VMD - Earnings call transcript Q3 2021 | Viemed Healthcare, Inc.

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Operator

Greetings, and welcome to the VieMed Third Quarter 2021 Earnings Call. [Operator Instructions] Please note this conference is being recorded. I will now turn the conference over to your host, Todd Zehnder, COO.

You may begin.

Todd Zehnder

Thank you. everyone. morning, Good our forward-looking that this call conference Please under remarks the include statements U.S. may note in Federal Securities statements. laws legislation, or forward-looking information under collectively to which applicable refer as forward-looking we Canadian Securities and Such the indicated vary results events, actual uncertainties are statements and from results in and respect to risks could Company’s views those or certain reflect subject which to intentions current or future statements. with forward-looking cause to events or filed the uncertainties and are in with risks certain the documents of SEC regulatory such of Examples provinces securities our discussed in authorities disclosure Canada. uncertainties, Because risks should these reliance of undue on statements. and investors not place forward-looking The except date call hereof, conference required as forward-looking revise obligation today the Company the as or undertakes by no law. of on statements and made to statements are forward-looking this update made any

quarter including financial results the SEC’s on third available financial release, related the news are statements, website. The

to over it turn I’ll to Now, things Casey started. get

Casey Hoyt

you Thank and everyone, our thank you, joining today. Good Todd. for call morning,

hard driven every improve to excited team XXX are We their to is employees, our our strong that of organization along opportunities employees. patients extensive of the enables the announce determination find to growing nearly relationships with lives record-breaking serve quarter of our and It experience the by we work another and day.

our for opportunity take during to their dedication to are our to We them important these people patients. and tied like most ability their thank our resilient our this commitment unwavering devotion Our again for mission. unprecedented asset, excellence directly to remain and to times is to once to their would

X% the by were grow our to year-to-date of of our track on-boarded during people core the right XX, variant quarter the over business team to sales technology the key Despite and period our new to and during the reps hirings thrilled our surge year the adding with the able previous investments over leverage Delta hires sales also XX% to markets, These of are approximately in We welcome third COVID-XX by quarter XXXX. end. goal additional our many we to third in of XX planned total quarter. bring on XX of

field time better we completing their assets our and Level, program, invigorate communications our by sources sales to Project was for a which third patients prepared of optimize the services or personnel offers. a so understanding and and returned deeper to in physical days sales the to impacted, nationwide their quarter, physicians strategies Next facilities the During additional with in products VieMed in training referral the equipped

we with in a result, seeing sales increase are strong the sleep. associated a As oxygen and

example, in the quarter. over For increased second revenues third oxygen the XX% by quarter,

about and these trends further driving our product are initial We diversifying mix. revenue enthusiastic growth

to the for capture tailwinds the the of recall Based share lack we our recall in access for of initiatives, competitors to a year. to constrain growth our not by process, the our we pipeline that to access from the from experienced creating VieMed to chain addition Philips our able to In opportunities strong professionals and were is secure training vendors market Early supply relationships supply our equipment our scale rate expansion, alternate previous the of on anticipate will and or current contribute but with equipment remainder limit projections, do rather manufacturers. to our leveraging equipment.

reliable and this is occasion environment a challenging partner. ability during providers Our meet needs VieMed to the to the that rise customer patients demonstrates and both

patient quarter. revenues in is PAP recall a third opportunity the the to an for previous over acquisition. incredible quarter, increased As the result, leading XX% Ultimately,

near of to transformative potential identify strategy road. capital our down actively to allowing acquisitions for observations indicate valuations of continue in us preserving substantially the effective strategic capital we acquisitions, term, the while an is that acquisition a grow current use While patient

external became resources pandemic temporary healthcare for is the talent. are a we division branded XXX to serve Division, of Healthcare formation in When next platform robust excited area, our The strength facilities will clinical to over recruiting announce the the the years. staffing the VieMed trends to of internal as source expected be during a VHS. for COVID-XX which during core is Staffing the this industry that and We healthcare able The a VieMed supplying become that by positions resources us by frontline healthcare Another believe We historical help crisis, us ability source was healthcare over differentiate collaborative competencies industry-leading constrained contract-based emerged recruiting well at to our engine peak factor to staff on will and five allowing facilities. supplemental provide this competitors are from our contingent positions. partners. success stream Based and clear. our see revenue the as success as staffing source talent, in critical that as will to

through emerging area VieMed sponsorship Another industry and where facilitation our is an leader research. as is medical of

