Viemed Healthcare Announces Record 2024 Financial Results
Viemed Healthcare (NASDAQ:VMD) reported record financial results for Q4 and full-year 2024. The company achieved Q4 net revenues of $60.7 million, up 20% year-over-year, while full-year revenues reached $224.3 million, increasing 23% from 2023.
Q4 net income was $4.3 million ($0.10 per diluted share), up 24% YoY, with full-year net income at $11.3 million ($0.28 per diluted share), marking the eighth consecutive year of profitability. The company expanded its patient base significantly, with ventilator patients up 14% to 11,795, PAP therapy patients up 43% to 21,338, and sleep resupply patients up 29% to 24,478.
For 2025, Viemed projects net revenue between $254-265 million and adjusted EBITDA of $54-58 million. The company maintains a strong financial position with $17.5 million in cash and $55 million available in credit facilities.
Viemed Healthcare (NASDAQ:VMD) ha riportato risultati finanziari record per il quarto trimestre e per l'intero anno 2024. L'azienda ha raggiunto entrate nette nel Q4 di $60,7 milioni, in aumento del 20% rispetto all'anno precedente, mentre le entrate annuali hanno raggiunto $224,3 milioni, aumentando del 23% rispetto al 2023.
Il reddito netto del Q4 è stato di $4,3 milioni ($0,10 per azione diluita), in aumento del 24% su base annua, con un reddito netto annuale di $11,3 milioni ($0,28 per azione diluita), segnando l'ottavo anno consecutivo di redditività. L'azienda ha ampliato significativamente la propria base di pazienti, con pazienti in ventilazione aumentati del 14% a 11.795, pazienti in terapia PAP aumentati del 43% a 21.338 e pazienti in rifornimento per il sonno aumentati del 29% a 24.478.
Per il 2025, Viemed prevede entrate nette tra $254-265 milioni e un EBITDA rettificato di $54-58 milioni. L'azienda mantiene una solida posizione finanziaria con $17,5 milioni in contante e $55 milioni disponibili in linee di credito.
Viemed Healthcare (NASDAQ:VMD) reportó resultados financieros récord para el cuarto trimestre y el año completo 2024. La compañía logró ingresos netos en el Q4 de $60.7 millones, un aumento del 20% interanual, mientras que los ingresos anuales alcanzaron $224.3 millones, aumentando un 23% desde 2023.
El ingreso neto del Q4 fue de $4.3 millones ($0.10 por acción diluida), un aumento del 24% interanual, con un ingreso neto anual de $11.3 millones ($0.28 por acción diluida), marcando el octavo año consecutivo de rentabilidad. La compañía amplió significativamente su base de pacientes, con pacientes en ventilación aumentados en un 14% a 11,795, pacientes en terapia PAP aumentados en un 43% a 21,338, y pacientes en reabastecimiento de sueño aumentados en un 29% a 24,478.
Para 2025, Viemed proyecta ingresos netos entre $254-265 millones y un EBITDA ajustado de $54-58 millones. La compañía mantiene una sólida posición financiera con $17.5 millones en efectivo y $55 millones disponibles en líneas de crédito.
Viemed Healthcare (NASDAQ:VMD)는 2024년 4분기 및 연간 기록적인 재무 결과를 보고했습니다. 회사는 4분기 순수익 $60.7 백만을 달성하여 전년 대비 20% 증가했으며, 연간 수익은 $224.3 백만에 도달하여 2023년 대비 23% 증가했습니다.
4분기 순이익은 $4.3 백만 ($0.10 희석 주당), 전년 대비 24% 증가했으며, 연간 순이익은 $11.3 백만 ($0.28 희석 주당)으로, 8년 연속 수익성을 기록했습니다. 회사는 환자 기반을 크게 확장하여, 인공호흡기 환자가 14% 증가하여 11,795명, PAP 치료 환자가 43% 증가하여 21,338명, 수면 재공급 환자가 29% 증가하여 24,478명에 도달했습니다.
2025년을 위해 Viemed는 순수익을 $254-265 백만으로 예상하며, 조정된 EBITDA는 $54-58 백만으로 예상하고 있습니다. 회사는 $17.5 백만의 현금과 $55 백만의 신용 시설을 보유하여 강력한 재무 상태를 유지하고 있습니다.
