Protech Home Medical

  • Simplifying the Patient Experience!

  • 859-300-6455

    investorinfo@myphm.com

  • 1019 Town Drive

    Wilder, KY 41076

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PROTECH HOME MEDICAL REPORTS SOLID THIRD QUARTER FISCAL 2019 FINANCIAL RESULTS. POSTS REVENUE GROWTH OF 7.1% AND ADJUSTED EBITDA GROWTH OF 7.8%

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Cincinnati, Ohio – August 19, 2019 – Protech Home Medical Corp. (the “Company”) (TSXV: PTQ), a healthcare services company with operations in the U.S., today announced its third quarter financial results and operational highlights. These results pertain to the three- and nine-month periods ended June 30, 2019.

Protech will host its Quarterly Earnings Conference Call on Tuesday August 20, 2019 at 10.00am EDT. The dial-in number is 1 (800) 319 4610 or 1 (604) 638 5340.

Financial highlights from the third fiscal quarter ended June 30, 2019:

 Revenue for the third quarter ended June 30, 2019 was $21.1 million, an increase of 7.1% compared to third quarter ended June 30, 2018.
 Revenue YTD for the third quarter ended June 30, 2019 of $64.7 million, representing a 13.6% increase in revenue year-over-year.
 Adjusted EBITDA for the third quarter ended June 30, 2019 was $3.9 million, an increase of 7.8% compared to third quarter ended June 30, 2018.
 Adjusted YTD EBITDA for the third quarter ended June 30, 2019 of $11.7 million, compared to $7.4 million for the same period ended June 30, 2018, an increase of 58.9%.
 Adjusted EBITDA margins for the third quarter ended June 30, 2019 of 18.4%, compared to 18.3% for the same period in prior year.
 Adjusted YTD EBITDA margins for the third quarter ended June 30, 2019 of 18.1%, compared to 12.9% for the same period in prior year, an increase of approximately 40%.
 A cash balance of $4.2 million as at June 30, 2019 compared to $4.4 million as of June 30, 2018.

Operational highlights from the quarter ended June 30, 2019:

 Through the Company’s continued use of technology and establishing its national fulfillment center, respiratory resupply set-ups or deliveries increased to 11,034 for the quarter ended June 30, 2019, compared to 10,245 for the same period ended June 30, 2018, an increase of 7.7%.
 The increase in three-month and nine-month revenue are due to the Company’s integration efforts to standardize regional processes and operations including various degrees: changing product focus, product mix, sales practices, billing practices, ordering practices, and recurring operational protocols as well as the acquisition of two businesses in Q1 of fiscal year 2019.
 The company continues to expand its sales reach across four US states by the addition of experienced sales personnel.

“I am pleased with our third quarter financial results,” said CEO and Chairman Greg Crawford. “We continue to achieve these solid financial results while also improving on all aspects of our business operations, including an increase in the number of patients served and respiratory resupply set-ups or deliveries. We continue to focus on achieving solid organic growth and on enhancing the profitability of our core operations. While we were obviously extremely disappointed in the cyberattack that our Company suffered on May 3, 2019, we were delighted to learn on June 26, 2019, the Asian court with jurisdiction over the bank account suspected to contain the stolen funds entered a judgement in the Company’s favour. Furthermore, on August 16, 2019, we announced that the Company had received a final Garnishee Order Absolute in Hong Kong which completes the legal hurdles surrounding the return of the stolen funds. Accordingly, our Company is expecting to receive C$8.6 million plus accrued interest within the next several weeks. Additionally, the Company has filed a claim under its insurance policy for costs related to this cyber-crime. While we are delighted with the result, I am cognizant of the distraction the fraud has had on our management team and we are very pleased to have all of this behind us so that we can now focus on continuing to improve upon the very significant financial results we have achieved over the past several quarters.”

Chief Financial Officer Hardik Mehta added, “We continue to grow our business at a solid rate. We are particularly pleased that our Adjusted EBITDA margin remains strong at 18% and our recurring revenues have increased over the last year. These metrics remain a focus internally from a financial perspective. We continue to be laser focused on revenue growth and increasing margins.”

The interim financial statements of the Company for the three and nine months ended June 30, 2019 and 2018 and accompanying Management's Discussion & Analysis (MD&A) are available at www.sedar.com.

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                                                      3 Mo.Ended          3 Mo.Ended           9 Mo.Ended           9 Mo.Ended
                                                      6/30/2019             6/30/2018               6/30/2019              6/30/2018
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# of Patients Serviced:                          34,308                   31,420                 103,290                  119,308
# of Equipment Setups/Deliveries:      62,170                   58,186                 183,673                  180,957
Respir. Resupply Setups/Deliveries:    11,034                   10,245                   33,954                    29,829
Adjusted EBITDA:                        $    3,882,000        $    3,601,000     $    11,704,000        $    7,365,000
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