Q4 2023 Quipt Home Medical Corporation Earnings Call

Thank you for standing by. This is the conference operator. Welcome to the fiscal fourth quarter and unaudited full year 2023 earnings results conference call for Quipped Home Medical Corps. As a reminder, all participants are in listen only mode, and the conference is being recorded. After the presentation, there'll be an opportunity for analysts to ask questions and comments while you're at it.

Thank you for standing by this is the conference operator, welcome to the fiscal fourth quarter and unaudited full year 2023 earnings result conference call for Quipped home Medical Corp. As a reminder, all participants are in listen only mode and the conference is being recorded after the presentation there'll be an opportunity for.

Analysts to ask questions to join the question queue. You May Press Star then one on your telephone keypad should you need assistance during the conference call you May signal, an operator by pressing Star then zero, we remind you that the remarks today will include forward looking statements that are subject to important risks and uncertainties for more information on.

To join the question queue, you may press star, then one on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star, then zero. We remind you that the remarks today will include forward-looking statements that are subject to important risks and uncertainties.

For more information on these risks and uncertainties, please see the reader advisory at the bottom of the company's results news release. The company's actual performance could differ

These risks and uncertainties. Please see the reader advisory at the bottom of the Companys results news release, the company's actual performance could differ materially from both these statements.

At this point, I'd like to turn the call over to Chairman and Chief Executive Officer Greg Crawford.

Speaker Change: At this point I'd like to turn the call over to Chairman and Chief Executive Officer, Greg Crawford. Please go ahead.

Greg Crawford: Thank you operator, and thank you all for joining us today on the call. My name is Greg Crawford, if I'm, the chairman and Chief Executive Officer, Don Medical joining me today is hardest data, our chief financial Officer.

Thank you, Operator, and thank you all for joining us today on the call. My name is Greg Crawford, and I'm the Chairman and Chief Executive Officer of Quick Home Medical. Joining me today is Hardid Mehta, our Chief Financial Officer.

Home Medical is a diversified healthcare services company, providing a full spectrum of full medical equipment and services to patients in the comfort of their own homes across the United States.

Greg Crawford: Medical is a diversified health care services company, providing a full spectrum of home medical equipment and services to patients in the comfort of their own homes across the United States.

At QUIP, our model is centered around delivering clinical excellence, and we drive this through our patient-centric ecosystem.

Greg Crawford: I'd quit our model is it.

Greg Crawford: Early on delivering clinical excellence and we drive this through our patient centric ecosystem.

leveraging technology-enabled equipment solutions in conjunction with our specialized clinical respiratory programs to effectively treat patients as old in a way that best suits their needs.

Greg Crawford: Leveraging technology enabled equipment solutions in conjunction with our specialized clinical respiratory programs to effectively treat patients at home in a way that best suits their needs.

Our core focus is on clinical respiratory care, serving patients with cardio and pulmonary conditions, with over 80% of our product mix being considered respiratory in nature.

Our core focus is on clinical respiratory care, serving patients with cardio pulmonary conditions with over 80% of our product mix being considered respiratory in nature.

Greg Crawford: The consistent financial and operating success of our business seen through fiscal 2023 as a result of our targeted go to market strategies and indeed, the respiratory solution. We offer in the marketplace. Our team of over 1200 carries out our vision every day working tirelessly to fulfill our.

The consistent financial and operating success of our business seen through Finskele 2023 is a result of our targeted go-to-market strategies and end-in respiratory solution we offer in the marketplace. Our team of over 1,200

carries out our vision every day, working tirelessly to fulfill our company's central objective of providing exceptional patient care.

Greg Crawford: Companies Central objective of providing exceptional patient care, our ability to successfully implement our differentiated service model is driving quits record setting growth and emergence as a growing force in the industry.

Our ability to successfully implement our differentiated service model is driving quips record setting growth and emergence as a growing force in the industry.

On this call, we will update you on our record breaking fourth quarter and full year fiscal 2023 performance. The strong demand trends we are continuing to see across all our product categories. The favorable regulatory landscape and our strategic insights on the continued success of our core business.

Greg Crawford: On this call we will update you on our record breaking fourth quarter and full year fiscal 2023 performance. The strong demand trends, we are continuing to see across all our product categories. The favorable regulatory landscape and our strategic insights on the continued success of our core business.

At present, QIPP has expanded to 125 locations across 26 states, with over 287,000 active patients, which has enabled us to strengthen our coast-to-coast region.

Greg Crawford: At present.

Expanded to 125 locations across 26 states with over 287000 active patients, which has enabled us to strengthen our coast to coast reach.

This continued scaling of our infrastructure throughout fiscal 2023 has allowed us to monitor our rapidly growing patient base, effectively decrease organizational redundancy and grow our margin.

Greg Crawford: This continued scaling of our infrastructure.

Greg Crawford: Physical 2023 has allowed us to monitor our rapidly growing patient base effectively decrease organizational redundancy and grow our margins.

Through fiscal Q4, and in real time, we are experiencing consistent demand for all of our key product categories, continued success in the ongoing penetration of our primary sales touchpoints, and are thrilled with the integration and performance of our largest acquisition that began the calendar year, all of which has led us to a year of significant financial and operating milestones for quick.

Greg Crawford: During fiscal Q4 and in real time, we are experiencing consistent demand for all of our key product categories continued success and the ongoing penetration of our primary sales touch points and are thrilled with the integration and performance of our largest acquisition that began the calendar here all of which is why I asked.

Greg Crawford: Two a year of significant financial and operating milestones for Quint.

During fiscal 2023, we recorded record revenue of $221.7 million or 58.5% year-over-year growth, with strong margin acceleration to 22.8%, equating to adjusted EBITM of $50.6 million or growth of 73.5%.

Greg Crawford: During fiscal 2023, we recorded record revenue of $221 $7 million or 58% year over year growth with strong margin acceleration to 22, 8%.

Greg Crawford: Waiting to adjusted EBITDA of $56 million or greater 73, and a half per se.

For fiscal Q4 2023, we saw adjusted even margins continue to accelerate reaching 23.5 percent. This can be attributed to the operational scale we have achieved in our ability to leverage the platform we have built when adding revenue.

Our fiscal Q4 2023, we saw adjusted EBIT margins continued to accelerate reaching 23.5%. This can be attributed to the operational scale. We have achieved in our ability to leverage the platform. We have built when adding revenue.

Due to our focus on growing the continuum of care, cross-selling product categories, taking advantage of the benefits of normalized supply chain, and operating in a favorable regulatory environment, we have the opportunity to increase our organic growth performance.

Greg Crawford: Due to our focus on growing the continuum of care cross selling product categories taken advantage of the benefits of normalized supply chain and operating in a favorable regulatory environment. We have the opportunity to increase our organic growth performance, we have been focusing our efforts on regions with a high C. O P D prevalence.

We have been focusing our efforts on regions with a high COPD prevalence and expanding our key sales touch points into continual markets to meet our organic growth objectives.

Greg Crawford: In our key sales touch points.

Greg Crawford: In your markets to meet our organic growth objectives, we expect steady and continuous organically physical 'twenty 'twenty four with the objective.

We expect steady and continuous organically fiscal 2024 with the objective of 8 to 10 percent on an annualized basis.

Greg Crawford: The 10% on an annualized basis.

Furthermore, our strategy of providing a complete range of end-in respiratory solutions with our diverse product mix is crucial to sustaining our success and a major component in the expansion of our core markets as we continue to carry out our long-term strategic expansion strategy.

Greg Crawford: Furthermore, our strategy of providing a complete range of Indian respiratory solutions with our diverse product mix is crucial to sustaining our success and a major component in the expansion of our core markets as we continue to carry out our long term strategic expansion strategy.

By concentrating on our primary sales channels, which are medical facilities such as hospital systems, physicians, hospitals, long-term care facilities, home health agencies, rehab centers, we can increase overall volume growth, which is the main driver of organic growth.

Greg Crawford: By concentrating on our primary sales channels, which are of medical facilities, such as hospital systems. Physicians also has long term care facilities home health agencies rehab centers, we can increase overall volume growth, which is the main driver of organic growth.

Moreover, I would like to provide insights into the demand trends within our sleep business given the recent market speculation and reaction related to the adoption of GLP-1 diabetes and weight loss medication.

Greg Crawford: Moreover, I would like to provide insights into the demand trends within our sleep business given the recent market speculation and reaction related to the adoption of G. L. P. One diabetes and weight loss medications.

our sleep segment has experienced business as usual with absolutely no impact.

Our sleeps segment has experienced business as usual with absolutely no impact.

Demand continues to exhibit strength in real time, and our anticipation is that this robust demand will persist well into the foreseeable future. It is important to emphasize that CPAP and BiPAP therapy continue to be the established gold standard of care for individuals diagnosed with obstructive sleep deprivation.

Greg Crawford: <unk> continues to exhibit strength in real time, and our anticipation is that this robust demand will persist well into the foreseeable future.

Greg Crawford: It is important to emphasize that CPAP and bypass therapy.

Greg Crawford: <unk> to be the established gold standard of care for individuals diagnosed with obstructive sleep apnea.

Furthermore, leading manufacturers of sleep equipment are also reporting no findings of any decline related to GLP-1 drugs.

Greg Crawford: Furthermore, leading manufacturers of equipment are also reporting no findings.

Greg Crawford: Any decline related to G. L. P. One drugs. In addition to that we hold the firm belief that there are over 20 million Americans, who haven't yet been diagnosed with OSA that habits, representing a substantial untapped opportunity for future market growth to this point, we believe it is possible that the total addressable market may grow as.