Viemed Healthcare (NASDAQ:VMD) a annoncé des résultats financiers records pour le quatrième trimestre et l'année complète 2024. L'entreprise a réalisé des revenus nets au T4 de $60,7 millions, en hausse de 20 % par rapport à l'année précédente, tandis que les revenus annuels ont atteint $224,3 millions, augmentant de 23 % par rapport à 2023.
Le revenu net du T4 était de $4,3 millions ($0,10 par action diluée), en hausse de 24 % d'une année sur l'autre, avec un revenu net annuel de $11,3 millions ($0,28 par action diluée), marquant la huitième année consécutive de rentabilité. L'entreprise a considérablement élargi sa base de patients, avec une augmentation de 14 % des patients sous ventilation à 11 795, une augmentation de 43 % des patients en thérapie PAP à 21 338, et une augmentation de 29 % des patients en réapprovisionnement de sommeil à 24 478.
Pour 2025, Viemed prévoit des revenus nets compris entre $254-265 millions et un EBITDA ajusté de $54-58 millions. L'entreprise maintient une solide position financière avec 17,5 millions de dollars en espèces et 55 millions de dollars disponibles en lignes de crédit.
Viemed Healthcare (NASDAQ:VMD) hat für das 4. Quartal und das gesamte Jahr 2024 Rekordergebnisse gemeldet. Das Unternehmen erzielte im 4. Quartal Nettoumsätze von $60,7 Millionen, was einem Anstieg von 20% im Vergleich zum Vorjahr entspricht, während die Umsätze des gesamten Jahres $224,3 Millionen erreichten, was einem Anstieg von 23% gegenüber 2023 entspricht.
Der Nettogewinn im 4. Quartal betrug $4,3 Millionen ($0,10 pro verwässerter Aktie), ein Anstieg von 24% im Jahresvergleich, während der Nettogewinn des gesamten Jahres bei $11,3 Millionen ($0,28 pro verwässerter Aktie) lag, was das achte aufeinanderfolgende Jahr der Rentabilität markiert. Das Unternehmen hat seine Patientenbasis erheblich erweitert, wobei die Zahl der Patienten mit Beatmungsgeräten um 14% auf 11.795, die Zahl der PAP-Therapiepatienten um 43% auf 21.338 und die Zahl der Patienten für Schlafnachschub um 29% auf 24.478 gestiegen ist.
Für 2025 prognostiziert Viemed Nettoumsätze zwischen $254-265 Millionen und ein bereinigtes EBITDA von $54-58 Millionen. Das Unternehmen hält eine starke finanzielle Position mit 17,5 Millionen Dollar in bar und 55 Millionen Dollar verfügbaren Kreditlinien.
- Record Q4 revenue of $60.7M, up 20% YoY
- Full-year revenue reached $224.3M, up 23% YoY
- Q4 net income increased 24% YoY
- PAP therapy patient count grew 43% YoY
- Strong balance sheet with $17.5M cash and $55M available credit
- Eight consecutive years of positive net income
- Operating cash flow decreased from $45.2M in 2023 to $39.1M in 2024
- Free cash flow declined from $21.7M in 2023 to $11.6M in 2024
Insights
Viemed Healthcare's record-breaking Q4 and full-year 2024 results highlight exceptional execution in scaling their respiratory care and home medical equipment business. The 20% year-over-year revenue growth in Q4 ($60.7M) and 23% growth for the full year ($224.3M) demonstrate substantial market penetration, well above industry averages.
Profitability metrics are equally impressive, with quarterly net income increasing 24% year-over-year to $4.3M ($0.10/diluted share) and full-year net income rising 10% to $11.3M ($0.28/diluted share). The company's ability to maintain profitability for eight consecutive years while investing in growth is remarkable in the healthcare services sector.
Patient growth metrics provide strong validation of Viemed's value proposition, with ventilator patients up 14% year-over-year, PAP therapy patients surging 43%, and sleep resupply patients growing 29%. These metrics suggest both expanding market share and effective cross-selling across product lines.
The balance sheet remains exceptionally solid with $17.5M cash against just $3.6M in long-term debt, plus $55M available credit. While operating cash flow decreased year-over-year ($39.1M vs $45.2M), this appears tied to deliberate fleet investments rather than operational issues.
