Protech Home Medical

  • Simplifying the Patient Experience!

  • 859-300-6455

    [email protected]

  • 1019 Town Drive

    Wilder, KY 41076


  •   5:00PM EST


Cincinnati, Ohio – May 19, 2020 – Protech Home Medical Corp. (“Protech” or the “Company”) (TSXV: PTQ), a healthcare services company with operations in the U.S., today announced its second quarter fiscal 2020 financial results and operational highlights for the period ended March 31, 2020. 

Protech will host its Quarterly Earnings Conference Call on Wednesday, May 20, 2020 at 10:00 a.m. (EDT).
The dial-in number is 1 (800) 319-4610 or 1 (604) 638-5340. 

COVID-19 Update:

     ◼Protech was deemed an essential business by the U.S. government and has operated effectively during the COVID-19 pandemic serving our over 85,000 active patients with exceptional service while managing increased demand from over 17,000 referring physicians.
     ◼The Company has taken the necessary steps to ensure the health and safety of our employees by providing them with the appropriate personal protective equipment for patient-facing employees.
     ◼The Company’s supply chain for critical equipment has remained strong, and we continued to opportunistically build inventory to meet the increases in demand, particularly for ventilators and home oxygen equipment.
     ◼The Company has assisted in relieving the strain placed on the traditional healthcare system by helping to transfer non-COVID-19 related patients out of the hospital system and into the home, thereby freeing up beds to manage the large influx of patients that have contracted the virus.
     ◼With strong liquidity, a resilient business model, and ample tailwinds accelerating growth in the home healthcare industry, the Company is confident in its ability to execute on its short and long-term business objectives.

Financial Highlights:

     ◼Revenue for Q2 2020 was $24.1 million compared to $20.8 million for Q2 2019, representing a 16% increase in revenue year-over-year and 4% increase quarter over quarter; most of which was organic.
     ◼Adjusted EBITDA for Q2 2020 was $4.9 million (20.4% margin), compared to $3.8 million (18.2% margin) for Q2 2019, representing a 30% increase year-over-year.
     ◼Gross margin in Q2 2020 was 73%, up from 71% in Q2 2019 as a result of ongoing margin enhancement efforts, including patient intake and distribution optimization.
     ◼Net income for Q2 2020 was $1.6 million, compared to a loss of $0.5 million for Q2 2019, representing a 402%increase year-over-year.
     ◼Cash flow from operations was $6.0 million for the six months ended March 31, 2020 compared to $4.1 million for the six months ended March 31, 2019.
     ◼The Company had $6.2 million of cash on hand as at March 31, 2020, compared to $12.8 million as of fiscal year ended September 2019. The uses of cash for the six month period ended March 31, 2020 is approximately broken down as follows; $4.3 million related to acquisitions, $1 million towards net paydown of equipment leases and about $1.4 million towards working capital, which includes a significant increase in Inventory to plan, prepare and respond to the pandemic.

Operational Highlights:

     ◼The Company’s customer base increased 28% year-over-year from 31,464 unique patients served in Q2 2019 to 40,372 unique patients in Q2 2020.
     ◼Through the Company’s continued use of technology and centralized intake processes, respiratory resupply set-ups and/or deliveries increased to 13,980 for the three months ended March 31, 2020, compared to 11,641 for the same period ended March 31, 2019, an increase of 20%.
     ◼Compared to Q2 2019, resupply set-ups increased by 20% and total set-up/deliveries increased by 24%.
     ◼Compared to 51,676 unique set-ups/deliveries in Q2 2019, the Company completed 63,956 unique set-ups/deliveries in Q2 2020, an increase of 24%.
     ◼The Company continues to expand its sales reach across ten U.S. states by the addition of experienced sales personnel.
     ◼The Company has completed the integration of its two most recent acquisitions, Acadia Medical and Cooley Medical, and has started to realize synergies and other benefits from the integration.

Subsequent Events to the three months ended March 31, 2020:

     ◼The Company received over $7.5 million of payments related to two separate provisions of the U.S. Coronavirus Aid, Relief and Economic Security (CARES) Act, as announced by the Company on April 20, 2020.
     ◼CMS, the Centers for Medicare and Medicaid Services, has removed non-invasive ventilators from the 2021 Competitive Bidding Program, as announced by the Company on April 13, 2020. The removal is designed to ensure greater patient access for at-home ventilator therapy, which represents 17% of the Company’s revenue as of fiscal year end 2019.

Management Commentary: 

“These second quarter fiscal 2020 results showcase the resiliency of our business model, and I could not be prouder of our whole team,” said CEO and Chairman Greg Crawford. “In the midst of the COVID-19 pandemic, the emphasis on the need for in-home healthcare has been magnified, and robust industry tailwinds have developed as a result. We believe this pandemic has underscored the importance of Protech’s mission going into the future, and as a dynamic home healthcare provider, we are ready to seize on these industry forces. These financial results are affirmation of the strength and resilience of our operations during this crisis, as we continue to serve the escalating needs of our patients and of our referring physicians while ensuring the protection of our frontline employees. 

As these results illustrate, we have continued to demonstrate exceptional revenue and Adjusted EBITDA growth, and I am particularly pleased with the organic growth we are seeing. With an extremely healthy balance sheet, continued margin expansion and improving cash flows, our focus for 2020 is to build on organic growth initiatives and be ready to pull the trigger in the event the right acquisition at the right consideration presents itself. As always, we will remain patient as it relates to our acquisition approach. I’d like to thank the entire Protech team for their tireless efforts and stakeholders for all of their continued support.” 

Chief Financial Officer, Hardik Mehta added, “We are extremely pleased that our Adjusted EBITDA margin has breached the 20% level and are confident in this favorable trend. We continue to significantly outpace industry growth rates from a top-line perspective and continue to focus our attention on growing scale through both organic and inorganic opportunities. Additionally, we remain laser focused on improving profitability across the business through our stated three-pronged growth strategy. The removal of non-invasive ventilators from the 2021 Competitive Bidding Program provides us with an additional level of comfort as it relates to the margin outlook for that respective piece of equipment. Lastly, we anticipate more favorable deal terms on the acquisition front to become available as a result of COVID-19, and as Greg mentioned, we will not hesitate to pull the trigger when appropriate.” 

The financial statements of the Company for the three and six months ended March 31, 2020 and 2019 and accompanying Management Discussion & Analysis (MD&A) are available at