Quipt Home Medical Corp.

Thank you for standing by. This is the conference operator. Welcome to the first quarter fiscal 2021 financial results conference call and webcast 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 the remarks today will include forward-looking statements that are subject to 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'd 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. Before we get started, I would like to take a moment to express my sheer enthusiasm for where Protech sits as an organization as of today. It is clear to me that we are in the strongest position we have ever been in operationally, financially, and in regard to our positioning within the industry. We have readied our infrastructure platform to allow us to aggressively lather on revenue in order to scale aggressively as we seek to become a national leader in respiratory care across the United States. For those of you new to our company, Protech specializes in end-to-end respiratory care, utilizing our interconnected healthcare platform, which leverages a sophisticated technology infrastructure and strong regional distribution footprint to streamline all phases of the delivery process. Known for our high touch service model, ongoing patient education in the home, and through our telehealth platform, we are able to operate a successful patient-centric ecosystem throughout the organization. The white glove approach we provide 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 regions, 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 outline our core business, which continues to be robust, with a focus on our record-breaking first quarter fiscal 2021 results and provide you with our recently updated outlook for 2021. Significant momentum continued across the business in the first quarter, driven by our over 500 healthcare professionals' commitment to excellence in driving superior patient care and compliance. Our team is focused 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. The robust infrastructure we have in place today is a direct testament to the hard work of our team to craft a patient-centric, scalable model which can be leveraged in new and existing markets. I am extremely excited to share we experienced a significant amount of growth in our recurring revenue base during the first quarter of 2021, with recurring revenue now representing over 75% of our overall revenue. This increase in our recurring revenue provides us further stability and consistency as we look to our growth outlook, business model, and financial reporting. It is also important to note This figure does not yet include a full quarter of Sleepwell, a business with a high recurring revenue base, and thus we expect this number to grow during the remainder of the year. One of the many tailwinds propelling our industry comes on the regulatory front. As many of you know on the call, in late October, CMS, the Centers for Medicare and Medicaid Services, canceled the 2021 competitive bidding program for 13 product categories. The cancellation of this program has provided us a clear margin outlook across our product mix and ensured our patient stability. The CMS stated that the program did not achieve the expected savings, which we believe the reimbursement rates have likely near the floor, and there is no Medicare reimbursement rate cut risk for the foreseeable future. We're proud with the results displayed in the first quarter. Once again, seeing the consistency of our model in full display with EBITDA margins remaining above 22%, we have seen our business in Q2 2021 remain extremely 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 team we have, first-rate infrastructure, and clear regulatory outlook, we are in an excellent position to add and integrate turnkey respiratory companies to our platform with ease. This gives us the opportunity to scale our model at a rapid pace, and we are truly at an inflection point which is poised for growth. Moreover, we have significant plans regarding our organic growth initiatives as we match our rapid growth with the right branding message across our organization to drive brand equity in the long term. Our company is transforming into a national home respiratory care provider in the US, and we must ensure our brand matches this transformation. We look forward to sharing our vision with investors in the near term. With that background, I'd like to hand the call over to Hardik to discuss our first quarter 2021 financial results.

Thanks, Greg. Yesterday evening, we announced our first quarter financial results for fiscal 2021, representing the three months ended December 31, 2020. In reviewing the first quarter fiscal 2021 numbers, please note that all financial values are now in U.S. dollars as compared to Canadian dollars, which was used in the past, and the full results are available on CDAR. This change in currency will allow our investors to make constant currency comparisons on a go-forward basis, thus removing the foreign exchange impact from our financial reporting. Here are some key highlights. In the first quarter fiscal 2021, ProTech completed 76,691 setups or deliveries compared to 62,999 in the corresponding period last year, an increase of 22%. In the first quarter fiscal 2021, ProTech completed 34,996 respiratory resupply setups or deliveries compared to 13,439 in the corresponding period last year, an increase of 160%. Not factoring any acquisitions, our same store resupply orders have grown more than 85% period over period, which showcases the results of our investments in our resupply program. The company generated revenue of $22.8 million in first quarter fiscal 2021, up 32% from first quarter fiscal 2020. Not factoring acquisitions, the organic growth period over period was 11%. The company's average recurring revenue over the last 12 months at the end of first quarter fiscal 2021 grew to 75% and is expected to further grow with addition of sleep wealth. Operating expense for the first quarter of fiscal 2021 was 50.7% compared to first quarter of fiscal 2020 of 56.2%, a substantial margin improvement resulting from scaling on our existing platform. Adjusted EBITDA for the first quarter of fiscal 2021 was 5.1 million compared to 3.3 million for the first quarter of fiscal 2020, representing a 53% increase year-over-year. Adjusted EBITDA margin for first quarter of fiscal 2021 increased to 22.5% compared to 19.4% for the first quarter of fiscal 2020. Cash flow from operations for the three months ending December 2020 was $2.8 million compared to $3.6 million in the corresponding period ending December 2019. The changes were primarily due to changes in working capital period over period. Current assets total more than $41.2 million compared to $29.5 million in net short-term liabilities, demonstrating continuing strength in our liquidity. At the end of first quarter fiscal 2021, cash balance was $23.6 million compared to $29.2 million at fiscal year-end 2020, primarily due to cash paid for acquisitions. At the end of first quarter fiscal 2021, the company has an undrawn revolving credit facility of 20 million USD. We have been very pleased with our operating performance through the first quarter and see similar trends into the second quarter. With favorable market conditions, infrastructure ready to scale quickly, and a flexible financial position, we are poised to have a very busy year as it relates to our M&A program and organic growth initiatives. Broadly speaking, our market known as the durable medical equipment or DME providers is estimated to provide $84 billion in 2028. This underlined by the fact that over 10,000 people in the U.S. will turn 65 every day for the next 15 years and is being further advanced by the need for at-home care to alleviate stress on the traditional healthcare system. Additionally, I am pleased to report we have recently completed our integration of SleepWell. As a reminder, SleepWell is a leader in sleep services in the state of Georgia with significant penetration in the southeastern corridor of the region. SleepWell added $10 million in revenue, $2.5 million in adjusted EBITDA, and added five new locations over 15,000 patients. In February, we acquired Mayhew Medical Equipment, a leader in respiratory home care services industry in northern Florida. Mayhew added over 10,000 active patients and serves as our entrance into Florida, our 11th U.S. state. Mayhew gives ProTag access to Jacksonville, an attractive metro hub in which it will leverage its existing infrastructure to create significant cross-selling and patient growth opportunities. We look forward to working on organic and inorganic opportunities to grow our presence in this attractive state. In closing, we have an extremely active M&M pipeline and plan to continue to identify larger revenue 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 ability to quickly increase our scale. With the cash on hand and an untapped 20 million credit facility, we strongly believe in our ability to add substantial revenue at a fast pace. Thank you, and with that update, I will turn the call back to Greg.