Earnings call transcript Q2 2023

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Operator

Greetings, and welcome to the Viemed Second Quarter 2023 Earnings Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Todd Zehnder, Chief Operating Officer. Todd. you, Thank

begin. You may

Todd Zehnder

under and actual and results cause SEC those statements disclosure remarks good statements on should investors note you, and respect could as forward-looking everyone. these the we or with discussed legislation, collectively which events intentions statements. in refer from events the undue uncertainties, and place morning, this with conference or not risks our company's vary and our to results are information indicated authorities or of regulatory risks in laws forward-looking statements. federal that Examples Canadian call subject certain to certain and statements. securities US the in which or security filed forward-looking reliance Such Thank documents to forward-looking securities Please future of uncertainties provinces applicable uncertainties, reflect may under forward-looking views to the include Because in of such risks are Canada. current

forward-looking to call and no required made law. undertakes made any company the as of obligation today, by The this or statements, are except in forward-looking as revise update conference statements

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

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

Casey Hoyt

with All second comprehensive a overview right. everyone. quarter positive morning, we Thank our outlook excited you, business forward-looking industry. to share of along Todd, Welcome XXXX performance Today, to a and for good robust are earnings the call. our

well our environment. strategically on in capitalize is operating positioned and exceptionally prevailing Our expand to reach our organization tailwinds

strategy. growth and team and long-awaited our a growth, to we During management simultaneously their our our significant initiated this continuing period, organic achieved to we've commitment model, to proven testament M&A

engine announce the broadens acquisition completion and accelerates We our growth our on June are HMP geographically. capabilities X, which further pleased of to successful

with Viemed This while a expanded our team acquisition dedicated care larger building resources. reinforces

team our behind delivering commitment our behavioral of and and support the force delve continuous further, to a growth Viemed. our moment acknowledge staffing care to is serve continued professionals to take we quarter we gratitude and outstanding to health Before specialists, best-in-class to dedicated express administrative respiratory Their for patients driving the I want staff. therapists,

our end including XXX to of XXX from the new employees As grew second team. the quarter, of Viemed onboarded family the employees, HMP

and into We are welcome families. fortunate HMP to excited the team our

our The second of quarter strength XXXX business of the exhibited model.

results growth. experience larger the revenue a to top guided of confirming continue company, at again landed end our strong range, even that we Our as

consistently its built Our and demonstrated success robust drive challenges a is sustainable overcome ability resilient growth. to on has which strategy, and

growth capabilities. accretive We coverage expansion of strategy acquisitions by country. gaps the executing are upon pushing our our on offerings to These our build that and existing catalysts, powerful accelerating and as throughout new respiratory serve heights geographic the comprehensive acquisitions strategic

training processes programs. Our value training base growth. the helps is back-office integration for the which continuously our mature acquisition demonstrating team both synergized inorganic our organization drive and culture, of Through refining we organic and and are HMP, well-developed of and and

a strong with levels. We over at the first of operations, model growth by month team experienced from complex have setups post-close seeing historic are ventilation success In our tremendous mature HMP. HMP sharing already significant respiratory the non-invasive

delivery to stakeholders. high-touch delivery be the improve tech, we of high clinicians efficiencies Due all training for use our as continue driving care will we while HMP patient Additionally, Engage. this outcomes on proprietary such to model, technologies will

decision-making performance improve data-driven continuously allows to patient business measure and commitment Our satisfaction. to and us our

many competing with chain stronger than Our manufacturers our remains new business. for equipment ever supply

and to competition enhanced stability we meet chain of our patients, in ensuring to diversified of us increased regardless equipment market. have fluctuations We allows and demands disruptions. sources have partnerships ever-increasing safeguarding of the supply needs in costs with us patients. meet adequate This forged potential the against our multiple our the that reputable manufacturers, the supply is This stabilizing

amplifying gain pricing Moreover, delivered volume significant advantages the equipment has we landscape. acquisition due the and to HMP recent favorability, the our competitive scale

substantial played to and these success, a the of has commitment in Our contributing has role HMP integration pivotal diversification efforts. to yielded

in We state, base are now expanding reaching before. patients their patient never earlier like disease our

