Viemed(VMD) - 2025 Q1 - Quarterly Results

First Quarter 2025 Earnings Announcement Viemed Healthcare, Inc. announced its financial results for Q1 2025 and updated full-year 2025 guidance Announcement Details Viemed Healthcare, Inc. announced its financial results for the first quarter ended March 31, 2025, and provided updated guidance for the full year ending December 31, 2025 - Viemed Healthcare, Inc. (NASDAQ:VMD) reported Q1 2025 financial results and updated full-year 2025 guidance[1] Q1 2025 Performance & Strategic Updates Viemed Healthcare achieved substantial financial and operational growth in Q1 2025, updated full-year guidance, and announced a strategic acquisition Q1 2025 Financial Highlights Viemed Healthcare achieved substantial financial growth in Q1 2025, with net revenues increasing by 17% and net income attributable to Viemed rising by 64% year-over-year. Adjusted EBITDA also saw a 26% increase Financial Highlights | Metric | Q1 2025 (USD) | Q1 2024 (USD) | Change (YoY) | | :----- | :------------ | :------------ | :----------- | | Net Revenues | $59.1 million | $50.6 million | +17% | | Net Income Attributable to Viemed | $2.6 million | $1.6 million | +64% | | Diluted EPS | $0.06 | $0.04 | +50% | | Adjusted EBITDA | $12.8 million | $10.1 million | +26% | Operational Highlights (Patient Counts) The company demonstrated robust operational growth in Q1 2025, significantly increasing its ventilator and PAP therapy patient counts year-over-year, while sleep resupply patients also grew Patient Counts | Patient Type | March 31, 2025 | March 31, 2024 | Change (YoY) | December 31, 2024 | Change (QoQ) | | :----------- | :------------- | :------------- | :----------- | :---------------- | :----------- | | Ventilator Patients | 11,809 | 10,450 | +13% | 11,795 | +0.1% | | PAP Therapy Patients | 22,899 | 15,726 | +46% | 21,338 | +7% | | Sleep Resupply Patients | 22,941 | 18,904 | +21% | 24,478 | -6% | - The company maintains a strong cash balance of $10.2 million and an overall working capital balance of $13.6 million as of March 31, 2025, with $55 million available under existing credit facilities[6] Updated Full Year 2025 Guidance Viemed Healthcare tightened its full-year 2025 guidance by raising the lower end of its revenue and Adjusted EBITDA ranges, reflecting confidence in continued performance Full Year 2025 Guidance | Metric | Previous FY2025 Guidance (USD) | Updated FY2025 Guidance (USD) | | :----- | :----------------------------- | :---------------------------- | | Net Revenue | $254 million to $265 million | $256 million to $265 million | | Adjusted EBITDA | $54 million to $58 million | $55 million to $58 million | Agreement to Acquire Lehan's Medical Equipment Viemed Healthcare announced an agreement to acquire Lehan's Medical Equipment for approximately $26 million, expanding its respiratory care and women's health services. The acquisition's impact is not yet included in the current 2025 guidance - Viemed agreed to acquire Lehan's Medical Equipment, a healthcare company specializing in respiratory care and women's health, for approximately $26 million, subject to adjustments and contingent payments[4][6] - In 2024, Lehan's generated approximately $25.7 million in net revenues and $7.4 million in Adjusted EBITDA[6] - The acquisition is expected to close in the third quarter of 2025, and its anticipated impact is not included in the current full-year 2025 guidance[6] CEO Commentary CEO Casey Hoyt highlighted marked improvements across all businesses in Q1, attributing success to 2024 sales organization restructuring, accelerated hiring, and technology investments. He emphasized the strong balance sheet supporting ventilator fleet improvements and inorganic growth opportunities like the Lehan's acquisition, while noting no adverse impact from the macro environment - Q1 2025 performance is directly attributable to the structure put in place in 2024 to improve the sales organization, accelerate new rep hiring, and leverage technology investments for greater efficiencies[5][7] - A strong balance sheet facilitates the significant improvement and extension of the ventilator fleet, primarily funded by an existing buyback program from a large supplier[8] - Strong capital position and cash flow enable inorganic growth, such as the acquisition of Lehan's Medical Equipment, complementing growth in complex respiratory, sleep, and staffing businesses[8] - The company has seen no impact from tariffs or a pullback from providers and payers, with its clinical approach offering greater patient satisfaction, fewer