VMD - Earnings call transcript Q1 2022 | Viemed Healthcare, Inc.

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Operator

Greetings and welcome to the VieMed first quarter 2022 earnings call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the call over to Todd Zehnder, Chief Operating Officer. Thank you, you may begin.

Todd Zehnder

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

available for including financial started. the statements Casey to quarter related get financial it to on first SEC’s first over news the things the The release, website. turn I'll are

Casey Hoyt

you like we care you, for of behavioral Thank everyone. professionals, class call health to dedicated staff work patients deliver specialists, in begin within and respiratory living tirelessly acknowledging to today. best the team therapists, who staffing our Todd. communities the our joining support by administrative to Good the morning, Thank We'd serve.

XX, to over March XX%. VieMed the of our our grew headcount Compared employees by grew As same family year, to XXX. of total time last

the unique company and certainly amongst in the ultimately success to continue from good contributed to investments that to our our talent culture battle believe able for acquire our We a differentiate drive being to and has throughout the delivery people our country. people helps This competition. model develop home dedication

enter territory goals programs, VieMed are this territories able to beginning middle achieving result of the four way training management, the on Through a set on quarter the our healthcare growth robust were first evolving the platform staffing, we recruiting inside our of hiring year. growth, of to XXXX. of new and new a hands in As at organically we

staffing to sourcing resulted has the the to addition healthcare successful generated over an contract full that million division, in that high experienced its VieMed revenue VHS strong generating has we team In provided, In an built in as incredibly operating quarter start demand X internal and recruiting services. external first at revenues. engine activities

contributes We historic with about geographic combined are service and very during optimistic organization. growth growth that to in growth The staffing healthcare business synergies strong VieMed offering our quarter the our the activities. and was exceptionally

the of personal finally early As to began face witnessed our face we normal to with Omicron The momentum referral providers differentiator and to key our increase that return alongside impact in touch weaken of of the the in out the to of interactions a our level quarter, course variant patients care is of A is high model the business offer with in sources. we products. service coming contributing strong pandemic.

our well in is care Underlying behavioral the tech presence engaged by health now platform class are quality. as for technology home high benchmark the We the in in physical space our recognized complemented professionals. our best respiratory

in As we that providers out payers not care historical capturing differentiated investment contributes these our our arena. that robust model but to and also services based are significant data mature, demonstrating evolving it's only thesis, value value care proves the

the the unable are with strong of has we competitors times recent our needs evolving relationships the to to meet and to providers. benefit when periods, from product services traditional patients momentum. factor providers, the and innovate incredibly continue of excited needs lines a expand critical suppliers success and to been our Exiting payers. in Our pandemic constraints, meet patients, are In the

inventory share back of the needs. to the our and so. existing offering to and that longer, and population resources and closely commitments their market hope catch were unable to we investing sat providers relationships are recalls others the eventually with in existing patients chain, our meet We monitoring referral to persist obtain consistently sources By up has establishing expand patient's As hurdles demands VieMed of to supply and never new, do chains would by supply Unlike treat and chain when the our in able were deliver suppliers industry, care care. adequate strong whose preemptively meet current we many supply unable were future to market. others

mix. diversification a revenues result, grow ancillary at impressive to our our portfolio continue to As of meaningful CPAP an contributing a and rate,

that to full the believe capabilities needs allows referral in to sources. our ability us We term, the and meet suite of demonstrate these our long also to providers

the growth result revenues our increasing offerings, diversity of up make as a now business. and non-vent core diverse and of Additionally, XX%

to ventilators of X.X% reimbursement we and the see and likely seeing as the Within And with noninvasive a We're always XXXX likelihood indicators to once the XXXX round effects include XXXX. Services next views in positive about Competitive to program. based of becomes the moratorium Medicare asked has for now expectation are life regulatory of early such again Department these that of passes. the would we're in public schedule environment, signs. Human saving health The often We've mitigating it US possible the and as around that increase extension of be Medicare maintained continue inflation, emergency trends positive each month round sequestration determination. Bidding relief devices, Combined the costs. Health our also in fee for irresponsible less the on renewed increase

