Management Commentary:

“We continued experiencing robust demand trends in the first quarter across our diverse product offering and are very pleased with the continued record financial and operational results we have posted. Our commitment to scaling our operations efficiently is evident in our margin profile, which has shown remarkable consistency. Moreover, we saw steady sequential organic growth, reduced our bad debt expense year over year, and significantly improved our net operating cash flow. To maintain our positive momentum and competitive edge, we will continue putting a high priority on strategic investments in both inorganic and organic growth opportunities, including penetrating our key sales touch points, with the continued expansion into continuum markets which has been very successful to date,” said CEO and Chairman Gregory Crawford.

“We are actively expanding our patient-centric ecosystem across 26 states, offering specialized clinical respiratory programs, to provide efficient and tailored home treatment. Our strategic initiatives are concentrated in regions with a high COPD prevalence, with a concerted sales effort aimed at penetrating targeted markets to fuel our organic growth trajectory. A significant driver of our growth is our proven diversified business model which has increased our overall performance by extending a patient’s lifetime relationship with us and generates higher recurring revenue. Our healthy balance sheet, well-timed organic growth initiatives, and strategic acquisition and integration strategy provide us with ample opportunity to capitalize on the expanding market for at-home clinical respiratory care.”

“We take great pride in our continued cost discipline and capital allocation prudency which are the cornerstones of our consistent financial and operating results. Our Fiscal Q1 results underscore this with an Adjusted EBITDA margin of 23.5% of revenue, and net cash flow from operations which came in at 18% of revenue,” said Hardik Mehta, Quipt’s Chief Financial Officer. “We are thrilled to surpass the milestones of $261 million in Run-Rate Revenue and $61 million of Run-Rate Adjusted EBITDA (both defined in Non-IFRS Measures below). Our strategic capital management approach has endowed us with a conservative balance sheet characterized by a low Leverage Ratio of 1.3x net debt to Adjusted EBITDA, bolstered by over $59 million in available credit and cash on hand. Despite the challenges posed by higher interest rates, our strong financial foundation ensures we are well equipped to pursue our strategic objectives. With our flexible capital structure, we continue to explore diverse avenues to enhance shareholder value. The structure of our operations, coupled with our solid financial position, which includes the ability to increase the size of our senior credit facility, equips us with all the necessary tools to successfully drive our growth strategy forward.”

From time to time, the Company is involved in various legal proceedings arising from the ordinary course of business. The Company received a civil investigative demand from the U.S. Attorney’s Office for the Northern District of Georgia pursuant to the False Claims Act regarding an investigation concerning whether the Company may have caused the submission of false claims to government healthcare programs for CPAP equipment. The Company is cooperating with the investigation and the DOJ has not indicated to the Company whether it believes the Company engaged in any wrongdoing. No assurance can be given as to the timing or outcome of the DOJ’s investigation.

ABOUT QUIPT HOME MEDICAL CORP.

The Company provides in-home monitoring and disease management services including end-to-end respiratory solutions for patients in the United States healthcare market. It seeks to continue to expand its offerings to include the management of several chronic disease states focusing on patients with heart or pulmonary disease, sleep disorders, reduced mobility, and other chronic health conditions. The primary business objective of the Company is to create shareholder value by offering a broader range of services to patients in need of in-home monitoring and chronic disease management. The Company’s organic growth strategy is to increase annual revenue per patient by offering multiple services to the same patient, consolidating the patient’s services, and making life easier for the patient.

