QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
British Columbia, Canada | N/A | |||||||||||||
(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification Number) | |||||||||||||
Lafayette, LA | ||||||||||||||
(Address of principal executive offices, including zip code) | ||||||||||||||
(337) 504-3802 | ||||||||||||||
(Registrant’s telephone number, including area code) | ||||||||||||||
Title of each class | Trading Symbol(s) | Name of exchange on which registered | ||||||
Common Shares, no par value | VMD | The Nasdaq Stock Market LLC |
Large accelerated filer ☐ | Accelerated filer ☐ | Non-Accelerated filer ☐ | Smaller reporting company Emerging growth company |
VIEMED HEALTHCARE, INC. TABLE OF CONTENTS | ||||||||||||||
June 30, |
Page | |||||||||||
VIEMED HEALTHCARE, INC. CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||||||||||||||||||||||||
(Expressed in thousands of U.S. Dollars, except outstanding shares) | ||||||||||||||||||||||||||||||||
Note | At June 30, 2020 | At December 31, 2019 | ||||||||||||||||||||||||||||||
(Unaudited) | (Audited) | |||||||||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||||||
Current assets | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 29,707 | $ | 13,355 | ||||||||||||||||||||||||||||
Accounts receivable, net of allowance for doubtful accounts of $9,345 and $7,782 at June 30, 2020 and December 31, 2019, respectively | 2 | 11,029 | 11,534 | |||||||||||||||||||||||||||||
Inventory, net | 2 | 6,580 | 1,360 | |||||||||||||||||||||||||||||
Prepaid expenses and other assets | 2 | 1,891 | 1,562 | |||||||||||||||||||||||||||||
Total current assets | $ | 49,207 | $ | 27,811 | ||||||||||||||||||||||||||||
Long-term assets | ||||||||||||||||||||||||||||||||
Property and equipment | 3 | 55,087 | 54,772 | |||||||||||||||||||||||||||||
Equity method investment | 59 | 13 | ||||||||||||||||||||||||||||||
Deferred tax asset | 10 | 7,825 | — | |||||||||||||||||||||||||||||
Total long-term assets | $ | 62,971 | $ | 54,785 | ||||||||||||||||||||||||||||
TOTAL ASSETS | $ | 112,178 | $ | 82,596 | ||||||||||||||||||||||||||||
LIABILITIES | ||||||||||||||||||||||||||||||||
Current liabilities | ||||||||||||||||||||||||||||||||
Trade payables | $ | 5,375 | $ | 4,700 | ||||||||||||||||||||||||||||
Deferred revenue | 3,279 | 3,315 | ||||||||||||||||||||||||||||||
Income taxes payable | 1,490 | 86 | ||||||||||||||||||||||||||||||
Accrued liabilities | 4 | 14,365 | 8,968 | |||||||||||||||||||||||||||||
Current portion of lease liabilities | 5 | 5,467 | 7,093 | |||||||||||||||||||||||||||||
Current portion of long-term debt | 5 | 1,794 | 1,750 | |||||||||||||||||||||||||||||
Total current liabilities | $ | 31,770 | $ | 25,912 | ||||||||||||||||||||||||||||
Long-term liabilities | ||||||||||||||||||||||||||||||||
Accrued liabilities | 7 | 1,030 | 2,317 | |||||||||||||||||||||||||||||
Long-term lease liabilities | 5 | 1,527 | 3,039 | |||||||||||||||||||||||||||||
Long-term debt | 5 | 6,723 | 7,629 | |||||||||||||||||||||||||||||
Total long-term liabilities | $ | 9,280 | $ | 12,985 | ||||||||||||||||||||||||||||
TOTAL LIABILITIES | $ | 41,050 | $ | 38,897 | ||||||||||||||||||||||||||||
Commitments and Contingencies | — | — | ||||||||||||||||||||||||||||||
SHAREHOLDERS' EQUITY | ||||||||||||||||||||||||||||||||
Common stock - No par value: unlimited authorized; 39,082,932 and 37,952,660 issued and outstanding as of June 30, 2020 and December 31, 2019, respectively | 7 | 8,414 | 3,366 | |||||||||||||||||||||||||||||
Additional paid-in capital | 5,448 | 6,377 | ||||||||||||||||||||||||||||||
Accumulated other comprehensive loss | (502) | (157) | ||||||||||||||||||||||||||||||
Retained earnings | 57,768 | 34,113 | ||||||||||||||||||||||||||||||
TOTAL SHAREHOLDERS' EQUITY | $ | 71,128 | $ | 43,699 | ||||||||||||||||||||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 112,178 | $ | 82,596 |
VIEMED HEALTHCARE, INC. CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||
(Expressed in thousands of U.S. Dollars, except outstanding shares) | |||||||||
Note | At June 30, 2019 | At December 31, 2018 | |||||||
(Unaudited) | Audited | ||||||||
ASSETS | |||||||||
Current assets | |||||||||
Cash and cash equivalents | $ | 7,691 | $ | 10,413 | |||||
Accounts receivable, net of allowance for doubtful accounts of $6,874 and $4,266 at June 30, 2019 and December 31, 2018, respectively | 2 | 12,797 | 8,839 | ||||||
Inventory, net | 2 | 3,712 | 2,887 | ||||||
Prepaid expenses and other assets | 861 | 824 | |||||||
Total current assets | $ | 25,061 | $ | 22,963 | |||||
Long-term assets | |||||||||
Property and equipment | 3 | 45,803 | 30,562 | ||||||
Other assets | 22 | — | |||||||
Total long-term assets | $ | 45,825 | $ | 30,562 | |||||
TOTAL ASSETS | $ | 70,886 | $ | 53,525 | |||||
LIABILITIES | |||||||||
Current liabilities | |||||||||
Trade payables | $ | 7,818 | $ | 5,884 | |||||
Income taxes payable | — | 152 | |||||||
Accrued liabilities | 4 | 6,950 | 7,551 | ||||||
Current portion of lease liabilities | 5 | 8,410 | 3,031 | ||||||
Current portion of long-term debt | 133 | — | |||||||
Warrant conversion liability | 6 | 800 | 363 | ||||||
Total current liabilities | $ | 24,111 | $ | 16,981 | |||||
Long-term liabilities | |||||||||
Accrued liabilities | 7 | 1,685 | 1,117 | ||||||
Long-term lease liabilities | 5 | 1,098 | 394 | ||||||
Long-term debt | 5 | 4,703 | — | ||||||
Total long-term liabilities | $ | 7,486 | $ | 1,511 | |||||
TOTAL LIABILITIES | $ | 31,597 | $ | 18,492 | |||||
Commitments and Contingencies (Note 8) | — | — | |||||||
SHAREHOLDERS' EQUITY | |||||||||
Common stock - No par value: unlimited authorized; 37,697,535 and 37,500,815 issued and outstanding as of June 30, 2019 and December 31, 2018, respectively | 7 | 2,350 | 71 | ||||||
Additional paid-in capital | 5,063 | 5,390 | |||||||
Accumulated other comprehensive loss | (148 | ) | — | ||||||
Retained earnings | 32,024 | 29,572 | |||||||
TOTAL SHAREHOLDERS' EQUITY | $ | 39,289 | $ | 35,033 | |||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 70,886 | $ | 53,525 |
See accompanying notes to the condensed consolidated financial statements | ||||||||||||||||
Page 3 |
VIEMED HEALTHCARE, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME | ||
(Expressed in thousands of U.S. Dollars, except share and per share amounts) (Unaudited) |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||
Note | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||||||||||
Revenue | 2 | $ | 42,854 | $ | 20,325 | $ | 66,660 | $ | 38,440 | ||||||||||||||||||||||||||||||||
Cost of revenue | 16,927 | 5,686 | 25,180 | 10,727 | |||||||||||||||||||||||||||||||||||||
Gross profit | $ | 25,927 | $ | 14,639 | $ | 41,480 | $ | 27,713 | |||||||||||||||||||||||||||||||||
Operating Expenses | |||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative | 16,428 | 11,516 | 27,005 | 20,976 | |||||||||||||||||||||||||||||||||||||
Research and development | 271 | 203 | 445 | 437 | |||||||||||||||||||||||||||||||||||||
Stock-based compensation | 7 | 1,196 | 1,034 | 2,347 | 1,914 | ||||||||||||||||||||||||||||||||||||
Depreciation | 205 | 138 | 410 | 267 | |||||||||||||||||||||||||||||||||||||
(Gain) loss on disposal of property and equipment | (1,458) | 85 | (2,627) | 141 | |||||||||||||||||||||||||||||||||||||
Other (income) expense | 9 | (3,574) | (1) | (3,574) | (2) | ||||||||||||||||||||||||||||||||||||
Income from operations | $ | 12,859 | $ | 1,664 | $ | 17,474 | $ | 3,980 | |||||||||||||||||||||||||||||||||
Non-operating expenses | |||||||||||||||||||||||||||||||||||||||||
Unrealized loss on warrant conversion liability | 6 | — | 268 | — | 437 | ||||||||||||||||||||||||||||||||||||
(Gain) loss from equity method investment | (42) | 26 | (15) | 51 | |||||||||||||||||||||||||||||||||||||