June are unique XX, last we of XX,XXX a treating significant from time year. the As over increase patients, same

patients to of growing care a portfolio treat allows the intervention us underlying provides pulmonologists time. and Our conditions robust and capabilities continuum solution early our at for right

in disease gained devices The concentrators also and sophisticated as adoption of aid rapidly as These remote increased our efforts care as timely us but portable a in us manner. a technologies, -- leading care enabled leader offerings their provider of innovative of of for us provide care not such going a has such adjacent of coordinated and patient-centric This addressing allow path services portfolios prominence in determinants only As length adoption ventilator our relationships, social positions behavioral as health patients as patient-centric progresses. respiratory. our expand care setups industry. beyond to oxygen patient to the cost-effective the

people. organization, driving strategy staffing the identification behind force a as focus pivotal is recruitment and acting cycles. playing Viemed across our top-tier economic role a on to our Integral all of is Healthcare talent in our

to talented not in This continue commitment volume workforce of but improvements success our Our also enhances a always our the the the only finding remarkable team. to and and by both best thriving reflects dedication developing results, drive significant evidenced quality to hires. internal professionals as

have their workforce rely our the bring value division has customers. in of such come large and we needs. meeting the As and earned our respect to our it continues and as to recognizing hospital the on solutions, VA staffing trust Organizations valued staffing partners mature, regional networks

data our are and staffing has position right empowers grow, right positions, refining Our continued ahead keep partner and a advanced in This and performance. professionals analytical reputation the investing approach in recruitment that of market, to to make improved and competition. the in the us leading the organizational to to and candidates tools, decisions as engage data-driven strengthening equipped consistently prepared with match ultimately continuingly patient with further dependable healthcare care we to the better we By industry. identify are informed strategies, valuable top our us

to regulators, continue Together, the deliver that ongoing progress industry. to can to are we effectively. see practical We ensure collaboration working legislators providers patients and home care solutions medical equipment find between encouraging in

face also competitive effectively Regarding the not has bidding, related observed to future suggest although prospect The CMS has a the have for competitive of prevailing XXXX announced we the for round rounds, that timeline in plans bidding that signals reimbursement strongly lapsed. potential challenges recession such remain XXXX and the inflation and business in pressures. potential as coming round We for our years, well positioned of confident long-term macroeconomic in a is current winding. strong a the indicators environment of the is

changes, in the of areas. the directories, impacting milestone are by the impacting ushers equity, issuance prior several authorization, as in healthcare marketing a key of coverage the final improvements host Additionally, particularly the This health the other signaling Medicare aspects whole. drug communications, in direction Included and of positive and Advantage rule landscape, benefits. a adequacy a in network the programs industry significant of prescription on rule for and XXXX, marks provisions a the realms X, Medicare D April criteria, in provider Part CMS

equity is emphasizes access achieving irrespective to beneficiaries available the Medicare the their chosen Medicare. rule and crucial Advantage to necessary healthcare ensuring care medically access to have individuals same a Medicare and need receive traditional step Importantly, of program. This equitable the ensure medical towards essential in that care final that with parity services,

and our driven As for high-quality the by and the healthcare trends reimbursement of outlook evolves, an optimistic arrangements, demand Advantage offerings. value-based cost-effective environment Medicare we maintain service

administrative Our capture to and demonstrate processes, in streamline robust tangible essential technology to payers data and unwavering benefits patients, commitment and to alike. allows investing us physicians advanced protocols

to insights capital Todd regarding Todd, financial on At hand Operating now additional results activities. I'll to this Chief floor provide call the juncture, yours. over and the is our Officer, Zehnder,

