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• Revenue: $245.9 million for fiscal year 2024, a 16.2% increase year-over-year.

• Adjusted EBITDA: $57.9 million for fiscal year 2024, with a 23.5% margin, a 14% increase year-over-year.

• Q4 Revenue: $61.3 million, up 3% from Q4 2023.

• Q4 Adjusted EBITDA: $13.4 million, reflecting a 21.8% margin, an 8.8% decrease year-over-year.

• Cash Flow from Operations: $35.7 million for the 12 months ended September 30, 2024.

• Customer Base Growth: 10% year-over-year, serving 314,000 unique patients in fiscal year 2024.

• Respiratory Resupply Setups: 480,000 for the year, a 21% increase from the previous year.

• Recurring Revenue: Exceeded 78% of total revenue in fiscal year 2024.

• Operating Expenses: 49.8% of revenue in fiscal year 2024, compared to 48.7% in 2023.

• Net Leverage Ratio: 1.6x, indicating conservative debt management.

• Cash on Hand: $16.2 million as of September 30, 2024.

• Total Credit Availability: $34.7 million.

• Warning! GuruFocus has detected 4 Warning Signs with QIPT.

Release Date: December 17, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Quipt Home Medical Corp (NASDAQ:QIPT) achieved record revenue of $245.9 million for fiscal 2024, representing a 16% year-over-year growth.

• The company reported a consistent adjusted EBITDA margin of 23.5%, leading to an adjusted EBITDA of $57.9 million, a 14% increase over the previous year.

• Quipt Home Medical Corp (NASDAQ:QIPT) has expanded to over 135 locations across 26 states, serving over 314,000 active patients, enhancing its nationwide reach.

• The company's respiratory care focus, which represents approximately 80% of its product mix, aligns with macro trends such as the aging population and increased prevalence of COPD.

• Quipt Home Medical Corp (NASDAQ:QIPT) maintains a conservative balance sheet with a net leverage ratio of 1.6x, providing flexibility for strategic initiatives and acquisitions.

Negative Points

• The company faced industry-wide challenges in fiscal 2024, impacting its financial performance and preventing it from achieving its target of 8% to 10% annualized organic growth.

• Adjusted EBITDA for fiscal Q4 2024 decreased by 8.8% year-over-year, with a margin of 21.8% compared to 24.6% in the previous year.

• Operating expenses as a percentage of revenue increased to 49.8% in fiscal year 2024 from 48.7% in the previous year, partly due to professional fees related to ongoing investigations.

• The ongoing civil investigative demand (CID) remains unresolved, creating uncertainty and potential financial implications for the company.

• The company's diabetes business, while growing, has lower margins compared to its respiratory products, potentially impacting overall profitability.