CINCINNATI, Aug. 14, 2024 (GLOBE NEWSWIRE) -- Quipt Home Medical Corp. (the "Company") (NASDAQ:QIPT, TSX:QIPT), a U.S.-based home medical equipment provider, focused on end-to-end respiratory care, today announced its third quarter fiscal 2024 financial results and operational highlights. These results pertain to the three and nine months ended June 30, 2024, and are reported in United States dollars ("$", "dollars" and "US$") and have been rounded to the nearest hundred thousand. Quipt will host its Earnings Conference Call on Thursday, August 15, 2024, at 10:00 a.m. (ET). The dial-in number is 1 (844) 763 8274 or 1 (647) 484 8814. The live audio webcast can be found on the investor section of the Company's website through the following link: www.quipthomemedical.com. Financial Highlights: Revenue for Q3 2024 was $64.0 million compared to $60.3 million for Q3 2023, representing a 6.1% increase in revenue year-over-year. Organic growth contributed approximately $1.7 million, or 3% year-over-year. The Company saw improved sequential revenue performance as compared to the sequential 2.1% revenue decline experienced in Q2 2024, with flat sequential organic revenue growth seen in Q3 2024. For the nine months ended June 30, 2024, the Company has absorbed the revenue impact from the expiration of the Medicare 75/251 blended rate as of January 1, 2024. The Medicare 75/25 blended rate had been providing rate relief in certain geographies. Additionally, the Company faced the impact of the Change Healthcare cyber-attack2 as it related to eligibility determination for patients. Moreover, in certain regions, the Company experienced the withdrawal of Medicare Advantage members due to the capitated agreement engaged on with other providers in the industry3. Revenues for the nine months ended June 30, 2024, increased to $193.3 million, representing an increase of 21.4% from the same period in 2023. Organic growth contributed approximately $8.1 million or 5%. Recurring Revenue4 for Q3 2024 continued to be strong, representing 82% of total revenue, driven by overall growth in new equipment set-ups. Adjusted EBITDA4 for Q3 2024 was $14.2 million, or 22.3% of revenues, compared to Adjusted EBITDA for Q3 2023 of $13.9 million or 23.0% of revenues, representing a 2.7% increase year-over-year. Adjusted EBITDA was $44.5 million for the nine months ended June 30, 2024, a 23.7% increase from the same period in 2023. This represents 23.0% of revenue for the nine months ended June 30, 2024, an increase from 22.6% of revenue for the same period in 2023. Net income (loss) for Q3 2024 was $(1.7) million, or ($0.04) per diluted share, as compared to $(1.0) million, or $(0.03) per diluted share for the same period in 2023. Cash flow from operations was $28.6 million for the nine months ended June 30, 2024, compared to $27.3 million for the same period in 2023. For Q3 2024, as a percentage of revenue, bad debt expense increased to 5.0% from 4.0% in Q3 2023 due to the direct and indirect effects of the Change Healthcare cybersecurity incident resulting in a diversion from normal collection efforts. The Company reported cash on hand of $14.4 million as of June 30, 2024, compared to $14.6 million as of March 31, 2024. The Company has seen daily cash collections normalize in the wake of the Change Healthcare cyber-attack and continues to diligently work through the remaining backlog of claims. The Company had total credit availability of $38.1 million as of June 30, 2024, with $17.1 million available on its revolving credit facility and $21 million available pursuant to its delayed-draw term loan facility. The Company maintains a conservative balance sheet with a Net Debt to Adjusted EBITDA Leverage Ratio4 of 1.5x. Operational Highlights: The Company served 270,087 unique patients in the nine months ended June 30, 2024 compared to 239,146 in the nine months ended 2023, an increase of 12.9%. Compared to 547,038 unique set-ups/deliveries in the nine months ended June 30, 2023, the Company completed 641,786 unique set-ups/deliveries in the nine months ended June 30, 2024, an increase of 17.3%. This includes 120,118 respiratory resupply set-ups/deliveries in Q3 2024, compared to 108,391 in Q3 2023, an increase of 10.8%, which the Company credits to its continued use of technology and centralized intake processes. The Company continues to experience steady demand trends and referral patterns for respiratory equipment, including CPAPs, BiPAPs, oxygen concentrators, ventilators, as well as the CPAP resupply and other supplies business. The Company has approximately 350,000 unique active patients that were served at least once in the last twelve months, approximately 45,000 referring physicians, and approximately 135 locations. Management Commentary: "We are very proud of the progress made during the fiscal