Viemed(VMD) - 2025 Q2 - Quarterly Results

Executive Summary & Business Update Q2 2025 Financial and Operational Highlights Viemed Healthcare achieved record Q2 2025 net revenues of $63.1 million, with net income surging 115.1% and strong operational growth Q2 2025 Financial Performance Highlights | Metric | Q2 2025 | Q2 2024 | Change (%) | | :----------------------- | :---------- | :---------- | :--------- | | Net Revenues | $63.1 million | $54.965 million | 14.7% | | Net Income attributable to Viemed | $3.2 million | $1.468 million | 115.1% | | Diluted EPS | $0.08 | $0.04 | 100.0% | | Adjusted EBITDA | $14.3 million | $12.813 million | 11.5% | Q2 2025 Operational Highlights (Patient Counts) | Patient Type | June 30, 2025 | June 30, 2024 | YoY Change (%) | March 31, 2025 | QoQ Change (%) | | :------------------- | :-------------- | :-------------- | :------------- | :--------------- | :------------- | | Ventilator Patients | 12,152 | 10,905 | 11.4% | 11,809 | 2.9% | | PAP Therapy Patients | 26,260 | 17,349 | 51.4% | 22,899 | 14.7% | | Sleep Resupply Patients | 25,246 | 20,185 | 25.1% | 22,941 | 10.0% | - During Q2 2025, the Company repurchased and cancelled 270,061 common shares under its share repurchase program at a cost of $1.8 million, representing an average buyback price of $6.79 per share[4] - As of June 30, 2025, Viemed maintained a strong cash balance of $20.0 million and an overall working capital balance of $18.0 million, with $55 million available under existing credit facilities[4] Updated Full Year 2025 Guidance Viemed Healthcare raised full-year 2025 guidance for net revenues and Adjusted EBITDA, primarily due to the Lehan's Medical Equipment acquisition Updated Full Year 2025 Guidance | Metric | New Range | Old Range | | :---------------- | :-------------------- | :-------------------- | | Net Revenue | $271 million to $277 million | $256 million to $265 million | | Adjusted EBITDA | $59 million to $62 million | $55 million to $58 million | - The increase in the full year guidance ranges is primarily related to the inclusion of Lehan's Medical Equipment's anticipated results for the second half of 2025, following its acquisition closure on July 1, 2025, for a base purchase price of $26 million plus estimated contingent payments of $2.2 million[4] CEO Commentary CEO Casey Hoyt highlighted Viemed's commitment to patient quality of life, technology-enabled care, and strategic expansion, noting strong Q2 execution - Viemed's core focus is on improving patient quality of life through compassionate in-home care, delivering greater patient satisfaction and better outcomes at a lower total cost, particularly in complex respiratory care and now women's health[5] - The company has significantly increased patient populations and invested in a technology-enabled clinical approach to extend the capabilities of certified Respiratory Therapists, positioning its care model well in the evolving regulatory environment[5] - Solid execution in the vent and sleep businesses, along with expense leveraging, led to Q2 results that met expectations and kept the company on track for 2025 organic growth targets[6] The Lehan's acquisition enabled increased full-year guidance, and strong operating cash flow supported share repurchases[6] Company Information Conference Call Details Viemed Healthcare will host a conference call on August 7, 2025, at 11:00 a.m. EDT to discuss Q2 results, accessible via phone and webcast - The conference call to discuss second quarter results is scheduled for Thursday, August 7, 2025, at 11:00 a.m. EDT[7] - Interested parties can participate by dialing 877-407-6176 (US Toll-Free) or +1 201-689-8451 (International), or via a live audio webcast at https://event.choruscall.com/mediaframe/webcast.html?webcastid=4jnXGdPH[8](index=8&type=chunk) About Viemed Healthcare, Inc. Viemed Healthcare, Inc. is a U.S. in-home clinical care provider specializing in post-acute respiratory healthcare with a high-touch, high-tech model - Viemed is an in-home clinical