Operational highlights (all dollar amounts are USD):
- Net revenues for the quarter ended
December 31, 2023 reached a new Company record of$50 .7 million representing an increase of$13 .2 million, or 35%, over net revenues reported for the comparable quarter endedDecember 31, 2022 . Total net revenues for the year endedDecember 31, 2023 were a record-breaking$183.0 million , an increase of$44 .2 million, or 32%, over the year endedDecember 31, 2022 . - Net income for the quarter ended
December 31, 2023 totaled$3 .5 million, an increase of 43% over net income reported for the comparable quarter endedDecember 31, 2022 . Net income for the year endedDecember 31, 2023 totaled$10.2 million , an increase of 65% over the year endedDecember 31, 2022 , marking the Company's seventh consecutive year of positive net income. - Adjusted EBITDA for the quarter and year ended
December 31, 2023 totaled$12.8 million and a record$43.1 million , respectively. A reconciliation of reported non-GAAP financial measures to their most directly comparableU.S. GAAP financial measures can be found in the tables accompanying this press release. - Net cash provided by operating activities for the year ended
December 31, 2023 totaled$45.2 million , an increase of$17.5 million , or 62.9%, over the year endedDecember 31, 2022 . Free Cash Flow for the year endedDecember 31, 2023 totaled$19.1 million , an increase of$14.3 million , or 294%, over the year endedDecember 31, 2022 . - As of
December 31, 2023 , the Company maintains a strong cash balance of$12.8 million ($16.9 million atDecember 31, 2022 ), and an overall working capital balance of$6.2 million ($20.9 million atDecember 31, 2022 ). Long-term debt as ofDecember 31, 2023 amounted to$6.0 million (the company had no long-term debt atDecember 31, 2022 ). After successfully completing an approximately$30 million acquisition during 2023, the Company ended the year with no net debt and has approximately$53 million available under existing credit facilities. - The Company expects to generate net revenues of approximately
$49.7 million to$51.0 million during the first quarter of 2024 and assumes that the 75/25 blended Medicare reimbursement rate adjustment in non-rural, non-competitive bid areas is not extended.
"We're thrilled to announce another exceptional year of financial performance at
Conference Call Details
The Company will host a conference call to discuss fourth quarter and year end results on
Interested parties may participate in the call by dialing:
877-407-6176 (US Toll-Free)
+1-201-689-8451 (International)
Live Audio Webcast: https://event.choruscall.com/mediaframe/webcast.html?webcastid=Axpi0DDw
Following the conclusion of the call, an audio recording and transcript of the call can be accessed on the Company's website.
ABOUT
For further information, please contact:
905-326-1888
glen@bristolir.com
Chief Operating Officer
337-504-3802
investorinfo@viemed.com
Forward-Looking Statements
Certain statements contained in this press release may constitute “forward-looking statements” within the meaning of the
Use of Non-GAAP Financial Measures
This press release refers to Adjusted EBITDA and Free Cash Flow, which are financial measures that are not prepared in accordance with generally accepted accounting principles in
Management believes Adjusted EBITDA provides helpful information with respect to the Company’s operating performance as viewed by management, including a view of the Company’s business that is not dependent on the impact of the Company’s capitalization structure and items that are not part of the Company’s day-to-day operations. Management uses Adjusted EBITDA (i) to compare the Company’s operating performance on a consistent basis, (ii) to calculate incentive compensation for the Company’s employees, (iii) for planning purposes, including the preparation of the Company’s internal annual operating budget, and (iv) to evaluate the performance and effectiveness of the Company’s operational strategies. Accordingly, management believes that Adjusted EBITDA provides useful information in understanding and evaluating the Company’s operating performance in the same manner as management. Adjusted EBITDA is not a measurement of the Company’s financial performance under
The Company uses Free Cash Flow in its operational and financial decision-making and believes free cash flow is useful to investors because similar measures are frequently used by securities analysts, investors, ratings agencies and other interested parties to evaluate the Company's competitors and to measure the ability of companies to service their debt. The Company's presentation of Free Cash Flow should not be construed as a measure of liquidity or discretionary cash available to the Company to fund its cash needs, including investing in the growth of its business and meeting its obligations.