Todd Zehnder

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

a of This net million as Our includes compared increase. the core acquisition the million generated of $X.X of June. our amount business which to during to equates $XX.X HMP of revenues XX% revenue of revenue quarter XXXX, quarter related second revenue to second of $XX.X XXXX, during net during approximately million

XXXX organic the of our impressive impact, an XX%. growth over that second quarter Excluding was

for remains very growth core continuing was for to business as and HMP X%, our see will and the that we we Our organic have quarter strong. increase sequential the growth entire third

continue We as able rates that we optimistic will as well of to inorganic be to evaluation organic high stay continue growth our opportunities. continue our

are -- all dual-pronged our and we Our while gross bottom-line strategy our dual revenue percentages both margin remain our looking diversify committed strong of diversification. again are focused as continuing margins. once margin to on stream, expand and to strong to EBITDA We

the by product be percentages margin our and see be to influenced growth. continue continue mix to pleased our by We notional

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

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

EBITDA higher XX XX% Our than the is EBITDA, quarter overall second approximately last XXXX second to is testament for which a months. focus our quarter XXXX

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

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

board quarter We pleased are in grew XX%. that costs of across the continuing are XX%, revenues and a G&A managing efforts had the grow

We employee invest patient and to will continue in our experiences.

ongoing to faster of inflationary grow in rate the expect a continue to expenses, even at than revenues We light environment.

a on invested supplier possible. expenditures. capital have CapEx we inflationary which diversified us been ability has million For through network, minimized an relationships, much the to quarter, The approximately as given spent impacts $X we whereby leverage as has

recent had and was period. the the the case CapEx most As products oxygen periods, during spent vent over our the

of HMP during fund funded we We were to discretionary of use extreme acquisition. all growth the a quarter balance cash and to again sheet our have our once with able CapEx flow

the of with cash we We are $XX balance very the sheet quarter a of million. proud balance where pristine ended

quarter the working million. overall with balance $X.X ended we Additionally, of capital an

in order acquisition our the long-term close facility had XX. to We June drew of debt on million credit at $XX.X and

needs opportunistically We cash growth of the use or on from or opportunities. depending revolver inorganic organic resulting additional pay will future down portion

the to integration are of efforts our acquisition related HMP. We excited extremely in

folded company. culture are number previously reason to the easily we early, was us one is assure and diligent are that great integrated, The company always ensuring into efficiencies to one As is we come the for which extremely stated, this Viemed HMP revenue being through attained. acquire being synergies are in seeing has

is this management We sure the retained proverbial make to are working diligently win-win. with

We the capital begun executing on at our end allocation strategy we that of have XXXX. now defined

remains new Our first to on CapEx service priority patients.

service new priority. through patient has growth always and our be likely organic will first Our

major Viemed as see legacy to growth both continue opportunities HMP. We for organic as well

Now deal, M&A evident it capital the number has that moved on that have allocation. is in priority our at we two completed first

as are patiently we to other We optimizing continue evaluate deals one. first our

facility credit down to allows for might paying up capital. another previously mentioned, on the quickly. we of revolver consider needs we comes and until that routinely the our decisions But made those As be flexibility deal

also to our statement, shelf fund next month. to will This renew seize to ongoing expire transactions. or existing scheduled rapidly expect an capacity opportunistic acquisition We our registration which maintain is renewal

to of business. The third with quarter active range have on guidance of guidance investors. third to in related up XXXX. revenue the and our $XX.X to Moving core in net over million $XX the the provided net remain in XX% existing new we revenue our potentially quarter, the discussions is million midpoint our revenue core We

expand are conferences during attend will quarter, hopefully a institutional investor couple to base. our whereby the of planning We we third

now but to and out inorganic footprint our to to our to strategies. story, we new are build more excited continue tell are growth patients our through even excited organic We

I'll things time, Casey back turn At over this wrap it to up. to

Casey Hoyt

exciting Todd. in organic with All the remains to Thanks, the most that the quarter, unwavering. these we pleased midst growth are commitment developments our of right. In fact

chapter slowed their and Our of some our team of the growth on HMP us done this down any integration careful story way. incredible has not the in next orchestration has acquisition work for

our focused On on the the our remain off all continuously maintaining as position on industry, expanding the cylinders, growing the our contrary, and eye taking never we're leader ball. improving, in firing We operations.