Interest expense, net of interest income | 5 | 135 | 20 | 293 | 46 | ||||||||||||||||||||||||||||||||||||
Net income before taxes | 12,766 | 1,350 | 17,196 | 3,446 | |||||||||||||||||||||||||||||||||||||
(Benefit) provision for income taxes | 10 | (6,646) | 24 | (6,459) | 162 | ||||||||||||||||||||||||||||||||||||
Net income | $ | 19,412 | $ | 1,326 | $ | 23,655 | $ | 3,284 | |||||||||||||||||||||||||||||||||
Other Comprehensive Income | |||||||||||||||||||||||||||||||||||||||||
Change in unrealized loss on derivative instruments, net of tax | (33) | (148) | (345) | (148) | |||||||||||||||||||||||||||||||||||||
Other Comprehensive Loss | $ | (33) | $ | (148) | $ | (345) | $ | (148) | |||||||||||||||||||||||||||||||||
Comprehensive Income | $ | 19,379 | $ | 1,178 | $ | 23,310 | $ | 3,136 | |||||||||||||||||||||||||||||||||
Net income per share | |||||||||||||||||||||||||||||||||||||||||
Basic | 11 | $ | 0.50 | $ | 0.04 | $ | 0.62 | $ | 0.09 | ||||||||||||||||||||||||||||||||
Diluted | 11 | $ | 0.48 | $ | 0.03 | $ | 0.59 | $ | 0.08 | ||||||||||||||||||||||||||||||||
Weighted average number of common shares outstanding: | |||||||||||||||||||||||||||||||||||||||||
Basic | 11 | 38,665,765 | 37,686,763 | 38,348,310 | 38,165,274 | ||||||||||||||||||||||||||||||||||||
Diluted | 11 | 40,814,238 | 39,975,307 | 40,103,016 | 40,166,855 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
Note | 2019 | 2018 | 2019 | 2018 | |||||||||||||
Revenue | 2 | $ | 22,547 | $ | 15,508 | $ | 42,990 | $ | 29,619 | ||||||||
Cost of revenue | 5,686 | 4,185 | 10,727 | 7,744 | |||||||||||||
Gross profit | $ | 16,861 | $ | 11,323 | $ | 32,263 | $ | 21,875 | |||||||||
Operating Expenses | |||||||||||||||||
Selling, general and administrative | 13,244 | 7,919 | 24,836 | 15,208 | |||||||||||||
Research and development | 203 | — | 437 | — | |||||||||||||
Stock-based compensation | 7 | 1,034 | 665 | 1,914 | 1,226 | ||||||||||||
Depreciation | 138 | 124 | 267 | 330 | |||||||||||||
Loss on disposal of property and equipment | 85 | 52 | 141 | 88 | |||||||||||||
Other expense | 25 | 7 | 49 | 7 | |||||||||||||
Income from operations | $ | 2,132 | $ | 2,556 | $ | 4,619 | $ | 5,016 | |||||||||
Non-operating expenses | |||||||||||||||||
Unrealized loss on warrant conversion liability | 6 | 268 | 123 | 437 | 195 | ||||||||||||
Interest expense, net of interest income | 5 | 20 | 67 | 46 | 114 | ||||||||||||
Net income before taxes | 1,844 | 2,366 | 4,136 | 4,707 | |||||||||||||
Provision for income taxes | 9 | 24 | — | 162 | — | ||||||||||||
Net income | $ | 1,820 | $ | 2,366 | $ | 3,974 | $ | 4,707 | |||||||||
Other Comprehensive Income | |||||||||||||||||
Change in unrealized loss on derivative instruments, net of tax | (148 | ) | — | (148 | ) | — | |||||||||||
Other Comprehensive Loss | (148 | ) | $ | — | $ | (148 | ) | $ | — | ||||||||
Comprehensive Income | 1,672 | $ | 2,366 | $ | 3,826 | $ | 4,707 | ||||||||||
Net income per share | |||||||||||||||||
Basic | 11 | $0.05 | $0.06 | $0.10 | $0.12 | ||||||||||||
Diluted | 11 | $0.05 | $0.06 | $0.10 | $0.12 | ||||||||||||
Weighted average number of common shares outstanding: | |||||||||||||||||
Basic | 11 | 37,686,763 | 37,909,628 | 38,165,274 | 37,909,628 | ||||||||||||
Diluted | 11 | 39,975,307 | 39,335,011 | 40,166,855 | 39,099,186 |
See accompanying notes to the condensed consolidated financial statements | ||||||||||||||||||||||||||
Page 4 | ||||||||||||||||||||||||||
VIEMED HEALTHCARE, INC. CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY | ||||||||||||||
(Expressed in thousands of U.S. Dollars, except share and per share amounts) (Unaudited) |
Common Stock | Additional paid-in capital | Accumulated other comprehensive loss | Total Shareholders' equity | |||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Retained earnings | ||||||||||||||||||||||||||||||||||||||||||
Shareholders' equity, December 31, 2018 | 37,500,815 | $ | 71 | $ | 5,390 | $ | — | $ | 27,110 | $ | 32,571 | |||||||||||||||||||||||||||||||||
Stock-based compensation - options | — | — | 578 | — | — | 578 | ||||||||||||||||||||||||||||||||||||||
Stock-based compensation - restricted stock | — | — | 302 | — | — | 302 | ||||||||||||||||||||||||||||||||||||||
Exercise of options | 2,418 | 4 | — | — | — | 4 | ||||||||||||||||||||||||||||||||||||||
Shares issued for vesting of restricted stock units | 539,965 | 2,202 | (2,202) | — | — | — | ||||||||||||||||||||||||||||||||||||||
Shares repurchased and canceled under the Normal Course Issuer Bid | (365,100) | — | — | — | (1,522) | (1,522) | ||||||||||||||||||||||||||||||||||||||
Net Income | — | — | — | — | 1,958 | 1,958 | ||||||||||||||||||||||||||||||||||||||
Shareholders' equity, March 31, 2019 | 37,678,098 | $ | 2,277 | $ | 4,068 | $ | — | $ | 27,546 | $ | 33,891 | |||||||||||||||||||||||||||||||||
Stock-based compensation - options | — | — | 705 | — | — | 705 | ||||||||||||||||||||||||||||||||||||||
Share-based compensation - restricted stock | — | — | 329 | — | — | 329 | ||||||||||||||||||||||||||||||||||||||
Exercise of warrants | 8,280 | 16 | — | — | — | 16 | ||||||||||||||||||||||||||||||||||||||
Exercise of options | 4,725 | 18 | — | — | — | 18 | ||||||||||||||||||||||||||||||||||||||
Shares issued for vesting of restricted stock units | 6,432 | 39 | (39) | — | — | — | ||||||||||||||||||||||||||||||||||||||
Change in accumulated other comprehensive loss | — | — | — | (148) | — | (148) | ||||||||||||||||||||||||||||||||||||||
Net Income | — | — | — | — | 1,326 | 1,326 | ||||||||||||||||||||||||||||||||||||||
Shareholders' equity, June 30, 2019 | 37,697,535 | $ | 2,350 | $ | 5,063 | $ | (148) | $ | 28,872 | $ | 36,137 | |||||||||||||||||||||||||||||||||
Common Stock | Additional paid-in capital | Accumulated other comprehensive loss | Total Shareholders' equity | |||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Retained earnings | ||||||||||||||||||||||||||||||||||||||||||
Shareholders' equity, December 31, 2019 | 37,952,660 | $ | 3,366 | $ | 6,377 | $ | (157) | $ | 34,113 | $ | 43,699 | |||||||||||||||||||||||||||||||||
Stock-based compensation - options | — | — | 891 | — | — | 891 | ||||||||||||||||||||||||||||||||||||||
Stock-based compensation - restricted stock | — | — | 260 | — | — | 260 | ||||||||||||||||||||||||||||||||||||||
Exercise of options | 4,737 | 15 | — | — | — | 15 | ||||||||||||||||||||||||||||||||||||||
Shares issued for vesting of restricted stock units | 529,375 | 3,276 | (3,276) | — | — | — | ||||||||||||||||||||||||||||||||||||||
Change in accumulated other comprehensive loss | — | — | — | (312) | — | (312) | ||||||||||||||||||||||||||||||||||||||
Net Income | — | — | — | — | 4,243 | 4,243 | ||||||||||||||||||||||||||||||||||||||
Shareholders' equity, March 31, 2020 | 38,486,772 | $ | 6,657 | $ | 4,252 | $ | (469) | $ | 38,356 | $ | 48,796 | |||||||||||||||||||||||||||||||||
Stock-based compensation - options | — | — | 933 | — | — | 933 | ||||||||||||||||||||||||||||||||||||||
Stock-based compensation - restricted stock | — | — | 263 | — | — | 263 | ||||||||||||||||||||||||||||||||||||||
Exercise of options | 596,160 | 1,757 | — | — | — | 1,757 | ||||||||||||||||||||||||||||||||||||||
Change in accumulated other comprehensive loss | — | — | — | (33) | — | (33) | ||||||||||||||||||||||||||||||||||||||
Net Income | — | — | — | — | 19,412 | 19,412 | ||||||||||||||||||||||||||||||||||||||
Shareholders' equity, June 30, 2020 | 39,082,932 | $ | 8,414 | $ | 5,448 | $ | (502) | $ | 57,768 | $ | 71,128 | |||||||||||||||||||||||||||||||||
Common Stock | Additional paid-in capital | Accumulated other comprehensive loss | Total Shareholders' equity | ||||||||||||||||||||
Shares | Amount | Retained earnings | |||||||||||||||||||||
