Viemed(VMD) - 2023 Q4 - Annual Results

VIEMED HEALTHCARE ANNOUNCES RECORD 2023 FINANCIAL RESULTS Financial and Operational Highlights Viemed Healthcare achieved record 2023 financial results, marked by significant revenue and net income growth, alongside robust cash flow generation Q4 and Full Year 2023 vs 2022 Performance | Metric | Q4 2023 | Q4 2022 | % Change | Full Year 2023 | Full Year 2022 | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Net Revenues | $50.7M | $37.5M | +35% | $183.0M | $138.8M | +32% | | Net Income | $3.5M | $2.4M | +43% | $10.2M | $6.2M | +65% | Adjusted EBITDA Performance | Period | Adjusted EBITDA | | :--- | :--- | | Q4 2023 | $12.8M | | Full Year 2023 | $43.1M | Full Year 2023 vs 2022 Cash Flow | Metric | Full Year 2023 | Full Year 2022 | % Change | | :--- | :--- | :--- | :--- | | Net Cash from Operating Activities | $45.2M | $27.7M | +62.9% | | Free Cash Flow | $19.1M | $4.8M | +294% | - As of December 31, 2023, the company maintained a cash balance of $12.8 million and had long-term debt of $6.0 million[5] - After a ~$30 million acquisition in 2023, Viemed ended the year with no net debt and has approximately $53 million available under its credit facilities[5] Financial Outlook The company projects Q1 2024 net revenues between $49.7 million and $51.0 million, assuming no extension of specific Medicare reimbursement rate adjustments Q1 2024 Net Revenue Guidance | Metric | Guidance Range | | :--- | :--- | | Net Revenues | $49.7M - $51.0M | - The guidance assumes that the 75/25 blended Medicare reimbursement rate adjustment in non-rural, non-competitive bid areas will not be extended[5] Consolidated Financial Statements Consolidated financial statements for 2023 show significant growth in total assets and shareholders' equity, driven by an acquisition and increased liabilities Consolidated Balance Sheets As of December 31, 2023, total assets increased to $154.9 million, driven by an acquisition, while liabilities and shareholders' equity also grew Key Balance Sheet Items (in thousands) | Account | Dec 31, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Cash and cash equivalents | $12,839 | $16,914 | | Goodwill | $29,765 | $0 | | Total Assets | $154,895 | $117,043 | | Long-term debt | $6,002 | $0 | | Total Liabilities | $41,000 | $19,949 | | Total Shareholders' Equity | $113,895 | $97,094 | Consolidated Statements of Income and Comprehensive Income Full year 2023 saw a 32% revenue increase to $183.0 million and a 65% net income growth to $10.2 million, with diluted EPS rising to $0.25 Full Year Income Statement Highlights (in thousands, except per share data) | Metric | Year Ended Dec 31, 2023 | Year Ended Dec 31, 2022 | | :--- | :--- | :--- | | Revenue | $183,008 | $138,832 | | Gross Profit | $112,783 | $84,680 | | Income from Operations | $14,330 | $8,252 | | Net Income | $10,243 | $6,222 | | Diluted EPS | $0.25 | $0.16 | Consolidated Statements of Cash Flows Net cash from operating activities increased by 63% to $45.2 million in 2023, while significant investing activities led to a net decrease in cash Cash Flow Summary (in thousands) | Activity | Year Ended Dec 31, 2023 | Year Ended Dec 31, 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $45,212 | $27,748 | | Net cash used in investing activities | ($52,113) | ($23,976) | | Net cash provided by (used in) financing activities | $2,826 | ($15,266) | | Net decrease in cash and cash equivalents | ($4,075) | ($11,494) | Non-GAAP Financial Measures The company uses non-GAAP measures like Adjusted EBITDA ($43.1 million) and Free Cash Flow ($19.1 million) to provide additional insight into financial performance - Adjusted EBITDA is defined as net income before interest, taxes, depreciation & amortization, stock-based compensation, and acquisition-related transaction costs[16] - Free Cash Flow is defined as net cash provided by operating activities less cash paid for purchases of property and equipment[20] Reconciliation to Non-GAAP Measures for Full Year 2023 (in thousands) | Measure | Calculation | Amount | | :--- | :--- | :--- | | Adjusted EBITDA | | | | Net Income | | $10,243 | | Add: D&A, Interest, Taxes, etc. | | $32,821 | | Adjusted EBITDA | | $43,064 | | Free Cash Flow | | | | Net cash from operating activities | | $45,212 | | Less: Purchase of property & equipment | | ($26,093) | | Free Cash Flow | | $19,119 | Key Financial and Operational Information Viemed demonstrated consistent quarterly growth in revenue and active ventilator patients throughout 2022 and 2023 Quarterly Revenue and Vent Patient Growth (2022-2023) | Quarter Ended | Revenue (in thousands) | Vent Patients (End of Period) | | :--- | :--- | :--- | | Mar 31, 2022 | $32,255 | 8,434 | | Jun 30, 2022 | $33,310 | 8,837 | | Sep 30, 2022 | $35,759 | 9,127 | | Dec 31, 2022 | $37,508 | 9,306 | | Mar 31, 2023 | $39,556 | 9,337 | | Jun 30, 2023 | $43,311 | 10,005 | | Sep 30, 2023 | $49,402 | 10,244 | | Dec 31, 2023 | $50,739 | 10,327 |