VMD - Earnings call transcript Q2 2024 | Viemed Healthcare, Inc.

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Operator

Good day, ladies and gentlemen, and welcome to the Viemed Second Quarter 2024 Earnings Call.

Our host for today's call is Todd Zehnder, Chief Operating Officer. [Operator Instructions].

I would like to now turn the call over to your host, Mr. Zehnder.

begin. may You

Todd Zehnder

forward-looking and good securities today. and note We you information may appreciate our securities U.S. Thank or which certain respect statements current views company's and collectively laws excited to to results morning, could to results we future the us forward-looking cause refer include call conference to I'm indicated in applicable please as vary under share joining or the reflect forward-looking remarks forward-looking are or federal which uncertainties, Canadian events events intentions you, under statements. this everyone. statements risks legislation, from that statements. with that -- subject in Such actual and those to

forward-looking uncertainties filed The disclosure obligations and should this uncertainties, security in of reliance not to undue no Canada. statements, provinces the made revise of for are update and such with undertakes made SEC except in authorities of call or are conference by documents in any statements. and company law. regulatory certain investors place required as forward-looking Because on of risks today, our the discussed as risks the these forward-looking statements Examples

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

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

Casey Hoyt

nothing to Todd, exceptional Okay. of excited second joining that share you has short I'm Thank and today. the been you, of good morning, appreciate everyone. for us We quarter Viemed. XXXX

vision. organic categories impressive, Our remains consistent with company's the our strategic growth in product core

over top reached representing guidance end $XX for record exceeding Our a the the of year. and quarter the company our new previous revenue net XX% increase a of million,

growth growth. testament team. and for continued our is operational the our unwavering incredibly our robust our are This happy with of and performance results a dedication We to opportunities remarkable

continues X. our following which family East as on to our acquisition April June team X,XXX employees talented numbering HomeMed expand, includes of Viemed now at Our XX, Alabama

are East growth we we to process close and can on Center track, moving past Medical integration and HomeMed and changes for were where Alabama the focus Our on is Viemed. point to start

to future half and further expect through for excited are we created JV realize We throughout the the transaction. about opportunities of the really have this year growth framework more back

setups with growing X.X% to during active strong are ventilator New incredibly patients the quarter, by compared count. patient vent the March

from A major force results restructuring component of is impressive our initiatives. successful performance the our quarterly sales

talent have approach, We refined developmental earlier the invested conversations, our life training and right in identified enhanced strategically cycle. the in

The sales plans setups XX% and beginning average New the of results. structure have our year. of targets to these evident alignment incentive with is new compared sales contributed rep monthly impact performance the a per to vent also of in increase

and reps to the optimism faster months ventilator are XX hitting rates growth. us higher of New next target at giving about their tremendous before, ever than sales XX

range the and now the efforts penetration are the are phase levels, existing where the widespread of higher we recruiting the place, of at accelerating We remains and country. for sales sub-XX% reps sales in observing year. producing ventilation demand will the be restructuring we half noninvasive in Market management back considerable is throughout are throughout at

IV Our recently outcomes don't. a for in and ventilation treatment AAHomecare differences DaVanzo who noninvasive study receiving quantify patients to Dobson Industry for Association comprehensive the an cases versus engaged therapy those

will Medicare highlighted advantages already benefits This reinforcing the patients. of this further substantial also payers ventilation, Advantage We of existing research. noninvasive experiences the the believe research study on analyze educate will by new significant

substantial replace machines resulting noninvasive opportunity a future need leveraging large entered average fleet was age a back vents. into unique the in overall fleet buyback we By P&L. alleviate with ventilation We've manufacturers reduce purchase As on can has of a and significantly volume use cash negative our pioneer of buy to to Philips with ventilators. VIP The a market, the for an a proceeds new with to Philips the servicing. many of number you flows and recall the affected aging from of devices older discounts the in our agreement of know, ventilators, of recent number Viemed without these presented our these impacts