the by therapy Care. As of COPD hospital who emergency peer of growing during the yet Managed longer, enjoying department live that study failure the previously will improved of study supports American with announced, evidence well and patients published was with to NIVH quarter an less, This go utilize struggling quality another as therefore body rooms respiratory life. Journal the chronic review as

our to hopefully support the they to need, care. care patients to governmental and information of As of is well providers, overall our help body investments reduce systems, step the obtain scientific equip mature, cost and next the health as with organizations initiatives evidence as

an resources. is believe provide proposition to that service technology with long-term our our combine our on like ability initiatives. value update high-touch tied We to to a uniquely high-tech I’d Finally, delivery

continued has surge. value Our proprietary patient variant this software during Delta to demonstrate the connectivity

response hub patient safely our and and RTs remote Telehealth tool a a the is announced a on the rollout real-time basis. to of We our included platform, manage and technology to providing tracing that in solution to contact home, Engage our physicians which has also their investments leverage our monitoring our to allow healthcare to patients COVID-related patients professionals ongoing activities, remotely. pandemic treat vaccine addition In previously

platforms, to the are a patients of of that adoption and VieMed we believe saw combining quarter, technology rapid Engage well-suited of further I proprietary number on the to our now Todd landscape, industry within in With we the Connect our Officer, Todd? with now home on-boarded regulatory call technology-enabled leader Chief operations, X,XXX. become When Operating more turn healthcare. over Zehnder. the will exceeding financials, View the evolving During and we a

Todd Zehnder

All right. been SEDAR. well website, reviewing results, financial figures SEC in all have full as Thanks, the results dollars and Casey. as available In the on the U.S. made are

net to net a in third the increase. core third which the of during as quarter XXXX of $XX.X XXXX, XX% of equates $XX.X business Our revenues to million generated million compared revenue of quarter

the were We spread to oxygen encouraged our for growth core business vent, lines. sequential out see our X%. was and business Our amongst PAP, very be growth

we quarter established $X.X pandemic center. the million quarter, third during with primarily During call vaccine and to generated approximately of from the ongoing our revenue revenue related the contact generated COVID-XX tracing

discussed, will through previously an be so the our As pandemic, and to continue as quickly call able been center, we have long moving to to multiple we need. we've ongoing as by is during do groups a resource there

numbers. and both have again significant percentages, revenue last without very healthy, to quarter, as begun gross indicated our margin we COVID and normalize total are influencing we EBITDA once Our

Our XX%, gross at XX% EBITDA accordingly. the came and and quarter margins in during

EBITDA $XX.X came gross $X.X in quarter respectively. amounts third and and at million Our million,

oxygen our growing great ongoing The We PAP sign vent revenue, the which well recall. are products as is pandemic our complementary while related a have continued PAP that the national circumstances significantly our to from diversify businesses growing. and to the rollout, are business COVID as unique benefiting and

XXXX. XX% of was approximately third revenue in quarter XX% to compared our quarter vents of from third Our revenue as core the

our the SG&A to all totaled with volatility when the impacted positive as the quarter prior-year the and activity to had impact million year. Company of third $XX.X are those at during people amounts comparison, compared and hiring Once more going grow staying help our again, has on by once stock current quarter COVID-XX to $XX.X a Our for supply in serve committed revenues, patients. million approximately We again the are price XXXX. looking

approximately patient competitors buy took continue the see on and monitoring cash million Veristat ahead where PAP we and providing the during cash used we issues, us grow. of for to model X% become have most $X and of the We an care, the remote specifically business to any been the country. purchases. some use While we By The business ways the quarter has of We current took kept folks has patient labor on that growing market serve. getting opportunistic not clinical were of to trend to able to great the care to of have competitive, to continuing challenging, on our additionally base. were unable opportunity our equipment as more such significant issue opportunity culture our with vent supply seen chain around additional capture we uses our

CMS and its audited OIG. are Moving claims, to issue CMS related on the our contractors the of appeal necessity continuing and to process the the medical through patients NIV to ongoing by with to assess OIG work we

filing first of QIC the in by to The be weeks. CMS’ appeals appeals of round will next contractor, was Company the and the upheld couple

an hopeful are this than more of that have adopting We clinical round will individual position. OIG the review rather

