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0001729149false00017291492024-05-062024-05-06

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): May 7, 2025
 
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)
(337) 504-3802
(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. ☐




Item 2.02.     Results of Operations and Financial Condition.

On May 7, 2025, Viemed Healthcare, Inc. (the "Company") issued a press release announcing its financial results for the three months ended March 31, 2025. The press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

In addition, the Company issued a Financial Supplement with respect to its financial results for the three months ended March 31, 2025. The Financial Supplement is attached hereto as Exhibit 99.2 and is incorporated herein by reference.

In accordance with General Instruction B.2 of Form 8-K, the foregoing information, including Exhibits 99.1 and 99.2, 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 Exhibits 99.1 and 99.2 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 May 7, 2025.
99.2    Financial Supplement dated May 7, 2025.
104     Cover Page Interactive Data File, formatted in Inline XBRL and included as Exhibit 101



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: May 7, 2025
 
VIEMED HEALTHCARE, INC.
By:
/s/ Trae Fitzgerald
Trae Fitzgerald
Chief Financial Officer
































EX-99.1 2 q12025earningsrelease.htm EX-99.1 Document

VIEMED HEALTHCARE ANNOUNCES FIRST QUARTER 2025 FINANCIAL RESULTS

LAFAYETTE, Louisiana (May 7, 2025) 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 months ended March 31, 2025, and updated guidance for the full year ending December 31, 2025.

Operational highlights (all dollar amounts are USD):

•Net revenues for the quarter ended March 31, 2025 were $59.1 million, representing an increase of $8.5 million, or 17%, over net revenues reported for the comparable quarter ended March 31, 2024.

•Net income attributable to Viemed for the quarter ended March 31, 2025 totaled $2.6 million, or $0.06 per diluted share, an increase of 64% over net income attributable to Viemed of $1.6 million, or $0.04 per diluted share, for the quarter ended March 31, 2024.

•Adjusted EBITDA for the quarter ended March 31, 2025 totaled $12.8 million, a 26% increase as compared to the quarter ended March 31, 2024. 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 increased its ventilator patient count to 11,809 as of March 31, 2025, an increase of 13% over March 31, 2024, and a slight increase as compared to December 31, 2024.

•The Company increased its PAP therapy patient count to 22,899 as of March 31, 2025, an increase of 46% over March 31, 2024, and a 7% sequential increase from December 31, 2024. The Company's sleep resupply patient count was 22,941 as of March 31, 2025, an increase of 21% over March 31, 2024, and a 6% sequential decrease from December 31, 2024.

•As of March 31, 2025, the Company maintains a strong cash balance of $10.2 million, and an overall working capital balance of $13.6 million. Long-term debt as of March 31, 2025 amounted to $3.5 million and the Company has $55 million available under existing credit facilities.

Updated Full Year 2025 Guidance (all dollar amounts are USD):

•Net revenue for the year ending December 31, 2025 is expected to be in the range of $256 million to $265 million, increased from the prior range of $254 million to $265 million.

•Adjusted EBITDA for the year ending December 31, 2025 is expected to be in the range of $55 million to $58 million, increased from the prior range of $54 million to $58 million. See “Forward-Looking Statements” below for further information on this non-GAAP financial guidance.

Agreement to Acquire Lehan’s Medical Equipment for $26 Million in Third Quarter of 2025 (all dollar amounts are USD):

•As previously disclosed on May 6, 2025, Viemed agreed to acquire Lehan’s Medical Equipment, a healthcare company offering home medical equipment with specialties in respiratory care and women’s health, for approximately $26 million, subject to customary net working capital adjustments and an estimated $2.2 million of contingent payments. In 2024, Lehan generated net revenues of approximately $25.7 million and Adjusted EBITDA of approximately $7.4 million.

•Viemed has not included the anticipated impact of this acquisition in its full year 2025 guidance. When the acquisition is completed, subject to customary closing conditions, in the third quarter of 2025, the Company intends to update its full year outlook to incorporate the anticipated contributions from the acquisition.

