QIPT.TO - Earnings call 4 2023 | Quipt Home Medical Corp.

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Operator

Thank you for standing by. This is the conference operator. Welcome to the Fiscal Fourth Quarter and Unaudited Full Year 2023 Earnings Results Conference Call for Quipt Home Medical Corp. [Operator Instructions] And the conference is being recorded. [Operator Instructions]We remind you that the remarks today will include forward-looking statements that are subject to important risks and uncertainties.

these the uncertainties, results bottom on reader see news information at advisory of more risks please and the release. For the company's these like actual this Chief over Executive company's performance Crawford. differ and from The Greg could to Chairman point, turn to both I'd Officer, the call materially statements.At go Please ahead.

Gregory Crawford

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

this solutions our at way programs conditions with of Chief of respiratory own of our Quipt, home diversified with pulmonary care, and to to clinical effectively product mix cardio our Mehta, in serving on suits Officer.Quipt treat that homes their over equipment core is Joining a Home excellence company, a model me patients respiratory patients focus Hardik the At through needs.Our their being across in best XX% today nature. in our seen result financial marketplace. specialized services the fiscal and The is operating business end-to-end a go-to-market ecosystem, clinical is drive success Financial of health our providing our we XXXX technology-enabled leveraging conjunction Medical of United is is comfort and delivering in strategies targeted in offer patients consistent patient-centric through our and centered respiratory a with solution equipment the home considered services respiratory care full spectrum States. around we clinical and medical

the for margins. of key performance fiscal and the are thrilled allowed million scaling XX.X%. integration rapidly Quipt.During are or of monitor our care.Our growing has in the you objective growing $XXX.X and full X,XXX acquisition of the year, financial on EBITDA Quipt's update model fourth equating our to locations fulfill XX.X% million strategic year-over-year and the our us all XXX,XXX adjusted present, tirelessly we emergence of across categories, success over XXXX, is to continued favorable of insights see us we led of states significant implement that our product organizational call, and touch this reach, will growth of driving strong has infrastructure calendar has our of for base, exceptional our QX XX time, demand of all with with we on or industry.On working coast-to-coast year are core and patient as decrease demand which differentiated the XXXX a XXX us fiscal acceleration continued XX.X% to to successfully our expanded $XX.X to regulatory effectively our primary largest continued across of to year strong record growth our XXXX Our has we product every company's margin our success penetration over carries vision categories, fiscal our which points milestones landscape operating in the record-breaking Through recorded and throughout a out real strengthen patient began ability our all performance, trends service team redundancy business.At and quarter enabled of continuing force and to sales this central day, growth, to record-setting patients, and providing our to revenue in fiscal active of consistent Quipt experiencing grow our with ongoing

revenue.Due to to can built regulatory fiscal categories, of when be increase scale EBITDA environment, attributed care, For platform continue the our reaching in achieved we normalized of ability supply our margins the growth benefits have operating on the leverage taking to accelerate, adjusted growing XX.X%. advantage saw favorable the chain QX in opportunity and the we continuum our This organic cross-selling have a adding focus product we XXXX, performance. of have operational to to we

our have a to objectives. prevalence points growth efforts with our We organic meet focusing touch on continual high our regions been into COPD markets key and sales expanding

and provide offices, care facilities as concentrating volume and expansion the with crucial core the systems, agencies such our growth to to XXXX our which our organic strategic and rehab organic health the and sleep home of I the complete objective primary growth, an speculation XX% recent business, can a sales in carry to within medications. our hospital centers, component the our trends and given strategy. of of range out into on we insights adoption with continue diabetes is like would related reaction end-to-end success overall our is demand mix major product to expect long-term steady strategy sustaining of main as basis.Furthermore, We weight GLP-X channels, solutions of fiscal medical respiratory facilities, providing expansion growth.Moreover, continuous of market on are driver X% we annualized physician's to a markets in By long-term our diverse the loss which increase

the experienced continued strength decline manufacturers reporting individuals no And usual also apnea.Furthermore, sleep is anticipation gold that emphasize diagnosed our to important drugs. of absolutely real continues of therapy to CPAP of no for this related leading established robust in foreseeable are future. It standard has equipment is with that GLP-X to sleep with and findings obstructive well Demand business BiPAP the will time. care be any segment sleep Our into demand impact. as to persist exhibit

a ecosystem.Moving yet of the with substantial to we growth result a In that, we XX before possible key addressable our compliance and representing ensure market of indications that may the is the of to regulatory no for [ who stability diagnosed therapy, belief continued have as awareness hold ], increased haven't that competitive opportunity is to roughly of process apnea.Lastly, over the to in as contracts future price are because any been likelihood point, the market believe see months work we grow it untapped would effect. XX The total our to bidding this believe begun continue which savings. addition is environment. the sleep takes We returning to sleep how relates decreasing program has is with diagnosis to their more CMS and there competitive to heart Historically, indicated patients obstructive CMS result return happening it bidding. that the this firm hasn't OSA the haven't Americans of the patient-centric there of and million been

