QIPT.TO - Earnings call 3 2023 | Quipt Home Medical Corp.

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Operator

Thank you for standing by. This is the conference operator. Welcome to the Fiscal Third Quarter 2023 Earnings Results Conference Call for Quipt Home Medical Corp.

As a reminder, all participants are in listen-only mode and the conference is being recorded. [Operator Instructions].

the to will important that that forward-looking you subject are risks remind remarks include today statements We and uncertainties.

on at could from the SEDAR and information the differ MD&A, which as materially more these The find uncertainties the and For on can please well reader as advisory results company's the these company's of EDGAR. statements. you bottom news release risks see actual performance

Officer, Chairman Greg like I'd turn conference and to Chief Mr. Executive Please At this point, Crawford. over the ahead. go to

Gregory Crawford

and you, us Chairman Quipt Thank and is all today of on thank the operator, you Greg for the and I'm name Officer Medical. joining Chief Executive call. My Home Crawford,

healthcare our Financial the a Hardik me offers those Home medical services complete Quipt is spectrum Joining respiratory of expanding a with needs. in XX hard to reach locations patient to convenient, strengthened work and with patient Officer. and suffering in company care, effective Chief that patients coast-to-coast across today top-notch services from services mission to conditions. home unique we and over succeed by healthcare that Medical we states Mehta, on Quipt XXX,XXX patients. their access giving focus Quipt, equipment home rapidly is deliver XXX are a has its this active At to tailored with

all conditions the improve success. allows growing with driving industry. in to our models daily equipment our as are delivering our every services behind us traditional strength to solutions order efforts patients core differentiated the healthcare having cardio generate in force and for who quality savings pulmonary are and than more on functions across release the their for for uses clinical outstanding to members system, In home Quipt our our X,XXX patient of the to in dedicate environment. force The is financial committed company's team of patient the of the each emerge care business who that and burden team mission we The life providing to successfully system drive service Quipt order a the

to on we solutions believe positioned equipment home the States. ecosystem fifth provider strategy, have largest of to in our to execute strategic and we respiratory offer. in and This place end-to-end revenue-producing we the operations, equipment as the our patient-centric medical to As technology continued respiratory thanks ourselves is streamline focus ongoing and United we have strong have the on growth

with aggressive are expansion. growth meaningful our to our We that certain foundation opportunities numerous inorganic in very a organic strategy of have and strong placed take further infrastructure, along us for position and operational the advantage favorable

update the the time, underlying the entire quarter are this third On provide the to business. the which and XXXX of company. of on will continued number of investment remains trends performance performance of call, on points, the robust acquisition we penetration date performance, significant and is successful organization we our to of all seeing seeing details business real-time our a including continue landscape on we and regulatory e-prescribed in our a our largest cylinders, touch result the independent factors momentum In best real fiscal core also and over positive and sales a of the outperformance key into fire DMEscripts integration across discuss record-breaking decade our

growth. sequential expectations, X% we organic fiscal surpassed sequential XXXX, expectations of growth of compared our X% XXXX record organic ahead QX reporting our baseline to fiscal QX During of

crucial of supply gaining high continuum the the concentrating a environment. XX We on covering for incredibly targets build regulatory have keep our to from in continual into growth new of markets. we room for XX% geographical states, seen been have and consistent prevalence additional our improve exceeding touch great new mind organic chain have strong benefits out organic it annually. our and organic focus growth normalized an is COPD the objectives acquisition the growth, growth our to When key of areas had To of average achieve in anticipate year, continued plenty considering strong X% points the efforts of sales with of organic growth we've rest organic footprint We working the penetrating to on throughout performance of we that as opportunity into our markets to scale. accretive result the a care, the expanding our and

