VMD - Earnings call transcript Q2 2022 | Viemed Healthcare, Inc.

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Operator

Greetings, and welcome to the Viemed Second Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instruction] As a reminder this conference is being recorded. I would now like to turn this conference over to our host, Mr. COO. Zehnder, Todd sir. Thank you,

begin. may You

Todd Zehnder

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

website. The second SEC's are quarter the financial news on release, including statements the related available financial

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

Casey Hoyt

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

best-in-class patients the worked serve. tirelessly therapists, As support who and health deliver professionals and we the the specialists, administrative we'd thanking dedicated team always, to behavioral communities care of living respiratory begin like acknowledging our by staff, within to to staffing

a over grew employees our to number As before. XXX family of of XX% Viemed increase employees, a year the June,

through of talent recruiting expect retention to existing our the by and and throughout to strong our top employees identifying labor force country. continue grow We

pent-up to supplies of demand inventory to investments are investing in pandemic. heavily response we addition in the In COVID-XX workforce, the and coming in our out

the renewed struggle demand are services clear and across a on Our that for the partners expect labor and the critical during shortages Overcrowding continue chain we that second quarter, facilities, physical referral It's robust growth care the the supply based systems health the to spectrum. access trend to field. to continue unrestricted sources and feedback from resulted in for to reinforcing that provide solutions home-based all patients. address constraints need we to care

We reduces study, medicare costs. by diagnosis, were XX%. referral awaiting now the to sources. and are benefits of XX%, results, care ventilation, health peer-reviewed the the are anxiously premier the -- we by improving the previously to hospital manufacturers, programs. innovative that with shows drivers confirmed Our non-invasive relationships our partners services care published partners by of and capture readmissions. published latest health to and real Viemed strong in is outcomes force solution ventilation Journal approach a data our the of According and while to home excited larger-scale labor providers studies spending publication significantly to overall are population our total is demonstrating health published well-trained The was that research death our share that Respiratory risk non-invasive Medicine on and with when the preventing also confirmed reduced Previously released patients simultaneously within week annual reduced of placed was first recently incredibly medical

the was the training release. official provided the with results our During for on in pre-published study robust June the sales second force quarter, XX of preparation

determining payers, and of fail lesser wait we therapy is other field national failure to executing forms afford try on and the to the powerful This after patients to study, with that upon Our a currently of rollout diagnosis. cannot team communicating message of get demonstrates new physicians need referral on sources very in therapy is the a one immediately chronic to respiratory diagnosis.

positive to also regulatory see momentum We the in environment. continue

the OIG appeal quarter, successful second findings from the the announced report. the we During of

best success While appeals the the half at a common a identified has opportunity always standard to of were we we our a successfully a the sends industry stakeholders message incredible clear year, true have maintained to of Viemed tremendous external buy that the In completely in care. that value. back the and findings strategy of on executed consistently shares first capital the report provided an unsubstantiated,

our addition equity announced to towards capital our of strategies As about key acquisition our levels, execute the the lead extremely report acquisitive potential to excited on allocation shift are pre-OIG stabilizes. We're strategic Therefore, of activities. transformative I'm with these shares two able value and environment recently approach closely working partnership capital to infrastructure acquisition a executives the when acquisition transactions targets our and and of currently developing number initiatives.

probable. a each that institute to and revenue without to implementation across recent having relief periods. As effects costs the annual our less passes inflationary quickly have increases in believe the We short-term create profitability. month of on bidding administrative costs avoid impact are statutory and cost increases CMS' reimbursement growth already XXXX also reimbursement counteract the adjustments the inflation expected environment action long-term rate The offset line repricing We top current of annual further inflationary competitive window are will Inflation-based to becomes impact. peaked. industry nearly round, rates an the the most cost in economy. regulatory to operating on the for that rising the likelihood believe the of resets process impossible in are

with costs force the significant organizational of support our our increases first labor most our were the growth. retention During half to of year, and the associated the hiring of in