Shareholders' equity, December 31, 2017 | 37,909,628 | $ | 67 | $ | 2,688 | $ | — | $ | 20,989 | $ | 23,744 | ||||||||||||
Stock-based compensation - options | 145 | 145 | |||||||||||||||||||||
Stock-based compensation - restricted stock | 416 | 416 | |||||||||||||||||||||
Net Income | 2,341 | 2,341 | |||||||||||||||||||||
Shareholders' equity, March 31, 2018 | 37,909,628 | $ | 67 | $ | 3,249 | $ | — | $ | 23,330 | $ | 26,646 | ||||||||||||
Stock-based compensation - options | 229 | 229 | |||||||||||||||||||||
Stock-based compensation - restricted stock | 436 | 436 | |||||||||||||||||||||
Net Income | 2,366 | 2,366 | |||||||||||||||||||||
Shareholders' equity, June 30, 2018 | 37,909,628 | $ | 67 | $ | 3,914 | $ | — | $ | 25,696 | $ | 29,677 | ||||||||||||
Shareholders' equity, December 31, 2018 | 37,500,815 | $ | 71 | $ | 5,390 | $ | — | $ | 29,572 | $ | 35,033 | ||||||||||||
Stock-based compensation - options | 578 | 578 | |||||||||||||||||||||
Stock-based compensation - restricted stock | 302 | 302 | |||||||||||||||||||||
Exercise of options | 2,418 | 4 | 4 | ||||||||||||||||||||
Shares issued for vesting of restricted stock units | 539,965 | 2,202 | (2,202 | ) | — | ||||||||||||||||||
Shares repurchased and canceled under the Normal Course Issuer Bid | (365,100) | (1,522 | ) | (1,522 | ) | ||||||||||||||||||
Net Income | 2,154 | 2,154 | |||||||||||||||||||||
Shareholders' equity, March 31, 2019 | 37,678,098 | $ | 2,277 | $ | 4,068 | $ | — | $ | 30,204 | $ | 36,549 | ||||||||||||
Stock-based compensation - options | 705 | 705 | |||||||||||||||||||||
Stock-based compensation - restricted stock | 329 | 329 | |||||||||||||||||||||
Exercise of warrants | 8,280 | 16 | 16 | ||||||||||||||||||||
Exercise of options | 4,725 | 18 | 18 | ||||||||||||||||||||
Shares issued for vesting of restricted stock units | 6,432 | 39 | (39 | ) | — | ||||||||||||||||||
Change in unrealized loss on derivative instruments | (148 | ) | (148 | ) | |||||||||||||||||||
Net Income | 1,820 | 1,820 | |||||||||||||||||||||
Shareholders' equity, June 30, 2019 | 37,697,535 | $ | 2,350 | $ | 5,063 | $ | (148 | ) | $ | 32,024 | $ | 39,289 |
See accompanying notes to the condensed consolidated financial statements | ||||||||||||||||||||||||||
Page 5 | ||||||||||||||||||||||||||
VIEMED HEALTHCARE, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||
(Expressed in thousands of U.S. Dollars) (Unaudited) |
Six Months Ended June 30, | |||||||||||||||||||||||
Note | 2020 | 2019 | |||||||||||||||||||||
Cash flows from operating activities | |||||||||||||||||||||||
Net income | $ | 23,655 | $ | 3,284 | |||||||||||||||||||
Adjustments for: | |||||||||||||||||||||||
Depreciation | 4,320 | 2,739 | |||||||||||||||||||||
Change in allowance for doubtful accounts | 2 | 5,578 | 3,859 | ||||||||||||||||||||
Share-based compensation | 7 | 2,347 | 1,914 | ||||||||||||||||||||
Unrealized loss on warrant conversion liability | 6 | — | 437 | ||||||||||||||||||||
(Gain) loss on equity investment | (15) | 51 | |||||||||||||||||||||
(Gain) loss on disposal of property and equipment | (2,627) | 141 | |||||||||||||||||||||
Deferred income taxes (benefit) | (7,825) | — | |||||||||||||||||||||
Net change in working capital | |||||||||||||||||||||||
Increase in accounts receivable | (5,073) | (7,818) | |||||||||||||||||||||
Increase in inventory | (5,220) | (825) | |||||||||||||||||||||
Increase in prepaid expenses and other current assets | (329) | (109) | |||||||||||||||||||||
Increase in trade payables | 2,044 | 1,934 | |||||||||||||||||||||
(Decrease) increase in deferred revenue | (36) | 690 | |||||||||||||||||||||
Increase (decrease) in accrued liabilities | 3,765 | (181) | |||||||||||||||||||||
Increase (decrease) in income tax payable | 1,404 | (153) | |||||||||||||||||||||
Net cash provided by operating activities | $ | 21,988 | $ | 5,963 | |||||||||||||||||||
Cash flows from investing activities | |||||||||||||||||||||||
Purchase of property and equipment | (5,729) | (7,700) | |||||||||||||||||||||
Investment in equity method investment | (31) | — | |||||||||||||||||||||
Proceeds from sale of property and equipment | 5,140 | 213 | |||||||||||||||||||||
Net cash used in investing activities | $ | (620) | $ | (7,487) | |||||||||||||||||||
Cash flows from financing activities | |||||||||||||||||||||||
Proceeds from exercise of options | 1,772 | 22 | |||||||||||||||||||||
Proceeds from exercise of warrants | — | 16 | |||||||||||||||||||||
(Principal payments) proceeds on notes payable | 5 | (67) | 4,837 | ||||||||||||||||||||
Principal payments on term note | 5 | (795) | — | ||||||||||||||||||||
Shares repurchased and canceled under the Normal Course Issuer Bid | — | (1,522) | |||||||||||||||||||||
Repayments of lease liabilities, net of proceeds | (5,926) | (4,551) | |||||||||||||||||||||
Net cash used in financing activities | $ | (5,016) | $ | (1,198) | |||||||||||||||||||
Net increase (decrease) in cash and cash equivalents | 16,352 | (2,722) | |||||||||||||||||||||
Cash and cash equivalents at beginning of year | 13,355 | 10,413 | |||||||||||||||||||||
Cash and cash equivalents at end of period | $ | 29,707 | $ | 7,691 | |||||||||||||||||||
Supplemental disclosures of cash flow information | |||||||||||||||||||||||
Cash paid during the period for interest | $ | 309 | $ | 52 | |||||||||||||||||||
Cash paid during the period for income taxes, net of refunds received | $ | (38) | $ | 317 | |||||||||||||||||||
Supplemental disclosures of non-cash transactions | |||||||||||||||||||||||
Property and equipment financed through finance leases | $ | 2,883 | $ | 9,438 | |||||||||||||||||||
Property and equipment financed through leases under FASB ASC 842 | $ | 57 | $ | 1,919 | |||||||||||||||||||
Six Months Ended June 30, | |||||||||
Note | 2019 | 2018 | |||||||
Cash flows from operating activities | |||||||||
Net income | $ | 3,974 | $ | 4,707 | |||||
Adjustments for: | |||||||||
Depreciation | 2,739 | 1,634 | |||||||
Bad debt expense | 2 | 3,859 | 2,685 | ||||||
Share-based compensation | 7 | 1,914 | 1,226 | ||||||
Unrealized loss on warrant conversion liability | 437 | — | |||||||
Loss on disposal of property and equipment | 141 | 88 | |||||||
Net change in working capital | |||||||||
Increase in accounts receivable | (7,818 | ) | (761 | ) | |||||
Increase in inventory | (825 | ) | (302 | ) | |||||
Increase (decrease) in trade payables | 1,934 | (120 | ) | ||||||
Decrease in accrued liabilities | (181 | ) | (83 | ) | |||||
Decrease in income tax payable | (153 | ) | (69 | ) | |||||
Increase in prepaid expenses and other current assets | (58 | ) | (2 | ) | |||||
Net cash provided by operating activities | $ | 5,963 | $ | 9,003 | |||||
Cash flows from investing activities | |||||||||
Purchase of property and equipment | (7,700 | ) | (2,057 | ) | |||||
Proceeds from sale of property and equipment | 213 | 277 | |||||||
Net cash used in investing activities | $ | (7,487 | ) | $ | (1,780 | ) | |||
Cash flows from financing activities | |||||||||
Proceeds from exercise of options | 22 | — | |||||||
Proceeds from exercise of warrants | 16 | — | |||||||
Proceeds from commercial long-term note for building | 4,837 | — | |||||||
Shares repurchased and canceled under the Normal Course Issuer Bid | (1,522 | ) | — | ||||||
Repayments of lease liabilities | (4,551 | ) | (3,770 | ) | |||||
Net cash used in financing activities | $ | (1,198 | ) | $ | (3,770 | ) | |||
Net (decrease) increase in cash and cash equivalents | (2,722 | ) | 3,453 | ||||||
Cash and cash equivalents at beginning of year | 10,413 | 5,098 | |||||||
Cash and cash equivalents at end of year | $ | 7,691 | $ | 8,551 | |||||
Supplemental disclosures of cash flow information | |||||||||
