Richard Close: Okay. As we’re thinking about fiscal ‘24, I know you guys don’t give guidance. 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 for fiscal ‘24, the consensus, and then, how you’re thinking about the acquisition pipeline in terms of timing?
Hardik Mehta: Sure. So I guess in, you are right, we certainly don’t — 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 we’re analyzing our last quarter. So that’s a good starting point. I mean, if you throw an industry organic growth rate off somewhere between 5, 6, 7, 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 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. You are right, some analysts have considered acquisitions in their proforma, which is why, kind of the reason why the whole consensus sometimes it’s not a way to look at our company and our numbers, in terms of acquisition, the pipeline and how we think about it.
I mean, my response to Doug earlier is kind of accurately reflects. What we have in mind, there are opportunities hundred percent without a doubt. But we certainly want to be more disciplined. We’ve been adequately disciplined the whole time, but I think given the situation in terms of higher interest rates and how the stocks performed, and the arbitrage between 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.
Operator: Our next question comes from Michael Freeman of Raymond James.
Michael Freeman : Hardik congratulations on a really strong finish to the year, and thanks very much for taking our questions. It’s about — we’re about a year hence for the Great Elm acquisition. I wonder if you could, you could describe the status of that integration, any major efforts that are ongoing there, and being a year after this acquisition, I wonder if you could describe how this asset is positioned today within the Quipt ecosystem and how we might see it, uh, evolving into 2024?
Hardik Mehta : It’s been fully integrated in that, obviously in that onto our platform and everything. We’ve been very, very pleased in that with the results in that if not, it’s really outperformed and that’s probably a little bit better than we were expected. We believe as we get into ‘24 and that we’ve still got a lot of opportunity in that to cross sell other product lines through there, such home oxygen and ventilation. And that we’ve 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. So we’ve been seeing some nice numbers come out on the resupply side and then of course, and 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 kind of going into ‘24.
Michael Freeman : There’s been a lot of discussion on this call on recurring revenue and the resupply program. So you guys drive you’re posting relatively high proportions of recurring revenue. I wonder what, if you could describe what Quipt is doing on the ground to enroll patients in these resupply growth programs and other aspects of your recurring revenue profile.
Hardik Mehta : So we continue to grow in that our new device setups. We’ve actually seen a really nice uptick in our active rentals in our sleep devices. And then we’re also in that working internally in that to continue to get patients compliant in that. So we’ve seen our compliance rates in that tick 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. The more patients we get compliant, the more patients that go into the resupply program.
Michael Freeman : I think we could squeeze just one more in one big shift that we’ve noticed from ‘22 to ‘23 is the shift from sort of positive to negative EPS. And I wonder if you provide sort of a rough outlook for 2024 in respect to earnings?
Hardik Mehta : If you know, company year-over-year you’ll see some of the few contributors for the positive cashflow, or not cashflow, my bad, positive EPS and net income were related to couple of one-time items back in 2022. The biggest one was related to forgiveness of the government grants that companies like us received through covid. So with 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 certainly the higher interest rate, is depressing the margins. But as far as going into future, I would say we would be, we would be either neutral or slightly negative, and most of that will be continued, will attributed towards higher depreciation, amortization and interest expenses that is expected at least in the next two years.
Operator: Our next question comes from Bill Sutherland of Benchmark Company.
Bill Sutherland: Thank you. Hey guys. Greg, could you update us on the sales force, you know, where it sits right down and what the growth was in it?
Greg Crawford: Yes, sure. And that, so we’re up to in that in kind of real time in that we’re up to about 90 and that just over 90. So 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 and now respiratory. And then we also have our custom power mobility with the ATPs. And we’ve seen nice recruitment in that, on both sides of that.
Bill Sutherland: And so that’s up. I think the number you gave us last call was in the seventies, right?
Greg Crawford: Yes, within the — yes, around 72 or so. So we’re sitting at, so we’re sitting just over 90 right now in real time.
Bill Sutherland: Were the adds partly the result of the acquisition in September?
Greg Crawford: There were a few in there, but like two or three that would’ve been considered sales.
Bill Sutherland: Okay.
Greg Crawford: But the rest have all been new, have all been new hires.
Bill Sutherland: Yes, it’s impressive. Can you update us on the insurance contracting front, where you stand with some big negotiations and what you’re expecting on rates out of that?
Greg Crawford: Yes, sure. And that we continue to work with some of the larger payers in that, in the US such as Anthem and Cigna and that 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. Then there’s also, and that’s some other programs out there in that, another one [indiscernible] in that, that has a lot of the state Medicaid advantage programs and also a lot of Medicare Advantage programs. We’re accepted not 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 the locations and companies in that under one contract. There’s also been several regional contracts that have been signed and 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.
