 at March 31, 2024. For the three months ended March 31, 2024, 60,130 common shares were issued pursuant to the exercise of stock options. At March 31, 2024, the Company had 3,861,000 exercisable stock options outstanding with a weighted average exercise price of $5.23 and a weighted average remaining contractual life of 5.5 years . At December 31, 2023, the Company had 3,461,000 exercisable stock options outstanding with a weighted average exercise price of $4.99 and a weighted average remaining contractual life of 5.5 years. The fair value of the stock options has been charged to the Condensed Consolidated Statements of Income and Comprehensive Income and credited to additional paid-in capital over the vesting period, using the grant date fair value based on the Black-Scholes option pricing model. The assumptions used to determine the grant date fair value of stock options include exercise price, risk-free interest rates, expected volatility, and average life of an option. The risk-free interest rates are based on the rates available at the time of the grant for zero-coupon U.S. government issues with a remaining term equal to the option’s expected life. The average life of an option is based on both historical and projected exercise and lapsing data. Expected volatility is based on implied volatilities from traded options on the Company's common shares and historical volatility of the Company's common shares over the expected life of the option. There were no issuances of options during the three months ended March 31, 2024. Restricted Stock Units The Company accounts for RSUs using fair value. The fair value of the RSUs has been charged to the Condensed Consolidated Statements of Income and Comprehensive Income and credited to additional paid-in capital over the vesting period, based on the stock price on the date of grant. RSUs vest generally over a one The following table summarizes RSU activity for the three months ended March 31, 2024: Number of RSUs (000's) Weighted average grant price Weighted average remaining contractual life Aggregate intrinsic value (1) Balance December 31, 2023 1,226 $ 7.23 0.86 years $ 9,624 Issued 750 8.39 Vested (379) 6.92 Forfeited (73) 7.93 Balance March 31, 2024 1,524 $ 7.84 0.95 years $ 14,371 (1) The aggregate intrinsic value of time-based RSUs outstanding was based on the closing price of the Company's common shares on the last trading day of the p eriod ($9.43 and $7.85 on March 31, 2024 and December 31, 2023, respectively ) . During the three months ended March 31, 2024, the Company issued 749,900 RSUs with equal annual vestings over a three year period and a fair value of $8.39 per share. Phantom Share Units The Company has a phantom share unit plan, which it uses for grants to directors, officers, and employees. Phantom share units granted under the plan are non-assignable and are settled in cash at vesting based on the fair value of the Company's common stock on the vesting date. Phantom share units vest annually over a three-year period. The cash-settled phantom share units are accounted for as liability awards and are re-measured at fair value each reporting period until they become vested with accrued liability and related expense being recognized over the requisite service period. The following table summarizes phantom share unit activity for the three months ended March 31, 2024: Number of phantom share units (000's) Value of share equivalents (1) Balance December 31, 2023 418 $ 3,281 Issued 250 2,040 Vested (128) (962) Forfeited (5) (47) Balance March 31, 2024 535 $ 5,045 (1) The value of outstanding share equivalents at the beginning of the period is based on the market price of the Company’s common shares at that time, the value of issued share equivalents is based on the market price of the Company’s common shares at issuance, the value of vested share equivalents is based on the cash paid at the time of vesting, and the values of forfeited share equivalents and outstanding share equivalents at the end of the period are based on the market price of the Company's common shares at the end of the period. The market price of the Company's common shares wa s $9.43 and $7.85 on March 31, 2024 and December 31, 2023, respectively. The change in fair value of the phantom share units has been charged to the Condensed Consolidated Statements of Income and Comprehensive Income and recorded as a liability included in accrued liabilities and long-term accrued liabilities. The total liability associated with phantom share units at March 31, 2024 is $2,301,000 , with $1,854,000 of this amount included in current accrued liabilities and the remaining portion of $447,000 included in long-term accrued liabilities. The impact associated with the fair value re-measurement of phantom share units is recorded in selling, general and administrative expenses within the unaudited Condensed Consolidated Statements of Income and Comprehensive Income. The following table summarizes expense associated with the phantom share units for the three months ended March 31, 2024 and 2023 (in thousands): Three Months Ended March 31, 2024 2023 Selling, general, and administrative $ 840 $ 1,149 The Company paid cash settlements of $1.0 million and $0.6 million during the three months ended March 31, 2024 and 2023, respectively, pertaining to vestings of cash-settled phantom share units. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company accrues estimates for resolution of any legal and other contingencies when losses are probable and reasonably estimable in accordance with ASC 450, Contingencies (“ASC 450”). No less than quarterly, the Company reviews the status of each significant matter underlying a legal proceeding or claim and assess our potential financial exposure. The Company accrues a liability for an estimated loss if the potential loss from any legal proceeding or claim is considered probable and the amount can be reasonably estimated. Significant judgment is required in both the determination of probability and the determination as to whether the amount of an exposure is reasonably estimable, and accruals are based only on the information available to the Company at the time the judgment is made, which may prove to be incomplete or inaccurate or unanticipated events and circumstances may occur that might cause us to change those estimates and assumptions. Furthermore, the outcome of legal proceedings is inherently uncertain, and we may incur substantial defense costs and expenses defending any of these matters. Legal Proceedings As previously disclosed, the Company (through its subsidiary Sleep Management LLC) submitted a purchase order (the “Purchase Order”) in March 2020 to Vyaire Medical, Inc. d/b/a CareFusion Respiratory Technologies (“Vyaire”) for respiratory equipment. The Company ultimately prepaid $1.4 million towards the delivery of such respiratory equipment. Vyaire was unable or unwilling to deliver the vast majority of the respiratory equipment referenced in the Purchase Order, and also refused to refund the prepayment amount (less the amounts paid for equipment actually received). On November 5, 2020, the Company (through its subsidiary Sleep