InfuSystem Reports First Quarter 2024 Financial Results
Record Net Revenues of
Gross Profit increased 10% - Gross Margin of 51.5%, an increase of 2.3%
2024 First Quarter Overview:
-
Net revenues totaled
$32.0 million , an increase of 5% vs. prior year.-
Patient Services net revenue was
$18.6 million , a decrease of 1% vs. prior year. -
Device Solutions net revenue was
$13.4 million , an increase of 16% vs. prior year.
-
Patient Services net revenue was
-
Gross profit was
$16.5 million , an increase of 10% vs. prior year. -
Gross margin was 51.5%, an increase of 2.3% vs. prior year.
- Patient Services gross margin was 66.0%, an increase of 4.5% vs. prior year.
- Device Solutions gross margin was 31.3%, an increase of 1.9% vs. prior year.
-
Net loss was
$1.1 million , or$(0.05) per diluted share vs. prior year net loss of$0.3 million , or$(0.02) per diluted share. -
Adjusted earnings before interest, income taxes, depreciation, and amortization (“Adjusted EBITDA”) (non-GAAP) was
$3.9 million , a decrease of 9% vs. prior year. -
Company liquidity totaled
$45.4 million , as ofMarch 31, 2024 .
Management Discussion
“Biomedical services is just the first of several areas of our business seeing strong positive momentum. Oncology continues to win market share, securing incremental revenue and contribution that will contribute later this year. The pain management team is preparing for the impact of the NOPAIN Act which is expected to be implemented in 2025. Wound Care revenue related to Sanara’s advanced wound care products is ramping, even as the new business opportunities with our joint-venture partner continue to expand. We remain confident in our outlook and guidance for 2024 as we continue to build off the strong fundamentals of our business,” concluded
2024 First Quarter Financial Review
Net revenues for the quarter ended
Patient Services net revenue of
Device Solutions net revenue of
Gross profit of
Patient Services gross profit was
Device Solutions gross profit during the 2024 First Quarter was
Selling and marketing expenses for the 2024 First Quarter were
G&A expenses for the 2024 First Quarter were
Net loss for the 2024 First Quarter was
Adjusted EBITDA, a non-GAAP measure, for the 2024 First Quarter was
Balance sheet, cash flows and liquidity
During the three-month period ended
As of
Full Year 2024 Guidance
The full year 2024 guidance reflects management’s current expectation for operational performance, given the current market conditions. This includes our best estimate of revenue and Adjusted EBITDA and does not include any expenses related to planned upgrades of the Company's information technology and business applications. The Company and its businesses are subject to certain risks, including those risk factors discussed in our most recent annual report on Form 10-K for the year ended
Conference Call
The Company will conduct a conference call for all interested investors on
To participate in this call, please dial (800) 285-6670 or (713) 481-1320, or listen via a live webcast, which is available in the Investors section of the Company’s website at https://ir.infusystem.com/. A replay of the call will be available by visiting https://ir.infusystem.com/ for the next 90 days or by calling (888) 556-3470, replay access code 159874, through
Non-GAAP Measures