a at the to the CPAP airway double-digit reflecting higher it sleep to volume Our positive strong their has sleep in and GLP-X lines organic effectiveness solutions. March. concerns growth, experience quarterly may to health continues over around business our Sleep be country. of pressure sleep represents The are craze folks addressing more rate revenue thrive, enduring at rates as grown continue and and XX% demand of now mix. increase contributing this

in are claim On continues Engage for front, aggregate platform our the improve create us Furthermore, that accelerate and These tools developments patient to and helping to been times opportunities to and patient RTs further we fulfillment view workflow efficiencies care testing beta have processes optimize will we capabilities. the proprietary technological our technology field. the processes. machine provide software data enhance our and learning valuable

and expect to technology a efficiencies of real We realize the result in as quarters the coming investments. opportunities

houses. processed potential the which, AAHomecare if rates, push denials and we of are attack. of cyber the margins. a no Healthcare. from impact has result away being further we also and reinstatement alternative can for to Affected the that Change is as blended front, swiftly payers regulatory We XX-XX continuing improve material have to payer Healthcare confidently expect Changed now clearing successful, our On all the on of in timely successfully say claims migrated the filing

We experiencing behavior policies. adjusting shifts medical favorable and are also to payers more

treatments number for a and of by respiratory ventilation. on These step before there authorizing access also fast devices to burden ultimately chronic care As modifying to level failing trends a reduce and changes on result improve positive the These stand to of are and our experience manner. therapy in trying inferior being policy VIP patients compliance, track placed medical failure. timely clinicians help overall regulatory therapy approaches payers enforcement a voluntary

the Home mergers acquisitions industry. in announced robust underscores and for Recently Healthcare the sector the appeal

industry's to threat & Minor's transaction competitors view than We to potential as rather large the pending Owens vents. acquire Viemed's there's to HME attractiveness. For national Rotech, a a billion a the $X.X highlights development provider significant testament this instance,

Our complex opportunities. leading continued acquisitions At growth M&A incredibly within in for our as and a opportunity respiratory this are of our well-positioned present provider remains active, care. Ventilation Viemed, we interest be in pipeline market continue foundation an and reflecting amazing growth profitable our at promising sector. services to

call updates and over financial more I'll hand Officer, operational our With Zehnder. to now Todd? the Todd quarter, Operating Chief the on

Todd Zehnder

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

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

X% of an organic, which approximately increased extremely Our rate. growth all about was revenue which $XXX,XXX strong sequentially, is

and the worked Operationally, first have through of first quarter and of we majority half the has Healthcare been the the year headwinds. Change strong,

and organic We remain growth that continue be rates. to will we continue committed our optimistic high able to

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

EBITDA we EBITDA structure our and margins cost still managing contribution. in and to gross successful showing year be in and continue gross Our this strong, both is and are

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

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

the quarter of the from as of quarter revenue XX% well. a the and $XX.X for during second XX% managing during of XXXX. the quarter second approximately first XX% G&A percentage compared million of million theme our SG&A Our sequentially decreased in of totaled G&A $XX.X to as 'XX quarter to continues our

revenues invest committed G&A manage to and our continue once to a at than and experiences employee remain to rate costs will grow expenses. in expect also faster patient and We our again,

For portion of on our because CapEx the is related than recall. back buyback been we by approximately $X.X products. have a the this quarter, quarter on from back hence, we on trilogy buying Philips of patient their offset Philips the fleet developed respiratory relation CapEx, the conjunction to considered offering utilizing begun have second vents fully to plan to during in We're approximately invested of the X.X vent some during various with is gross remediate vents our sold recall The for normal second agencies. to quarter, governmental million other and buyback quarter CapEx higher million vents primarily sell manufacturers. after fleet new that portion are Philips and the our the a number. program to an and That process in that context this, be program should began We

next when or year to continue We portion the are hear our will a and monetize of the remediation over fleet waiting so. can begin to

filing reserves were gain gains that to but an a value. of from so do tax have as it approximately these amount as to We the of X impacted and on for The impairment as is amount Offsetting some not unique benefits result income, a expect market are owed quarter before EBITDA during related project the them fair that quarter. some took an former and X was investments million. recorded this of completed. our vendor we total of one well until $X.X items items down to net that We bankruptcy

once free balance of discretionary onto our manage We flow funded cash cash the again have CapEx flow to and out sheet. order the drop in business continue to