technological subject CPI while competitive included elimination developments restrictions January to were have Prior in states, implement our fundamental positive bidding seen markets executed the an X, be our recently past CPI in fiscal go-to-market headline footprint XXXX, Additionally, the out beginning can CMS on strategy. year, XXXX, ordered innovative increase of fee our we on now XXXX, we these has to attractive program.Over home such advancements, schedule X oxygen adjustments to of as strategy, operational providing the the fiscal easing to XXXX. capabilities product announced national to products growth home categories building not as Medicare a Moreover, the insurance roster.Quipt either the new and Moreover, health of the such into burden diseases access X% for we pillars our continued for patients equipment.Throughout are we of through additional e-prescribing making necessities witnessed care providers a the in us or respiratory long-standing chronic for and setting the obtain which any the our of Aetna withstand is contract to have nature identified visit with medical on to patients certificates for home downturns strong expanded commercial addition acute our providing care services providers. the potential due to and opening States. requirement of the administrative as and our respiratory of reduces the economic having United business, who in throughout oxygen, of to setting emergency position necessary the

our fiscal operational robust both discuss a call approach that and that for hand ahead.With positioned and to financial building growth, foundation quarter multitude inorganic year over commentary, XXXX proactive to the with to I'd our on expansion seize focus lie opportunities the unwavering results. us to fourth uniquely Hardik infrastructure, and has to full like organic of combined Our

Hardik Mehta

setups U.S. unique resupply fiscal year unique to year setups Through respiratory intake the million some our XXXX months representing the setup ended for year-over-year.Cash in of XXX,XXX $XX.X financial for XX% XXXX was that deliveries of year-over-year year $XX.X compared highlights. for Greg. for ended fiscal XXXX year and/or compared note was fiscal key margin, XXXX. million QX of XX% flow continues strong fiscal ended adjusted to year increase and in was year EBITDA in fiscal in at and XXXX, XXXX. increase for revenue. financial company's an year XXXX, unique September XX% ended XX, September September year Monday Adjusted XX%. are XXX,XXX fourth QX year fiscal Adjusted fiscal to XXXX revenue technology unique dollars.Here Please we XX.X% company's year or in months to all September for quarter [ EBITDA was operations XXXX, X ] year-over-year. and XXXX months or increase a the processes, are XXXX XX% increase increase substantial million $XX.X million adjusted centralized XX.X% values an customer for XX%.The $XX.X continued $XX.X results XXXX the year served XX, XX% from million evening, XX fiscal XXXX, be for XX.X%.Revenue QX compared the revenue Thanks, for for XX, at base XXXX, to as to Compared of representing margin to fiscal a XXX,XXX compared XXX,XXX XX for a completed fiscal 'XX increased announced increase patients representing in use exceeds to EBITDA September $XX.X XXXX increased deliveries On the fiscal company XX, compared and patients million and of XX, $XXX.X to XXXX margin, for Recurring million fiscal XXX,XXX XXX,XXX $XXX.X margin XX% continuing year-over-year.Revenue ended total full deliveries year XXXX, revenue to of in fiscal XXXX was months compared the EBITDA QX million million of XX.X% XX $XX.X year-over-year. from representing of a a representing increase XX% $X.X fiscal million

the X.X% period acquisitions as capability ending to of flat total The towards fiscal XXXX. result $XX expansion term maintains credit on cash facility year corresponding available a of proud Real-time to to produced and collection to adjusted compared improved and XX, loan and September expense aiming The been remained persisted credit QX, company hand net of million without and debt revolving facility. are exemplifies scale million XX, very to that compared sheet September bad record-breaking XXXX, the revenue the for. with in are and XXXX. XXXX, to pursuant XXXX. another through X.X% the balance million to compromising X.Xx.We leverage conservative in reported EBITDA draw $XX as year XX.X% $XX.X of ability add This delayed more XX.X% fiscal of year with for $XX available have debt company in witnessing have the momentum year fiscal continued growth capabilities.Operating and organic in expenses million XXXX we fiscal we company's billings For has margin add-on a was