The 2025 guidance of $254-265M revenue (13-18% growth) and $54-58M adjusted EBITDA (6-14% growth) suggests continued strong performance. The company is positioned to capitalize on increasing healthcare system emphasis on home-based care, technology-enabled services, and cost-efficient treatment modalities.
LAFAYETTE, La., March 10, 2025 (GLOBE NEWSWIRE) -- Viemed Healthcare, Inc. (the “Company” or “Viemed”) (NASDAQ:VMD), a national leader in respiratory care and technology-enabled home medical equipment services, announced today that it has reported its financial results for the three months and year ended December 31, 2024, and issued its guidance for the full year ending December 31, 2025.
Fourth Quarter and Full Year Operational Highlights (all dollar amounts are USD):
- Net revenues for the quarter ended December 31, 2024 reached a new Company record of
$60.7 million representing an increase of$10.0 million , or20% , over net revenues reported for the comparable quarter ended December 31, 2023. Total net revenues for the year ended December 31, 2024 were a record-breaking$224.3 million , an increase of$41.2 million , or23% , over the year ended December 31, 2023. - Net income attributable to Viemed for the quarter ended December 31, 2024 totaled
$4.3 million , or$0.10 per diluted share, an increase of24% over net income attributable to Viemed reported for the comparable quarter ended December 31, 2023. Net income attributable to Viemed for the year ended December 31, 2024 totaled$11.3 million , or$0.28 per diluted share, an increase of10% over the year ended December 31, 2023, marking the Company's eighth consecutive year of positive net income. - The Company increased its ventilator patient count to 11,795 as of December 31, 2024, an increase of
14% over December 31, 2023, and a4% sequential increase from September 30, 2024. - The Company increased its PAP therapy patient count to 21,338 as of December 31, 2024, an increase of
43% over December 31, 2023, and a10% sequential increase from September 30, 2024. The Company also increased its sleep resupply patient count to 24,478 as of December 31, 2024, an increase of29% over December 31, 2023, and an11% sequential increase from September 30, 2024. - Adjusted EBITDA for the quarter and year ended December 31, 2024 totaled
$14.2 million and a record$51.1 million , respectively. A reconciliation of reported non-GAAP financial measures to their most directly comparable U.S. GAAP financial measures can be found in the tables accompanying this press release. - The Company continues to generate substantial excess free cash flow while achieving robust organic growth and replacing a significant portion of its ventilator fleet during 2025. Net cash provided by operating activities for the year ended December 31, 2024 totaled
$39.1 million compared with$45.2 million for the year ended December 31, 2023. Free Cash Flow for the year ended December 31, 2024 totaled$11.6 million compared with$21.7 million for the year ended December 31, 2023. A reconciliation of reported non-GAAP financial measures to their most directly comparable U.S. GAAP financial measures can be found in the tables accompanying this press release. - As of December 31, 2024, the Company maintains a strong cash balance of
$17.5 million , and an overall working capital balance of$15.6 million . Long-term debt as of December 31, 2024 amounted to$3.6 million and the Company has$55 million available under existing credit facilities.
Full Year 2025 Guidance (all dollar amounts are USD):
- Net revenue for the year ending December 31, 2025 is expected to be in the range of
$254 million to$265 million . - Adjusted EBITDA for the year ending December 31, 2025 is expected to be in the range of
$54 million to$58 million . See “Forward-Looking Statements” below for further information on this non-GAAP financial guidance.
Casey Hoyt, Viemed’s CEO, noted, “We once again demonstrated our value as a vital link between patients, providers, and payers for complex respiratory services with fourth quarter results meeting the high end of our expectations and maintaining a track record of strong organic growth and profitability, while at the same time enhancing the balance sheet. The sequential improvement in our operational metrics throughout 2024 reinforces the momentum we have established with hard-won improvements in our sales force and diversification of the business. Likewise, the continued demand for our high-touch, technology-enabled clinical approach in a regulatory environment that stresses efficiency, home care, transparency, and compliance gives us greater confidence in our value proposition.”
