Quipt Home Medical Corp (NASDAQ:QIPT), a U.S. based home medical equipment provider, focused on end-to-end respiratory care, stock rose 4.76% (As on December 19, 11:27:05 AM UTC-4, Source: Google Finance) after the company posted lower than expected results for the fourth quarter of FY 23. Recurring Revenue for Q4 2023 was very strong and exceeded 83% of total revenue, driven by growth in the Company’s resupply platform. Net income (loss) for Q4 2023 was ($1.3) million, as compared to $1.8 million for Q4 2022. Adjusted EBITDA for Q4 2023 was $14.7 million (23.5% of revenue) compared to $8.4 million (21.0% of revenue) for Q4 2022, representing a 75% increase. Cash flow from operations was $40.5 million for the year ended September 30, 2023, compared to $26.3 million for the year ended September 30, 2022. For fiscal year 2023, bad debt expense improved to 4.5% compared to 8.7% for fiscal year 2022. This exemplifies the Company’s ability to scale and add more revenue through add-on acquisitions without compromising billing and collection capabilities. The Company reported $17.2 million of cash on hand and total credit availability of $41.0 million as of September 30, 2023 with $20.0 million available towards its revolving credit facility and $21.0 million available pursuant to a delayed draw term loan facility. The Company maintains a conservative balance sheet with net debt to Adjusted EBITDA leverage of 1.4x.

Moreover, The Company’s customer base increased 65% year over year to 285,819 unique patients served in fiscal year 2023 from 173,203 unique patients in fiscal year 2022. Compared to 516,328 unique set-ups/deliveries in fiscal year 2022, the Company completed 754,414 unique set-ups/deliveries in fiscal year 2023, an increase of 46%. The Company’s resupply program is a major proponent of the Company’s 83% recurring revenue base as the Company has significantly scaled, now representing 47% of the recurring revenue mix, driving higher margin revenue. The program now consists of approximately 169,000 patients as of September 30, 2023, compared to approximately 100,000 patients as of September 30, 2022.

QIPT in the fourth quarter of FY 23 has reported the adjusted loss per share of 3 cents, missing the analysts’ estimates for the adjusted loss per share of 2 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 56 percent to $62.52 million in the fourth quarter of FY 23, missing the analysts’ estimates for revenue by 1.69%.