Quipt predicts strong growth through end of year

CINCINNATI – Quipt Home Medical surpassed its own expectations for organic growth in the third quarter of fiscal year 2023 – a record 4%, ahead of the 2% it expected, said CEO Greg Crawford. 

The company anticipates organic growth to continue through the rest of the year, exceeding the 8% to 10% average it has seen annually. 

“We have been concentrating our efforts on areas with the high prevalence of COPD and penetrating our key sales touch points into continual markets,” he said on a recent call to discuss the company’s results.  

Quipt also has “the acquisition of new accretive targets to build out scale,” Crawford said. The company added about a dozen states in the past 18 to 24 months, including, at the start of the year, seven states through its acquisition of Great Elm Healthcare, which also added 70,000 patients to its roster. 

The company maintains a “robust” pipeline of acquisitions that includes companies with $3 million to $15 million in top-line revenue, says CFO Hardik Mehta, as well as smaller tuck-in acquisitions that extend its existing footprint. 

“Within the same state, you probably can acquire those at lower multiples,” he said. “Then you will see the higher end and maybe $10 million plus or minus and those might demand a little bit higher in terms of valuation, but overall, the valuation seems to be slightly depressed than what we have seen in the past.” 

On the call, executives also announced an investment of $1.5 million to purchase about 10% of DMEscripts. 

“We definitely see e-prescribe as a big part of the future in that that’s going to allow us to scale our business,” said Crawford. “E-prescribing is essential to the durable medical equipment industry as this technology can serve to boost productivity, cut down on errors, boost compliance and improve patient outcomes.”