“Looking ahead to 2025, we are leaning into what has worked well for us throughout 2024 and growing in ways that complement our existing strengths. Utilizing the systems and processes we have in place for sales and operating efficiencies, as well as our home-grown staffing business, we plan to ramp up our sales force at a more aggressive pace to further penetrate a massively underserved market for non-invasive ventilation, sleep, staffing, and other complementary services. We also expect our trusted place in the home and our extensive, national payer relationships to create new opportunities to amplify these partnerships and potentially pursue inorganic growth,” added Mr. Hoyt.
Conference Call Details
The Company will host a conference call to discuss fourth quarter and year end results, as well as its 2025 guidance, on Tuesday, March 11, 2025 at 11:00 a.m. ET.
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=TPQeuTNd
Following the conclusion of the call, an audio recording and transcript of the call can be accessed on the Company's website.
ABOUT VIEMED HEALTHCARE, INC.
Viemed is an in-home clinical care provider of post-acute respiratory healthcare equipment and services in the United States, including non-invasive ventilators (NIV), sleep therapy, staffing, and other complementary products and services. Viemed focuses on efficient and effective in-home treatment with clinical practitioners providing therapy, education and counseling to patients in their homes using high-touch and high-tech services. Visit our website at www.viemed.com
For further information, please contact:
Tripp Sullivan
SCR Partners, LLC
615-942-7077
tsullivan@scr-ir.com
Todd Zehnder
Chief Operating Officer
Viemed Healthcare, Inc.
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 U.S. Private Securities Litigation Reform Act of 1995 or “forward-looking information” as such term is defined in applicable Canadian securities legislation (collectively, “forward-looking statements”). Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “potential”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, “believes”, “projects”, or the negatives thereof or variations of such words and phrases or statements that certain actions, events or results “will”, “should”, “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved” or the negative of these terms or comparable terminology. All statements other than statements of historical fact, including those that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance, including the Company's net revenue and Adjusted EBITDA guidance for 2025, are not historical facts and may be forward-looking statements and may involve estimates, assumptions and uncertainties that could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements. 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. Many factors could cause the actual results, performance or achievements that may be expressed or implied by such forward-looking statements to vary from those described herein should one or more of these risks or uncertainties materialize. These factors include, without limitation: the general business, market and economic conditions in the regions in which the we operate; significant capital requirements and operating risks that we may be subject to; our ability to implement business strategies and pursue business opportunities; volatility in the market price of our common shares; the state of the capital markets; the availability of funds and resources to pursue operations; inflation; reductions in reimbursement rates and audits of reimbursement claims by various governmental and private payor entities; dependence on few payors; possible new drug discoveries; dependence on key suppliers; granting of permits and licenses in a highly regulated business; competition; disruptions in or attacks (including cyber-attacks) on our information technology, internet, network access or other voice or data communications systems or services; the evolution of various types of fraud or other criminal behavior to which we are exposed; difficulty integrating newly acquired businesses; the impact of new and changes to, or application of, current laws and regulations; the overall difficult litigation and regulatory environment; increased competition; increased funding costs and market volatility due to market illiquidity and competition for funding; critical accounting estimates and changes to accounting standards, policies, and methods used by us; and the occurrence of natural and unnatural catastrophic events or health epidemics or concerns, and claims resulting from such events or concerns, as well as other general economic, market and business conditions; and other factors beyond our control; as well as those risk factors discussed or referred to in the Company’s disclosure documents filed with the U.S. Securities and Exchange Commission (the “SEC”) available on the SEC’s website at www.sec.gov, including the Company’s most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q, and with the securities regulatory authorities in certain provinces of Canada available at www.sedar.com. Should any factor affect the Company in an unexpected manner, or should assumptions underlying the forward-looking statements prove incorrect, the actual results or events may differ materially from the results or events predicted. Any such forward-looking statements are expressly qualified in their entirety by this cautionary statement. Moreover, the Company does not assume responsibility for the accuracy or completeness of such forward-looking statements. The forward-looking statements included in this press release are made as of the date of this press release and the Company undertakes no obligation to publicly update or revise any forward-looking statements, other than as required by applicable law.