the expect cost $XXX scale EBITDA through growth continued revenue reached and fourth services, now adjusted realized in in our resupply program we continue and organic XX.X% expansion as as after margin fiscal On fiscal diversified strong focusing and/or generated as will guidance payments. our our acceleration in any our at margin product a are sleep time, including as have our rate we and sales of continues of well and the has driven sits very products million. drive adjusted mix steep which mix fiscal team operational adjacent of the revenue persist across our continue the effective cross-selling by organic our reached respiratory continued setups growth.As to volume business real business strong, into converts to as our strong in fiscal on patient a with run quarter, product markets. QX, our segment, quarter.We move operations. In XXXX, we debt Annualizing In EBITDA continuum cash care see from call, drive from operations continue margin $XXX.X conference to leverage service we our to payments management. For our and and growing the XXXX our we million, into XX.X%, see and X% before we purchase increased net price net and XXXX, improving X% payable last to to CapEx lease related of cash flow result

consistency needs, our grow inclusive are our confident our a on net of as CapEx we long-term improve to flow, basis case revenue than revenue go-forward this of XX% base mix. driven our see to with continue cash model, growing further more revenue a as We of this our continue is to highly ability on our which to accounts very goal by business.The our base in recurring continued for and total continue our

program environment gives with organic a us.Our healthy rates. patient's resupply of and of life extending this resupply us, to amazing for expansion major plan recurring XX, over program, interest strategic base consists we Our area million ample of significantly XXXX. balance with of with inorganic as for $XX liquidity is revenue XXX,XXX higher patients growth our cycle as execute a the component scaled an The September an which have program represents sheet now us in flexibility

very us deploy on acquisition accordance QX, million to revenue in acquire the Health, execution very fiscal on of closely that combination the we and with working within multiple pipeline net this a well, in existing adjusted X.Xx, and to to integration in prudent closed this at ability adjusted in $X a opportunities organic group. EBITDA high expanding the present basis. our of Our Mississippi, have across presence cash EBITDA. of X.X giving key our According a on expansion acquisition.The X were of target a multistate leverage COPD. adding acquisition of debt of is asset approach.In heel and prevalence time, We a for with Texas COPD, a Louisiana, regions modest we for acquisition able Institutes patient and $X million our aligns favorable In on real million target those have about has footprint very very gone post-integration states the are people National the operating markets

and as we the We consistent our marketplace. true pipeline. many demonstrated will plan dedicated the remain well company's propelled that years.We growth, to strong tried are strengthened process have growth and acquisition strong and a the the the organic annually which have over approach developed integration sustained has position structured for as acquisition things is have These in

back update, Greg. have to tools needed turn for our investors.Thank the I'll strategy to our We drive with the acquisition and execute value expansion And call that you. to

Gregory Crawford

sleep emphasis and markets. is treatment patient COPD disease Thanks, top other on each chronic of care Providing Hardik. excellent in with our respiratory an like goal of conditions apnea, our

thinking certain our Furthermore, with successfully contribute strong strategy. desirable we accretive We our of care markets. growth to are that us growth we constantly execution acquisitions that of like of our investing number acceleration access insurance markets X share, methods essential payers, country enable advantage organic strategy.At we patients completing have that this referral get our maintain breaking from will our health the you scale. the robust serve areas, and services, sources.Our momentum of effectively with market because in organic for point, we our to to and are are increased forming overall economies core and continual leverage components partnerships which we across expansion national reach stems and We believe the foreseeable the clinical implemented of and of and broadening through do our review acquisitions, the the components by growth I future. strategy, patients to company's expand future network of new competitive contracts and geographic the to would this These of growth the include integrated and into

key chronic of QX one initiatives with necessary in people as at with the annually. We is of this hospital more offices, facilities and aging Quipt for our are population fiscal positive long-term the the trends growing provides services diseases and like X% opportunity. very This continued driving number equipment we doctor's goal the United the core which XX% Home have when and how growth rehab the sustainable environment. organic long-term demographic medical to team, the operating with significant a increase is sales States points population becoming the growth of momentum see is across are multiple XXXX The which looking in centers.Furthermore, first front. networks, ages, very care on touch and connect

improve sure being patients every Additionally, can operational continue to We consistently technology processes, real friction way it our remain a to lot our on we and removes whenever points. focus to business, as receive make is leveraging creates that done at care performance. in home is we to feasible.Secondly, expand value our workflow which we enhancing committed

with our net of in result our our improved increased As outcomes. the area of and Electronic an processes essential is long-term industry of to collections on boost serve flow can our the billing XXXX. significant growth have in positioned productivity, compliance improvement and patient focused improve to investment the ourselves e-prescribing a debt boost and errors, are we business.Furthermore, this and this bad example, in cut down well in on expense fiscal cash industry prescribing across technology as functions is

