Viemed(VMD) - 2024 Q4 - Annual Report

Financial Performance - For the year ended December 31, 2024, the company generated revenues of $224.3 million, a 22.5% increase from$ 183.0 million in 2023, with net income rising to $11.4 million from$ 10.2 million[177]. - For the year ended December 31, 2024, total revenue was $224.3 million, an increase of$ 41.2 million (22.5%) compared to 2023[194]. - Net income for 2024 was $11.4 million, an increase of$ 1.2 million (11.4%) from the previous year, with a net income margin decrease to 5.1%[204]. - The company reported a net income of $11.4 million for 2024, up 11.5% from$ 10.2 million in 2023[241]. - The company’s operating income for 2024 was $17.9 million, up from$ 14.3 million in 2023, representing a 25.5% increase[241]. - Adjusted EBITDA for the year ended December 31, 2024, was $14.2 million, reflecting the company's operating performance[206]. - Basic earnings per share for 2024 was$ 0.29, compared to $0.27 in 2023 and$ 0.16 in 2022[358]. Revenue Breakdown - Revenue from the rental and sale of home medical equipment accounted for 91.0% of total revenue in 2024, compared to 94.2% in 2023[177]. - Ventilator rental revenue increased by $16.3 million (15.1%) due to higher patient volumes, while rental revenue from other home medical equipment rose by$ 10.3 million (27.0%)[194]. - Rental revenue from ventilator rentals increased to $124.6 million in 2024, compared to$ 108.3 million in 2023, representing a growth of 15.1%[277]. - Revenue from other home medical equipment rentals rose to $48.7 million in 2024, a 27.0% increase from$ 38.3 million in 2023[277]. - The company recorded $30.9 million in equipment and supply sales for 2024, up 19.3% from$ 25.8 million in 2023[277]. - Medicare revenues accounted for 41% of the company's traditional revenue streams in 2024, down from 44% in 2023 and 47% in 2022[277]. Expenses and Profitability - Selling, general and administrative expenses totaled $106.2 million, an increase of$ 18.3 million (20.8%), but as a percentage of revenue improved to 47.4%[197]. - Research and development costs increased to $3.1 million, reflecting a rise of$ 0.3 million (10.3%) from 2023[198]. - The company's gross profit for 2024 was $133.2 million, representing a gross margin of 59.4% compared to 61.7% in 2023[241]. - Gross profit margin for the quarter ended December 31, 2024, was 60%, consistent with the previous quarter[188]. - The provision for income taxes was$ 4.8 million, compared to $4.1 million in 2023, with an estimated effective tax rate of 29.4%[203]. Cash Flow and Liquidity - Cash and cash equivalents increased to$ 17.5 million as of December 31, 2024, up from $12.8 million in 2023, indicating improved liquidity[208]. - Net cash provided by operating activities for the year ended December 31, 2024 was$ 39.1 million, a decrease from $45.2 million in 2023[210][212]. - Net cash used in investing activities was$ 30.7 million in 2024, which included $27.5 million for capital expenditures, representing a 17% increase year-over-year[213]. - Net cash used in financing activities was$ 3.7 million in 2024, with principal payments on the 2022 Revolving Credit Facility totaling $5.0 million[215]. Assets and Liabilities - Total current assets rose to$ 52.9 million at December 31, 2024, from $38.4 million at December 31, 2023, marking a 37.9% increase[239]. - Total assets grew to$ 177.1 million at December 31, 2024, compared to $154.9 million at December 31, 2023, a 14.3% increase[239]. - Shareholders' equity increased to$ 133.3 million at December 31, 2024, from $113.9 million at December 31, 2023, reflecting a 17.0% growth[239]. - The Company’s long-term debt decreased from$ 6.002 million in 2023 to $3.589 million in 2024, while the current portion of debt also reduced significantly[307]. - Total accrued liabilities rose to$ 20.157 million in 2024 from $17.578 million in 2023, with accrued bonuses payable decreasing to$ 6.589 million[306]. Market Outlook and Growth - The company anticipates a Compound Annual Growth Rate (CAGR) of approximately 6% for respiratory devices and 8% for Obstructive Sleep Apnea (OSA) devices, indicating a robust growth trajectory in the home medical equipment market[179]. - U.S. home healthcare spending is projected to reach $250 billion by 2031, with a CAGR of approximately 7%[181]. - The company expects continued growth in its active ventilator patient base and other home medical offerings as it expands geographically[195]. - The company is positioned to benefit from the transition to value-based healthcare, which emphasizes home care over acute care settings[181]. Acquisitions and Investments - The company acquired East Alabama HomeMed, LLC for$ 3.0 million during 2024, contributing to the total cash used in investing activities[213]. - The Company acquired a controlling 60% equity interest in East Alabama HomeMed, LLC for a total goodwill of $3.2 million and a trade name valued at$ 0.4 million[300]. - The acquisition of Home Medical Products, Inc. was completed for approximately $29 million in cash, resulting in a goodwill of$ 29.765 million due to synergies and cost savings[301][302]. Stock and Compensation - Stock-based compensation expenses rose to $6.3 million, an increase of$ 0.4 million (7.5%) from 2023[199]. - The Company had outstanding options of 3,917,000 and restricted stock units (RSUs) of 1,514,000 as of December 31, 2024[335]. - The Company issued 915,043 RSUs during the year ended December 31, 2024, with a fair value between $7.05 and$ 8.39 per share[341]. - The total liability associated with PSUs at December 31, 2024, is $2,546,000, with$ 1,700,000 included in current accrued liabilities and $846,000 in long-term accrued liabilities[343].