Viemed(US:VMD)2019-03-05 03:06Financial Data and Key Metrics Changes - The company generated revenue of $18.5 million in Q4 2018, a 37% increase from $13.5 million in Q4 2017, and annual revenue reached $65.3 million, up 39% year-over-year [18][19] - Gross margin percentage was 74% in Q4 2018, slightly down from 75% in the same quarter last year [18] - Adjusted EBITDA for Q4 was $5 million, representing a 27% margin, while annual adjusted EBITDA was $17.2 million or 26% [19][20] - SG&A expenses totaled approximately $34.4 million, up from $24.6 million in the prior year, reflecting variable compensation tied to stock price [21] Business Line Data and Key Metrics Changes - The company achieved record-breaking sales in Q4, marking the 10th consecutive quarter of revenue growth, driven by educating more physicians and case managers [6][8] - The network development team signed 28 new contracts in Q4, bringing the total for 2018 to 70 new contracts [11] - The company added 9 sales representatives in Q4, totaling approximately 70 sales reps and clinical liaisons [48][50] Market Data and Key Metrics Changes - The company is licensed to operate in 36 states and conducting business in 25, with plans to expand to all lower 48 states within 1.5 years [12][60] - The U.S. healthcare system is increasingly focused on reducing hospital admissions, which aligns with the company's service offerings [32] Company Strategy and Development Direction - The company aims to expand its product offerings, including the percussion vest and oxygen therapy, to drive growth [39][40] - Plans to become a dual-listed company in the U.S. and Canada to attract more investors [14][27] - The management is focused on leveraging technology for remote patient monitoring and improving patient care [30][67] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued organic growth, with expectations for Q1 revenue guidance in the range of $20 million to $20.5 million [24] - The lifting of the competitive bidding program is seen as an opportunity to expand ancillary products [29] - Management is cautious but optimistic about maintaining growth rates, despite the challenges of scaling from a larger base [51] Other Important Information - The company has a strong balance sheet with approximately $10.4 million in cash and $8.8 million in clean accounts receivable [23] - The company utilized $1.6 million to buy back approximately 411,000 shares in Q4 [26] Q&A Session Summary Question: Expansion of product offerings - Management discussed the introduction of new products like the percussion vest and expansion of oxygen therapy, anticipating these will drive growth without significantly impacting margins [39][40] Question: Seasonality in business growth - Management indicated that while respiratory diseases may see seasonal fluctuations, they do not expect significant slowdowns in growth rates [42] Question: Inorganic growth opportunities - Management confirmed they are exploring strategic acquisitions in adjacent markets but emphasized that their primary focus is on purchasing more vents [43] Question: Opportunities with the VA - Management noted early progress with the VA, having onboarded a small number of patients and expressed optimism about future growth in this area [45] Question: Patient growth and awareness - Management highlighted that as they hire more sales reps and enhance training, they expect to continue growing patient numbers and awareness in the physician community [50][51] Question: Geographic expansion plans - Management expects to be operational in the lower 48 states within 9 to 18 months, with particular excitement about opportunities in California, Florida, and Colorado [60]