care provider of post-acute respiratory healthcare equipment and services in the United States, offering non-invasive ventilators (NIV), sleep therapy, staffing, and other complementary products[9] - The company focuses on efficient and effective in-home treatment, with clinical practitioners providing therapy, education, and counseling to patients using high-touch and high-tech services[9] Investor Relations Contact Investors can contact Viemed Healthcare's Investor Relations team via email or designated contacts at SCR Partners, LLC and the CFO - Investor Relations contact information includes ir@viemed.com, SCR Partners, LLC (Tripp Sullivan or Lisa Kampf), and Viemed Healthcare, Inc.'s Chief Financial Officer (Trae Fitzgerald)[10] Legal and Financial Disclosures Forward-Looking Statements This section addresses forward-looking statements, highlighting inherent risks and uncertainties that may cause actual results to differ from projections - The press release contains 'forward-looking statements' identifiable by words like 'plans,' 'expects,' 'intends,' or 'will,' which are not historical facts and involve estimates, assumptions, and uncertainties[11] - Factors such as general economic conditions, capital requirements, reimbursement rates, competition, and integration of acquired businesses could cause actual results to vary materially from those expressed in forward-looking statements[11] - The company does not assume responsibility for the accuracy or completeness of such statements and undertakes no obligation to publicly update or revise them, other than as required by applicable law[11] Non-GAAP Financial Measures Disclosure This section defines Adjusted EBITDA as a non-GAAP measure for internal assessment, noting its limitations and the impracticality of reconciling future guidance to GAAP - Adjusted EBITDA is a non-GAAP financial measure used by management to assess operating performance, compare performance consistently, calculate incentive compensation, and for planning purposes, including budget preparation[19] - Adjusted EBITDA has limitations as an analytical tool and should not be considered in isolation or as a substitute for GAAP measures like revenue or net income, as it excludes certain non-cash charges and other companies may calculate it differently[19] - Reconciliation of non-GAAP financial guidance to GAAP is not provided due to the inability to reliably predict the impact of highly variable, difficult-to-project, or unusual items, which could significantly and unpredictably impact future GAAP results[12] Condensed Consolidated Financial Statements Condensed Consolidated Balance Sheets Viemed Healthcare's balance sheet shows total assets increased to $184.6 million by June 30, 2025, with liabilities decreasing and equity rising Condensed Consolidated Balance Sheets (in thousands of U.S. Dollars) | Metric | June 30, 2025 | December 31, 2024 | Change | | :-------------------------- | :-------------- | :---------------- | :------- | | Total Current Assets | $55,291 | $52,880 | +$2,411 | | Total Long-Term Assets | $129,312 | $124,189 | +$5,123 | | TOTAL ASSETS | $184,603 | $177,069 | +$7,534 | | Total Current Liabilities | $37,270 | $37,326 | -$56 | | Total Long-Term Liabilities | $5,709 | $6,442 | -$733 | | TOTAL LIABILITIES | $42,979 | $43,768 | -$789 | | TOTAL SHAREHOLDERS' EQUITY | $141,624 | $133,301 | +$8,323 | Condensed Consolidated Statements of Income Viemed Healthcare reported Q2 2025 net revenue of $63.1 million and net income of $3.2 million, with six-month net revenue at $122.2 million Condensed Consolidated Statements of Income (in thousands of U.S. Dollars) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenue | $63,056 | $54,965 | $122,185 | $105,558 | | Gross profit | $36,731 | $32,892 | $70,010 | $62,694 | | Income from operations | $5,095 | $3,616 | $8,936 | $5,820 | | Net income attributable to Viemed Healthcare, Inc. | $3,157 | $1,468 | $5,782 | $3,071 | | Diluted Net income per share | $0.08 | $0.04 | $0.14 | $0.08 | Condensed