clinical to As we partnerships Driving remain hospital be model ongoing of of our will with the part improvements and major preferred on partners. strategy. move forward, with our aggressive our creating we continue more stable innovation environment, regulatory the help a to

in deliver navigate value sustainable to to confident are landscape We our the evolving our ability stakeholders. healthcare and

we open We'll prepared look questions. the sharing Once for Thank again, thank the and our now you. further to you us exciting Healthcare. concludes developments all for today, Viemed forward floor up remarks. This for ahead joining

Operator

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

Brooks O’Neil

Thank you, on the and results. good morning, guys. terrific Congratulations

Casey Hoyt

Good morning, Brooks. Thank you.

Brooks O’Neil

Yeah.

of a have I couple here. questions So

talk side. maybe mix but Can The the first, it's is mean, I remember guess, more modestly the with yours, I -- was if some a it correctly, overlaps have from to bit the business of the skewed to strength geographies just sleep side of I HMP on the business? you and little take of about in cross-sell vent you their maybe efforts initial advantage

Casey Hoyt

I the Yes. was say heavy guess, The it Good would point. I call on mix very XX%, was, HMP sleep ventilation. what, XX% side,

So the things analyzing were really we that when us front was one that end. acquisition the of on excited about the

mean, the how the June X, deal, up following folks week their from closed to our walk Viemed way bid training their offices and at we I is respiratory our complex So, on had the which talk Brooks, we team selling ventilation. model, and

vents. record numbers hit they for And month in one

in respective really We with the excited receive really were their much training and growth them to were about ability it. about impressed how we jazzed out to that. got -- we about markets. So incremental And and adopt was the for

on they've Mississippi many throughout their They double a the some sleep They markets. well. through Alabama outside of sleep sleep and programs strong sleep are currently business they're grow down as some opportunities There they got program to So service. where markets in with continue -- initializing service labs. rural Tennessee, going to have to locations home

them to that's about able too, at we're because something a excited that So home sleep help is developing with good really being we're that program.

obviously some focused the revenue we just tighten all yeah, what on costs opportunity we're right and gate. out of But that's right there. sales, the a things So we've uncovering here that focused screws the with now, We're got things synergy on. on of growing down to opportunities major and other are been

Brooks O’Neil

that color. all Appreciate Great.

better So down you one opportunities. for acquisitions make template first about you slam going has this forward? to acquisition and might making pipeline talked do both you're curious, to Or mine that Would of some a going even acquisition you continuing the things say I'm have Todd this the you been road? from learned dunk at what

Todd Zehnder

good of an the to same most we of we time, acquisition, yes learning streams. pretty of very revenue and It's the a because a same them. business is transaction all that they in things know And area we if answer but both at in, lastly, This reasons, the disappointing very ideal at fit. is it would I for are think this the was it we strong. importantly, culturally, weren't an are lot is I an things. think was but -- diversification significant But during didn't probably learn time was that the be first the units just our

all it's growing But anything our of it of do. while integrated sure revenue doesn't able thing get main it is that's haven't like get But, It's do been we've right, impacted. And kind way thing Casey we the said, been get making good. new uncovered our the company. that synergies spooks the growth all for main us. organic It's to a to

ready pressing When we'll So be it. for we're to the not soon, if necessarily it another We're looking one forward do one. to we'll next one comes immediately. But another comes see.

one. So it's all good on this first

Brooks O’Neil

Great.

an with set? across of just the friend, will. last it's Any doors in terms the one, the you opportunity VA one revisiting if Let that sort for and of progress old programs oxygen me broadly ask opening

Casey Hoyt

of The the and Again, become a a program not success coming dealing that VA dead. forward. having ongoing where the still down. Yeah. developing with got that things pressing through we've employees lot slowed of pilot we're we're going that the program, staffing experience It's are inside is which coming we've some now. main and is -- We're

of that a have quality the We being for VA. provider background

mean been landing waiting boded staffing it's complex dead. it. it's and has we well mean which that still for status as but over about quo the VA doesn't quarter-to-quarter just push our or so on wins, has of from it I is talk the some that respiratory -- bigger contracts, us always And as

Brooks O’Neil

the Okay, for excited cool. Thanks for the color. I’m future.