In addition to that, we hold the firm belief that there are over 20 million Americans who haven't yet been diagnosed with OSA that have it, representing a substantial untapped opportunity for future market growth to this point. We believe it is possible that the total addressable market may grow as a result of more awareness and increased diagnosis.

Greg Crawford: As a result of more awareness and increase diagnosis.

of obstructive sleep apnea. Lastly, we continue to believe the key is to work with our sleep patients to ensure their compliance as it relates to the therapy, which is the heart of our patient-centric ecosystem.

Greg Crawford: Obstructive sleep apnea lastly, we continue to believe the key is to work with our sleep patients to ensure their compliance as it relates to the therapy, which is the heart of our patient centric ecosystem.

moving to the regulatory environment. We see continued stability and there have been no indications of the return of the competitive bidding. Historically, CMS has begun any competitive bidding process roughly 18 months before contracts and price takes effect. The likelihood of this happening is decreasing because CMS hasn't indicated how returning to the program would result in savings.

Moving to the regulatory environment, we see continued stability and there had been no indications of the return of the competitive bidding historically C. M. S. N begun any competitive bidding process, roughly 18 months before contracts and price takes effect.

Greg Crawford: Ahead of this happening is decreasing because CMS hasn't indicated how we're training to the program would result in savings.

Additionally, CMS has recently announced a headline CPI increase of 3% to the Medicare fee schedule beginning on January 1, 2024. Prior to 2022, our product categories were not subject to CPI adjustments while included in the competitive bidding program.

Greg Crawford: Additionally, CMS has recently announced a headline CPI increase of 3% to the Medicare fee schedule beginning on January one 'twenty 'twenty four prior to 2020 to our product categories, we're not subject to CPI adjustments while included in the competitive bidding program.

Over the past year, we have seen positive developments such as the easing of restrictions through the elimination of the long-standing requirement for providers to obtain certificates and medical necessities for home oxygen, which reduces the administrative burden on health care providers.

Greg Crawford: Over the past year, we have seen positive developments such as the easing of restrictions through the elimination of the longstanding requirement for providers to obtain certificates of medical necessity for home oxygen, which reduces the administrative burden on health care providers. Moreover, we have witnessed the opening of access for patients who.

Moreover, we have witnessed the opening of access for patients who visit the emergency care setting and are identified as having either acute or chronic respiratory diseases, and these now can be ordered for home oxygen equipment.

Greg Crawford: Visit the emergency care setting and are identified as having either acute or chronic respiratory diseases and these can be ordered for home oxygen equipment.

Throughout fiscal 2023, we executed on the fundamental pillars of our growth strategy, building out our operational footprint into six new states, providing us additional attractive markets to implement our innovative go-to-market strategy. Moreover, in fiscal 2023, we continued making technological advancements, such as in e-prescribing and expanded our commercial insurance capabilities with the addition of Aetna to our national contract roster.

Greg Crawford: Throughout fiscal 2023, we executed on the fundamental pillars of our growth strategy.

Greg Crawford: Now our operational footprint into six new states, providing us additional attractive markets to implement our innovative go to market strategy. Moreover, in fiscal 'twenty to 'twenty three we continued making technological advancements such as an E prescribing and expanded our commercial insurance capabilities with additional.

Greg Crawford: Aetna to our national contract roster.

QIX is in a strong position to withstand any potential economic downturns due to the nature of our business, providing necessary respiratory products and services to patients in the home setting throughout the United States. Our unwavering focus on building a robust operational foundation and infrastructure, combined with our proactive approach to both organic and inorganic growth, has uniquely positioned us to seize the multitude of opportunities for expansion that lie ahead.

Greg Crawford: Okay.

Greg Crawford: Long position to withstand any potential economic downturns due to the nature of our business, providing necessary respiratory products and services to patients in the home setting throughout the United States. Our unwavering focus on building a robust operational foundation and infrastructure combined with our proactive approach to both organic and inorganic.

Greg Crawford: <unk> is uniquely positioned to seize the multitude of opportunities for expansion that why is that.

Speaker Change: With that commentary I'd like to hand, the call over to Hardy to discuss our fiscal fourth quarter and full year 2023 financial results.

With that commentary, I'd like to hand the call over to Harding to discuss our fiscal fourth quarter and full year 2023 financial results.

Hardy: Thanks, Gregg on Monday evening, we announced our fiscal fourth quarter and full year 'twenty 'twenty financial results, representing the three months and 12 months ended September 32023. Please.

Thanks, Greg. On Monday evening, we announced our fiscal fourth quarter and full year 2023 financial results, representing the three months and 12 months and September 30, 2023. Please note that all financial values are in US dollars.

Hardy: Please note that all financial values are in U S dollars.

Hardy: Some key highlights.

To the company's continued use of technology and centralized intake processes, respiratory resupply setups, and our deliveries increased to 395,618 for the year end of September 30, 2023, compared to 231,495 for the year end of September 30, 2022, an increase of 71%.

Hardy: Two the company's continued use of technology and centralized intake processes respiratory resupply setups and our deliveries increased to 395000 and 618 for the year and their September 32023, compared to 231495 for the year end of September 32022, an increase.

Hardy: <unk> up 71% the company's customer base increased 65% year over your 285819 unique patients. So in fiscal year 2023 from 173001 of them three unique patients in fiscal year 'twenty two.

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 516328 unique set up deliveries in fiscal year 2022 are completely completed 754418 to meet setups in deliveries in fiscal year 2023 an increase of 46, 1%.

Compared to 516,328 unique setup deliveries in fiscal year 2022, the company completed 754,418 unique setups and deliveries in fiscal year 2023, an increase of 46.1%.

Revenue for fiscal year 2023 was $221.7 million compared to $139.9 million for fiscal year 2022, representing a 59% increase in revenue year-over-year.

Hardy: Revenue for fiscal year 'twenty, three was 221 7 million compared to $139 9 million for fiscal year 'twenty, two representing a 15, 9% increase in revenue.

Hardy: Yeah.

Recurring revenue as of fiscal year 2023 continues to be strong and exceeds 83% of total revenue.

Hardy: Recurring revenue as of fiscal year 2023 continues to be strong and exceeds 83% of total revenue.

Adjusted EBITDA for fiscal year 2023 was $50.6 million or 22.8% margin compared to adjusted EBITDA for fiscal year 2022 of $29.2 million or 20.9% margin, representing a 73% increase year-over-year.

Adjusted EBITDA for fiscal year, 'twenty, 'twenty, three was $56 million or 22, 8% margin compared to adjusted EBITDA for fiscal year 'twenty, two of $29 2 million or 29% margin, representing a 73% increase year over year.

Revenue for fiscal Q4 2023 was $62.5 million compared to $40.1 million for fiscal Q4 2022, representing a 56% increase in revenue year-over-year.

Revenue for fiscal Q4, 2023 was $62 5 million compared to 41 1 million for fiscal Q4, 2022 representing a 56% increase in revenue year over year.

Adjusted EBITDA for fiscal Q4 2023 was $14.7 million at 23.5% margin compared to adjusted EBITDA for fiscal Q4 2022 of $8.4 million at 21% margin, representing a 74% increase year-over-year.

Hardy: Adjusted EBITDA for fiscal Q4, 2023 was $14 7 million at 23, 5% margin compared to adjusted EBITDA, Our fiscal Q4, 2022 of $8 4 million at 21% margin, representing 74% increase year over year.

Cash flow from continuing operations was $40.5 million for the 12 months ended September 30, 2023 compared to $26.3 million for the 12 months ended September 30, 2022, a substantial increase of 54%.

Hardy: Cash flow from continuing operations was $40 5 million for the 12 months ended September 32023, compared to $26 3 million for the 12 months ended September 32022, a substantial increase of 54%.

For fiscal year 2023, that debt expense improved to 4.5% compared to 8.7% for fiscal year 2023.

Hardy: For fiscal year, 'twenty twenty-three bad debt expense improved to four 5% compared to eight 7% for fish.

Hardy: Full year 2022.

This exemplifies the company's ability to scale and add more revenue to add-on acquisitions without compromising billing and collection capabilities.

Hardy: This exemplifies the company's ability to scale and add more revenue to add on acquisitions without compromising billing and collection capabilities.

Hardy: Operating expenses would have been flat as a result of the year ending September 30, when you're running three was 46, 6% compared with 46 months, 6% corresponding pay there and when you're going to do.

Operating expenses remain flat as a result of the year ending September 30, 2023 was 46.6% compared to 46.6% the corresponding period in 2020.

Hardy: The company reported a $17 2 million of cash on hand, and total credit the liberty of $41 million as of September 32022.

The company reported $17.2 million of cash on hand and total credit availability of $41 million as of September 30, 2023.

with $20 million available towards the revolving credit facility and $21 million available pursuant to the delayed draw term loan facility.

$20 million available towards the revolving credit facility and $21 million available of course related to the delayed draw term loan facility.

Hardy: The company maintains a conservative balance sheet with net debt to adjusted EBITDA leverage of one point Forex.

The company maintains a conservative balance sheet with net debt to adjusted EBITDA leverage of 1.4x.

We are very proud to have produced another record-breaking year in fiscal 2023.

Hardy: We are very proud to have produced another record breaking year for fiscal 2020 three real time momentum has persisted in fiscal Q1, and we are witnessing a continued organic growth and margin expansion that we had been aiming for.

Real-time momentum has persisted in fiscal Q1 and we are witnessing continued organic growth and margin expansion that we have been aiming for.

For fiscal 2023, our revenue reached $221.7 million and adjusted EBITDA margin has reached 22.8% given by our diversified respiratory product mix and services, as well as focusing on operational leverage in the business and effective cost management.