$XX.X adjusted or EBITDA came in strong XX% a million XX%. of with growth margin revenue year-over-year at acceleration of million to or $XX.X XXXX QX XX% fiscal to record Our equating growth

our which strategic to to range significant long-term touch essential without the in long-term the institutions like the factor offices, agencies plan, full to drive points, offering that respiratory sales hospital we facilities, growth health continue through systems, solutions doctors' our on us we home rehab care automated end-to-end for facilities, resupply expansion program overall saying our and key main is maintaining healthcare of supplies. goes it and markets focus of implement volumes in As success are a to our continue our and expansion increase a sleep

the administrative requirement we the as environment, through obtain the Certificates many long-standing to Looking healthcare of providers which home Necessity, such witnessed easing for incredibly have burden positive restrictions the year on the in reduces Medical CMNs providers. oxygen, at past the favorable of for of elimination regulatory changes

diseases can for chronic we oxygen equipment. emergency access home and Moreover, acute patients opening as and order the of care witnessed who visit room setting have now or identified are they either the respiratory having

hasn't CPI program in products decreasing how begun program. fee has during are and XXXX. happening change a result bidding CMS X, Medicare indicated The any that XX to took this the bidding before on roughly because contract which effect our the effect. adjustments favorable prices to January processes, not competitive resulted of savings. sizable months schedule, increase to Historically, the competitive we the CMS in In past, returning given subject a take likelihood CPI is would Additionally, were

fortitude, and well of As have result downturns. positive Quipt protected economic a pressures we shown operational inflation from the operating is long-term ongoing and any the environment

within equipment the an quarter, and technology industry further of compliance can an to durable to experience provider airs eliminating serve made innovate. boost are This is in ], this and participation Subsequent the with e-prescribed prescribing aligns the to major improving XX% growth made Electronic million The inefficiencies DME align independent paperwork. our DMEscripts, of we we purchase in prescriber have approximately of investment to on investment thrilled e-prescribe our and company end boost future as fiscal third of cut patient, to usage down to $X.X improve have collaborate patient dedicated the is to by outcomes. investment the the medical industry. industry to productivity, us and peers [ essential reducing

pipeline have XXXX enjoy tailwinds, a robust accomplished very the acquisitions in financial optimistic what thus significant to far are continue a we and future. business are solid incredibly fiscal As we about of position, by and we pleased

like We growth. fiscal are over continue discuss and strategy Hardik to call prepared shareholder as commentary, to carry our that maximizing out drive towards to to XXXX results. hand I'd the to value eagerly third quarter financial With our we work

Hardik Mehta

please representing reviewing the in quarter XXXX fiscal SEDAR announced and note we XXXX. months are evening, third our are results results Monday the On fiscal U.S. quarter financial Greg. and financial XXXX that numbers, In values third full available X the EDGAR. ended Thanks, all on dollars XX, June

highlights. key some are Here

deliveries unique XX%. The XX,XXX QX company's customer in unique approximately patients base XXXX of approximately XXXX. to fiscal patients in XXX,XXX the QX increased XXX,XXX to in ] an XXXX, in unique compared fiscal XXXX, approximately approximately Compared company to setup unique deliveries fiscal XX% QX setups QX year-over-year [ XXX,XXX sold increase completed fiscal

$XX.X representing QX June to of be strong revenue. witnessed of Adjusted a quarter. XXXX, total an XX% XX% previous X XXXX million XX% compared set representing in to XXXX, Revenue EBITDA XXXX XXXX. compared continues QX respiratory to revenue from increase Revenues XX, was to ended $XX.X supply fiscal June XXX,XXX or fiscal XX% The X at XX, $XXX.X revenue ended fiscal XX,XXX compared up approximately for of approximately and great for during EBITDA fiscal margin, million fiscal exceeds XXXX increase QX million $XX.X QX this months were million at the XX% to year-over-year. compared months year-over-year. for XXXX, XX%. company million increased Recurring the XXXX, XXXX growth adjusted fiscal deliveries for to XX% X% the QX was QX There during an QX XXXX increase margin at quarter fiscal organic QX of $X.X for as

XXXX, operations XX% from Cash XXXX, XX, for We beyond. XX.X% increase months Adjusted X XXXX, seeing was a strong $XX ended to ended months million, the months $XX and of an million June in ended continuing performance XX%. fiscal and expect revenues. for represented months to of XX, $XX.X substantial for the X X the compared EBITDA XXXX, June representing X XX, of XX, margin increased to continue increase June million June from flow the ended QX

our was debt collection due billing revenue and For significant add-on to without decrease ability primarily fiscal our fiscal X% capabilities. add expense at improved is X% exemplifies QX more scale through XXXX, to in QX processes acquisitions bad This compared to and compromising XXXX.

