vmd-20220331

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, 2022


☐			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 25, 2022, there were 38,918,067 common shares of the registrant outstanding.


VIEMED HEALTHCARE, INC. TABLE OF CONTENTS
March 31, 2022 and 2021


		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	30
	Accounting and Disclosure Matters	33
Item 3. Quantitative and Qualitative Disclosures About Market Risk		35
Item 4. Controls and Procedures		35
PART II - OTHER INFORMATION		36
Item 1. Legal Proceedings		36
Item 1A. Risk Factors		36
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds		36
Item 3. Defaults Upon Senior Securities		37
Item 4. Mine Safety Disclosures		37
Item 5. Other Information		37
Item 6. Exhibits		38

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, 2022		At December 31, 2021
		(Unaudited)		(Audited)
ASSETS
Current assets
Cash and cash equivalents		$	29,248	$	28,408
Accounts receivable, net of allowance for doubtful accounts of $8,484 and $7,031 at March 31, 2022 and December 31, 2021, respectively	2	13,599		12,823
Inventory, net of inventory reserve of $0 and $1,418 at March 31, 2022 and December 31, 2021, respectively	2	2,503		2,457
Income tax receivable		676		1,893
Prepaid expenses and other assets	2	1,778		1,729
Total current assets		$	47,804	$	47,310
Long-term assets
Property and equipment, net	3	63,977		62,846
Equity investments	2	2,359		2,157
Deferred tax asset	9	3,985		4,787
Other long-term assets	6, 8	882		862
Total long-term assets		$	71,203	$	70,652
TOTAL ASSETS		$	119,007	$	117,962

LIABILITIES
Current liabilities
Trade payables		$	3,697	$	3,239
Deferred revenue		3,888		3,753

Accrued liabilities	4	8,739		8,875
Current portion of lease liabilities	5	361		464
Current portion of long-term debt	5	1,049		1,480

Total current liabilities		$	17,734	$	17,811
Long-term liabilities
Accrued liabilities	7	731		757
Long-term lease liabilities	5	232		268
Long-term debt	5	4,266		4,306
Total long-term liabilities		$	5,229	$	5,331
TOTAL LIABILITIES		$	22,963	$	23,142

Commitments and Contingencies	8	—		—

SHAREHOLDERS' EQUITY
Common stock - No par value: unlimited authorized; 39,293,778 and 39,640,388 issued and outstanding as of March 31, 2022 and December 31, 2021, respectively	7	$	14,348	$	14,014
Additional paid-in capital		8,720		7,749
Accumulated other comprehensive loss		(115)		(278)
Retained earnings		73,091		73,335
TOTAL SHAREHOLDERS' EQUITY		$	96,044	$	94,820

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY		$	119,007	$	117,962


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	2022		2021
Revenue	2	$	32,255	$	28,416

Cost of revenue		12,512		10,674

Gross profit		$	19,743	$	17,742

Operating expenses
Selling, general and administrative		15,776		14,509
Research and development		632		339
Stock-based compensation	7	1,305		1,307
Depreciation		237		200

Other (income) expense		(455)		55
Income from operations		$	2,248	$	1,332

Non-operating income and expenses

Income from equity method investments		(323)		(220)
Interest expense, net of interest income	5	64		91

Net income before taxes		2,507		1,461
Provision (benefit) for income taxes	9	745		(223)

Net income		$	1,762	$	1,684

Other comprehensive income
Change in unrealized gain/loss on derivative instruments, net of tax		163		106

SEC Form 10-Q filed by Viemed Healthcare Inc.