Hardy: Fiscal 2023 our revenue reached 221 7 million and adjusted EBITDA margin has reached 22, 8% driven by our diversified respiratory product mix and services as well as focusing on the operational leverage in the business and effective cost management annualized in our fiscal fourth quarter, our run rate revenue.

Analyzing our fiscal fourth quarter, our run rate revenue now sits at $255 million in Q4. Our margin acceleration continues as a result of the scale we have generated with 23.5% adjusted EBITDA margin realized in the quarter.

Hardy: And now sits at 255 million.

Hardy: In Q4, our margin acceleration continues as a result of the scale. We have generated 93, 5% adjusted EBITDA margin realized in the quarter.

We expect strong organic growth in fiscal 2024 will persist as we continue to drive volume to our growing sales team and the cross-selling of products and continued expansion of the continuum of care in adjacent markets. In real time, setups across our product mix are very strong, including our sleep segment, which continues to drive our resupply business as a sleep patient converts into our program and we continue to see strong organic growth.

Hardy: We expect strong organic growth in fiscal 'twenty 'twenty four will persist as we continue to drive volume through our growing sales team and the cross selling of products and continued expansion of the continuum of care and adjacent markets and real time set up across all of our product mix, our very strong, including our sleep segment, which continues to drive alert.

Hardy: Supply business is asleep patient converts can go out program and we continue to see strong organic growth.

As we move into fiscal 2024, we continue to see improving net cash flow from operations. On our last conference call, we increased our guidance to 6 to 8% net cash from operations after CAPEX and or lease payments and before any debt service and purchase price payable related payments.

Hardy: As we move into fiscal 2024.

Hardy: Continue to see improving net cash flow from operations on our last conference call, we increased our guidance for 6% to 8% net cash from operations after capex and lease payments and before any of that service and purchase price payable related payments.

We are very confident in our ability to continue to grow our net cash flow inclusive of our CapEx needs and continue to see this as our base case on a go-forward basis with a long-term goal to further improve on this as we continue growing our business.

Hardy: We are very confident in our ability to continue to grow our net cash flow inclusive of our capex needs and continue to see this as our base case on a go forward basis.

Hardy: Long term goal to further improve on this as we continue growing our business.

Hardy: The continued consistency of our revenue base is driven by our highly recurring revenue model, which accounts for more than 83% of our total revenue mix.

The continued consistency of our revenue base is driven by our highly recurring revenue model, which accounts for more than 83% of our total revenue mix. Our resupply program is a major component of this recurring revenue base as we have significantly scaled the program, which now consists of 169,000 patients as of September 30, 2023.

The resupply program is a major component of this recurring revenue base as we have significantly scaled our program, which now consist of 169000 patients as of September 32023.

The resupply program represents an amazing growth area for us, extending a patient's life cycle with us.

Hardy: The resupply program represents an amazing growth area for us extending our patients lifecycle with us.

Hardy: Our healthy balance sheet with over 58 million of liquidity gives us ample flexibility to execute our organic and inorganic plan for strategic expansion in an environment with higher interest rates.

Our healthy balance sheet with over 58 million of liquidity gives us ample flexibility to execute our organic and inorganic plan for strategic expansion in an environment with higher interest rates. Our present net leverage is very modest at 1.4 times, giving us the ability to deploy a combination of debt and cash for the execution of our acquisition pipeline in accordance with our prudent acquisition approach.

Hardy: Our present net leverage is very modest at one four times, giving us the ability to deploy a combination of debt and cash for the execution of our acquisition pipeline in accordance with our prudent acquisition approach.

Hardy: In fiscal Q4, we closed on a multistate acquisition target expanding our presence in Mississippi, Texas, and Louisiana, adding $9 million in revenue and 2 million in adjusted EBITDA.

In fiscal Q4, we closed on a multi-state acquisition target, expanding our presence in Mississippi, Texas, and Louisiana, adding $9 million in revenue and $2 million in adjusted EBIT.

We were able to acquire this asset for a very favorable multiple of adjusted EBITDA on a post-integration basis. In real time, the integration has gone very well, and we are working on organic expansion opportunities within those existing markets on the heel of this acquisition.

Hardy: We're able to acquire this asset for a very favorable multiple of adjusted EBITDA on a post integration basis in real time. The integration has gone very well and we are working on organic expansion opportunities within those existing markets on the heel of this acquisition.

The operating footprint aligns closely with regions that have a very high prevalence of COPD, a key target patient.

Hardy: The operating footprint aligns closely with regions that have a very high prevalence of COPD, a key target patient group.

According to National Institutes of Health, about 1.5 million people across the three states have COPD.

Hardy: According to the National Institutes of health about one 5 million people across the three states have COPD.

Hardy: We will remain dedicated to the structural acquisition approach and tried and true integration process. We have developed over many years, we have a strong plan for sustained strong organic growth as well as the acquisition pipeline. Besides the things that have propelled our consistent growth.

We will remain dedicated to the structured acquisition approach and trial and true integration process we have developed over many years. We have a strong plan for sustained strong organic growth as well as deep acquisition pipeline.

These are the things that have propelled our consistent growth, which is demonstrated annually and has strengthened the company's position in the market.

Hardy: Demonstrated annually and has strengthened the company's position in the marketplace.

We have the tools needed to execute our expansion and acquisition strategy to drive value for our investors.

Hardy: We have the tools needed to execute our expansion and acquisition strategy to drive value for our investors.

Thank you, and with that update, I'll turn that call back to Greg.

Hardy: And with that update I'll turn the call back to Greg.

Thanks, Artic. Providing excellent patient care with an emphasis on treatment of conditions like sleep apnea, COPD, and other chronic respiratory disease is our top goal in each of our markets. We are constantly thinking of methods to expand the number of patients we serve and get access to desirable geographic areas. And we do this by breaking into new markets and forming partnerships with payers, patients, and referral services.

Greg Crawford: Thanks, Arctic providing excellent patient care with an emphasis on treatment of conditions like sleep apnea, COPD and other chronic respiratory disease is a top goal in each of our markets. We are constantly thinking of methods to expand the number of patients we serve and get access to desirable geographic areas and we do.

Greg Crawford: This by breaking into new markets in forming partnerships with payers patients and referral sources, our competitive advantage stems from our increased market share reach and robust clinical services, which enable us to leverage economies of scale. We believe that because we have successfully implemented the essential components of our growth strategy.

Our competitive advantage stems from our increased market share, reach, and robust clinical services, which enable us to leverage economies of scale. We believe that because we have successfully implemented the essential components of our growth strategy, and we will maintain our strong momentum for the foreseeable future.

Greg Crawford: And we will maintain our strong momentum for the foreseeable future.

These include completing accretive acquisitions, investing in our company's future organic growth, and broadening our healthcare network across the country through the execution of national insurance contracts and the expansion of continual markets. Furthermore, we are certain that acquisitions that are effectively integrated contribute to the overall acceleration of our organic growth strategy.

Greg Crawford: Include completing accretive acquisitions investing in our company's future organic growth.

Broadening our health care network across the country through the execution of national insurance contracts and the expansion of continual markets. Furthermore, we are certain that the acquisitions that are effectively integrated contribute to the overall acceleration of our organic growth strategy.

At this point, I would like to review with you the three components of our core growth strategy.

Greg Crawford: At this point I would like to review with you the three components of our core growth strategy.

first is driving organic growth with the goal of the eight to ten percent annually. We see momentum in fiscal Q1 2024 and have continued growing our sales teams which is one of the core initiatives on this front.

Greg Crawford: First is driving organic growth with the goal of the 8% to 10% annually, we see momentum in fiscal Q1, 'twenty 'twenty four and have continued growing their sales team, which is one of the core initiatives on this front.

This is how we connect with key touch points like hospital networks, doctors' offices, long-term care facilities, and rehab centers. Furthermore, the aging population and significant increase in the number of people with multiple chronic diseases across the United States.

This is how we connect with key touch points like hospital networks Doctors' offices long term care facilities rehab centers. Furthermore, the aging population and significant increase in the number of people with multiple chronic diseases across the United States.

are very positive demographic trends for QIPs when looking at the operating environment. Home medical equipment and services are becoming more necessary as the population ages, which provides a very sustainable long-term great opportunity.

Greg Crawford: Our very positive demographic trends for quick when looking at the operating environment home medical equipment and services are becoming more necessary as the population ages, which provides a very sustainable long term growth opportunity. Additionally.

A lot is being done to make sure that patients receive care at home whenever it is feasible.

Greg Crawford: A lot has been done to make sure that patients receive care at home whenever it is feasible.

Secondly, as we continue to expand our business, we remain committed to leveraging technology in every way we can to consistently improve our operational performance. We focus on enhancing our workflow processes, which creates real value and removes friction points. As an example, the significant improvement in our bad data expense and increased net cash flow is a result of improved processes across our billing and collections functions of the business.

Greg Crawford: Secondly, as we continue to expand our business, we remain committed to leveraging technology in every way we can to consistently improve our operational performance, we focus on enhancing our workflow processes, which creates real value and removes friction points. As an example, with significant improvement in bad debt expense and increase that.

Greg Crawford: Net cash flow as a result of the improved processes across our ability and collections functions of the business.

Furthermore, we are focused on long-term growth of e-prescribing in our industry and have positioned ourselves well with our investment in this area in fiscal 2023. Electronic prescribing is essential to the industry as this technology can serve to boost productivity, cut down on errors, boost compliance, and improve patient outcomes.

Greg Crawford: Furthermore, we are focused on long term growth of the E prescribing in the industry and have positioned ourselves well with our investment in this area in fiscal 2023 electronic prescribing is essential to the industry and as this technology conservative boost productivity cut down on news, whose compliance and improve.

Greg Crawford: Patient outcomes as of now less than 5% of our orders come from the <unk> prescribed and we anticipate this will grow significantly over time, giving us an opportunity to improve the patient prescriber and provider experience.

