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Quipt looks to ‘move needle’

Quipt looks to ‘move needle’ Company boasts pipeline with about $100M in revenues, execs say

Quipt stockCINCINNATI – With $33 million in cash on hand and a $20 million untapped credit facility, Quipt Home Medical is well positioned to increase scale through acquisitions, company execs said on a recent earnings call. 

Most of the deals in Quipt’s current pipeline are in the sub $5 million to $5 million to $10 million range, though execs say the pipeline for $10 million companies is getting larger. Cumulatively, the pipeline totals about $100 million in revenues, says CFO Hardik Mehta. 

“Our infrastructure allows us to scale quickly and the robust financial position we have provides us the ability to target meaningful acquisition candidates that work significantly to move the needle for our coverage in the United States,” he said. “We expect to have a very busy remainder of the year, as it relates to our M&A program and our organic growth initiatives.” 

Quipt has entered four new states since July. Most recently, in August, it acquired a company with operations in Missouri, adding 15,000 active patients. 

The company has also named David Chester to lead its M&A and integration team. Chester has 21 years of experience, most recently as director of acquisitions for one of the largest HME companies in the industry.  

“This marks the start of a longer-term plan to transition certain local market brands to Quipt, as it strengthens our brand equity and recognition,” said Greg Crawford, CEO. “Combining these newly acquired entities provides Quipt a pathway to grow into these new states with each business having a proven track record in the markets they serve and diversified product mixes.” 

While it scales the business, Quipt is also monitoring the impact of the Philips recall. The company hasn’t seen a significant number of patients stopping their therapy and, therefore, hasn’t seen a material impact on its financials, but it's working to minimize any future impact, says Crawford. 

“We are striving to drive new setups in other product categories to mitigate the future impact due to the recall,” he said. 

Due to supply chain issues, Quipt also has a large back order of new CPAP setups, says Crawford.  

“We believe there's going to be a big pent-up demand at some point once the supply chain (issues are fixed),” he said.


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