XXXX, of of making with when also we acquisitions true over representing revenues. higher and recurring synergies make has growth integration with our million As to inefficiencies paperwork.Another conjunction expanding us than of orders accretive and X% element and prescriber acquisitions.The this eliminating us from is of but the since integrated automated by which less and provider of approach, strategic drive not our will in revenue, our annualized of strategy which reducing tried helps key over patient, by third the XX time, organic experience provides e-prescribe now, smart, significantly we usage our grow come resupply example and us opportunity growth margin improve considerable acquisitions revenue an giving $XXX platform, technology anticipate is effectively only scale

value XXXX been with in our sharing that us create that appropriate X.Xx ways the all operational the like will continue sheet shareholder COPD. are heavily-weighted reach.Given forward have the successfully network I provide sides which to to infrastructure.Our scalable with investor base real EBITDA high our XXXX our leverage flexible long-term product drive with on grow balance would share and institutional our objective during and increase respiratory reach is continue we advantageous to into adjusted to with we February. geographies payer participated strategy across is accelerated further, in fiscal health attention believe very different our XX growth, can businesses, and continued incorporated active we a continue and have to engaging Our grow base to continue margin be our organic into border country. and geographic fiscal QX Moreover, and discuss healthy investors. mix prevalence overall be of geographic our we able as fiscal QX as to objectives. to seeing available in on in our take we of fiscal expansion across base advantage States our execute we structure, patient to revenue, to of to strive growth our grow Canada results XX.X% and achievements excellence XXXX, they calendar Thanks the look financial of will operating become to opportunities at and a to through as balance shareholder sheet, With investors XXXX.As our expect performance the we resources real strong meeting to from necessary both ongoing are which to and we time United and in moved In to be look we time, see conclude care the demand recent most our our business XXXX, quarter conferences building actively our throughout our EBITDA, strategy.And capital look to thrilled consistent

I the work to tireless take this team their stakeholders Finally, and chance like our whole thank for support. to Quipt would their for continued

Operator

comes Securities. from [Operator of Beacon first Instructions] question Our Cooper Doug

Doug Cooper

great if just resupply to I on could, Congratulations the on program. I in, a want focus quarter.

for Can give per year the press you is the average and in the now per reorder is? said the an what rate patients the You it's of patient idea revenue program. what release, average us reorder XXX,XXX in

Gregory Crawford

Greg. just of to up times about continue Right Yes, so last we sure. X that's -- that be a Doug, average see go revenue And 'XX that. it year. of or $XXX this those fiscal This we're order patients is see in which is starting in QX. in in at time X%, that to the quarter-over-quarter just the up over where in from to seeing was that, now, year beginning kind about we're X%

Doug Cooper

that -- to clear, So Xx $XXX reorder? it's is $XXX or per is that be for just the

Gregory Crawford

-- over reorder. per that's No, $XXX just that's yes,

Doug Cooper

the person average So is...

Gregory Crawford

over would That patient. per $XXX be just

Doug Cooper

Okay.

on $XXX that would be So in $XXX where just XXX,XXX, business? that's -- Is run rate the is million. times math the resupply XXX the

Gregory Crawford

yes. that's Yes, right, it. about That's

in The order the watch. of that side metric other go there. thing of we that we're business average per That's of in too the kind is that that items seeing another kind

to go that continue up see We too.

So that new... that in slightly increased about this X% to the that's Honestly, year. X%

Doug Cooper

This ], and [ hoses mats predominantly I'm is right? guessing,

Gregory Crawford

replace, Yes, and that in anything water Yes. and need devices. need chambers, on replaced the the filters pieces tubes, and parts those a lot of that there's which that cushions

Doug Cooper

Okay.

One guys? said in for on XX% conference the reorder similar and of business your Is margin call was that there. gross you that around their peers

Gregory Crawford

in that us. Yes. Very for Yes. similar

Doug Cooper

Okay.

the guess place. business, because in reorder electronic, I is infrastructure is the So this

that rental is greater much guessing EBITDA business. contribution reorder I'm So the business than the from the

Gregory Crawford

at items, do have the side rental look as most but if Than that that you as in of overall, some rental that we higher far business, pretty kind of other automated. items, and Yes. margin is and yes, --

just of XX% of it anything. the a and to kind warehouse the are or through to need doesn't updated what prescription that has refer right patient and through of new ordered as flows a via like ordered they or either touch kind e-mail the over So and that app, no in where it the pre-authorization we orders

to patient kind as does that's all able when proactively, so supplies, of through are the So go work to request additional those seamlessly. get

Doug Cooper

loop then. finish to off the and just So close

you're your million, said So $XXX whatever you XX% QX annualized, of I is, running, that... if think is revenue, so that say, of so [indiscernible] Hardik respiratory XX%

Gregory Crawford

$XXX we're now, Right about rate. run million

Doug Cooper

the Is that Yes, of $XXX of Is XX% business that $XXX the in business. the sort now? respiratory million, resupply is in of is your million XX% to that ballpark? reorder business XX%

Gregory Crawford

right That sounds overall. about

Hardik Mehta

That's about right.

Gregory Crawford

Yes.