support recently and inability to CMS, detailed delays competitive excited bidding results While the of that upcoming savings we publication. current potential the formally submitted the in of the cost to our to CMS indicators programs are our and home. the outcomes achieve been has are we Further, A share will from strong decision expand continue to peer demonstrating the have demonstrates left associated the services the that NIV with review, services. upon initiation invest products patient study to and savings positive in desired research for and and to historical third further will benefits we be products

to continue be our capital deployment also strategies. We in methodical

the of we have opportunity incredible we quarter, about executing that given an now strength been at of repurchase the see During on as the excited end organization. what value were and shares, buyback the our to

over us signs our Chief and our Our are capital now call coming in I'll regulatory team M&A investment. well more will Todd active Operating pipeline thresholds strategies our on established for return market the evolves. be also remains buyback, operations, assessment down that as turn with levels to our the financials, Zehnder, and valuations are views risk allow Ultimately, that Officer. line to more landscape, top the to back out positioned on With the with

Todd Zehnder

financial well five results the years thank you, are as website, full dollars have made been SEC and right, reviewing US Casey. in SEDAR. All the the as available results all In on

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

Our the for sequential business growth core was X%.

major seen oxygen. We again have and our once growth PAPs, lines being vents, product solid in

an therefore in opportunities quarter, down we short these with this up still pursue unit million vaccine tracing the our approximately in a first continue the sources, our we generated quarter $X.X from place have the revenue it or during at period, time, will established of primarily very the revenue in center. can During to generated call other future. We scale

margin percentages, very influenced and primarily our both and healthy, are gross again core Our EBITDA, are once business. by

notional influence the these growth is our lines priority be margin percentages, main product might but business. some As there on continue for the to diversify, the

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

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

sleep continue from our these We to by products. ongoing are once rapid growth businesses they as national the rollout benefit again our oxygen encouraged of and of

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

the our but the revenue time, Importantly, to beginning each has more during is quarter. more product diversification show grown up and vent same

Our the of compared to in million first million approximately $XX.X $XX.X as quarter SG&A for quarter the ‘XX. totaled

some have seen preserve SG&A, have effects We margins. expenses inflationary the managed but on and

more around our to growth hiring the people and continue to country to expect model serve We organic new areas. patients expand

seen traveling on we pressures clinicians As the continues have the in to decrease need previously people. for a discussed, our abate. Therefore,

superior to which folks professional the our our We to has successful key seek clinicians and business always organic to help support been out continue efforts.

For the was CapEx on The our capital approximately million expenditures. quarter, out fleet. we spread across product invested $X

group. continued supplier we As a have to grow areas all through diversified

flow, continue We this cash have million stay sheet that that strategic an working sometimes managed quarter. to funded certain market a cases, we $XX.X prepay is to XX, share. increase serve the products for giving we in of us with and quantities, strengthened issues but the base. in balance of have purchasing chain We to March and feel This supply we through our goods, ability our during larger patient and of all will CapEx discretionary growing $XX.X we again means million. capital of once buy cash balance also the in At had comfortable overall to and front

which needed term executing all very once gives company tools on and buybacks. stayed of the to remains and begun Our We our underleveraged, and through efforts. us organic inorganic total debt have the long company grow million, $X.X at the significantly stock again we grown our have

As approved efforts disclosed previously on mentioned, the began board buyback our buyback. we stock

plan. available had a we X of of of total shares so million buying to purchased on to the XX, good out were We back able March start. March As shares off we're XXX,XXX XX, begin under approximately the

does discussed, business buyback opportunities sacrificing of this but the we the not As capital our of deployment, mean that in previously are ranks growth. has risen

organically while able at our continued looking to this to and opportunities We have count. have reducing share accomplish and grow are been simultaneously inorganic

Moving the our claims. issue and NIV related to on CMS OIG to

to and the appeal work assess audited medical to continuing of patients process contractors We its are CMS necessity through the by with the OIG.