This press release contains information prepared in conformity with GAAP as well as non-GAAP financial information. Non-GAAP financial measures presented in this press release include EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, net debt and Adjusted EBITDA to net debt ratio. The Company believes that the non-GAAP financial measures presented in this press release provide useful information to the Company’s management, investors and other interested parties about the Company’s operating performance because they allow them to understand and compare the Company’s operating results during the current periods to the prior year periods in a more consistent manner. This non-GAAP information should be considered by the reader in addition to, but not instead of, the financial statements prepared in accordance with GAAP, and similarly titled non-GAAP measures may be calculated differently by other companies. The Company calculates those non-GAAP measures by adjusting for non-recurring or non-core items that are not part of the normal course of business. A reconciliation of those measures to the most directly comparable GAAP measures is provided in the accompanying schedule, titled "GAAP to Non-GAAP Reconciliation" below. Future period non-GAAP guidance includes adjustments for items not indicative of our core operations, which may include, without limitation, items included in the accompanying schedule below. Such adjustments may be affected by changes in ongoing assumptions and judgments, as well as non-core, nonrecurring, unusual or unanticipated changes, expenses or gains or other items that may not directly correlate to the underlying performance of our business operations. The exact amounts of these adjustments are not currently determinable but may be significant. It is therefore not practicable to provide the comparable GAAP measures or reconcile this non-GAAP guidance to the most comparable GAAP measures and, therefore, such comparable GAAP measures and reconciliations are excluded from this release in reliance upon applicable
About
Forward-Looking Statements
The financial results in this press release reflect preliminary results, which are not final until the Company’s quarterly report on Form 10-Q for the quarter year ended
Additional information about
FINANCIAL TABLES FOLLOW
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) |
|||||||
|
Three Months Ended
|
||||||
(in thousands, except share and per share data) |
|
2024 |
|
|
|
2023 |
|
|
|
|
|
||||
Net revenues |
$ |
31,995 |
|
|
$ |
30,370 |
|
Cost of revenues |
|
15,521 |
|
|
|
15,420 |
|
Gross profit |
|
16,474 |
|
|
|
14,950 |
|
|
|
|
|
||||
Selling, general and administrative expenses: |
|
|
|
||||
Amortization of intangibles |
|
248 |
|
|
|
248 |
|
Selling and marketing |
|
3,376 |
|
|
|
3,224 |
|
General and administrative |
|
13,695 |
|
|
|
11,585 |
|
|
|
|
|
||||
Total selling, general and administrative |
|
17,319 |
|
|
|
15,057 |
|
|
|
|
|
||||
Operating loss |
|
(845 |
) |
|
|
(107 |
) |
Other expense: |
|
|
|
||||
Interest expense |
|
(456 |
) |
|
|
(484 |
) |
Other income (expense) |
|
3 |
|
|
|
(35 |
) |
|
|
|
|
||||
Loss before income taxes |
|
(1,298 |
) |
|
|
(626 |
) |
Benefit from income taxes |
|
186 |
|
|
|
302 |
|
Net loss |
$ |
(1,112 |
) |
|
$ |
(324 |
) |
Net loss per share: |
|
|
|
||||
Basic |
$ |
(0.05 |
) |
|
$ |
(0.02 |
) |
Diluted |
$ |
(0.05 |
) |
|
$ |
(0.02 |
) |
Weighted average shares outstanding: |
|
|
|
||||
Basic |
|
21,225,768 |
|
|
|
20,853,018 |
|
Diluted |
|
21,225,768 |
|
|
|
20,853,018 |
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS SEGMENT REPORTING (UNAUDITED) |
||||||||||||
|
|
Three Months Ended
|
|
