NEW YORK, June 7, 2025 /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of  Quipt Home Medical Corp. ("Quipt" or the "Company") (NASDAQ: QIPT). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.The investigation concerns whether Quipt and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices. [Click here for information about joining the class action]On June 5, 2025, Forag ...

Core Viewpoint - Pomerantz LLP is investigating potential securities fraud or unlawful business practices involving Quipt Home Medical Corp and its officers or directors [1] Group 1: Investigation and Claims - Pomerantz LLP is conducting an investigation on behalf of investors of Quipt Home Medical Corp regarding possible securities fraud [1] - Investors are encouraged to contact Pomerantz LLP for more information about the investigation [1] Group 2: Shareholder Actions - Forager Capital Management, a major shareholder of Quipt, has requested the company to retract a statement made on May 21, 2025, which they claim is false and misleading regarding an acquisition offer [3] - Following the press release from Forager, Quipt's stock price decreased by $0.18, or 8.53%, closing at $1.93 per share on June 5, 2025 [3]

Core Viewpoint - Quipt Home Medical Corp. has received an unsolicited non-binding proposal from Forager Capital Management to acquire 100% of its common shares at a price of $3.10 per share [1] Group 1: Proposal Details - The proposal is non-binding, conditional, and indicative, indicating that it is not a formal offer yet [1] - The Company has a Non-Disclosure and Standstill Agreement with Forager, which prohibits Forager from acquiring any equity securities or assets of Quipt for six months without prior approval from the Board [2] - The Board has not provided any prior written approval for the proposal, adhering to the terms of the Agreement [2] Group 2: Company Strategy and Operations - Quipt focuses on providing in-home monitoring and disease management services, particularly in respiratory care, and aims to expand its offerings for chronic disease management [4] - The primary business objective is to create shareholder value by offering a broader range of services to patients, thereby increasing annual revenue per patient [4] - The Company is committed to driving sustainable value for its shareholders and will consult with financial and legal advisors regarding the proposal [3]

Financial Performance - Revenue for Q2 2025 was $57.4 million, a 6% decrease from $61.3 million in Q2 2024, impacted by Medicare Advantage member withdrawals and a non-renewed supply contract[6]. - Adjusted EBITDA for Q2 2025 was $13.4 million, representing 23.3% of revenue, down from $14.9 million or 24.3% of revenue in Q2 2024, a 10% decrease[6]. - Net loss for Q2 2025 was ($3.0) million, or ($0.07) per diluted share, compared to a net loss of ($0.7) million, or ($0.02) per diluted share in Q2 2024[6]. - Adjusted EBITDA for Q2 annualized is $53.6 million[20]. Revenue Composition - Recurring revenue for Q2 2025 was strong at 81% of total revenue, calculated as $46.3 million from rentals and sales of respiratory resupplies[6][19]. Cash Flow and Liquidity - Cash flow from operations for the six months ended March 31, 2025, was $18.2 million, an increase from $14.9 million for the same period in 2024[6]. - The company reported $17.1 million in cash on hand as of March 31, 2025, up from $15.5 million as of December 31, 2024[6]. Patient Metrics - The company served 146,000 unique patients as of March 31, 2025, a 2% decline year-over-year from 149,000 patients[6]. Debt and Leverage - The net debt to adjusted EBITDA leverage ratio was 1.5x, indicating a conservative balance sheet[6]. - Net Debt as of March 31, 2025, is $82.4 million[20]. - Senior credit facility principal amounts to $71.5 million[20]. - Equipment loans total $10.1 million[20]. - Lease liabilities are $17.9 million[20]. Expansion and Product Development - The company launched two new De Novo sites in Florida and Alabama, expanding its national footprint[13]. - A new Medicare-approved airway clearance device was introduced, enhancing the company's product portfolio for higher-acuity respiratory care[13].