Our percentage net CapEx was of XX%. to healthy at EBITDA

on last as continue free disclosure quarter. to discussed our basis, update will annual we flow We cash an

alternative Change collections Healthcare connectivity have collections of to by deferred the we to As payers during quarter. the through second we of cash all restored a up clearing the houses, made and significant update an our the being impacted cybersecurity fully issue, amount

the that AR still increased are this have remaining collections cash and claims still We June XX we result working through issue. million on as the approximately $X of on a estimate of finalizing

with collected that the amounts We be substantial during in quarter, impacted the completed portion project will this a are of confident July. already third

consistent remain our opportunities allocation priority. organic capital that highest is Our the and growth

debt those on July in X evidenced of signed and position a to JV paydown paydown $X.X equity our on net then once $X revolver and total April round debt We growth, ended inorganic million. quarter and by the out long-term buybacks priorities positive again million XX. continue our of the have cash Our as

end capital at working $XX.X quarter was Our the of the million.

quarter. third the to on Moving

in again We our have an provided increase range growth and in and midpoint our is have in the net of attract guidance current investors $XX.X over active of institutional excited and to about the our The the market to We with third once impressive and million revenue million is new our $XX.X of again ownership as remain up over see quarter net discussions growth. the seen core remain to revenue showing quarters. analysts the XXXX business. We last once of sequential opportunity U.S. core related story couple our telling investors. guidance revenue XX%

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

Casey Hoyt

you, Todd. Thank

our for built second presented future success. on robust we achieved proud of quarter look the the success potential foundation excited our back we've XXXX, the are future initiatives sales the our adapt in recall a restructuring of product growth about Philips we we've and opportunities and and environment. for the ongoing growth The dynamic the As by in solid force core of thrive highlights ability We're market categories. to

innovation technology to care. Our commitment learning machine and our and improve advancements patient in underscore

Our to strong are the swift East HomeMed operational and team's vision excellence. Alabama financial our of performance integration strategic testament and

approach of to ensuring ahead staying challenges and our partners. proactive regulatory Our payer demonstrates outcomes and industry to dedication the patients for and best trends our

support are investors, appreciative continued the and analysts, and deeply We partners. our trust employees of from

fuels of the care. our pushes boundaries possible Viemed excel in drive in confidence and to respiratory Your what's

concludes joining Thank today. for prepared our remarks. you us This

open the will floor questions. We for now further up

Operator

Capital. from Brooks comes [Operator with O'Neil question Street Instructions] Lake first Your

Brooks O'Neil

I that line quarter. you're you're ducks your a and think or coming in than few that of feels do a like the little bit questions. make a hit I to opportunities looking I'm at different feels me curious, it like as an over each you're take and you to trying like you about careful the to would guess might little say target-rich a best flock prioritize shots a at that, and really taking one. It down hoping duck environment. Terrific you something super shot it's start. analogy, I'd I have

Casey Hoyt

out of Well, get on to man flock. trying shots analogy, duck each your X to we're stay per

efficient back even the restructuring all include to how vents and our lines. are to see kind the and improved things, as those we're right Yes, of and sleep. them, respiratory ties They're trained training products target-rich cross-sell sales Brooks. for with that we our a and confident of of we So vents now, we our there. environments really of really across really vest being and production to and folks do of about now I sales complex all We're mean feel out thanks getting all management out team management increased target-rich

lot a but just the up beyond. crank year, half back to recruiting fuel going back and half more in not on we're for so And the of fire the

Todd Zehnder

miss to consistent And we I we're where them and And very that good we're the one very don't that take duck just careful will stay often. shots analogy, our theme at we're add to with going thing we generally.

but patient, prudent. we're we're So

Brooks O'Neil

Hopefully, makes all that sense.

me recent a mentioned that Let JV that for thing, lot of with the see Do or in a structure framework. the other markets ask other you and you've you and most you about that completed partners? replicating opportunities opportunity

Casey Hoyt

close Yes. I mean with we've gotten some.