Todd Zehnder

All Brooks. right. Thanks,

Operator

Thank you.

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

Doug Cooper

morning, work terrific on good Hey, guys. the quarter. And

to if you $XX one million, roughly $XX.X confirm me. because just full been forma acquisition I for the for in revenue million that Just it only ones you Is ballpark? pro sort of of forma in EBITDA. had would month. and had Would million for quarter, a of $XX quick want the couple pro of the have

Todd Zehnder

approximate. million I think it's going don't don't is We EBITDA, an Doug. the change good estimate but $XX a have much, The composition of to very

Doug Cooper

the XX,XXX time. vent, milestone. of that I over How for your it's had growth, saw Okay. X% certainly a patients vent sequentially it nice good this mentioned that now, looked some like maybe much the know, finally That you strongest sequentially, HMP? out were the just, it how of don't physicians I to gate due of a is realizing Casey, the was therapy. selling they is and much up

Todd Zehnder

I I HMP traditional XXX XXX probably don't the bps exact for makes quarter? have exact the sequential to number, because which made about about HMP, number, was I to growth, rest our of want up bps was bps the at Yeah, XXX have think think -- I sense the The bps. grew don't but Doug, I but we growth. that about it XXX

up efforts own made it. of our So about half

piece So obviously their folding then clicking group the is gave in for a really us good but sure, organic bulk.

Casey Hoyt

We're nugget, little internal goal we right is of with now. to XXX the set Another sales kind at end Doug, year sitting XXX quality reps. an

are -- been just the infrastructure team it's back-end have the guys we've making of lot finding, we've trained people sure a also a but only getting clicking. recruiting as well. them And It's really put support the up HMP they into new good our matter So the to that efforts and of that not system. new

building of lot and so is right so and and managers up focus on sales a training sales our So now. forth

Doug Cooper

Okay.

over bps added bps months, XXX be XXX to and you month? a just in added three So clear, they

Todd Zehnder

acquisition. once. of mean I gets at the added That's part no, that Well, all

So that their was active…

Doug Cooper

Got it.

and so the that and it oxygen it right? business, non-vent just -- XX%. even on I sleep Is read Okay. the HMP, it forth, the call looks like the contribution from just And grew excluding that did

Todd Zehnder

our with… about services talking ancillary You're

Doug Cooper

revenue. non-vent the Just

Todd Zehnder

to revenues a Yes. are oxygen, higher a lot encompassed got and of in sales growth at by growth our running, staffing up then, be That's in you sleep. this going And lot of point. just

So exactly probably I see in is sure to that's number make about. about don't want included that, that talking but… I HMP that you're not the right.

Doug Cooper

if of your guess up, revenue million it XXX%. I revenue, added I non-vent obviously, over $X.X that I think HMP, was non-vent

So if I [indiscernible]

Todd Zehnder

right. Yeah, that’s

Doug Cooper

growth. would incredible It be

sleep making going? that the can you’re obviously Like... just and rate of growth kind you space. you inroads into -- how -- So great Can keep oxygen

Todd Zehnder

Well, that keep base, those of growing. It smaller to long back will. everything how to it XX%. there this have numbers old is always they is the thing our to more includes bigger. what mean numbers tell business we it goes and country, you age kind And to rates grow. comes the that, see events XX%, keep the to. gets to posting, an But that out growing growing grow pushing -- sleep that down intent keep can percentage advantage vest, as reps when over so that our and growth it, a have we want if I'll so which intention annuity, the they're get call There's dramatically. resupply just been we've starts harder we sales everything, inherently, rates. our high like oxygen, with around these organically the those That's you high in grow, sort means as But that's of sleep piece I vents,