Forward-Looking Statements

Certain statements contained in this press release constitute "forward-looking information" as such term is ‎‎‎‎‎defined in applicable Canadian securities legislation. The words "may", "would", "could", "should", "potential", ‎‎‎‎‎‎"will", "seek", "intend", "plan", "anticipate", "believe", "estimate", "expect", "outlook", and similar expressions ‎‎‎‎as ‎they relate to the Company, including: the Company anticipating solid and robust organic growth, with the goal of achieving 8-10% revenue growth on an annualized basis; are intended to ‎identify forward-looking information. All statements ‎other ‎than statements of ‎‎historical fact may be forward-‎looking information. Such statements reflect the ‎Company's ‎current views and ‎‎intentions with respect to future ‎events, and current information available to the ‎Company, and ‎are subject to ‎‎certain risks, uncertainties and ‎assumptions, including: the ‎Company successfully identified, ‎‎negotiating and ‎completing additional acquisitions; and operating and other financial metrics maintaining their ‎current trajectories. Many ‎factors could cause the actual ‎results, ‎performance or achievements that may be ‎expressed ‎or implied by such ‎forward-looking information to ‎vary from ‎those described herein should one or more ‎of these ‎risks or ‎uncertainties materialize. Examples of such ‎risk factors ‎include, without limitation: risks related ‎to credit, market ‎‎‎(including equity, commodity, foreign exchange and interest ‎rate), ‎liquidity, operational ‎‎(including technology ‎and ‎infrastructure), reputational, insurance, strategic, ‎regulatory, legal, ‎environmental, and ‎capital adequacy; the ‎‎general business and economic conditions in the regions ‎in which the ‎Company operates; ‎the ability of the ‎‎Company to execute on key priorities, including the successful ‎completion of ‎acquisitions, ‎business retention, and ‎‎strategic plans and to attract, develop and retain key ‎executives; difficulty ‎integrating ‎newly acquired businesses; ‎‎the ability to implement business strategies and ‎pursue business opportunities; low ‎profit ‎market segments; ‎‎disruptions in or attacks (including cyber-attacks) on ‎the Company's information ‎technology, ‎internet, network ‎‎access or other voice or data communications systems or ‎services; the evolution of ‎various types ‎of fraud or other ‎‎criminal behavior to which the Company is exposed; the ‎failure of third parties to ‎comply with ‎their obligations to ‎‎the Company or its affiliates; the impact of new and ‎changes to, or application of, ‎current ‎laws and regulations; ‎‎decline of reimbursement rates; dependence on few ‎payors; possible new drug ‎discoveries; a ‎novel business ‎model; ‎dependence on key suppliers; granting of permits ‎and licenses in a highly ‎regulated ‎business; the overall ‎difficult ‎litigation environment, including in the U.S.; ‎increased competition; ‎changes in ‎foreign currency rates; ‎increased ‎funding costs and market volatility due to ‎market illiquidity and ‎competition for ‎funding; the ‎availability of funds ‎and resources to pursue operations; ‎critical accounting ‎estimates and changes ‎to accounting ‎standards, policies, ‎and methods used by the Company; ‎the occurrence of ‎natural and unnatural ‎catastrophic ‎events and claims ‎resulting from such events; and risks ‎related to COVID-19 ‎including various ‎recommendations, ‎orders and ‎measures of governmental authorities to try ‎to limit the pandemic, ‎including travel ‎restrictions, border ‎closures, ‎non-essential business closures, quarantines, ‎self-isolations, ‎shelters-in-place and social distancing, ‎‎disruptions ‎to markets, economic activity, financing, ‎supply chains and ‎sales channels, and a deterioration of ‎general ‎economic ‎conditions including a possible ‎national or global ‎recession; as well as those risk factors ‎discussed or ‎referred to ‎in the Company’s disclosure ‎documents filed with ‎United States Securities and Exchange ‎Commission ‎and ‎available at www.sec.gov, and with ‎the securities ‎regulatory authorities in certain provinces of ‎Canada and ‎‎available at www.sedar.com. Should any ‎factor affect ‎the Company in an unexpected manner, or ‎should ‎‎assumptions underlying the forward-looking ‎information prove ‎incorrect, the actual results or events may ‎differ ‎‎materially from the results or events predicted. ‎Any such forward-‎looking information is expressly qualified ‎in its ‎‎entirety by this cautionary statement. Moreover, ‎the Company ‎does not assume responsibility for the ‎accuracy or ‎‎completeness of such forward-looking ‎information. The ‎forward-looking information included in this ‎press release ‎‎is made as of the date of this press ‎release and the ‎Company undertakes no obligation to publicly ‎update or revise ‎‎any forward-looking information, ‎other than as ‎required by applicable law‎.‎

Non-IFRS Measures

This press release refers to “Recurring Revenue”, “Adjusted EBITDA”, “Run-Rate Revenue”, “Run-Rate Adjusted EBITDA”, and “Leverage Ratio”, which are non-IFRS financial measures that do not have standardized meanings prescribed by IFRS. The ‎Company’s presentation of these financial measures may not be comparable to similarly titled measures used by ‎other companies. These financial measures are intended to provide additional information to investors concerning ‎the Company’s performance.‎

Recurring Revenue for Q1 is calculated as rentals of medical equipment of $27.4 million plus sales of respiratory resupplies of $26.8 million for a total of $54.2 million, divided by total revenues of $65.4 million, or 83%.

Adjusted EBITDA is calculated as net income (loss), and adding back depreciation and amortization, interest expense, net, provision for income taxes, stock-based compensation, professional fees related to civil investigative demand, acquisition-related costs, share of loss of equity method investment, and loss (gain) on foreign currency transactions. The following table shows our non-IFRS measure, Adjusted EBITDA, reconciled to our net income (loss) for the ‎following indicated periods‎ (in $millions)‎:‎

Run-Rate Revenue is calculated as revenue for Q1 2023 of $65.4 million times four quarters equals $261.6 million.

Run-Rate Adjusted EBITDA is calculated as Adjusted EBITDA for Q1 of $15.3 million times four quarters equals $61.2 million.

Leverage Ratio is calculated as long-term debt less cash, divided by Run-Rate Adjusted EBITDA, and is reconciled as follows (in $millions):

For further information please visit our website at www.Quipthomemedical.com, or contact:

Cole Stevens
VP of Corporate Development
Quipt Home Medical Corp.
859-300-6455
cole.stevens@myquipt.com

Gregory Crawford
Chief Executive Officer
Quipt Home Medical Corp.
859-300-6455
investorinfo@myquipt.com