opportunities the to an our internal our opportunity, their the create internal promotional many and careers Our helped for expansion employees people organic grow promotional organization, existing developing to simultaneously has us while turnover. minimizing within

growth. arrangements top of performance pace helped also talent has sales while to a employees with base with up Our existing good us keeping compensation retain

ways belong. seek to want all in that organization innovative to continue so where to create people employees our an invest We we

efforts new result. hires first extremely the impressive recruiting approximately from the benefit well. the half producing We sourced as to health of our continue XXXX care of during are external division. to staffing territories growth of of a as enter were able proud XXXX, one-third Our incremental new of staffing VieMed growth activities Healthcare sales in revenue the has the and Staffing we nine

We mix our products through non-event portfolio services. are strong significantly diversifying growth of the and

positive by our synergies While of margin diversification of also we portfolio. impacted product our revenue evolution have been the based benefits seeing on are of percentages the mix, long-term the

for as For example, the wellspring growth ventilator as progress. disease a the business serves states oxygen patients of

of the patients. and considerable existing length a ventilator compliance Our rates stay behavioral on health division on is having impact

national seeing currently our also connected are results XX% ventilator following patient rollout. We of remote similar proprietary from engagement patients to the ongoing technologies our

creates strong evolve that model of high-tech can high-touch, the relationships patients course over their care with Our journey.

recession we many cost-effective, While for believe and significant there slowing services possible sectors life-saving the investments, other a is growing that corporations for by are preparing and demand provide. we

will Zehnder. ability our now to demand patients our continue the the more We meet serve Officer, in over our Todd in call Chief will buyback regulatory in turn With to invest to Operating landscape, operations, need. and and the I this the financials,

Todd Zehnder

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

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

for business PAP’s being, lines growth and XX%. sequential growth once Vents, solid We've the Our our oxygen. seen in core was again major product

the the country quarter normal $XXX,XXX these only for COVID-related the as was the back Our gets revenue to for need have down seen go post as pandemic. we services

margin lines. both percentages, back from being healthy and business Our again now the to core are and EBITDA, gross just very once are

see be and margin growth up are ever-changing product currently influenced we to for our seeing. the continue profile We our that have staffed significant by mix

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

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

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

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

up we and are total pleased patient We to PAPs now the quarter. the revenue and impressive Importantly, more our of patient to have the in back doubled XXXX. up context, and greater active even further rental organic our an same with product is the is second growth vest, since extremely vent that our now The patients, the each this highest stat vent grown time, quarterly includes not growth OX growth. recent vent was but levels put of diversification quarter show has access To which issue that quarter since ramping see second growth our beginning more vents, is pandemic. beginning during the the

the SG&A totaled $XX.X to million Our $XX.X second for XXXX. quarter as the million, of approximately compared in

ramped organic growth up growing new to our patient serve model count hiring expand around in our areas. country have We and the

the like our most patient As to to seeing the our around products as we care through but see offering well we effects as We, grow product inflationary ancillary should offer as country. have to companies, of clinical count. are cost board, positive those respiratory much across lines, as wide scale, the possible a growing superior efficiencies effects continuing managed while array continue of

this as to all The major million to For grow continues continue a diversified through the our manage be products of approximately $X spent quarter, we on CapEx supplier expenditures. all capital lines network. and invested across product we

the As we managed recall, the patient are adequate pandemic, as as our happy base. to we through growing have that we maintained have lengthy service well Philips supplies

chain issues we've cash high a organic once We've adequate levels. all a to We where maintain diligently through seen the inventory as quarter order CapEx monitor during will as future again is flow in to in of growth couple continue patient supply funded years. in discretionary the

We sheet, capital million $XX working million. balance where overall June a a balance pristine had have XX, and we at of cash continue of an to $XX

on Our million, remains we have the continued stock executing and total buyback. long-term at debt $X.X

the quarter, mentioned disclosed last on previously buyback. began we buyback board-approved efforts As our