Better/ (Worse) |
||||||||
(in thousands) |
|
|
2024 |
|
|
|
2023 |
|
|
|||
|
|
|
|
|
|
|
||||||
Net revenues: |
|
|
|
|
|
|
||||||
Patient Services |
|
$ |
18,591 |
|
|
$ |
18,774 |
|
|
$ |
(183 |
) |
Device Solutions |
|
|
15,117 |
|
|
|
13,226 |
|
|
|
1,891 |
|
Less: elimination of inter-segment revenues (a) |
|
|
(1,713 |
) |
|
|
(1,630 |
) |
|
|
(83 |
) |
Total Device Solutions |
|
|
13,404 |
|
|
|
11,596 |
|
|
|
1,808 |
|
Total |
|
|
31,995 |
|
|
|
30,370 |
|
|
|
1,625 |
|
Gross profit: |
|
|
|
|
|
|
||||||
Patient Services |
|
|
12,274 |
|
|
|
11,541 |
|
|
|
733 |
|
Device Solutions |
|
|
4,200 |
|
|
|
3,409 |
|
|
|
791 |
|
Total |
|
$ |
16,474 |
|
|
$ |
14,950 |
|
|
$ |
1,524 |
|
(a) Inter-segment allocations are for cleaning and repair services performed on medical equipment. |
GAAP TO NON-GAAP RECONCILIATION (UNAUDITED)
NET LOSS TO EBITDA, ADJUSTED EBITDA, NET LOSS MARGIN AND ADJUSTED EBITDA MARGIN: |
||||||||
|
|
Three Months Ended
|
||||||
(in thousands) |
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
||||
GAAP net loss |
|
$ |
(1,112 |
) |
|
$ |
(324 |
) |
Adjustments: |
|
|
|
|
||||
Interest expense |
|
|
456 |
|
|
|
484 |
|
Income tax benefit |
|
|
(186 |
) |
|
|
(302 |
) |
Depreciation |
|
|
2,652 |
|
|
|
2,955 |
|
Amortization |
|
|
248 |
|
|
|
248 |
|
|
|
|
|
|
||||
Non-GAAP EBITDA |
|
$ |
2,058 |
|
|
$ |
3,061 |
|
|
|
|
|
|
||||
Stock compensation costs |
|
|
1,057 |
|
|
|
720 |
|
Medical equipment reserve and disposals (1) |
|
|
(104 |
) |
|
|
430 |
|
Management reorganization/transition costs |
|
|
108 |
|
|
|
— |
|
Cooperation Agreement payment and associated legal expenses |
|
|
649 |
|
|
|
— |
|
Certain other non-recurring costs |
|
|
89 |
|
|
|
24 |
|
|
|
|
|
|
||||
Non-GAAP Adjusted EBITDA |
|
$ |
3,857 |
|
|
$ |
4,235 |
|
|
|
|
|
|
||||
GAAP Net Revenues |
|
$ |
31,995 |
|
|
$ |
30,370 |
|
Net Loss Margin (2) |
|
|
(3.5 |
)% |
|
|
(1.1 |
)% |
Non-GAAP Adjusted EBITDA Margin (3) |
|
|
12.1 |
% |
|
|
13.9 |
% |
(1) |
Amounts represent a non-cash (recovery) expense recorded to adjust the reserve for missing medical equipment and is being (deducted) added back due to its similarity to depreciation. |
|
(2) |
Net Loss Margin is defined as GAAP Net Loss as a percentage of GAAP Net Revenues. |
|
(3) |
Non-GAAP Adjusted EBITDA Margin is defined as Non-GAAP Adjusted EBITDA as a percentage of GAAP Net Revenues. |
CONSOLIDATED BALANCE SHEETS (UNAUDITED) |
||||||||
|
|
As of |
||||||
(in thousands, except par value and share data) |
|
|
|
|
||||
|
|
|
|
|
||||
ASSETS |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
822 |
|
|
$ |
231 |
|
Accounts receivable, net |
|
|
20,543 |
|
|
|
19,830 |
|
Inventories, net |
|
|
6,249 |
|
|
|
6,402 |
|
Other current assets |
|
|
4,842 |
|
|
|
4,157 |
|
|
|
|
|
|
||||
Total current assets |
|
|
32,456 |
|
|
|
30,620 |
|
Medical equipment for sale or rental |
|
|
4,084 |
|
|
|
3,049 |
|
Medical equipment in rental service, net of accumulated depreciation |
|
|
34,425 |
|
|
|
34,928 |
|
Property & equipment, net of accumulated depreciation |
|
|
4,231 |
|
|
|
4,321 |
|
|
|
|
3,710 |
|
|
|
3,710 |
|
Intangible assets, net |
|
|
7,199 |
|
|
|
7,446 |
|
Operating lease right of use assets |
|
|
6,206 |
|
|
|
6,703 |
|
Deferred income taxes |
|
|
9,236 |
|
|
|
9,115 |
|
Derivative financial instruments |
|
|
1,716 |
|
|
|
1,442 |
|
Other assets |
|
|
1,587 |
|
|
|
1,581 |
|
|
|
|
|
|
||||
Total assets |
|
$ |
104,850 |
|
|
$ |
102,915 |
|
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Accounts payable |
