Form 8-K - Current report

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UNITED STATES SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 7, 2024

 

Viemed Healthcare, Inc.

(Exact name of registrant as specified in its charter)

  

British Columbia, Canada

001-38973

N/A

(State or other jurisdiction of incorporation)

(Commission File Number)

(I.R.S. Employer Identification No.)

625 E. Kaliste Saloom Rd. Lafayette, Louisiana						70508
(Address of principal executive offices)						(Zip Code)

[phone]

(Registrant’s telephone number, including area code) 

(Former name or former address, if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐			Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐			Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class			Trading Symbol(s)			Name of each exchange on which registered
Common shares, no par value			VMD			The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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Item 2.02.     Results of Operations and Financial Condition.

On August 7, 2024, Viemed Healthcare, Inc. (the "Company") issued a press release announcing its financial results for the three and six months ended June 30, 2024. The press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

In accordance with General Instruction B.2 of Form 8-K, the foregoing information, including Exhibit 99.1, shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall such information and Exhibit 99.1 be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01.    Financial Statements and Exhibits

			(d)			Exhibits

 

Exhibit Number						Description

99.1    Press Release dated August 7, 2024

104     Cover Page Interactive Data File, formatted in Inline XBRL and included as Exhibit 101

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: August 7, 2024

 

VIEMED HEALTHCARE, INC.
By:						/s/ Trae Fitzgerald
						Trae Fitzgerald
						Chief Financial Officer

VIEMED HEALTHCARE ANNOUNCES RECORD SECOND QUARTER 2024 FINANCIAL RESULTS

Lafayette, Louisiana (August 7, 2024) Viemed Healthcare, Inc. (the “Company” or “Viemed”) (NASDAQ:VMD), a national leader in respiratory care and technology-enabled home medical equipment services, announced today that it has reported its financial results for the three and six months ended June 30, 2024.

Operational highlights (all dollar amounts are USD):

•Net revenues for the quarter ended June 30, 2024 reached a new Company record of $55.0 million, representing an increase of $11.7 million, or 27%, over net revenues reported for the comparable quarter ended June 30, 2023. This represents 9% sequential growth in revenue over the first quarter ended March 31, 2024.

•Net income for the quarter ended June 30, 2024 totaled $1.5 million. Adjusted EBITDA for the quarter ended June 30, 2024 totaled $12.8 million, a 31% increase as compared to the quarter ended June 30, 2023. A reconciliation of reported non-GAAP financial measures to their most directly comparable U.S. GAAP financial measures can be found in the tables accompanying this press release.

•The Company grew its ventilator patient count to a new Company record of 10,905, a 4.4% sequential increase over the ventilator patient count on March 31, 2024.

•As of June 30, 2024, the Company maintains a strong cash balance of $8.8 million and an overall working capital balance of $13.5 million. Long term debt as of June 30, 2024 amounted to $8.7 million and the Company has $50.2 million available under existing credit facilities.

•The Company expects to generate net revenues of approximately $56.5 million to $57.7 million during the third quarter of 2024.

“The remarkable organic growth of our complex respiratory services continues to validate our strategy at Viemed,” said Casey Hoyt, Viemed's CEO. "Our second-quarter results demonstrate the substantial demand for these essential services and confirm Viemed’s leading position in meeting the needs for complex respiratory care. The addressable market remains largely underserved, and our performance this quarter is a testament to our unwavering commitment to profitable growth by addressing the critical needs of an underserved market."

Conference Call Details

The Company will host a conference call to discuss second quarter results on Thursday, August 8, 2024 at 11:00 a.m. ET.

Interested parties may participate in the call by dialing:

888-437-3179 (US Toll-Free)

[phone] (International)

Live Audio Webcast: https://event.choruscall.com/mediaframe/webcast.html?webcastid=V8qNtmZw

Following the conclusion of the call, an audio recording and transcript of the call can be accessed on the Company's website.

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ABOUT VIEMED HEALTHCARE, INC.