XX be million. two them take the and resolution. total rules patients, worked work various matter for any passed CMS patients levels patients the the includes failures review, and complex XX being to to were the if through other detail arguments, this four-year Of appeals appear be be of reviewed a appears as time The in it look-back related amongst it reconsideration exposure would XX and be window, continues believe eventually as the all currently of medical some to As not continue to CMS, window. by reminder, them many will has the these the and patients final outside and through being a ongoing and ALJ, these of have $X confusingly, with liability will four-year been reviewed that of qualified look-back upheld due it which process, to and will audits, by of reviewed These, appeal. to are accrued prior all Company CMS overturned ultimately are

to We opportunity diligently CMS. input been We process group things and the formal relationships. analyst to this have during both it year. first banking are to working attempt the we to road prospective wrap to this coverage establish visiting again once appreciate through formulary current to a at existing buy rules We and sell I'm begin the turn NIV, shows to Casey and our industry of with taken with side time, and from non-deal At investors our provide over related this up. to support ongoing and going conferences

Casey Hoyt

more to hard our With pandemic. at patients access this nation's by, position tested creatively to and respond partnerships Whether filling perfect are puts to access for physician referral healthcare people deeper time VieMed's Todd. by home. sources beds being hospital when engaged in conditions system a record through needs to being in has to are the nimble the capitalize in develop opportunities. to clinicians, or care the designed of treat to these hospital it come a country Thanks, patients certainly us been throughout we at our seeing be to on moment's notice position track more

Our is placing success measure utilizing blend in experienced home touch to high clinical value the clinicians prop proprietary by high our of the tech of partners. desired perfect with data analytics

move in we view staffing of being bolting as programs, staffing to As on healthcare impactful division these we VieMed ways. part two the

the clinicians the a second, staffing we a treat constantly organic growth which be pulling will will future and VieMed's of placement we the underserved clinicians that sophisticated the the on growing proven rate. have will growth the levers largest referral sources the dedicated of strategy developing throughout COPD on are of our will These recruiters year impact demand fulfill and requires throughout engine dedicated end we to be to fueling our with our growth serve; Company for more First, the population.

Our our is as business as bright ever. outlook for

market in where headwinds management expertise. the perceived a have an of capture unique rates. and an at for clinicians, at are our the to as service, We team increasing Make it, industry opportunity healthcare our environment exponential considers share our VieMed, we no our demand about mistake

privileged pursuit many as as are help financial drive We relentless This success our will possibly we to resilient remarks. continue ultimately, in be we to concludes our serve. our to for and shareholders can, prepared people and that

now for will Q&A. up floor open We the

Operator

with Markets. from Our Frank question. first Please RBC is [Operator proceed Capital your Instructions] Morgan with question

Frank Morgan

have business some on provide anything as what anything guess Yes, OX that you see the my think about in surges, foreshadowing recent you my for your us question, the Good and really here, question. can of far surge, there be additional I when for most point do how do it it morning. future, seeing different you're to PAP? some fourth has adapted any at the I guess that the this Delta and -- we past another surge to might first how or in the and so on comparing that, NIV the if adjusted is color to relates point, first That's and you quarter

Casey Hoyt

I'll on to expect or us, to certain different say it in hard is times, back the through place, I getting we’re to in the areas because in Delta with really them, Todd start, these was things, track the just environment wants. access points to so little it's of that, was chime just very we better guess, and of the that in and as it and I'll July look, out backside know, compared about as and track a have -- the management that got limits he original tools surge, spin down was Delta of and so comes but was actually, if from record go Frank, -- if to would at different we and of harder throughout this well, at pockets certainly will, away. we as just of there by our what the -- turns let bit back and difference evident country was you where only and kind doesn't then a just surge, -- little the business the it I in you're different to that of once for the up months, and slowed one that place, in indeed track operate surge optimistic bit points this on, time

business. once be we’re over that but it'll our good counting does means, happen, So by the is the not sitting pandemic any chickens there it for

Todd Zehnder

that, as to of times, final it reps our reversal; although we versus than July, good September, Yes, how of piece was are look better of it at trends many onto our best October strong one was add we the not started. the that lot patients and your good cities Casey at had said, having question. will, struggles, a saw you in hoping having new and positive back still year-and-a-half access if is the wasn't just fact access a was a part pandemic sign, since to get to a October from we although last so that trend and and full in struggles July like the as look that probably month

Frank Morgan

guess and talking out pockets I watching labor obviously closely and that address? I and your know mindful call you, Got here, is our are more you but expansion there margin here, or that different providers would more all issues, mix any are having of labor to and you're nice about