Doug Cooper

Owens I I Apria, X% with, & XX%. Minor me with was XX.X%, for year-over-year guess, they of and interesting rate AdaptHealth organic or was growth think, had It Yeah.

business would fundamentals, continues side mean I I the to the sleep So, strong suspect? pretty have of

Todd Zehnder

sleep time. still does. state, it once of COVID we're mean benefiting kind only the Yes, And rolling nationally growing disease during for out sure. from I is that a apnea again,

new rep able So being it's three or it addition that get to still a you offer their -- in everything two or else. hit sales as stride to

that's our revenue from going going growth benefiting benefiting non-vent having So to bolster only then bringing HMP in once going we're again, from forward. forward, that and

Doug Cooper

has issues, And getting ResMed pace, picked the equipment? supply no about chain I'm Right. there's the and issue assuming really up

Todd Zehnder

at any on have product Yeah. no issue point. this We

is everything good So there.

Doug Cooper

Okay. Great, guys. Congratulations.

Todd Zehnder

Thanks, Doug.

Operator

Thank you.

with Rem Odinson Andrew from proceed with your question. Please is question Partners. next Our

Andrew Rem

Hey, team. Congrats great quarter. gentlemen, to your

great You guys a doing are executing. job

Todd Zehnder

you. Thank

Andrew Rem

maybe the was of prior their or Just the what at to to going acquisition back of HMP, time the growth kind profile organic acquisition?

Todd Zehnder

over want slowed you if year high kind They high. be wasn't three-year a XXs. CAGR upper down of single in I to of at as Well, say look would just low had digits. last period, teens, the to The it somewhere probably the kind

set of respiratory, that it range. which hopeful that mid-XX rates, when complex to type of growth our we growing can is we're skill in So back we get kind bring the organic our

Andrew Rem

for Okay. the really is wasn't in that of for it And necessarily that then, strength around sounds opportunities as but is them, factoring that kind ventilation a like you.

Todd Zehnder

Yes. if were can their benchmark have That's business our ventilation to That's sort doing then a goal, And keep for rate growth then much a the grow we're at continue we they the our them than higher pretty goal. historically. at is them is of rate, good growing job. to them

Andrew Rem

comment about when Okay. good And more HMP, little just say that these better, -- or your fit then, and a bit? bit on maybe help me just understand you between define a between flush or just can you little -- two a cultural you

Casey Hoyt

patient what just is right extremely looking and looking They which for. way HMP. us. that saw that's They're that's that the patient-centric. do best to thing is first, the at with whenever our passion to is to that something with good define important clinicians We we it we that we're put are work and side, and can The have they're the -- the with people heart what bleeding

we're So communities. into spring of that their just passion kind boarding

Andrew Rem

kind inflation and Can you Obviously, just then more kind operating beyond pressure just as SG&A maybe second expenses. on of last had go and year maybe the leverage year. into of kind you you to talk of the ability half And about 'XX of expense.

of getting that to the other reimbursement, in leverage of those some expenses? things product with but that kind You're operationally you guys improvement do can

Todd Zehnder

this up remarks up XX% we're quarter, that was Yeah. proud revenue very XX%. in I G&A and was my only prepared mean

to continuing key to growth kind it and it's the base. helps we're We're is these that push that's what rates. leverage try impressive to revenue down versus expenses happening. a on able scale generally. The going C-level necessarily We're slow G&A just because growing of growth organic yields So to not

We proud that said growth new and salespeople, trying are we it, of we're yields in ideas. there and out of always above-average invest the try always new hire rates. to we've innovative this business, it organic And future

do would as expect them margins. grown grow towards We a be we're continue year, high grow 'XX line on exactly And we to not replicate fully or It's point to next XXX the bottom that year, them. to rate increase. grow to in we're do That say be we to difficult -- trending yet. To as going we've we kind just see them able what sure do to that. of this at as we're but much attempting to ability basis as intend