Viemed is a provider of in-home medical equipment and post-acute respiratory healthcare services in the United States. Viemed’s service offerings are focused on effective in-home treatment with clinical practitioners providing therapy and counseling to patients in their homes using cutting edge technology. Visit our website at www.viemed.com.

For further information, please contact:

Glen Akselrod

Bristol Capital

905-326-1888

[e-mail]

Todd Zehnder

Chief Operating Officer

Viemed Healthcare, Inc.

337-504-3802

[e-mail]

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Forward-Looking Statements

Certain statements contained in this press release may constitute “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 or “forward-looking information” as such term is defined in applicable Canadian securities legislation (collectively, “forward-looking statements”). Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “potential”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, “believes”, “projects”, or the negatives thereof or variations of such words and phrases or statements that certain actions, events or results “will”, “should”, “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved” or the negative of these terms or comparable terminology. All statements other than statements of historical fact, including those that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance, including the Company's net revenue guidance for the third quarter, are not historical facts and may be forward-looking statements and may involve estimates, assumptions and uncertainties that could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements. Such statements reflect the Company's current views and intentions with respect to future events, and current information available to the Company, and are subject to certain risks, uncertainties and assumptions. Many factors could cause the actual results, performance or achievements that may be expressed or implied by such forward-looking statements to vary from those described herein should one or more of these risks or uncertainties materialize. These factors include, without limitation: the general business, market and economic conditions in the regions in which the Company operates; significant capital requirements and operating risks that the Company may be subject to; the ability of the Company to implement business strategies and pursue business opportunities; volatility in the market price of the Company's common shares; the state of the capital markets; the availability of funds and resources to pursue operations; inflation; reductions in reimbursement rates and audits of reimbursement claims by various governmental and private payor entities; dependence on few payors; possible new drug discoveries; dependence on key suppliers; granting of permits and licenses in a highly regulated business; competition; disruptions in or attacks (including cyber-attacks) on the Company's information technology, internet, network access or other voice or data communications systems or services; the evolution of various types of fraud or other criminal behavior to which the Company is exposed; difficulty integrating newly acquired businesses; the impact of new and changes to, or application of, current laws and regulations; the overall difficult litigation and regulatory environment; increased competition; increased funding costs and market volatility due to market illiquidity and competition for funding; critical accounting estimates and changes to accounting standards, policies, and methods used by the Company; the Company’s status as an emerging growth company; and the occurrence of natural and unnatural catastrophic events or health epidemics or concerns, and claims resulting from such events or concerns; as well as those risk factors discussed or referred to in the Company’s disclosure documents filed with the U.S. Securities and Exchange Commission (the “SEC”) available on the SEC’s website at www.sec.gov, including the Company’s most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q, and with the securities regulatory authorities in certain provinces of Canada available at www.sedar.com. Should any factor affect the Company in an unexpected manner, or should assumptions underlying the forward-looking statements prove incorrect, the actual results or events may differ materially from the results or events predicted. Any such forward-looking statements are expressly qualified in their entirety by this cautionary statement. Moreover, the Company does not assume responsibility for the accuracy or completeness of such forward-looking statements. The forward-looking statements included in this press release are made as of the date of this press release and the Company undertakes no obligation to publicly update or revise any forward-looking statements, other than as required by applicable law.

Use of Non-GAAP Financial Measures

This press release refers to Adjusted EBITDA, which is a financial measure that is not prepared in accordance with generally accepted accounting principles in the United States ("GAAP"). Adjusted EBITDA should be considered in addition to, not as a substitute for, or superior to, financial measures calculated in accordance with U.S. GAAP.

