Protech looks to make ‘transformational’ buys

CINCINNATI – With a platform that it says is ready to scale, Protech Home Medical plans to “make the leap” from a regional to a national respiratory provider, said CEO and Chairman Greg Crawford on a recent earnings call.

Protech currently serves more than 120,000 patients through 49 locations in 11 states, including Florida, a market the company recently entered by way of its acquisition of Jacksonville-based Mayhugh’s Medical Equipment, which added 10,000 to its roster.

“We are also looking for what we consider to be transformational-type acquisitions that can include multi-state operators with substantial revenue and EBITDA generation, which would meaningfully move the needle for us across the board,” Crawford said. “We have a platform that is ready to be scaled immediately and I am very optimistic we have the ability to close impactful deals in the near to medium term in new and existing markets.”

Protech reported revenue of $22.8 million for the first quarter of fiscal year 2021, a 32% increase compared to the same period in 2020.  The company completed 76,691 vs. 62,999 setups or deliveries, an increase of 22%; and completed 34,996 resupply setups or deliveries specific to respiratory, an increase of 160%, not factoring in any of its acquisitions.

Of note, Protech’s recurring revenue for the trailing twelve months at the end of the first quarter of fiscal year 2021 was 75% of total revenue.

“Our same store resupply orders have grown more than 85% period-over-period, which showcases the results of our investments in a resupply program,” said CFO Hardik Mehta. “We see similar trends into the second quarter.”

With plans to become a national player and to list its common shares on the NASDAQ in the first half of 2021, Protech is also working on its branding, says Crawford.

“Our company is transforming into a national home respiratory care provider in the U.S. and we must ensure our brand matches this transformation,” he said. “We look forward to sharing our vision with investors in the near-term.”