QIC quarter are of independent our review claims. fourth individualized XX review We review. this on results receiving during and final the from are round more again of back in filed call, with will discussed review their the hopeful days anticipate this awaiting next these last have As clinical the once we and a

provided the we've to in related to revenue quarter, $XXX,XXX have revenue and core approximately net range to two of $XX.X pandemic. COVID-XX Moving business, related guidance the our second also $XX.X on million to the to guided

guided revenue the core to XX% quarter second is organic XXXX. XX% of Our over up

seen have be we growth the encouraged the COVID revenue We continue to as diminish. effects core by

both visiting I'll conferences to We wrap have sell current roadshows up. ongoing time, things the prospective from appreciate to turn relationships. year. industry investors this analysts support over back At side We and it the and and and with banking this with our non-deal existing been Casey buy again during the through once

Casey Hoyt

as helped team theme to demand driven I'm sum acquiring, specifically of the by to to and say this beginning development fueled metrics as strategies driving first organic and on proud To that pay us since sequential VieMed, of Todd. take that future of our the our pandemic return I've the We up however, management At that the of business. ball attention eye overall by execution course our developing our recruiting, to Thanks, it the would to growth. on the got holds. close rapidly increase we do improvement what I off relates processes quarter, normal point. growth relates performance watched never talent. it the very talent the

think I about our growing a them ahead buckets. the into for categorize different four I can business As strategies in way,

populations report execute areas on soon. businesses an different just in payer and have with yet payer a We analyze different growth in we're patient companies achieved that physically with don't acquisitive way know possibly finding through these footprints. our this continue that in acquisition and to to our we on expanding strategy have contracts getting faster We yet. be hope that can First, geographical not

partner. hospital of are in to and a drive Second, position the underway solutions partnerships. as Being the them Initiatives patients. our to to to well way help population be referral provide the viewed that further of to growing sources, allowing Medicare valued the are continuum to a from facility in position home care we treat

development and referral examples our providing be must still great enough solutions contracts. expansion of nimble that to The our of as we staffing the health national willing payer business. And the us offer type business divisions are core complementing behavioral have of highest demand solutions that partners. provider, this for lastly, deliverable through Third, while and

want in of As can treating lens future. VieMed organization more patients [Operator look drive in four join thank to saves are piece This of world, to today value positive Instructions] of answering concludes puzzle clinically through payers money. the These remarks. time essential will VieMed questions. areas the to prove our further drive based focused the growth a becomes forward value evolve our of into prepared Thank and focus as you. call way outcomes tremendous a technology, an I for and taking everyone populations who that in data that ultimately a shareholder large the for

Operator

first the O'Neill Brooks Lake Our from coming Markets. question of with line Street is Capital

Brooks O’Neil

might you Thank I'm relative very be that middle of much. sort morning, guys. way, comprehensive, all you you curious I QX extremely I I core distracted comments, of your by excellent progression you have would the And Good prepared April to the at to commented saw questions. helpful. comments were gotten business. very about the if during any a briefly couple in but month in have the which have month thought

Todd Zehnder

with info. began I the physicians with that, Omicron of can a our we No, obviously employees had we it. Brooks. you didn't make just swell went country. little down first additional while bit And a affecting the any bunch referring But about I quarter of it mean, and system, up hospital give did that not comments

So February were we've best And which January I is each top that other March back trend. March, to would two very on pandemic the of that and the back stack say April, seen lighter began. months you those good are if and collective since much a than

Brooks O’Neil

Great. April? say hoping And pretty like end say to much was would is of returned sounds it something like I that. business normal, at you you'd the

Todd Zehnder

there bunch here it's that yes. restrictions we've a out to I say say as can't we think, seen. normal I'd And around mean, of having I close as we're sit to this things some? Have changed grow some, mean, Yes. we we I we world can the Absolutely. pre-pandemic? we back changed but whole are like where country. think the company and did

