Quipt Home Medical Corp (QIPT)

Business Description

Quipt Home Medical Corp. (QIPT) is a U.S.-based provider of durable medical equipment and home medical equipment, specializing in in-home treatments for managing chronic conditions, with a primary focus on respiratory diseases. The company serves patients across 26 states in the U.S. and aims to become one of the largest providers of in-home respiratory solutions in the country. Quipt sells a range of in-home medical equipment and supplies, focusing on respiratory care and the management of chronic diseases such as heart and pulmonary diseases, sleep apnea, and reduced mobility.

Sales of Medical Equipment and Supplies - Provides medical equipment and supplies, including CPAP and BiPAP units, oxygen concentrators, and other related products.
Rentals of Medical Equipment - Offers durable medical equipment on a rental basis, primarily for respiratory and mobility-related needs.

Key Metrics

View all financials →

Leadership

Name	Position	External Roles	Short Bio
Gregory Crawford ExecutiveBoard	Chief Executive Officer	None	CEO since December 2017, previously COO. Led QIPT's transformation, growing revenue significantly through strategic acquisitions and operational improvements.	View Report →
Hardik Mehta Executive	Chief Financial Officer	None	CFO since February 2018. Extensive experience in capital markets, M&A, and financial planning. Played a key role in QIPT's growth and operational efficiency.
Thomas Roehrig Executive	Chief Accounting Officer	None	CAO since September 2024, previously EVP of Finance. Over 30 acquisitions and 10+ capital market transactions experience. CPA with a strong background in accounting and finance.
Brian Wessel Board	Director, Chair of Audit Committee	None	Director since February 2022. Former Ernst & Young leader with 34+ years of experience in accounting, financial reporting, and audits. CPA in Kentucky and Texas.
Kevin Carter Board	Director	Partner at Providence Medical Group; Medical Director at Kettering Health Network Sleep Disorder Centers; Physician at Veteran Affairs of Dayton; Carter Sleep Center	Director since December 2020. Board-certified in Sleep Medicine and Family Medicine. Extensive experience in medical leadership and improving access to care.
Mark Greenberg Board	Director	Managing Partner at Silverstone Capital Advisors	Director since December 2017. Over 30 years of experience in M&A and capital sourcing, with 150+ transactions completed. Founder of Silverstone Capital Advisors.

Questions to Ask Management

Given the challenges you've faced with the end of the Medicare 75-25 rate relief and the withdrawal of Medicare Advantage members due to capitated agreements, what specific strategies are you implementing to return to your historic levels of 8-10% organic growth, and what is the expected timeline for achieving this?
With bad debt expenses increasing from 4% to 5% due to the Change Healthcare cybersecurity incident impacting approximately $4 million in working capital, what measures are you taking to improve collections and reduce bad debt going forward, and how confident are you in recouping the impacted amounts?
As you expand into the diabetes market segment with continuous glucose monitors and related supplies, how do you plan to leverage this opportunity without increasing SG&A expenses, and what challenges do you anticipate in integrating this new product line into your existing operations?
Considering your net debt to adjusted EBITDA leverage is currently at 1.5x and you mentioned the capacity to increase it to 2x, how are you assessing the risk of taking on additional debt for acquisitions in the context of rising interest rates, and how might this impact your free cash flow targets of 6-8%?
In light of the recent large M&A activity in your industry and the potential dislocation it may cause, how do you plan to capitalize on gaining market share while ensuring that your operational efficiencies and margins are maintained, especially if increased competition leads to higher acquisition multiples?

Program Details	Program 1
Approval Date	April 23, 2024
End Date/Duration	April 30, 2025, or earlier if the maximum of 3,626,845 Common Shares is repurchased or the program is terminated
Total Additional Amount	Up to 3,626,845 Common Shares (approximately 10% of the public float as of April 23, 2024)
Remaining Authorization	No shares repurchased to date, so the full authorization remains
Details	The program aims to create shareholder value, reflecting confidence in the business model, operating cash flow, and growth prospects. It allows flexible capital allocation between share repurchases and growth strategies like M&A.

Recent Mergers & Acquisitions

Notable M&A activity and strategic investments in the past 3 years.

Company	Year	Details
Southern Pharmaceutical Corporation	2023	Acquired for $4,303,000 (with cash, holdbacks, and adjustment for cash on hand) under IFRS 3, this deal expanded Quipt’s operations in Mississippi, Texas, and Louisiana while integrating key pharmaceutical assets and recognizing significant pro forma revenue and net income impacts.
Great Elm Healthcare, LLC	2023	An $80 million deal (including $73 million in cash, assumed debt, and common shares) that expanded Quipt’s reach into 26 states with 70,000 additional active patients and enhanced recurring revenue and EBITDA through respiratory-focused DME synergies.
Hometown Medical, LLC	2022	Purchased for $5,892,000 (with a cash portion and holdbacks) to add approximately $7 million in revenues and $1.4 million in Adjusted EBITDA, this acquisition doubled locations in Mississippi, increased active patients by over 11,000, and expanded Quipt’s referring network.
NorCal Respiratory, Inc.	2022	A $3.1 million transaction (with cash and discounted holdbacks) expected to add $3.2 million in annual revenues and $650,000 in Adjusted EBITDA, while expanding Quipt’s presence in northern California with additional active patients and referring physicians, and establishing a strong respiratory product mix alignment.
Access Respiratory Homecare, LLC	2022	Completed for $6,595,000 (a combination of cash payment and holdbacks) that brought roughly $6.5 million in annual revenues and $1.3 million in Adjusted EBITDA, while expanding Quipt’s footprint into Louisiana, increasing the active patient base, and integrating strategic assets including key insurance contracts.
Good Night Medical, LLC	2022	Acquired for approximately $7 million in cash, this deal expanded Quipt into new markets (including Massachusetts, North Carolina, and Texas), added around 10,000 active patients, and provided access to new commercial insurance contracts and revenue synergy opportunities centered on respiratory care.
At Home Health Equipment, Inc.	2022	A $13.1 million cash acquisition (with holdbacks) that added about $13 million in trailing revenues and boosted Adjusted EBITDA through integration, while increasing the active patient base by over 15,000 and opening up a new vertical with significant hospice contracts and clinical ventilation synergy opportunities.