|
$ |
9,796 |
|
|
$ |
8,009 |
|
Other current liabilities |
|
|
7,516 |
|
|
|
7,704 |
|
|
|
|
|
|
||||
Total current liabilities |
|
|
17,312 |
|
|
|
15,713 |
|
Long-term debt, net of current portion |
|
|
29,931 |
|
|
|
29,101 |
|
Operating lease liabilities, net of current portion |
|
|
5,331 |
|
|
|
5,799 |
|
|
|
|
|
|
||||
Total liabilities |
|
|
52,574 |
|
|
|
50,613 |
|
|
|
|
|
|
||||
Stockholders’ equity: |
|
|
|
|
||||
Preferred stock, |
|
|
— |
|
|
|
— |
|
Common stock, |
|
|
2 |
|
|
|
2 |
|
Additional paid-in capital |
|
|
110,715 |
|
|
|
109,837 |
|
Accumulated other comprehensive income |
|
|
1,296 |
|
|
|
1,088 |
|
Retained deficit |
|
|
(59,737 |
) |
|
|
(58,625 |
) |
|
|
|
|
|
||||
Total stockholders’ equity |
|
|
52,276 |
|
|
|
52,302 |
|
|
|
|
|
|
||||
Total liabilities and stockholders’ equity |
|
$ |
104,850 |
|
|
$ |
102,915 |
|
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) |
||||||||
|
|
Three Months Ended |
||||||
(in thousands) |
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
||||
OPERATING ACTIVITIES |
|
|
|
|
||||
Net loss |
|
$ |
(1,112 |
) |
|
$ |
(324 |
) |
Adjustments to reconcile net loss to net cash provided by operating activities: |
|
|
|
|
||||
Provision for doubtful accounts |
|
|
(130 |
) |
|
|
114 |
|
Depreciation |
|
|
2,652 |
|
|
|
2,955 |
|
(Gain) loss on disposal of and reserve adjustments for medical equipment |
|
|
(43 |
) |
|
|
450 |
|
Gain on sale of medical equipment |
|
|
(629 |
) |
|
|
(883 |
) |
Amortization of intangible assets |
|
|
248 |
|
|
|
248 |
|
Amortization of deferred debt issuance costs |
|
|
19 |
|
|
|
18 |
|
Stock-based compensation |
|
|
1,057 |
|
|
|
720 |
|
Deferred income taxes |
|
|
(186 |
) |
|
|
(302 |
) |
Changes in assets - (increase)/decrease: |
|
|
|
|
||||
Accounts receivable |
|
|
(237 |
) |
|
|
(961 |
) |
Inventories |
|
|
153 |
|
|
|
(823 |
) |
Other current assets |
|
|
(685 |
) |
|
|
(830 |
) |
Other assets |
|
|
376 |
|
|
|
(846 |
) |
Changes in liabilities - (decrease)/increase: |
|
|
|
|
||||
Accounts payable and other liabilities |
|
|
(1,106 |
) |
|
|
313 |
|
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES |
|
|
377 |
|
|
|
(151 |
) |
|
|
|
|
|
||||
INVESTING ACTIVITIES |
|
|
|
|
||||
Purchase of medical equipment |
|
|
(1,493 |
) |
|
|
(3,968 |
) |
Purchase of property and equipment |
|
|
(182 |
) |
|
|
(317 |
) |
Proceeds from sale of medical equipment, property and equipment |
|
|
1,257 |
|
|
|
1,234 |
|
|
|
|
(418 |
) |
|
|
(3,051 |
) |
|
|
|
|
|
||||
FINANCING ACTIVITIES |
|
|
|
|
||||
Principal payments on long-term debt |
|
|
(15,258 |
) |
|
|
(13,683 |
) |
Cash proceeds from long-term debt |
|
|
16,069 |
|
|
|
16,894 |
|
Debt issuance costs |
|
|
— |
|
|
|
— |
|
Cash payment of contingent consideration |
|
|
— |
|
|
|
— |
|
Common stock repurchased as part of share repurchase program |
|
|
— |
|
|
|
(153 |
) |
Common stock repurchased to satisfy statutory withholding on employee stock-based compensation plans |
|
|
(365 |
) |
|
|
(324 |
) |
Cash proceeds from exercise of options and ESPP |
|
|
186 |
|
|
|
559 |
|
NET CASH PROVIDED BY FINANCING ACTIVITIES |
|
|
632 |
|
|
|
3,293 |
|
|
|
|
|
|
||||
Net change in cash and cash equivalents |
|
|
591 |
|
|
|
91 |
|
Cash and cash equivalents, beginning of period |
|
|
231 |
|
|
|
165 |
|
Cash and cash equivalents, end of period |
|
$ |
822 |
|
|
$ |
256 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240509823880/en/
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