As of now, less than 5% of our orders come from e-Prescribe, and we anticipate this will grow significantly over time, giving us an opportunity to improve the patient, prescriber, and provider experience.

by eliminating inefficiencies and reducing paperwork.

Greg Crawford: Eliminating inefficiencies.

Greg Crawford: Inefficiencies and reducing paperwork.

Another key example of the use of technology is our automated resupply platform, which not only helps us drive organic growth and higher margin recurring revenue, but also provides us with considerable revenue synergies when we make strategic acquisitions.

Greg Crawford: Another key example of the use of technology is our automated resupply platform, which not only helps us drive organic growth and higher margin recurring revenue, but also provides us with considerable revenue synergies when we make strategic acquisitions.

The third element of our GERS strategy is expanding scale by making smart, accretive acquisitions in conjunction with our tried and true integration approach, which has effectively integrated 19 acquisitions since 2018, representing over $115 million of annualized revenue.

Greg Crawford: The third element of our growth strategy is expanding scale by making smart accretive acquisitions in conjunction with our tried and true integration approach, which has effectively integrated 19 acquisitions since 2018, representing over $115 million in annualized revenues are tension is on.

Our attention is on heavily weighted respiratory businesses, which can be successfully incorporated into our scalable infrastructure.

Greg Crawford: Heavily weighted respiratory businesses, which can be successfully incorporated into our scalable infrastructure.

Greg Crawford: Our strategy objective is to increase our payer base and geographic reach into advantageous geographies with a high prevalence in C. O P D. Thanks.

Our strategy objective is to increase our payer base and geographic reach into advantageous geographies with a high prevalence of COPD. Thanks to our healthy balance sheet, we will be able to take advantage of opportunities as they become available to grow our revenue, EBITDA, patient base, and overall geographic reach.

Greg Crawford: Our healthy balance sheet, we will be able to take advantage of opportunities as they become available to grow our revenue EBITDA patient base and overall geographic reach.

Greg Crawford: Given the continued strong performance of our business in real time.

Given the continued strong performance of our business in real time, we are actively engaging with investors from the United States and Canada to share our ongoing financial and operating achievements and discuss our long-term growth objectives. In calendar 2023, we participated in 10 investor conferences and expect to be very active throughout 2024 meeting with investors.

Greg Crawford: We're actively engaging with investors from the United States in Canada to share our ongoing financial and operating achievements and discuss our long term growth objectives in calendar 'twenty to 'twenty. Three we participated in 10 investor conferences and expect to be very active throughout 2020 for meeting with investors.

Moreover, we are thrilled to see our institutional shareholder base on both sides of the border continue to grow as we have moved through 2025.

Greg Crawford: Moreover, we are thrilled to see our institutional shareholder base on both sides of the border continue to grow as we have moved through 2022.

As we look to fiscal 2024, we will continue to drive organic growth, strive to grow our adjusted EBITDA margin further, which accelerated in the most recent fiscal quarter to 23.5 percent, and continue building our healthcare network across the country.

Greg Crawford: As we look to physical 2024, we will continue to drive organic growth strive to grow our adjusted EBITDA margin further which accelerated in the most recent fiscal quarter to 23, 5% and continue building our health care network across the country.

With our flexible capital structure, we continue to look at different ways to create shareholder value as appropriate and believe that our operational excellence and 1.4 times leverage balance sheet provide us with all the resources necessary to execute our expansion strategy.

Greg Crawford: With our flexible capital structure, we continue to look at different ways to create shareholder value as appropriate and belief and are operational excellence and one four times leverage balance sheet provide us with all the resources necessary to execute our expansion strategy.

I would like to conclude that we have been seeing consistent demand across our product mix in real time during fiscal Q1 2024 and look forward to sharing our fiscal Q1 results in February . Finally, I would like to take this chance to thank the whole QIP team for their tireless work and our stakeholders for their continued support.

We'd like to conclude that we had been seeing consistent demand across the product mix in real time during fiscal Q1, 'twenty 'twenty four and look forward to sharing our fiscal Q1 results in February finally, I would like to take this chance to thank the whole quip team for their tireless work.

Greg Crawford: Take holders for their continued support.

Speaker Change: Thank you.

Speaker Change: Now begin the question and answer session.

To join the question queue, analysts may press star then 1 on your telephone keypad. You will hear a tone acknowledging your request. If you are using a speakerphone, please pick up your handset before pressing any keys. To withdraw your question, please press star.

Speaker Change: To join the question queue analysts May Press Star then one on your telephone keypad, you'll hear Tony acknowledging your request if youre using a speakerphone. Please pick up your handset before pressing any keys to withdraw your question. Please press Star then two.

Our first question comes from Doug Cooper of Beacon Securities, please go ahead.

Speaker Change: Our first question comes from Doug Cooper of Beacon Securities. Please go ahead.

Good morning guys and congratulations on a great quarter. I just want to focus in, if I could, on the resupply program. You said in the press release, 169,000 patients now in the program. Can you give us an idea of what the average reorder rate is per patient for the year and what the average revenue per reorder is?

Hey, good morning, guys and congratulations on a great quarter I just wanted to focus in and if I could on the resupply program.

You said in the press release, the 169000 patients now in the program can you give us an idea of what the average reorder rate is per patient for the year and what the average revenue.

Speaker Change: For Reorders.

Speaker Change: Yes sure this is Greg.

Yes, sure. This is Craig. Doug. So we continue to see those go up kind of quarter over quarter in that. Right now we're seeing patients order in that just about three times a year. We're starting to see the average revenue in that to be just over $200 in that which is that's that's up about six, 7% in that from where it was this time last year or at the beginning of fiscal 23 Q1. So is that.

Greg Crawford: So we continue to see those go up kind of quarter over quarter isn't that right now we're seeing patients order and that just about three times a year.

We're starting to see the average revenue isn't that to be just over $200 and that which is.

Greg Crawford: That's up about six 7% in that from where it was this time last year or at the beginning of fiscal 'twenty through Q1.

Greg Crawford: So is that just to be clear that $200.

for the three times or $200 per reorder? No, that's, yeah, yeah, that's 200. That's just over $200 per reorder.

Greg Crawford: The three times or $200 per reorder no. That's yeah, yeah, that's 200.

Greg Crawford: That's just over $200 per reorder.

So if the average person is three times a year, that would be just over $600 per patient.

Greg Crawford: So the average.

Greg Crawford: Person touches every five years like it would be just over $600 per patient.

Okay, so $600 in just the math would be 600 times 169,000. That's $100 million. Is that where the run rate is on the resupply business? Yeah, that's it.

Greg Crawford: Okay, So $600 and just the math would be 600 times 169000, that's a $100 million.

Greg Crawford: Where the run rate is on the on the Res Department.

Speaker Change: Yeah, that's that's that's about right yes.

Speaker Change: Okay.

The other thing that we're kind of seeing in that side of the business, too, is the average items per order that go in there. That's another metric that we kind of watch. We continue to see that go up, too, so that's slightly increased, about 5 to 6 percent in that this year.

Speaker Change: The other the other thing that we're kind of see internet side.

Side of the business to what is the average items per order are they go in there that's another metric that we kind of watch them.

Speaker Change: We continue to see that go up too. So that's that's slightly increased about five years to 6% and that this year.

This is predominantly hoses and masks.

Speaker Change: Honestly the timing of the basin.

It's predominantly hoses and masks I'm guessing right.

Yeah, yeah, the cushions and the filters and tubes, water chambers, anything that needs replaced, which there's a lot of parts and pieces that need replaced in that on those.

Speaker Change: Yeah, Yeah, the the cushions in the filters tubes are water chambers.

Speaker Change: Things that need to replace which there's a lot of parts and pieces that need replaced in that on those.

Speaker Change: Devices.

One of your peers said on their conference call that the reorder business gross margin was 42% in and around there. Is that similar for you guys?

Speaker Change: Okay. One of your peers are.

On their conference call that the reorder business gross margin was 42% are in and around there is that similar for you guys.

Speaker Change: Yeah, Yeah, very similar and that for us.

Speaker Change: Okay.

So, because this is electronic, I guess, you know, the reorder business, the infrastructure is in place, so I'm guessing that the EBITDA contribution from the reorder business is much greater.

Speaker Change: So because this is electronic I guess, you know the reorder business.

Speaker Change: Infrastructure's in place so I'm guessing that the EBITDA contribution from the reorder business.

Speaker Change: Is much greater than the rental business.

Yes, and so the most rental items, yes, we do have some other higher margin and that rental items.

Yeah, yes, and some of the most rental items, yes, we do have some other higher margin in that rental items, but as far as an overall if you kind of looked at that side of the business and that is pretty automated so over 50% of the orders in that or what we refer to as no touch and that where the patient.

But as far as, and overall, if you kind of look at, you know, that side of the business and that is pretty automated.

Over 50% of the orders in that are what we refer to as no touch, and that where the patient has kind of either ordered through the app, they ordered via email, and it just kind of flows through right to the warehouse. And it doesn't need like a pre authorization or a new updated prescription or anything. So, as those are all kind of work proactively.

Speaker Change: Has kind of either ordered through the App dewatered via email and it just kind of flows through right to the warehouses it doesn't need like a preauthorization or a new updated prescription or anything. So that's those are all kind of worked proactively so when the patient does a request to get additional supplies.

So when the patient does request to get additional supplies, that's able to.

Okay, that's able to seamlessly.

So just to finish off and close the loop then. So if respiratory is 80% of your revenue, so you're running to say two, whatever that is, 275, I think Carter, you said, or you just retake the Q4 annualized, 80% of that. Right now we're about 255, 255 revenue with, yeah. Yeah, 255, 80% of that is 200 million.