Financial Performance - Total revenue for the three months ended March 31, 2025, was $57,376,000, a decrease of 2.9% compared to $61,251,000 for the same period in 2024[16] - Net loss for the six months ended March 31, 2025, was $4,125,000, compared to a net loss of $2,227,000 for the same period in 2024, representing an increase in loss of 85.5%[21] - Operating income for the three months ended March 31, 2025, was a loss of $999,000, compared to an operating income of $901,000 for the same period in 2024[16] - The company reported a basic loss per share of $0.07 for the three months ended March 31, 2025, compared to a loss of $0.02 per share for the same period in 2024[16] - Net loss for the three months ended March 31, 2025, increased to $3,042,000 from $739,000 for the same period in 2024[95] - Adjusted EBITDA for the three months ended March 31, 2025, was $13,351,000, compared to $14,897,000 for the same period in 2024[99] Assets and Liabilities - Total current assets increased to $74,968,000 as of March 31, 2025, from $73,054,000 as of September 30, 2024, reflecting a growth of 2.6%[15] - Total liabilities rose to $141,075,000 as of March 31, 2025, compared to $140,057,000 as of September 30, 2024, indicating a slight increase of 0.7%[15] - Total shareholders' equity decreased to $103,570,000 as of March 31, 2025, from $107,191,000 as of September 30, 2024, a decline of 3.0%[15] - The net carrying value of long-term debt is $70,285,000 as of March 31, 2025, up from $67,793,000 as of September 30, 2024[37] - The total principal balance of the senior credit facility is $71,475,000 as of March 31, 2025, compared to $69,223,000 as of September 30, 2024[37] Cash Flow - Cash at the end of the period increased to $17,145,000 from $16,174,000, marking a rise of 6.0%[21] - The company had a net cash flow provided by operating activities of $18,246,000 for the six months ended March 31, 2025, compared to $14,895,000 for the same period in 2024, an increase of 22.5%[21] - Net cash flow used in investing activities increased to $5,217,000 for the six months ended March 31, 2025, from $2,825,000 for the same period in 2024[104] - Net cash flow used in financing activities decreased to $11,219,000 for the six months ended March 31, 2025, from $14,713,000 for the same period in 2024[105] Expenses - The total operating expenses for the six months ended March 31, 2025, were $60,291,000, slightly down from $60,503,000 for the same period in 2024[57] - Operating expenses for the three months ended March 31, 2025, were $29,893,000, a decrease of $803,000, or 3%, from $30,696,000 in the same period of 2024[84] - Stock-based compensation expense for the three months ended March 31, 2025, was $298,000, compared to $701,000 for the same period in 2024, indicating a significant reduction[52] - Depreciation expense increased 6% to $9,829,000 for the three months ended March 31, 2025, compared to $9,258,000 for the same period in 2024[88] Shareholder Information - As of March 31, 2025, the company had 43,507,000 common shares outstanding, an increase from 43,091,000 as of September 30, 2024, representing a growth of approximately 1%[108] - Shareholders' equity totaled $103,570,000 as of March 31, 2025[106] Regulatory and Legal Matters - The company is involved in a civil investigative demand from the DOJ regarding potential false claims related to CPAP equipment, and is cooperating with the investigation[55] - The SEC concluded its investigation in November 2024 without recommending enforcement action against the company[56] - The Company has not recorded any activity in goodwill for the six months ended March 31, 2025[32] Market and Economic Conditions - The cumulative annual impact of various challenges on total revenue is estimated to be approximately $8,800,000[77] - The Medicare 75/25 blended rate was discontinued as of January 1, 2024, negatively impacting revenue and operating results[74] - The Company continues to monitor macroeconomic conditions, which could adversely affect its revenue and financial condition[130] Agreements and Contracts - The Company entered into a Cooperation Agreement with Philotimo Fund, LP, resolving a potential proxy contest and ensuring the election of its recommended director candidates[131] - On February 1, 2025, the Company entered into a Non-Disclosure and Standstill Agreement with Forager Fund, which includes a six-month standstill period preventing Forager from acquiring any equity securities or assets of the Company without prior Board approval[133] - Forager has agreed to vote all Common Shares beneficially owned by them in favor of the directors nominated by the Board and other proposals recommended for shareholder approval[135] Accounting and Financial Reporting - The Company has not experienced any material changes in its significant accounting policies compared to the previous fiscal year[112] - The Company is currently evaluating the impact of new accounting standards on its consolidated financial statements[27] - The Company has no changes in internal control over financial reporting that materially affected its operations during the three months ended March 31, 2025[122]

Core Viewpoint - Quipt Home Medical Corp. reported a decrease in revenue and adjusted EBITDA for Q2 2025, while maintaining a strong recurring revenue component and focusing on strategic growth initiatives to enhance operational efficiency and expand its market presence [1][6][7]. Financial Highlights - Revenue for Q2 2025 was $57.4 million, a 6% decrease from $61.3 million in Q2 2024 [5] - Revenue for the six months ended March 31, 2025, decreased to $118.8 million, down 4% from $123.8 million for the same period in 2024 [5] - Adjusted EBITDA for Q2 2025 was $13.4 million, representing 23.3% of revenue, compared to $14.9 million (24.3% of revenue) in Q2 2024, marking a 10% decrease [5] - Adjusted EBITDA for the six months ended March 31, 2025, was $27.4 million (23.0% of revenue), down 9% from $30.2 million (24.4% of revenue) in the same period of 2024 [5] - Net loss for Q2 2025 was ($3.0) million, or ($0.07) per diluted share, compared to a loss of ($0.7) million, or ($0.02) per diluted share, in Q2 2024 [5] - Cash flow from operations was $18.2 million for the six months ended March 31, 2025, compared to $14.9 million for the same period in 2024 [5] - The company reported $17.1 million in cash on hand as of March 31, 2025, up from $15.5 million as of December 31, 2024 [5] Operational Highlights - Recurring revenue for Q2 2025 was strong at 81% of total revenue, driven by rentals of medical equipment and sales of respiratory resupplies [5][13] - The customer base declined by 2% year-over-year, serving 146,000 unique patients as of March 31, 2025, compared to 149,000 a year earlier [5] - The company completed 203,000 unique set-ups/deliveries in Q2 2025, a 3% decrease from 210,000 in Q2 2024 [5] - Respiratory resupply set-ups/deliveries decreased 4% year-over-year, totaling 111,000 in Q2 2025 [5] - Two new De Novo sites were launched in Florida and Alabama, expanding the company's national footprint [5] Management Commentary - The CEO emphasized the focus on returning to a sustainable growth trajectory and highlighted the strength of adjusted EBITDA despite revenue decreases, indicating structural improvements made since late 2024 [6] - The company aims to reignite organic growth and strengthen partnerships with healthcare systems to enhance patient access and drive sustainable value [7] - The CFO noted the company's healthy balance sheet, modest leverage, and ample liquidity, which provide flexibility to support growth initiatives and maintain strong margin performance [8]