hospital readmissions, and lower total cost of care[9] Company Overview & Investor Information This section provides details on the upcoming conference call, an overview of Viemed Healthcare's business, and investor relations contact information Conference Call Details Viemed Healthcare will host a conference call on May 8, 2025, to discuss Q1 results and 2025 guidance, with dial-in and webcast options available - A conference call to discuss first quarter results and 2025 guidance will be held on Thursday, May 8, 2025, at 11:00 a.m. EDT[10] - Interested parties may participate by dialing 866-682-6100 (US Toll-Free) or +1-862-298-0702 (International), or via a live audio webcast[11] ABOUT VIEMED HEALTHCARE, INC. Viemed Healthcare, Inc. is a U.S. in-home clinical care provider specializing in post-acute respiratory healthcare equipment and services, including non-invasive ventilators, sleep therapy, and staffing, focusing on high-touch and high-tech in-home treatment - Viemed is an in-home clinical care provider of post-acute respiratory healthcare equipment and services in the United States[12] - Services include non-invasive ventilators (NIV), sleep therapy, staffing, and other complementary products, with a focus on efficient and effective in-home treatment using clinical practitioners and technology[12] Investor Relations Contact Contact information for investor relations is provided for inquiries - Investor relations can be reached via email at ir@viemed.com or by contacting Tripp Sullivan (SCR Partners, LLC) or Trae Fitzgerald (Chief Financial Officer, Viemed Healthcare, Inc.)[13] Financial Statements This section presents the condensed consolidated balance sheets, statements of income, and statements of cash flows for Viemed Healthcare Condensed Consolidated Balance Sheets As of March 31, 2025, Viemed Healthcare reported total assets of $178.1 million, a slight increase from December 31, 2024, with a decrease in cash and cash equivalents but an increase in accounts receivable. Total liabilities decreased, while shareholders' equity increased Condensed Consolidated Balance Sheets | Metric (in thousands USD) | March 31, 2025 | December 31, 2024 | Change | | :------------------------ | :------------- | :---------------- | :----- | | Cash and cash equivalents | $10,160 | $17,540 | $(7,380) | | Accounts receivable, net | $26,789 | $24,911 | $1,878 | | Total current assets | $49,120 | $52,880 | $(3,760) | | Total assets | $178,079 | $177,069 | $1,010 | | Total current liabilities | $35,487 | $37,326 | $(1,839) | | Total liabilities | $41,330 | $43,768 | $(2,438) | | Total shareholders' equity | $136,749 | $133,301 | $3,448 | Condensed Consolidated Statements of Income For the three months ended March 31, 2025, Viemed Healthcare reported a significant increase in revenue and net income compared to the prior year, driven by higher gross profit and improved income from operations Condensed Consolidated Statements of Income | Metric (in thousands USD) | Q1 2025 | Q1 2024 | Change | % Change | | :------------------------ | :------ | :------ | :----- | :------- | | Revenue | $59,129 | $50,593 | $8,536 | 16.9% | | Cost of revenue | $25,850 | $20,791 | $5,059 | 24.3% | | Gross profit | $33,279 | $29,802 | $3,477 | 11.7% | | Income from operations | $3,841 | $2,204 | $1,637 | 74.3% | | Net income attributable to Viemed Healthcare, Inc. | $2,625 | $1,603 | $1,022 | 63.8% | | Diluted EPS | $0.06 | $0.04 | $0.02 | 50.0% | Condensed Consolidated Statements of Cash Flows In Q1 2025, Viemed Healthcare generated $2.85 million in cash from operating activities, an increase from the prior year. However, significant investments in property and equipment led to a net decrease in cash and cash equivalents for the period Condensed Consolidated Statements of Cash Flows | Cash Flow Activity (in thousands USD) | Q1 2025 | Q1 2024 | Change | | :------------------------------------ | :------ | :------ | :----- | | Net cash provided by operating activities | $2,854 | $1,175 | $1,679 | | Net cash used in investing activities | $(8,530) | $(5,365) | $(3,165) | | Net cash used in financing activities | $(1,704) | $(1,340) | $(364) | | Net decrease in cash and cash equivalents | $(7,380) | $(5,530) | $(1,850) | | Cash and cash equivalents at end of period | $10,160 | $7,309 | $2,851 | Non-GAAP Measures & Supplemental Data This section provides details on non-GAAP financial measures, including Adjusted EBITDA reconciliation, and key financial and operational information over multiple quarters Non-GAAP Financial Measures Adjusted