Speaker Change: So just to finish off and close the loop and so if respiratory is 80% of your revenue.

Speaker Change: Are you running as they choose.

Speaker Change: Whatever it is 275 and at Carnegie Center, just reflects the Q4 annualized <unk> 80 per cent of that right. Now we're about we're about to be 55 to 55 run rate with <unk>.

Speaker Change: Yes.

Speaker Change: Yeah, 250, 580% of that is $200 million.

uh in the reorder business you know is that sort of 40 40 to 50 percent of your respiratory business is the resupply business?

Speaker Change: And the reorder business, you know is that sort of 40, 40% to 50% of your respiratory business as the resupply business now.

Oh, that sounds about right. Overall, that's a lot of places.

Speaker Change: Is that in the ballpark that sounds about right overall, that's a lot of them.

Speaker Change: Yes.

Sorry, Hardik, did you say that's not ballpark? Yeah, that's about right. Yeah, okay. Forty to fifty percent is a good ballpark.

Speaker Change: Sorry, how to use that as my bumper, yeah, that's about right yeah.

Speaker Change: Yep, Okay, 40% to 50% as of a ballpark range.

Just on the M&A strategy, you guys are obviously active and you've been successfully integrated with a bunch of companies. Your stock now trades about four times last quarter annualized, even does. So what are the prices you're seeing out there, and quite frankly, I'm assuming you guys are the fifth largest respiratory company in the US. There is bigger players than you who probably are looking at M&A as well. You much.

Speaker Change: Okay.

Speaker Change: Just on the M&A strategy and you know you guys are obviously active in you've been successfully integrated a bunch of companies. Your stock now trades about four times last quarter annualized EBITDA. So what are the prices you're seeing out there and quite frankly I'm. Assuming you guys are the fifth largest respiratory company in the U S. There is bigger players and you.

Speaker Change: We probably are looking at M&A as well.

Speaker Change: You must be on their radar I'm assuming now.

Speaker Change: [laughter] Oh, well that's what it is we can only speak about who we acquire that that's where they're not controlled so.

Well, as far as we can only speak about who we acquire, that's within our control. So, I guess.

Speaker Change: I guess.

It definitely has changed some dynamics, I think.

It definitely has changed some dynamics.

Speaker Change: I think.

The overall multiples for the targets we would typically go after have also seen some downward movements.

Speaker Change: And the overall multiples, Florida podcasts, we would typically go after have also seen some downward movements.

which at this point, if you're structurally right, I think there's still opportunities out there that we can.

Speaker Change: Which at this point if you structure it right I think there's still opportunities out there that we can.

uh acquire and uh make financial strength of uh sense of it right i mean at the end of the day we still have to

Speaker Change: Acquire and make financial strength.

Speaker Change: Okay, right I mean at the end.

Speaker Change: The day, we still have to I have two things that we have to keep in mind given the environment that we're in one is obviously you have an interest rate.

I have two things that we have to keep in mind given the environments that we are in. One is obviously you have an interest rate component going on.

Speaker Change: And then going on which.

We carefully monitor and evaluate that against the cash flow of our businesses that we acquire, so we want to at least make sure we come out on top of that. And then, and on the other side is what you just said, which is, you know, comparing our multiples to the target that you end up acquiring.

Speaker Change: We carefully monitor monitor and evaluate that against the cost of all of our businesses that we acquire.

Speaker Change: So we wanted to at least make sure we come out on top of that and then and on the other side is what you get side, which as you know companion automotive close to the target that you end up acquiring Oh, that's a little bit of a lesser concern quite frankly, because as you know for most of the companies that are quite if you go back and look at our <unk>.

That's a little bit of a lesser concern, quite frankly, because, you know, for most of the companies that we have acquired, if you go back and look at our average multiple on a post-close basis, I think that will still be less than kind of what our current trading multiples are. So that margin has compressed, given our share price and where they stand today, but I think for the right set of acquisitions, the numbers can still make sense.

Speaker Change: Multiple on a post close basis.

Speaker Change: I think that will still be less than kind of what I'll call them trading multiples are so that's.

Speaker Change: The margin has has compressed due in our share price and where do they stand today, but oh, but I think one of the right set of acquisitions.

Speaker Change: Most can still make sense.

Speaker Change: Okay.

Just my last question on the GLP-1 drug, thank you for your commentary, specifically around Q1. What are you hearing from those guys? You know, I listed out the ResMed conference call in the last quarter, same as you. They said they've seen no impact on the business. That was a few months ago. But these drugs have been out for a couple of years now.

Speaker Change: And just my last question on the G O P. One drug it and thank you for your commentary specifically around Q1.

Speaker Change: What are you hearing from from Res matter.

Speaker Change: Or are those guys you know I must stop as they resume the conference call in the last quarter same as ear. They said they've seen no impact on our business.

Speaker Change: You know that was a few months ago, but these drugs have been out for a couple of years now.

Speaker Change: And when do you think the market will realize that this is not having an impact just wondering what my life.

When do you think the market will realize that it is not having an impact? I'm just wondering what my light bulb is.

Speaker Change: Okay.

Yeah, that's actually a really good question. Doug, I can just tell you in real time and by looking at our results here and that we've just seen no slow down in our business and don't anticipate anything. I think it does make rational sense, so to think that if more patients.

Yeah, that's actually a really good question, Doug I can just tell you in real time and end and by looking at our results here and that we've just seen no slowdown in our business and don't anticipate anything I think it does make rational sense, though to think that if more patients.

do get in the pipeline in the funnel of the healthcare system, and they have sleep issues or anything in that, and maybe don't qualify for GLP-1s in that, that, you know, it could drive volumes even further. It's estimated that there's over 20 million Americans that haven't been diagnosed or treated yet for sleep apnea, so there's a pretty big tam there for us to still, and that have the availability in that service.

Speaker Change: You get into the pipeline in that and in the funnel all the health care system and they have a sleep issues or anything in that.

Speaker Change: And maybe you don't qualify for G O P. Once and that's it you know it could drive volumes even further.

Estimated that there's over 20 million Americans that haven't been diagnosed or treated yet for sleep apnea. So that's a pretty big Tam there for us to still isn't there.

Speaker Change: Have the availability of that service.

Right.

Okay, that's it for me guys. Congratulations on a quarter and happy holidays.

Speaker Change: Okay. That's it for me guys, congratulations on a quarter and happy.

Speaker Change: That'd be holidays.

Speaker Change: Thank you.

Speaker Change: Our next question comes from Thai calling of eight capital. Please go ahead.

Our next question comes from Ty Collin of Eight Capitals. Please go ahead.

Hey, good morning guys. Thanks for the question. First one for me just on the on the margin outlook for next year. Are you kind of still seeing room for meaningful improvement there on an organic basis like you were able to achieve this year? And if that is the case, what are what are sort of the low hanging fruits there where where those

Thai: Hey, good morning, guys. Thanks for the question first one for me just on the on the margin outlook for next year or are you kind of still seeing room for meaningful improvement there on an organic basis like you were able to achieve this year and if that is the case what are what are sort of the low hanging fruits there were aware of those.

Thai: Entities.

Speaker Change: Thanks, Cai, but for the question I guess from a from a modeling perspective, if that's kind of the driving force behind the question.

Thanks for the question, I guess, from a, from a modeling perspective, if that kind of the driving force behind the question, I mean, we've always taken a conservative approach and I would say, you know, from a modeling internally, we suddenly model for what we currently have that has been.

We've always taken a conservative approach and I would say yeah.

Speaker Change: Our modeling internally be suddenly modeled for.

What we currently have that has been.

uh some recent uh price increases that we have seen which we have you know we were able to offset that using some other uh opportunities uh from a low-hanging food perspective uh so I would say from uh for a calendar 2024 uh what do you see for you know uh sorry for a fiscal 2040 what do you see for fiscal 2023 I think that is still within a good plus and minus five percent range in terms of margin

Speaker Change: Some recent price increases that you have seen which we have able.

Speaker Change: Are you able to offset that using some other apportion. It is from a low hanging food perspective, So I would say from a part of our calendar 2020 for Oh, what do you see for.

Speaker Change: Oh, sorry for all of fiscal 'twenty before they wanted to see if our fiscal 'twenty. Three I think that is still a again, a good plus or minus 5% range in terms of margins.

Speaker Change: 5% overhead in Greenville, the status quo, not not soma actual absolute swings.

5% of the status quo, not from an actual absolute swing scale.

Speaker Change: Right right right, Okay got it got it.

Speaker Change: And then maybe sticking on that theme, there's some pretty strong sequential improvement here on the gross margin rate. It looks like about 150 bps quarter on quarter can you provide a little more context on how you were able to do that.

Speaker Change: And maybe if there's any trends to take note of there.

Speaker Change:

I mean, nothing certainly in particular, I would say, I mean, this is a little bit of a year-end audit situation. So there are sometimes adjustments that flow through in your Q4, which could be spread across a little bit farther out. But, I mean, we always say, you know, let's not look at quarters, look at at least two, three quarters in a row. Or in this case, you could look at, you know, kind of the whole fiscal year.

Speaker Change: No nothing nothing suddenly and in particular, our I would say I mean, this is a little bit of a year end audit situations. So there are sometimes adjustments that are sort of cleaning up to four which.

Speaker Change: It could be spread across a bit farther out.

Speaker Change: But I.

Speaker Change: I mean, we always say you know when I look at quarters look at it through three quarters in a row or in this case, you're going to get you know kind of the whole fiscal year.

kind of to look at direct.

Speaker Change: Uh huh.

Speaker Change: Look into actions.

