Quipt Home Medical Corp.

Thank you for standing by. This is the conference operator. Welcome to the fourth quarter and audited full year 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 1 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 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 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 would like to turn the call 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. For those of you on the call who may be new to ProTech, let me provide a brief introduction. ProTech Home Medical is a national leader in the home medical equipment industry, specializing in end-to-end respiratory care. ProTech's interconnected healthcare platform leverages a sophisticated technology infrastructure and strong regional distribution footprint to streamline all phases of the delivery process. Coupled with a high touch service model, ongoing patient education in the home, and through our telehealth platform, ProTech is able to operate a successful patient-centric ecosystem throughout the organization. This white glove approach resonates with any physician seeking to improve clinical efficiency without sacrificing patient care and has been instrumental in fueling physician referral recruitment for ProTech over the last several years. ProTech operates out of 49 locations in 11 states across the Midwest, Southeast, and east coast region completing hundreds of thousands of deliveries each year to more than 120 000 active patients with over 17 000 referring physicians on this call i will provide a regulatory update outline our core business which continues to be very robust review our continued organizational progress in 2020 with a focus on our record-breaking full year results and provide you with our recently updated outlook for 2021. Before I begin discussing what was truly a historic year for ProTech, let me first take a moment to provide my utmost gratitude for the dedication, valor, and professionalism displayed by our entire team consisting of over 400 healthcare professionals during a challenging 2020. Our team continues to focus on providing a better quality of life for our patients and we continue to prioritize the safety and well-being of our team members and our patients. It is the incredible efforts of these individuals that have put ProTech in the strongest financial position to date with an incredible foundation to build upon for 2021. On the regulatory front, in late October, the CMS, Centers for Medicare and Medicaid Services, canceled the 2021 competitive bidding program for 13 product categories. The cancellation of this program provided ProTech a clear margin outlook across our product mix and ensured our patient-based stability. The decision will help to ensure that there are no unnecessary barriers to the quality of care for patients, such as access to home respiratory products, durable medical equipment, and other needed supplies. It is evident now more than ever before that home-based care for the growing population of elderly Americans is crucial, and reducing the burden on hospitals, nursing homes, and other senior living facilities is imperative to the healthcare ecosystem. Additionally, the CMS stated that the program did not achieve the expected savings, which we believe means the reimbursement rates have likely neared a floor and there is no Medicare reimbursement rate cut risk for the foreseeable future. As our results show, momentum continued in the fourth quarter with ProTech hitting $5.9 million in adjusted EBITDA and breaching a 22% adjusted EBITDA margin. We have seen our business in fiscal Q2021 remain robust and continue to be in a position to accelerate our growth trajectory 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 Harik to discuss our fourth quarter audited full-year 2020 financial results.

Thanks, Greg. Before I begin, I would like to take a moment to comment on the delay we experienced in filing our fiscal year-end financials at the end of last week, which we were extremely disappointed in doing. Rest assured, we have commenced discussions with our auditors to better understand the nature of their delay in ensuring that it does not happen again. We sincerely apologize for the inconvenience this caused to all our investors and the many research analysts that follow our company. Yesterday, we announced our fourth quarter and audited full year financial results for fiscal 2020 for three months and 12 months ended September 30, 2020. In reviewing the fourth quarter and full year fiscal 2020 numbers, please note that all financial values are in Canadian dollars and the full results are available on CDAR. Here are some key highlights. In the fourth quarter fiscal 2020, ProTec completed 68,909 setups or deliveries compared to 53,386 in the corresponding period last year, an increase of 29%. In the fourth quarter fiscal 2020, ProTec completed 19,613 respiratory resupply setups or deliveries compared to 12,727 in the corresponding period last year, an increase of 54%. The revenue for Q4 2020 was $25 million compared to $19.5 million for Q4 2019, representing a 28% increase in revenue year-over-year. Compared