This press release contains non-GAAP financial guidance. There is no reliable or reasonably estimable comparable GAAP measure for the Company’s non-GAAP financial guidance because the Company is not able to reliably predict the impact of certain items that typically have one or more of the following characteristics: highly variable, difficult to project, unusual in nature, significant to the results of a particular period or not indicative of future operating results. Similar charges or gains were recognized in prior periods and will likely reoccur in future periods. As a result, reconciliation of the non-GAAP financial guidance to the most directly comparable GAAP measure is not available without unreasonable effort. In addition, the Company believes such a reconciliation would imply a degree of precision and certainty that could be confusing to investors. The variability of the specified items may have a significant and unpredictable impact on the Company’s future GAAP results.
The Company’s financial guidance in this press release excludes the impact of potential future strategic acquisitions and any items that have not yet been identified or quantified. This guidance is subject to risks and uncertainties inherent in all forward-looking statements, as outlined above.
| VIEMED HEALTHCARE, INC. CONSOLIDATED BALANCE SHEETS (Expressed in thousands of U.S. Dollars, except share amounts) | |||||||
| At December 31, 2024 | At December 31, 2023 | ||||||
| ASSETS | |||||||
| Current assets | |||||||
| Cash and cash equivalents | $ | 17,540 | $ | 12,839 | |||
| Accounts receivable, net | 24,911 | 18,451 | |||||
| Inventory | 4,320 | 4,628 | |||||
| Prepaid expenses and other assets | 6,109 | 2,449 | |||||
| Total current assets | $ | 52,880 | $ | 38,367 | |||
| Long-term assets | |||||||
| Property and equipment, net | 76,279 | 73,579 | |||||
| Finance lease right-of-use assets | 50 | 401 | |||||
| Operating lease right-of-use assets | 2,831 | 2,872 | |||||
| Equity investments | 2,794 | 1,680 | |||||
| Debt investment | — | 2,219 | |||||
| Deferred tax asset | 8,398 | 4,558 | |||||
| Identifiable intangibles, net | 848 | 567 | |||||
| Goodwill | 32,989 | 29,765 | |||||
| Other long-term assets | — | 887 | |||||
| Total long-term assets | 124,189 | 116,528 | |||||
| TOTAL ASSETS | $ | 177,069 | $ | 154,895 | |||
| LIABILITIES | |||||||
| Current liabilities | |||||||
| Trade payables | $ | 5,322 | $ | 4,180 | |||
| Deferred revenue | 6,694 | 6,207 | |||||
| Income taxes payable | 3,883 | 2,153 | |||||
| Accrued liabilities | 20,157 | 17,578 | |||||
| Finance lease liabilities, current portion | 50 | 256 | |||||
| Operating lease liabilities, current portion | 811 | 678 | |||||
| Current portion of long-term debt | 409 | 1,072 | |||||
| Total current liabilities | $ | 37,326 | $ | 32,124 | |||
| Long-term liabilities | |||||||
| Accrued liabilities | 846 | 558 | |||||
| Finance lease liabilities, less current portion | — | 132 | |||||
| Operating lease liabilities, less current portion | 2,007 | 2,184 | |||||
| Long-term debt | 3,589 | 6,002 | |||||
| Total long-term liabilities | $ | 6,442 | $ | 8,876 | |||
| TOTAL LIABILITIES | $ | 43,768 | $ | 41,000 | |||
| Commitments and Contingencies | — | — | |||||
| SHAREHOLDERS' EQUITY | |||||||
| Common stock - No par value: unlimited authorized; 39,132,897 and 38,506,161 issued and outstanding as of December 31, 2024 and December 31, 2023, respectively | 23,365 | 18,702 | |||||
| Additional paid-in capital | 18,337 | 15,698 | |||||
| Retained earnings | 89,691 | 79,495 | |||||
