Posted on November 16, 2021 by Scott Shuda
Quipt Home Medical Corp. (QIPT) has been a high-profile name within the Breakout Investors community for over a year. The company provides durable medical equipment and related services primarily relating to respiratory care (respirators, concentrators, CPAP machines). Quipt is really the little engine that could, overcoming one hurdle after another as it chugs its way along its business plan.
Everything with the business seems right–good business, good strategy, good team, yet the stock has thus far been unable to acquire sufficient momentum to breakout to higher ground.
The obstacles the company has had to tackle and overcome are understood and discussed in dozens of posts about the company posted on the Breakout Investor Platform (BIP). One of particular note and written by me is entitled, “Why I Believe QIPT will Double or Triple From Here.” I wrote that post back on June 6, 2021 and believe the arguments to to be equally if not more true today. Particularly after this morning’s press release and the guidance put out by the company for fiscal and calendar year 2022.
The deal, announced by press release, announced that Quipt has executed a letter of intent to acquire a undisclosed Midwestern company with trailing 12-month annual revenues of approximately $13 million. A recent post on BIP, “Quipt is on track for 50% annualized inorganic growth.” This was affirmed today in updated guidance by the company as part of announcing the new acquisition. “Based on the current business, market trends and completed and prospective acquisitions, the Company is providing guidance for its run-rate revenue for end of calendar 2022 (fiscal Q1 2023) of $180 to $190 million with $38-$43 million in Adjusted EBITDA…As a reminder our balance sheet remains very solid with over $30 million in cash and an untapped $20 million credit facility, giving us ample flexibility as we continue on our strategic path.”
Interested investors should also take note of the series of articles published on Seeking Alpha by Breakout Investor, Aaron Warwick. Finally, check on the Breakout Investor page on YouTube, and particularly the July 7, 2021 Call with Management of Quipt.
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Disclosure: I am long QIPT and might buy or sell shares at anytime.