Cash paid during the period for interest | $ | 52 | $ | 116 | |||||
Cash paid during the period for income taxes, net of refunds received | $ | 317 | $ | 68 | |||||
Supplemental disclosures of non-cash transactions | |||||||||
Property and equipment financed through capital leases and long-term debt | $ | 9,438 | $ | 4,586 | |||||
Property and equipment financed through leases upon adoption of FASB ASC 842 | $ | 1,919 | $ | — | |||||
Change in unrealized (losses) on derivative instruments, net of tax | $ | (148 | ) | $ | — |
See accompanying notes to the condensed consolidated financial statements | ||||||||||||||||
Page 6 |
VIEMED HEALTHCARE, INC. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS | ||
(Tabular dollar amounts expressed in thousands of U.S. Dollars, except per share amounts) (Unaudited) | ||
June 30, |
Page 7 |
VIEMED HEALTHCARE, INC. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS | ||
(Tabular dollar amounts expressed in thousands of U.S. Dollars, except per share amounts) (Unaudited) | ||
June 30, 2020 and 2019 |
Current | 30-60 | 60-90 | Over 90 | Total Accounts Receivable, net of Allowance | ||||||||||||||||
June 30, 2019 | $ | 6,896 | $ | 1,816 | $ | 1,435 | $ | 2,650 | $ | 12,797 | ||||||||||
December 31, 2018 | $ | 4,857 | $ | 1,124 | $ | 668 | $ | 2,190 | $ | 8,839 |
June 30, 2020 | June 30, 2019 | |||||||||||||
Balance, beginning of year | $ | 7,782 | $ | 4,266 | ||||||||||
Provision for bad debts | 5,578 | 3,859 | ||||||||||||
Amounts written off | (4,015) | (1,251) | ||||||||||||
Balance, end of period | $ | 9,345 | $ | 6,874 |
June 30, 2019 | June 30, 2018 | |||||||
Balance, beginning of year | $ | 4,266 | $ | 3,060 | ||||
Provision for bad debts | 3,859 | 2,685 | ||||||
Amounts written off | (1,251 | ) | (2,593 | ) | ||||
Balance, end of period | $ | 6,874 | $ | 3,152 |
Page 8 |
VIEMED HEALTHCARE, INC. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS | ||
(Tabular dollar amounts expressed in thousands of U.S. Dollars, except per share amounts) (Unaudited) | ||
June 30, |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||||||||
Medicare Revenues | 57 | % | 61 | % | 61 | % | 61 | % | ||||||||||||||||||||||||||||||
Medicaid Revenues | 9 | % | 8 | % | 9 | % | 8 | % | ||||||||||||||||||||||||||||||
Total Medicare and Medicaid | 66 | % | 69 | % | 70 | % | 69 | % |
Description | Estimated Useful Lives | |||||||
Medical Equipment | ||||||||
Computer Equipment | 5 Years | |||||||
Office Furniture & Fixtures | 5 - 10 Years | |||||||
Leasehold Improvements | Shorter of Useful Life or Lease | |||||||
Vehicles | 5 Years | |||||||
Building | 15 - 39 Years | |||||||
Land | Indefinite Life |
Page 9 |
VIEMED HEALTHCARE, INC. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS | ||
(Tabular dollar amounts expressed in thousands of U.S. Dollars, except per share amounts) (Unaudited) | ||
June 30, 2020 and 2019 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||||||||
Revenue from rentals under Topic 842 | ||||||||||||||||||||||||||||||||||||||
Ventilator rentals, non-invasive and invasive | $ | 19,918 | $ | 17,573 | $ | 38,710 | $ | 33,777 | ||||||||||||||||||||||||||||||
Other durable medical equipment rentals | 2,404 | 1,218 | 4,535 | 2,015 | ||||||||||||||||||||||||||||||||||
Revenue from sales and services under Topic 606 | ||||||||||||||||||||||||||||||||||||||
Equipment and supply sales | 540 | 1,075 | 2,072 | 1,853 | ||||||||||||||||||||||||||||||||||
COVID-19 response sales(1) | 19,712 | — | 20,753 | — | ||||||||||||||||||||||||||||||||||
Service revenues | 280 | 459 | 590 | 795 | ||||||||||||||||||||||||||||||||||
Total Revenues | $ | 42,854 | $ | 20,325 | $ | 66,660 | $ | 38,440 |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, 2019 | June 30, 2018 | June 30, 2019 | June 30, 2018 | |||||||||||||
Revenue from rentals under Topic 842 | ||||||||||||||||
Ventilator rentals, non-invasive and invasive | $ | 19,461 | $ | 13,852 | $ | 37,743 | $ | 26,676 | ||||||||
Other durable medical equipment rentals | 1,425 | 532 | 2,343 | 984 | ||||||||||||
Revenue from sales and services under Topic 606 | ||||||||||||||||
Equipment sales | 1,164 | 895 | 2,032 | 1,502 | ||||||||||||
Service revenues | 497 | 229 | 872 | 457 | ||||||||||||
Total Revenues | $ | 22,547 | $ | 15,508 | $ | 42,990 | $ | 29,619 |
Page 10 |
VIEMED HEALTHCARE, INC. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS | ||
(Tabular dollar amounts expressed in thousands of U.S. Dollars, except per share amounts) (Unaudited) | ||
June 30, 2020 and 2019 |
Page 11 |
VIEMED HEALTHCARE, INC. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS | ||
(Tabular dollar amounts expressed in thousands of U.S. Dollars, except per share amounts) (Unaudited) | ||
June 30, 2020 and 2019 |
Page 12 |
VIEMED HEALTHCARE, INC. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS | ||
(Tabular dollar amounts expressed in thousands of U.S. Dollars, except per share amounts) (Unaudited) | ||
June 30, 2020 and 2019 |
June 30, 2020 | December 31, 2019 | |||||||||||||
Medical equipment | $ | 59,211 | $ | 56,202 | ||||||||||
Furniture and equipment | 2,468 | 2,350 | ||||||||||||
Land | 2,138 | 2,138 | ||||||||||||
Buildings | 6,304 | 6,351 | ||||||||||||
Leasehold improvements | 290 | 301 | ||||||||||||
Vehicles | 953 | 1,110 | ||||||||||||
Less: Accumulated depreciation | (16,277) | (13,680) | ||||||||||||
Property and equipment, net of accumulated depreciation | $ | 55,087 | $ | 54,772 |
June 30, 2019 | December 31, 2018 | |||||||
Medical equipment | $ | 45,470 | $ | 35,541 | ||||
Furniture and equipment | 2,052 | 1,174 | ||||||
Land | 2,138 | 367 | ||||||
Buildings | 5,034 | 264 | ||||||
Leasehold improvements | 301 | 256 | ||||||
Vehicles | 1,768 | 1,782 | ||||||
Less: Accumulated depreciation | (10,960 | ) | (8,822 | ) | ||||
Property and equipment, net of accumulated depreciation | $ | 45,803 | $ | 30,562 |
June 30, 2020 | December 31, 2019 | |||||||||||||
Accrued trade payables | $ | 3,898 | $ | 1,023 | ||||||||||
Accrued commissions payable | 279 | 371 | ||||||||||||
Accrued bonuses payable | 3,864 | 2,292 | ||||||||||||
Accrued vacation and payroll | 1,693 | 1,502 | ||||||||||||
Current portion of phantom share liability | 4,171 | 3,129 | ||||||||||||
Accrued other liabilities | 460 | 651 | ||||||||||||
Total accrued liabilities | $ | 14,365 | $ | 8,968 |
June 30, 2019 | December 31, 2018 | |||||||
Accrued trade payables | $ | 694 | $ | 960 | ||||
Accrued commissions payable | 425 | 315 | ||||||
Accrued bonuses payable | 2,440 | 3,788 | ||||||
Accrued vacation and payroll | 1,119 | 1,012 | ||||||
Current portion of phantom share liability | 2,272 | 1,476 | ||||||
Total accrued liabilities | $ | 6,950 | $ | 7,551 |
Page 13 |
VIEMED HEALTHCARE, INC. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS | ||
(Tabular dollar amounts expressed in thousands of U.S. Dollars, except per share amounts) (Unaudited) | ||
June 30, |
June 30, 2020 | December 31, 2019 | |||||||||||||
Notes payable | $ | 8,517 | $ | 9,379 | ||||||||||
Less: | ||||||||||||||
Current portion of notes payable | (1,794) | (1,750) | ||||||||||||
Net long-term notes payable | $ | 6,723 | $ | 7,629 |
June 30, 2019 | December 31, 2018 | |||||||
Note payable | $ | 4,836 | $ | — | ||||
Less: | ||||||||
Current portion of note payable | (133 | ) | — | |||||
Net long-term note payable | $ | 4,703 | $ | — |
Financial Covenant | Required Ratio | Ratio | ||||||||||||
Total Debt to Adjusted EBITDA (Quarterly) | not more than 1.50:1.00 | 0.45 | ||||||||||||
Fixed Charge Coverage Ratio (Quarterly) | not less than 1.35:1.00 | 17.12 | ||||||||||||
Loan-to-Value Ratio (Quarterly) | not more than 0.85 | 0.72 |
Page 14 |
VIEMED HEALTHCARE, INC. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS | ||