margin $XX increases contributed on $XX leverage million X to loan. an credit the all throughout credit XXXX, maintain continues fiscal increase and revolving quarter we related of metrics of with months our on $XX to June organic has months very XXXX, primarily operating available the line $XX XX, a robust seeing 'XX. company healthy on of June available we June its and million, of just Acquisitions For ended hand key the the at Momentum cash payroll. the million remaining third our expectations. term increase, of and facility $X.X approximately been the net the working build The growth as million reported and towards. year, available company XXXX, delayed-draw on to outperformed X million of XX, have ended senior expansions was XX, the $XX continued In million The are million expense of baseline from ratio X.Xx. $XX

as margin operational respiratory and services as effective management. adjusted XX%, by reached weighted driven has savings Our EBITDA focusing our mix product well on heavily cost and

CapEx the products fiscal fiscal continue sequential trends, to will care the drive the Q&A in quarter third cross-selling target near-term and/or its In lease X% company thrilled of was quarter, of conference by after operations. net organic debt persist quarter. cash and In through third growth adjacent flow to service compared some flow reached purchase addition, call before strong from to continuum consistently sessions, fiscal the stated and the the organic we the the price in to previous the the X% related We expand as second X% markets. that any acceleration are related volume payments has net from demonstrated and In anticipate also robust growth growth cash company of we which operations achieve of payments.

On and would the upwards the of of lease QX. debt consistency XXXX, performance revenue from recurring model, and continued its fiscal of revised service our flow aim accounts the X% X% for related line after and our to revenue highly by company fiscal is has mix payments for QX, with purchase revenue before goals which price to CapEx any total heels cash months as base strong ending operations achieve driven and/or of related XX% near-term The payments. in our X June consistently

sheet further we that in plan improved room balance rapid to execute expansion our interest with in to quarter, the an higher for will our sufficient we strategic order rates. already robust have During ensure environment

combination for very us of X.Xx, acquisition Our a giving our deploy our prudent present of debt in cash acquisition the modest a flexibility pipeline considerable and with is leverage approach. execution to accordance

X calendar largest states. new with announced suffering acquisition were X.X over states, date million we to XXXX, covering from As COPD to we Quipt, entered which X those our across of

resupply products, program. acquisition. synergies opportunities are performance our markets seeing exceptional are leverage expansion focused revenue and cross-selling through the We longer-term of significant is near we Integration to of with on existing complete, and

through We processes overlapping centralization drive of economies functions. to and continue scale reducing

continued fiscal the products recognized significant off million our and have we have quarter synergies As the ] build call, build have our portfolio a savings now cost we and ahead to respiratory full QX opportunities strategy $X undertaken our land and Because of expanding acquisition of and nearly that. grab, to on a mentioned initial with greater tuck-in such we a integration preview acquisitions, on [ geographic services. of schedule

process shown the factors driving growth continue plan committed years. to strengthening over that acquisition systemic are acquisition proven has we behind that the been have solid a steady organic industry. company's have for the the We basis the our approach a and robust continued have growth, integration in many and an that position annual pipeline deep to be These and the on been force built

all our shareholders. out and expansion carry have We moving for Thank increased tools acquisition forward to value order to in our the plan generate you.

turn with call And to I'll the that update, Greg. back

Gregory Crawford

Hardik. Thanks,

Our By first of penetrating care always with attractive gain we one is a every including foregoing number alliances other to disorders, diseases. treatment markets and our of in sleep geographic the with of provide payers, devising referral areas. increase patients sources, priority new the serve are strategies on and single and to entry patient great patients apnea, markets and focus we respiratory to chronic COPD

anticipate take provide will the foreseeable of economies result We competitive of strategy. to advantage us successful our a execution our future Our our key reach elements as strong into and robust us clinical services, of share growing market scale. allow a the that of momentum of growth continue edge expanding and