CONSOLIDATED BALANCE SHEETS (Expressed in thousands of | ||||||
At | At | |||||
ASSETS | ||||||
Current assets | ||||||
Cash and cash equivalents | $ | 12,839 | $ | 16,914 | ||
Accounts receivable, net | 18,451 | 15,379 | ||||
Inventory | 4,628 | 3,574 | ||||
Income tax receivable | — | 26 | ||||
Prepaid expenses and other assets | 2,449 | 3,849 | ||||
Total current assets | $ | 38,367 | $ | 39,742 | ||
Long-term assets | ||||||
Property and equipment, net | 73,579 | 67,743 | ||||
Finance lease right-of-use assets | 401 | — | ||||
Operating lease right-of-use assets | 2,872 | 694 | ||||
Equity investments | 1,680 | 2,155 | ||||
Debt investment | 2,219 | 2,000 | ||||
Deferred tax asset | 4,558 | 3,119 | ||||
Identifiable intangibles, net | 567 | — | ||||
29,765 | — | |||||
Other long-term assets | 887 | 1,590 | ||||
Total long-term assets | 116,528 | 77,301 | ||||
TOTAL ASSETS | $ | 154,895 | $ | 117,043 | ||
LIABILITIES | ||||||
Current liabilities | ||||||
Trade payables | $ | 4,180 | $ | 2,650 | ||
Deferred revenue | 6,207 | 4,624 | ||||
Income taxes payable | 2,153 | — | ||||
Accrued liabilities | 17,578 | 11,092 | ||||
Finance lease liabilities, current portion | 256 | — | ||||
Operating lease liabilities, current portion | 678 | 495 | ||||
Current debt | 1,072 | — | ||||
Total current liabilities | $ | 32,124 | $ | 18,861 | ||
Long-term liabilities | ||||||
Accrued liabilities | 558 | 889 | ||||
Finance lease liabilities, less current portion | 132 | — | ||||
Operating lease liabilities, less current portion | 2,184 | 199 | ||||
Long-term debt | 6,002 | — | ||||
Total long-term liabilities | $ | 8,876 | $ | 1,088 | ||
TOTAL LIABILITIES | $ | 41,000 | $ | 19,949 | ||
Commitments and Contingencies | — | — | ||||
SHAREHOLDERS' EQUITY | ||||||
Common stock - No par value: unlimited authorized; 38,506,161 and 38,049,739 issued and outstanding as of | 18,702 | 15,123 | ||||
Additional paid-in capital | 15,698 | 12,125 | ||||
Retained earnings | 79,495 | 69,846 | ||||
TOTAL SHAREHOLDERS' EQUITY | $ | 113,895 | $ | 97,094 | ||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 154,895 | $ | 117,043 |
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Expressed in thousands of | |||||||||||||||
Three Months Ended | Year Ended | ||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
Revenue | $ | 50,739 | $ | 37,508 | $ | 183,008 | $ | 138,832 | |||||||
Cost of revenue | 18,628 | 14,612 | 70,225 | 54,152 | |||||||||||
Gross profit | $ | 32,111 | $ | 22,896 | $ | 112,783 | $ | 84,680 | |||||||
Operating expenses | |||||||||||||||
Selling, general and administrative | 23,905 | 17,172 | 87,884 | 68,161 | |||||||||||
Research and development | 651 | 722 | 2,782 | 2,696 | |||||||||||
Stock-based compensation | 1,534 | 1,317 | 5,849 | 5,202 | |||||||||||
Depreciation and amortization | 434 | 241 | 1,391 | 1,012 | |||||||||||
Loss on disposal of property and equipment | 272 | 178 | 645 | 346 | |||||||||||
Other income, net | 26 | (268 | ) | (98 | ) | (989 | ) | ||||||||
Income from operations | $ | 5,289 | $ | 3,534 | $ | 14,330 | $ | 8,252 | |||||||
Non-operating income and expenses | |||||||||||||||
Income from equity method investments | 43 | 82 | 485 | 935 | |||||||||||
Interest expense, net | (256 | ) | (32 | ) | (424 | ) | (197 | ) | |||||||
Net income before taxes | 5,076 | 3,584 | 14,391 | 8,990 | |||||||||||
Provision for income taxes | 1,599 | 1,146 | 4,148 | 2,768 | |||||||||||
Net income | $ | 3,477 | $ | 2,438 | $ | 10,243 | $ | 6,222 | |||||||
Other comprehensive income | |||||||||||||||
Change in unrealized gain/loss on derivative instruments, net of tax | — | (56 | ) | — | 278 | ||||||||||
Other comprehensive income | $ | — | $ | (56 | ) | $ | — | $ | 278 | ||||||
Comprehensive income | $ | 3,477 | $ | 2,382 | $ | 10,243 | $ | 6,500 | |||||||
Net income per share | |||||||||||||||
Basic | $ | 0.09 | $ | 0.06 | $ | 0.27 | $ | 0.16 | |||||||
Diluted | $ | 0.09 | $ | 0.06 | $ | 0.25 | $ | 0.16 | |||||||
Weighted average number of common shares outstanding: | |||||||||||||||
Basic | 38,492,731 | 38,015,795 | 38,354,071 | 38,655,403 | |||||||||||
Diluted | 40,383,109 | 39,513,158 | 40,378,922 | 39,807,434 |
CONSOLIDATED STATEMENTS OF CASH FLOWS (Expressed in thousands of | ||||||||