| TOTAL VIEMED HEALTHCARE, INC.'S SHAREHOLDERS' EQUITY | $ | 131,393 | $ | 113,895 | |||
| Noncontrolling interest in subsidiary | 1,908 | — | |||||
| TOTAL SHAREHOLDERS' EQUITY | 133,301 | 113,895 | |||||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 177,069 | $ | 154,895 | |||
| VIEMED HEALTHCARE, INC. CONSOLIDATED STATEMENTS OF INCOME (Expressed in thousands of U.S. Dollars, except outstanding shares and per share amounts) | |||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Revenue | $ | 60,695 | $ | 50,739 | $ | 224,257 | $ | 183,008 | |||||||
| Cost of revenue | 24,557 | 18,628 | 91,054 | 70,225 | |||||||||||
| Gross profit | $ | 36,138 | $ | 32,111 | $ | 133,203 | $ | 112,783 | |||||||
| Operating expenses | |||||||||||||||
| Selling, general and administrative | 28,211 | 23,905 | 106,199 | 87,884 | |||||||||||
| Research and development | 803 | 651 | 3,068 | 2,782 | |||||||||||
| Stock-based compensation | 1,521 | 1,534 | 6,285 | 5,849 | |||||||||||
| Depreciation and amortization | 343 | 434 | 1,483 | 1,391 | |||||||||||
| Loss (gain) on disposal of property and equipment | (1,104 | ) | 272 | (1,905 | ) | 645 | |||||||||
| Other expense (income), net | (88 | ) | 26 | 173 | (98 | ) | |||||||||
| Income from operations | $ | 6,452 | $ | 5,289 | $ | 17,900 | $ | 14,330 | |||||||
| Non-operating income and expenses | |||||||||||||||
| Income (expense) from investments | — | 43 | (954 | ) | 485 | ||||||||||
| Interest expense, net | (147 | ) | (256 | ) | (776 | ) | (424 | ) | |||||||
| Net income before taxes | 6,305 | 5,076 | 16,170 | 14,391 | |||||||||||
| Provision for income taxes | 1,881 | 1,599 | 4,761 | 4,148 | |||||||||||
| Net income | $ | 4,424 | $ | 3,477 | $ | 11,409 | $ | 10,243 | |||||||
| Net income attributable to noncontrolling interest | 108 | — | 144 | — | |||||||||||
| Net income attributable to Viemed Healthcare, Inc. | $ | 4,316 | $ | 3,477 | $ | 11,265 | $ | 10,243 | |||||||
| Net income per share | |||||||||||||||
| Basic | $ | 0.11 | $ | 0.09 | $ | 0.29 | $ | 0.27 | |||||||
| Diluted | $ | 0.10 | $ | 0.09 | $ | 0.28 | $ | 0.25 | |||||||
| Weighted average number of common shares outstanding: | |||||||||||||||
| Basic | 39,027,522 | 38,492,731 | 38,754,893 | 38,354,071 | |||||||||||
| Diluted | 41,522,457 | 40,383,109 | 40,805,085 | 40,378,922 | |||||||||||
| VIEMED HEALTHCARE, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Expressed in thousands of U.S. Dollars) | |||||||
| Year Ended December 31, | |||||||
| 2024 | 2023 | ||||||
| Cash flows from operating activities | |||||||
| Net income | $ | 11,409 | $ | 10,243 | |||
| Adjustments for: | |||||||
| Depreciation and amortization | 25,368 | 21,862 | |||||
| Change in inventory reserve | — | — | |||||
| Stock-based compensation expense | 6,285 | 5,849 | |||||
| Distributions of earnings received from equity method investments | 147 | 980 | |||||
| Income from equity method investments | (261 | ) | (485 | ) | |||
| Loss (income) from debt investment | 1,344 | (219 | ) | ||||
| Loss (gain) on disposal of property and equipment | (1,905 | ) | 645 | ||||
| Amortization of deferred financing costs | 187 | — | |||||
| Deferred income tax expense (benefit) | (3,840 | ) | (1,439 | ) | |||
| Changes in working capital: | |||||||
| Accounts receivable, net | (6,073 | ) | (1,058 | ) | |||
| Inventory | 574 | (472 | ) | ||||
| Prepaid expenses and other assets | 544 | 2,176 | |||||
| Trade payables | 359 | (859 | ) | ||||
| Deferred revenue | 364 | 851 | |||||
| Accrued liabilities | 2,857 | 4,959 | |||||