to Q3 2020, the company experienced strong organic growth of 3%, excluding new acquisitions in the fourth quarter. However, the reported Canadian dollar revenue amount was slightly offset by a weakening of the U.S. dollar relative to the Canadian dollar. Additionally, from the previously issued guidance, 1.6 million revenue was reclassified as other income as per the company's auditor request. Full year revenue for fiscal 2020 was 97.8 million compared to 80.9 million for the fiscal 2019, representing a 21% increase in revenue year-over-year. Adjusted EBITDA for fourth quarter of fiscal 2020 was 5.9 million compared to 3.5 million for the fourth quarter of fiscal 2019, representing a 69% increase year-over-year. Adjusted EBITDA margins for the fourth quarter of fiscal 2020 increased to 23.7% compared to 18% for the fourth quarter of 2019. Adjusted EBITDA for fiscal 2020 was 20.8 million compared to 14.8 million for the fiscal 2019, an increase of 41%. Adjusted margin increased to 21% for fiscal 2020 from 18.3% for fiscal 2019. Medical equipment additions for fiscal 2020 was at 11% of net revenue compared to 14% of fiscal 2019, highlighting our efforts to increase utilization and yield on our assets. Cash flow from operations for the 12 months ending September 2020 was $17.6 million compared to $11.1 million in the corresponding period ending September 2019. Current assets totaled more than $60.4 million compared to $32.5 million in net short-term liabilities, demonstrating continuing strength in our liquidity. At the end of fourth quarter fiscal 2020, cash balance was $38.9 million compared to $12.9 million at fiscal year in 2019. At the end of fourth quarter fiscal 2020, the company has undrawn revolving credit facility of 20 million USD. We continue to be active acquirers in 2020, ramping up our M&A program in the second half of the year after closing a successful board deal offering in June. We continue to be focused on business that offer turnkey respiratory solutions that symbiotically fit into the ProTech model where we can harness our existing infrastructure to effectively capture meaningful post-integration synergies. To that end, let me summarize our close acquisitions in 2020 and recently announced entrance into Florida. In August, we closed on health technology resources, a leader in respiratory home care in the state of Illinois with $5.5 million in revenue, adjusted EBITDA of approximately 1.65 million and over 3,000 patients. HDR presented us with the opportunity to pick up a new insurance contract for the state of Illinois, as well as allowed us to expand into Chicago area, an attractive metro hub where we have created numerous cross-selling and patient growth opportunities for us. We have completed the full integration of HDR at this time. In October, we closed on SleepWell, a leader in sleep services in the state of Georgia with significant penetration in southern eastern corridor of the region. SleepWell added 13 million in revenue, adjusted EBITDA of approximately 3.25 million, net income of approximately 2.5 million, five new locations, and over 15,000 patients. SleepWell is highly concentrated on sleep therapy with a very strong resupply business which we have begun to build upon by utilizing our technology-driven subscription resupply platform to foster additional revenue opportunities. Our model will serve to significantly reduce fulfillment errors and increase overall volumes. Our understanding and utilization of significant workflow processes will drive operational efficiencies, and we will be a major contributor to accelerate growth for the future. Currently, ProTech derives $25 million from its resupply subscription model and anticipates that growing to over 30 million with SleepWell fully integrated. At this point, we are near full integration of SleepWell. As we have moved into 2021, we have remained active as indicated by the recent closing announcement of Mayhew Medical Equipment. Mayhew represents our entrance into Florida and will begin to build our presence in this new geography by organically elaborating our existing infrastructure and looking for additional synergistic opportunities. Mayo has revenue of $7 million and $1.2 million of adjusted EBITDA. We will also boost our patient count by over 10,000 and add over 5,000 patients for each patient base to our subscription-based resupply program, which we expect would drive strong revenue synergies. Post-integration it is expected that Mayhew will increase pro-tax adjusted EBITDA by $1.4 to $1.8 million. In closing, we have an extremely active M&A pipeline and plan to continue to identify opportunities that deliver financial results in accordance with our disciplined capital allocation strategy, furthering our strategic goals, and are more confident than ever in our market position and our ability to quickly increase our scale. We continue to see ample tailwinds at the company level from increased demand from the business and we are picking up on a significant acceleration in the need for in-home care. This presents us with a significant 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.