Year Ended | ||||||||
2023 | 2022 | |||||||
Cash flows from operating activities | ||||||||
Net income | $ | 10,243 | $ | 6,222 | ||||
Adjustments for: | ||||||||
Depreciation and amortization | 21,862 | 15,630 | ||||||
Change in inventory reserve | — | (1,418 | ) | |||||
Stock-based compensation expense | 5,849 | 5,202 | ||||||
Distributions of earnings received from equity method investments | 980 | 1,079 | ||||||
Income from equity method investments | (485 | ) | (935 | ) | ||||
Income from debt investment | (219 | ) | — | |||||
Loss on disposal of property and equipment | 645 | 346 | ||||||
Deferred income tax (benefit) expense | (1,439 | ) | 1,746 | |||||
Changes in working capital, net of effects from acquisitions: | ||||||||
Accounts receivable, net | (1,058 | ) | (2,556 | ) | ||||
Inventory | (472 | ) | 301 | |||||
Prepaid expenses and other assets | 2,176 | (2,838 | ) | |||||
Trade payables | (859 | ) | (318 | ) | ||||
Deferred revenue | 851 | 871 | ||||||
Accrued liabilities | 4,959 | 2,549 | ||||||
Income tax payable/receivable | 2,179 | 1,867 | ||||||
Net cash provided by operating activities | $ | 45,212 | $ | 27,748 | ||||
Cash flows from investing activities | ||||||||
Purchase of property and equipment | (26,093 | ) | (22,898 | ) | ||||
Investment in equity investments | (20 | ) | (141 | ) | ||||
Cash paid for acquisition of HMP, net of cash acquired | (28,588 | ) | — | |||||
Investment in debt security | — | (2,000 | ) | |||||
Proceeds from sale of property and equipment | 2,588 | 1,063 | ||||||
Net cash used in investing activities | $ | (52,113 | ) | $ | (23,976 | ) | ||
Cash flows from financing activities | ||||||||
Proceeds from exercise of options | 1,303 | 283 | ||||||
Proceeds from term notes | 5,000 | — | ||||||
Principal payments on term notes | (3,721 | ) | (5,796 | ) | ||||
Proceeds from revolving credit facilities | 8,000 | — | ||||||
Payments on revolving credit facilities | (7,005 | ) | — | |||||
Shares redeemed to pay income tax | (594 | ) | (143 | ) | ||||
Shares repurchased under the share repurchase program | — | (9,568 | ) | |||||
Repayments of lease liabilities | (157 | ) | (42 | ) | ||||
Net cash provided by (used in) financing activities | $ | 2,826 | $ | (15,266 | ) | |||
Net decrease in cash and cash equivalents | (4,075 | ) | (11,494 | ) | ||||
Cash and cash equivalents at beginning of year | 16,914 | 28,408 | ||||||
Cash and cash equivalents at end of period | $ | 12,839 | $ | 16,914 | ||||
Supplemental disclosures of cash flow information | ||||||||
Cash paid during the period for interest | $ | 851 | $ | 231 | ||||
Cash paid (received) during the period for income taxes, net of refunds | $ | 3,566 | $ | (846 | ) | |||
Supplemental disclosures of non-cash transactions | ||||||||
Non-cash change in debt from the reclassification of debt issuance costs | $ | (594 | ) | $ | — | |||
Net non-cash changes to operating lease | $ | (41 | ) | $ | 530 |
Non-GAAP Financial Measures
This press release refers to “Adjusted EBITDA” which is a non-GAAP financial measure that does not have a standardized meaning prescribed by
The following table is a reconciliation of net income (loss), the most directly comparable
Reconciliation of Net Income to Non-GAAP Adjusted EBITDA (Expressed in thousands of (Unaudited) | ||||||||||||||||||
For the quarter ended | 2023 | 2023 | 2023 | 2023 | 2022 | 2022 | 2022 | 2022 | ||||||||||
Net Income | $ | 3,477 | $ | 2,919 | $ | 2,330 | $ | 1,517 | $ | 2,438 | $ | 1,055 | $ | 967 | $ | 1,762 | ||
Add back: | ||||||||||||||||||
Depreciation & amortization | 5,918 | 5,975 | 5,207 | 4,762 | 4,373 | 4,120 | 3,740 | 3,397 | ||||||||||
Interest expense (income) | 256 | 237 | (20 | ) | (49 | ) | 32 | 42 | 59 | 64 | ||||||||
Stock-based compensation(a) | 1,534 | 1,453 | 1,471 | 1,391 | 1,317 | 1,309 | 1,271 | 1,305 | ||||||||||
Transaction costs(b) | 61 | 177 | 94 | 206 | — | — | — | — | ||||||||||
Income tax expense | 1,599 | 1,320 | 728 | 501 | 1,146 | 456 | 421 | 745 | ||||||||||
Adjusted EBITDA | $ | 12,845 | $ | 12,081 | $ | 9,810 | $ | 8,328 | $ | 9,306 | $ | 6,982 | $ | 6,458 | $ | 7,273 |
(a) Represents non-cash, equity-based compensation expense associated with option and RSU awards.