| Income tax payable/receivable | 1,730 | 2,179 | |||||
| Net cash provided by operating activities | $ | 39,089 | $ | 45,212 | |||
| Cash flows from investing activities | |||||||
| Purchase of property and equipment | (37,771 | ) | (26,093 | ) | |||
| Investment in equity investments | (1,000 | ) | (20 | ) | |||
| Cash paid for acquisitions, net of cash acquired | (2,999 | ) | (28,588 | ) | |||
| Investment in debt security | — | — | |||||
| Proceeds from sale of debt security | 750 | — | |||||
| Proceeds from sale of property and equipment | 10,321 | 2,588 | |||||
| Net cash used in investing activities | $ | (30,699 | ) | $ | (52,113 | ) | |
| Cash flows from financing activities | |||||||
| Proceeds from exercise of options | 1,017 | 1,303 | |||||
| Proceeds from term notes | — | 5,000 | |||||
| Principal payments on term notes | (1,071 | ) | (3,721 | ) | |||
| Proceeds from revolving credit facilities | 3,000 | 8,000 | |||||
| Principal payments on revolving credit facilities | (5,000 | ) | (7,005 | ) | |||
| Payments for debt issuance costs | (192 | ) | — | ||||
| Shares redeemed to pay income tax | (1,069 | ) | (594 | ) | |||
| Shares repurchased under the share repurchase program | — | — | |||||
| Repayments of finance lease liabilities | (338 | ) | (157 | ) | |||
| Distributions to non-controlling interest | (36 | ) | — | ||||
| Net cash provided by (used in) financing activities | $ | (3,689 | ) | $ | 2,826 | ||
| Net increase (decrease) in cash and cash equivalents | 4,701 | (4,075 | ) | ||||
| Cash and cash equivalents at beginning of year | 12,839 | 16,914 | |||||
| Cash and cash equivalents at end of period | $ | 17,540 | $ | 12,839 | |||
| Supplemental disclosures of cash flow information | |||||||
| Cash paid during the period for interest | $ | 950 | $ | 851 | |||
| Cash paid during the period for income taxes, net of refunds | $ | 6,827 | $ | 3,566 | |||
| 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 | ) | ||
| Equipment and other fixed asset purchases payable at end of period | $ | 2,179 | $ | 1,396 | |||
| Equipment sales receivable at end of period | $ | 2,844 | $ | — | |||
| Non-cash consideration received for sale of debt security | $ | 125 | $ | — | |||
Non-GAAP Financial Measures
This press release refers to “Adjusted EBITDA”, which is a financial measure that is not prepared in accordance with generally accepted accounting principles in the United States ("GAAP"). Adjusted EBITDA should be considered in addition to, not as a substitute for, or superior to, financial measures calculated in accordance with U.S. GAAP. 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 U.S. GAAP and should not be considered as an alternative to revenue or net income, as applicable, or any other performance measures derived in accordance with U.S. GAAP. Adjusted EBITDA has limitations as an analytical tool and you should not consider it in isolation or as a substitute for analysis of the Company’s operating results as reported under U.S. GAAP. Adjusted EBITDA does not reflect the impact of certain cash charges resulting from matters the Company considers not to be indicative of ongoing operations; and other companies in the Company’s industry may calculate Adjusted EBITDA differently than we do, limiting its usefulness as a comparative measure. In calculating Adjusted EBITDA, certain items (mostly non-cash) are excluded from net income including depreciation and amortization of capitalized assets, net interest expense (income), stock based compensation, transaction costs, impairment of assets, and taxes.
