Coronavirus / Medical Technology Stock News Bites: Viemed Healthcare (TSX: $VMD.TO) (NASDAQ: $VMD) Raises First Quarter Guidance and Provides Update on Operations and Response to COVID-19 Virus
April 7, 2020 (Investorideas.com Newswire) Coronavirus /Medical Technology (COVID-19) Stock News Bites - Viemed Healthcare, Inc. (TSX: VMD.TO and NASDAQ:VMD), a home medical equipment supplier that provides post-acute respiratory care services in the United States, announced that it is increasing its previously issued net revenue guidance for the first quarter of 2020. In addition, the Company is providing an update on current operations and response to the growing number of COVID-19 cases around the country.
As previously disclosed, in response to the COVID-19 virus, the Company began modifying its clinical protocols to limit unnecessary patient encounters in order to ensure the safety of its employees as well as the safety of its patients. At this time, these measures do not appear to be negatively impacting the Company's patient attrition rate. The Company's current ability to assess potential patients in hospitals varies by hospital and city, but overall the Company's business of setting up new patients in the home is continuing.
Additionally, the Company is working with various governmental agencies and health systems around the country to assist in the response to the COVID-19 virus. The Company continues to be a resource to help transition patients with chronic respiratory failure, amongst other disease states, out of the hospital quicker in order to free up valuable hospital beds for COVID-19 patients. The Company is working to source equipment for third parties to be used in acute facilities to assist COVID-19 patients, and is preparing to mobilize certain of its therapists to educate other clinicians on ventilators as well as to provide critical care in the facilities that need this assistance. The Company is actively fulfilling equipment orders in the more severely COVID-19 impacted areas of Louisiana and New York, and continues to work with these states and others to help during this pandemic.
As mentioned above, the Company has fulfilled some of the orders that have been received to date, and anticipates fulfilling a larger amount during the second quarter. The Company continues to receive new equipment, and has been utilizing a portion of its existing equipment to assist with the immediate COVID-19 crisis while continuing to meet the needs of its patient base. As a result of these sales of new equipment, the Company is revising its previously issued guidance and currently estimates that first quarter 2020 net revenues will be approximately $23.7 to $23.9 million. Additionally, sales of previously used equipment will be recognized in gain on disposal of property and equipment in the Company's financial statements and is currently estimated to be approximately $1.4 to $1.5 million. Second quarter guidance based on this growing demand is expected to be provided during May in conjunction with the reporting of the Company's first quarter results. The extent and duration of the effect of these additional sales on our operational and financial performance will depend on future developments, including the duration, spread and intensity of the outbreak and actions taken by the government and private business to attempt to contain the COVID-19 virus, all of which are uncertain and difficult to predict considering the rapidly evolving landscape.
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