(b) Represents transaction costs and expenses related to acquisition and integration efforts associated with recently announced or completed acquisitions.
Year Ended | |||
Net Income | $ | 10,243 | |
Add back: | |||
Depreciation & amortization | 21,862 | ||
Interest expense (income) | 424 | ||
Stock-based compensation(a) | 5,849 | ||
Transaction costs(b) | 538 | ||
Income tax expense | 4,148 | ||
Adjusted EBITDA | $ | 43,064 |
Free Cash Flow
This press release refers to “Free Cash Flow” which is a non-GAAP financial measure that does not have a standardized meaning prescribed by
The following unaudited table is a reconciliation of net cash provided by operating activities, the most directly comparable
(in thousands) | Three Months Ended | Year Ended | ||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Net cash provided by operating activities | $ | 13,284 | $ | 7,684 | $ | 45,212 | $ | 27,748 | ||||||||
Purchase of property and equipment | (7,932 | ) | (5,572 | ) | (26,093 | ) | (22,898 | ) | ||||||||
Free Cash Flow | $ | 5,352 | $ | 2,112 | $ | 19,119 | $ | 4,850 |
Key Financial and Operational Information (Expressed in thousands of (Unaudited) | ||||||||||||||||||||||||
For the quarter ended | 2023 | 2023 | 2023 | 2023 | 2022 | 2022 | 2022 | 2022 | ||||||||||||||||
Financial Information: | ||||||||||||||||||||||||
Revenue | $ | 50,739 | $ | 49,402 | $ | 43,311 | $ | 39,556 | $ | 37,508 | $ | 35,759 | $ | 33,310 | $ | 32,255 | ||||||||
Gross Profit | 32,111 | 30,562 | 26,106 | 24,004 | 22,896 | 21,651 | 20,390 | 19,743 | ||||||||||||||||
Gross Profit % | 63 | % | 62 | % | 60 | % | 61 | % | 61 | % | 61 | % | 61 | % | 61 | % | ||||||||
Net Income | 3,477 | 2,919 | 2,330 | 1,517 | 2,438 | 1,055 | 967 | 1,762 | ||||||||||||||||
Cash and Cash Equivalents (As of) | 12,839 | 10,078 | 10,224 | 23,544 | 16,914 | 21,478 | 21,922 | 29,248 | ||||||||||||||||
Total Assets (As of) | 154,895 | 149,400 | 149,117 | 124,634 | 117,043 | 119,419 | 115,904 | 119,007 | ||||||||||||||||
Adjusted EBITDA(1) | 12,845 | 12,081 | 9,810 | 8,328 | 9,306 | 6,982 | 6,458 | 7,273 | ||||||||||||||||
Operational Information: | ||||||||||||||||||||||||
Vent Patients(2) | 10,327 | 10,244 | 10,005 | 9,337 | 9,306 | 9,127 | 8,837 | 8,434 |
(1)Refer to "Non-GAAP Financial Measures" section above for definition of Adjusted EBITDA.
(2)Vent Patients represents the number of active ventilator patients on recurring billing service at the end of each calendar quarter.
Source:
2024 GlobeNewswire, Inc., source