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Quipt Home Medical Announces New National Insurance Contract with Top 5 Health Insurer Based on Membership in the United States

CINCINNATI, April 04, 2023 (GLOBE NEWSWIRE) -- Quipt Home Medical Corp. (“Quipt” or the “Company”) (NASDAQ:QIPT; TSXV:QIPT), a U.S. based home medical equipment provider, focused on end-to-end respiratory care, is very pleased to announce the execution of a national insurance contract with a top five health insurer based on membership in the United States1. This represents the second national insurance contract the Company has signed since April 2022.

Management Commentary

“Our strong start to the year has continued with the execution of our second national insurance contract with another top five health insurer in the United States. At present, we are providing cost-effective patient care to over 270,000 active patients across the nation and I am very excited that another major health insurer has recognized the value creation we are providing within the industry. Looking across the entire company, I am very pleased with the continued momentum that we are experiencing in the wake of our biggest acquisition to date, which has assisted us in achieving Annualized Revenue (defined below) of $220 million and Anticipated Annualized Adjusted EBITDA‎ (defined below) of $49 million. We remain focused on delivering on our robust growth strategy and the signing of this contact is yet another milestone that will assist us in reaching our long-term goals,” said Greg Crawford, Chairman and CEO of Quipt. “The execution of this new national insurance contract continues to expand our patient accessibility profile and is expected to assist us in the acceleration of our organic growth strategy. I am also excited to be able to immediately leverage both our national contracts, which is extremely meaningful in terms of capturing as many eligible patients as possible. I look forward to continuing to update our shareholders with respect to our ongoing operational and financial success.”


The Company provides in-home monitoring and disease management services including end-to-end respiratory solutions for patients in the United States healthcare market. It seeks to continue to expand its offerings to include the management of several chronic disease states focusing on patients with heart or pulmonary disease, sleep disorders, reduced mobility, and other chronic health conditions. The primary business objective of the Company is to create shareholder value by offering a broader range of services to patients in need of in-home monitoring and chronic disease management. The Company’s organic growth strategy is to increase annual revenue per patient by offering multiple services to the same patient, consolidating the patient’s services, and making life easier for the patient.

Reader Advisories

Unless otherwise specified, all dollar amounts in this press release are expressed in U.S. ‎dollars.‎

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of ‎the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.‎

Forward-Looking Statements

Certain statements contained in this press release constitute "forward-looking information" as such term is ‎‎‎defined in applicable Canadian securities legislation. The words "may", "would", "could", "should", "potential", ‎‎‎‎"will", "seek", "intend", "plan", "anticipate", "believe", "estimate", "expect", "outlook", and similar expressions ‎‎as ‎they relate to the Company, including: Anticipated Annualized Adjusted EBITDA; anticipated pro forma cost ‎savings and synergies and the timing of capturing them; the Company anticipating organic growth meeting; the impact the execution of this national insurance contract will have on the Company, if any; are intended to ‎identify forward-looking information. All statements ‎other than statements of ‎historical fact may be forward-‎looking information. Such statements reflect the ‎Company's current views and ‎intentions with respect to future ‎events, and current information available to the ‎Company, and are subject to ‎certain risks, uncertainties and ‎assumptions, including: Great Elm (defined below) achieving ‎results at least as good as ‎historical performances; the ‎financial information regarding Great Elm being ‎verified when included in the ‎Company’s consolidated ‎financial statements prepared in accordance with ‎generally accepted accounting ‎principles in Canada as set out ‎in the CPA Canada ‎Handbook – Accounting under ‎Part I, which incorporates ‎International Financial ‎Reporting ‎Standards as issued by the International Accounting ‎Standards Board‎;‎ and $2 million of cost savings and synergies, with all other projected elements remaining the same based on ‎historical performance‎; and the Company attracting new business as a result of the national insurance contract disclosed herein. Many factors could cause the actual ‎results, ‎performance or achievements that may be expressed ‎or implied by such forward-looking information to ‎vary from ‎those described herein should one or more of these ‎risks or uncertainties materialize. Examples of such ‎risk factors ‎include, without limitation: credit; market ‎‎(including equity, commodity, foreign exchange and interest ‎rate); ‎liquidity; operational (including technology ‎and infrastructure); reputational; insurance; strategic; ‎regulatory; legal; ‎environmental; capital adequacy; the ‎general business and economic conditions in the regions ‎in which the ‎Company operates; the ability of the ‎Company to execute on key priorities, including the successful ‎completion of ‎acquisitions, business retention, and ‎strategic plans and to attract, develop and retain key ‎executives; difficulty ‎integrating newly acquired businesses; ‎the ability to implement business strategies and ‎pursue business opportunities; low profit ‎market segments; ‎disruptions in or attacks (including cyber-attacks) on ‎the Company's information technology, ‎internet, network ‎access or other voice or data communications systems or ‎services; the evolution of various types ‎of fraud or other ‎criminal behavior to which the Company is exposed; the ‎failure of third parties to comply with ‎their obligations to ‎the Company or its affiliates; the impact of new and ‎changes to, or application of, current ‎laws and regulations; ‎decline of reimbursement rates; dependence on few ‎payors; possible new drug discoveries; a ‎novel business model; ‎dependence on key suppliers; granting of permits ‎and licenses in a highly regulated ‎business; the overall difficult ‎litigation environment, including in the U.S.; ‎increased competition; changes in ‎foreign currency rates; increased ‎funding costs and market volatility due to ‎market illiquidity and competition for ‎funding; the availability of funds ‎and resources to pursue operations; ‎critical accounting estimates and changes ‎to accounting standards, policies, ‎and methods used by the Company; ‎the occurrence of natural and unnatural ‎catastrophic events and claims ‎resulting from such events; and risks ‎related to COVID-19 including various ‎recommendations, orders and ‎measures of governmental authorities to try ‎to limit the pandemic, including travel ‎restrictions, border closures, ‎non-essential business closures, quarantines, ‎self-isolations, shelters-in-place and social distancing, ‎disruptions ‎to markets, economic activity, financing, ‎supply chains and sales channels, and a deterioration of general ‎economic ‎conditions including a possible ‎national or global recession; as well as those risk factors discussed or ‎referred to ‎in the Company’s disclosure ‎documents filed with United States Securities and Exchange Commission ‎and ‎available at, and with ‎the securities regulatory authorities in certain provinces of Canada and ‎‎available at Should any ‎factor affect the Company in an unexpected manner, or should ‎‎assumptions underlying the forward-looking ‎information prove incorrect, the actual results or events may differ ‎‎materially from the results or events predicted. ‎Any such forward-looking information is expressly qualified in its ‎‎entirety by this cautionary statement. Moreover, ‎the Company does not assume responsibility for the accuracy or ‎‎completeness of such forward-looking ‎information. The forward-looking information included in this press release ‎‎is made as of the date of this press ‎release and the Company undertakes no obligation to publicly update or revise ‎‎any forward-looking information, ‎other than as required by applicable law‎.‎