These confident help insurance include accretive company's growth. contracts, are successfully expanding future we I the as of components network you completing in move that completed our overall. with of our nation the and us X core strategy investments healthcare organic through model we to like making our XXXX. acquisitions national the across growth review point, Moreover, execution accelerate to this organic growth acquisitions At into the our would

or fiscal X% X% growth, we X% QX XX% at organic X.X% to strived pace have which sequentially in for. to annually, is sequential a First the surpassing came in robust

facilities surpass well our is networks, centers. is hospital we very which front, how one shown care fiscal go by rehab Growing doctors' on our key like initiatives continuing this. long-term of results, points As will we sales with offices, connect XXXX anticipate team and to core the this is and touch

Quipt number in the Furthermore, us people sustainable as necessary a at Home trends the medical aging positive environment. operating opportunity. services the chronic multiple significant ages, when diseases population are increase are demographic of more with gives the growth for the States long-term population across and with which United and very equipment looking becoming

done home receive make whenever lot at the sure is a Additionally, being is that care it patients to feasible.

to to consistently on operational production boost across order in and our performance, focused in are Second, improve our technology usage we profitability. the of always business functions order

technology acquisitions. key revenue automated mining only on of when our not focusing resupply make us example organic analytics platform, primarily us are and also data We growth applying drive synergies helps which data techniques. A strategic of provides usage is but considerable with we

acquisitions growth third The and of with XXXX. conjunction tried integrated our expanding is which XX integration smart has element scale approach, by making in our true since effectively acquisitions plan accretive

businesses, Our attention respiratory into infrastructure. successfully is scalable which weighted heavily can on be incorporated our

be within pipeline COPD acquisition to balance able and to EBITDA, is states patient objective are and our grow geographic our base presented geographic will that our payer network. strategy overall those advantageous reach we to base reach. revenue, of the our already by a Our with opportunities high increase into advantage robust our sheet, to including prevalence, Thanks healthcare take

into well our With TSX capital on the XXXX has momentum trading XXXX Russell markets start big of as the the continued indexes, as in board our XXXX. and in inclusion

trading TSX Both note It and our lead time. to to XX% investment dealers that increased of headquarters. significant by liquidity is opinion, over will global is the with occurrences ownership institutional in conducted

remainder a conferences our are and wide as to goals. always, year a will record compelling and range plan of to the and aggressively of be in-person company. anticipate number growth to and of opportunity very we Canadian growing our informing As busy long-term U.S. wonderful online we attend investment investors discuss the have to investors our story tell about reaching out The

back. bullish are In at strong continuing the addition, products our services position experiencing in light and extremely we industry respiratory of continued to for are and environment, growth sustained tailwinds organic strategically the demand we the company for the all

remain pursuit numerous will to us. available We of yet in prudent our the opportunities aggressive

to sheet excellence all with and expansion us the leverage operational strategy. X.Xx balance execute resources Our provide our necessary

their to thank team work support. take Quipt I and their like continued for moment entire the stakeholders our for to Finally, would a tireless

Operator

Doug Beacon Our with first Securities. question is [Operator Instructions] from Cooper

Doug Cooper

Congrats on a terrific quarter.

roughly XX%. all, obviously, annualized, growth, pace that to the the on sequentially, organic that's first going can Just XX% Greg, exceeding keep work. a At How X% you in? of X% terrific long

Gregory Crawford

I chain XX% X%, of kind mean, mean in we've come of that the and that, our organic that kind robust supply at a the I seen we've normalizing. historic can growth business take we back seen. on backside of levels pandemic and of that the we that in in beat into that, that minimum the

drivers big that we've over that so markets obtained couple past on through the of sales to that has that, our in we've force One or the been the front. years that added behind acquisitions of

to So for future. the we side on continued think going momentum see we're organic growth the foreseeable

Doug Cooper

Okay.

the looked at I So sales. actual

So sales that meaningful, X% you're organic growth? more it sure guess, But of sequentially. up sequentially expand geographical, that just forward. Maybe I and states. talk if rentals was little something just X.X% bit. not about the go I'm you can that's within just Is equipment, penetration seeing is where up a the was

Gregory Crawford

XX the so, in new to months primarily over and It's XX In XX we've about the Yes. we states or past states. added entered. probably that that XX states to the that

So just those within new penetrating it's really of in kind states. markets that continuum

Doug Cooper

you How Okay. in there? states are many

Gregory Crawford

XX.

