Leaders from Quipt Home Medical Corp. (Nasdaq: QIPT) touted their optimistic outlook for 2024 on Thursday, buoyed by the company’s plans to expand its continuum of care, its M&A strategy and a general sense of regulatory stability.
Another operational highlight for Quipt: continued growth of its resupply program.
“We continue to achieve consistent financial and operational results, driven by our resilient business model,” CEO and Chairman Gregory Crawford said during his company’s 2024 fiscal first-quarter earnings call.
Cincinnati-based Quipt provides in-home monitoring and disease management services, including end-to-end respiratory solutions, for patients in the United States healthcare market. Increasingly, the company has turned its focus to patients with heart or pulmonary disease, sleep disorders, reduced mobility and other chronic health conditions.
“Our strategic emphasis on expanding the continuum of care, cross-selling our product offerings, capitalizing on a stable supply chain and navigating a conducive regulatory landscape has positioned us very well,” Crawford said. “We’ve strategically targeted our efforts in areas with the higher prevalence of COPD [chronic obstructive pulmonary disease], extending our reach and enhancing our sales touchpoints within these vital markets.”
For Quipt’s fiscal first quarter of 2024, ending on Dec. 31, 2023, the company reported $65.4 million in total revenue. That’s compared to $40.8 million for Q1 2023, representing a 60-percent increase.
Recurring revenue, in particular, for Q1 2024 was strong, exceeding 83 percent of total revenue. Growth in recurring revenue was driven by overall growth in new equipment set-ups, according to Quipt.
Quipt’s resupply program consisted of about 172,000 patients as of Dec. 31, compared to roughly 100,000 patients at the same point the year prior. The business serves more than 287,000 active patients in total.
“With 125 locations across 26 states and over 287,000 active patients, Quipt has a strong reach from coast to coast,” Crawford said. “With the scale we have obtained, we have been able to grow and monitor our constantly expanding patient base, effectively reduce organizational redundancy and increase our margins.”
Quipt’s customer base increased 56 percent year over year to 155,434 unique patients served in Q1 2024, up from 99,420 unique patients during the same period a year ago.
Overall, Quipt reported a $600,000 loss for its fiscal first quarter of 2024.
“As the population ages, there is an increasing need for in-home medical equipment and services, which presents a very viable long-term growth opportunity,” Crawford said. “Furthermore, a great deal of work is being done to ensure that patients receive care at home whenever possible.”
Striking while the iron is hot
Quipt is targeting 10 percent organic growth, but strategic M&A is certainly part of its big-picture growth strategy as well.
In fact, since 2018, the company has successfully integrated 19 transactions, collectively totaling more than $150 million in revenue.
“We focus on respiratory businesses that are well-suited to be successfully integrated into our scalable infrastructure,” Crawford continued.
Broadly, Quipt is focused on acquisition opportunities that expand both its payer base and graphic reach, he added.
“Because of our strong balance sheet, we will be able to seize opportunities to expand our patient base, revenue, EBITDA and geographic reach when they arise,” the CEO said. “We will remain disciplined with our capital allocation approach and believe this to be one of the cornerstones of our ongoing financial success.”
In terms of revenue and adjusted EBITDA, Quipt has doubled the size of its business since 2019.