Management believes Adjusted EBITDA provides helpful information with respect to the Company’s operating performance as viewed by management, including a view of the Company’s business that is not dependent on the impact of the Company’s capitalization structure and items that are not part of the Company’s day-to-day operations. Management uses Adjusted EBITDA (i) to compare the Company’s operating performance on a consistent basis, (ii) to calculate incentive compensation for the Company’s employees, (iii) for planning purposes, including the preparation of the Company’s internal annual operating budget, and (iv) to evaluate the performance and effectiveness of the Company’s operational strategies. Accordingly, management believes that Adjusted EBITDA provides useful information in understanding and evaluating the Company’s operating performance in the same manner as management. Adjusted EBITDA is not a measurement of the Company’s financial performance under U.S. GAAP and should not be considered as an alternative to revenue or net income, as applicable, or any other performance measures derived in accordance with U.S. GAAP and may not be comparable to other similarly titled measures of other businesses. Adjusted EBITDA has limitations as an analytical tool and you should not consider it in isolation or as a substitute for analysis of the Company’s operating results as reported under U.S. GAAP. Adjusted EBITDA does not reflect the impact of certain cash charges resulting from matters the Company considers not to be indicative of ongoing operations; and other companies in the Company’s industry may calculate Adjusted EBITDA differently than we do, limiting its usefulness as a comparative measure.

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VIEMED HEALTHCARE, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Expressed in thousands of U.S. Dollars, except share amounts)

(Unaudited)

						At June 30, 2024						At December 31, 2023
ASSETS
Current assets
Cash and cash equivalents						$	8,807					$	12,839
Accounts receivable, net						27,063						18,451
Inventory						4,424						4,628
Income tax receivable						446						—
Prepaid expenses and other assets						4,235						2,449
Total current assets						$	44,975					$	38,367
Long-term assets
Property and equipment, net						74,701						73,579
Finance lease right-of-use assets						125						401
Operating lease right-of-use assets						2,893						2,872
Equity investments						1,794						1,680
Debt investment						1,000						2,219
Deferred tax asset						4,558						4,558
Identifiable intangibles, net						912						567
Goodwill						32,989						29,765
Other long-term assets						—						887
Total long-term assets						$	118,972					$	116,528
TOTAL ASSETS						$	163,947					$	154,895
LIABILITIES
Current liabilities
Trade payables						$	6,334					$	4,180
Deferred revenue						6,723						6,207
Income taxes payable						—						2,153
Accrued liabilities						16,801						17,578
Finance lease liabilities, current portion						111						256
Operating lease liabilities, current portion						737						678
Current portion of long-term debt						772						1,072
Total current liabilities						$	31,478					$	32,124
Long-term liabilities
Accrued liabilities						441						558
Finance lease liabilities, less current portion						28						132
Operating lease liabilities, less current portion						2,105						2,184
Long-term debt						8,715						6,002
Total long-term liabilities						$	11,289					$	8,876
TOTAL LIABILITIES						$	42,767					$	41,000
Commitments and Contingencies						—						—
SHAREHOLDERS' EQUITY
Common stock - No par value: unlimited authorized; 38,825,799 and 38,506,161 issued and outstanding as of June 30, 2024 and December 31, 2023, respectively						21,910						18,702
Additional paid-in capital						15,867						15,698
Retained earnings						81,594						79,495
TOTAL VIEMED HEALTHCARE, INC.'S SHAREHOLDERS' EQUITY						$	119,371					$	113,895
Noncontrolling interest in subsidiary						1,809						—
TOTAL SHAREHOLDERS' EQUITY						121,180						113,895
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY						$	163,947					$	154,895

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VIEMED HEALTHCARE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Expressed in thousands of U.S. Dollars, except outstanding shares and per share amounts)

(Unaudited)