Andrew Rem

about year, does your understand that comments -- this And out that assuming year. in kind the is I of

component that's be out your some year, the activities. a on would reimbursement internal there's then dependent on portion On and

looking control So to improvement? improve not how of you do at year, clearly But the in pace. the that much next

Todd Zehnder

three factors. Well, there's probably

X.X%. One You hit think, at midyear running, reimbursement. that is And on two I looking the was of CPI, them. X%,

average got So probably that figure year. see X% an going of a we next about to we're

The one be ventilation So is higher what majority that that's will we always not on caution EBITDA The people do. meaningful. has margin. we thing extremely a

base. product So diversifying are the we

prepared last went XX% my XX%. remarks, year in said to from we I've As

cycle. margin feeders in the higher are kind later business their into is A product that getting we into lot of life of

thing So to And actually the we a us, the two know the adjustment and sort us, Todds again, that mean, of we when two leverage cost. up you of and some are Caseys real will that then let you composition to revenue, we happen. but sort as company. can CPI the but corporate we of -- see up control those double that composition need I The don't is of a once the is result

same always the things in the But investing we the at So of can those are future. that we're do. time, type

it's we us. very So -- important to

growing year-over-year was most I the our conference our number to up basis. think impressive this for that quarter keep EBITDA call XX% that's is for number. And the intent, was that

Andrew Rem

All again, lot. to And your congrats right. Thanks a guys. Thanks, team.

Todd Zehnder

Andrew. Thanks,

Operator

Our next proceed Eric question Baird. Coldwell question. is your Please with with from

Eric Coldwell

questions. I Hey, much have, and morning. think, thanks very good three I

broaden have The us first And recent you over your XX network do you highlight traction I'm your to I your to that have any payers scale payers. capabilities. like you the conversations for curious one, with I'd very a been? but been with with geographies know early HMP, and what next have hear still about and your bit it's months? access? able could expand opportunities look you as any Or you as

Casey Hoyt

Yeah.

We done this a with hell of year. a payers job have

They've development and headed network million million into team network lives active. year-to-date, Our has been our another they've very X got X added under contract our way.

struggles get of doing. the guys network cookies big We great on out with typically we are are that have for of We us. work still those big that are So we're them, and guys, but those payer to have some efforts Humana pleased board. with the United guys tough very for do opportunities

expensive conversation mean everybody as our on the present we understand -- They shows far save is that payer when data really that we're respiratory that I as can healthy. complex But model. money else, we at If to we of a unique batch get table the that typically the in a treating patients. and sick offering their on these time, very patients we right understand bring they

through lens that force on that's driving -- data. message reason and we'll added continue double and lives, with the the X to So of behind how down the million we

Eric Coldwell

if were but type and deal certain thoughts? historically it's Since any I recent we've either, I geographic an is on underweighting covered impact exclusive, perhaps that issues. suspect a up a Rotech I have not -- issue yeah. large a Humana you as with specifically, representative being conversation for your have curious there on you right on one brought that of of now. not know categories MCO am harder that well their does given all as any thoughts Adapt you that's products But [indiscernible] maybe seen,

Casey Hoyt

for we're that is because the getting network we to our or to and specifically, not to Rotech on and now. yet handle For and able my entire not business company United Apria Humana. really they'll us seen be with of that. much mean -- Humana I mean be it's which I kudos could perspective whether be affect doing deal United Humana, it didn't I weren't

the just servicing So it's area. -- just that I'm can works give wait -- have still in us -- the yeah, out. much those I mind, just how because on first we'll whether patients place. in that continue the to is and angst to don't is But we support -- see doesn't my they coverage even It weren't out not really jury