Non-GAAP Measures

This press release refers to “Annualized Revenue” and “Anticipated Annualized Adjusted EBITDA”, which are non-‎GAAP and non-IFRS financial ‎measures that do not have standardized meanings prescribed by GAAP or IFRS. The ‎Company’s presentation of ‎these financial measures may not be comparable to similarly titled measures used by ‎other companies. These ‎financial measures are intended to provide additional information to investors concerning ‎the Company’s ‎performance.‎

Annualized Revenue as used in this press release is calculated as Quipt’s total revenues for the three months ended ‎September 30, 2022 of $40 million multiplied by four, or $160 million, plus revenue of Great Elm Healthcare, LLC (“Great Elm”), ‎an indirect wholly owned subsidiary of Quipt, on January 3, 2023, for the twelve ‎months ended August 31, 2022 of $60 million, for a total of $220 million.‎

Anticipated Annualized Adjusted EBITDA as used in this press release is calculated as Annualized Adjusted ‎EBITDA, as defined below, of $13 million for Great Elm and $47 million for the combination of Quipt and Great ‎Elm, plus $2 million of identified cost savings and synergies, for a total of $15 million for Great Elm and $49 ‎million for the combination of Quipt and Great Elm.‎

Annualized Adjusted EBITDA as used in this press release is calculated as Quipt’s Adjusted EBITDA for the three months ended September 30, 2022 of $8.4 million multiplied by four, or $33.2 million, plus Great Elm’s Adjusted EBITDA of $13.4 million, for a total of $47 million.

Three months ended
September 30, 2022
 Great Elm
Twelve months ended
August 31, 2022
Net income (loss) from continuing operations $1.8  $(2.0)
Add back:  -   - 
Depreciation and amortization  7.2   8.3 
Interest expense, net  0.6   6.1 
(Recovery of) provision for income taxes  (2.4)  - 
EBITDA  7.2   12.4 
Stock-based compensation  0.9   - 
Acquisition-related and other transaction costs  0.1   0.6 
Other income from government grant  (0.6)  (2.3)
Gain (loss) on foreign currency transactions  0.1   - 
Loss on extinguishment of debt  0.3   - 
Loss on settlement of shares to be issued  0.4   - 
Change in fair value of derivatives  0.1   2.1 
Parent company management fee  -   0.4 
Other  (0.1)  0.2 
Adjusted EBITDA $8.4  $13.4 

For further information please visit our website at, or contact:‎

Cole Stevens
VP of Corporate Development ‎
Quipt Home Medical Corp.‎

Gregory Crawford
Chief Executive Officer
Quipt Home Medical Corp.‎


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