Management LLC) filed a lawsuit against Vyaire in the 15th Judicial District Court for the Parish of Lafayette, Louisiana (the “State Court”) seeking damages for breach of contract and seeking a declaratory judgment that the Company is not required to pay any further funds to Vyaire. Vyaire filed a Reconventional Demand with the State Court alleging breach of contract and seeking damages of $4.7 million purportedly for the improper cancellation of the Purchase Order. The State Court issued an order on September 5, 2023 granting the Company Partial Summary Judgment finding that Vyaire breached the contract. However, the determination of damages resulting from Vyaire's breach was reserved for a non-jury trial. Vyaire has appealed the State Court's Partial Summary Judgment and has filed its opening brief, to which the Company has responded by filing its opposition brief. The Company continues to believe that it has valid legal and equitable grounds to recover its outstanding prepayment as a result of Vyaire’s failure to deliver the vast majority of the respiratory equipment referenced in the Purchase Order. The Company has determined that a loss related to the Reconventional Demand is not probable, and thus has not accrued a liability related to this claim. Although a loss may be reasonably possible, the Company does not have sufficient information to determine the amount or range of reasonably possible loss with respect to the Reconventional Demand given that the dispute is in the early stages of the legal process. As of March 31, 2024, outstanding funds in the amount of $0.9 million related to undelivered respiratory equipment are included within other long-term assets. Governmental and Regulatory Matters From time to time the Company is involved in various external governmental investigations, audits and reviews. Reviews, audits and investigations of this sort can lead to government actions, which can result in the assessment of recoupment of reimbursement, civil or criminal fines or penalties, or other sanctions, including restrictions or changes in the way the Company conducts business, loss of licensure or exclusion from participation in government healthcare programs. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For the three months ended March 31, 2024, the Company recorded income tax expe nse of $0.5 million, which includes a discrete tax benefit of $0.1 million associated with stock-based compensation arrangements. Excluding the impact of the discrete taxes, the effective rate for the three months ended March 31, 2024 is 29.2% . The effective rate differs from the amount computed by applying the statutory federal and state income tax rates to ordinary income before the provision for income taxes due to permanent non-deductible differences. The Company's effective tax rate is based on forecasted annual results which may fluctuate significantly through the rest of the year. At March 31, 2024 and 2023, the Company had no amounts recorded for uncertain tax positions and does not expect any material changes in uncertain tax benefits during the next 12 months. The Company recognizes interest and penalties related to income tax matters in income tax expense. The Company is subject to U.S. federal income tax as well as income tax in various states. The Company is generally not subject to examination by taxing authorities for years prior to 2020. The Company recognizes deferred tax assets to the extent that the Company believes that these assets are more likely than not to be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Income per common share is calculated using earnings for the year divided by the weighted average number of shares outstanding during the year . Using the treasury stock method, diluted income per share amounts are calculated giving effect to the potential dilution that would occur if securities or other contracts to issue common shares were exercised or converted to common shares by assuming the proceeds received from the exercise of stock options and the vesting of RSUs are used to purchase common shares at the prevailing market rate. The following reflects the earnings and share data used in the basic and diluted earnings per share computations: Three Months Ended March 31, 2024 2023 Numerator - basic and diluted: Net income attributable to shareholders $ 1,603 $ 1,517 Denominator: Basic weighted average number of common shares 38,717,123 38,156,777 Diluted weighted average number of shares 40,580,634 40,016,693 Basic earnings per share $ 0.04 $ 0.04 Diluted earnings per share $ 0.04 $ 0.04 Denominator calculation from basic to diluted: Basic weighted average number of common shares 38,717,123 38,156,777 Stock options and other dilutive securities 1,863,511 1,859,916 Diluted weighted average number of shares 40,580,634 40,016,693 Anti-dilutive shares excluded from the calculation consisted of dilutive employee stock options and RSUs that were de minimis in all periods presented. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net income attributable to shareholders | $ 1,603 | $ 1,517 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Principles of Presentation | Principles of Presentation |
Basis of Consolidation | Basis of Consolidation |
Use of Estimates | Use of Estimates |
Segment Reporting | Segment Reporting The Company’s chief operating decision-makers ("CODMs") are its Chief Executive Officer and Chief Operating Officer, who make resource allocation decisions and assess performance based on financial information presented on an aggregate basis. There are no segment managers who are held accountable by the chief operating decision-makers, or anyone else, for any planning, strategy and key decision-making regarding operations. The corporate office is responsible for contract negotiation with vendors and payors, corporate compliance with healthcare laws and regulations, and revenue cycle management, among other corporate supporting functions. Accordingly, the Company has a single reportable segment and operating segment structure based on ASC 280, Segment Reporting . |
Accounts Receivable | Accounts Receivable Accounts receivable and net revenues are based on contractually agreed-upon rates for services provided, reduced by estimated adjustments, including variable consideration for implicit price concessions for sales revenue. Inherent in these estimates is the risk that they will have to be revised or updated as additional information becomes available. The complexity of third-party billing arrangements and laws and regulations governing Medicare and Medicaid may result in adjustments to amounts originally recorded. The Company performs a periodic analysis to review the valuation of accounts receivable and collectability of outstanding balances. These estimates are determined utilizing historical realization data under a portfolio approach, which is then assessed by management to evaluate whether adjustments should be made based on accounts receivable aging trends, other operating trends, and relevant business conditions such as governmental and managed care payor claims processing procedures. The Company records a reserve for estimated probable losses as part of net rental revenue adjustments in order to report rental revenue at an expected collectable amount based on the total portfolio of operating lease receivables for which collectability has been deemed probable. The accounts receivable are presented on the Condensed Consolidated Balance Sheets net of the adjustments. |
