Quipt: ‘We’re a very acquisitive company’

CINCINNATI – A new equity program provides Quipt Home Medical with another tool to make additional acquisitions, but that doesn’t mean the company has any imminent deals pending, say execs. 

Quipt announced May 16 that it had filed a prospectus supplement establishing a new At-the-Market (ATM) equity program, with Canaccord Genuity and Beacon Securities Limited acting as agents. The ATM will allow the company to offer for sale and issue up to $40 million common shares from time to time, at its direction.  

“We’re a very acquisitive company,” said CEO Greg Crawford on a call to discuss Quipt’s financial results for the second quarter fiscal 2023. “We wanted to have the ATM in place, in that should we decide to execute on additional M&A, that’s just another tool in our tool belt to bring on additional accretive acquisitions.” 

Quipt reported revenues of $58.1 million for the second quarter, a 73% increase compared to the same period last year. It reported adjusted EBITDA of $13. 1million (22.5% of revenues) vs. $7 million (21% of revenues), representing an 86% increase year over year. 

During the second quarter, integration of Great Elm, its largest acquisition to date, continued well ahead of schedule, with an initial $2 million in cost savings and synergies, says CFO Hardik Mehta. 

“We now have more opportunity to build on our successful acquisition and integration strategy, with highly accretive tuck-in acquisitions for our whole portfolio of respiratory products and services,” he said. 

Quipt’s organic growth has ranged between 8% to 10%, a range the company expects to continue to meet or surpass in 2023, driven in part by an expansion of its sales team and a normalized supply chain, says Crawford. To that end, the company is focusing efforts on regions with a high prevalence of COPD. 

“We think there’s probably another 12 to 15 states that would kind of fit the bill there for us in that of cardio and pulmonary disease states, especially COPD, that we’d like to get into,” he said.