EBITDA is presented as a non-GAAP financial measure to provide insights into the company's operating performance, excluding the impact of capitalization structure and non-day-to-day operations. Management uses it for comparison, incentive compensation, planning, and evaluating operational strategies - Adjusted EBITDA is a non-GAAP measure used by management to compare operating performance, calculate incentive compensation, and for planning and strategy evaluation[22] - It excludes items such as depreciation, amortization, net interest expense, stock-based compensation, transaction costs, impairment of assets, and taxes from net income[22] - Adjusted EBITDA has limitations and should not be considered an alternative to GAAP measures like revenue or net income[22] Reconciliation of Net Income to Adjusted EBITDA The reconciliation table details the adjustments made to net income attributable to Viemed Healthcare, Inc. to arrive at Adjusted EBITDA for the past eight quarters, showing a Q1 2025 Adjusted EBITDA of $12.765 million Reconciliation of Net Income to Adjusted EBITDA | Metric (in thousands USD) | Q1 2025 | Q4 2024 | Q1 2024 | | :------------------------ | :------ | :------ | :------ | | Net Income attributable to Viemed Healthcare, Inc. | $2,625 | $4,316 | $1,603 | | Add back: | | | | | Depreciation & amortization | $6,613 | $6,366 | $6,285 | | Interest expense (income) | $179 | $147 | $150 | | Stock-based compensation | $2,311 | $1,521 | $1,432 | | Transaction costs | $85 | $11 | $110 | | Impairment of assets | — | — | — | | Income tax expense | $952 | $1,881 | $518 | | Adjusted EBITDA | $12,765 | $14,242 | $10,098 | Key Financial and Operational Information This table provides a multi-quarter overview of key financial metrics such as revenue, gross profit, net income, cash, total assets, and Adjusted EBITDA, alongside operational metrics like ventilator, PAP therapy, and sleep resupply patient counts, illustrating trends over time Key Financial and Operational Information | Metric (in thousands USD, except patients) | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | | :--------------------------------------- | :------ | :------ | :------ | :------ | :------ | | Revenue | $59,129 | $60,695 | $58,004 | $54,965 | $50,593 | | Gross Profit | $33,279 | $36,138 | $34,371 | $32,892 | $29,802 | | Gross Profit % | 56% | 60% | 59% | 60% | 59% | | Net Income attributable to Viemed Healthcare, Inc. | $2,625 | $4,316 | $3,878 | $1,468 | $1,603 | | Cash and Cash Equivalents (As of) | $10,160 | $17,540 | $11,347 | $8,807 | $7,309 | | Total Assets (As of) | $178,079 | $177,069 | $169,526 | $163,947 | $154,875 | | Adjusted EBITDA | $12,765 | $14,242 | $13,954 | $12,813 | $10,098 | | Vent Patients | 11,809 | 11,795 | 11,374 | 10,905 | 10,450 | | PAP Therapy Patients | 22,899 | 21,338 | 19,478 | 17,349 | 15,726 | | Sleep Resupply Patients | 22,941 | 24,478 | 22,143 | 20,185 | 18,904 | Legal Disclosures This section outlines the company's forward-looking statements and disclaimers regarding non-GAAP financial guidance Forward-Looking Statements The press release contains forward-looking statements subject to risks, uncertainties, and assumptions that could cause actual results to differ materially from expectations. The company does not undertake to publicly update these statements unless required by law - Forward-looking statements are identified by words such as 'plans,' 'expects,' 'intends,' and involve estimates, assumptions, and uncertainties that could cause actual results to differ materially[14] - Factors that could cause actual results to vary include general business conditions, reductions in reimbursement rates, competition, and difficulties integrating newly acquired businesses[14] - The company does not assume responsibility for the accuracy or completeness of such statements and undertakes no obligation to publicly update or revise any forward-looking statements, other than as required by applicable law[14] Non-GAAP Financial Guidance Disclaimer The company's non-GAAP financial guidance does not provide a GAAP reconciliation due to the unpredictability of certain items and explicitly excludes the impact of potential future strategic acquisitions - There is no reliable or reasonably estimable comparable GAAP measure for the Company's non-GAAP financial guidance due to the highly variable, difficult-to-project, and unusual nature of certain items[15] - The financial guidance excludes the impact of potential future strategic acquisitions and any items that have not yet been identified or quantified[16]