			Three Months Ended June 30,												Six Months Ended June 30,
			2024						2023						2024						2023
Revenue			$	54,965					$	43,311					$	105,558					$	82,867
Cost of revenue			22,073						17,205						42,864						32,757
Gross profit			$	32,892					$	26,106					$	62,694					$	50,110
Operating expenses
Selling, general and administrative			26,503						20,563						51,317						40,325
Research and development			758						758						1,508						1,538
Stock-based compensation			1,620						1,471						3,052						2,862
Depreciation and amortization			377						298						792						538
Loss (gain) on disposal of property and equipment			(545)						117						(332)						95
Other expense (income), net			563						(2)						537						(83)
Income from operations			$	3,616					$	2,901					$	5,820					$	4,835
Non-operating income and expenses
Income (expense) from investments			(1,117)						137						(1,050)						172
Interest income (expense), net			(254)						20						(404)						69
Net income before taxes			2,245						3,058						4,366						5,076
Provision for income taxes			768						728						1,286						1,229
Net income			$	1,477					$	2,330					$	3,080					$	3,847
Net income attributable to noncontrolling interest			9						—						9						—
Net income attributable to Viemed Healthcare, Inc.			$	1,468					$	2,330					$	3,071					$	3,847
Net income per share
Basic			$	0.04					$	0.06					$	0.08					$	0.10
Diluted			$	0.04					$	0.06					$	0.08					$	0.10
Weighted average number of common shares outstanding:
Basic			38,822,980						38,324,249						38,558,479						38,240,902
Diluted			40,553,449						40,676,951						40,313,042						40,383,616

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VIEMED HEALTHCARE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Expressed in thousands of U.S. Dollars)

(Unaudited)

						Six Months Ended June 30,
						2024						2023
Cash flows from operating activities
Net income						$	3,080					$	3,847
Adjustments for:
Depreciation and amortization						12,594						9,968
Stock-based compensation expense						3,052						2,862
Distributions of earnings received from equity method investments						147						392
Income from equity method investments						(261)						(172)
Loss (income) from debt investment						1,219						(110)
Loss (gain) on disposal of property and equipment						(332)						95
Amortization of deferred financing costs						85						—
Deferred income tax benefit						—						(725)
Changes in working capital:
Accounts receivable, net						(8,225)						(500)
Inventory						470						(320)
Prepaid expenses and other assets						1,523						2,076
Trade payables						1,114						(488)
Deferred revenue						394						604
Accrued liabilities						(904)						1,593
Income tax payable/receivable						(2,599)						(1,003)
Net cash provided by operating activities						$	11,357					$	18,119
Cash flows from investing activities
Purchase of property and equipment						(14,940)						(10,759)
Investment in equity investments						—						(7)
Cash paid for acquisitions, net of cash acquired						(2,999)						(27,121)
Proceeds from sale of property and equipment						1,407						1,775
Net cash used in investing activities						$	(16,532)					$	(36,112)
Cash flows from financing activities
Proceeds from exercise of options						325						1,228
Proceeds from term notes						—						5,000
Principal payments on term notes						(810)						(1,357)
Proceeds from revolving credit facilities						3,000						8,000
Payments on revolving credit facilities						—						(1,005)
Payments for debt issuance costs						(151)						—
Shares redeemed to pay income tax						(972)						(526)
Repayments of finance lease liabilities						(249)						(37)
Net cash provided by financing activities						$	1,143					$	11,303
Net decrease in cash and cash equivalents						(4,032)						(6,690)
Cash and cash equivalents at beginning of year						12,839						16,914
Cash and cash equivalents at end of period						$	8,807					$	10,224
Supplemental disclosures of cash flow information
Cash paid during the period for interest						$	515					$	169
Cash paid during the period for income taxes, net of refunds						$	3,841					$	3,093
Supplemental disclosures of non-cash transactions
Equipment and other fixed asset purchases payable at end of period						$	2,725					$	2,526
Equipment sales receivable at end of period						$	2,187					$	—

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Non-GAAP Financial Measures

This press release refers to “Adjusted EBITDA”, which is a financial measure that is not prepared in accordance with generally accepted accounting principles in the United States ("GAAP"). Management believes Adjusted EBITDA provides helpful information with respect to the Company’s operating performance as viewed by management, including a view of the Company’s business that is not dependent on the impact of the Company’s capitalization structure and items that are not part of the Company’s day-to-day operations. Management uses Adjusted EBITDA (i) to compare the Company’s operating performance on a consistent basis, (ii) to calculate incentive compensation for the Company’s employees, (iii) for planning purposes, including the preparation of the Company’s internal annual operating budget, and (iv) to evaluate the performance and effectiveness of the Company’s operational strategies. Accordingly, management believes that Adjusted EBITDA provides useful information in understanding and evaluating the Company’s operating performance in the same manner as management. In calculating Adjusted EBITDA, certain items (mostly non-cash) are excluded from net income including depreciation and amortization of capitalized assets, net interest expense (income), stock based compensation, transactions costs, impairment of assets, and taxes.