Consolidated Statements of Cash Flows Viemed Healthcare generated $15.1 million in operating cash flow for H1 2025, with reduced investing outflows and cash used in financing, ending with $20.0 million cash Condensed Consolidated Statements of Cash Flows (in thousands of U.S. Dollars) | Cash Flow Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------- | :------------------------------- | :------------------------------- | | Net cash provided by operating activities | $15,108 | $11,357 | | Net cash used in investing activities | $(10,257) | $(16,532) | | Net cash provided by (used in) financing activities | $(2,375) | $1,143 | | Net increase (decrease) in cash and cash equivalents | $2,476 | $(4,032) | | Cash and cash equivalents at end of period | $20,016 | $8,807 | - Investing activities saw a significant reduction in net cash outflow, from $(16,532) thousand in 2024 to $(10,257) thousand in 2025, largely due to increased proceeds from the sale of property and equipment ($13,355 thousand in 2025 vs. $1,407 thousand in 2024)[18] - Financing activities shifted from a net cash inflow of $1,143 thousand in 2024 to a net cash outflow of $(2,375) thousand in 2025, primarily driven by $1,664 thousand in shares repurchased under the share repurchase program[18] Non-GAAP Reconciliation and Key Metrics Reconciliation of Net Income to Non-GAAP Adjusted EBITDA This section details the reconciliation of Net Income to Adjusted EBITDA, showing key adjustments and a Q2 2025 Adjusted EBITDA of $14.3 million Reconciliation of Net Income to Non-GAAP Adjusted EBITDA (in thousands of U.S. Dollars) | Metric | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | | :------------------------------------ | :-------- | :-------- | :-------- | :-------- | :-------- | | Net income attributable to Viemed Healthcare, Inc. | $3,157 | $2,625 | $4,316 | $3,878 | $1,468 | | Add back: | | | | | | | Depreciation & amortization | 6,891 | 6,613 | 6,366 | 6,408 | 6,309 | | Interest expense, net | 132 | 179 | 147 | 225 | 254 | | Stock-based compensation | 2,341 | 2,311 | 1,521 | 1,712 | 1,620 | | Transaction costs | 53 | 85 | 11 | 12 | 221 | | Impairment of assets | — | — | — | 125 | 2,173 | | Income tax expense | 1,713 | 952 | 1,881 | 1,594 | 768 | | Adjusted EBITDA | $14,287 | $12,765 | $14,242 | $13,954 | $12,813 | Key Financial and Operational Information This section presents a quarterly overview of Viemed Healthcare's key financial and operational metrics, including revenue, net income, Adjusted EBITDA, and patient counts Key Financial Information (in thousands of U.S. Dollars) | Metric | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 | | :------------------------------------ | :-------- | :-------- | :-------- | :-------- | :-------- | :-------- | :-------- | :-------- | | Revenue | $63,056 | $59,129 | $60,695 | $58,004 | $54,965 | $50,593 | $50,739 | $49,402 | | Gross Profit | $36,731 | $33,279 | $36,138 | $34,371 | $32,892 | $29,802 | $32,111 | $30,562 | | Gross Profit % | 58% | 56% | 60% | 59% | 60% | 59% | 63% | 62% | | Net Income attributable to Viemed Healthcare, Inc. | $3,157 | $2,625 | $4,316 | $3,878 | $1,468 | $1,603 | $3,477 | $2,919 | | Cash and Cash Equivalents (As of) | $20,016 | $10,160 | $17,540 | $11,347 | $8,807 | $7,309 | $12,839 | $10,078 | | Total Assets (As of) | $184,603 | $178,079 | $177,069 | $169,526 | $163,947 | $154,875 | $154,895 | $149,400 | | Adjusted EBITDA | $14,287 | $12,765 | $14,242 | $13,954 | $12,813 | $10,098 | $12,845 | $12,081 | Key Operational Information (Patient Counts) | Patient Type | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 | | :------------------- | :-------- | :-------- | :-------- | :-------- | :-------- | :-------- | :-------- | :-------- | | Vent Patients | 12,152 | 11,809 | 11,795 | 11,374 | 10,905 | 10,450 | 10,327 | 10,244 | | PAP Therapy Patients | 26,260 | 22,899 | 21,338 | 19,478 | 17,349 | 15,726 | 14,900 | 14,788 | | Sleep Resupply Patients | 25,246 | 22,941 | 24,478 | 22,143 | 20,185 | 18,904 | 18,902 | 18,544 |