XXX You've got over locations.

Doug Cooper

Okay.

leverage that percentage a dropped QX. a operating as expanded from this can we as been driven the would Part XX%, low in on say leverage, payroll of XX% on was by much margin the as XX% revenue? it XX% EBITDA payroll percentage has sales past. as to It I quarter. Just of the How get in of

Hardik Mehta

Hardik. is this Doug,

sales heels in which said, line expansion, our in obviously what top growth Greg as are was we some on just reflected well. of investing force So

And will to so do continue so. we

would So revenue to force. sales percentage line put we just the to of stay dollar there, result revenue might reduce amount say of that, the the hope as unleashed adding think our the top I differently, as be a actually

Doug Cooper

flow, free I back quarter Hardik, in $XX.X X% expectations, dropped And give just the million, while sequentially, My $XX debt the it, cash you and X% the Okay. net envelope of revenue. million to raised on raising got you, of take. you your was about talked or call

whichever look in of of in ballpark sort that to way So debt, what want X% it, million you $X.X lower the Is or of roughly which free flow increased that revenue. generated you difference is cash of cash is for the at quarter?

Hardik Mehta

pretty mean I to -- on expansion speak, yes. my That's maybe shot plan [ close. X.X%, was ] so

So I think pretty we're close.

Doug Cooper

one, loss my maybe just an have from Ozempic being everybody and to skinny marketed and drugs as certainly with obviously, so you weight sleep apnea. a of might drug have will perspective, of maybe be it going from Greg, to and it final of this the talk now a on on industry? Can wonder impact focus impact And that Okay. on, sort forth, on one, but is weird lots is like and your just that happening sort the what's

Gregory Crawford

for and mean and a devices even in I today for I that that that products. still are about have I sleep to think that of gold Yes. manufacturers treatment mean, that for CPAP that, the the sleep that global and be BiPAP devices strong done investigating demand apnea. spoken I we've in to here And products. my very lot those perspective the in from demand very, as continues of even standard mean, and in

Operator

Close is Canaccord from question Richard next Genuity. The with

Richard Close

performance quarter this strong a fiscal on continued and year. Congratulations

obviously, growth forward. Just wanted lot going here strong on of back the organic optimism to go and a

had year sleep So beginning talked setups third their bit quarter. third the a this normalizing beginning They strong last about in quarter. little quarter, in third Adapt growth

some you supply just improved they're comps to January. beginning So at and higher the guys guess of I started lapping the see

being encounter Adapt as that So we the think just or compared to different front? trying to how on to about understand maybe if going should situation Quipt you're same

Gregory Crawford

anything don't in We I Yes. setup relatively it's in really that for particular because that's sleep mean any think I peak or there's device remain to our coming that from and back that. are going came think front our us. that on strong that

first -- program, that I think lot of of additionally, though, in the we resupply will there up we patients set in have and we'll set did in up the ending -- that. year stay are part the a

ramp-up So done our we've in we're setup probably that resupply additional going to the with really see prior. a

Richard Close

but just And the payroll, on also comment it go maybe or about helpful. continuing the guess was on but your That's free to Okay. then of in Hardik, flow, respect to know comments? with terms back, I talking should that sales status force the expansion? that in of the And those just believe what force, you invest Is let guys could you on the current increasing us based we sales cash to here? are

Hardik Mehta

-- months north $XX XX/XX, we our ago, of the that certainly to million million sales at $XX and for increased million $XX-ish of We had X Yes. in end it's example, March, force, at X/XX. about of as

some So mean can ground. adding won't, will teams, a directionally, are that then having process you the I and some to get see on more to path. continue And the sales try cyclical the click you there you rehire work, don't down ones whole boots we to is

we So near do future, yes. to the in that expect

Richard Close

in Quipt market? doing that And the you existing core Or newer markets? that Okay. in any is acquired of only the are

Hardik Mehta

make not line mean decisions It's but hospital that whether and to it's you benefit, there penetrated, those new new product a definitely existing you probably the it's line, If then opportunity but accordingly. opportunity doctors we and be is market I product want marginal a spend there in kind are of may of further, or -- of old whether market, on in form are sure. an if coverage you an where more penetrate based is already a additional it is. don't combination or a for market where a well the to

