VMD VieMed Healthcare Inc

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 and six months ended June 30, 2024.

Operational highlights (all dollar amounts are USD):

• Net revenues for the quarter ended June 30, 2024 reached a new Company record of $55.0 million, representing an increase of $11.7 million, or 27%, over net revenues reported for the comparable quarter ended June 30, 2023. This represents 9% sequential growth in revenue over the first quarter ended March 31, 2024.

• Net income for the quarter ended June 30, 2024 totaled $1.5 million. Adjusted EBITDA for the quarter ended June 30, 2024 totaled $12.8 million, a 31% increase as compared to the quarter ended June 30, 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.

• The Company grew its ventilator patient count to a new Company record of 10,905, a 4.4% sequential increase over the ventilator patient count on March 31, 2024.

• As of June 30, 2024, the Company maintains a strong cash balance of $8.8 million and an overall working capital balance of $13.5 million. Long term debt as of June 30, 2024 amounted to $8.7 million and the Company has $50.2 million available under existing credit facilities.

• The Company expects to generate net revenues of approximately $56.5 million to $57.7 million during the third quarter of 2024.

“The remarkable organic growth of our complex respiratory services continues to validate our strategy at Viemed,” said Casey Hoyt, Viemed's CEO. "Our second-quarter results demonstrate the substantial demand for these essential services and confirm Viemed’s leading position in meeting the needs for complex respiratory care. The addressable market remains largely underserved, and our performance this quarter is a testament to our unwavering commitment to profitable growth by addressing the critical needs of an underserved market."

Conference Call Details

The Company will host a conference call to discuss second quarter results on Thursday, August 8, 2024 at 11:00 a.m. ET.

Interested parties may participate in the call by dialing:

888-437-3179 (US Toll-Free)+1 862-298-0702 (International)

Live Audio Webcast: https://event.choruscall.com/mediaframe/webcast.html?webcastid=V8qNtmZw

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 a provider of in-home medical equipment and post-acute respiratory healthcare services in the United States. Viemed’s service offerings are focused on effective in-home treatment with clinical practitioners providing therapy and counseling to patients in their homes using cutting edge technology. Visit our website at www.viemed.com.

For further information, please contact:

Glen AkselrodBristol Capital905-326-1888glen@bristolir.com

Todd ZehnderChief Operating OfficerViemed Healthcare, Inc.337-504-3802investorinfo@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 guidance for the third quarter, 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 Company operates; significant capital requirements and operating risks that the Company may be subject to; the ability of the Company to implement business strategies and pursue business opportunities; volatility in the market price of the Company's 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 the Company's 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 the Company is 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 the Company; the Company’s status as an emerging growth company; 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 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.

Use of 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 and may not be comparable to other similarly titled measures of other businesses. 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.

VIEMED HEALTHCARE, INC.CONDENSED CONSOLIDATED BALANCE SHEETS(Expressed in thousands of U.S. Dollars, except share amounts)(Unaudited)
		AtJune 30, 2024			AtDecember 31, 2023
ASSETS
Current assets
Cash and cash equivalents		$	8,807		$	12,839
Accounts receivable, net			27,063			18,451
Inventory			4,424			4,628
Income tax receivable			446			—
Prepaid expenses and other assets			4,235			2,449
Total current assets		$	44,975		$	38,367
Long-term assets
Property and equipment, net			74,701			73,579
Finance lease right-of-use assets			125			401
Operating lease right-of-use assets			2,893			2,872
Equity investments			1,794			1,680
Debt investment			1,000			2,219
Deferred tax asset			4,558			4,558
Identifiable intangibles, net			912			567
Goodwill			32,989			29,765
Other long-term assets			—			887
Total long-term assets		$	118,972		$	116,528
TOTAL ASSETS		$	163,947		$	154,895
LIABILITIES
Current liabilities
Trade payables		$	6,334		$	4,180
Deferred revenue			6,723			6,207
Income taxes payable			—			2,153
Accrued liabilities			16,801			17,578
Finance lease liabilities, current portion			111			256
Operating lease liabilities, current portion			737			678
Current portion of long-term debt			772			1,072
Total current liabilities		$	31,478		$	32,124
Long-term liabilities
Accrued liabilities			441			558
Finance lease liabilities, less current portion			28			132
Operating lease liabilities, less current portion			2,105			2,184
Long-term debt			8,715			6,002
Total long-term liabilities		$	11,289		$	8,876
TOTAL LIABILITIES		$	42,767		$	41,000
Commitments and Contingencies			—			—
SHAREHOLDERS' EQUITY
Common stock - No par value: unlimited authorized; 38,825,799 and 38,506,161 issued and outstanding as of June 30, 2024 and December 31, 2023, respectively			21,910			18,702
Additional paid-in capital			15,867			15,698
Retained earnings			81,594			79,495
TOTAL VIEMED HEALTHCARE, INC.'S SHAREHOLDERS' EQUITY		$	119,371		$	113,895
Noncontrolling interest in subsidiary			1,809			—
TOTAL SHAREHOLDERS' EQUITY			121,180			113,895
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY		$	163,947		$	154,895