I their think to so on and to few really present with line hoping success and we're so real of some and their world improve to I'm at opportunities, been the able Brooks, is forth. showing how it, data efficiencies next HomeMed to and we've where our bottom have

by for value end. on a, close we've now, back circle think the in meat right with others out mode, So prop ones from the can And we bring of we it b, that to there, expect you the been to more to if proving model with the year's and I then But the probably bone masses. will. pitch have our some we're

Brooks O'Neil

Absolutely.

to Or the what's I redeploy is is that have with you an It new that one on back buyback more. like probably in Philips and going in to guys guys that run any right? is capital for me you can favorable downside you XX-year a the Am going home and sounds them life. way there thinking equipment absolute ask Let sell just equipment used there? in a about some recall

Todd Zehnder

situation. replace probably a back correct think it at we're about fleet a working just correct. whole exactly thing about -- you of fleet it. at our that project the And we've our record going and sure nothing, been sell back. in if and accounting not we through been an to to has the on. folded that that. It's cost It's And with on sold We're We're we've We're positive XX% it project, but No, able already. work advantage well. But working exactly the this really has to extremely at it. of point, operational partner good the that able gain been point. company good a but as far, has Philips an in been patients a result team for to thus we're

Brooks O'Neil

the Sure. good work. Well, great. up keep Congratulations all and

Todd Zehnder

Thank you, Brooks.

Operator

from comes Instructions] with Your [Operator Zubkov Freedom question Broker. next Ilya

Ilya Zubkov

and have the question with Congrats a I dynamics. strong sales quarter. equipment on the supply

segment One mentioned the dynamics is comparing And revenue? that is this revenue the I'm X to segment's in see I growth resupply rebounding of on well the much segment elaborate sleep wondering the program. quarters. could because this of in quarterly drivers does how to the QX previous program this as you significantly revenue contribute the And

Todd Zehnder

The sales. specific about line is that supply item equipment correct? you're and that Is asking

Ilya Zubkov

Correct. Yes.

Todd Zehnder

of own due X being year so it, it, years. then strong mainly last, to our us sleep call is last if in and amount with sleep business in every you're or it who that months sleep resupply new to long-term business, the or is your supplies need patients X driver the familiar whatever And really primary the the is. is or business sleep Viemed It's Okay. we to our bought especially the X over creation bought the of the call then years, increasing value That our -- when last, that sleep out X -- but we HMP related X growth program.

piece flow. new that we've another patients going number into So is associated and It's continue to the grow. it, on as business. which has all to thousands is with CapEx stacked X program, of thousands It our cash of good resupply

item to grow And expect coming line fully the continue over quarters. so to we that

Ilya Zubkov

There on year service helpful. revenue. in service I of in ramp in the significant this a to quarter-to-quarter this I'm seasonality is revenue cause can up is any one have offering. fluctuations more And revenue due staffing there And the that curious That Okay. future? is the segment

Todd Zehnder

I see but that that in division. anything really. the Healthcare expanded stood those That's as we -- the our X years mean, future, Staffing group about off we we've the could over don't really several near And last not organically No, Those come up just in and years, go ago. term. large falling are

continue to We've and over some do. the our country. we this it value go as of out what some gotten just states division that's once not see we the So quarters. around couple there have can seasonal, explain growth next again, with some from new could they and while contracts that proposition And terms. at But it's point, coming good

Operator

question Cooper Doug next from with Your Beacon. comes

Doug Cooper

the perspective the price on our Congratulations in have an they where so low of before GLP-Xs a released one for to got EBITDA, people hit perspective. Xx trading nobody are Rotech what impact, terrific an was your to hard by to Based from has they presumably morning, think math that multiple highlighted to last on pretty been amazing like you a at seems EBITDA sort seems stock going X which much were multiple. results. the quarter same annualized sold have here -- has because anything quarter. when of all-time It's investor a the me stockholder be impact but an sense it guys break from this sector