(Tabular dollar amounts expressed in thousands of U.S. Dollars, except per share amounts) (Unaudited) | ||
June 30, |
Principal Payments | Interest Payments(1) | |||||||
Less than one year (current portion) | $ | 133 | $ | 273 | ||||
Between one and two years | 148 | 226 | ||||||
Between two and five years | 491 | 632 | ||||||
Five years or more | 4,064 | 348 | ||||||
Total | $ | 4,836 | $ | 1,479 |
June 30, 2020 | December 31, 2019 | |||||||||||||
Lease liabilities | $ | 6,994 | $ | 10,132 | ||||||||||
Less: | ||||||||||||||
Current portion of lease liabilities | (5,467) | (7,093) | ||||||||||||
Net long-term lease liabilities | $ | 1,527 | $ | 3,039 |
June 30, 2019 | December 31, 2018 | |||||||
Lease liabilities | $ | 9,508 | $ | 3,425 | ||||
Less: | ||||||||
Current portion of lease liabilities | (8,410 | ) | (3,031 | ) | ||||
Net long-term lease liabilities | $ | 1,098 | $ | 394 |
Principal Payments | Interest Payments | |||||||
Less than one year (current portion) | $ | 8,173 | $ | 39 | ||||
Between one and two years | 90 | 8 | ||||||
Between two and five years | 49 | 2 | ||||||
Total | $ | 8,312 | $ | 49 |
Principal Payments | Interest Payments | |||||||
Less than one year (current portion) | $ | 237 | $ | 59 | ||||
Between one and two years | 200 | 48 | ||||||
Between two and five years | 367 | 65 | ||||||
Five years or more | 392 | 22 | ||||||
Total | $ | 1,196 | $ | 194 |
Page 15 |
VIEMED HEALTHCARE, INC. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS | ||
(Tabular dollar amounts expressed in thousands of U.S. Dollars, except per share amounts) (Unaudited) | ||
June 30, 2020 and 2019 |
Warrant Conversion Liability | ||||||||
Balance December 31, 2018 | $ | 363 | ||||||
Warrants issued | — | |||||||
Unrealized loss on warrant conversion liability | 437 | |||||||
Balance June 30, 2019 | $ | 800 | ||||||
Warrant Conversion Liability | ||||
Balance December 31, 2018 | 363 | |||
Warrants issued | — | |||
Unrealized loss on warrant conversion liability | 437 | |||
Balance June 30, 2019 | $ | 800 |
Year issued | Date of expiry | Type | Number of warrants (000's) | Weighted average exercise price (CAD$) | |||
2017 | August 27, 2019 | Warrant | 169 | $ | 2.60 | ||
Total | 169 | $ | 2.60 |
Number of warrants (000's) | Weighted average exercise price (CAD$) | ||||||
Balance December 31, 2018 | 177 | $ | 2.60 | ||||
Issued | — | $ | — | ||||
Exercised | (8 | ) | $ | 2.60 | |||
Expired | — | $ | — | ||||
Balance June 30, 2019 | 169 | $ | 2.60 |
Page 16 |
VIEMED HEALTHCARE, INC. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS | ||
(Tabular dollar amounts expressed in thousands of U.S. Dollars, except per share amounts) (Unaudited) | ||
June 30, 2020 and 2019 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation - options | $ | 933 | $ | 705 | $ | 1,824 | $ | 1,283 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation - restricted stock units | 263 | 329 | 523 | 631 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 1,196 | $ | 1,034 | $ | 2,347 | $ | 1,914 |
Three Months Ended | Six Months Ended | |||||||||||||||||||
June 30, 2019 | June 30, 2018 | June 30, 2019 | June 30, 2018 | |||||||||||||||||
Stock-based compensation - options | $ | 705 | $ | 229 | $ | 1,283 | $ | 374 | ||||||||||||
Stock-based compensation - restricted stock | 329 | 436 | 631 | 852 | ||||||||||||||||
Total | $ | 1,034 | $ | 665 | $ | 1,914 | $ | 1,226 |
Number of options (000's) | Weighted average exercise price (CAD$) | Weighted average remaining contractual life | Aggregate Intrinsic Value(1) | |||||||||||||||||||||||
Balance December 31, 2019 | 2,683 | $ | 4.36 | 6.7 years | $ | 7,790 | ||||||||||||||||||||
Issued | 964 | 7.44 | ||||||||||||||||||||||||
Exercised | (601) | 4.07 | ||||||||||||||||||||||||
Expired / Forfeited | (6) | 6.63 | ||||||||||||||||||||||||
Balance June 30, 2020 | 3,040 | $ | 5.39 | 8.2 years | $ | 16,999 | ||||||||||||||||||||
Number of options (000's) | Weighted average exercise price (CAD$) | Weighted average remaining contractual life | Aggregate Intrinsic Value(1) | ||||||||||
Balance December 31, 2018 | 1,545 | $ | 3.39 | 5.8 years | $ | 1,605 | |||||||
Issued | 1,236 | 5.66 | |||||||||||
Exercised | (7 | ) | 3.99 | ||||||||||
Expired / Forfeited | (8 | ) | 3.26 | ||||||||||
Balance June 30, 2019 | 2,766 | 4.40 | 7.2 years | $ | 6,698 | ||||||||
Includes NIL shares netted for tax. |
Page 17 |
VIEMED HEALTHCARE, INC. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS | ||
(Tabular dollar amounts expressed in thousands of U.S. Dollars, except per share amounts) (Unaudited) | ||
June 30, |
Exercise price ($CAD) | $ | |||||||||||||
Risk-free interest rate | % | |||||||||||||
Expected volatility | % | |||||||||||||
Expected life of options | 10 | |||||||||||||
Expected dividend yield | ||||||||||||||
Fair value on date of grant ($USD) | $ |
Number of Restricted Stock Units (000's) | Weighted average grant price (CAD$) | Weighted average remaining contractual life | Aggregate Intrinsic Value(1) | |||||||||||||||||||||||
Balance December 31, 2019 | 1,139 | $ | 2.74 | 0.55 years | $ | 7,129 | ||||||||||||||||||||
Issued | 92 | 7.44 | ||||||||||||||||||||||||
Vested | (530) | 2.54 | ||||||||||||||||||||||||
Expired / Forfeited | — | — | ||||||||||||||||||||||||
Balance June 30, 2020 | 701 | $ | 3.64 | 0.65 years | $ | 6,699 |
Number of Restricted Stock Units (000's) | Weighted average grant price (CAD$) | Weighted average remaining contractual life | Aggregate Intrinsic Value(1) | ||||||||
Balance December 31, 2018 | 1,715 | $ | 2.41 | 1.01 years | $6,575 | ||||||
Issued | 60 | $ | 5.49 | ||||||||
Vested | (546 | ) | $ | 2.25 | |||||||
Expired / Forfeited | (33 | ) | $ | 2.25 | |||||||
Balance June 30, 2019 | 1,196 | $ | 2.65 | 1.05 years | $8,159 |
Number of Phantom Share Units (000's) | ||||||||
Balance December 31, | ||||||||
Issued | ||||||||
Vested | ||||||||
Expired / Forfeited | ||||||||
Balance June 30, |
Page 18 |
VIEMED HEALTHCARE, INC. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS | ||
(Tabular dollar amounts expressed in thousands of U.S. Dollars, except per share amounts) (Unaudited) | ||
June 30, |
Six Months Ended | ||||||||||||||
June 30, 2020 | ||||||||||||||
Share price | $ 13.01 (CAD$) | |||||||||||||
Remaining life of phantom share units | 0.86 - 2.86 Years | |||||||||||||
Calculated fair value of phantom share units | $ | 4,699 |
June 30, 2019 | |||
Share price | $ 8.93 (CAD$) | ||
Remaining life of phantom share units | 0.86 - 2.86 Years | ||
Calculated fair value of phantom share units | $ | 3,809,000 |
Page 19 |
VIEMED HEALTHCARE, INC. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS | ||
(Tabular dollar amounts expressed in thousands of U.S. Dollars, except per share amounts) (Unaudited) | ||
June 30, 2020 and 2019 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||||||||
Numerator - basic and diluted: | ||||||||||||||||||||||||||||||||||||||
Net income attributable to shareholders | $ | 19,412 | $ | 1,326 | $ | 23,655 | $ | 3,284 | ||||||||||||||||||||||||||||||
Denominator: | ||||||||||||||||||||||||||||||||||||||
Basic weighted-average number of common shares | 38,665,765 | 37,686,763 | 38,348,310 | 38,165,274 | ||||||||||||||||||||||||||||||||||
Diluted weighted-average number of shares | 40,814,238 | 39,975,307 | 40,103,016 | 40,166,855 | ||||||||||||||||||||||||||||||||||
Basic earnings per share | $ | 0.50 | $ | 0.04 | $ | 0.62 | $ | 0.09 | ||||||||||||||||||||||||||||||
Diluted earnings per share | $ | 0.48 | $ | 0.03 | $ | 0.59 | $ | 0.08 | ||||||||||||||||||||||||||||||
Denominator calculation from basic to diluted: | ||||||||||||||||||||||||||||||||||||||
