Electromed, Inc. Announces Record Financial Performance in Fiscal 2024 Second Quarter
Growth initiatives drive record revenue, improve margins and enhance operational efficiency
Q2 FY 2024 Financial Highlights
-
Net revenue increased 17% to a record
$13.7 million in Q2 FY 2024, from$11.7 million in the second quarter of the prior fiscal year. - Gross margins were 77% of revenue, compared to 74% in the second quarter of the prior fiscal year.
-
Operating income was a record
$2,263,000 or 16.5% of revenue, compared with$1,274,000 or 10.1% of revenue in the second quarter of the prior fiscal year. -
Net income was a record
$1,674,000 for the quarter, or$0.19 per diluted share, compared to$977,000 , or$0.11 per diluted share in the second quarter of the prior fiscal year. -
Cash as of
December 31, 2023 , was$10.4 million , an increase of$3.1 million compared to cash as ofJune 30, 2023 .
“I am thrilled to announce another record revenue quarter for Electromed,” said
Q2 FY 2024 Results
Net revenue for Q2 FY 2024 grew 17% to
Revenue in our direct homecare business increased year-over-year by 18.0% to
Gross profit increased to
Selling, general and administrative (“SG&A”) expenses were
Operating income for the quarter was a record
Net income for Q2 FY 2024 was a record
As of
Conference Call and Webcast Information
The conference call with members of
Interested parties may participate in the call by dialing (877) 407-0789 (Domestic) or (201) 689-8562 (International).
The live conference call webcast will be accessible in the Investor Relations section of Electromed’s website and directly via the following link: https://viavid.webcasts.com/starthere.jsp?ei=1650986&tp_key=12e0064318
For those who cannot listen to the live broadcast, a replay will be available by dialing (844) 512-2921 (Domestic) or (412) 317-6671 (International) and referencing the replay pin number 13743606. Additionally, an online replay will be available in the Investor Relations section of Electromed’s web site at: https://investors.smartvest.com/events-and-presentations/default.aspx
About
Cautionary Statements
Certain statements in this press release constitute forward-looking statements as defined in the
|
||||||||
Condensed Balance Sheets |
||||||||
|
|
|||||||
(Unaudited) |
(Audited) |
|||||||
Assets |
||||||||
Current Assets |
||||||||
Cash and cash equivalents |
$ |
10,434,000 |
$ |
7,372,000 |
||||
Accounts receivable (net of allowances for doubtful accounts of |
|
22,988,000 |
|
24,130,000 |
||||
Contract assets |
|
574,000 |
|
487,000 |
||||
Inventories |
|
4,760,000 |
|
4,221,000 |
||||
Prepaid expenses and other current assets |
|
509,000 |
|
1,577,000 |
||||
Total current assets |
|
39,265,000 |
|
37,787,000 |
||||
Property and equipment, net |
|
5,377,000 |
|
5,672,000 |
||||
Finite-life intangible assets, net |
|
616,000 |
|
605,000 |
||||
Other assets |
|
125,000 |
|
161,000 |
||||
Deferred income taxes |
|
1,581,000 |
|
1,581,000 |
||||
Total assets |
$ |
46,964,000 |
$ |
45,806,000 |
||||
Liabilities and Shareholders' Equity |
||||||||
Current Liabilities |
||||||||
Accounts payable |
|
1,041,000 |
|
1,372,000 |
||||
Accrued compensation |
|
2,806,000 |
|
3,018,000 |
||||
Income tax payable |
|
253,000 |
|
336,000 |
||||
Warranty reserve |
|
1,483,000 |
|
1,378,000 |
||||
Other accrued liabilities |
|
990,000 |
|
1,949,000 |
||||
Total current liabilities |
|
6,573,000 |
|
8,053,000 |
||||
Other long-term liabilities |
|
49,000 |
|
86,000 |
||||
Total liabilities |
|
6,622,000 |
|
8,139,000 |
||||
Commitments and Contingencies |
||||||||
Shareholders' Equity |
||||||||
Common stock, |
||||||||
8,602,677 and 8,555,238 shares issued and outstanding, as of |
|
86,000 |
|
86,000 |
||||
Additional paid-in capital |
|
19,634,000 |
|
18,788,000 |
||||
Retained earnings |
|
20,622,000 |
|
18,793,000 |
||||
Total shareholders' equity |
|
40,342,000 |
|
37,667,000 |
||||