During bought $X.X expenditures we XXX,XXX the second approximately total for shares back million. of quarter,

shares June X.XX purchased X out million of shares the As the XX, plan. had of approximately we available total million under

organic that all to stock we've remaining execute on while low our pleased company. leverage as strategy, growth as are an buyback, our been We well able extremely

related we are continuing claims. process to to and OIG NIV these issue claims, our on results through CMS work on the finalizing of Moving to ongoing the the

the on factors are going that ALJ. they actually the patients whereby of company results for has question received the these several next medically have necessary. the that from is which we during qualified were second patients, the appeal ineligible been ruled in deemed the level contractor, deemed independent the to and quarter, patients eight Importantly, There filed

issue, resolution we has the $X.X review to this for While exposure million. company seek total a to to the continue approximately this reduced

all range, related Moving over our to in guidance net the core third quarter. $XX.X business. to provided million revenue to We've million the $XX.X

has revenue things core XX% that, XX% Our to to quarter turn going the of back over third With to it XXXX. I'm over wrap guided up to Casey up.

Casey Hoyt

Todd. Thank you, Okay.

was giving to this conversations the back partners the some and are the home to more see beds. back indication less partners, making our growing Health despite providers pent-up and patients to for to relief partners. second the demand will quarter, strategic getting Viemed, home to hospital but health physician they Unfortunately, there Hospital is their filling population many a country. patients all trend trends we At programs new Yes, the began soon. as we'll certainly receiving driving are of them hospital with of home the Medicare been see care demand patients be all-time have that of and the source treating at profitable. relief interesting volumes. that patients these continue in us the with Medicare more any with our tend doctors, has in pursue kind the ignited anytime be an demand. no from referral be the just hospital to hospital majority greater systems developing needy, This struggle really we expressing across systems and from partnership high bed hospital our capacity seemed COVID around country Looking bed and way

treating our through trying and [indiscernible] health rate. who for organic who collaborate across value-based respiratory superior companies fast it's savings can with be and technology-related are many with the looking is people, closing, platforms reflects and these Our management We've than In collect partner companies, payers we a to at disease human great strong Again, management company contracts. and cost a patients with Viemed, partner disease growing see at growth been has leading as clinical in country. care. our disease with leading are thought positioned who other Rather companies all higher the as positions uniquely strategy the care to as platform treats technology and every strategy of to volumes begun perform leader that population data ever to to touch. a is

We our have employee base and growth. can to that retain a we proven best-in-class recruit support

While experiencing this creating capacity reduce our on to cost laser-focused as team is that through grow challenge. we are management this we maximize inflationary pressure, operational our look exposure to efficiencies help

With help we have diversification doubled patient since the pandemic count of our our products, began. the

and a So at Perhaps others opportunity seems the call this all-time satisfaction the continue we prepared XXXX do all you we we teaching we look beyond. to major questions. throughout throughout bring to all have answering opportunity to you. your shareholder and as fold. thank organic to our to look regulatory want bright clinically-oriented of taking company, This low, an so time communities the headwinds a that add everyone we in huge yet piece join is grow the We expand Viemed. have and on placed to our through into have future we see model further acquisitions, of them in and concludes forward today Viemed and to for value that our forward remarks. call With who to patient I trust extremely thank brand and for Thank our to most serve. our exciting the

Operator

Lake time At from a Capital of Markets. [Operator session. Instructions] with conducting O'Neil be first line we Our question Street comes this Brooks will the question-and-answer

question. your with proceed may You

Brooks O'Neil

Good guys. afternoon, morning, good

doing. sleeping on was there. I'm the all I Good good you're progress. excited quarter, job for Sorry

Casey Hoyt

Thank you. you, Brooks. Thank

Brooks O'Neil

of in revenue absolute as But the So let's doing a today grow percentage aggressively are to you to you're terms talked the the dollar the drive you continue a I'm line. down things. you maybe just about Are the thinking SG&A guessing what's year? what expect absolute guys of future, talk about line you think in you of stock on, rest spending in And growth. it, levels? about to expect do to get? do reason And about the the about SG&A couple thinking SG&A is organic one dollars of jump is that you how going for

