Viemed Healthcare, Inc. (VMD) Bundle
A Brief History of Viemed Healthcare, Inc.
Corporate Overview
Viemed Healthcare, Inc. is a leading provider of home respiratory services and equipment in North America. As of September 30, 2024, the company has expanded its operations significantly, focusing on ventilator rentals and other respiratory offerings.
Financial Performance
For the nine months ended September 30, 2024, Viemed reported total revenue of $163.6 million, a 23.7% increase from $132.3 million in the same period of 2023. The revenue growth was driven primarily by an increase in ventilator rental revenue.
| Metric | 2024 | 2023 | Change |
|---|---|---|---|
| Total Revenue | $163.6 million | $132.3 million | +23.7% |
| Cost of Revenue | $66.5 million | $51.6 million | +28.9% |
| Gross Profit | $97.1 million | $80.7 million | +20.3% |
| Net Income | $6.9 million | $6.8 million | +3.2% |
Revenue Breakdown
The revenue composition for the nine months ended September 30, 2024, was as follows:
| Revenue Source | Amount | % of Total Revenue |
|---|---|---|
| Ventilator Rentals | $91.4 million | 55.9% |
| Other Home Medical Equipment Rentals | $35.6 million | 21.8% |
| Equipment and Supply Sales | $22.0 million | 13.4% |
| Service Revenues | $14.6 million | 8.9% |
Operational Metrics
As of September 30, 2024, Viemed had approximately 11,374 active ventilator patients, reflecting the company's growth in patient volume and demand for its services.
Expenses Overview
For the nine months ended September 30, 2024, Viemed's operating expenses were as follows:
| Expense Type | Amount | % of Total Revenue |
|---|---|---|
| Selling, General and Administrative | $78.0 million | 47.7% |
| Research and Development | $2.3 million | 1.4% |
| Stock-based Compensation | $4.8 million | 2.9% |
| Depreciation and Amortization | $1.1 million | 0.7% |
Cash Flow Analysis
For the nine months ended September 30, 2024, Viemed reported the following cash flow metrics:
| Cash Flow Type | Amount |
|---|---|
| Net Cash Provided by Operating Activities | $24.1 million |
| Net Cash Used in Investing Activities | ($21.5 million) |
| Net Cash Used in Financing Activities | ($4.1 million) |
Liquidity Position
As of September 30, 2024, Viemed had cash and cash equivalents totaling $11.3 million, a decrease from $12.8 million at the end of 2023. The company’s principal source of liquidity remains its operating cash flow.
Stock Performance
The stock performance of Viemed as of September 30, 2024, indicated a closing price of $7.33 per share, compared to $7.85 at the end of 2023.
A Who Owns Viemed Healthcare, Inc. (VMD)
Ownership Structure
As of 2024, Viemed Healthcare, Inc. (VMD) has a diverse ownership structure comprising institutional investors, individual shareholders, and company insiders. The significant ownership percentages are as follows:
| Owner Type | Percentage Ownership |
|---|---|
| Institutional Investors | 53.4% |
| Insider Ownership | 11.7% |
| Individual Shareholders | 34.9% |
Major Institutional Shareholders
The following table lists the major institutional shareholders of Viemed Healthcare, Inc. with their respective ownership stakes as of 2024:
| Institution | Ownership Percentage | Shares Owned |
|---|---|---|
| The Vanguard Group, Inc. | 10.5% | 4,070,000 |
| BlackRock, Inc. | 9.2% | 3,530,000 |
| State Street Corporation | 7.8% | 2,950,000 |
| Fidelity Investments | 6.0% | 2,290,000 |
| Invesco Ltd. | 5.7% | 2,180,000 |
Insider Ownership
Key insiders hold a notable portion of Viemed's shares. The following table outlines the top insiders and their respective ownership:
| Name | Position | Shares Owned | Ownership Percentage |
|---|---|---|---|
| Casey Hoyt | CEO | 1,120,000 | 2.9% |
| Gregory B. Hargis | CFO | 780,000 | 2.0% |
| Jennifer G. Stokes | COO | 600,000 | 1.5% |
Recent Shareholder Changes
Over the past year, there have been significant changes in the shareholder composition. The following table summarizes these changes:
| Change Type | Details | Impact on Ownership |
|---|---|---|
| Institutional Buying | Increased holdings by Vanguard and BlackRock | +3.4% institutional ownership |
| Insider Selling | Insider sales of 200,000 shares by CEO | -0.5% insider ownership |
| New Institutional Buyer | New positions taken by Invesco | +1.5% institutional ownership |
Stock Performance and Market Capitalization
As of September 30, 2024, Viemed Healthcare's stock performance and market capitalization are as follows:
| Metric | Value |
|---|---|
| Current Stock Price | $7.33 |
| Market Capitalization | $285 million |
| 52-Week High | $8.50 |
| 52-Week Low | $5.50 |
| Average Daily Trading Volume | 150,000 shares |
Conclusion on Ownership Dynamics
The ownership dynamics of Viemed Healthcare, Inc. reflect a robust mix of institutional and individual investors, alongside significant insider participation, indicating strong confidence in the company's strategic direction and growth potential.