Casey Hoyt, Viemed’s CEO, noted, ”We are pleased to see marked improvement in each of our businesses in what has historically been our toughest quarter. The strong, across-the-board start to the year has given us the confidence to tighten our guidance by raising the lower end of our revenue and Adjusted EBITDA ranges. This performance is directly attributable to returns we are already seeing from the structure we put in place in 2024 to improve our sales organization and accelerate the hiring of new reps, as well as the leveraging of investments in technology for greater efficiencies.



We are ahead of pace on increasing the sales team and expanding into new territories to fuel organic growth.

“The strong balance sheet continues to facilitate the opportunity we have pursued for the past 12 months to significantly improve and extend the life of our ventilator fleet. This unique opportunity, which we expect to conclude in the first half of this year, has been primarily funded by the existing buyback program from a large supplier. We expect this investment to reap long-term rewards as we grow the business. Our strong capital position and cash flow are also enabling us to layer on inorganic growth such as the acquisition of Lehan's Medical Equipment later this year that is expected to complement the growth we are experiencing in the complex respiratory, sleep and staffing businesses.

“While the macro environment has led to significant volatility in the public markets, we have seen no impact to date to our business from tariffs or a pullback from providers and payers. In fact, our certified Respiratory Therapists and technology-enabled clinical approach continue to earn us a trusted place in the home. Here, our value proposition to patients is greater satisfaction and better outcomes; to hospitals and health systems it’s fewer readmissions; and to payers it’s a lower total cost of care versus institutional settings. We believe we are perfectly positioned to help improve lives through compassionate care in the home.”

Conference Call Details

The Company will host a conference call to discuss first quarter results, as well as its 2025 guidance, on Thursday, May 8, 2025, at 11:00 a.m. EDT.

Interested parties may participate in the call by dialing:

866-682-6100 (US Toll-Free)
+1-862-298-0702 (International)

Live Audio Webcast: https://event.choruscall.com/mediaframe/webcast.html?webcastid=0dOJVhdb

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

ABOUT VIEMED HEALTHCARE, INC.

Viemed is an in-home clinical care provider of post-acute respiratory healthcare equipment and services in the United States, including non-invasive ventilators (NIV), sleep therapy, staffing, and other complementary products and services. Viemed focuses on efficient and effective in-home treatment with clinical practitioners providing therapy, education and counseling to patients in their homes using high-touch and high-tech services. Visit our website at www.viemed.com.

For further information, please contact:

Investor Relations
ir@viemed.com

Tripp Sullivan
SCR Partners, LLC
615-942-7077

Trae Fitzgerald
Chief Financial Officer
Viemed Healthcare, Inc.
337-504-3802







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 and Adjusted EBITDA guidance for 2025, the improvement and extension of the life of the Company’s ventilator fleet, and the timing of the closing of the acquisition of Lehan Drugs, Inc. and the anticipated synergies and other benefits of the acquisition, 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 we operate; significant capital requirements and operating risks that we may be subject to; our ability to implement business strategies and pursue business opportunities; volatility in the market price of our 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 our 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 we are 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 us; 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 other general economic, market and business conditions; and other factors beyond our control; 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.

This press release contains non-GAAP financial guidance. There is no reliable or reasonably estimable comparable GAAP measure for the Company’s non-GAAP financial guidance because the Company is not able to reliably predict the impact of certain items that typically have one or more of the following characteristics: highly variable, difficult to project, unusual in nature, significant to the results of a particular period or not indicative of future operating results. Similar charges or gains were recognized in prior periods and will likely reoccur in future periods. As a result, reconciliation of the non-GAAP financial guidance to the most directly comparable GAAP measure is not available without unreasonable effort. In addition, the Company believes such a reconciliation would imply a degree of precision and certainty that could be confusing to investors. The variability of the specified items may have a significant and unpredictable impact on the Company’s future GAAP results.