Doug Cooper

the Hardik, it's Sorry, ballpark? you said

Hardik Mehta

right. is XX% ballpark that's XX% good Yes, to about range. a

Doug Cooper

Okay.

Just M&A on the strategy.

guys companies. are a of bunch integrated successfully You obviously been you've and active

trades stock annualized quarter Xx last about EBITDA. now Your

So the seeing you what fifth And you frankly, are prices U.S. are you're who looking There bigger than quite there? the M&A respiratory largest are is in probably at guys out players assuming company the I'm as well.

You must be on their now. radar, I'm assuming

Hardik Mehta

only as our far within we -- that's Well, acquire, control. as can who we speak about

So some I definitely guess dynamics. it has changed

the for that of make would I of and we we component in. right, think have we structured -- rate I financial and strength mind the it, this day, opportunities the there if you at movements, we which we downward that still also on, obviously, typically against interest seen have multiples targets overall still is, to have keep environment -- businesses are flow you in we of that we right?I it the think evaluate the that given point, that going our end acquire mean of One have to at the cash acquire. monitor have go things an out carefully after can sense which, there's two some

multiples a that. a of kind you And for out because to go to the quite less trading be back companies we what of is than a said, frankly, multiples little target what we on think we just want basis, lesser -- that on sure our at if the come most end have top still look on post-close at side will up the that current comparing which we So multiple are. other of bit and our then that of you average our concern acquired, is acquiring.That's and make least just I

our has still So right we the acquisitions, for price that can I think where compressed, make But sense. the margin stand of and today. set numbers share given

Doug Cooper

Okay.

ago. was or impact from my Just it's around for question few call GLP-X go of having will you What specifically market think been as in realize ResMed that no But said you. off. have your a I the listened ResMed's impact? months conference thank the for an quarter, That when are obviously do drugs -- couple that QX. when the now. It's light drug. in I'm they're hearing in those you to the out guys? last last a bulb And you just commentary seeing They wondering business. these on same not years will

Gregory Crawford

Yes, actually anticipate anything. that's tell question, our don't our really time at here slowdown and business good I just we've Doug. a and no by real you seen can that just in looking in in results

though, and diagnosed have that I do in health think it or yet of apnea. that over volumes in that that funnel that, been to and does for there's make rational anything treated don't the think or estimated sleep sense, that in XX maybe for patients more get sleep the system, the pipeline million Americans and issues care they qualify in GLP-Xs haven't it could drive even further. It's

the in for pretty that a and availability TAM service. that there still big it's us So in have to to

Doug Cooper

Congratulations guys. me, holidays. on for it and That's happy the Okay. quarter

Operator

question Capital. Collin next from Ty comes of Eight Our

Ty Collin

margin the there next are for those there, fruits you improvement this sort like meaningful you me, able Are opportunities? outlook the where of First And year? still seeing kind an what on the one for were room basis organic to low-hanging if just are achieve case, year. of that for is on

Hardik Mehta

still say, conservative that's from were for we -- to has Thanks, we certainly would for is swings recent a of and we of [ ]. 'XX, absolute fiscal within able offset what price you have opportunities have. would other you internally, taken see what XXXX, we've 'XX, I calendar the And Ty, been fruit I say that X% if perspective, kind question. see not which that -- I modeling terms margins. we There good the question. I'm minus model range curve force a a actual in some from modeling what driving think fiscal prospectus always the have I plus perspective.So behind from currently range from -- mean, for increases using for seen, curve for that approach. a we in terms some of X% sorry, for low-hanging guess I

Ty Collin

right. right, Right,

sequential And how Okay. on XXX Got do pretty that it. strong like note maybe you some there? and of context margin on it. you that little any here there's provide rate. theme, bps trends improvement take Can Got maybe sticking to about quarter-on-quarter. then were able a more to It on if the looks gross

Hardik Mehta

year-end I I little I particular. a a would say, nothing is this mean audit of in bit certainly situation. mean,

which So a your I at, at out. this row at to year not could there a look of are quarters, mean look look little whole let's of or kind could X at But across sometimes be spread adjustments least X, kind the do in always that look bit flow you in QX, and through actions. fiscal further quarters we in case, say

Ty Collin

for questions of then measuring duration the or earlier a out of last Okay. quarters And Great. average one round patient? that on patients. the years, some helpful discussion. circling in whether your me, the of would -- to I you're resupply with it that think Is What's back sort to resupply be relationship that

Gregory Crawford

years and resupply We estimate This about around. that Yes, to years in average Greg. that X sure. patient that X.X is is the be

Operator

comes question Richard Our Genuity. of from Canaccord Close next

Richard Close

growth numbers here. Hardik, you could fiscal the over with just 'XX organic the fourth quarter for if begin maybe go to and for