The following table is a reconciliation of net income (loss), the most directly comparable U.S. GAAP measure, to Adjusted EBITDA, on a historical basis for the periods indicated:
| VIEMED HEALTHCARE, INC. Reconciliation of Net Income to Non-GAAP Adjusted EBITDA (Expressed in thousands of U.S. Dollars) (Unaudited) | ||||||||||||||||||||||||
| For the quarter ended | December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 | March 31, 2023 | ||||||||||||||||
| Net Income attributable to Viemed Healthcare, Inc. | $ | 4,316 | $ | 3,878 | $ | 1,468 | $ | 1,603 | $ | 3,477 | $ | 2,919 | $ | 2,330 | $ | 1,517 | ||||||||
| Add back: | ||||||||||||||||||||||||
| Depreciation & amortization | 6,366 | 6,408 | 6,309 | 6,285 | 5,918 | 5,975 | 5,207 | 4,762 | ||||||||||||||||
| Interest expense (income) | 147 | 225 | 254 | 150 | 256 | 237 | (20 | ) | (49 | ) | ||||||||||||||
| Stock-based compensation(a) | 1,521 | 1,712 | 1,620 | 1,432 | 1,534 | 1,453 | 1,471 | 1,391 | ||||||||||||||||
| Transaction costs(b) | 11 | 12 | 221 | 110 | 61 | 177 | 94 | 206 | ||||||||||||||||
| Impairment of assets(c) | — | 125 | 2,173 | — | — | — | — | — | ||||||||||||||||
| Income tax expense | 1,881 | 1,594 | 768 | 518 | 1,599 | 1,320 | 728 | 501 | ||||||||||||||||
| Adjusted EBITDA | $ | 14,242 | $ | 13,954 | $ | 12,813 | $ | 10,098 | $ | 12,845 | $ | 12,081 | $ | 9,810 | $ | 8,328 | ||||||||
| For the year ended | December 31, 2024 | December 31, 2023 | |||||||
| Net Income attributable to Viemed Healthcare, Inc. | $ | 11,265 | $ | 10,243 | |||||
| Add back: | |||||||||
| Depreciation & amortization | 25,368 | 21,862 | |||||||
| Interest expense (income) | 776 | 424 | |||||||
| Stock-based compensation(a) | 6,285 | 5,849 | |||||||
| Transaction costs(b) | 354 | 538 | |||||||
| Impairment of assets(c) | 2,298 | — | |||||||
| Income tax expense | 4,761 | 4,148 | |||||||
| Adjusted EBITDA | $ | 51,107 | $ | 43,064 | |||||
| (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. |
| (c) | Represents impairments of the fair value of investment and litigation-related assets. |
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 U.S. GAAP. Free Cash Flow is defined as net cash provided by operating activities less cash paid for purchases of property and equipment, net of proceeds from sale of property & equipment. Historically reported amounts of Free Cash Flow for the year ended December 31, 2023 have been recast to include the effect of proceeds from the sale of property and equipment. This adjustment aligns the calculation with the Company’s current presentation methodology and more accurately reflects net cash flows for capital expenditures by accounting for inflows on asset dispositions. The Company's presentation of this financial measure may not be comparable to similarly titled measures used by other companies.
The Company uses free cash flow, a non-GAAP financial measure, in its operational and financial decision-making. Management believes free cash flow is useful to investors as it is commonly used by analysts, investors, rating agencies, and other stakeholders to assess competitors and evaluate a company's ability to service its debt. However, free cash flow should not be viewed as a measure of liquidity or as an indicator of cash available for discretionary use, including business investments or meeting financial obligations.
The following unaudited table is a reconciliation of net cash provided by operating activities, the most directly comparable U.S. GAAP measure, to Free Cash Flow, on a historical basis for the periods indicated:
| Year Ended December 31, | |||||||||
| (in thousands) | 2024 | 2023 | |||||||
| Net cash provided by operating activities | $ | 39,089 | $ | 45,212 | |||||
| Purchase of property and equipment | (37,771 | ) | (26,093 | ) | |||||
| Proceeds from sale of property & equipment | 10,321 | 2,588 | |||||||
| Free Cash Flow | $ | 11,639 | $ | 21,707 | |||||
The revenues from each major source are summarized in the following table:
| Year Ended December 31, | |||||||||||||||||||||||
| 2024 | % of Total Revenue | 2023 | % of Total Revenue | $ Change | % Change | ||||||||||||||||||
| Net revenue from rentals | |||||||||||||||||||||||
| Ventilator rentals, non-invasive and invasive | $ | 124,577 | 55.6 | % | $ | 108,258 | 59.2 | % | $ | 16,319 | 15.1 | % | |||||||||||
| Other home medical equipment rentals | 48,651 | 21.7 | % | 38,315 | 20.9 | % | 10,336 | 27.0 | % | ||||||||||||||
| Net revenue from sales and services | |||||||||||||||||||||||
| Equipment and supply sales | 30,896 | 13.7 | % | 25,770 | 14.1 | % | 5,126 | 19.9 | % | ||||||||||||||
| Service revenues | 20,133 | 9.0 | % | 10,665 | 5.8 | % | 9,468 | 88.8 | % | ||||||||||||||
| Total net revenue | $ | 224,257 | 100.0 | % | $ | 183,008 | 100.0 | % | $ | 41,249 | 22.5 | % | |||||||||||
FAQ
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