Todd Zehnder

as revenue. and about we've way I'll Yes, historically answer is, percentage think always The been that's -- of a just because that, gross revenue monitoring growing take we not monitor ways. amount, in both it our We're the about Brooks. always And concerned G&A it was have the we always as analyzed faster.

call, things travel an of storm. high, somewhat is because those are and period that money, then new costing the I'd I combined are an we on to, all think more where retaining always it's us on what commissions all-time perfect with turned what we're I I our again, at the And costing in mean along money, more is from a seen, people things hitting items. historically of inflationary growth all-time expensive the engine like at we've everything guess, fuel hiring people high. is just front-end and more and organic growth a is

at are the from much half stabilize G&A out managing We possible. the what We're that. we make in strategic back a and sure that getting year to of looking as our dollars headcount we're very as the be revenue of contribution can standpoint

the in of level at going the be be. want trend, we to it -- margins little sand but future want where them because sure going our we're make those fuel the quit to putting have the to So not growing get half G&A, more to our a the revenue just diligent to not we a also reverse it. growth. We we're about for back to in We're head we're is bit can year back

Brooks O'Neil

perfect. you're understand That's sounds that. Sure. I like things. all It doing the right

recall, like service just about great if about you equipment. on patients, will. the availability good if but to Let's the difficulty you sound comment labor. sound doesn't bit availability Phillips -- need but but people a having Obviously, talk getting having will, finding out of of little that, like doesn't equipment It talk you're that, there, you difficulty you're and the

Casey Hoyt

both good Viemed our good Yes. of respiratory able is and executing The to staffing new Healthcare They've so We're we're quarter. clinically, on gotten at what basically understanding doing, a people points rep, being the that sales forth. really makes with work really to very hire successful on Viemed back of And second division. therapists, them the workforce so the those. pleased one-third in

We expect that increase. number to

our frees of take to internal folks at rate. running really manage to new and more hold expect a off follow and it faster more our recruiting managers, pressure efforts, less up accountable sales get on people which regional up these them We current to people really

-- staffing kind of So our a Viemed like goal recruiting to now, effort. is we'd Right combined by take over by XXXX, efforts. it's Healthcare all

pinch fortunate to to that people. be have not So very to resource a in good find

know, you've we and As is get to with we've faster up we Brooks, able the new organic faster incremental find add that the The nine running, areas for to new driver why salespeople, strategy. while, our growth this you us that's here been a been year. and areas

As was same -- it still relates story equipment, it to the last it's quarter. we as

our for equipment have We patients.

not to got We've have shelves ready need a inventory this on equipment for been in at out the not We go to point. put future able growth. patient for

began. waiting patients, the of that. We from list since we lot patient recall came sleep our really Phillips able to rather country and doubled began, from out wanted buying who were a go to do and in patient count. were acquisition on going the the to it money A movement companies, spending on those -- pandemic sitting whenever capture strategy, Our We than needs. out the was do throughout distressed

as they've that thing any out only got machine back right our patients. into fix got now. we've at and have are pleased we're back to the internal a nor where We're running, we've get we of it back the are the to it of is we're get that. got get up to back not then machines by And we not our Phillips, an them foam the is bit get that on the to process field. But with sources struggle going affected and of out them where little restraints with so But referral having to

Brooks O'Neil

Perfect.

more. me just Let you color. the I one ask appreciate

much you've you the of, pretty $X.X blow like and middle in principle say, got of just listening separate is under about you to Can future kind have do exposure. fight and feel to a okay, end? call point estimated our important million, meet that if move was OIG game whistle terms about investigation sounds it point settle the properly, let's you So talk the the I what you kind that control, -- and how of future at think this the in Or ways. the you and off it better for of

