SmallCapFirm

Nasdaq Profile (QIPT) Shoots Green Early On Breaking Acquisition News, Read Immediately

April 19th

SCF Readers,

QIPT is making early green moves today.

One reason this may be occurring is QIPT just dropped huge acquisition news.

Check it out:

Quipt Accelerates National Expansion Efforts with Acquisition of Multi State Operator - Good Night Medical - Significantly Bolstering Commercial Contract Portfolio

Acquisition Adds $7.5Mn in Annualized Revenues, 20% Adjusted EBITDA Margin Post Integration, and Over 10,000 Active Patients

CINCINNATI, April 19, 2022 (GLOBE NEWSWIRE) -- Quipt Home Medical Corp. (“Quipt” or the “Company”) (NASDAQ:QIPT; TSXV:QIPT), a U.S. based leader in the home medical equipment industry, focused on end-to-end respiratory care, is very pleased to announce that it has acquired Good Night Medical, LLC (“Good Night Medical”), a business with operations across seven U.S. states, reporting unaudited trailing 12-month annual revenues of approximately $7.5Mn ‎and with anticipated Adjusted EBITDA (defined below) of $1.5Mn (20% margin) post integration. As a reminder all figures stated are in USD.

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Read the full article here.

With today's early green trend and hitting a high of $4.59 so far, QIPT has also moved above several lines of potential support. Those would be its:

• 5-Day Simple Moving Average (SMA)
• 20-Day SMA
• 5-Day Exponential Moving Average (EMA)
• 13-Day EMA

If potential support grows at those levels, it could become building blocks for an even bigger near term move.

Take a moment now to read my initial QIPT report below. In it you'll find that today's announced acquisition isn't their first for 2022. Plus, you'll find key analyst info and revenue news.

Get QIPT on your screen now.

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*Quipt Home Medical Corp. (Nasdaq: QIPT)*

Quipt Home Medical is a publicly traded healthcare services company that aims to specialize in improving the home management of chronic illness through the application of telehealth systems and streamlined, automated distribution making life easier for the patient and physician.

And right now, the company has 4 must-see potential catalysts including:

#1. Unreal Analyst Coverage And A Significant Target

#2. Revenue Growth In 2021 (And Q1 2022)

#3. Major 2022 Acquisition Announcement

#4. Another Low Float Profile

But more on those in a second...

QIPT Company Vision

Organic Growth.

The aging population alone in the U.S. will generate 5% to 6% revenue growth per year.

Technology Implementation.

Quipt’s technology platform seamlessly integrates all facets of the organization, providing valuable insight and actionable data to the company’s management team.

Acquisition Strategy.

The management of quipt has over 50 years of combined experience in healthcare management and acquisitions with over $500Mn in transactions.

Organic Growth

The Aging Population Alone In The U.S. Will Generate 5% To 6% Revenue Growth Per Year

Growing Organic Market

• 10,000 people are turning 65 every day for the next 15 years
• The number of Americans suffering from sleep apnea has increased by approximately 70% over the pas t25 years
• The utilization of oxygen among patients 65 and over continues to increase, especially among COPD patients which as a demographic has shown an increase of 15% in the last 5 years
• From 2015 to 2030, it is expected that the number of Americans with 3 or more chronic diseases will increase by 171% to over 83 million people

Diversified Product Offering

To capitalize on this organic growth, Quipt is focused on diversifying its product offering through the continuum of care to establish broad-based touch points inside of referring healthcare institutions and referring physicians.

Technology Implementation

Quipt's Technology Platform Seamlessly Integrates All Facets Of The Organization, Providing Actionable Insight

The strength of Quipt’s model lies in its commitment to technology. Over the last several, Quipt has spent significant fin-an-cial resources modernizing its existing systems to create a sophisticated, interconnected infrastructure that is:

• Completely technology driven
• Continually evolving
• Utilized system wide

Quipt’s keen understanding and utilization of significant workflow processes has driven extraordinary operational efficiencies and will be a major contributor to accelerated growth for the future, especially as it relates to the successful integration of recently acquired companies.

Sleepwell Program

Quipt will rely on this infrastructure to roll out the company’s Sleepwell re-supply program, which the Company expects will serve to significantly reduce fulfillment errors and increase overall volumes. Currently, Quipt derives $25Mn from its re-supply subscription model and anticipates that growing to over $30Mn with Sleepwell fully integrated.

Acquisition Strategy

A Relentless Focus On: Patience, Quality, & Post-Acquisition Integration

Quipt’s management team has over 100 years of combined experience in healthcare management and acquisitions with over $500Mn in transactions. As a result, Quipt has developed a specific set criteria to follow when evaluating any prospective acquisition; a strategy that has led the Quipt team to successfully closing and integrating 11 separate acquisitions in the past 4 years.

Though each acquisition is evaluated individually, Quipt has found their overall strategy to be effective, consistently re and applicable to acquisitions of any size. Further, the highly fragmented DME market allows Quipt to be patient and high' selective when deciding which opportunities to pursue.

3-Tiered Acquisition Strategy

1. <$5Mn revenue targets with the strategic goal of expanding our payer mix, insurance contracts and expanding our geographical footprint.

2. Heavily respiratory with revenue in the range of $5 to $20Mn, and consistent annual EBITDA margins above 10%.

3. Targeting substantially larger opportunities in terms of revenue, EBITDA, active patient base and geographical operating footprint.

