Viemed Healthcare, Inc. (NASDAQ:VMD) Q4 2022 Earnings Call Transcript

Casey Hoyt: Yes, I think that we will continue to see the oxygen, sleep, and staffing business lines grow at a faster rate than the ventilators just because they’re so much smaller. But I don’t see the product mix moving as drastically as it did year-over-year just because vent growth is back at a higher rate than it has been over the last call it 24 months to 36 months. So, we moved it 10% this year. I think the numbers were 76% in 2021, and 66% in 2023 or excuse me, 2022. So, 10 percentage point. I don’t see it moving that much, but the smaller business units will grow very likely at a faster rate this year just because they’re still relatively new to our national rollout. They’re probably anywhere between 2 and 3 years international rollout.

So, we’re still benefiting from the infancy of those programs around the country, but I guess the key Prasath is, all business units are growing, all of them are growing pretty dramatically. So, it’s kind of fun to watch, to see who’s going to outpace the other one right now.

Prasath Pandurangan: Yes, that sounds good. And then on the €“ finally on the SG&A side of it, just looking at it from continuing operations basis, does this quarter’s SG&A number €“ is that like a normalized number that we can flat in the next few quarters or are you looking at further cuts to it?

Casey Hoyt: I think that it’s €“ we’re always going to have slight guidance increases when it comes to cost just because we’re out there organically growing the business and putting new sales reps in new areas and it’s unrealistic to say that we’re going to keep growing without some G&A expansion. With that said, I think we were pretty clear mid-year that we had seen a massive increase last year between our hiring efforts and the inflationary impact, and those appear to be stable now at least on the inflationary side. We’re managing our headcount pretty good. We’re looking for new areas, new sales reps, and so forth. So, I would call our G&A relatively stable, but you should always think that it’s going to grow some to support the 20% to 30% organic growth in the revenue and gross margin line that we are going to forecast.

Prasath Pandurangan: Got it. Got it. Thanks for taking my questions.

Casey Hoyt: Sure. Thanks Prasath.

Operator: There are no further questions in the queue. I’d like to hand the call back to management for closing remarks.

Casey Hoyt: Okay. Thanks everyone for joining the call. We appreciate all the thoughtful questions, and we are very excited to be up there in New York on Monday morning. So, everyone look out for us as we ring that bell. Enjoy your weekend.

Operator: Ladies and gentlemen, this does conclude today’s teleconference. Thank you for your participation. You may disconnect your lines at this time and have a wonderful day.