The Company’s financial guidance in this press release excludes the impact of potential future strategic acquisitions and any items that have not yet been identified or quantified. This guidance is subject to risks and uncertainties inherent in all forward-looking statements, as outlined above.








VIEMED HEALTHCARE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Expressed in thousands of U.S. Dollars, except share amounts)
(Unaudited)
At
March 31, 2025
At
December 31, 2024
ASSETS
Current assets
Cash and cash equivalents $ 10,160  $ 17,540 
Accounts receivable, net
26,789  24,911 
Inventory 4,510  4,320 
Prepaid expenses and other assets 7,661  6,109 
Total current assets $ 49,120  $ 52,880 
Long-term assets
Property and equipment, net 81,054  76,279 
Finance lease right-of-use assets 31  50 
Operating lease right-of-use assets 2,877  2,831 
Equity investments 2,794  2,794 
Deferred tax asset 8,398  8,398 
Identifiable intangibles, net 816  848 
Goodwill 32,989  32,989 
Total long-term assets $ 128,959  $ 124,189 
TOTAL ASSETS $ 178,079  $ 177,069 
LIABILITIES
Current liabilities
Trade payables $ 7,944  $ 5,322 
Deferred revenue 6,795  6,694 
Income taxes payable 1,878  3,883 
Accrued liabilities 17,543  20,157 
Finance lease liabilities, current portion 32  50 
Operating lease liabilities, current portion 905  811 
Current portion of long-term debt 390  409 
Total current liabilities $ 35,487  $ 37,326 
Long-term liabilities
Accrued liabilities 410  846 
Operating lease liabilities, less current portion 1,903  2,007 
Long-term debt 3,530  3,589 
Total long-term liabilities $ 5,843  $ 6,442 
TOTAL LIABILITIES $ 41,330  $ 43,768 
Commitments and Contingencies —  — 
SHAREHOLDERS' EQUITY
Common stock - No par value: unlimited authorized; 39,523,787 and 39,132,897 issued and outstanding as of March 31, 2025 and December 31, 2024, respectively
28,151  23,365 
Additional paid-in capital 15,873  18,337 
Retained earnings 90,732  89,691 
TOTAL VIEMED HEALTHCARE, INC.'S SHAREHOLDERS' EQUITY $ 134,756  $ 131,393 
Noncontrolling interest in subsidiary 1,993  1,908 
TOTAL SHAREHOLDERS' EQUITY $ 136,749  $ 133,301 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 178,079  $ 177,069 



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 March 31,
2025 2024
Revenue $ 59,129  $ 50,593 
Cost of revenue 25,850  20,791 
Gross profit $ 33,279  $ 29,802 
Operating expenses
Selling, general and administrative 28,425  24,814 
Research and development 797 750 
Stock-based compensation 2,311  1,432 
Depreciation and amortization
348  415 
Loss (gain) on disposal of property and equipment
(2,368) 213 
     Other income, net
(75) (26)
Income from operations $ 3,841  $ 2,204 
Non-operating income and expenses
Income from investments
(67)
Interest expense, net
179  150 
Net income before taxes 3,662  2,121 
Provision for income taxes 952  518 
Net income $ 2,710  $ 1,603 
Net income attributable to noncontrolling interest 85  — 
Net income attributable to Viemed Healthcare, Inc. $ 2,625  $ 1,603 
Net income per share
Basic $ 0.07  $ 0.04 
Diluted $ 0.06  $ 0.04 
Weighted average number of common shares outstanding:
Basic 39,426,753  38,717,123 
Diluted 41,627,876  40,580,634 



VIEMED HEALTHCARE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Expressed in thousands of U.S. Dollars)
(Unaudited)
Three Months Ended March 31,
2025 2024
Cash flows from operating activities
Net income $ 2,710  $ 1,603 
Adjustments for:
Depreciation and amortization
6,613  6,285 
Stock-based compensation expense 2,311  1,432 
Distributions of earnings received from equity method investments —  49 
Income from equity method investments —  (67)
Income from debt investment —  (55)
Loss (gain) on disposal of property and equipment
(2,368) 213 
Amortization of deferred financing costs
35  — 
Changes in working capital:
Accounts receivable, net
(1,878) (6,026)
Inventory
(190) 279 
Prepaid expenses and other assets
(601) 99 
Trade payables
1,176  588 
Deferred revenue
101  (115)
Accrued liabilities
(3,050) (3,632)
Income tax payable/receivable
(2,005) 522 
Net cash provided by operating activities $ 2,854  $ 1,175 
Cash flows from investing activities
Purchase of property and equipment (15,483) (6,006)
Proceeds from sale of property and equipment 6,953  641 
Net cash used in investing activities $ (8,530) $ (5,365)
Cash flows from financing activities
Proceeds from exercise of options 11  304 
Principal payments on term notes
(113) (589)
Shares redeemed to pay income tax (1,584) (961)
Repayments of finance lease liabilities
(18) (94)
Net cash used in financing activities
$ (1,704) $ (1,340)
Net decrease in cash and cash equivalents
(7,380) (5,530)
Cash and cash equivalents at beginning of year 17,540  12,839 
Cash and cash equivalents at end of period $ 10,160  $ 7,309 
Supplemental disclosures of cash flow information
Cash paid during the period for interest $ 125  $ 224 
Cash paid during the period for income taxes, net of refunds
$ 2,957  $ — 
Supplemental disclosures of non-cash transactions    
Equipment and other fixed asset purchases payable at end of period
$ 3,625  $ 2,428 
Equipment sales receivable at end of period
$ 3,832  $ — 




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. 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. In calculating Adjusted EBITDA, certain items (mostly non-cash) are excluded from net income attributable to Viemed Healthcare, Inc., including depreciation and amortization of capitalized assets, net interest expense (income), stock based compensation, transaction costs, impairment of assets, and taxes.

The following table is a reconciliation of net income attributable to Viemed Healthcare, Inc., 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 March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023 September 30, 2023 June 30, 2023
Net Income attributable to Viemed Healthcare, Inc.
$ 2,625  $ 4,316  $ 3,878  $ 1,468  $ 1,603  $ 3,477  $ 2,919  $ 2,330 
Add back:
Depreciation & amortization
6,613  6,366  6,408  6,309  6,285  5,918  5,975  5,207 
Interest expense (income)
179  147  225  254  150  256  237  (20)
Stock-based compensation(a)
2,311  1,521  1,712  1,620  1,432  1,534  1,453  1,471 
Transaction costs(b)
85  11  12  221  110  61  177  94 
Impairment of assets(c)
—  —  125  2,173  —  —  —  — 
Income tax expense 952  1,881  1,594  768  518  1,599  1,320  728 
Adjusted EBITDA $ 12,765  $ 14,242  $ 13,954  $ 12,813  $ 10,098  $ 12,845  $ 12,081  $ 9,810 

(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 March 31,
2025
December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023 September 30, 2023 June 30, 2023
Financial Information:
Revenue $ 59,129  $ 60,695  $ 58,004  $ 54,965  $ 50,593  $ 50,739  $ 49,402  $ 43,311 
Gross Profit $ 33,279  $ 36,138  $ 34,371  $ 32,892  $ 29,802  $ 32,111  $ 30,562  $ 26,106 
Gross Profit % 56  % 60  % 59  % 60  % 59  % 63  % 62  % 60  %
Net Income attributable to Viemed Healthcare, Inc.
$ 2,625  $ 4,316  $ 3,878  $ 1,468  $ 1,603  $ 3,477  $ 2,919  $ 2,330 
Cash and Cash Equivalents (As of)
$ 10,160  $ 17,540  $ 11,347  $ 8,807  $ 7,309  $ 12,839  $ 10,078  $ 10,224 
Total Assets (As of) $ 178,079  $ 177,069  $ 169,526  $ 163,947  $ 154,875  $ 154,895  $ 149,400  $ 149,117 
Adjusted EBITDA(1)
$ 12,765  $ 14,242  $ 13,954  $ 12,813  $ 10,098  $ 12,845  $ 12,081  $ 9,810 
Operational Information:
Vent Patients(2)
11,809  11,795  11,374  10,905  10,450  10,327  10,244  10,005 
PAP Therapy Patients(3)
22,899  21,338  19,478  17,349  15,726  14,900  14,788  13,313 
Sleep Resupply Patients(4)
22,941  24,478  22,143  20,185  18,904  18,902  18,544  12,572 
(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.
(3) PAP Therapy Patients represents the number of distinct patients billed for PAP therapy services during each calendar quarter.
(4) Sleep Resupply Patients represents the number of distinct patients who received supplies through our sleep resupply program during each calendar quarter.


EX-99.2 3 viemed_q12025supplementa.htm EX-99.2 viemed_q12025supplementa
Financial Supplement NASDAQ: VMD Leading th e Healthcare Industry in Home Respiratory Care May 7, 2025 1 First Quarter 2025


 
Disclaimers Forward Looking Statements Certain statements contained in this Financial Supplement 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 and Adjusted EBITDA guidance for 2025, and the timing of the closing of the acquisition of Lehan Drugs, Inc. and the anticipated synergies and other benefits of the acquisition, 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 we operate; significant capital requirements and operating risks that we may be subject to; our ability to implement business strategies and pursue business opportunities; volatility in the market price of our 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 our 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 we are 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 us; 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 other general economic, market and business conditions; and other factors beyond our control; 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 Financial Supplement are made as of the date of this Financial Supplement and the Company undertakes no obligation to publicly update or revise any forward-looking statements, other than as required by applicable law. This Financial Supplement contains non-GAAP financial guidance. There is no reliable or reasonably estimable comparable GAAP measure for the Company’s non-GAAP financial guidance because the Company is not able to reliably predict the impact of certain items that typically have one or more of the following characteristics: highly variable, difficult to project, unusual in nature, significant to the results of a particular period or not indicative of future operating results. Similar charges or gains were recognized in prior periods and will likely reoccur in future periods. As a result, reconciliation of the non-GAAP financial guidance to the most directly comparable GAAP measure is not available without unreasonable effort. In addition, the Company believes such a reconciliation would imply a degree of precision and certainty that could be confusing to investors. The variability of the specified items may have a significant and unpredictable impact on the Company’s future GAAP results. Non-GAAP and Other Financial Information This Financial Supplement 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. 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. 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, transaction costs, impairment of assets, and taxes. A reconciliation between GAAP and non-GAAP financial information is provided below. 2 VieMed Healthcare Inc. I Supplemental Presentation


 
Key Themes for Q1 2025 3 We saw marked improvement in each of the businesses in what is historically our toughest quarter. Benefits from the sales restructuring implemented in 2024 were evident in the non-invasive ventilation business while the staffing business continued its strong growth pace. Sleep therapy patients were up 7% sequentially in Q1 2025 while new sleep patient starts were up 40% year over year. Our strong capital position enabled us to pursue a complementary inorganic growth opportunity expected to close in Q3 2025. • Revenue growth of 17% YOY in Q1 • Robust vent patient growth of 13% YOY in Q1 • Q1 2025 revenue was in line with our expectations • Net income increased 69% YOY for Q1 • Adjusted EBITDA increased 26% YOY for Q1 • Balance sheet and liquidity improved year-over-year while funding strong organic growth VieMed Healthcare Inc. I Supplemental Presentation


 
Financial and Operational Highlights 4 (expressed in thousands of U.S. Dollars, except operational information). (1) Refer to "Non-GAAP Reconciliations" in this presentation for definition of Adjusted EBITDA and a reconciliation to its most comparable GAAP measure. (2) Vent Patients represents the number of active ventilator patients on recurring billing service at the end of each calendar quarter. (3) PAP Therapy Patients represents the number of distinct patients billed for PAP therapy services during each calendar quarter. (4) Sleep Resupply Patients represents the number of distinct patients who received supplies through our sleep resupply program during each calendar quarter. For the quarter ended: 3/31/25 12/31/24 9/30/24 6/30/24 3/31/24 12/31/23 9/30/23 6/30/23 Financial Information: Revenue $59,129 $60,695 $58,004 $54,965 $50,593 $50,739 $49,402 $43,311 Gross Profit $33,279 $36,138 $34,371 $32,892 $29,802 $32,111 $30,562 $26,106 Gross Profit % 56% 60% 59% 60% 59% 63% 62% 60% Net Income attributable to Viemed Healthcare, Inc. $2,625 $4,316 $3,878 $1,468 $1,603 $3,477 $2,919 $2,330 Cash and Cash Equivalents (As of) $10,160 $17,540 $11,347 $8,807 $7,309 $12,839 $10,078 $10,224 Total Assets (As of) $178,079 $177,069 $169,526 $163,947 $154,875 $154,895 $149,400 $149,117 Adjusted EBITDA(1) $12,765 $14,242 $13,954 $12,813 $10,098 $12,845 $12,081 $9,810 Operational Information: Vent Patients(2) 11,809 11,795 11,374 10,905 10,450 10,327 10,244 10,005 PAP Therapy Patients(3) 22,899 21,338 19,478 17,349 15,726 14,900 14,788 13,313 Sleep Resupply Patients(4) 22,941 24,478 22,143 20,185 18,904 18,902 18,544 12,572 VieMed Healthcare Inc. I Supplemental Presentation


 
Medicare 41% Medicaid/ MCO 8% Medicare Advantage 21% Commercial 17% Other 13% Ventilation 54% Sleep 16% Oxygen 10% Other 20% Q1 2025 Rental 76% Sales 24% Medicare 43% Medicaid/ MCO 7% Medicare Advantage 20% Commercial 17% Other 13% Ventilation 58% Sleep 14% Oxygen 11% Other 17% Q1 2024 Service, Payor and Revenue Mix 5 SERVICE MIX PAYOR MIX REVENUE MIX VieMed Healthcare Inc. I Supplemental Presentation SERVICE MIX PAYOR MIX Rental 79% Sales 21% REVENUE MIX


 
Revenue Highlights 6 For the quarter ended 3/31/25 12/31/24 9/30/24 6/30/24 3/31/24 12/31/23 9/30/23 6/30/23 Rental Revenue (expressed in thousands of USD): Ventilators, non-invasive & invasive $32,159 $33,173 $31,772 $30,445 $29,187 $29,077 $28,322 $25,712 Other home medical equipment rentals $12,962 $13,047 $12,459 $12,211 $10,934 $11,871 $11,119 $8,419 Sales & Service Revenue (expressed in thousands of USD): Equipment and supply sales $7,519 $8,940 $8,440 $7,378 $6,138 $6,486 $7,742 $6,778 Service revenues $6,489 $5,535 $5,333 $4,931 $4,334 $3,305 $2,219 $2,402 Total revenues $59,129 $60,695 $58,004 $54,965 $50,593 $50,739 $49,402 $43,311 Rental Revenue (% of Total revenue): Ventilators, non-invasive & invasive 54.4% 54.7% 54.8% 55.4% 57.7% 57.3% 57.3% 59.4% Other home medical equipment rentals 21.9% 21.5% 21.5% 22.2% 21.6% 23.4% 22.5% 19.5% Sales & Service Revenue (% of Total revenue): Equipment and supply sales 12.7% 14.7% 14.6% 13.4% 12.1% 12.8% 15.7% 15.6% Service revenues 11.0% 9.1% 9.2% 9.0% 8.6% 6.5% 4.5% 5.5% Total revenues 100% 100% 100% 100% 100% 100% 100% 100% VieMed Healthcare Inc. I Supplemental Presentation