Todd Zehnder

-- lift already is eight down latter. patients. about this pretty point, truthfully, filed about And the minimal. point name just at this we've to it's it's really our that at -- It's We're the talking It's Brooks. the and ALJ. We with

basically, feel comfortable outcome. just government a from about talking us which a very we and that we'll So patients, specific judge have the and anybody it's eight positive

now. time truthfully, feel issue is want But that clear we we've now. And spending time this rearview the have we on race relatively this, we the on like it So finish kind is of to name. definitely minimal in mirror that pace health the whole a our and at spent outside the

gone But thing work go this. now are lot right it we're that the us it's that. through whole It's continue treating do end but finish thing been another we "vindicate" to our learned always right patients. is day, and that that we've we And industry the and had for finish we've have we it's we the have from to -- been us of we said to unfortunate right And audit to situation right confident going the through. always it, and not thing. have does most just and a the doing at doing the think the the positive I of thing

Brooks O'Neil

Okay. Makes sense.

one sorry. ask more, Let me just

into So these for the here, bit LHC acquisitions time be on it's about at think you the this neighbor something Group, from right your little two to hired year, you talk guys a pulling XXXX? the opportunity or more and just whether trigger

Casey Hoyt

lead Yes. brush acquisitions excited the those Freeman. on official in-house. story the billion on We're short $X.X like were for call XXX these Michael is made very their handled of to worth and for that LHC and that guys backgrounds, over the Jeremy of Trahan We’ve about would acquisitions up together an but announcement at

bring to We've lack well. their They the targets really experience internal those target ready in these that a need order term. of of on. boat lot didn't list processes finding contracts just a start for into we they of better start on to a to lot flipping for a using get get that get So going fish to us to developing are folks. old a plan as new They're got

all the whereas is to so we beginning M&A that moonlighting before, somewhat this of dedicated the were strategy. And really growth a team on strategy,

something a experience team to just with that of partnerships and and is folks that direct it's strategic throughout responsibilities relevant LHC. country systems dedicated of home. be hospital acquiring also the the with continuum they Now to developing This health care had their can more we partners with

we're in shakeup them. had every there United Lafayette. that small across here with So our purchasing just blessed -- have street They town we're a the to

over really so there the you zero, over at right was come ground will. timing And Viemed to did what and from start for they all them if

Brooks O'Neil

for very you much Thank questions. Great. taking my

Casey Hoyt

Thanks, Brooks.

Operator

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

You question. with your may proceed

Doug Cooper

to according was along so where X%, of guys. that's end full-time on MD&A, morning XX%. just in up topic. the -- I employees from off following Hey, with at the QX versus Excuse me, we'll XXX start had XXX your from G&A SG&A up following guess good QX,

guess, it's see could I you of majority count, So my opinion. head the in

over the So where do next going couple you staffing quarters? full-time see and staffing of

Todd Zehnder

We going related headcount continue to quite added few that positions think oxygen continue to really more absolute a down you're grow or the to We've some. We've the as business said, are delivery slow but to doubled back-office expand, had I hire see to were patients. we've a that we've growing the few from some like hired a expanded. rental more RTs hire to stressing going drivers standpoint, so around some quite patient we drivers. has We've the people to these lines. I product count because as country It's had

So it's do type people of more just the taking companies, working to those office billing, in as task intake, all insurance the with well, home things.

So I think that base. we've hired a with big wave growing of that people to patient help

So I last don't back two. the see that the in over of seen or half the absolute growth year you've quarter the

Doug Cooper

out come too. I'll Maybe in way, another

to plus. So I what the to revenue continues, is line quarter $XX realistic that revenue four through in growth XX%, you the expect Is assuming back incremental margins, four from XX%. up quarters, what back say, Growth quarters sort XX% In now revenue? kind just of over that flow EBITDA and out up that of the would look is you in other from million. get If you target? do words, -- top can EBITDA