VIEMED HEALTHCARE, INC.CONDENSED CONSOLIDATED STATEMENTS OF INCOME(Expressed in thousands of U.S. Dollars, except outstanding shares and per share amounts)(Unaudited)
	Three Months Ended June 30,								Six Months Ended June 30,
		2024				2023				2024				2023
Revenue	$	54,965			$	43,311			$	105,558			$	82,867
Cost of revenue		22,073				17,205				42,864				32,757
Gross profit	$	32,892			$	26,106			$	62,694			$	50,110
Operating expenses
Selling, general and administrative		26,503				20,563				51,317				40,325
Research and development		758				758				1,508				1,538
Stock-based compensation		1,620				1,471				3,052				2,862
Depreciation and amortization		377				298				792				538
Loss (gain) on disposal of property and equipment		(545	)			117				(332	)			95
Other expense (income), net		563				(2	)			537				(83	)
Income from operations	$	3,616			$	2,901			$	5,820			$	4,835
Non-operating income and expenses
Income (expense) from investments		(1,117	)			137				(1,050	)			172
Interest income (expense), net		(254	)			20				(404	)			69
Net income before taxes		2,245				3,058				4,366				5,076
Provision for income taxes		768				728				1,286				1,229
Net income	$	1,477			$	2,330			$	3,080			$	3,847
Net income attributable to noncontrolling interest		9				—				9				—
Net income attributable to Viemed Healthcare, Inc.	$	1,468			$	2,330			$	3,071			$	3,847
Net income per share
Basic	$	0.04			$	0.06			$	0.08			$	0.10
Diluted	$	0.04			$	0.06			$	0.08			$	0.10
Weighted average number of common shares outstanding:
Basic		38,822,980				38,324,249				38,558,479				38,240,902
Diluted		40,553,449				40,676,951				40,313,042				40,383,616