Eric Coldwell

getting you've trying That's the sales remarkable. are I'm then you, network gains volumes, -- of a market had market on the is the you and first rates, even to the if inflection market which payer if share had if that an in you on organic really, organic fair. some in growth information patients commentary much script how just much seen underlying you get categories? continuation top? the on or guess on that, curious, of to And to pretty of on or how have was growth, there the your -- what with dynamics maybe core clearly the and a I'm expansion network, of this sense the

Todd Zehnder

are versus new Are specifically you areas you areas question or? existing about with -- that Eric, you are talking

Eric Coldwell

pretty recall. are in seems patient Or new core changes trends, but over of growth all change clearly Or share you just that, script or perhaps is sleep, if regulatory that apples-to-apples is above just that is it of years? your changes same-store growth after growth kind market. But of the is something underneath there last couple volume, seeing -- Is growth the for you a for steady overall really will, the underlying really, because obvious it is access national it? market. the in well statutory areas, in a it this which recovery is Yeah, something more rates And gain? is

Todd Zehnder

for going in run be quarterly kind exact mean, so of to same-store -- first sales. and have I And you don't It's range it's of the but I really XX%. just amount, can I generally we all, between that tell XX%

happens their do, continue get what bear little generally, growth. of a just the they reps of stride. larger, And to new for takes to our it majority So load Inherently, our they larger, reps hit larger. the when progressively is the strongest while

we a nothing little you new answer. retaining same-store that reps to our So We're there's new things. always and back very if We're it training ebbs do become into general rates. way that's -- we're go sales recruiting to mean quarter. areas look, with the and flows unique sales-driven we a there's sales. organization. type and these growth I the and have this but But get bit, aggressive ultimately It's

knowing think few vest over while all I to and for percussion neuromuscular, market reps given to primarily the underserved additional So to has and last the it rates, growth sleep, oxygen, very years, seasoned high continues ability respiratory offering COPD complex that sell, be the is sustain products these the a population, be.

to The it. can why the continue more job to people the and green continue ours there. new to is still therapy. that on find people So good we get pasture news spread grow is confident we're help That's to

Eric Coldwell

Any with have on market? people paying dynamics, should -- Are me, be quarter. belt. for will full of partial got a I you're side if environment? changes, any that in one The PHE callouts post-PHE ending last your be you attention notable in terms there reimbursement, changes, audit the there This under regulatory changes to time. in quarter, notable a call-outs Last of what a market impact seeing that the

Todd Zehnder

on obviously, never unfortunately, hit it revenue so really look or of to relief, us -- from we the it large or we out and I I blended too at impacted that about inconsequential really. during when I it a even but get think fortunately, a you not everything, It some blended had guess uplift the from didn't but No, mean, rate It easily call in guess so pretty we perspective. things. forth. modeling got we

back problem. end. So business to we've so it's some nothing We -- this oh, is seen been as has on issues no that that reaction a and that knee-jerk usual kind of that man, says,

Casey Hoyt

get other Medical oxygen that will, if I and standardize didn't have there CMN’s movement, to of is thing would PHE a Necessity business. by is reduce where One add oxygen pressure the for the guess, Certificate CMNs I'll we to audit you on inspired

adopt a during that's really positive think that forward I PHE. of we that out So worked came the really going what it, can like

should we'll a CMS for train, us but So of see on and if they wait gets win-win be and terms should that it in -- them pressure. for just order

Eric Coldwell

here guys Yeah, next month. much. perfect. Well, look you so Nice to and again, results seeing Thanks forward congrats.

Todd Zehnder

Eric. Thanks,

Casey Hoyt

Eric. you, Thank

Operator

hand are I'd to back time. questions any like over for floor the closing Thank to this no management comments. at you. There

Todd Zehnder

everybody future. with want to a We look near for thank follow-up call, on day. in again questions once and visiting has to the the right. forward that participating anyone good we All Have

Operator

concludes conference This today's call.

time. participation. You you disconnect your at Thank your this lines for may

Viemed Healthcare (VMD) 10 Aug 232023 Q2 Earnings call transcript