Inventory | Inventory |
Property and Equipment | Property and Equipment Property and equipment is presented on the Condensed Consolidated Balance Sheets at historic cost less accumulated depreciation. Major renewals and improvements that extend the useful life of assets are capitalized to the respective property accounts, while maintenance and repairs, which do not extend the useful life of the respective assets, are expensed as incurred. Management has estimated the useful lives of equipment leased to customers. Depreciation is computed using the straight-line method over the estimated useful lives of the respective assets. Property and equipment are depreciated on a straight-line basis over their estimated useful lives. |
Equity Investments | Equity Investments Equity investments on the Condensed Consolidated Balance Sheets are comprised of an investment accounted for under the equity method and equity investments without readily determinable fair values accounted for under the measurement alternative described in ASC 321-10-35-2. The Company's equity method investments include a 49% equity interest in Solvet Services, LLC, an entity which provides health care support services to state and federal governments. Investments accounted for under the equity method are investments in unconsolidated entities over whose operating and financial policies the Company has the ability to exercise significant influence but not control. Equity method investments are initially measured at cost in the Condensed Consolidated Balance Sheets with any subsequent adjustments made to the carrying amount of the investment for the Company’s proportionate share of income or loss. Distributions received from the investee reduce the Company’s carrying value of the investment. The Company has recognized its share of income or loss on the gain (loss) from equity method investments within non-operating expenses in the Condensed Consolidated Statements of Income and Comprehensive Income. Equity method investments are evaluated for impairment whenever events or changes in circumstances indicate that the carrying value of the investments may exceed the fair value. No events or changes have occurred as of March 31, 2024 that would impair the carrying value of equity method investments. Other equity investments are investments without a readily determinable fair value which do not qualify for the practical expedient in ASC 820. For these investments, the Company has elected the measurement alternative which measures the investment at cost, less any impairment. ASU 2019-04 clarifies that if an entity identifies observable price changes in orderly transactions for the identical or a similar investment of the same issuer, it must measure its equity investment at fair value in accordance with ASC 820 as of the date that the observable transaction occurred. The Company was not aware of any impairment or observable price change adjustments that needed to be made as of March 31, 2024 on its investments in equity securities without a readily determinable fair value. |
Debt Investment | Debt Investment The Company's debt investment is a variable rate secured convertible note issued by Healthcare DX, Inc. (d/b/a ModoHealth) on December 21, 2022, classified as an available-for-sale debt instrument. Accrued interest is due upon the 18 month maturity of the note and is included in the amortized cost basis at each reporting period. At each financial statement date until a conversion event, the debt instrument is required to be remeasured at fair value. Changes in unrealized gains and losses are included in accumulated other comprehensive income, net of tax effect, until realized. |
Intangible Assets | Intangible Assets |
Comprehensive Income | Comprehensive Income Comprehensive income reflects the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. The Company's comprehensive income represents net income adjusted for unrealized gains and losses, net of tax. Accumulated other comprehensive loss is presented on the accompanying Condensed Consolidated Balance Sheets as a component of shareholders' equity. |
Revenue Recognition | Revenue Recognition Revenues are principally derived from the rental and sale of HME products and services to patients. Rental revenues Revenue generated from equipment that is rented to patients is recognized over the non-cancellable rental period (typically one month) and commences on delivery of the equipment to the patients. The lease agreements are evaluated at lease commencement and the start of each monthly renewal period to determine if it is reasonably certain that the monthly renewal or purchase options would be exercised. The exercise of monthly renewal or purchase options by a patient has historically not been reasonably certain to occur at lease commencement or subsequent monthly renewal. Revenues are recorded at amounts estimated to be received under reimbursement arrangements with third-party payors, including private insurers, prepaid health plans, Medicare, Medicaid and patients. Rental revenue, less estimated adjustments, is recognized as earned on a straight-line basis over the non-cancellable lease term. Rental of patient equipment is billed on a monthly basis beginning on the date the equipment is delivered. Since deliveries can occur on any day during a month, the amount of billings that apply to the next month are deferred. The Company's lease agreements generally contain lease components and non-lease components, which primarily relate to supplies. The Company has made the accounting policy election to account for a lease component of an agreement and its associated non-lease components as a single lease component based on the Company's assessment of classification of the lease based on the consideration in the contract for the combined component. Sales and Services revenues Revenue related to sales of equipment and supplies is recognized on the date of delivery as this is when control of the promised goods is transferred to patients and is presented net of applicable sales taxes. Revenues are recorded only to the extent it is probable that a significant reversal will not occur in the future as amounts may include implicit price concessions under reimbursement arrangements with third-party payors, including private insurers, prepaid health plans, Medicare, Medicaid and patients. The sales transaction price is determined based on contractually agreed-upon rates, adjusted for estimates of variable consideration. The expected value method is used in determining the variable consideration as part of determining the sales transaction price using historical reimbursement experience, historical sales returns, and other operating trends. Payment terms and conditions vary by contract. The timing of revenue recognition, billing, and cash collection generally results in billed and unbilled accounts receivable. |