VIEMED HEALTHCARE, INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(Expressed in thousands of U.S. Dollars)(Unaudited)
		Six Months Ended June 30,
			2024				2023
Cash flows from operating activities
Net income		$	3,080			$	3,847
Adjustments for:
Depreciation and amortization			12,594				9,968
Stock-based compensation expense			3,052				2,862
Distributions of earnings received from equity method investments			147				392
Income from equity method investments			(261	)			(172	)
Loss (income) from debt investment			1,219				(110	)
Loss (gain) on disposal of property and equipment			(332	)			95
Amortization of deferred financing costs			85				—
Deferred income tax benefit			—				(725	)
Changes in working capital:
Accounts receivable, net			(8,225	)			(500	)
Inventory			470				(320	)
Prepaid expenses and other assets			1,523				2,076
Trade payables			1,114				(488	)
Deferred revenue			394				604
Accrued liabilities			(904	)			1,593
Income tax payable/receivable			(2,599	)			(1,003	)
Net cash provided by operating activities		$	11,357			$	18,119
Cash flows from investing activities
Purchase of property and equipment			(14,940	)			(10,759	)
Investment in equity investments			—				(7	)
Cash paid for acquisitions, net of cash acquired			(2,999	)			(27,121	)
Proceeds from sale of property and equipment			1,407				1,775
Net cash used in investing activities		$	(16,532	)		$	(36,112	)
Cash flows from financing activities
Proceeds from exercise of options			325				1,228
Proceeds from term notes			—				5,000
Principal payments on term notes			(810	)			(1,357	)
Proceeds from revolving credit facilities			3,000				8,000
Payments on revolving credit facilities			—				(1,005	)
Payments for debt issuance costs			(151	)			—
Shares redeemed to pay income tax			(972	)			(526	)
Repayments of finance lease liabilities			(249	)			(37	)
Net cash provided by financing activities		$	1,143			$	11,303
Net decrease in cash and cash equivalents			(4,032	)			(6,690	)
Cash and cash equivalents at beginning of year			12,839				16,914
Cash and cash equivalents at end of period		$	8,807			$	10,224
Supplemental disclosures of cash flow information
Cash paid during the period for interest		$	515			$	169
Cash paid during the period for income taxes, net of refunds		$	3,841			$	3,093
Supplemental disclosures of non-cash transactions
Equipment and other fixed asset purchases payable at end of period		$	2,725			$	2,526
Equipment sales receivable at end of period		$	2,187			$	—

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"). 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. 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, transactions 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	June 30, 2024		March 31, 2024		December 31,2023		September 30, 2023		June 30, 2023			March 31, 2023			December 31, 2022		September 30, 2022
Net income attributable to Viemed Healthcare, Inc.	$	1,468	$	1,603	$	3,477	$	2,919	$	2,330		$	1,517		$	2,438	$	1,055
Add back:
Depreciation & amortization		6,309		6,285		5,918		5,975		5,207			4,762			4,373		4,120
Interest expense (income)		254		150		256		237		(20	)		(49	)		32		42
Stock-based compensation(a)		1,620		1,432		1,534		1,453		1,471			1,391			1,317		1,309
Transaction costs(b)		221		110		61		177		94			206			—		—
Impairment of assets(c)		2,173		—		—		—		—			—			—		—
Income tax expense		768		518		1,599		1,320		728			501			1,146		456
Adjusted EBITDA	$	12,813	$	10,098	$	12,845	$	12,081	$	9,810		$	8,328		$	9,306	$	6,982

(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.

VIEMED HEALTHCARE, INC.Key Financial and Operational Information(Expressed in thousands of U.S. Dollars, except vent patients)(Unaudited)
For the quarter ended	June 30,2024			March 31, 2024			December 31, 2023			September 30, 2023			June 30, 2023			March 31, 2023			December 31, 2022			September 30, 2022
Financial Information:
Revenue	$	54,965		$	50,593		$	50,739		$	49,402		$	43,311		$	39,556		$	37,508		$	35,759
Gross Profit	$	32,892		$	29,802		$	32,111		$	30,562		$	26,106		$	24,004		$	22,896		$	21,651
Gross Profit %		60	%		59	%		63	%		62	%		60	%		61	%		61	%		61	%
Net Income	$	1,477		$	1,603		$	3,477		$	2,919		$	2,330		$	1,517		$	2,438		$	1,055
Cash (As of)	$	8,807		$	7,309		$	12,839		$	10,078		$	10,224		$	23,544		$	16,914		$	21,478
Total Assets (As of)	$	163,947		$	154,875		$	154,895		$	149,400		$	149,117		$	124,634		$	117,043		$	119,419
Adjusted EBITDA(1)	$	12,813		$	10,098		$	12,845		$	12,081		$	9,810		$	8,328		$	9,306		$	6,982
Operational Information:
Vent Patients(2)		10,905			10,450			10,327			10,244			10,005			9,337			9,306			9,127

(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.