Basic weighted-average number of common shares | 38,665,765 | 37,686,763 | 38,348,310 | 38,165,274 | ||||||||||||||||||||||||||||||||||
Stock options and other dilutive securities | 2,148,473 | 2,288,544 | 1,754,706 | 2,001,581 | ||||||||||||||||||||||||||||||||||
Diluted weighted-average number of shares | 40,814,238 | 39,975,307 | 40,103,016 | 40,166,855 |
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, 2019 | June 30, 2018 | June 30, 2019 | June 30, 2018 | ||||||||||||||
Numerator - basic and diluted: | |||||||||||||||||
Net income attributable to shareholders | $ | 1,820 | $ | 2,366 | $ | 3,974 | $ | 4,707 | |||||||||
Denominator: | |||||||||||||||||
Basic weighted-average number of common shares | 37,686,763 | 37,909,628 | 38,165,274 | 37,909,628 | |||||||||||||
Diluted weighted-average number of shares | 39,975,307 | 39,335,011 | 40,166,855 | 39,099,186 | |||||||||||||
Basic earnings per share | $0.05 | $0.06 | $0.10 | $0.12 | |||||||||||||
Diluted earnings per share | $0.05 | $0.06 | $0.10 | $0.12 | |||||||||||||
Denominator calculation from basic to diluted: | |||||||||||||||||
Basic weighted-average number of common shares | 37,686,763 | 37,909,628 | 38,165,274 | 37,909,628 | |||||||||||||
Stock options and other dilutive securities | 2,288,544 | 1,425,383 | 2,001,581 | 1,189,558 | |||||||||||||
Diluted weighted-average number of shares | 39,975,307 | 39,335,011 | 40,166,855 | 39,099,186 |
Page 20 |
VIEMED HEALTHCARE, INC. MANAGEMENT'S DISCUSSION AND ANALYSIS | ||||||||||||||
(Tabular amounts expressed in thousands of US Dollars, except per share amounts) | ||||||||||||||
June 30, |
Page 21 |
VIEMED HEALTHCARE, INC. MANAGEMENT'S DISCUSSION AND ANALYSIS | ||||||||||||||
(Tabular amounts expressed in thousands of US Dollars, except per share amounts) | ||||||||||||||
June 30, 2020 and 2019 |
Page 22 |
VIEMED HEALTHCARE, INC. MANAGEMENT'S DISCUSSION AND ANALYSIS | ||||||||||||||
(Tabular amounts expressed in thousands of US Dollars, except per share amounts) | ||||||||||||||
June 30, 2020 and 2019 |
Page 23 |
VIEMED HEALTHCARE, INC. MANAGEMENT'S DISCUSSION AND ANALYSIS | ||||||||||||||
(Tabular amounts expressed in thousands of US Dollars, except per share amounts) | ||||||||||||||
June 30, |
Page 24 |
VIEMED HEALTHCARE, INC. MANAGEMENT'S DISCUSSION AND ANALYSIS | ||||||||||||||
(Tabular amounts expressed in thousands of US Dollars, except per share amounts) | ||||||||||||||
June 30, 2020 and 2019 |
(Tabular amounts expressed in thousands of U.S. Dollars, except vent patients) | ||||||||||||||||||||||||||||||||||||||||||||||||||
For the quarter ended | June 30, 2020 | March 31, 2020 | December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | December 31, 2018 | September 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||
Financial Information: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | $ | 42,854 | $ | 23,806 | $ | 21,448 | $ | 20,368 | $ | 20,325 | $ | 18,115 | $ | 18,363 | $ | 16,930 | ||||||||||||||||||||||||||||||||||
Gross Profit | 25,927 | 15,553 | 14,243 | 14,050 | 14,639 | 13,074 | 13,519 | 12,829 | ||||||||||||||||||||||||||||||||||||||||||
Gross Profit % | 61 | % | 65 | % | 66 | % | 69 | % | 72 | % | 72 | % | 74 | % | 76 | % | ||||||||||||||||||||||||||||||||||
Net Income | 19,412 | 4,243 | 2,388 | 2,853 | 1,326 | 1,958 | 2,968 | 2,219 | ||||||||||||||||||||||||||||||||||||||||||
Cash (As of) | 29,707 | 8,409 | 13,355 | 12,630 | 7,691 | 7,410 | 10,413 | 10,174 | ||||||||||||||||||||||||||||||||||||||||||
Total Assets (As of) | 112,178 | 86,801 | 82,596 | 79,981 | 71,014 | 58,718 | 53,653 | 49,240 | ||||||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA(1) | 16,287 | 7,869 | 5,569 | 4,883 | 4,116 | 4,466 | 4,896 | 4,155 | ||||||||||||||||||||||||||||||||||||||||||
Operational Information: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Vent Patients(2) | 7,705 | 7,965 | 7,759 | 7,421 | 7,130 | 6,393 | 5,905 | 5,444 |
(Tabular amounts expressed in thousands of U.S. Dollars, except per share amounts and vent patients) | ||||||||||||||||||||||||
For the quarter ended | June 30, 2019 | March 31, 2019 | December 31, 2018 | September 30, 2018 | June 30, 2018 | March 31, 2018 | December 31, 2017 | September 30, 2017 | ||||||||||||||||
Financial Information: | ||||||||||||||||||||||||
Revenue | $ | 22,547 | $ | 20,443 | $ | 18,489 | $ | 17,163 | $ | 15,508 | $ | 14,111 | $ | 13,548 | $ | 12,451 | ||||||||
Gross Profit | $ | 16,861 | $ | 15,402 | $ | 13,645 | $ | 13,062 | $ | 11,323 | $ | 10,552 | $ | 10,186 | $ | 9,312 | ||||||||
Gross Profit % | 75 | % | 75 | % | 74 | % | 76 | % | 73 | % | 75 | % | 75 | % | 75 | % | ||||||||
Net Income (Loss) | $ | 1,820 | $ | 2,154 | $ | 3,046 | $ | 2,424 | $ | 2,366 | $ | 2,341 | $ | (26 | ) | $ | 4,018 | |||||||
Adjusted EBITDA(1) | $ | 4,610 | $ | 4,662 | $ | 4,974 | $ | 4,360 | $ | 4,114 | $ | 3,762 | $ 1,877(3) | $ | 4,690 | |||||||||
Cash (As of) | $ | 7,691 | $ | 7,410 | $ | 10,413 | $ | 10,174 | $ | 8,551 | $ | 4,634 | $ | 5,098 | $ | 7,273 | ||||||||
Total Assets (As of) | $ | 70,886 | $ | 58,583 | $ | 53,525 | $ | 49,147 | $ | 44,168 | $ | 40,566 | $ | 37,691 | $ | 32,740 | ||||||||
Operational Information: | ||||||||||||||||||||||||
Vent Patients(2) | 7,130 | 6,393 | 5,905 | 5,444 | 5,078 | 4,685 | 4,385 | 4,044 |
Three Months Ended June 30, | Three Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | % of Total Revenue | 2018 | % of Total Revenue | $ Change | % Change | 2020 | % of Total Revenue | 2019 | % of Total Revenue | $ Change | % Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | $ | 22,547 | 100.0 | % | $ | 15,508 | 100.0 | % | $ | 7,039 | 45.4 | % | Revenue | $ | 42,854 | 100.0 | % | $ | 20,325 | 100.0 | % | $ | 22,529 | 110.8 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of revenue | 5,686 | 25.2 | % | 4,185 | 27.0 | % | 1,501 | 35.9 | % | Cost of revenue | 16,927 | 39.5 | % | 5,686 | 28.0 | % | 11,241 | 197.7 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross profit | 16,861 | 74.8 | % | 11,323 | 73.0 | % | 5,538 | 48.9 | % | Gross profit | 25,927 | 60.5 | % | 14,639 | 72.0 | % | 11,288 | 77.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative | 13,244 | 58.7 | % | 7,919 | 51.1 | % | 5,325 | 67.2 | % | Selling, general and administrative | 16,428 | 38.3 | % | 11,516 | 56.7 | % | 4,912 | 42.7 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Research and development | 203 | 0.9 | % | — | — | % | 203 | 100.0 | % | Research and development | 271 | 0.6 | % | 203 | 1.0 | % | 68 | 33.5 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | 1,034 | 4.6 | % | 665 | 4.3 | % | 369 | 55.5 | % | Stock-based compensation | 1,196 | 2.8 | % | 1,034 | 5.1 | % | 162 | 15.7 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation | 138 | 0.6 | % | 124 | 0.8 | % | 14 | 11.3 | % | Depreciation | 205 | 0.5 | % | 138 | 0.7 | % | 67 | 48.6 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss on disposal of property and equipment | 85 | 0.4 | % | 52 | 0.3 | % | 33 | 63.5 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other expense | 25 | 0.1 | % | 7 | — | % | 18 | 257.