Stock-Based Compensation | Stock-Based Compensation The Company accounts for its stock-based compensation in accordance with ASC 718 , "Compensation—Stock Compensation" , which establishes accounting for share-based awards exchanged for employee services and requires companies to expense the estimated fair value of these awards over the requisite employee service period. Stock–based compensation costs for stock options are determined at the grant date using the Black-Scholes option pricing model. Stock-based compensation costs for restricted stock units ("RSUs") are determined at the grant date based on the closing stock price. The expense of such stock-based compensation awards is recognized using the graded vesting attribution method over the vesting period and the offsetting credit is recorded as an increase in additional paid-in capital. Forfeitures are recorded as incurred. Any excess tax benefit or deficiency is recognized as a component of income taxes and within operating cash flows upon vesting of the share-based award. For the Company’s phantom share units settled in cash, the Company computes the fair value of the phantom share units using the closing price of the Company's stock at the end of each period and records a liability based on the percentage of requisite service. |
Income Taxes | Income Taxes The Company is subject to income taxes in numerous U.S. jurisdictions. Significant judgment is required in determining the provision for income taxes. The Company's income tax provisions reflect management’s interpretation of country and state tax laws. There are many transactions and calculations for which the ultimate tax determination is uncertain during the ordinary course of business and may remain uncertain for several years after their occurrence. The Company recognizes assets and liabilities for taxation when it is probable that the Company will receive refunds from or pay taxes to the relevant tax authority. Where the final determination of tax assets and liabilities is different from the amounts that were initially recorded, such differences will impact the current and deferred income taxes provision in the period in which such a determination is made. Changes in tax law or changes in the way tax law is interpreted may also impact the Company's effective tax rate as well as the Company's business and operations. Deferred income tax assets and liabilities are recognized for the future income tax consequences attributable to temporary differences between the financial statement carrying value of assets and liabilities and their respective income tax bases. Deferred income tax assets or liabilities are measured using enacted income tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be settled. The calculation of current and deferred income taxes requires management to make estimates and assumptions and to exercise a certain amount of judgment concerning the carrying value of assets and liabilities. The current and deferred income tax assets and liabilities are also impacted by expectations about future operating results and the timing of reversal of temporary differences as well as possible audits of tax filings by regulatory agencies. Changes or differences in these estimates or assumptions may result in changes to the current and deferred tax assets and liabilities on the Condensed Consolidated Balance Sheets and a charge to or recovery of income tax expense. Deferred tax is recognized on any temporary differences between the carrying amounts of assets and liabilities in the consolidated financial statements and the corresponding tax bases used in the computation of taxable earnings. The effect of a change in the enacted tax rates is recognized in net earnings and comprehensive income or in equity depending on the item to which the adjustment relates. At each reporting period end, deferred tax assets are evaluated for recoverability based on whether it is more likely than not that sufficient taxable earnings will be available to allow all or part of the asset to be recovered. |
Business Combinations | Business Combinations The Company applies the acquisition method of accounting for business acquisitions. The results of operations of the business acquired by the Company are included as of the respective acquisition date. The acquisition-date fair value of the consideration transferred, including the fair value of any contingent consideration, is allocated to the underlying assets acquired and liabilities assumed based upon their estimated fair values at the date of acquisition. To the extent the acquisition-date fair value of the consideration transferred exceeds the fair value of the identifiable tangible and intangible assets acquired and liabilities assumed, such excess is allocated to goodwill. Patient relationships, medical records and patient lists are not reported as separate intangible assets due to the regulatory requirements and lack of contractual agreements but are part of goodwill. Customer related relationships are not reported as separate intangible assets but are part of goodwill as authorizing physicians are under no obligation to refer the Company’s services to their patients, who are free to change physicians and service providers at any time. The Company may adjust the preliminary purchase price allocation, as necessary, as it obtains more information regarding asset valuations and liabilities assumed that existed but were not available at the acquisition date, which is generally up to one year after the acquisition closing date. Acquisition related costs are recognized separately from the business combination and are expensed as incurred. |
Impairment of Goodwill and Long-Lived Assets | Impairment of Goodwill and Long-Lived Assets Goodwill resulting from business combinations is not amortized, rather, it is assessed for impairment annually and upon the occurrence of a triggering event or change in circumstances indicating a possible impairment. Such triggering events potentially warranting an annual or interim goodwill impairment assessment include, among other factors, declines in historical or projected revenue, operating income or cash flows, and sustained decreases in the Company’s stock price or market capitalization. Such changes in circumstance can include, among others, changes in the legal environment, reimbursement environment, operating performance, and/or future prospects. The Company performs its annual impairment assessment of goodwill during the fourth quarter of each year. The impairment assessment can be performed on either a quantitative or qualitative basis. The Company first assesses qualitative factors to determine whether it is necessary to perform a quantitative goodwill impairment analysis. If determined necessary, the Company applies the quantitative impairment test to identify and measure the amount of impairment, if any. Fair value determinations require considerable judgment and are sensitive to changes in underlying assumptions and factors, such as estimates of a reporting unit's fair value and judgment about impairment triggering events. As a result, there can