Viemed Healthcare, Inc. (VMD) Mission Statement
Viemed Healthcare, Inc. focuses on providing innovative solutions for the management of respiratory diseases through in-home therapy. The company's mission is to enhance the quality of life for patients suffering from respiratory conditions while reducing the overall cost of care for payors. Viemed aims to solidify its position as one of the largest providers of in-home therapy in the United States by leveraging its extensive network of services, which includes ventilator rentals, oxygen therapy, and healthcare staffing.
Core Objectives
- Provide high-quality respiratory care in the home setting.
- Reduce hospital readmissions through effective home management.
- Expand service offerings and geographical reach.
- Utilize technology to improve patient outcomes and operational efficiency.
Financial Overview
As of September 30, 2024, Viemed Healthcare reported a total revenue of $163.56 million for the nine months ended, reflecting a 23.7% increase compared to the same period in 2023. The company's net income for the same period was $7.0 million, marking a 3.2% increase. Below is a table summarizing key financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Total Revenue | $58.00 million | $49.40 million | +17.4% |
| Net Income | $3.90 million | $2.92 million | +33.8% |
| Gross Profit | $34.37 million | $30.56 million | +12.5% |
| Research and Development Expense | $0.76 million | $0.59 million | +27.7% |
| Cash and Cash Equivalents | $11.35 million | $10.08 million | +12.5% |
Market Position and Strategy
Viemed's market strategy is centered around expanding its service areas while enhancing operational efficiencies. The company primarily generates revenue through ventilator rentals, which accounted for 54.8% of total revenue in Q3 2024. The growth in revenue is attributed to increased patient volumes and demand for home-based respiratory care. Viemed operates in all 50 states and aims to strengthen its workforce by employing additional licensed Respiratory Therapists (RTs).
Operational Metrics
As of September 30, 2024, Viemed had approximately 11,374 active ventilator patients, representing a steady increase in its patient base. The company’s focus on home-based treatment aligns with broader trends in healthcare, emphasizing cost-effective solutions and improved patient care.
Financial Performance Indicators
The following table outlines Viemed's financial performance indicators for the nine months ended September 30, 2024, compared to the previous year:
| Indicator | 2024 | 2023 | Change |
|---|---|---|---|
| Total Revenue | $163.56 million | $132.27 million | +23.7% |
| Cost of Revenue | $66.50 million | $51.60 million | +28.9% |
| Gross Profit | $97.06 million | $80.67 million | +20.3% |
| Selling, General & Administrative Expenses | $77.99 million | $63.98 million | +21.9% |
| Net Income | $7.00 million | $6.80 million | +3.2% |
How Viemed Healthcare, Inc. (VMD) Works
Business Model
Viemed Healthcare, Inc. provides an array of home medical equipment and services, specializing in post-acute respiratory care in the United States. The company focuses on organic growth to solidify its position as one of the largest providers of in-home therapy for patients with respiratory diseases.
The primary revenue stream comes from the rental of non-invasive and invasive ventilators, which accounted for 54.8% of total revenue for the three months ended September 30, 2024. The company also offers respiratory disease management, oxygen therapy, and associated supplies.
Financial Performance
For the three months ended September 30, 2024, Viemed reported total revenue of $58.0 million, a 17.4% increase from $49.4 million in the same period of 2023. The growth was primarily driven by:
- Ventilator rental revenue increased by $3.5 million (or 12.2%).
- Service revenue increased by $3.1 million (or 140.3%).
- Rental revenue from other Home Medical Equipment (HME) rose by $1.3 million (or 12.1%).
- Equipment and supply sales increased by $0.7 million (or 9.0%).
Revenue Breakdown
| Revenue Source | Q3 2024 ($MM) | Q3 2023 ($MM) | % Change |
|---|---|---|---|
| Ventilator Rentals | 31.8 | 28.3 | 12.2% |
| Other HME Rentals | 12.5 | 11.1 | 12.1% |
| Equipment and Supply Sales | 8.4 | 7.7 | 9.0% |
| Service Revenue | 5.3 | 2.2 | 140.3% |
| Total Revenue | 58.0 | 49.4 | 17.4% |
Cost of Revenue and Gross Profit
For the three months ended September 30, 2024, the cost of revenue totaled $23.6 million, an increase of $4.8 million (or 25.4%) from the comparable period in 2023. The gross profit margin decreased from approximately 61.9% to 59.3%.
Net Income
Net income for the three months ended September 30, 2024, was $3.9 million, a 33.8% increase from $2.9 million in the same period of 2023. The net income as a percentage of revenue improved from 5.9% to 6.7%.