Richard Close

curious there? a some should level second I a good of going really forward? with just Or guess here assume levels, quarter quick. see And couple is modeling we And to little quarter. I growth inventory bit went a it this to helpful. respect questions just That's Okay. third down

Hardik Mehta

this which steady I it's think in is numbers. We within adjustments think that state level. quarter, QX base. revenue QX live inventory -- the stable did to a for But of a kind through some margin current I the

Richard Close

All final million. Elm modeling. as forward loans, Is a full around also paid some I force that one now added obviously, well completed right. think, good Great is and you sort going that And of some, off, equipment $X.X On level operating here?

Hardik Mehta

to I just X were even look particular a in swings you to as reflects want quarter, But our that again, months I months, mean, the we average since Elm. the at you we think and if price do look that's there X Yes. some do some part Whenever period acquisition, at that this purchase in already new Great the if allocation. last good category normal. you of acquire an liabilities -- if look at

does it good if you So the look last again, you'll ] months. But a I cut X think [ at average bit. averages, little get a of

Operator

with is Sarugaser from next James. Raymond question Rahul The

Michael Freeman

Rahul. for on Mike is This

general the of pipeline. First the be question pipeline on acquisition terms what seeing and wonder if you're going could of in pricing. market to I is that you profile describe describe

Hardik Mehta

Sure.

top that companies $X $XX to the pipeline million in Our somewhere revenue. includes million are line in

on end of some it. Some of the lower higher end at it, the

at to of that which tuck-in the have see do but in laid for think I us. But opportunities, out, acquire those we within little million demand valuation. existing which higher and $XX we you depressed will can be those see the seen past. plus/minus, extension are think terms state of you same to then bit slightly the And overall, a and I geography, smaller the in have maybe what than the that might higher hold valuation strategy X-pronged continues our multiples. lower probably seems We

Michael Freeman

helpful. Okay. Great. That's

describing And that Great in the you optimization specifically if if EBITDA adjusted a What asset. bit that would wonder growth. more growth around expand I I'm areas Elm. future factor headroom ambitions on might you there's wondering the are some into integration. moving Great an like for to Elm precision around more see that asset if and then with update forward that Now -- provide could of

Hardik Mehta

growth take the respond opportunity then I'll synergy Greg I'll let the part, and to part.

your in to more you're there Great unleashed Elm. and rephrase unleashed I to more be Just Did saying, to hence, are question, correct? get be that synergies margins

Michael Freeman

Yes.

Hardik Mehta

we I unleash seeing maturity months, was what -- whatever synergy to we that -- kind that mostly on do We are able sooner. think were you identified, in the able to side. of at previously to we were is were hoping X

what state, I a not if be more of gradual, steady be So they things. the you're synergies may seeing might are squeezed I in they is some be mean probably think more of meaningful there out. scheme but to

a I good very baseline. would as QX consider So

Gregory Crawford

I'll particular areas. in Yes. in be And future just into this additional the is primarily add after follow Greg. of it's in kind that And that products that, those cross-selling we'll going of to the then across geographical expansion be areas. continuum

Michael Freeman

D&A could quarters. describe question climbing if modeling Okay. for the X I forward? last over you to should be we noticed thinking I what the then one course. moving part just Great. And be about wonder

Hardik Mehta

[ D&A ].

business do roll totally do changes. of is a another said changes numbers you far Having hard maybe books Amortization you all on It's appreciate that use as we acquisition, it at that that at revenue to depreciation fact baseline goes, the line. take depreciation the modeling look to value one our look least, very can straight asset that's is on the from think we as percentage that, a on a and at perspective, still a state one as as steady way Given to acquisition, We and do thing. as I then model. that that the soon forward for right? PP&E

I I challenge we from how tough my an that's analyst steady-state appreciate part. would the cents two at And on the But So perspective. look again, to of was business. kind the model that's if

Michael Freeman

All of this right. Congratulations all growth. on

Operator

Ty with The Capital. is Collin next question Eight from

Ty Collin

as Is Are just something in one, regarding that upsize to you might toes to your as that business? that first you keep the investment get more you of minority made familiar with My water? keeping position the in DMEscripts. a guys kind look you comfortable