be no assurance that the estimates and assumptions made for purposes of the annual or interim goodwill impairment test will prove to be accurate predictions of the future. For the year ended December 31, 2023, the Company performed an assessment of qualitative factors and determined that no events or circumstances existed that would lead to a determination that it is more likely than not that the fair value of indefinite-lived assets were less than the carrying amount. As such, a quantitative analysis was not required to be performed and the Company did not record any goodwill impairment charges. The Company follows ASC Topic 360, which requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that the asset group’s carrying amounts may not be recoverable. In performing the review for recoverability, if future undiscounted cash flows (excluding interest charges) from the use and ultimate disposition of the assets are less than their carrying values, an impairment loss represented by the difference between its fair value and carrying value, is recognized. When properties are classified as held for sale, they are recorded at the lower of the carrying amount or the expected sales price less costs to sell. There were no impairment charges recognized during the three months ended March 31, 2024 and March 31, 2023. |
Net Income per Share Attributable to Common Stockholders | Net Income per Share Attributable to Common Stockholders |
Recently adopted accounting pronouncements and Recently issued accounting pronouncements | Recently adopted accounting pronouncements In September 2022, the FASB issued ASU No. 2022-04, Liabilities — Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations, which requires entities that use supplier finance programs in connection with the purchase of goods and services to disclose the key terms of the programs and information about their obligations that are outstanding at the end of the reporting period. The amendments in this update are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, except for the amendment on rollforward information, which is effective for fiscal years beginning after December 15, 2023. The Company adopted this standard during the year ended December 31, 2023, which did not have a material impact on its consolidated financial statements and related disclosures. Recently issued accounting pronouncements The Company is an “emerging growth company” as defined by the JOBS Act. The JOBS Act provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act of 1933, as amended, for complying with new or revised accounting standards. In other words, an emerging growth company can selectively delay the adoption of all accounting standards until those standards would otherwise apply to private companies. The Company has elected to utilize this exemption and, as a result, the Company's condensed consolidated financial statements may not be comparable to the financial statements of issuers that are required to comply with the effective dates for new or revised accounting standards that are applicable to public companies. To date, however, the Company has not delayed the adoption of any accounting standards. Section 107 of the JOBS Act provides that the Company can elect to opt out of the extended transition period at any time, which election is irrevocable. In December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which is intended to improve the transparency of income tax disclosures by requiring consistent categories and greater disaggregation of information in the effective tax rate reconciliation and income taxes paid by jurisdiction. The ASU is effective for public business entities' annual periods beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact of adopting this guidance on its consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Schedule of Equity Method Investments | The following table details the Company’s equity investments: March 31, 2024 December 31, 2023 Equity method investments $ 338 $ 320 Other equity investments 1,360 1,360 Balance, end of period $ 1,698 $ 1,680 |
Schedule of Revenue by Source | The revenues from each major source are summarized in the following table: Three Months Ended March 31, 2024 2023 Revenue from rentals Ventilator rentals, non-invasive and invasive $ 29,187 $ 25,147 Other home medical equipment rentals 10,934 6,906 Revenue from sales and services Equipment and supply sales 6,138 4,764 Service revenues 4,334 2,739 Total revenues $ 50,593 $ 39,556 |
Business Combinations (Tables)
Business Combinations (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the consideration paid and estimated fair values of the assets acquired and liabilities assumed at the acquisition date. Purchase Price Cash paid $ 29,417 Identifiable Assets Cash and cash equivalents 829 Accounts receivable 2,014 Inventory 582 Prepaid expenses and other assets 498 Property and equipment 4,358 Lease assets 743 Identifiable intangibles 641 Other long-term assets 25 TOTAL ASSETS 9,690 Identifiable Liabilities Trade payables 1,985 Deferred revenue 732 Accrued liabilities 1,195 Current portion of lease liabilities 536 Current debt 4,558 Long-term lease liabilities 196 Long-term debt 836 TOTAL LIABILITIES 10,038 Net assets (liabilities) acquired (348) Resulting goodwill $ 29,765 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | The following table details the Company’s fixed assets: March 31, 2024 December 31, 2023 Medical equipment $ 113,867 $ 110,920 Furniture and equipment 3,764 3,540 Land 2,566 2,566 Buildings 7,970 7,953 Leasehold improvements 657 345 Vehicles 1,223 1,192 Less: Accumulated depreciation (56,536) (52,937) Property and equipment, net of accumulated depreciation and amortization $ 73,511 $ 73,579 |
Current Liabilities (Tables)
Current Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Payables and Accruals [Abstract] | |
Schedule of Current Liabilities | The Company’s short-term accrued liabilities are included within current liabilities and consist of the following: March 31, 2024 December 31, 2023 Accrued trade payables $ 2,994 $ 3,230 Accrued commissions payable 993 794 Accrued bonuses payable 2,185 7,131 Accrued vacation and payroll 3,554 2,058 Current portion of phantom share liability 1,854 1,867 Accrued other liabilities 2,477 2,498 Total accrued liabilities $ 14,057 $ 17,578 |
Debt and Lease Liabilities (Tab
Debt and Lease Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Debt And Leases [Abstract] | |
Schedule of Debt | The following table summarizes the Company’s debt as of March 31, 2024 and December 31, 2023: March 31, 2024 December 31, 2023 2022 Senior Credit Facilities $ 6,813 $ 6,875 Medical equipment financing $ 267 $ 793 Financing costs and commitment fees (578) (594) Current portion (596) (1,072) Long-term portion $ 5,906 $ 6,002 |
Schedule of Lease Liabilities | The Company has recognized finance lease liabilities for vehicles and operating leases for land and buildings that have terms greater than twelve months, as follows: March 31, 2024 December 31, 2023 Lease liabilities $ 3,029 $ 3,250 Less: Current portion of lease liabilities (897) (934) Net long-term lease liabilities $ 2,132 $ 2,316 |