Speaker Change: Okay, Great and then last one for me I'm circling back to some of the earlier questions on the resupply patients.

Okay, great. And then last one for me, circling back to some of the earlier questions on the resupply patients, what's sort of the average duration of your relationship with a resupply patient? Is it, you know, whether you're measuring that in quarters or years? I think that would be helpful to round out.

Speaker Change: What's sort of the average duration.

Speaker Change: Of your relationship with a resupply patient does it.

Speaker Change: Whether you're measuring that in quarters or years, I think that'd be helpful to round out that discussion.

Yes, sure. This is Greg and that we estimate that to be about four and a half years in that the five years that the average resupply patient is around. Okay, great. That's really helpful. Thanks for the.

Speaker Change: Yes, sure this is Greg and that.

Greg Crawford: We estimate that to be about four and a half years and after five years. The average resupply patient is around.

Speaker Change: Okay, Great. That's real helpful. Thanks for the questions guys.

Thank you.

Speaker Change: Thank you.

Speaker Change: Our next question comes from Richard close of Canaccord Genuity. Please go ahead.

Our next question comes from Richard Close of Canaccord Genuity. Please go ahead.

Yeah, thanks for the questions today. Hardik, maybe if you could just go over the organic growth numbers for the fourth quarter and for fiscal 23 to begin with here.

Richard Close: Yeah, Thanks for the questions today.

Richard Close: So maybe if you could just go over the organic growth.

<unk> for the fourth quarter and for fiscal 'twenty three.

To begin with here.

Sure, thanks. Thanks for that question, Richard. I mean, if we go back and look at our fiscal 23, our organic growth rate year over year came around 6.7 to 7% from an organic perspective, and it gets a little tricky because, you know, you have companies that are part of the year.

Richard Close: Sure.

Speaker Change: Thanks for thanks for that question Richard I mean, if we go back and look at it at all so I suppose.

Speaker Change: 23.

Our organic growth rate year over year and came around a 6.7% to 7% Oh from a organic perspective. It gets a little tricky because you know you have companies that are quality are.

In both periods, so, so there is a little bit of art to science, but that's that's something that 6.7 to 7% is what we believe are organic growth.

Speaker Change: In both periods. So so that is a little bit of art at the science, but that's a that's something that $66, 7% to 7% is what we believe our organic growth.

was for fiscal 2023. If we look at our

Speaker Change: Last fall of fiscal 2020 feet and probably if we look at our.

Speaker Change:

We're organic growth and break, pick that down a little bit further. You know, the first half of fiscal 2023 had a lower organic growth rate, we know we were still recovering from some of the product issues and stuff like that.

Speaker Change: Although our organic growth and break that down a little bit further are you know the first half of our fiscal 2023 had a lower organic growth rate.

Speaker Change: We were still recovering from some of the product issues and stuff like that and.

And then the second half of the fiscal 23 had a little bit, had larger than, you know, the 7% corporate. So.

And Oh, and then the second half of the fiscal 'twenty three had a had a little bit larger than the 7% and quickly. So if you are.

If you break that down into two halves, then they both had a little bit different, but the average is around that.

Speaker Change: If you break that down into two halves than they've got both had a little bit differently, but the average is around that.

And then for the quarter, you know, we are kind of strong at about 3%.

Speaker Change: And then for the quarter you know we are kind of strong at about 3%.

Speaker Change: Okay.

Speaker Change: And.

And then with respect to bad debt, it picked up a little, I guess, sequentially. Was there anything, I mean, obviously strong improvement year over year, but maybe a little tick up from third quarter to fourth quarter. Was there anything specific driving that or was the year end clean up or anything along those?

Speaker Change: And then with respect to bad debt it tick up a little I guess sequentially was there anything specific I mean, obviously strong improvement year over year, but maybe a little tick up from third quarter to fourth quarter was there anything specific driving that or what the year end cleanup.

Speaker Change: Or anything along those lines.

Oh, I would say I mean, it's a it's a slow and steady process on all of that we continue to work on it kind of chabad it along the way.

Uh, I would say, I mean, it's a, it's a slow and steady process on our end. We continue to work on it, kind of she bet it along the way, there weren't suddenly any traumatic or drastic changes. It's just, you know, when we acquire great, we also adopted some of the practices that came along with that. And I think what you're seeing is a is a kind of a weighted average number for better than revenue.

Speaker Change: Suddenly any dramatic or drastic changes.

Speaker Change: It's just you know when we acquired them.

Speaker Change: Some of the practices.

Speaker Change: That came along with that.

Speaker Change: And I think what you are seeing as a cause.

Speaker Change: A kind of a weighted average number for banking in revenue.

Speaker Change: Of the combined entities.

Okay, having said that we, sorry, we have always said, you know, that is an area that we believe that there is a portion that needs to continue to work on.

Okay, you'd be better forever, I mean, having said that we saw.

Speaker Change: We have always said you know.

Speaker Change: That is.

Speaker Change: An area that we.

We believe that that is a portion of it is to continue to work upon.

Speaker Change: Okay.

helpful. You beat our revenue estimate in the quarter. I guess consensus I had is 62.9 million, so maybe a little bit below that. Was there anything specific maybe to the fourth quarter that, you know, didn't come through in the quarter?

Speaker Change: That's helpful. You beat our revenue estimate in the quarter.

Speaker Change: I guess consensus I had is 62 point I know yet so maybe a little bit below that was there anything specific maybe to the fourth quarter that.

It didn't come through in the corridor.

that you can call out or anything to note there. I mean, obviously you're talking about the first quarter sounds like things are going extremely well for the first quarter, but just curious if anything slipped.

Speaker Change: You can call out or anything to note. There I mean, obviously, you're talking about the first quarter. It sounds like things are going extremely well for the first quarter, but just curious if anything slipped.

Yeah.

Speaker Change: Yeah, Hey, I Ah Ah Ah.

Yeah. Hey, I respect to the consensus, but sometimes, you know, you really can look at it. I mean, from that perspective, some people don't get the forecasting right, quite frankly. But if you look at, you know,

Speaker Change: Back to the to the consensus, but sometimes you know we can look at it I mean.

Speaker Change: From combat perspective, some some people don't get the.

Speaker Change: The forecasting right quite frankly, but if you. If you look at you know we love the comparison to the third.

without the comparison to the consensus here. I mean, you know, on a gross basis, I mean, there's a pretty strong 3.7% organic growth. If we take out the month of Southern Pharmaceuticals, that'd be, I mean, it's still about three and a half percent. So it's a pretty strong organic growth for the quarter. I understand.

The consensus here I mean, you know on a gross basis I mean, they were pretty strong three 7% organic growth. If you take out the month to month of southern Pharmaceuticals, that'd be a I mean, it's still about three 5%. So it's it's a pretty strong organic growth for the quarter Oh I understand.

from a consensus is really shy, but I mean, we were kind of very pleased with Malcolm.

From a consensus is a little side, but.

Speaker Change: I mean, we were very pleased with the outcome.

Speaker Change: Okay.

Speaker Change:

As we're thinking about fiscal 24, I know you guys don't give guidance.

Speaker Change: As we're thinking about fiscal 'twenty four I know you guys don't give guidance.

Speaker Change:

You know, it sounds like you have acquisitions in the pipeline. I think consensus for fiscal 24 on revenues about 270.1 million. I think some people bake in acquisitions to their numbers. So I'm just curious, maybe how you feel about that number.

Speaker Change: It sounds like you have the acquisitions.

Alright.

Speaker Change: I think consensus for fiscal 'twenty four odd revenues about 270.1, OEM I think some people baked in acquisitions I'm sure their numbers. So I'm just curious maybe how you feel about that number.

For fiscal 24 the consensus and then how you're thinking about the acquisition pipeline in terms of timing

Speaker Change: Fiscal 'twenty for the consensus and then how you're thinking about the acquisition pipeline in terms of timing.

Sure. So I guess you're right. We certainly do not provide guidance in the way others do. I guess one way to think about it is kind of what we said is our runway, which is analyzing our last quarter. So that's a good starting point. I mean, you

Sure.

Speaker Change: I guess I mean, you're right, we only don't do not provide guidance.

Speaker Change: Guidance in the it and the way where are those two I guess, one way to think about it is kind of what we said is a run rate basis quarter annualized last quarter right. So that's a good starting point I mean, if he had called and industry are getting book laid off somebody.

if you throw an industry organic growth rate of somewhere between five, six, seven, I think that's a good modeling exercise from my perspective. We certainly have tried and achieved to beat the market. If you look at last five years on an aggregate basis, we have witnessed more organic growth than the market averages, but that's kind of what I would encourage analysts to look at and evaluate based on that.

Speaker Change: Between 567, I think that's a good modeling exercise from my perspective, we certainly have tried and achieved to beat the market. If you look at the last five years on an aggregate basis, we have.

Speaker Change: International organic growth than the market.

Speaker Change: Average is but that's that's kind of what I would.

Speaker Change: And credit analysts to look at and evaluate based on that Oh, you're right that some analysts have consider consider acquisitions.

You're right, some analysts have...

consider acquisitions in their pro forma, which is why, kind of the reason why the whole consensus sometimes is, it's not a way to look at our company and our numbers.

Speaker Change: Acquisitions in their pro forma which is why kind of the reason why the whole consensus sometimes there's a it's not a way to look at our company and our numbers.

Yeah in terms of our acquisition pipeline and how we think about it I mean, my response to Doug earlier is kind of aggregated flats.

Yeah, in terms of acquisition, the pipeline and how we think about it, I mean, my response to Doug earlier is kind of accurately flat.

what we have in mind. I think our opportunity is 100% without a doubt, but we suddenly want to be more disciplined. We've been adequately disciplined the whole time, but I think even given the situation in terms of higher interest rates,

Speaker Change: What we have in mind.