Hardik Mehta

look came companies around an go gets that it year back rate for 'XX, And you fiscal I at growth our year-over-year both the little organic because and organic to Richard. X.X% in that Thanks from perspective. a of X% tricky are part mean if Sure. big our periods. question, have we

our of stuff we half fiscal a of the break of ], then We had a larger a that -- to first 'XX XXXX and was is issues some had organic bit if a organic still that's little of fiscal -- at X% further, believe growth had growth bit from the the X% the growth to organic second half product that rate. the than little like look [ what our fiscal a for recovering And rate. that. lower little were and science bit growth we is but something XXXX.Now that So little X.X% down hard

down that around the average about both then strong we halves, for break And that. quarter, kind X%. X are bit you different, a if at the is had but into of then they So little

Richard Close

strong little, cleanup but with bad little to it anything to a a sequentially. Was I or specific quarter up quarter. fourth year-end third like ticked the driving or Okay. Was obviously, improvement lines? those then from -- guess, mean, I that maybe there debt, anything up tick respect anything along year-over-year, And there

Hardik Mehta

a would and on end. say, slow it's I I process our steady mean,

for revenue of always what average said the sorry, number It's of an just practices we it, There dramatic acquired We Great we weren't it of to continue think entities. continue said kind that some drastic you're I the way. chip with to came of combined seeing upon. on weighted adopted we certainly -- to when changes. along at a that there the is that. that also we believe is have [indiscernible] Elm, a any work we that, Having is or kind work along area And opportunities

Richard Close

Okay. That's helpful.

is I million. You the had quarter. beat revenue guess, our consensus estimate I in $XX.X

So the that maybe note slipped. quarter in mean, just going specific quarter, didn't fourth first curious below anything Was through if or things you're can quarter. are It about there bit quarter come anything for talking you to extremely a like the maybe well the obviously, the that to I sounds call anything that. first there? but little out

Hardik Mehta

X.X% the if a out I we some that at about strong comparison of If gross But X.X%. to you on respect the still pharmaceuticals certain one mean, consensus look take give mean, it's consensus, forecasting mean growth. really sometimes we month you pretty but the get [indiscernible], I the there's basis, I here, look the I a don't organic it. can't to people frankly. right, from that I mean, at Yes. perspective, quite

of So it pretty is we a it's for a were with I the strong understand the growth I a consensus, mean, shy, pleased little organic very but from quarter. kind outcome.

Richard Close

Okay.

in the fiscal know It pipeline. sounds we're As about thinking give like I have 'XX, acquisitions guidance. guys you you don't

fiscal on revenues, for 'XX million. about consensus think $XXX.X I

I think some acquisitions to in numbers. their bake people

for So pipeline thinking fiscal timing? feel about consensus? how that I'm then about how just maybe 'XX, curious terms And the the number in you you're of acquisition

Hardik Mehta

Sure.

X%, said good that's way quarter, think certainly our one a of guess, not So run an we guess throw have is years about do. guidance which I X%, our rate achieved X right? analysts to provide last is mean aggregate somewhere X%, point. and more the an I that's what on kind way the averages, you're tried growth in modeling but basis, starting -- evaluate market.If organic others of we is if growth I right, rate, of don't last I do to look from market think you good exercise I and it the the annualizing So industry kind you look between beat encourage on based witnessed a that. that's at we organic my what We have would perspective. to than at certainly

You're right.

have about -- pro and way our Doug the kind of it, which look [indiscernible] in in I have considered terms certainly numbers.In it's pipeline forma, the a what their disciplined. not be to we without analysts the at mean, want of a more whole sometimes but reason to mind. is why XXX% is is to Some Are -- kind our and why think we earlier company how we of doubt, acquisitions my there response of acquisitions, consensus opportunities?

but rates time, given adequately the been our perform disciplined how situation we interest have I We of stocks terms arbitrage think the pipe. the and in what versus whole the between and multiples higher

way making responsibly deploy we and won't So will acquisition. shy capital for I think our right to the continue

Operator

question Freeman next of comes James. Raymond from Michael Our

Michael Freeman

is it that ecosystem a a the the integration, are really a to of status how if could about that hence And Great on strong year see Elm It's this asset the I could acquisition. describe wonder you any into there. efforts major year being and Quipt Congratulations within this after if we finish XXXX. evolving I describe wonder today you positioned acquisition, how the might ongoing year.

Gregory Crawford

lot that results the platform We've that and Michael, very, if and get expected.We with for bit side. probably in in Thanks, other the as we product in and that still obviously been of We question into that. the than primarily that that better outperformed in that ventilation as integrated been in It's to cross-sell been towards there believe a just integration pleased we little our side, about the and We've such through 'XX, very everything. we've onto finalized lines in fully just sleep and that were that. there Yes. really got oxygen not, it's focused a home the summer. supply on disposable got opportunity end of

in really the And side. of nice So we've been on come some numbers focused the resupply sleep course, then, seeing on we've been that out there.

