Earnings wrap-up: Inogen down; OptionCare, Viemed up

Wednesday, November 6, 2019

GOLETA, Calif. – Inogen reported total revenues of $91.8 million for the third quarter of 2019, a 3.7% decrease compared to the same period last year. Net income was $6.9 million vs. $16.4 million. Direct-to-consumer sales decreased to $37.8 million in the third quarter this year compared to $38.3 million for the same period last year, a decrease that was primarily due to a 40% reduction in its sales rep headcount, offset by increased productivity. Domestic business-to-business sales were flat, primarily due to a previously announced decline in orders from one large provider that buys POCs through Inogen’s private label partner. Rental revenue was $5.4 million in the third quarter of this year vs. $5.6 million in the same period last year, primarily due to a 6.9% decrease in patients on service, partially offset by higher rental revenue per patient. “We are pleased with our third quarter results and we continue to make progress in addressing the issues we face in our direct-to-consumer sales organization,” said Scott Wilkinson, president and CEO. “Direct-to-consumer sales outperformed in the third quarter, primarily due to our focus on improving the productivity of our existing salesforce, while also investing in new sales representatives to drive future growth. As a result, we expect direct-to-consumer sales to be our fastest growing channel in 2020, contributing to our expected total revenue in 2020 of $410 million to $415 million.”

‘Unified’ Option Care posts double-digit increases

BANNOCKBURN, Ill. – Option Care reported net revenues of $615.9 million for the third quarter of 2019, a 24.7% increase compared to the same period last year. Gross profits were $137.8 million, a 27.3% increase; and adjusted EBITDA was $34.8 million. The company, which announced in March it would merge with BioScrip, finalized the agreement in August. “Our newly combined team has come together under the unified purpose to set the standard for infusion therapy in the alternate site setting,” said CEO John Rademacher. “While we still have a significant amount of work ahead of us, I feel we are on plan and building momentum. Through the hard work of our teams across various functions, we have developed a comprehensive plan to deliver at least $60 million in net synergies and I’m excited about all the opportunities at hand for our combined company.”

Viemed’s patient count for vents grows 36% year over year

LAFAYETTE, La. – Viemed Healthcare reported revenues of approximately $23.5 million for the third quarter of 2019, a 37% increase compared to the same period in 2018. It reported net income of $3 million, a 22% increase. The company grew its vent patient count by 36% compared to the prior year’s quarter and 4% over the second quarter. “I am delighted to have posted another record breaking quarter in gross revenue and active vent patients,” said Casey Hoyt, Viemed CEO. “The continued success of treating patients in the home is evident with each new area that we enter and we are excited to continue our expansion throughout the lower 48 over the next 12 months.” Viemed expects to generate total revenues of approximately $24.7 million to $25.2 million during the fourth quarter of 2019 (approximately $21.8 to $22.2 million after netting out expected bad debt).