Total liabilities and shareholders' equity |
$ |
46,964,000 |
$ |
45,806,000 |
|
||||||||||||||
Condensed Statements of Operations |
||||||||||||||
Three Months Ended |
Six Months Ended |
|||||||||||||
|
|
|||||||||||||
2023 |
2022 |
2023 |
2022 |
|||||||||||
Net revenues |
$ |
13,689,000 |
$ |
11,729,000 |
$ |
26,013,000 |
$ |
22,387,000 |
||||||
Cost of revenues |
|
3,144,000 |
|
3,047,000 |
|
5,970,000 |
|
5,374,000 |
||||||
Gross profit |
|
10,545,000 |
|
8,682,000 |
|
20,043,000 |
|
17,013,000 |
||||||
Operating expenses |
||||||||||||||
Selling, general and administrative |
|
8,175,000 |
|
7,254,000 |
|
17,325,000 |
|
15,243,000 |
||||||
Research and development |
|
107,000 |
|
154,000 |
|
313,000 |
|
452,000 |
||||||
Total operating expenses |
|
8,282,000 |
|
7,408,000 |
|
17,638,000 |
|
15,695,000 |
||||||
Operating income |
|
2,263,000 |
|
1,274,000 |
|
2,405,000 |
|
1,318,000 |
||||||
Interest income, net |
|
96,000 |
|
7,000 |
|
173,000 |
|
11,000 |
||||||
Net income before income taxes |
|
2,359,000 |
|
1,281,000 |
|
2,578,000 |
|
1,329,000 |
||||||
Income tax expense |
|
685,000 |
|
304,000 |
|
749,000 |
|
271,000 |
||||||
Net income |
$ |
1,674,000 |
$ |
977,000 |
$ |
1,829,000 |
$ |
1,058,000 |
||||||
|
|
|
|
|||||||||||
Income per share: |
||||||||||||||
Basic |
$ |
0.20 |
$ |
0.12 |
$ |
0.21 |
$ |
0.13 |
||||||
Diluted |
$ |
0.19 |
$ |
0.11 |
$ |
0.21 |
$ |
0.12 |
||||||
Weighted-average common shares outstanding: |
||||||||||||||
Basic |
|
8,545,120 |
|
8,442,939 |
|
8,541,254 |
|
8,442,684 |
||||||
Diluted |
|
8,800,172 |
|
8,684,352 |
|
8,791,519 |
|
8,685,184 |
|
||||||||||||
Condensed Statements of Cash Flows |
||||||||||||
Six Months Ended |
||||||||||||
2023 |
2022 |
|||||||||||
|
|
(Unaudited) |
|
(Unaudited) |
||||||||
Cash Flows From Operating Activities |
||||||||||||
Net income |
$ |
1,829,000 |
|
$ |
1,058,000 |
|
||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: |
||||||||||||
Depreciation |
|
398,000 |
|
|
272,000 |
|
||||||
Amortization of finite-life intangible assets |
|
25,000 |
|
|
47,000 |
|
||||||
Share-based compensation expense |
|
791,000 |
|
|
316,000 |
|
||||||
Deferred income taxes |
|
- |
|
|
10,000 |
|
||||||
Changes in operating assets and liabilities: |
||||||||||||
Accounts receivable |
|
1,142,000 |
|
|
(503,000 |
) |
||||||
Contract assets |
|
(87,000 |
) |
|
(221,000 |
) |
||||||
Inventories |
|
(509,000 |
) |
|
(321,000 |
) |
||||||
Prepaid expenses and other current assets |
|
1,104,000 |
|
|
176,000 |
|
||||||
Income tax payable, net |
|
(83,000 |
) |
|
79,000 |
|
||||||
Accounts payable and accrued liabilities |
|
(1,171,000 |
) |
|
(711,000 |
) |
||||||
Accrued compensation |
|
(212,000 |
) |
|
(532,000 |
) |
||||||
Net cash provided by (used in) operating activities |
|
3,227,000 |
|
|
(330,000 |
) |
||||||
Cash Flows From Investing Activities |
||||||||||||
Expenditures for property and equipment |
|
(180,000 |
) |
|
(687,000 |
) |
||||||
Expenditures for finite-life intangible assets |
|
(40,000 |
) |
|
(30,000 |
) |
||||||
Net cash used in investing activities |
|
(220,000 |
) |
|
(717,000 |
) |
||||||
Cash Flows From Financing Activities |
||||||||||||
Issuance of common stock upon exercise of options |
|
55,000 |
|
|
16,000 |
|
||||||
Taxes paid on net share settlement of stock option exercises |
|
- |
|
|
(60,000 |
) |
||||||
Repurchase of common stock |
|
- |
|
|
(153,000 |
) |
||||||
Net cash provided by (used in) financing activities |
|
55,000 |
|
|
(197,000 |
) |
||||||
Net decrease in cash |
|
3,062,000 |
|
|
(1,244,000 |
) |
||||||
Cash And Cash Equivalents |
||||||||||||
Beginning of period |
|
7,372,000 |
|
|
8,153,000 |
|
||||||
End of period |
$ |
10,434,000 |
|
$ |
6,909,000 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240213378340/en/
(952) 758-9299
investorrelations@electromed.com
ICR Westwicke
(617) 877-9641
mike.cavanaugh@westwicke.com
Source: