VIEMED HEALTHCARE, INC. Q3 FY2024 earnings call

• Third quarter net revenue of $58 million exceeded projections, driven by organic growth and M&A.
• Viemed's care model focuses on patient satisfaction, using the Engage platform for communication.
• Advocated for regulatory changes: NCD 280.1 reconsideration and 75-25 reimbursement relief.
• Vent business grew due to operational overhaul and new sales structure.
• Sleep business saw sequential growth despite GLP-1 drugs, with potential for more growth.
• East Alabama joint venture integration progressing, and M&A pipeline remains robust.

The third quarter net revenue was $58 million. The vent business accounted for 55% of total revenue, with a 4.3% sequential increase in active vent patients and an 18% increase in average monthly setups per sales rep. The sleep business contributed 17% of revenue, showing sequential growth in CPAP units, patients, resupply orders, and home sleep tests. Oxygen and staffing each contributed approximately 10% of revenue. The East Alabama joint venture is on track to reach annualized revenue of approximately $4 million as outlined.

• Anticipates fourth quarter net revenue in the range of $59.7 million to $60.9 million, implying 4.0% sequential growth and 18.9% year-over-year increase.
• Expect solid adjusted EBITDA finish for the year based on maintained margin profile and liquidity ramp.

• Uncertainties in Philips vent remediation process affecting CapEx timing.
• Regulatory changes and reimbursement uncertainties that could impact business performance.

Q: Brooks O'Neil inquired about regulatory reimbursement change.

A: Casey Hoyt explained that 75-25 is a reimbursement relief and NCD 280.1 is about clarifying clinical guidelines, with CMS likely to develop clear guidelines benefiting the industry.

Q: Doug Cooper asked about sleep business disclosures.

A: Todd Zehnder explained that sleep therapy patients are those on PAP therapy, resupply orders are service revenue, and they should be added together to get the total patients served.

Q: Ilya Zubkov asked about EBITDA margin expansion and CapEx.

A: Todd Zehnder stated EBITDA margins expand due to scale efficiencies, and CapEx will likely remain significant through at least the middle of next year as they work with Philips on vent remediation.