Todd Zehnder

is or much out makes to with a explain tell can which not ways. you We studies been which any lot from rates. more and profitability, couple right great, to The of few our sleep away any off service keep their good. are could last is the XX% grow it all roughly on GLP is probably companies their only meaningful did up focused by able quarter, as nothing And fall is be it. now. we different in filling doing There's We're attrition it, we continue pulled and of means Sleep no business and sleep business It to there the seems we has quarters, it. to listen higher business sleep patients our like business doing we're pressure. happy of last that who to way, been growing we've having larger craze, people the are any a do

Outside of right to stock And the grow of ebbs that, point. the that, Doug, try bottom we price. considerate add try to now, some to is the price we line. going stock as to very time spend long we the has around know, keep back all the market our continuing of think company, at just as XX% stock But as flows to we're doing and we come

Doug Cooper

guys patients your you percent fleet Do the side? what of know on on are drugs GLP-X

Todd Zehnder

No, we don't.

haven't what our day. us that hear into respiratory research drives if number because complex it, out. from that. is But that, their I'd of that's our doving then patients. that's I XX% of our probably number kind peers that or We digging some ResMed think to I for and gone they every maybe in well. on you as peers some pretty again, us a somewhere And around percentage have know that of said we was are the focus think have of Once decent

Doug Cooper

last just with guys seeing months Okay. those based what just well, that, value And want, pipeline, company? one, the prices on maybe they the the for the over expectations traded XX private you for past as come on a publicly XX, down that M&A are have the side,

Todd Zehnder

from with were multiples, out multiples haven't talking really can't an there. but be of the gotten where We depressed that, like Turkey we -- and that significantly we talked HMP that discussions, point to private public in through the our much we're

company pay. the but sort opportunity things continue big about I So theoretical. for if prudent and starting to means going that's Rotech that right level are marker, of we're on think transaction to again. good up market where open a going set the of And seeing I of to And public to was get we're -- point multiple talking because we're be we detail, maybe transaction out that some get that think a that somewhat to we multiples look there that would that the -- the the

Doug Cooper

"Yes, do my be this vent of going there noninvasive And the the referred research XX%. for despite -- just What one just still been there now to physicians market. like referring of of the think the Or couple at Casey, final years for sort that and less sort showing you is here? start better is there market, all It's a than maybe tagalong the I'm applicable to a -- outcomes. What referring big me, bunch by how that is to least." you guys a long of said, could

Casey Hoyt

that Medicare our focus the population. Yes. the is we down, the X% we -- in I break really on Doug, investor it mean presentation, way

we're important up when going we the just of sub-XX%, population. in So the that. But bit to a private drastically little kind get up the assuming underserved is that commercial of higher. rest penetration say to we're Research sector the number a make in order or is still

We we've positive noninvasive accomplished over continue of that the out others ones to take more look positive Medicare proving the outside at studies, and now the population. benefits see ventilation. just It's not a Advantage to now years, exciting forces but the

had the we've to is patients. first time those that This access

see industry not we'll one that's are had charge guys see for in from now. the been on but and noninvasive borders now. that's good AAHomecare, be It's the association vet we've the leader -- studies years, changing, in the how So really physicians leading exciting across and jumping care have and is market, it's to doing doing our research to that those

it's seeing. all clinically we're So positive momentum, everything that

payers lean really And we are fail the to penetration drive to will more the other up try will less down where of and hope on and and ultimately, NIV, step for research of therapy of standard that become really an to treatment gold road. medical policies folks that, forms care alternative and so considering

Operator

questions remarks. no presenters to over like for back time, turn queue. I'd the this are to further there any our in At call further

Todd Zehnder

great any listening want other to Have a if Follow in support. up for thank there's day. everybody questions, and today. your We appreciate

Operator

a for of your XXXX the attending, wonderful This Quarter and rest have day. concludes Call. Earnings Viemed Thank you Second

Viemed Healthcare (VMD) 8 Aug 242024 Q2 Earnings call transcript