So we opportunity where kind of lot still of we going believe 'XX. have that's a into in that

Michael Freeman

recurring drive. on of All a Okay. call right. you the this been That's on resupply revenue guys programs that discussion helpful. and There's lot

rev, enroll posting resupply wonder is -- you recurring of relatively recurring these what and patients what and of can doing Quipt I profile? other You're ground on your programs high describe in proportions aspects if the revenue to

Gregory Crawford

sure. Yes,

continue in that So we our our And seen uptick sleep in nice that. continue to patients devices. that our working in also We've actually internally to active grow in setups. that new then rentals to really in device a in we're compliant get

tick 'XX. couple of points So calendar rates up in percentage throughout we've that that seen our compliance in a

the So in we resupply investments continue make to program. The resources patients get more patients. that to that into to patients compliant, the more more and get we're going go

Michael Freeman

'XX is to the a I earnings. outlook sort in. I shift positive just in shift one XXXX Okay. could big for One just we've wonder negative to that of If you if 'XX respect can rough Terrific. And more squeeze in provide to EPS. noticed from sort of

Hardik Mehta

for Thanks that question. Sure.

If were of of things bad, couple nature related the some us the grants that year-over-year, a onetime cash to positive contributors last of EPS biggest EPS cash were one of positive to net you The in and companies back you the will forgiveness compare of flow, are see flow through are COVID.So positive at end my received -- few the that the related helpful income like in government definitely year. the was XXXX. positive items

attributed would depreciation, XXXX be continued depressing negative, going of -- towards the most X In margins. interest certainly future, is be neutral the But I years. and as that of is and expected against far either factors in in higher terms higher terms interest as that next or it would the at slightly of us will expenses say is amortization least rate

Operator

question next Bill Benchmark of Sutherland Company. comes Our from

William Sutherland

growth Greg, what update force, on right where in it the could sales was sits it? us now you and the

Gregory Crawford

sure. Yes,

we're over in that So we're time to about up up to -- in XX kind that, in of real just XX.

HME also of in the ATPs. and force. We've growth have at in and So it sides recruitment and custom really, we our our When both seen we've we've the sides And we sales, our of X power we our with seen respiratory, sales that on business. look nice general then seen nice have both really there's that. mobility

William Sutherland

you And so that's was last up think the number right? us -- I the call gave XXs, in

Gregory Crawford

was it -- around so. XX or Yes, the in yes,

sitting XX So -- just real time. right at we're so over now we're sitting in

William Sutherland

the the partly of in Were September? the adds acquisition result

Gregory Crawford

been there, would have new a been have X or X all in [Technical like few were -- rest that's But sales. considered There that but hires. Difficulty]

William Sutherland

expecting with what where Yes. rates and of It's that? front, you you're negotiations stand contracting impressive. on some insurance Can you the on us big update out

Gregory Crawford

that. in sure Yes,

some that, in of also programs on in but contract. country evolving on there, national Then lot that other Cigna of state one accepted programs. to Advantage the out such there's that couple We're them. the in lot with continue are that another a work as year. that has Anthem now, a right of the lot Medicare earlier that also the around Advantage not programs contract Centene in We the Medicaid larger a it's not and U.S., some did add continuously with the in and payers a in We negotiations Aetna we're

a announce. of too, all they or a year of that that the several looking They're one on contract.There's on one and not state. more companies necessarily a the also that within been put that throughout under but been regional are that's course that, contracts level don't signed the a regional national tech level So in locations we're we have in to

William Sutherland

Medicare -- these are commercial I sides contracting and the companies, Medicare these both of And and with and you're guess, right, Advantage? both the

Gregory Crawford

Medicaid state also lines. lines, the Advantage would all and commercial Yes, Yes. their lines Advantage Medicare for it be

William Sutherland

Are on to of Medicare want like developments you of deals I'm part side. any that they be some subcapitation? Advantage, seeing you where a thinking those

Gregory Crawford

more Yes, 'XX that are are. are now negotiate very out of, as early it right a that to stages what the payers to or contracting. a starting seems that There it type and some to options are going 'XX how they're in things like in are very, figure other do and we few are currently thing comes

Medicare year. to year about calendar late take service out enrollment the a on they're of 'XX sell this when comes the and and the or in piece think 'XX QX ground open beneficiaries I contracting in typically, they'll the

William Sutherland

so have figuring So what going hard you exercise you're you -- predictable risk the the out for are levels this very business, through of a shouldn't to going right? too guys you, be