Speaker Change: A portion of it is 100% without a doubt.

But when you're suddenly Wanda we bought discipline.

Speaker Change: We we have been.

I didn't quickly disciplined the whole time, but I think even given the situation in terms of higher interest rates are and how the stocks performed and the arbitrage between or multiples versus what we buy so I think we will continue to responsibly.

And how the stocks perform and the arbitrage between, you know, our multiples versus what we buy. So I think we will continue to responsibly deploy our capital and won't shy away from making the right acquisition.

Responsibly deploy our capital and Oh, one shy away from making that like the acquisition.

Speaker Change: Okay all right. Thank you.

Speaker Change: Thank you.

Our next question comes from Michael Freedman of Raymond James. Please go ahead.

Our next question comes from Michael Freeman of Raymond James. Please go ahead.

Hey Greg, hi Hardik. Congratulations on a really strong finish to the year and thanks very much for taking our questions.

Michael Freedman: Hey, Greg Congratulations on a really strong finish to the year and thanks very much for taking my questions.

It's about a year, hence, the grade-on acquisition. I wonder if you could describe, you know, the status about integration, any major efforts that are ongoing there, and, you know, being a year after this acquisition, I wonder if you could describe how this asset is positioned today within the equipped ecosystem and how we might see it evolving into the future.

Michael Freedman: It's about for about a year, hence the great.

Michael Freedman: Acquisition.

Michael Freedman: I Wonder if you could you could describe.

Michael Freedman: The status of that integration any major efforts that are ongoing there and being a year or year. After this acquisition I Wonder if you could describe how this asset is positioned today within equipped ecosystem and how we might see it are evolving into 2024.

Michael Freedman: Okay.

Yes, thanks, Michael, for the question. And that it's been fully integrated in that, obviously, and that on to our platform and everything, we've been very, very pleased in that with the results and that it's not, you know, it's really outperformed. And that's probably a little bit better than we were expected. We believe, as we get into 24 of that.

Speaker Change: Yes, Thanks, Michael for the question and that it's been fully integrated and that obviously in that onto our platform and everything we've been very very pleased with the results and that is if not you know, it's really outperformed and that's probably a little bit better than we were expected.

Yes.

We believe as we get into 'twenty four does that.

We've still got a lot of opportunity in that to cross out.

Speaker Change: We've still got a lot of opportunity in that to cross sell other product lines through there such as home oxygen and ventilation that we.

other product lines through bears such as home oxygen and ventilation.

We've primarily been focused on the sleep side, the disposable supply side, we just got that.

Speaker Change: Primarily been focused on the sleep side, the disposable supply side, we just got that integration finalized there and just about towards the end of summer.

integration finalized there in just about towards the end of summer. So we've been seeing some nice numbers come out on the resupply side and then of course.

Speaker Change: So we've been seeing some nice numbers come out on the resupply side they had been of course.

in that we've really been focused on the sleep there, so we believe that's where we still have a lot of opportunity in that, trying to go on in 2024.

Speaker Change: We've really been focused on the sleep there. So so we believe that's where we still have a lot of opportunity in that kind of going in to 'twenty four.

Speaker Change: Yeah.

Speaker Change: Yeah.

Speaker Change: Okay, Alright, that's helpful.

We've there's been a lot of discussion on this call on recurring revenue and the resupply programs you guys drive, you know, you're, you're posting.

Speaker Change: There's been a lot of discussion on this call on our recurring revenue and the resupply programs. So you guys drive.

Speaker Change: You're posting.

relatively high proportions of recurring revenue. I wonder what, if you could describe what Crip is doing on the ground to enroll patients in these resupply programs and other aspects of your recurring revenue.

Speaker Change: The relatively high proportion of recurring revenue I wonder what if you could describe what <unk> is doing on the ground to to enroll patients in these in these research programs and other aspects of your recurring revenue.

Speaker Change: That's all.

Yeah, sure. So we continue to grow in that our new device setups, we've actually seen a really nice uptick in our active rentals in that in our sleep devices.

Speaker Change: Yeah sure. So we continue to grow in that are on a new device setups, we've actually seen a really nice uptick in our active rentals and that in our sleep devices.

And then we're also in that working internally and that to continue to get patients compliant in that. So we've seen our compliance rates in that take up a couple percentage points in that throughout calendar 23. So we're going to continue to make investments and resources in that to get more patients, more patients we get compliant, more patients that go into the resupply program.

And then we're also working internally and that too.

Speaker Change: Continue to get patients compliant and that so we've seen our compliance rates in that tick up a couple of percentage points and that throughout calendar 'twenty. Three so we're going to continue to make our investments and resources and I have to get more patients and more patients we get compliant.

Speaker Change: For patients that go into the resupply program.

Okay terrific.

Okay, terrific. I think it's squeezed just one more in.

Speaker Change: Just one more in.

One big shift that we've noticed from 22 to 23 is the, is the shift from sort of positive to negative EPS. And I wonder if you could, you could.

Speaker Change: One thing shift.

Speaker Change: You can notice from 'twenty two to 'twenty three is the is this sort.

Speaker Change: So it's positive to negative EPS today I Wonder if you could you could.

provides sort of a rough outlook for 2024 in respect to.

Speaker Change: Provides sort of a rough outlook for 2024 in respect to earnings.

Speaker Change: Sure.

Sure, thanks for that question. If you compare year over year, you'll see some of the few contributors for the positive cash flow, or not cash flow, my bad, positive EPS and net income were related to a couple of one-time items back in 2022. The biggest one was

Speaker Change: Thanks for that question. If you are comparing year over year, you'll see some of the few contributors are part of the positive cash flow.

Speaker Change: Our cash flow my bad.

Speaker Change: EPS and net income.

Speaker Change: Sure.

A couple of onetime items.

Speaker Change: Back in 2022 of the biggest one was.

related to forgiveness of the government grants that companies like us receive through COVID.

Related to forgiveness of the government grants that companies like us we seem to go in.

So things of that nature were definitely helpful in the positive EPS at the end of last year in terms of 2023, the factors against us is.

Speaker Change: So with things things things of that nature.

Speaker Change: Definitely helpful.

Speaker Change: The positive EPS at the end of last year.

Speaker Change: In terms of 2023.

Speaker Change: The fact of.

Speaker Change: Against us.

Speaker Change: Is suddenly the higher interest rate is.

certainly the higher interest rate is depressing the margins. But as far as going into the future, I would say it would be either neutral or slightly negative, and most of that will be attributed towards higher depreciation, amortization, and interest expenses that is expected at least in the next two years.

Speaker Change: As depressing the margins, but as far as going into the future I would say it would be it would.

Speaker Change: Be either neutral or slightly negative and most of that will be continued.

Speaker Change: The attribute them towards higher Ah Ah.

What are you seeing kind of amortization and interest expenses that is expected in the next two years.

Speaker Change: Yeah.

Speaker Change: Okay. Thank you very much I'll pass it along.

Speaker Change: Yes.

Speaker Change: Our next question comes from Bill Sutherland of Benchmark Company. Please go ahead.

Bill Sutherland: Thank you Hey, guys.

Greg, can you update us on Salesforce, where it sits right down and what the growth was in it?

Bill Sutherland: Greg could you update us on the sales force.

Greg Crawford: Where where it sits right down and what the growth wasn't it.

Greg Crawford: Yeah.

Speaker Change: Yes, sure and that.

Yes, sure. So we're up to in kind of real time in that. We're up to about 90 and not just over 90. So we've seen really nice growth in the sales force.

Speaker Change: So we're up to in that.

Speaker Change: Kind of real time and that we're up to about 90 in not just over 92.

Speaker Change: We've seen really nice growth in the sales force.

We've seen it both and really there's two sides of our business when we look at sales, we have our general HME in our respiratory and then we also have our custom power mobility with the ATPs and we've seen nice recruitment on both sides of that.

Speaker Change: We've seen it both in and really there's.

Two sides of our business when we look at sales, we have our general HEB and our respiratory and then we also have our custom power mobility with the a T P.

Speaker Change: And we've seen nice recruitment and that on both sides of that.

And so that's up, I think the number you gave us last call was in the 70s, right? Yeah, within the, yeah, around 72 or so. So we're setting that down.

Speaker Change: And so that's I think the number you gave us last call was in the seventies right.

Speaker Change: Yeah, we didn't say, yes around 72 or so.

Speaker Change: So we're sitting there.

Speaker Change: Is it.

Speaker Change: So we're sitting just over 90 right now.

In real time.

Were the ads partly the result of the acquisition in September ?

Speaker Change: Where would the ads, partly the result of the acquisition in September.

Speaker Change: There there were a few in there, but not like two or three that would have been considered sales okay, but that's got rents have all been have all that new hires.

There were a few in there but like two or three that would have been considered sales. Okay. But the rest have all been new, have all been new hires.

Speaker Change: So it doesn't it doesn't completely.

Speaker Change: Yeah.

Can you update us on the insurance contracting front where you stand with some

Speaker Change: Yes, yes in Europe can you update us on the insurance contracting front, where do you stand with some.

big negotiations and what you're expecting on rates out of that.

Speaker Change: Some big negotiations and what you're expecting on rates.

Speaker Change: Out of that.

Speaker Change: Yes sure.

Yes, sure, and we continue to work with some of the larger payers in the U.S., such as Anthem and Cigna, and there are a couple in that that we're continuously evolving in that on contract negotiations with them. We did add Aetna earlier in the year.

Speaker Change: We continue to work with some of the larger players in that in the U S such as anthem and Cigna in matter of couple of months.

Speaker Change: We're continuously.