Schedule of Operating Lease Liabilities | Future maturities of the Company's operating lease liabilities as of March 31, 2024 are summarized as follows: Lease Liability 2024 $ 657 2025 $ 749 2026 $ 629 2027 $ 629 2028 $ 573 Thereafter 7 Total lease payments $ 3,244 Less: imputed interest 509 Present value of lease liabilities $ 2,735 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following tables summarize the Company's assets measured at fair value on a recurring basis as of March 31, 2024 and December 31, 2023: At March 31, 2024 (In thousands) Level 1 Level 2 Level 3 Total Recurring Fair Value Measurements: Money market mutual funds $ 19 $ — $ — $ 19 Available for sale debt instrument — — 2,274 2,274 Total $ 19 $ — $ 2,274 $ 2,293 At December 31, 2023 (In thousands) Level 1 Level 2 Level 3 Total Recurring Fair Value Measurements: Money market mutual funds $ 5,657 $ — $ — $ 5,657 Available for sale debt instrument — — 2,219 2,219 Total $ 5,657 $ — $ 2,219 $ 7,876 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Stock-based Compensation Expense | The following table summarizes stock-based compensation expense for the three months ended March 31, 2024 and 2023 (in thousands): Three Months Ended March 31, 2024 2023 Stock-based compensation - options $ 111 $ 348 Stock-based compensation - restricted stock units 1,321 1,043 Total $ 1,432 $ 1,391 Three Months Ended March 31, 2024 2023 Selling, general, and administrative $ 840 $ 1,149 |
Schedule of Option Activity | The following table summarizes stock option activity for the three months ended March 31, 2024: Number of options Weighted average exercise price (1) Weighted average remaining contractual life Aggregate intrinsic value (2) Balance December 31, 2023 4,214 $ 5.25 5.9 years $ 11,698 Issued — — Exercised (60) 5.06 Expired / Forfeited (2) 5.21 Balance March 31, 2024 4,152 $ 5.25 5.6 years $ 17,423 (1) For presentation purposes, stock options issued with a Canadian dollar exercise price have been translated to U.S. dollars based on the prevailing exchange rate on the date of grant. (2) The aggregate intrinsic value of options outstanding represents the difference between the exercise price of the option and the closing price of the Company's common shares on the last trading day of the perio |
Schedule of Restricted Stock Units | The following table summarizes RSU activity for the three months ended March 31, 2024: Number of RSUs (000's) Weighted average grant price Weighted average remaining contractual life Aggregate intrinsic value (1) Balance December 31, 2023 1,226 $ 7.23 0.86 years $ 9,624 Issued 750 8.39 Vested (379) 6.92 Forfeited (73) 7.93 Balance March 31, 2024 1,524 $ 7.84 0.95 years $ 14,371 (1) The aggregate intrinsic value of time-based RSUs outstanding was based on the closing price of the Company's common shares on the last trading day of the p eriod ($9.43 and $7.85 on March 31, 2024 and December 31, 2023, respectively ) . |
Schedule of Phantom Share Units | The following table summarizes phantom share unit activity for the three months ended March 31, 2024: Number of phantom share units (000's) Value of share equivalents (1) Balance December 31, 2023 418 $ 3,281 Issued 250 2,040 Vested (128) (962) Forfeited (5) (47) Balance March 31, 2024 535 $ 5,045 (1) The value of outstanding share equivalents at the beginning of the period is based on the market price of the Company’s common shares at that time, the value of issued share equivalents is based on the market price of the Company’s common shares at issuance, the value of vested share equivalents is based on the cash paid at the time of vesting, and the values of forfeited share equivalents and outstanding share equivalents at the end of the period are based on the market price of the Company's common shares at the end of the period. The market price of the Company's common shares wa s $9.43 and $7.85 on March 31, 2024 and December 31, 2023, respectively. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | The following reflects the earnings and share data used in the basic and diluted earnings per share computations: Three Months Ended March 31, 2024 2023 Numerator - basic and diluted: Net income attributable to shareholders $ 1,603 $ 1,517 Denominator: Basic weighted average number of common shares 38,717,123 38,156,777 Diluted weighted average number of shares 40,580,634 40,016,693 Basic earnings per share $ 0.04 $ 0.04 Diluted earnings per share $ 0.04 $ 0.04 Denominator calculation from basic to diluted: Basic weighted average number of common shares 38,717,123 38,156,777 Stock options and other dilutive securities 1,863,511 1,859,916 Diluted weighted average number of shares 40,580,634 40,016,693 |
Nature of Business and Operat_2
Nature of Business and Operations (Details) | Mar. 31, 2024 state |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of states in which entity provides DME and health care solutions | 50 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Derivative [Line Items] | |||
Allowance for doubtful accounts | $ 14,400,000 | $ 11,100,000 | |
Expected useful lives | 5 years | ||
Asset impairment charges | $ 0 | $ 0 | |
Medicare | Accounts Receivable | Customer Concentration | |||
Derivative [Line Items] | |||
Concentration (percent) | 25% | ||
Medicare | Revenue | Customer Concentration | |||
Derivative [Line Items] | |||
Concentration (percent) | 43% | 45% | |
Medicaid | Accounts Receivable | Customer Concentration | |||
Derivative [Line Items] | |||
Concentration (percent) | 2% | ||
Medicare and Medicaid | Accounts Receivable | Customer Concentration | |||
Derivative [Line Items] | |||
Concentration (percent) | 27% | 32% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Equity Method Investments (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Property, Plant and Equipment [Abstract] | ||
Equity method investments | $ 338 | $ 320 |
Other equity investments | 1,360 | 1,360 |
Balance, end of period | $ 1,698 | $ 1,680 |
Schedule of Investments [Line Items] | ||
Maturity term | 18 months | |
Solvet Services, LLC | ||
Schedule of Investments [Line Items] | ||
Equity method investment, ownership percentage (percent) | 49% |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Revenue by Source (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Total revenues | $ 50,593 | $ 39,556 |
Ventilator rentals, non-invasive and invasive | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from rentals | 29,187 | 25,147 |
Other home medical equipment rentals | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from rentals | 10,934 | 6,906 |
Equipment and supply sales | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from sales and services | 6,138 | 4,764 |
Service revenues | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from sales and services | $ 4,334 | $ 2,739 |
Business Combinations - Schedul
Business Combinations - Schedule of Consideration Paid and Estimated Fair Values of the Assets Acquired and Liabilities (Details) - USD ($) $ in Thousands | Jun. 01, 2023 | Mar. 31, 2024 | Dec. 31, 2023 |
Identifiable Liabilities | |||
Resulting goodwill | $ 29,765 | $ 29,765 | |
Home Medical Products Inc | |||
Business Acquisition [Line Items] | |||
Cash paid | $ 29,417 | ||
Identifiable Assets | |||
Cash and cash equivalents | 829 | ||
Accounts receivable | 2,014 | ||
Inventory | 582 | ||
Prepaid expenses and other assets | 498 | ||
Property and equipment | 4,358 | ||
Lease assets | 743 | ||
Identifiable intangibles | 641 | ||
Other long-term assets | 25 | ||
TOTAL ASSETS | 9,690 | ||
Identifiable Liabilities | |||
Trade payables | 1,985 | ||
Deferred revenue | 732 | ||
Accrued liabilities | 1,195 | ||
Current portion of lease liabilities | 536 | ||
Current debt | 4,558 | ||
Long-term lease liabilities | 196 | ||
Long-term debt | 836 | ||
TOTAL LIABILITIES | 10,038 | ||
Net assets (liabilities) acquired | (348) | ||
Resulting goodwill | $ 29,765 |
Business Combinations - Narrati
Business Combinations - Narrative (Details) - Home Medical Products Inc $ in Thousands | Jun. 01, 2023 USD ($) |
Business Acquisition [Line Items] | |
Business acquisition, percentage of voting interests acquired (percent) | 100% |
Cash paid | $ 29,417 |
Purchase consideration funded by cash on hand | 16,000 |
Contingent liability | 0 |
Contingent asset | 0 |
Revolving Credit Facility | Line of Credit | 5 Year Revolving Credit Facility | |
Business Acquisition [Line Items] | |
Consideration funded by borrowings | 8,000 |
Term Loan Facility | Line of Credit | Delayed Draw Term Loan Facility | |
Business Acquisition [Line Items] | |
Consideration funded by borrowings | $ 5,000 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Fixed Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Property, Plant and Equipment [Line Items] | ||
Less: Accumulated depreciation | $ (56,536) | $ (52,937) |
Property and equipment, net of accumulated depreciation and amortization | 73,511 | 73,579 |
Medical equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 113,867 | 110,920 |
Furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 3,764 | 3,540 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 2,566 | 2,566 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 7,970 | 7,953 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 657 | 345 |
Vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 1,223 | $ 1,192 |
Property and Equipment - Narrat
Property and Equipment - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation | $ 5.9 | $ 4.5 | |
Medical equipment | |||
Property, Plant and Equipment [Line Items] | |||
Accounts payable | $ 2.4 | $ 1.4 |
Current Liabilities (Details)
Current Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Payables and Accruals [Abstract] | ||
Accrued trade payables | $ 2,994 | $ 3,230 |
Accrued commissions payable | 993 | 794 |
Accrued bonuses payable | 2,185 | 7,131 |
Accrued vacation and payroll | 3,554 | 2,058 |
Current portion of phantom share liability | 1,854 | 1,867 |
Accrued other liabilities | 2,477 | 2,498 |
Total accrued liabilities | $ 14,057 | $ 17,578 |
Debt and Lease Liabilities - Sc
Debt and Lease Liabilities - Schedule of Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | ||
Financing costs and commitment fees | $ (578) | $ (594) |
Current portion | (596) | (1,072) |
Long-term portion | 5,906 | 6,002 |
Equipment Financing Obligation | ||
Debt Instrument [Line Items] | ||
Credit facilities and equipment financing | 267 | 793 |
Line of Credit | 2022 Senior Credit Facilities | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Credit facilities and equipment financing | $ 6,813 | $ 6,875 |
Debt and Lease Liabilities - Se
Debt and Lease Liabilities - Senior Credit Facilities (Details) - Revolving Credit Facility | 3 Months Ended | |
Nov. 29, 2022 USD ($) | Mar. 31, 2024 USD ($) | |
2019 Term Note | Line of Credit | ||
Line of Credit Facility [Line Items] | ||
Fixed charge coverage ratio | 1.25 | |
2022 Senior Credit Facilities | Notes Payable | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | $ 30,000,000 | |
2022 Senior Credit Facilities | Line of Credit | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | $ 30,000,000 | |
Principal amount | $ 30,000,000 | |
2022 Senior Credit Facilities | Line of Credit | Through December 31, 2024 | ||
Line of Credit Facility [Line Items] | ||
Total leverage ratio | 2.75 | |
2022 Senior Credit Facilities | Line of Credit | On or after March 31, 2025 | ||
Line of Credit Facility [Line Items] | ||
Total leverage ratio | 2.50 | |
2022 Senior Credit Facilities | Line of Credit | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Minimum | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate (percent) | 2.625% | |
2022 Senior Credit Facilities | Line of Credit | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Maximum | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate (percent) | 3.375% | |
2022 Senior Credit Facilities | Line of Credit | Base Rate | Minimum | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate (percent) | 1.625% | |
2022 Senior Credit Facilities | Line of Credit | Base Rate | Maximum | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate (percent) | 2.375% |
Debt and Lease Liabilities - Me
Debt and Lease Liabilities - Medical Equipment Financing (Details) - Equipment Financing Obligation - USD ($) $ in Millions | Mar. 31, 2024 | Jun. 01, 2023 |
Debt Instrument [Line Items] | ||
Short-term debt | $ 0.3 | |
Minimum | ||
Debt Instrument [Line Items] | ||
Stated interest rate (percent) | 0% | |
Maximum | ||
Debt Instrument [Line Items] | ||
Stated interest rate (percent) | 7.99% |
Debt and Lease Liabilities - _2
Debt and Lease Liabilities - Schedule of Lease Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Debt And Leases [Abstract] | ||
Lease liabilities | $ 3,029 | $ 3,250 |
Current portion of lease liabilities | (897) | (934) |
Net long-term lease liabilities | $ 2,132 | $ 2,316 |
Debt and Lease Liabilities - Op
Debt and Lease Liabilities - Operating Lease Liabilities (Narrative) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Debt And Leases [Abstract] | |
Discount rate | 5.50% |
Weighted average lease term | 4 years 4 months 9 days |
Operating rental expenses | $ 355 |
Debt and Lease Liabilities - _3
Debt and Lease Liabilities - Schedule of Operating Lease Liabilities (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Debt And Leases [Abstract] | |
2024 | $ 657 |
2025 | 749 |
2026 | 629 |
2027 | 629 |
2028 | 573 |
Thereafter | 7 |
Total lease payments | 3,244 |
Less: imputed interest | 509 |
Present value of lease liabilities | $ 2,735 |
Fair Value Measurement - Schedu
Fair Value Measurement - Schedule of Company's Assets Measured at Fair Value on a Recurring Basis (Details) - Fair Value, Recurring - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Recurring Fair Value Measurements: | ||
Available for sale debt instrument | $ 2,274 | $ 2,219 |
Total | 2,293 | 7,876 |
Level 1 | ||
Recurring Fair Value Measurements: | ||
Available for sale debt instrument | 0 | 0 |
Total | 19 | 5,657 |
Level 2 | ||
Recurring Fair Value Measurements: | ||
Available for sale debt instrument | 0 | 0 |
Total | 0 | 0 |
Level 3 | ||
Recurring Fair Value Measurements: | ||
Available for sale debt instrument | 2,274 | 2,219 |
Total | 2,274 | 2,219 |
Money Market Funds | ||
Recurring Fair Value Measurements: | ||
Money market mutual funds | 19 | 5,657 |
Money Market Funds | Level 1 | ||
Recurring Fair Value Measurements: | ||
Money market mutual funds | 19 | 5,657 |
Money Market Funds | Level 2 | ||
Recurring Fair Value Measurements: | ||
Money market mutual funds | 0 | 0 |
Money Market Funds | Level 3 | ||
Recurring Fair Value Measurements: | ||
Money market mutual funds | $ 0 | $ 0 |
Shareholders' Equity - Issued a
Shareholders' Equity - Issued and Outstanding Share Capital (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares outstanding (in shares) | 38,816,766 | 38,506,161 | ||
Shares redeemed to pay income taxes | $ 1 | |||
Common Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares outstanding (in shares) | 38,816,766 | 38,276,389 | 38,506,161 | 38,049,739 |
Shares redeemed to pay income tax (in shares) | 128,362 | 64,756 |
Shareholders' Equity - Stock-ba
Shareholders' Equity - Stock-based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Jun. 11, 2020 | Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Options outstanding (in shares) | 4,152,000 | 4,214,000 | ||
Stock-based compensation | $ 1,432 | $ 1,391 | ||
Unrecognized pre-tax stock option expense | $ 220 | |||
Weighted-average period of recognition | 10 months 28 days | |||
Omnibus Plan | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Maximum shares in Plan (in shares) | 7,758,211 | |||
Percent of issued and outstanding shares | 20% | |||
Omnibus Plan | Common Stock | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Maximum shares in Plan (in shares) | 2,600,000 | |||
Restricted Stock Units | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
RSUs outstanding (in shares) | 1,524,000 | 1,226,000 | ||
Stock-based compensation | $ 1,321 | 1,043 | ||
Weighted-average period of recognition | 11 months 12 days | |||
Unrecognized pre-tax compensation expense, restricted stock units | $ 8,232 | |||
Options | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation | $ 111 | $ 348 |
Shareholders' Equity - Schedule
Shareholders' Equity - Schedule of Options Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Number of options (000's) | ||
Beginning balance (in shares) | 4,214 | |
Issued (in shares) | 0 | |
Exercised (in shares) | (60) | |
Expired / Forfeited (in shares) | (2) | |
Ending balance (in shares) | 4,152 | 4,214 |
Weighted average exercise price | ||
Beginning balance (USD per share) | $ 5.25 | |
Issued (USD per share) | 0 | |
Exercised (USD per share) | 5.06 | |
Expired / Forfeited (USD per share) | 5.21 | |
Ending balance (USD per share) | $ 5.25 | $ 5.25 |
Weighted average remaining contractual life | ||
Weighted average remaining contractual life | 5 years 7 months 6 days | 5 years 10 months 24 days |
Aggregate Intrinsic Value | ||
Aggregate Intrinsic Value | $ 17,423 | $ 11,698 |
Shareholders' Equity - Options
Shareholders' Equity - Options (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Aggregate intrinsic value, outstanding | $ 17,423 | $ 11,698 |
Aggregate intrinsic value, exercisable | $ 16,278 | |
Common stock issued pursuant to stock options (in shares) | 60,000 | |
Exercisable (in shares) | 3,861,000 | 3,461,000 |
Weighted average exercise price (USD per share) | $ 5.23 | $ 4.99 |
Weighted average remaining contractual term | 5 years 6 months | 5 years 6 months |
Common Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock issued pursuant to stock options (in shares) | 60,130 |
Shareholders' Equity - Schedu_2
Shareholders' Equity - Schedule of Restricted Stock Units (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 3 years | |
Number of RSUs (000's) | ||
Beginning balance (in shares) | 1,226,000 | |
Issued (in shares) | 749,900 | |
Vested (in shares) | (379,000) | |
Expired / Forfeited (in shares) | (73,000) | |
Ending balance (in shares) | 1,524,000 | 1,226,000 |
Weighted average grant price | ||
Beginning balance (USD per share) | $ 7.23 | |
Issued (USD per share) | 8.39 | |
Vested (USD per share) | 6.92 | |
Expired / Forfeited (USD per share) | 7.93 | |
Ending balance (USD per share) | $ 7.84 | $ 7.23 |
Weighted average remaining contractual life | ||
Weighted average remaining contractual life | 11 months 12 days | 10 months 9 days |
Aggregate Intrinsic Value | ||
Aggregate Intrinsic Value | $ 14,371 | $ 9,624 |
Restricted Stock Units | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 1 year | |
Restricted Stock Units | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 3 years | |
Phantom Share Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 3 years | |
Number of RSUs (000's) | ||
Beginning balance (in shares) | 418,000 | |
Issued (in shares) | 250,000 | |
Vested (in shares) | (128,000) | |
Expired / Forfeited (in shares) | (5,000) | |
Ending balance (in shares) | 535,000 | 418,000 |
Aggregate Intrinsic Value | ||
Aggregate Intrinsic Value | $ 5,045 | $ 3,281 |
Share price (USD per share) | $ 9.43 | $ 7.85 |
Shareholders' Equity - Schedu_3
Shareholders' Equity - Schedule of Phantom Share Units (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Value of share equivalents | |||
Current accrued liabilities | $ 1,854 | $ 1,867 | |
Stock-based compensation | $ 1,432 | $ 1,391 | |
Phantom Share Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Number of phantom share units (000's) | |||
Beginning balance (in shares) | 418 | ||
Issued (in shares) | 250 | ||
Vested (in shares) | (128) | ||
Expired / Forfeited (in shares) | (5) | ||
Ending balance (in shares) | 535 | ||
Value of share equivalents | |||
Beginning balance | $ 3,281 | ||
Issued | 2,040 | ||
Vested | (962) | ||
Forfeited | (47) | ||
Ending balance | $ 5,045 | ||
Share price (USD per share) | $ 9.43 | $ 7.85 | |
Total liability | $ 2,301 | ||
Current accrued liabilities | 1,854 | ||
Long-term accrued liabilities | 447 | ||
Cash settlement | 1,000 | 600 | |
Phantom Share Units | Selling, general, and administrative | |||
Value of share equivalents | |||
Stock-based compensation | $ 840 | $ 1,149 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | Nov. 05, 2020 | Mar. 31, 2024 | Mar. 31, 2020 |
Commitments and Contingencies Disclosure [Abstract] | |||
Purchase obligation | $ 1.4 | ||
Damages sought | $ 4.7 | ||
Outstanding deposit | $ 0.9 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | ||
Provision for income taxes | $ 518,000 | $ 501,000 |
Discrete income tax expense | $ 100,000 | |
Effective tax rate | 29.20% | |
Unrecognized tax benefits | $ 0 | $ 0 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Earnings Per Share [Abstract] | ||
Net income attributable to shareholders | $ 1,603 | $ 1,517 |
Denominator: | ||
Basic weighted-average number of common shares (in shares) | 38,717,123 | 38,156,777 |
Diluted weighted-average number of shares (in shares) | 40,580,634 | 40,016,693 |
Basic earnings per share (in dollars per share) | $ 0.04 | $ 0.04 |
Diluted earnings per share (in dollars per share) | $ 0.04 | $ 0.04 |
Denominator calculation from basic to diluted: | ||
Basic weighted-average number of common shares (in shares) | 38,717,123 | 38,156,777 |
Stock options and other dilutive securities (in shares) | 1,863,511 | 1,859,916 |
Diluted weighted-average number of shares (in shares) | 40,580,634 | 40,016,693 |