Operating Expenses
Selling, general, and administrative expenses totaled $26.7 million for Q3 2024, an increase of $3.0 million (or 12.8%) from Q3 2023. Research and development expenses amounted to $0.8 million, reflecting a 27.7% increase.
Employee Metrics
As of September 30, 2024, Viemed employed 1,142 individuals, with 398 licensed respiratory therapists, representing approximately 35% of the total workforce. Employee compensation expenses increased by $10.1 million (or 22%) year-over-year.
Liquidity and Cash Flow
Cash and cash equivalents totaled $11.3 million as of September 30, 2024. Net cash provided by operating activities during the nine months ended September 30, 2024 was $24.1 million, compared to $31.9 million in the same period of 2023.
Debt and Financing
As of September 30, 2024, total debt was $4.7 million, down from $6.9 million at the end of 2023. The company has access to the 2022 Senior Credit Facilities with a total borrowing capacity of $60 million.
Conclusion on Financial Outlook
The company anticipates continued growth in both revenue and patient volumes, supported by its expansion strategies and demand for respiratory services. As of September 30, 2024, the annual estimated effective tax rate was 30.3%.
How Viemed Healthcare, Inc. (VMD) Makes Money
Revenue Streams
Viemed Healthcare, Inc. generates revenue primarily through the following streams:
- Ventilator Rentals: This includes both non-invasive and invasive ventilators, which accounted for 54.8% of total revenue for Q3 2024.
- Other Home Medical Equipment (HME) Rentals: Contributing 21.5% of total revenue in Q3 2024.
- Equipment and Supply Sales: Representing 14.6% of total revenue for Q3 2024.
- Service Revenues: This includes healthcare staffing and support services, which made up 9.2% of total revenue in Q3 2024.
Financial Performance Overview
For the three months ended September 30, 2024, Viemed reported total revenues of $58.0 million, an increase of $8.6 million (or 17.4%) compared to the same period in 2023. The breakdown of revenue for Q3 2024 is as follows:
| Revenue Source | Q3 2024 Revenue (USD thousands) | % of Total Revenue | Q3 2023 Revenue (USD thousands) | % Change |
|---|---|---|---|---|
| Ventilator Rentals | 31,772 | 54.8% | 28,322 | 12.2% |
| Other HME Rentals | 12,459 | 21.5% | 11,119 | 12.1% |
| Equipment and Supply Sales | 8,440 | 14.6% | 7,742 | 9.0% |
| Service Revenues | 5,333 | 9.2% | 2,219 | 140.3% |
| Total Revenue | 58,004 | 100.0% | 49,402 | 17.4% |
Cost Structure and Profitability
For the same period, the cost of revenue totaled $23.6 million, resulting in a gross profit of $34.4 million, yielding a gross profit margin of approximately 59.3%. This reflects a decrease from 61.9% in Q3 2023, primarily due to changes in revenue mix and service diversification.
For the nine months ended September 30, 2024, Viemed reported total revenues of $163.6 million, with the following revenue breakdown:
| Revenue Source | 9M 2024 Revenue (USD thousands) | % of Total Revenue | 9M 2023 Revenue (USD thousands) | % Change |
|---|---|---|---|---|
| Ventilator Rentals | 91,404 | 55.9% | 79,181 | 15.4% |
| Other HME Rentals | 35,604 | 21.8% | 26,441 | 34.7% |
| Equipment and Supply Sales | 21,956 | 13.4% | 19,287 | 13.8% |
| Service Revenues | 14,598 | 8.9% | 7,360 | 98.3% |
| Total Revenue | 163,562 | 100.0% | 132,269 | 23.7% |
Net Income and Expenses
Net income for the three months ended September 30, 2024, was $3.9 million, representing a 6.7% margin. For the nine months ended September 30, 2024, net income was $7.0 million, reflecting a margin decrease to 4.3% due to increased operational costs and impairments.
| Measure | Q3 2024 (USD thousands) | Q3 2023 (USD thousands) | % Change |
|---|---|---|---|
| Net Income | 3,905 | 2,919 | 33.8% |
| Net Income Margin | 6.7% | 5.9% | 1.0% |
Operational Efficiency
Viemed's selling, general and administrative expenses totaled $26.7 million for Q3 2024, representing 46.0% of total revenue, an improvement compared to 47.9% in Q3 2023. This reduction indicates better operational efficiency as the company scales its services.
Market Trends and Future Growth
The healthcare market, particularly in home medical equipment, is experiencing growth driven by an aging population and increasing chronic diseases. Analysts project a 6% CAGR for respiratory devices, providing a favorable outlook for Viemed's core business areas.
As of September 30, 2024, Viemed employed 398 licensed respiratory therapists, aiming to enhance service delivery and patient outcomes while expanding into new territories. The company continues to focus on increasing its active ventilator patient base and diversifying its service offerings, positioning itself for sustained growth in the future.
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Resources:
- Viemed Healthcare, Inc. (VMD) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Viemed Healthcare, Inc. (VMD)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Viemed Healthcare, Inc. (VMD)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.