GREATER CINCINNATI HEALTH CARE FIRM DETAILS TURNAROUND RESULTS
Protech Home Medical Corp. of Northern Kentucky reported record growth in some areas for the recently ended fiscal year.
The company based in Wilder, Ky., which provides in-home monitoring and disease management services for patients, reported $20.3 million in revenue for the fourth quarter of the year that ended Sept. 30.
Net income was nearly $1.4 million for the quarter, while Protech (TSXV: PTQ) posted a net loss of more than $6.9 million for the fiscal year.
Adjusted earnings before interest, tax, depreciation and amortization for the fiscal year were $12.6 million compared with $1 million for the fiscal year that ended in September 2017. That represented an increase of more than 1,100 percent.
Protech posted all-time company record adjusted EBITDA margins of $5.2 million, or 26 percent, for the recently ended fourth quarter.
Adjusted EBITDA margins for the recently ended fiscal year were 16.3 percent compared with 1.4 percent for the previous year. That equated to an increase of more than 1,060 percent.
As a result of establishing a centralized billing platform, the company’s bad debt expense was reduced to $5.2 million for the recently ended year compared with $15.9 million in the year before.
Protech reported a cash balance of $4.3 million as the year ended in September 2018, an increase of 27 percent from the previous fiscal year.
Resupply deliveries increased by more than 36 percent in the recently ended fiscal year to 48,357.
Protech reported 6 percent organic growth in its patient base.
“Over the course of the one year since our current management team has been in place, we have achieved significantly improved results – culminating in an increase in revenue, an astronomical and dramatic increase in adjusted EBITDA, and perhaps most significantly, a fantastic and steady improvement in our adjusted EBITDA margins for the last four quarters,” CEO Greg Crawford said.
“We have managed to achieve these results while also building on all aspects of our business, including an increase in the number of deliveries, shipments and set-ups,” Crawford said. “Finally, we have maintained a relatively conservative balance sheet that has positioned us for continued growth on a go-forward basis. ...
“I would like to thank all of our shareholders that have supported us during this year of transition and express my confidence in our continued financial success with the continued implementation of our revised corporate strategy that incorporates technology, organic growth and strategic acquisitions,” Crawford said.
I reported earlier this month that Protech had acquired Central Oxygen Inc. of Indiana and Riverside Medical Inc. of Tennessee.
In addition to showcasing its operational turnaround, Protech made strides in improving financial reporting and building a robust balance sheet, CFO Hardik Mehta said.
“Unlike recent years, there were no goodwill impairment charges or accounts receivable write-downs this year,” Mehta said. “I am extremely pleased to report that the auditors have removed the non-qualified going concern comment from the company’s previous years audited financials.”