Casey Hoyt

the pandemic, to training say about now. training, of add you and talked the that that, were kind a I really sitting when evolved will, the I've throughout we programs we if lot paying and bench, development on acquisition just that would right are talent off and

to we along XX reps, whereas a normally lot a have training or which that we're We’re and five talking we seeing a sales up, direct it's now about the six next and show of of that month, way through seeing superstars per correlation our development we level, year. my XX would we're the added mind project in were and all lot last having

fruition. efforts we're seeing So a to lot those of come

Brooks O’Neil

kind constrained to your aggressively other ability you're I comments or not or Great, need that Casey. of forward. other took mean, therapists respiratory I from team members professionals And your grow going that you feeling in hire the to the business

Casey Hoyt

like their recruiting out still things the of to efficient be to to it efficient And as out world. shortage of our that relates good great taking that. very proven day internal or recruiting had, same and kind that the right that's clinicians effective. Not day anything proven It's sales be be salespeople. is always is that the staffing -- But more sales managers often to a just healthcare force convert the finding just with we and platform people, have to monitoring helping we're trying the it’s the VieMed constraints labor with news that's we into

guys consider, these so getting things stride and day but I gets their still, going better yet, are haven't would complete hit and every just better. And

really excited I'm that we made. that change So infrastructure about

Brooks O’Neil

Great, great.

I'm little So older. know, you getting guys a

there? kind pre-pandemic. recollection XX% not of target? to organic the that sometimes kind changes can business have I kind right? I in as What's were of of goals would the in you that the tougher? think to might scale, that growth XX remember that it been the reasonable Am number get have And think kind about that try to that I in numbers I be that place gets back a all of But -- there and the Recognizing thinking So a is your range.

Todd Zehnder

think those all are I fair Brooks. comments,

little of that that the I in sure not or year. XX pandemic, we got We in up every the -- range. is are change XX% always it sure And not but quarter bigger look, about to, that's think if go the I'm comment think of pre potential now sort we what the I the I'm wake of -- the we're just becomes market of But striving as the doesn't targeting untapped. what as much the law for. is more every right for. to as we back That striving as number that difficult. mean numbers business, And not that define what we we a bit XX% what is

got our we've plenty continue need are who just to there on So execute services, of going patients find to to them.

Brooks O’Neil

great. that's Yes,

ask Let more. me just one you

of X your the sort am with the recall kind I of going of what's guys? quantified in remembering of is out a you And you range current think sort bucks. I review for I of see with OIG that case exposure Again, correctly? scenario this that sort there that on of million worst still maximum those

Todd Zehnder

That I can't $X got exposure. your I to total continues to just had one hopefully days. actually And remain. it at hoping said, everybody a you that that age, can one. XX million that on of what update in to we're correct was And kind up, call like you review but it slip next probably we're anticipating. I point. their And here the That's get we old

Brooks O’Neil

Thanks there. job great Congratulations you're out on my great. the again for doing Okay, questions. taking

Operator

with Acumen Our from question Capital. line Nick the next coming is of Corcoran

Nick Corcoran

Good morning.

will year think on one was run a was I of in color the typical Brooks earlier expectation think be? quarter? what than the question give the you the I addressed thing the bit little from And most that bad of happened asked quarter have. for Can don't what expense rate. I you The debt the higher maybe your

Todd Zehnder

take this bad Yes. quarter. percentage Thanks, in Nick. higher We debt a did

insurance deductibles people quarter change difficult the forth. so most always is plans new insurance and with just traditionally and have and We resetting the first said

it's the of collection getting on at and and So And workflow better been looking us for that how we period a time, of need. a standpoint. billing our for from toughest kind we're we've new realizations what a time much system reserve at

anticipate So last quarter. remain percentage we should I if percentage would the a in get total the our annual than higher year. took that not same better

our consistently We better points or last XXX have basis years, probably efforts. few in gotten the over XXX collection

guess, a year that a I'm It's remain more year that hopeful going consistent. over accurate debt to we’re bit, on just will I'm the be that So pretty confident I happens. bad that quarterly basis. little

Nick Corcoran

Great. sequential we think growth strong can year remainder guidance do Like, the will should about And the that and bit? growth. shows you keep QX over it up? think down a How you then year Or your of year? growth come

Todd Zehnder

kind That's a what of ties well. as was into Brooks' question obviously

hopeful growth if starting this are continues. up. We do, And stack you're that sequential you to

our X% to X% sequential. something our to was X% think range midpoint around I was or, X%

don't on to that, back hoping day every to do you're range. your you If hit. have guidance used We formal but guidance. growth there, to up get up That's to those we then that show formal ranges we to lofty XX% XX% way not that out back

Operator

question is next coming Doug line Cooper of with Securities. from Our Beacon the

Doug Cooper

guys. quarter. morning, Good Good

to model, year in back the end growth you if the quarter my looks to over the be XXXX. growth getting best the QX Just range hit core year businesses of this it'd in QX, upper

core about vent via So and patients yes, up XX%. pre-pandemic. The revenue this quarter growth XX%, year growth was

a the in is increase so and I particular, diversification, forth. in the What doing working. vent in you're great for is obviously, CPAP, the So mean, job patients outlook the oxygen,

Casey Hoyt

our in mean, reduction of more ultimately pre-pandemic. penetration is needle. like of mentioned, We up we and and continue what areas, to running, decreasing saw moving is It's and the to game the people, VIP the key it and Todd us. market hit getting studies that out are them XX% be the we, we've to the of population, good in that to no we're and way. the that like All which their walk to and underserved savings. really the next talk trained But hospital way need becoming way. developed after continuum different our got relates different there think in and really science that going business get an visits, hospital folks still getting extension getting leading to of as to I rates is data business of get to to core in that care finding to mortality hospitalizations different prove them the that ER VieMed the partnerships a I'd really inside no than

lead is the those partners And our use midst of in right in clinical ability for a the certainly, so now kinds And help we're discussions. staffs. because more to of yearning staffing just they're key to as hospital

the patients here home helping help you and next conversation can these We’re okay, further staffing, able help, well, a and the is treating unique respiratory into to but then with how we're we way. in

to really in that's on something another up And going hope just in ends that growth so we and And we to try be focus being strategy. that organic XXXX. hone on

Doug Cooper

new what going you're to hit for us that you into QX territories year? Can mentioned Casey, track this territories just goals. remind and your is on new the four and you're goals

Casey Hoyt

last XX or we're on XX. we're I quarter. either rate quarter as or here said goal, two, XX first is XX that -- it’s the April in from our sitting good increasing we're we the But new looking believe

was we stay are good year, first five, Doug, on that goal that. fact that And hope hit is close, for pretty that at track so number to and we're quarter so the added incremental But to we in sign last the the track least. on a four

Doug Cooper

hit us new idea And, the you would geographical of Okay. an be of the goal to at you idea. give point? Just give can of that what your, penetration us say your territories, US an XX-XX

Casey Hoyt

are It's with XX states and where we're patients. therapists respiratory have we're in patients, treating

but a in New can set a it, coverage, get the not of a really area new an just we and that on of it a new respiratory we is classify that that's an good again, area state. therapists, So in York, have New of of new incremental example new mind road, We into with kind it's down but that the hospital And basically to where new the of up a can reps, go, but just made starting goes it's that that area we new and about new not York. start it's rep, can't because state miles XX incremental system, rep but and mean use comes business a beginning But top to not that reps in how a to as come doesn't highlight I'll we're talk that the a area, like way new we hiring at we it change just is reporting business. sustain we're year because maintain want and because the area.

think you And sales do way we're the it's think tracking about just so, hires. I new right versus for growing so guys things. how reps different to our Those many

so We hunters, sales reps, assistant and forth. farmers, so have and we we on have have and

