Quipt Home Medical Corp.

Thank you for standing by. This is the conference operator. Welcome to the third quarter fiscal 2020 earnings and corporate update conference call for ProTech Home Medical. As a reminder, all participants are in listen-only mode and the conference is being recorded. After the presentation, there will be an opportunity for analysts to ask questions. To join the question queue, you may press star then one on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star and zero. We remind you that the remarks today will include forward-looking statements that are subject to important risks and uncertainties. For more information on these risks and uncertainties, please see the reader advisory at the bottom of the company's results news release, as well as the MD&A, which you can find on the website and on CDAR. The company's actual performance could differ materially from these statements. At this point, I'd like to turn the conference over to Chairman and Chief Executive Officer Greg Crawford.

Thank you, Operator, and thank you all for joining us today on the call. My name is Greg Crawford, and I'm the Chairman and Chief Executive Officer of ProTech Home Medical. Joining me today is Hardik Mehta, our Chief Financial Officer. A brief introduction on ProTech Home Medical. ProTech is a national leader in the home medical equipment industry, specializing in end-to-end respiratory care, power mobility, sleep, and other home healthcare solutions from 42 locations in 10 states across the Midwest and East Coast regions, completing hundreds of thousands of deliveries each year to more than 85,000 longstanding patients. Before I begin discussing our record-breaking third quarter results, Let me first take a moment to thank and applaud our incredibly talented and dedicated team members, many of which continue their heroic efforts on the front lines every day serving our patients with the highest level of care during these most challenging times. Since the beginning of the COVID-19 pandemic, we have prioritized the safety and well-being of our team members and our patients. It is this incredible efforts of these individuals that have enabled Protech to assist in relieving the strain placed on the traditional healthcare system by helping to move non-COVID-19 related patients out of the hospital system and into the home. I can unequivocally say that Protech would not be in the strongest position in the history of the company without these hardworking individuals and most certainly, we would not be able to share with you these record-breaking results. On this call, I will outline our core business, which continues to be robust, review our continued organizational progress with a focus on our record-breaking quarter, and provide you with our updated outlook for the remainder of 2020. As our results show, we have made tremendous progress in the third quarter, including exceeding our previously stated objective, of annualized run rate revenue of $100 million, breaching a 21% adjusted EBITDA margin level for the first time, and bolstering our balance sheet dramatically with the closing of a $31.8 million bought deal capital raise in which myself and independent director Mark Greenberg added to our respective shareholdings. We are extremely pleased to join our fellow shareholders and believe this is a testament to how we feel about the future of ProTech. The successful capital raise paves the way for us to accelerate our growth trajectory with the strongest balance sheet in our history. And as such, we are aggressively ramping up our M&A efforts and expect to be busy on this front over the near and medium term as we look to further our long-term acquisition strategy. With the improving organic growth being derived from our first-rate infrastructure and extraordinary financial flexibility, we are confident the future is very bright for ProTech, and we will not be stagnant in capitalizing on the tailwinds propelling our industry. With that background, I'd like to hand the call over to Hardik to discuss our third quarter fiscal 2020 financial results.

Thanks, Greg. Yesterday evening, we announced our third quarter financial results for fiscal 2020 for the three months and nine months ended June 30, 2020. In reviewing the third quarter fiscal 2020 numbers, please note that all financial values are in Canadian dollars and the full results are available on CDAR. Please note that all the numbers for three months and nine months ended June 2019 have been adjusted for PHM Inc. Divestier 2020. and are reported for continuing operations only. Here are some key highlights. In the third quarter fiscal 2020, ProTec completed 57,551 setups or deliveries compared to 52,007 in the corresponding period last year, an increase of 11%. In the third quarter fiscal 2020, ProTec completed 14,436 respiratory resupply setups or deliveries compared to 11,034 in the corresponding period last year, an increase of 31%. The company generated revenue of $25.9 million in third quarter fiscal 2020, up 28% from third quarter fiscal 2019, and up 7.3% from second quarter fiscal 2020, majority of which was organic. During this quarter, we also reached $100 million annual revenue run rate. Gross profit for the third quarter of fiscal 2020 was approximately 18.4 million or 71% of revenue as compared to 14.1 million or 70% of revenue for the same period in 2019. The gross margin percentage improvement during the period was primarily due to better inventory management. SG&A for third quarter of fiscal 2020 was 49.8% compared to second quarter of fiscal 2020 of 52.9%, representing a 3.1% decrease quarter over quarter. This highlights our ability to deliver additional expanded margins on incremental revenue growth. Adjusted EBITDA for the third quarter of fiscal 2020 was 5.5 million compared to 3.8 million for the third quarter of fiscal 2019, representing a 47% increase year over year. Adjusted EBITDA margin for the third quarter of fiscal 2020 increased to 21.4% compared to 18.7% for the third quarter of 2019. At the end of third quarter fiscal 2020, cash balance was $44.7 million compared to $12.8 million at fiscal year end 2019. On June 29, 2020, the company closed a $31.8 million short-form prospectus offering and concurrent private placements. Cash flow from operations for the nine months ending June 2020 was $19.4 million compared to negative $1.7 million in the corresponding period ending June 2019. Current assets totaled more than $66.9 million compared to $30 million in net short-term liabilities. demonstrating continuing strength in our liquidity. On the heels of financing, our balance sheet is the strongest in the history of our company, and we are positioned to be aggressive with our organic and inorganic initiatives. Our focus remains on accelerating revenue growth, process improvement, and cost rationalization. To that point, on August 11th, we announced the execution of a non-binding LOI to acquire a leader in the respiratory home care services industry in the Midwestern region of United States. The target will enhance our presence in the Midwest, including adding a new market and will increase our active patient count by over 3,000. The diversification that the target provides, along with their regional dominance, will prove to be of significant value to our portfolio. The target focuses on all aspects of home respiratory equipment with a detailed focus on PAP, PAP resupply, and noninvasive therapy with a large ALS and COPD patient base. The target has great diversification amongst referral sources with no more than one referral source contributing 10%. It also has a very strong and diversified payer base with minimal Medicare exposure. Furthermore, the company has a long recurring revenue cycle which fits hand-in-hand with ProTech's business model. Additionally, we are now in a position to go after larger accretive transactions as compared to the size of our recent acquisitions that are designed to significantly add to our presence in a market we serve or potentially even open a new market entirely. In closing, we continue to see ample change widths at the company level from increased demand across the business, and we are picking up on a significant acceleration in the need for in-home care. This presents us with an incredible opportunity to seize market share, and we have all the tools needed to do so aggressively on a go-forward basis. Thank you, and with that update, I will turn the call back to Greg.