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Gain) loss on disposal of property and equipment | (Gain) loss on disposal of property and equipment | (1,458) | (3.4) | % | 85 | 0.4 | % | (1,543) | NM | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other (income) expense | Other (income) expense | (3,574) | (8.3) | % | (1) | — | % | (3,573) | NM | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income from operations | 2,132 | 9.5 | % | 2,556 | 16.5 | % | (424 | ) | (16.6 | )% | Income from operations | 12,859 | 30.0 | % | 1,664 | 8.2 | % | 11,195 | 672.8 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-operating expenses | Non-operating expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized Loss on warrant conversion liability | 268 | 1.2 | % | 123 | 0.8 | % | 145 | 117.9 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized (gain) loss on warrant conversion liability | Unrealized (gain) loss on warrant conversion liability | — | — | % | 268 | 1.3 | % | (268) | (100.0) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Gain) loss from equity investment | (Gain) loss from equity investment | (42) | (0.1) | % | 26 | 0.1 | % | (68) | NM | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense, net | 20 | 0.1 | % | 67 | 0.4 | % | (47 | ) | (70.1 | )% | Interest expense, net | 135 | 0.3 | % | 20 | 0.1 | % | 115 | NM | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income before taxes | 1,844 | 8.2 | % | 2,366 | 15.3 | % | (522 | ) | (22.1 | )% | Net income before taxes | 12,766 | 29.8 | % | 1,350 | 6.6 | % | 11,416 | 845.6 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Provision for income taxes | 24 | 0.1 | % | — | — | % | 24 | 100.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Benefit) provision for income taxes | (Benefit) provision for income taxes | (6,646) | (15.5) | % | 24 | 0.1 | % | (6,670) | NM | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | $ | 1,820 | 8.1 | % | $ | 2,366 | 15.3 | % | $ | (546 | ) | (23.1 | )% | Net income | $ | 19,412 | 45.3 | % | $ | 1,326 | 6.5 | % | $ | 18,086 | NM |
Page 25 |
VIEMED HEALTHCARE, INC. MANAGEMENT'S DISCUSSION AND ANALYSIS | ||||||||||||||
(Tabular amounts expressed in thousands of US Dollars, except per share amounts) | ||||||||||||||
June 30, |
Three Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | % of Total Revenue | 2019 | % of Total Revenue | $ Change | % Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net revenue from rentals under Topic 842 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ventilator rentals, non-invasive and invasive | $ | 19,918 | 46.5 | % | $ | 17,573 | 86.4 | % | $ | 2,345 | 13.3 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other durable medical equipment rentals | 2,404 | 5.6 | % | 1,218 | 6.0 | % | 1,186 | 97.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net revenue from sales and services under Topic 606 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equipment and supply sales | 540 | 1.2 | % | 1,075 | 5.3 | % | (535) | (49.8) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
COVID-19 response sales | 19,712 | 46.0 | % | — | — | % | 19,712 | 100.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Service revenues | 280 | 0.7 | % | 459 | 2.3 | % | (179) | (39.0) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total net revenue | $ | 42,854 | 100.0 | % | $ | 20,325 | 100.0 | % | $ | 22,529 | 110.8 | % |
Three Months Ended June 30, | ||||||||||||||||||||
2019 | % of Total Revenue | 2018 | % of Total Revenue | $ Change | % Change | |||||||||||||||
Revenue from rentals | ||||||||||||||||||||
Ventilator rentals, non-invasive and invasive | $ | 19,461 | 86.3 | % | $ | 13,852 | 89.3 | % | $ | 5,609 | 40.5 | % | ||||||||
Other durable medical equipment rentals | 1,425 | 6.3 | % | 532 | 3.4 | % | 893 | 167.9 | % | |||||||||||
Revenue from sales and services | ||||||||||||||||||||
Equipment sales | 1,164 | 5.2 | % | 895 | 5.8 | % | 269 | 30.1 | % | |||||||||||
Service revenues | 497 | 2.2 | % | 229 | 1.5 | % | 268 | 117.0 | % | |||||||||||
$ | 22,547 | 100.0 | % | $ | 15,508 | 100.0 | % | $ | 7,039 | 45.4 | % |
Page 26 |
VIEMED HEALTHCARE, INC. MANAGEMENT'S DISCUSSION AND ANALYSIS | ||||||||||||||
(Tabular amounts expressed in thousands of US Dollars, except per share amounts) | ||||||||||||||
June 30, 2020 and 2019 |
Six Months Ended June 30, | ||||||||||||||||||||
2019 | % of Total Revenue | 2018 | % of Total Revenue | $ Change | % Change | |||||||||||||||
Revenue | $ | 42,990 | 100.0 | % | $ | 29,619 | 100.0 | % | $ | 13,371 | 45.1 | % | ||||||||
Cost of revenue | 10,727 | 25.0 | % | 7,744 | 26.1 | % | 2,983 | 38.5 | % | |||||||||||
Gross profit | $ | 32,263 | 75.0 | % | $ | 21,875 | 73.9 | % | $ | 10,388 | 47.5 | % | ||||||||
Selling, general and administrative | 24,836 | 57.8 | % | 15,208 | 51.3 | % | 9,628 | 63.3 | % | |||||||||||
Research and development | 437 | 1.0 | % | — | — | % | 437 | 100.0 | % | |||||||||||
Stock-based compensation | 1,914 | 4.5 | % | 1,226 | 4.1 | % | 688 | 56.1 | % | |||||||||||
Depreciation | 267 | 0.6 | % | 330 | 1.1 | % | (63 | ) | (19.1 | )% | ||||||||||
Loss on disposal of property and equipment | 141 | 0.3 | % | 88 | 0.3 | % | 53 | 60.2 | % | |||||||||||
Other expense | $ | 49 | 0.1 | % | $ | 7 | — | % | $ | 42 | 600.0 | % | ||||||||
Income from operations | $ | 4,619 | 10.7 | % | $ | 5,016 | 16.9 | % | $ | (397 | ) | (7.9 | )% | |||||||
Non-operating expenses | ||||||||||||||||||||
Unrealized Loss on warrant conversion liability | 437 | 1.0 | % | 195 | 0.7 | % | 242 | 124.1 | % | |||||||||||
Interest expense, net | 46 | 0.1 | % | 114 | 0.4 | % | (68 | ) | (59.6 | )% | ||||||||||
Net income before taxes | $ | 4,136 | 9.6 | % | $ | 4,707 | 15.9 | % | $ | (571 | ) | (12.1 | )% | |||||||
Provision for income taxes | 162 | 0.4 | % | — | — | % | 162 | 100.0 | % | |||||||||||
Net income | $ | 3,974 | 9.2 | % | $ | 4,707 | 15.9 | % | $ | (733 | ) | (15.6 | )% |
Six Months Ended June 30, | ||||||||||||||||||||
2019 | % of Total Revenue | 2018 | % of Total Revenue | $ Change | % Change | |||||||||||||||
Revenue from rentals | ||||||||||||||||||||
Ventilator rentals, non-invasive and invasive | $ | 37,743 | 87.8 | % | $ | 26,676 | 90.1 | % | $ | 11,067 | 41.5 | % | ||||||||
Other durable medical equipment rentals | 2,343 | 5.5 | % | 984 | 3.3 | % | $ | 1,359 | 138.1 | % | ||||||||||
Revenue from sales and services | ||||||||||||||||||||
Equipment sales | 2,032 | 4.7 | % | 1,502 | 5.1 | % | $ | 530 | 35.3 | % | ||||||||||
Service revenues | 872 | 2.0 | % | 457 | 1.5 | % | $ | 415 | 90.8 | % | ||||||||||
$ | 42,990 | 100.0 | % | $ | 29,619 | 100.0 | % | $ | 13,371 | 45.1 | % |
Page 27 |
VIEMED HEALTHCARE, INC. MANAGEMENT'S DISCUSSION AND ANALYSIS | ||||||||||||||
(Tabular amounts expressed in thousands of US Dollars, except per share amounts) | ||||||||||||||
June 30, |
Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | % of Total Revenue | 2019 | % of Total Revenue | $ Change | % Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | $ | 66,660 | 100.0 | % | $ | 38,440 | 100.0 | % | $ | 28,220 | 73.4 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of revenue | 25,180 | 37.8 | % | 10,727 | 27.9 | % | 14,453 | 134.7 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross profit | 41,480 | 62.2 | % | 27,713 | 72.1 | % | 13,767 | 49.7 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative | 27,005 | 40.5 | % | 20,976 | 54.6 | % | 6,029 | 28.7 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Research and development | 445 | 0.7 | % | 437 | 1.1 | % | 8 | 1.8 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | 2,347 | 3.5 | % | 1,914 | 5.0 | % | 433 | 22.6 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation | 410 | 0.6 | % | 267 | 0.7 | % | 143 | 53.6 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Gain) loss on disposal of property and equipment | (2,627) | (3.9) | % | 141 | 0.4 | % | (2,768) | NM | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other (income) expense | (3,574) | (5.4) | % | (2) | — | % | (3,572) | NM | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income from operations | 17,474 | 26.2 | % | 3,980 | 10.4 | % | 13,494 | 339.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-operating expenses | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized (gain) loss on warrant conversion liability | — | — | % | 437 | 1.1 | % | (437) | (100.0) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss from equity investment | (15) | — | % | 51 | 0.1 | % | (66) | (129.4) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense, net | 293 | 0.4 | % | 46 | 0.1 | % | 247 | NM | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income before taxes | 17,196 | 25.8 | % | 3,446 | 9.0 | % | 13,750 | 399.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Benefit) provision for income taxes | (6,459) | (9.7) | % | 162 | 0.4 | % | (6,621) | NM | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | $ | 23,655 | 35.5 | % | $ | 3,284 | 8.5 | % | $ | 20,371 | 620.3 | % |
