vmd-20230331

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2023


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____ to _____

Commission file number: 001-38973

Viemed Healthcare, Inc.

(Exact name of registrant as specified in its charter)


British Columbia, Canada		N/A
(State or other jurisdiction of incorporation or organization)		(IRS Employer Identification Number)

	625 E. Kaliste Saloom Rd. Lafayette, LA 70508
(Address of principal executive offices, including zip code)

	(337) 504-3802
(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:



Title of each class	Trading Symbol(s)	Name of exchange on which registered
Common Shares, no par value	VMD	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐

Accelerated filer ☒

Non-Accelerated filer ☐

Smaller reporting company ☒

Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No x

As of April 27, 2023, there were 38,276,389 common shares of the registrant outstanding.


VIEMED HEALTHCARE, INC. TABLE OF CONTENTS
March 31, 2023 and 2022


		Page
PART I - FINANCIAL INFORMATION		3
Item 1. Financial Statements		3
	Condensed Consolidated Balance Sheets	3
	Condensed Consolidated Statements of Income and Comprehensive Income	4
	Condensed Consolidated Statements of Changes in Shareholders' Equity	5
	Condensed Consolidated Statements of Cash Flows	6
	Notes to the Condensed Consolidated Financial Statements	7
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations		23
	Forward-Looking Statements	23
	General Matters	24
	Overview	24
	Trends Affecting Our Business	25
	Results of Operations	27
	Non-GAAP Financial Measures	29
	Liquidity and Capital Resources	29
	Accounting and Disclosure Matters	32
Item 3. Quantitative and Qualitative Disclosures About Market Risk		34
Item 4. Controls and Procedures		34
PART II - OTHER INFORMATION		35
Item 1. Legal Proceedings		35
Item 1A. Risk Factors		35
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds		35
Item 3. Defaults Upon Senior Securities		35
Item 4. Mine Safety Disclosures		35
Item 5. Other Information		36
Item 6. Exhibits		37

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements


VIEMED HEALTHCARE, INC. CONDENSED CONSOLIDATED BALANCE SHEETS
(Expressed in thousands of U.S. Dollars, except outstanding shares)
	Note	At March 31, 2023		At December 31, 2022
		(Unaudited)		(Audited)
ASSETS
Current assets
Cash and cash equivalents		$	23,544	$	16,914
Accounts receivable, net of allowance for doubtful accounts of $11,040 and $8,483 at March 31, 2023 and December 31, 2022, respectively	2	16,320		15,379
Inventory	2	3,447		3,574
Income tax receivable		—		26
Prepaid expenses and other assets	2	3,394		3,849
Total current assets		$	46,705	$	39,742
Long-term assets
Property and equipment, net	3	68,438		68,437
Equity investments	2	1,994		2,155
Debt investment	2	2,057		2,000
Deferred tax asset	9	3,844		3,119
Other long-term assets	8	1,596		1,590
Total long-term assets		$	77,929	$	77,301
TOTAL ASSETS		$	124,634	$	117,043

LIABILITIES
Current liabilities
Trade payables		$	4,262	$	2,650
Deferred revenue		4,698		4,624
Income taxes payable		1,247		—
Accrued liabilities	4	12,817		11,092
Current portion of lease liabilities	5	397		495


Total current liabilities		$	23,421	$	18,861
Long-term liabilities
Accrued liabilities	7	1,010		889
Long-term lease liabilities	5	162		199

Total long-term liabilities		$	1,172	$	1,088
TOTAL LIABILITIES		$	24,593	$	19,949

Commitments and Contingencies	8	—		—

SHAREHOLDERS' EQUITY
Common stock - No par value: unlimited authorized; 38,276,389 and 38,049,739 issued and outstanding as of March 31, 2023 and December 31, 2022, respectively	7	$	17,096	$	15,123
Additional paid-in capital		12,087		12,125

Retained earnings		70,858		69,846
TOTAL SHAREHOLDERS' EQUITY		$	100,041	$	97,094

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY		$	124,634	$	117,043


See accompanying notes to the condensed consolidated financial statements
Page 3


VIEMED HEALTHCARE, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(Expressed in thousands of U.S. Dollars, except share and per share amounts) (Unaudited)


		Three Months Ended March 31,
	Note	2023		2022
Revenue	2	$	39,556	$	32,255

Cost of revenue		15,552		12,512

Gross profit		$	24,004	$	19,743

Operating expenses
Selling, general and administrative		19,762		15,776
Research and development		780		632
Stock-based compensation	7	1,391		1,305
Depreciation		240		237

Gain on disposal of property and equipment		(22)		(14)
Other (income) expense, net		(81)		(441)
Income from operations		$	1,934	$	2,248

Non-operating income and expenses

Income from equity method investments		(35)		(323)
Interest (income) expense, net	5	(49)		64

Net income before taxes		2,018		2,507
Provision for income taxes	9	501		745

Net income		$	1,517	$	1,762

Other comprehensive income
Change in unrealized gain/loss on derivative instruments, net of tax		—		163
Other comprehensive income		$	—	$	163

Comprehensive income		$	1,517	$	1,925

Net income per share
Basic	10	$	0.04	$	0.04
Diluted	10	$	0.04	$	0.04

Weighted average number of common shares outstanding:
Basic	10	38,156,777		39,621,741
Diluted	10	40,016,693		40,363,456

See accompanying notes to the condensed consolidated financial statements

Page 4


VIEMED HEALTHCARE, INC. CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
(Expressed in thousands of U.S. Dollars, except share and per share amounts) (Unaudited)


	Common Stock			Additional paid-in capital		Accumulated other comprehensive loss				Total Shareholders' equity
	Shares	Amount						Retained earnings
Shareholders' equity, December 31, 2021	39,640,388	$	14,014	$	7,749	$	(278)	$	73,335	$	94,820
Stock-based compensation - options	—

SEC Form 10-Q filed by Viemed Healthcare Inc.