-- just it new just areas. just way. watch that for it's right, tracking better It's to it So it wasn't

Todd Zehnder

is have state used context, think other it case to to like talk in one context put And just sales add that and we states, the and the a when we I forth. I'll lot in of we about in eight And states detail Louisiana. of of reps so

think only we California. I have one in

that calling of in those So California, were size of right, in of population. just the states, know there's that both ton runway a and we those pure because

I that we density is XX, Casey right. to be but is those patients, in states think in available tremendous. just We're the So have serving

Doug Cooper

those contract? areas you’re get be this data in or Is national And does in? correspond payer you that entry ease some entry not to your to like of or into going a that expansion

Todd Zehnder

sales you've patients’ And so the all contracts easier always to good gives much Yes, force just patients take to a state got already, it go to referral a always impact challenge. it's more and into laws that's sources. from when ability

time pretty good it contracts. take to some done new doing insurance at and out model get So as there we've does state, us we move our into overtime. to But that get

Doug Cooper

one March My that for Is last you buying XX. stock started Todd, right? me, is Okay. he said back

Todd Zehnder

able live. Yes, were that that go date the was to we

Doug Cooper

Okay. you back? the average you was And you buy Do the of price stock have that? what would

Todd Zehnder

it. I don't have filing. the it's in know I

XXX, that. March mean, was March XXX like I I XX. think through through like It something --

Doug Cooper

continue you to buy if this back in And stock quarter?

Todd Zehnder

have We we end I we do. buy XXX. buying the pretty can't -- much the yet. the number every -- And day. continue saw was actually I XXX to them we’ve give just the numbers at I It but of quarter, been for average. give have to

Doug Cooper

That's beautiful it very for your outlook you you Nice. for Okay, for much. Thanks Thank great. me. guys.

Operator

Prasath Our from of is next question come Pandurangan. the line

Prasath Pandurangan

Hi, the staffing one just structure prospects good Thanks question. the for and have you the unanswered. solutions about talk margin core to my related morning. for business? business taking Could growth I the

Todd Zehnder

The staffing is business don't really EBITDA it we running, an think I margins the we're of the have. type exact on have I currently. depends contracts to currently, margin, And accretive it but

EBITDA I just think expenses. over of thus It the time, a be salaries lower could defined become more at generation as running a than revenue margin of instead it business just becomes and fee traditional of and we because been a creative we've or thus a guess has based as business been the more core piece of traditional a more be -- of more would placement I what far. staffing, gross business. But far,

quarter. did over a just top So for million little But in bit we don't have that a know the revenue do dollars I line it yet. a complete breakout

Operator

Our Street from Capital Lake O'Neill is Markets. of Brooks next come question with a line

Brooks O’Neil

about to there? miles of be territories guys, about I guide from and some you myself, I'm XX road Sorry, people and business listening to question, you're there might not in way of sure City, of road. you modeling XX a but in From do out down the it was how imagine, can number I'm total after think the the to the you that Doug's I imagine have? go New can lot down not know that Louisiana, kind rural this place I and miles a there's but York occurred any I And me think many what's of series people, number not left

Todd Zehnder

that, We're on to going to back Doug. you have to get

had probably to I the we've we're right we But got -- XX of guess those numbers like think And total it -- are some and not the sales now. it's of area. have one front in just in don't reps I about XXs in we us. in if not like disclosing,

to we'll turn at mid-XXs. you. further like no comments. it's to Thank closing for now just you So later questions call have would ping are time. I probably any this offline. the And to over Casey Hoyt There back

Casey Hoyt

everyone appreciate forward value. questions of drive to the nice and look to We Well, a Have for joining day. all shareholder thoughtful thanks, your continuing call.

Operator

appreciate We This does conclude today's teleconference. participation. your

may disconnect at day. of rest your Enjoy this You the time. lines your

Viemed Healthcare (VMD) 8 May 222022 Q1 Earnings call transcript