third quarter in mitigating the ongoing challenges we faced. Strength in our sleep resupply program and overall volume growth across our product mix helped us improve on our sequential revenue performance as compared to fiscal Q2. In real time, we are building momentum towards a return to historical organic growth levels. The operational team worked diligently to produce a consistent Adjusted EBITDA Margin4 of 22.3%, and we are expecting to see consistent margin performance for the remainder of the calendar year. As we continue to experience steady growth in our resupply program, and favorable referral patterns in real time, as well as working to navigate past the Change Healthcare cyber-attack, our robust balance sheet positions us exceptionally well to allocate capital flexibly. Given the improving acquisition environment, we are focused on identifying synergistic acquisition candidates that meet our stringent criteria and utilizing our Normal Course Issuer Bid (NCIB) opportunistically. Moreover, the recent acquisition of a larger peer in our industry underscores the significant valuation gap we have in the marketplace compared to our fundamentals. Furthermore, we anticipate a potential dislocation in the marketplace based on historical developments when large M&A takes place, and, if applicable, we are confident in our ability to pick up market share. On a go-forward basis, we will remain extremely disciplined, continuing to execute our strategic growth initiatives to drive organic growth, and economically build scale in attractive markets. This strategic approach not only strengthens our market position, but also highlights our commitment to creating long-term value for our shareholders," said CEO and Chairman Gregory Crawford. "Our focus on driving long-term organic growth, through our growing sales force, cross-selling of product categories and driving market penetration in continuum markets, positions us well for opportunities. With our disciplined approach to capital management, we are well-positioned to capitalize on synergistic acquisition opportunities and enhance our go-to-market strategy. Our performance demonstrates our ability to navigate the challenges faced in the first half of the year and leverage our strengths to deliver consistent results. As we move forward, we remain committed to investing in areas that drive sustainable growth and reinforce our market leadership focused on clinical respiratory care within the durable medical equipment ecosystem. Our operations are structured to allow us to effectively add revenue without the need to materially increase our cost structure which will be key in driving margin improvement as we execute on our strategy for expansion, and we are very confident in our ability to drive future growth." said CFO Hardik Mehta The Company's full financial statements and related management's discussion and analysis for the three and nine months ended June 30, 2024 are available under the Company's profile on SEDAR+ (www.sedarplus.com) and posted on the Company's web site at https://quipthomemedical.com/financials ABOUT QUIPT HOME MEDICAL CORP. The Company provides in-home monitoring and disease management services including end-to-end respiratory solutions for patients in the United States healthcare market. It seeks to continue to expand its offerings to include the management of several chronic disease states focusing on patients with heart or pulmonary disease, sleep disorders, reduced mobility, and other chronic health conditions. The primary business objective of the Company is to create shareholder value by offering a broader range of services to patients in need of in-home monitoring and chronic disease management. The Company's organic growth strategy is to increase annual revenue per patient by offering multiple services to the same patient, consolidating the patient's services, and making life easier for the patient. Forward-Looking Statements Certain statements contained in this press release constitute "forward-looking information" as such term is ‎‎‎‎‎defined in applicable Canadian securities legislation. The words "may", "would", "could", "should", "potential", ‎‎‎‎‎‎"will", "seek", "intend", "plan", "anticipate", "believe", "estimate", "expect", "outlook", and similar expressions ‎‎‎‎as ‎they relate to the Company, including: the Company anticipating a return to historical organic growth levels; the Company expecting to see consistent margin performance for the remainder of the calendar year; the Company potentially completing acquisitions; the Company utilizing its NCIB; the Company anticipating a potential dislocation in the marketplace based on historical developments and being confident in its ability to pick up market share; the Company adding revenue without the need to materially increase our cost ...