The following table is a reconciliation of net income (loss), the most directly comparable U.S. GAAP measure, to Adjusted EBITDA, on a historical basis for the periods indicated:

VIEMED HEALTHCARE, INC.

Reconciliation of Net Income to Non-GAAP Adjusted EBITDA

(Expressed in thousands of U.S. Dollars)

(Unaudited)

For the quarter ended			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023			June 30, 2023			March 31, 2023			December 31, 2022			September 30, 2022
Net income attributable to Viemed Healthcare, Inc.			$	1,468		$	1,603		$	3,477		$	2,919		$	2,330		$	1,517		$	2,438		$	1,055
Add back:
Depreciation & amortization			6,309			6,285			5,918			5,975			5,207			4,762			4,373			4,120
Interest expense (income)			254			150			256			237			(20)			(49)			32			42
Stock-based compensation(a)			1,620			1,432			1,534			1,453			1,471			1,391			1,317			1,309
Transaction costs(b)			221			110			61			177			94			206			—			—
Impairment of assets(c)			2,173			—			—			—			—			—			—			—
Income tax expense			768			518			1,599			1,320			728			501			1,146			456
Adjusted EBITDA			$	12,813		$	10,098		$	12,845		$	12,081		$	9,810		$	8,328		$	9,306		$	6,982

(a) Represents non-cash, equity-based compensation expense associated with option and RSU awards.

(b) Represents transaction costs and expenses related to acquisition and integration efforts associated with recently announced or completed acquisitions.

(c) Represents impairments of the fair value of investment and litigation-related assets.

VIEMED HEALTHCARE, INC.

Key Financial and Operational Information

(Expressed in thousands of U.S. Dollars, except vent patients)

(Unaudited)

For the quarter ended			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023			June 30, 2023			March 31, 2023			December 31, 2022			September 30, 2022
Financial Information:
Revenue			$	54,965		$	50,593		$	50,739		$	49,402		$	43,311		$	39,556		$	37,508		$	35,759
Gross Profit			$	32,892		$	29,802		$	32,111		$	30,562		$	26,106		$	24,004		$	22,896		$	21,651
Gross Profit %			60		%	59		%	63		%	62		%	60		%	61		%	61		%	61		%
Net Income			$	1,477		$	1,603		$	3,477		$	2,919		$	2,330		$	1,517		$	2,438		$	1,055
Cash (As of)			$	8,807		$	7,309		$	12,839		$	10,078		$	10,224		$	23,544		$	16,914		$	21,478
Total Assets (As of)			$	163,947		$	154,875		$	154,895		$	149,400		$	149,117		$	124,634		$	117,043		$	119,419
Adjusted EBITDA(1)			$	12,813		$	10,098		$	12,845		$	12,081		$	9,810		$	8,328		$	9,306		$	6,982
Operational Information:
Vent Patients(2)			10,905			10,450			10,327			10,244			10,005			9,337			9,306			9,127

(1)Refer to "Non-GAAP Financial Measures" section above for definition of Adjusted EBITDA.

(2)Vent Patients represents the number of active ventilator patients on recurring billing service at the end of each calendar quarter.

Cover	Aug. 07, 2024
Cover [Abstract]
Document Type	8-K
Document Period End Date	Aug. 07, 2024
Entity Registrant Name	Viemed Healthcare, Inc.
Entity File Number	001-38973
Entity Incorporation, State or Country Code	Z4
Entity Address, Address Line One	625 E. Kaliste Saloom Rd.
Entity Address, Postal Zip Code	70508
Entity Address, City or Town	Lafayette
Entity Address, State or Province	LA
City Area Code	337
Local Phone Number	504-3802
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common shares, no par value
Trading Symbol	VMD
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Central Index Key	0001729149
Amendment Flag	false

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