 
Net CAPEX 7 For the quarter ended 3/31/25 12/31/24 9/30/24 6/30/24 3/31/24 12/31/23 9/30/23 6/30/23 Purchase of property and equipment 15,483 11,829 11,002 8,934 6,006 7,932 7,402 6,078 Proceeds from sale of property and equipment (6,953) (2,881) (6,033) (766) (641) (460) (353) (999) Net CAPEX 8,530 8,948 4,969 8,168 5,365 7,472 7,049 5,079 Net Capex % of Net Revenue 14.4% 14.7% 8.6% 14.9% 10.6% 14.7% 14.3% 11.7% VieMed Healthcare Inc. I Supplemental Presentation (expressed in thousands of U.S. Dollars)


 
Liquidity Metrics 8 Positioned for growth • The Company maintains a healthy balance sheet with no net debt as of March 31, 2025, providing significant financial flexibility. • As of March 31, 2025, the Company has $55 million in unfunded commitments available under its existing credit facilities, supporting future growth initiatives. For the period ended 3/31/25 12/31/24 12/31/23 Cash on hand $ 10,160 $ 17,540 $ 12,839 Working Capital $ 13,633 $ 15,554 $ 6,243 Long Term Debt $ 3,530 $ 3,589 $ 6,002 VieMed Healthcare Inc. I Supplemental Presentation (expressed in thousands of U.S. Dollars)


 
2025 Guidance – Commentary 9 • Strength in operational metrics in Q1, which should translate to better financial performance during the year, provides confidence in raising the lower end of guidance for both revenue and Adjusted EBITDA • Guidance increase reflects continued strength in operational performance and will be further updated upon closing of the Lehan’s Medical Equipment acquisition • Expecting continued growth in complex respiratory, sleep and staffing through balance of the year VieMed Healthcare Inc. I Supplemental Presentation


 
2025 Guidance – Commentary 10 Core Metrics • Net revenue of $256 million to $265 million; an increase from $254 million to $265 million • Adjusted EBITDA of $55 million to $58 million (21%-23% of net revenue); an increase from $54 million to $58 million Directional Commentary on Quarterly Cadence • Year-over-year growth expected to be consistent with prior year • Typically see sequential growth through Q2-Q4 • Net Capex in 1H 2025 expected to be similar to 2H 2024 while continuing our ventilator fleet swap; conclusion of ventilator buybacks expected in June with remaining payments from the vendor occurring in early Q3 Detailed Assumptions • Based on status quo; no contribution included from Lehan's Medical Equipment acquisition (expected to close in Q3 2025, subject to customary closing conditions) • Assumes sequential revenue growth in a range of 5% to 9% for the second, third, and fourth quarters VieMed Healthcare Inc. I Supplemental Presentation


 
Non-GAAP Reconciliations 11 (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. Reconciliation of Net Income to Non-GAAP Adjusted EBITDA For the quarter ended: 3/31/25 12/31/24 9/30/24 6/30/24 3/31/24 12/31/23 9/30/23 6/30/23 Net Income attributable to Viemed Healthcare, Inc. $ 2,625 $ 4,316 $ 3,878 $ 1,468 $ 1,603 $ 3,477 $ 2,919 $ 2,330 Add back: Depreciation & amortization 6,613 6,366 6,408 6,309 6,285 5,918 5,975 5,207 Interest expense (income) 179 147 225 254 150 256 237 (20) Stock-based compensation(a) 2,311 1,521 1,712 1,620 1,432 1,534 1,453 1,471 Transaction costs(b) 85 11 12 221 110 61 177 94 Impairment of assets(c) - - 125 2,173 - - - - Income tax expense 952 1,881 1,594 768 518 1,599 1,320 728 Adjusted EBITDA $ 12,765 $ 14,242 $ 13,954 $ 12,813 $ 10,098 $ 12,845 $ 12,081 $ 9,810 VieMed Healthcare Inc. I Supplemental Presentation (expressed in thousands of U.S. Dollars)