Todd Zehnder

or we and which salesforce. that XX are so demand, Well, between I of -- and see respiratory high XXX our in clearly, think XXX we or somewhere probably very all XXX, are employ therapists in

salespeople RTs, drivers recruiting are and finding good take key the as a We've there, care has our -- in for biggest are servicing the patients, job to our business not more anybody they very high become it's retaining us. demand so therapists an patients. a done as the out us issue of to need it so finding and growing for that's always of So, but

this our service just own partners country; states, to RTs patients. difficult partners probably our that many the just of it and to had keep needed exacerbated at problem systems, so bit employees had in. staffing other rate is looking for not around hospital hires We a to need during have have division. all, little coming just more but new the we our It crisis, We've the

a heard that the time center group, definitely RTs why So that throughout was the for other and that while it some just to so so that much front more are bring and fact is us. we ones we’re sure, for engine which business, into did it, needs we the recruiting it there's the are is muscle

Casey Hoyt

home bill our to in pull that but to thing don't person, other our business clinicians kind at will, to another a to I'll might RT if patient at a which some up home continue us lose is if and an we service. only be you code, we kind for billable that of just home a for The health. our of demographic, like need health, but for area, certain area, from difference our business, support add would between backfill a billing a bill words, equipment so has to look a the versus we you medical compared In equipment it's

Frank Morgan

hop. you. one I'll and Got Last

becoming mentioned to and a Thanks. like Any in that you clinical hop. much a more address, of, on you'd like to criteria. how kind trying laid guess, color world, Just in out, I'll I proactive perfect see

Todd Zehnder

limited four topic and through like, what mean, easy or is the incentivized that is CMS Yes, trying making our we for additional CMS had support time, supported make quarter, make coverage reconsideration, Medicare, using giving sure -- we to medical published. to is have processes will going recommendations that is and is at reconsideration, to waiting to full some tackle, ultimately an should opinions we to what right, there through are with vent gone get different what through the our get we to our Dr. could hopefully, data hope group a it this get three and on Frazier -- during few right that vent point NCDs, CMS, this doing file this is it. our once data we've put reconsideration study now we we our data on has we’re but data a tweaks quarter set fourth hemmed all are to is the at and we’re be NCD up NCD would study That so -- not the at it's that a with It filed a real as finalized, and as in it is discussions potentially should in to on sure goal. for coverage CMS. and we’re look for a finishing just would group the it I are for for and not file so study NCD forthcoming full which is and a anybody so first get regarded what data to

Frank Morgan

Thank you.

Todd Zehnder

Frank. Thanks,

Operator

[Operator Our Markets. Please Street Instructions] O’Neil from with is with next Capital question. question Brooks your Lake proceed

Brooks O’Neil

any I you you morning, Good a apologize. minutes talk I about; short could something ask talked I I on around few later about, circle can it you about and the first or VA? you've so me all the guys. you either just about skip got Sp was answer. progress thing, back can with late, give we at did if already curious

Casey Hoyt

That's We should Brooks, that to the of the Healthcare we about didn't so wanted seeing our we’re Staffing. study, NIV that's now, it hear country shift, why on still an pilot all launch mention been saying, -- of but I've about to already years I'm going probably the script like, we guess into a a fulfilling facilities, it which in a about the hesitant from to staffing, ding. were have do update this we with why They're in beginnings across division, because you. changes did ding, I'm work? which about the because and ding, them Brooks, -- to in guys good be be we dime, XXX to the past I VA staffing a facilities moving demand, been look, on lot and anything of placing it whenever this so in that, that pilot VieMed new need that we’re just A so have talking about mode. seeing, do pilot it's you you data a thing we’re look, lot, were study it VA those ding, has been that's does The fixing published talking mode our talked were hey good update for and talk the somewhat the nurses changing. contract staffing. they're two VA. with include for making news, direct this of success that are year, need but that

Brooks O’Neil

for guess, run curious, already I'm on, there's me. to OIG rationale any explain they're secondly, Perfect. OIG sense for could conclusion secondly, different think what OIG some now? doing customer this, CMS A) always you puzzle right helpful, you come these the should A) the direct I'm from That's look that has of you I does, and what VieMed then, has business, understand sure but, the why over rationale about you do can and a CMS investigations or way why and you guys the impact then or it comment, B) perception the reviewed

Todd Zehnder

I the independent part, fixed, do, report thing, and to that on is that, is HHS and the of I no an of position. so the an have XXX% an On their OIG to we the part to they've XXX% position understand the one it's of us made because organization they and unfair we as something HHS first came don't has processes. pass any umbrella. no determined there unfair vent in get patients of so set audit so an understands understand understand organization else rulings that job role a umbrella taken, is is why has that but we because unsupportable, is it our They this that where which and the justification, fully they had picked just within are rate, in I understand their

this and for know not data the pick it these it money audit if done we and healthcare patients be ventilator they're our that system. different right have they for saves one than our and time we published XXXX, anything they with patients, at their processes. screen internal On on need ventilators, we patients, been because the lives since no, to If meet saves piece, we've second conditions, dealing the need is hypercapnic the a that and being it. other We supports

a we doing one Does no, the wrong again, and report negative not that. read this people so a some we’re of it take few and appeals, bit. for which, I -- make once answer have and to answer, thing, to our perception? rounds but can't determined have So think it and going right I'm the Company we’re patients to changed sure is to we’re employees our why continue position our our and shareholders. get nasty fight