Todd Zehnder

end not June. of of waiting is the bottom but first the CPI would say the that our the what thing We're that's when I we're line can't know, I work our -- will we go margins, other for. on we guidance. this is, factor that of to at the our you say 'XX. will the quarter on that's inflation that get But to shooting I was definitely mean, base get as guys straight X.X% to adjustment

most to I see from grow actual normalize and and rate without we just are adjustment the start that, what are -- to tell to payers wait our good as a into you percentage. but going increase a we'll to pretty But have of well. will that we're translates going So due as revenue would which CMS, we is, G&A we commercial

back you're to XXs towards quarters. see here So the next couple -- low I getting us work over three of into the think going

Doug Cooper

just that on Maybe CPI Okay. adjustment.

up record quarter, $XX,XXX on active is last is my mix. an This vent high Or patient And patient that's of I that which some be? and average was part calculation, to from a per can due year. revenue really annual guess $XX,XXX, vent maybe per by that how basis product

Todd Zehnder

Yes. in we from second XX%. XX% quarter XXXX, the I contribution of vents quoted, went you mean is hardly of

So that's percentage and when the going extra vents drive obviously oxygen get PAPs, up. point primarily that -- that XX to

then products how the So per A, patient ancillary getting will how make be much and for vent of the B, up these of much contribution. we're reimbursed vents; revenue driven by,

will going margin. cycle go same if going patients it went other what That's It's our this at let's vents entering with these is to higher as product way the could to So lines. in we obviously goal XX-XX, again say. get these point rate But at growing state. to is are do, that help products to it their to into Viemed disease be show which supposed other earlier doing they're the

Doug Cooper

think north year of the by of finished speaking Is that the can number? of the be quarter X,XXX, is X,XXX, you that number X,XXX, end vents you a possible X,XXX. patients, of And with a sort

Todd Zehnder

and I again have do the think foot look, next, would can Absolutely. but taking that to not off grew XXX and I mean, hopefully quarter just We're we'll we this gas our that. wait see. we sequentially. at that like on to

Doug Cooper

my M&A. Okay. question the final And final -- on maybe

right past What about are the in particular company? talked or a not to looking You in on? core in acquire you focused sectors, company another your competency vent

Casey Hoyt

vent Well, in another have, entirely We in as that well I company Doug. mean, consider that we're true. don't would insurance we contracts not region not with that's a

looking here really the of DME all legacy see at over Viemed, two We looking we're equipment we might the here knowledge or all are type just good in-house have we're this respiratory of processes. that inclusive a to manage the we country certainly strictly pick don't products we company, those and But medical work sell. majority up that line to the to just know turn at up we durable at still teammates of but throughout that product through a point our but vent businesses DMEs that So really for a we kind find fit. nose we don't if of the can

Doug Cooper

last, my my last sorry, Maybe one. Okay.

remind You territories. mentioned it, nine in you're to how many Can just the And enter states months? as now? in you XX states you new would right call next, like you're what us in

Casey Hoyt

I know last don't higher I right I XX, at time could the it I was looked might XX be the it mean, now. right getting think it, -- I I'm but signal be states Doug, at it now. still like

we're don't now. pretty quote me yes, right XX lower coverage total having on to So that. But close

Doug Cooper

Okay.

weren't not particular, would in or was there for to from who looking as what an in wish in strong So like you're in, if is this? M&A do that company perspective, a particularly if a that you -- region many example, region

Casey Hoyt

give State example, an with a that York storefront so forth. is just so working I'll state to like a would facility have have on brick-and-mortar New and we and you a

We we have in folks. that and treating have in state, therapists patients that state,

So state in. technically, that a would that we call we're

business in doing Florida. be doing to really not we're However, in the New We York need we that push strong State. made know a we

got that in, are have patients, of six California, people now us. but California. got we've state right reps, might really in four in good five, Florida. that maybe we be or a some we Florida think something I weren't now that used are like really coverage That but couple in making still by for a means over we doing a any there and well. no movements handful And of weak in We've to

are seek an So these examples M&A might where we opportunity. that good areas are of