Speaker Change: Evolving in that on contract negotiations with them did aetna earlier in the year.

Then there's also in that some other programs out there in that, another one, CINTEAM, in that that has a lot of the state Medicaid.

There's also in that some other programs out there and that another 117.

Speaker Change: It has a lot of the state.

Speaker Change: State Medicaid.

Advantage programs and also a lot of Medicare Advantage programs were accepted. Not a lot around the country right now in that, but it's not on the national contract. So that's one that we're looking to put all the locations and companies in that under one contract.

The advantage programs and also a lot of Medicare advantage programs.

We're accepting that a lot around the country right now in that but it's not on a national contract. So that's one that we're looking to put all of the locations in companies in that under one contract.

There's also been several regional contracts that have been signed in that throughout the course of the year and that too that we don't necessarily announce, they're not on a national level in that, but they are on a more of a regional type level or within a state.

There's also been several regional contracts that have been signed.

Speaker Change: Throughout the course of the year and that too that we don't necessarily announce they're not on a national level in that but they are on a more of a regional type level or within it.

Speaker Change: State.

And these are, and you're contracting with both sides of these, uh, these companies, right? Both the commercial and the, and the Medicare, and I guess Medicare.

Speaker Change: And these are and you're contracting with both sides of these.

Speaker Change: These companies right.

Herschel and are in the Medicare and I guess Medicare advantage.

Yes, it would be for all their commercial lines, Medicare Advantage lines, and also the Medicaid, state Medicaid Advantage lines.

Speaker Change: Yes, yeah, it would be for all of their commercial commercial lines are Medicare advantage lives.

Speaker Change: And also of the Medicaid State Medicaid advantage lines.

Speaker Change: Mhm.

Are you seeing any deals where

Speaker Change: Are you.

Speaker Change: Are you seeing any.

Sales were.

Speaker Change: It would be part of like a sub capitation picking your Medicare advantage some of those.

Speaker Change: That's in that side.

Speaker Change: Yes, we are and that there are some things right now in that that are currently in the very very very early stages and that that.

Speaker Change: Or more it seems like a 25 and that type thing.

A few of the payers and are starting.

Speaker Change: To negotiate and figure out what options are in that as it comes to 'twenty five in that and how they're gonna do contracting I think typically they were about a year.

Speaker Change:

Speaker Change: Out in that on the contracting piece and then they can go out and sell this to the Medicare beneficiaries will be up.

Enrollment comes in.

Speaker Change: Calendar Q4 of 'twenty four 'twenty.

Speaker Change: 25 service year.

Speaker Change: So you guys are.

Speaker Change: [laughter] going through the exercise of figuring out what the risk.

Speaker Change: Those who are willing to.

Speaker Change: Yeah.

Speaker Change: Do you have a very predictable business. So there shouldn't be too hard for you right.

Speaker Change: Yeah, Yeah, I mean, we have it's actually and that had catheter dated contracts or anything like that but we do have a very clear handle on that.

Speaker Change: What it cost us to operate so with sensus and that we could get a pretty good idea about what that would look like.

Yes, okay.

Speaker Change: Great.

Speaker Change: Great quarter, Thanks, guys I appreciate it.

Speaker Change: Thank you Bill.

Speaker Change: Our next question comes from Julian Hung of Stifel. Please go ahead.

Julian Hung: Hi, This is Julian subbing in for Justin Today. My first question is on our recent labor challenges and strikes within the health care industry have you seen any impact on quipped in any way and on the flip side does it increase the man for home health care.

Julian Hung: Okay.

Speaker Change: Yeah, so as far as the labor strikes or anything that hasn't affected quite directly.

Speaker Change: Maybe in some markets, it's affected us indirectly it now with a slow into referrals and that in our West coast operations is that that would have happened in that dream.

Speaker Change: Our.

In calendar Q3, I'm sorry.

Speaker Change: But nothing odd there was like a directed direct impact from an employment standpoint or anything.

Speaker Change: We've been pretty steady in that with our recruitment efforts and our retention efforts and that.

Speaker Change: Throughout twenty-three excuse my voice I'm about ready to lose here once again.

Speaker Change: I'm curious so if you can.

Speaker Change: It gives me great.

Speaker Change: Yeah.

Speaker Change: And I had another question about the Medicare with deductibles and premiums going up starting next month at 6%, which is a bit higher than usual does that potentially impact how much of revenue you can make.

Speaker Change: Well, it could potentially and that impacted our bad debt expense.

Speaker Change: You know not necessarily how much not.

Speaker Change: Well I guess in that because we're still going to have the topline revenue, but it's going to be there for the patient.

But we wouldn't anticipate anything that would move the needle or anything with that increase.

Speaker Change: Most of those Medicare patients and that would have some type of secondary anyway, or otherwise they'll likely set up payment plans like they have historically.

Okay and just one last question on the potential merger talks between Humana and Cigna, even though it did fall through.

Speaker Change: How would it have impacted insurance rates and you mentioned you were working with Cigna was there any impact on that.

Speaker Change: But no impact in that from us obtaining our national insurance contract or anything in that I mean at least immediately and that is in the ground or anything we weren't getting the feedback that so you know.

Speaker Change: As far as predicting more rates you know would have gone in that that's a really tough one to do.

Speaker Change:

Speaker Change: Most of these large payers in that that if you're providing value added service.

They are open to rate negotiations in that in order to help keep these patients in Oh.

Speaker Change: For home based care.

Alabama hospitals and facilities.

Got it. Thank you so much for taking my questions.

Speaker Change: Thank you.

Speaker Change: Our next question comes from Richard close of Canaccord Genuity. Please go ahead.

Richard Close: Alright, Yeah, just a follow on to Bill's question on the sales force.

Richard Close: Are there any <unk>.

Richard Close: Targets associated with our fiscal 'twenty, four where you'd want.

Richard Close: Why don't be exiting 'twenty four.

Richard Close: With a certain number of sales numbers just curious there.

Speaker Change: Yeah, yeah, not as of yet in that I mean, we had a areas.

Speaker Change: Or is that.

Speaker Change: We wanted to continue on areas that we wanted to add the salesforce to I feel that we've achieved if.

Speaker Change: If not exceeded this year.

Speaker Change: But.

Speaker Change: We haven't had a set number or anything yet in that for 'twenty for let's say that we want to cover we do still have a lot of ground in that to cover in that with continuum areas as it relates to operations west of the Mississippi most of the hiring that we've seen has been in our in the.

Speaker Change: South east in the Midwest.

Speaker Change: Okay, and when you guys add cause he added a chunk I guess since you last reported.

Speaker Change: Hum.

Speaker Change: I'm just curious how long does it take for a salesperson to ramp up and really become effective.

Speaker Change: Yeah typically in that about two quarters, you know six months or so.

Speaker Change: We can usually get a pretty good idea that after 90 days isn't that whether or not they're going to be able to make their targets and things, but typically before the really contributing youre looking at.

Speaker Change: Fixed a six to nine months typically about six months.

Speaker Change: Okay.

Speaker Change: And then he was.

Respect the past, perhaps supply can you talk a little bit about the us.

Speaker Change: Why change the dynamics.

Speaker Change: Maybe what you're seeing on the pricing front.

Speaker Change: Sorry, I'm not sure I. This is Jorge sorry, I'm not sure I follow the question Kenny can you replace that piece.

Yeah I was just curious.

Speaker Change: Be asleep.

Speaker Change: Supply use C. Pap says that it has improved over the course of fiscal 'twenty. Three I'm. Just curious you know whether there's anything to be aware of in terms of you know.

Speaker Change: The current levels are you at all or.

Access to units a CPAP units for you guys, whether theres been any pricing changes in the market at all or are you.

Speaker Change: Yeah sure Yeah.

Yes, I mean at this point that the product that they may be is not Ah as myself an issue I think we are able to get between media suppliers are the products that we are looking for.

Speaker Change: The rest of them I did have a price change I can was there something besides so late in the second.

Speaker Change: Mid mid calendar 2023, Oh, and they think they're surprised they create some surcharges and stuff like that so I think what you are seeing here in Q4.

Speaker Change: Q4, I think you are seeing more of a baseline.

Speaker Change: Baseline on a run rate.

Speaker Change: Uh huh.

Speaker Change: Going forward.

Speaker Change: At this point there has not been much of a visibility.

Speaker Change:

Speaker Change: Suddenly not a product Oh baby, nor on a on a price increase.

Speaker Change: So we don't have any information of course suggest that you will see any of those.

Speaker Change: Yeah.

Okay. Thank you.

Speaker Change: Yeah.

Speaker Change: This concludes the question and answer session I would like to turn the conference back over to Greg Crawford for any closing remarks.

Greg Crawford: Thank you operator, and thank you all for your participation today as always you can find this on the web at Www quipped whole medical dotcom, where would we be posting a transcript of this call and also updating our investor deck on the site. You can also view some of them are exciting products and developments discussed on the call. Thank you and happy holiday.

Greg Crawford: Yes.

Greg Crawford: This concludes today's conference call you may disconnect. Your lines. Thank you for participating and have a pleasant day.

Greg Crawford: [music].

Greg Crawford: Okay.

Yeah.

Greg Crawford: [music].

Greg Crawford: Yeah.

Greg Crawford: Hum.

Greg Crawford: Yeah.

Greg Crawford: Yeah.

Greg Crawford: Yeah.

Greg Crawford: [music].

Greg Crawford: Yeah.

Greg Crawford: Yeah.

Greg Crawford: Yes.

Yeah.

Greg Crawford: [music].

Greg Crawford: Yeah.

Greg Crawford: Yeah.

Greg Crawford: Hum.

Greg Crawford: Yeah.

Greg Crawford: Okay.

Greg Crawford: Yeah.