Core Viewpoint - Quipt Home Medical Corp. is set to announce its fiscal Second quarter 2025 financial results on May 12, 2025, with a conference call scheduled for May 13, 2025, to discuss the results with the investment community [1]. Company Overview - Quipt Home Medical Corp. is a U.S.-based provider of home medical equipment, focusing on end-to-end respiratory care and in-home monitoring and disease management services [3]. - The company aims to expand its offerings to manage various chronic diseases, particularly targeting patients with heart or pulmonary diseases, sleep disorders, reduced mobility, and other chronic health conditions [3]. - The primary business objective is to create shareholder value by providing a broader range of services to patients requiring in-home monitoring and chronic disease management [3]. - The company's organic growth strategy includes increasing annual revenue per patient by offering multiple services to the same patient and consolidating services to enhance patient convenience [3].

Core Viewpoint - Quipt Home Medical Corp. is focused on returning to historical levels of organic growth, optimizing capital allocation, and building a scalable healthcare ecosystem through innovative mergers and acquisitions (M&A) and joint ventures [2][3][6] Strategic Priorities for 2025 - The company aims to accelerate organic growth by expanding its De Novo footprint, deepening referral networks, and enhancing operational efficiencies to maintain strong margins [3][4] - Capital allocation is a top priority, with plans for share buybacks and strategic M&A initiatives with healthcare systems [3][5] Expansion Initiatives - Quipt plans to open additional De Novo locations in strategic markets following successful openings in Florida and Alabama [4] - The company is reinforcing relationships with healthcare providers to enhance patient acquisition and referral pipelines [4] - A new sales force growth initiative includes adding representatives and launching the Quipt Sales Accelerator program for advanced training [4] - Operational efficiencies will be optimized through improved intake processes and service delivery to protect margins [4] - The product portfolio will be expanded with new respiratory offerings, including a recently Medicare-approved device [4] Shareholder Value Enhancement - The company intends to execute a Normal Course Issuer Bid (NCIB) for share repurchases, reflecting confidence in its fundamentals and commitment to shareholder value [5] - Quipt is exploring strategic M&A opportunities beyond traditional durable medical equipment (DME) providers, including potential joint ventures with healthcare systems [5] - The company is identifying key healthcare system partners to enhance its geographic reach and provide integrated home healthcare solutions [5] Management Commentary - The CEO emphasized the importance of organic growth, disciplined capital allocation, and strategic partnerships with healthcare systems to position Quipt as a leader in integrated home-based care [6] Annual General Meeting Results - The company held its annual general meeting on March 17, 2025, with 31,400,043 shares represented, accounting for 72.87% of total shares [1] - Directors were elected with majority support, including Gregory Crawford (80.62% votes for) and Mark Greenberg (64.88% votes for) [7] Auditor Appointment - Shareholders approved the re-appointment of BDO USA, P.C. as the auditor for the fiscal year ending September 30, 2025 [8] Equity Incentive Plan - The board approved the grant of 425,000 stock options and 2,478,753 restricted stock units under the 2024 Equity Incentive Plan [9]

Group 1 - Quipt Home Medical, a supplier of medical devices like CPAP machines and home ventilators, is currently facing shareholder activism from two activist funds [1] - The company is listed on both NASDAQ and TSX under the ticker QIPT [1]

Core Viewpoint - Quipt Home Medical Corp. has entered into a cooperation agreement with Kanen, which includes the withdrawal of Kanen's intent to solicit proxies for director candidates at the upcoming annual general meeting [1][9]. Group 1: Cooperation Agreement Details - Kanen has agreed to withdraw its notice of intent to solicit proxies in support of four director candidates opposing the Company's recommended candidates [1][9]. - The Company’s Board has granted Kanen certain access rights as long as Kanen maintains at least 3.5% beneficial ownership of the Company's outstanding shares [1][2]. - A new committee will be established by the Company to review and analyze Kanen's recommendations related to corporate governance and operations [2]. Group 2: Statements from Leadership - Mark Greenberg, Lead Independent Director, expressed gratitude for Kanen's constructive discussions and emphasized the importance of ongoing engagement for long-term growth [3]. - David Kanen, President and CEO of Kanen, acknowledged the Company's willingness to engage and highlighted the formation of the new committee as a significant step towards unlocking long-term value [3]. Group 3: Company Overview - Quipt Home Medical provides in-home monitoring and disease management services, focusing on end-to-end respiratory solutions for patients in the U.S. healthcare market [5]. - The Company aims to expand its offerings to manage various chronic diseases, with a primary objective of creating shareholder value through a broader range of services [5].