Doug Cooper

Okay.

about so maybe the has you Phillips just of ago, over the the the at stock see should perked of fixing week easy just the talk a weeks, back all? Sorry, up past a certainly on we and Can little sort guess I of or ResMed out that. it positive bit it gave one on was you supply if couple more recall issue. outlook came day, I some other can,

Todd Zehnder

there the side, had Casey issue, just know. On back you on had is which as process mean, never vent I is that's like an the are it call, we've we to mentioned we the ongoing. that transfer and Philips -- repairing phone, a

side early quarter. path again. think we're were formal side, us good but shipments where On should acquisitive to progressive through cycle. still later the pass the new and the should we very haven't distribution on guidance fourth pretty have anticipating the a is We've ability been PAP PAP I we yet, the we to the seen in get giving Phillips very get on got -- We they're --

PAP So that had Phillips everybody in or the proactively nice from the there. guess, get a not will luckily but issue and game it to standpoint we back that supply contributing out issues have to I be are

Doug Cooper

great. Okay, Thanks Thanks, [indiscernible]. guys.

Casey Hoyt

I bet.

Operator

with next And Our your Pandurangan you questions. proceed from with line Prasath Bloomberg. question of the comes may

Prasath Pandurangan

taking questions. Hi, good Thanks for morning. the

and mix. durable a terms First, medical this near-term you've expand of about and bit in of the ventilator evolving margins? the equipment going mix Could of forward rentals on the impact talked product about the guidance other specifically little you

Todd Zehnder

know see exactly don't businesses go, Yes, the continue see distributing down we just I quarter don't we're of that. what percentage from products. like of could the down around of but increased to XX%, to would and expect the that me, third trickling coming seeing to I a last has the stabilization going vent that it But over sum. saw it to of little are is months. XX growth see a bit the force the sales kind it's sleep I That's oxygen quarter-to-quarter in other growth the little, going where country, as it I rapid and we contribution from a but our showing this in patient benefits seeing quarter,

kind that divisions. is of I either as G&A headcount was going those for like to So up earlier, down on to going offset close telling bit or of where I stabilize that the or are that little bit, notional the little if we've amounts ramped we keep Obviously, to think put continued the I are margin is going a Brooks think percentages. up. a But will what pressure Doug our stay we

pretty I got point this good adequately good of a think crew we've pretty take people at on more growth. to

time back And so I to creeping our margins expect up. would start over

Prasath Pandurangan

as the potential that Yes, you sounds fall? new response we And fair. could the sales Yes. becomes head variants, spikes about as into periodic the COVID endemic, with talk due in disease future to more

Todd Zehnder

but if I it We're want If lasted, we different for always And center. Yes. to it experience. to that standpoint, COVID could facilities. access our mean clearly need other an back physician it and call up. was be is access behind good the while but be said hopeful it that We've our inventory won't -- right comes can from serve us. clearly services got and patient mass that We've there. thing we will, ready is you -- down, the we're then stand help we've we've laid we

ready And now could if have they Staffing doing we would need Healthcare for hotspots that we growing and so running see those as we a need people, is were are if are hotspots that need and there do, COVID the up say that for there other help, and for piece that a are what the revenue resource and I we're majority now. drivers the there. there of right don't effectively serve Viemed

Prasath Pandurangan

Thank you. Great.

Todd Zehnder

Thanks.

Operator

Ladies Mr. we closing this I question-and-answer have Casey reached end like and Hoyt would for to call over remarks. the session. to of gentlemen, turn today's back

Casey Hoyt

the from We call. well. everyone, appreciate as Thanks, your Okay. everyone joining the and certainly coming participation appreciate thoughtful for questions

know us Let to feel you. if reach free Thank help, of we out. be can

Operator

concludes conference. This today's

lines your for Thank the disconnect enjoy day. this participation, rest may You time. your of at you your

Viemed Healthcare (VMD) 4 Aug 222022 Q2 Earnings call transcript