Page 28 |
VIEMED HEALTHCARE, INC. MANAGEMENT'S DISCUSSION AND ANALYSIS | ||||||||||||||
(Tabular amounts expressed in thousands of US Dollars, except per share amounts) | ||||||||||||||
June 30, 2020 and 2019 |
Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | % of Total Revenue | 2019 | % of Total Revenue | $ Change | % Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net revenue from rentals under Topic 842 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ventilator rentals, non-invasive and invasive | $ | 38,710 | 58.1 | % | $ | 33,777 | 87.9 | % | $ | 4,933 | 14.6 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other durable medical equipment rentals | 4,535 | 6.8 | % | 2,015 | 5.2 | % | 2,520 | 125.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net revenue from sales and services under Topic 606 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equipment and supply sales | 2,072 | 3.1 | % | 1,853 | 4.8 | % | 219 | 11.8 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
COVID-19 response sales | 20,753 | 31.1 | % | — | — | % | 20,753 | 100.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Service revenues | 590 | 0.9 | % | 795 | 2.1 | % | (205) | (25.8) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total net revenue | $ | 66,660 | 100.0 | % | $ | 38,440 | 100.0 | % | $ | 28,220 | 73.4 | % |
Page 29 |
VIEMED HEALTHCARE, INC. MANAGEMENT'S DISCUSSION AND ANALYSIS | ||||||||||||||
(Tabular amounts expressed in thousands of US Dollars, except per share amounts) | ||||||||||||||
June 30, 2020 and 2019 |
VIEMED HEALTHCARE, INC. MANAGEMENT'S DISCUSSION AND ANALYSIS | ||||||||||||||
(Tabular amounts expressed in thousands of US Dollars, except per share amounts) | ||||||||||||||
June 30, 2020 and 2019 |
For the quarter ended | June 30, 2020 | March 31, 2020 | December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | December 31, 2018 | September 30, 2018 | ||||||||||||||||||
Net Income | $ | 19,412 | $ | 4,243 | $ | 2,388 | $ | 2,853 | $ | 1,326 | $ | 1,958 | $ | 2,968 | $ | 2,219 | ||||||||||
Add back: | ||||||||||||||||||||||||||
Depreciation | 2,190 | 2,130 | 2,003 | 1,659 | 1,444 | 1,295 | 1,177 | 972 | ||||||||||||||||||
Interest expense | 135 | 158 | 212 | 56 | 20 | 26 | 30 | 37 | ||||||||||||||||||
Unrealized (gain) loss on warrant conversion liability | — | — | — | (800) | 268 | 169 | (210) | 220 | ||||||||||||||||||
Stock-based compensation | 1,196 | 1,151 | 908 | 1,064 | 1,034 | 880 | 804 | 672 | ||||||||||||||||||
Income tax (benefit) expense | (6,646) | 187 | 58 | 51 | 24 | 138 | 127 | 35 | ||||||||||||||||||
Adjusted EBITDA | $ | 16,287 | $ | 7,869 | $ | 5,569 | $ | 4,883 | $ | 4,116 | $ | 4,466 | $ | 4,896 | $ | 4,155 |
Page 31 |
For the quarter ended | June 30, 2019 | March 31, 2019 | December 31, 2018 | September 30, 2018 | June 30, 2018 | March 31, 2018 | December 31, 2017 | September 30, 2017 |
Net Income (Loss) | 1,820 | 2,154 | 3,046 | 2,424 | 2,366 | 2,341 | (26) | 4,018 |
Add back: | ||||||||
Depreciation | 1,444 | 1,295 | 1,177 | 972 | 893 | 741 | 738 | 662 |
Interest expense | 20 | 26 | 30 | 37 | 67 | 47 | 49 | 67 |
Unrealized (gain) loss on warrant conversion liability | 268 | 169 | (210) | 220 | 123 | 72 | 158 | — |
Stock-based compensation | 1,034 | 880 | 804 | 672 | 665 | 561 | 828 | — |
Income tax expense (benefit) | 24 | 138 | 127 | 35 | — | — | 130 | (57) |
Adjusted EBITDA | $4,610 | $4,662 | $4,974 | $4,360 | $4,114 | $3,762 | $1,877 | $4,690 |
VIEMED HEALTHCARE, INC. MANAGEMENT'S DISCUSSION AND ANALYSIS | ||||||||||||||
(Tabular amounts expressed in thousands of US Dollars, except per share amounts) | ||||||||||||||
June 30, 2020 and 2019 |
Six Months Ended June 30, | ||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||
Net Cash provided by (used in): | ||||||||||||||||||||
Operating activities | $ | 21,988 | $ | 5,963 | ||||||||||||||||
Investing activities | (620) | (7,487) | ||||||||||||||||||
Financing activities | (5,016) | (1,198) | ||||||||||||||||||
Net increase (decrease) in cash and cash equivalents | $ | 16,352 | $ | (2,722) |
Six Months Ended June 30, | ||||
2019 | 2018 | |||
Net Cash provided by (used in): | ||||
Operating activities | $5,963 | $9,003 | ||
Investing activities | (7,487) | (1,780) | ||
Financing activities | (1,198) | (3,770) | ||
Net (decrease) increase in cash and cash equivalents | $(2,722) | $3,453 |
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VIEMED HEALTHCARE, INC. MANAGEMENT'S DISCUSSION AND ANALYSIS | ||||||||||||||
(Tabular amounts expressed in thousands of US Dollars, except per share amounts) | ||||||||||||||
June 30, 2020 and 2019 |
Financial Covenant | Required Ratio | Ratio | ||||||
Total Debt to Adjusted EBITDA (Quarterly) | not more than 1.50:1.00 | 0.45 | ||||||
Fixed Charge Coverage Ratio (Quarterly) | not less than 1.35:1.00 | 17.12 | ||||||
Loan-to-Value Ratio (Quarterly) | not more than 0.85 | 0.72 |
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(Tabular amounts expressed in thousands of US Dollars, except per share amounts) | ||||||||||||||
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VIEMED HEALTHCARE, INC. MANAGEMENT'S DISCUSSION AND ANALYSIS | ||||||||||||||
(Tabular amounts expressed in thousands of US Dollars, except per share amounts) | ||||||||||||||
June 30, 2020 and 2019 |
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(Tabular amounts expressed in thousands of US Dollars, except per share amounts) | ||||||||||||||
June 30, 2020 and 2019 |
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(Tabular amounts expressed in thousands of US Dollars, except per share amounts) | ||||||||||||||
June 30, 2020 and 2019 |
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VIEMED HEALTHCARE, INC. | ||||||||||||||
June 30, 2020 and 2019 |
*31.1 | ||||||||
*31.2 |
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**32.1 | ||||||||||||||
**32.2 | ||||||||||||||
*101.INS | XBRL Instance Document. | |||||||||||||
*101.SCH | XBRL Taxonomy Extension Schema Document. | |||||||||||||
*101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document. | |||||||||||||
*101.LAB | XBRL Taxonomy Extension Label Linkbase Document. | |||||||||||||
*101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document. | |||||||||||||
*101.DEF | XBRL Taxonomy Extension Definition Document. | |||||||||||||
* Filed | ||||||||||||||
** Furnished in accordance with Item 601(b)(32)(ii) of Regulation S-K. | ||||||||||||||
# Schedules and similar attachments have been omitted pursuant to Item 601(b)(2) of Regulation S-K. The Company will furnish supplementally a copy of any omitted schedule or similar attachment to the Securities and Exchange Commission upon request. |
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VIEMED HEALTHCARE, INC. | ||||||||||||||
June 30, |
VIEMED HEALTHCARE, INC. | |||||||||||
(Registrant) | |||||||||||
By: | |||||||||||
/s/ Casey Hoyt | |||||||||||
Casey Hoyt | |||||||||||
Chief Executive Officer | |||||||||||
By: | /s/ Trae Fitzgerald | ||||||||||
Trae Fitzgerald | |||||||||||
Chief Financial Officer |
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