Viemed(US:VMD)2020-05-04 22:56Revenue Performance - Total revenues for the three months ended March 31, 2020, were $23,806,000, representing a 31.1% increase from $18,115,000 in the same period of 2019[44]. - Revenue from ventilator rentals increased to $18,792,000 in Q1 2020 from $16,204,000 in Q1 2019, reflecting a growth of 15.8%[44]. - Revenue from COVID-19 response sales reached $1,040,000, with no comparable revenue in the prior year[44]. - Revenue for the quarter ended March 31, 2020, was $23.8 million, an increase from $21.4 million in the same quarter of 2019, representing an increase of 11%[143]. - For the three months ended March 31, 2020, revenue totaled $23.8 million, an increase of $5.7 million (or 31.4%) from the comparable period in 2019[146]. - COVID-19 response related sales amounted to $1.0 million, primarily from ventilators and associated supplies[148]. - Rental revenue from other durable medical equipment grew $1.3 million (or 167.4%) quarter over quarter[146]. Financial Position - The company's medical equipment net value as of March 31, 2020, was $56,632,000, up from $54,772,000 at the end of 2019[66]. - Total accrued liabilities decreased to $6,886,000 as of March 31, 2020, from $8,968,000 at the end of 2019, indicating a reduction of 24.1%[67]. - As of March 31, 2020, the Company had total notes payable of $8,951,000, down from $9,379,000 as of December 31, 2019[76]. - The Company reported net long-term notes payable of $7,179,000 as of March 31, 2020, compared to $7,629,000 at the end of 2019[76]. - The Company recognized finance lease liabilities of $9,763,000 as of March 31, 2020, a decrease from $10,132,000 as of December 31, 2019[77]. - Total assets as of March 31, 2020, were $86.8 million, up from $82.6 million at the end of 2019, showing a growth of 2.7%[143]. - The company had current assets of $30,151,000, compared to $27,811,000 as of December 31, 2019[111]. Income and Earnings - The net income attributable to shareholders for the three months ended March 31, 2020, was $4,243,000, compared to $1,958,000 for the same period in 2019[114]. - Basic earnings per share for the three months ended March 31, 2020, was $0.11, up from $0.05 in 2019[114]. - Net income for the quarter was $4.2 million, compared to $2.4 million for the same period in 2019, reflecting a year-over-year increase of 78%[143]. - For the quarter ended March 31, 2020, net income was $4.243 million, an increase from $2.388 million in the same quarter of 2019, representing a 77.5% year-over-year growth[160]. - Net income for the three months ended March 31, 2020 was $4.2 million, an increase of $2.3 million (or 116.7%) from the comparable period in 2019[155]. Expenses and Costs - Selling, general and administrative expenses totaled $10.6 million, an increase of $1.1 million (or 11.8%) from the comparable prior period, but as a percentage of revenue decreased to 44.4%[150]. - Cost of revenue totaled $8.3 million, an increase of $3.2 million (or 63.7%) from the comparable period in 2019, with gross profit percentage decreasing from approximately 72.2% to approximately 65.3%[149]. - Stock-based compensation for the three months ended March 31, 2020, totaled $1,151,000, compared to $880,000 for the same period in 2019[92]. - Stock-based compensation totaled $1.2 million, an increase of $0.3 million (or 30.8%) from the comparable period in 2019[152]. - Interest expense, net totaled $158,000, an increase of $132,000 (or 507.7%) from the comparable period in 2019[153]. Cash Flow and Financing - Cash and cash equivalents decreased to $8.4 million as of March 31, 2020, down from $13.4 million at December 31, 2019[162]. - Net cash provided by operating activities was $0.607 million for the three months ended March 31, 2020, compared to $0.650 million for the same period in 2019[163]. - Net cash used in financing activities was $3.842 million for the three months ended March 31, 2020, compared to $3.561 million in the same period of 2019[168]. - The company reported a net decrease in cash and cash equivalents of $4.946 million for the three months ended March 31, 2020[163]. - The company maintains a $10.0 million line of credit with Hancock Whitney Bank, which was fully available as of March 31, 2020[111]. Operational Highlights - The number of active ventilator patients at the end of the quarter was 7,965, an increase from 7,759 in the previous year, indicating a growth of 2.7%[143]. - The active ventilator patient base grew from 6,393 as of March 31, 2019 to 7,965 as of March 31, 2020, an increase of 25%[148]. - The company employed more than 255 licensed Respiratory Therapists, representing over 54% of the total employee count, to support its service model[132]. - The COVID-19 pandemic has led to minimal disruption in operations, with the company continuing to set up new patients in homes[134]. - The removal of non-invasive ventilators from the competitive bidding process is expected to last three years, allowing the company to furnish these products in all Medicare accredited areas[141]. Accounting and Compliance - The company has adopted ASU No. 2018-13 regarding fair value measurement, effective January 1, 2020, with no material impact on financial statements[61]. - The company is in compliance with all financial covenants as of March 31, 2020, with a total debt to adjusted EBITDA ratio of 0.83[173]. - The allowance for doubtful accounts was $10.2 million as of March 31, 2020, compared to $5.9 million as of March 31, 2019, indicating a significant increase in estimated uncollectible receivables[196]. - The company does not accept returns or refunds on equipment sales or sleep study services, and has no contract liabilities as of March 31, 2020[195]. - Deferred income tax assets and liabilities are recognized based on temporary differences between financial statement values and tax bases, requiring management estimates and assumptions[202].