Quipt Home Medical Announces New National Insurance Contract with Top 5 Health Insurer Based on Membership in the United States
Quipt Home Medical Corp. (NASDAQ:QIPT) has signed a significant national insurance contract with a major U.S. health insurer, marking its second such agreement since April 2022. This contract is expected to enhance patient access and accelerate organic growth. The company is currently serving over 270,000 active patients and reports an anticipated annualized revenue of $220 million and adjusted EBITDA of $49 million. CEO Greg Crawford expressed optimism about leveraging this contract to capture more eligible patients and enhance the company's growth strategy, following its largest acquisition to date.
- Executed a national insurance contract with a top five health insurer, enhancing patient access.
- Current patient base exceeds 270,000 active patients, indicating strong market presence.
- Anticipated annualized revenue of $220 million showcases significant financial growth.
- Projected adjusted EBITDA of $49 million reflects strong operational performance.
- Management expresses optimism about leveraging national contracts to capture more patients.
- None.
Opportunity to Accelerate Long-Term Organic Growth and Expand Patient Access
CINCINNATI, April 04, 2023 (GLOBE NEWSWIRE) -- Quipt Home Medical Corp. (“Quipt” or the “Company”) (NASDAQ:QIPT; TSXV:QIPT), a U.S. based home medical equipment provider, focused on end-to-end respiratory care, is very pleased to announce the execution of a national insurance contract with a top five health insurer based on membership in the United States1. This represents the second national insurance contract the Company has signed since April 2022.
Management Commentary
“Our strong start to the year has continued with the execution of our second national insurance contract with another top five health insurer in the United States. At present, we are providing cost-effective patient care to over 270,000 active patients across the nation and I am very excited that another major health insurer has recognized the value creation we are providing within the industry. Looking across the entire company, I am very pleased with the continued momentum that we are experiencing in the wake of our biggest acquisition to date, which has assisted us in achieving Annualized Revenue (defined below) of
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.
Reader Advisories
Unless otherwise specified, all dollar amounts in this press release are expressed in U.S. dollars.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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: Anticipated Annualized Adjusted EBITDA; anticipated pro forma cost savings and synergies and the timing of capturing them; the Company anticipating organic growth meeting; the impact the execution of this national insurance contract will have on the Company, if any; are intended to identify forward-looking information. All statements other than statements of historical fact may be forward-looking information. Such statements reflect the Company's current views and intentions with respect to future events, and current information available to the Company, and are subject to certain risks, uncertainties and assumptions, including: Great Elm (defined below) achieving results at least as good as historical performances; the financial information regarding Great Elm being verified when included in the Company’s consolidated financial statements prepared in accordance with generally accepted accounting principles in Canada as set out in the CPA Canada Handbook – Accounting under Part I, which incorporates International Financial Reporting Standards as issued by the International Accounting Standards Board; and
Non-GAAP Measures
This press release refers to “Annualized Revenue” and “Anticipated Annualized Adjusted EBITDA”, which are non-GAAP and non-IFRS financial measures that do not have standardized meanings prescribed by GAAP or IFRS. The Company’s presentation of these financial measures may not be comparable to similarly titled measures used by other companies. These financial measures are intended to provide additional information to investors concerning the Company’s performance.
Annualized Revenue as used in this press release is calculated as Quipt’s total revenues for the three months ended September 30, 2022 of
Anticipated Annualized Adjusted EBITDA as used in this press release is calculated as Annualized Adjusted EBITDA, as defined below, of
Annualized Adjusted EBITDA as used in this press release is calculated as Quipt’s Adjusted EBITDA for the three months ended September 30, 2022 of
| Quipt Three months ended September 30, 2022 (audited) | Great Elm Twelve months ended August 31, 2022 (unaudited) | |||||||
| Net income (loss) from continuing operations | $ | 1.8 | $ | (2.0 | ) | |||
| Add back: | - | - | ||||||
| Depreciation and amortization | 7.2 | 8.3 | ||||||
| Interest expense, net | 0.6 | 6.1 | ||||||
| (Recovery of) provision for income taxes | (2.4 | ) | - | |||||
| EBITDA | 7.2 | 12.4 | ||||||
| Stock-based compensation | 0.9 | - | ||||||
| Acquisition-related and other transaction costs | 0.1 | 0.6 | ||||||
| Other income from government grant | (0.6 | ) | (2.3 | ) | ||||
| Gain (loss) on foreign currency transactions | 0.1 | - | ||||||
| Loss on extinguishment of debt | 0.3 | - | ||||||
| Loss on settlement of shares to be issued | 0.4 | - | ||||||
| Change in fair value of derivatives | 0.1 | 2.1 | ||||||
| Parent company management fee | - | 0.4 | ||||||
| Other | (0.1 | ) | 0.2 | |||||
| Adjusted EBITDA | $ | 8.4 | $ | 13.4 | ||||
For further information please visit our website at www.Quipthomemedical.com, or contact:
Cole Stevens
VP of Corporate Development
Quipt Home Medical Corp.
859-300-6455
cole.stevens@myquipt.com
Gregory Crawford
Chief Executive Officer
Quipt Home Medical Corp.
859-300-6455
investorinfo@myquipt.com
1 https://www.valuepenguin.com/largest-health-insurance-companies#member
FAQ
What recent contract did Quipt Home Medical Corp. sign?
How many active patients does Quipt serve?
What is Quipt's anticipated annualized revenue?
What is Quipt's projected adjusted EBITDA?
How does the new contract impact Quipt's growth strategy?