Gregory Crawford

Yes.

we us mean, orders fronts scale in company going and get going remains here we ordering at process that they business. be as future the see that, It's part keep create the really the them for and service think to that's that determined ultimately, get I patient definitely efficiencies all allow a their this big and quicker in our physician. on I to to can And products e-prescribe the home setting. of under and as point. The experience that so to improve

Ty Collin

guess if conversion or just wondering Okay. follow-up, you around just then that flow you articulate guidance confidence for color my future. hold could that kind increase it. I maybe at the appreciate around kind gives Got the moment what of provide little confidence the and cash And the I'm this Great. the I of there. into to a more guidance updated and

Hardik Mehta

Yes.

I of us are our and believe and presumption discussed Elm a acquisition we stabled business, I execution of in direct growth we tailwinds expect that things, the has obviously we confidence fact going have the of strategies, what plus swings are we line previously out to think inflation makes more stabilizing, see on But think importantly, that and conference on some any working combination seeing then the not numbers. the Great that kind kind that things the call. top are of with to those file in

Ty Collin

Thanks Great. Congrats. questions. Okay. for the

Operator

We follow-up Genuity. Close have with Canaccord a from Richard

Richard Close

the core Yes. and penetration to Elm Greg, resupply, could little there possibly? a lines further maybe about your thoughts on opportunity compared and time I you as talk was just what's is wondering Quipt for Grade bit if

Gregory Crawford

the operations, really we're here that. good that We've that utilizing Actually, Yes, of that. current in those question post, sure. just this in in over in that X/XX to in a quarter platform converted

the of would some of those and that frequently, more that as over start transferred we've out patients nice is platform. couple ordering this we've get seen historically acquisitions growth next over see quarters in we when So over to come expect to what which transferred

Richard Close

provide? metrics All percentage resupply you of like right. or can are patients Are doing there any that that any

Hardik Mehta

base patient eventual No, included in the the our an -- Generally, we well in Obviously, see volume then don't metrics as you any increase can increase and as setups we new today. really of that remarks in the that. revenue our leads to is resupply published into that those. an falls PR

use Quipt Elm moving retention. other for comes into Grade platform to the we the rest advantage think the it of I when of that is

our higher that converted getting resupply into I for retention has patients platform rates a are patient. think a

under building value platform are. that time, we so you over And are the

that's -- of terms resupply can expect revenue we say in Grade Elm. further would to all why those have So I growth in for

Operator

Raymond And we with a Sarugaser follow-up James. have Rahul from

Michael Freeman

again. here question Mike insurance quick national Wondering It's contracts. just on a

in wonder on deal impact your focus saw national insurance particular You've struck your And if DME generally I how table these growth contracts. and added of quick could of the like that formula? follow-up Quipt? in organic between provider. describe AdaptHealth insurance you that off May wonder a X then there Rotech on we the on does Humana. is areas specific Or respiratory, there in some with take with Humana the for opportunity is I

Gregory Crawford

contracts, and not state but in that would the have that Yes. long need We only our have some that, patient it services. and additional contracts very also potentially contracts that others national a on and I national we're sales working could add insurance lives in mean regional that cycle. do

see that, would strong that in that, that's that, of expect continue the runway going to to to of continue. on we still organic in the front. that growth believe and That So one that got is pull we've in plenty that we levers

that XX% to is enrolled member which contract Humana that plan. in under Humana of the [ for that the to our relates in it that knowledge and best and plans, only affects ] HMO of that lives As about

So got relationship Humana. we've with strong still a good

Operator

question-and-answer over concludes closing for Crawford remarks. I'd back any the This session. turn to to the conference like Greg

Gregory Crawford

and all you today. you, joining Thank for thank operator,

we and this and As of Thank can where call investor updated find day. our www.quipthomemedical.com, at web post deck. us transcript will always, also you, have a the you on great a

Operator

This concludes today's conference call.

You may your Thank disconnect a have day. for lines. pleasant participating, you and

Quipt Home Medical (QIPT) 15 Aug 232023 Q3 Earnings call transcript