Brooks O’Neil

Great. Makes total all good sense to up me, guys. work. Keep the

Todd Zehnder

Brooks. Thanks,

Operator

Our Securities. next proceed question is from question. Doug Cooper your Please with with Beacon

Doug Cooper

Good guys. Hi. morning,

Just you When final or one OIG follow-up on stuff. resolution on one the do expect then, other? this the way

Todd Zehnder

talking and a results that's we’re years. a a and reconsideration, the of it reconsideration of be on system. going front request can't of case the would of could and it we -- couple depending been XX ALJ, about and is next just a could go right chart file go to have may within to to goes won't good some on how it court have an which I to I how now, bring it decision Worst be out basically to process, -- could it it's we of a soon. by that it weeks, is couple and medical be, route, us if get chart, that's to Well, we’re that done guess it court case, it It's months going we best testifying appeals, system route ALJ a three-month to resolution that months goes, to down say claims. to get situation, we so takes for be which which long judge, depending the in where XX because have If ALJ, probably

Doug Cooper

Okay.

Just through moving sort -- it to hire out of the just sort you looks other the these through staffing margin walk can by what Maybe So hour of the walk be? then to people, bill companies? like. you profile and just on them initiative, the what may

Casey Hoyt

own do the but where That's on typical hope bill can important more we for -- with source, used these one facilities contracts, and year. staffing understand, a the direct uses XXX the where system how I business for these the that been internal to strategy, that seeing efficiently. then to -- we've recruiting help system last people referral we’re in ways the of more here piece want doing that Well, that are to VieMed the one, hospital VieMed to the help they sure. placed contracts -- -- in organic get your we’re platform into and to to bring bill we we've contingency piece That's traffic beefing our that you'll and hour. hospital two -- also people, we've nurses so hospital up people yes, what the or with find grow as that that well and The What they us, with is value. really you be displaced the Doug, engine, the you per educate folks one we doing at -- growth is our bill, it'll folks number them, for need without they they’re number need

Doug Cooper

process is the you is actual Okay, what these for to process? Are going schools, or people? and recruiting what the of sort

Casey Hoyt

definitely one and do all we’re They've training efficiently That's proven. -- but secrets give guys been look, call years, many bringing are but of tactic, are other this. on there's to we and can't here, folks that how Doug, this doing recruiters next-level them our in away for these yes, this

Doug Cooper

seemingly labor the because on upward and wages? pressure all on any see you just of do around, Okay, shortage

Casey Hoyt

getting -- across we've and a just we’re traveling not off normal that's lost us the chasing recruited people, some and now. come clinicians a and and problem that retain those we’re already with job we’re these handful don't increase mean, going rate, nothing have or I but folks double getting nothing -- not material Yes, we’re really contracts money to with creative on make enough but going We've are so with predict for so but again, a about, back with go that actually our to folks. of packages, competing travel we to right contracts have talk that to a right lot now, that of to reason for are that of the clinicians -- those that's to go ready out our rate country going

Doug Cooper

final good. growth year-over-year, obviously Okay, and my just XX% very one,

is double-digit expectation into can Your you year? next that organic growth maintain

Casey Hoyt

Absolutely.

We are hopeful.

quarter This happen, we say and growth back months get Having when hopeful sets a While great. to a us getting was the always growth organic can't off quarter. we growth, which more X% early traditional for up set getting more with yield X% sequential we’re us that start like growth going rate. to rate to top and will for other, to good that hopeful we start was started sequential so that traditional it we up a stacking each It on bang, it's of growth is really X%, are up and going more -- rates. to those got July out X%, we in can great VieMed

Doug Cooper

gentlemen. Thanks, great. Okay,

Casey Hoyt

Thanks, Doug.

Todd Zehnder

Thanks, Doug.

Operator

day. today's the for session, also lines your time. concludes and conference and at this you also this participation, end and have have a We may call, the good your reached question-and-answer disconnect you of Thank

Viemed Healthcare (VMD) 2 Nov 212021 Q3 Earnings call transcript