More From The Company Presentation Here.

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Ready for more? Good. Here's 4 potential catalysts to know about QIPT this second.

#1. QIPT Potential Catalyst - Unreal Analyst Coverage And A Significant Target

Analysts have their eyes squarely focused on QIPT. Just check out a taste for yourself:

MarketBeat

Let's see why Raymond James has provided an "Outperform" rating and a $9.00 target.

From the report:

Following our review of Quipt Home Medical’s (QIPT-NASDAQ, OP2) 1Q22 earnings (see our note: 1Q22: In-line Rev., +EBITDA | This Stock Works in Risk-off Market: Rev., Profit, Org. Growth), we update our models, aligning with management guidance of CYE22 Rev. run-rate of $180-$190 mln, and Adj. EBITDA run-rate of $38-$43 mln.

QIPT stock has come off (29%) during the last 12 months (vs. NASDAQ down [0.2%]), dragged down by a broader sell-off in risk-on biotech and healthcare names (e.g. XBI down [49%] and UMDV down [34%]). In light of QIPT’s solid generation of Rev. and sustained >20% +EBITDA margins during the last few years, we reiterate that we view QIPT as a defensive name in this environment and see its current share price as a great opportunity for our clients to add to positions, particularly given our visibility on the company’s near-term Rev. growth.

We maintain our target price of US$9.00, and reiterate our Outperform rating.

Read the full report here.

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#2. QIPT Potential Catalyst - Revenue Growth In 2021 (And Q1 2022)

Since the beginning of the year, the company has made two major announcements in regards to revenue growth and operational highlights.

Quipt Home Medical Reports Record First Quarter Fiscal 2022 Fin-an-cial Results

From the article:

• Revenue for Q1 2022 was $29.5Mn compared to $22.8Mn for Q1 2021, representing a 30% increase in revenue year-over-year.
• Through the Company’s continued use of technology and centralized intake processes, respiratory resupply set-ups and/or deliveries increased to 51,137 for the three months ended December 31, 2021, compared to 34,996 for the same period ended December 31, 2020, an increase of 46%.
• The Company’s customer base increased 45% year over year from 51,836 unique patients served in Q1 2021 to 75,309 unique patients in Q1 2022.
• Compared to 118,100 unique set-ups/deliveries in Q1 2022, the Company completed 76,691 unique set-ups/deliveries in Q1 2021, an increase of 54%.

Quipt Home Medical Reports Record Fourth Quarter and Fiscal Year 2021 Fin-an-cial Results

From the article:

• Revenue for fiscal year 2021 was $102.4Mn compared to $72.6Mn for fiscal year 2020, representing a 41% increase in revenue year-over-year. Compared to fiscal year 2020, the Company experienced organic growth of 10%.
• Through the Company’s continued use of technology and centralized intake processes, respiratory resupply set-ups and/or deliveries increased to 158,072 for the year ended September 30, 2021, compared to 61,468 for the year ended September 30, 2020, an increase of 157.2%.
• The Company’s customer base increased 53.8% year over year to 140,996 unique patients served in fiscal year 2021 from 91,650 unique patients in fiscal year 2020.
• Compared to 253,113 unique set-ups/deliveries in fiscal year 2020, the Company completed 364,367 unique set-ups/deliveries in fiscal year 2021, an increase of 44%.

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#3. QIPT Potential Catalyst - Major 2022 Acquisition Announcement

Quipt Adds $13Mn in Annualized Revenue, $1.6Mn in Net Income, Anticipated $2.9Mn of Adjusted EBITDA Post Integration and 15,000 New Active Patients With Acquisition of Indiana Based Company

CINCINNATI, Jan. 04, 2022 (GLOBE NEWSWIRE) -- Quipt Home Medical Corp. (“Quipt” or the “Company”) (NASDAQ:QIPT; TSXV:QIPT), a U.S. based leader in the home medical equipment industry, focused on end-to-end respiratory care, is very pleased to announce that it has acquired At Home Health Equipment, Inc. (“At Home Health Equipment”), a business with operations in Indiana, reporting unaudited trailing 12-month annual revenues of approximately $13Mn ‎and $1.6Mn in net income with anticipated Adjusted EBITDA (defined below) of $2.9Mn (22% margin) post integration. As a reminder all figures stated are in USD.

[...]

Read the full article here.

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#4. QIPT Potential Catalyst - Another Low Float Profile

According to the Yahoo Finance website, QIPT has a relatively low float.

The website reports this profile to have approximately 32.01Mn shares in its float.

Why is that important? It's important on one crucial level. Volatility.

With so few shares available for trading, other potential catalysts (like big news) could spark a vertical move in the short-term.

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QIPT Recap: 4 Potential Catalysts To Know About Your New Nasdaq Profile

#1. Unreal Analyst Coverage And A Significant Target

#2. Revenue Growth In 2021 (And Q1 2022)

#3. Major 2022 Acquisition Announcement

#4. Another Low Float Profile

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Coverage is officially initiated on QIPT. When you've got a moment later, do this:

Get QIPT on your radar now.

Sincerely,

Axel Adams

Editor, SCF

Source 1

(Always Remember The St-ock Prices Could Be Significantly Lower Now From The Dates I Provided.)​