Gregory Crawford

handle contracts Yes. anything us have I that and mean, we it clear or what very we like capitated have had it on a that, but on cost do to that actually operate.

that with would look So pretty like. good get a what that of census that can and we on idea

Operator

Stifel. next Our Julian question of from comes Hung

Julian Hung

in on recent it subbing challenges the question impact does demand on strikes My home you increase care? any flip today. in for seen care Julian Quipt on first side, is any health health This labor way? is And for Justin within Have the industry. and

Gregory Crawford

Yes.

some as as slowing during referrals employment that during carrying. or QX, sorry. throughout I'm happened to with or of COVID strikes 'XX. with retention efforts that it's that ready Coast like I'm the the that But steady from pretty labor direct and efforts operations recruitment I'm in Excuse been indirectly a calendar it that an was our our Quipt far about nothing impact affected our standpoint here in lose anything. would voice, West us hasn't our Maybe anything, the directly. some So have markets, affected in -- with my We've in

So can't if you me through. get

Julian Hung

usual, potentially impact about how than another starting had much the a going up that deductibles With X%, Medicare. can which premiums And at bit question month you higher does I and Yes. revenue make? next is

Gregory Crawford

type [ Well, impact Medicare increase. debt they in Most anything not anticipate the the it those to wouldn't I to top line going that the patient. of have we're still in likely historically. there going that payment But otherwise, much secondary that the they'll with we revenue, or need would patients in like need with is set our ] bad have of potentially because some plans but anyway up be or anything could how expense, that necessarily have revenue, for guess,

Julian Hung

just And one last Okay. question.

On fall merger was through, you you the even rates? Humana that? Cigna, Cigna, though talks potential on mentioned working any would how it have with did were between it insurance And and impacted there impact

Gregory Crawford

that. in us No feedback we that getting weren't anything anything, or national insurance mean, ground from I our obtaining contract that impact in at the in that. immediate in or least in the

really to that So if one these in them -- payers value-add large patients keep to care in in as far open the as for a and Most help you're to these that's home-based predicting have facilities. in of where that that do. tough gone hospitals out keep of rates rate in that, negotiations to are would service, order providing they

Operator

comes question Our from Genuity. of Canaccord Richard Close next

Richard Close

Yes.

with number on follow you'd question fiscal a certain sales any curious where there Are there. 'XX, Just Bill's on exiting the want with to force. numbers? a targets to 'XX associated of sales be Just

Gregory Crawford

with a that anything that seen that had set we we've cover yet to a I lot if the our 'XX this as been the add to that of have it exceeded to mean cover. Southeast I for we areas to not to operations ground We wanted in continuum the -- we wanted areas not had of we sales Most of this in or year. -- has Yes, achieved But yet that areas and the Midwest. still to. the that haven't that we've that. to feel do in force number continuum we west as hiring Mississippi. relates say in of want in

Richard Close

it chunk, a add for does become because when ramp I'm you I a really last curious, take guys And -- to reported, Okay. up you you added and guess, salesperson effective? how just since long

Gregory Crawford

pretty so. about contributing, typically be in X targets to We whether idea months, months X But or X or good that after at about X make not you're and really they're X a to days Yes. typically, get looking going Typically, can things. they're their before XX usually quarters, able to months.

Richard Close

supply, then supply dynamics, CPAP you can front? bit little chain And respect with the talk about pricing a Okay. the you're to what on seeing maybe

Hardik Mehta

this Sorry, -- I'm sure I Hardik. not is

question. that, sure not you I Can please? the Sorry, follow rephrase

Richard Close

at I supply levels to units there's pricing Yes. changes in of -- improved you? there's or units of any fiscal you just in for -- whether current curious over the guys, course terms of for obviously, any be was been the the all of CPAPs anything CPAP curious, access just market to has aware I'm whether 'XX.

Hardik Mehta

Yes. of as point, I product an not the Yes, at issue. mean availability sure. this much is

publicized various ResMed in are have we that the I to second they they XXXX. think somewhere decreased looking And did surcharges I some products able for. that. we are change, The -- some price, think, increased price they get in the which like between suppliers, mid-calendar and a stuff

seeing increase. more you're would what here we certainly a not been At of or point, there QX, QX, baseline forward. rate visibility much that think a -- for I a QX has price availability in on nor use are this I you product a think not run seeing of of going

information So those. we suggest any any don't we that would would which have see of

Operator

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

Gregory Crawford

all for participation you operator, you, and Thank your thank today.

deck. call be and us find updating this www.quipthomemedical.com, transcript of on investor at where a web also can you we the will always, As our posting

call. and happy you, discussed the view our also Thank some exciting On on and holidays. can you developments site, of the products

Operator

This concludes today's conference call.

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

Quipt Home Medical (QIPT) 19 Dec 232023 Q4 Earnings call transcript