Electromed, Inc. Announces Record Revenue in Fiscal 2024 Third Quarter
Growth initiatives drive record revenue
Q3 FY 2024 Financial Highlights
-
Net revenues increased 15% to a record
$13.9 million in Q3 FY 2024, from$12.1 million in the third quarter of the prior fiscal year. - Gross margins were 75% of net revenues in the third quarters of both the current and prior fiscal years.
-
Operating income increased by 54% to
$1,841,000 or 13% of revenue, compared with$1,196,000 or 10% of revenue in the third quarter of the prior fiscal year. -
Net income was
$1,493,000 for the quarter, or$0.17 per diluted share, compared to$1,075,000 , or$0.12 per diluted share in the third quarter of the prior fiscal year. -
Cash as of
March 31, 2024 , was$11.7 million , an increase of$4.3 million from theJune 30, 2023 , balance.
“I am excited to announce another record revenue quarter in the third quarter of fiscal year 2024,” said
Q3 FY 2024 Results
All amounts below are for the three months ended
Net revenues grew 14.9% to
Revenue in our direct homecare business increased year-over-year by 12.0% to
Gross profit increased to
Selling, general and administrative (“SG&A”) expenses were
Operating income for the quarter was
Net income for the quarter was
As of
Conference Call and Webcast Information
A 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=1665471&tp_key=f09d972070
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 for one year 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 |
$ |
11,712,000 |
$ |
7,372,000 |
|
Accounts receivable (net of allowances for credit losses of |
|
23,907,000 |
|
24,130,000 |
|
Contract assets |
|
642,000 |
|
487,000 |
|
Inventories |
|
4,178,000 |
|
4,221,000 |
|
Prepaid expenses and other current assets |
|
592,000 |
|
1,577,000 |
|
Income tax receivable |
|
291,000 |
|
- |
|
Total current assets |
|
41,322,000 |
|
37,787,000 |
|
Property and equipment, net |
|
5,283,000 |
|
5,672,000 |
|
Finite-life intangible assets, net |
|
648,000 |
|
605,000 |
|
Other assets |
|
106,000 |
|
161,000 |
|
Deferred income taxes |
|
1,542,000 |
|
1,581,000 |
|
Total assets |
$ |
48,901,000 |
$ |
45,806,000 |
|
Liabilities and Shareholders' Equity |
|||||
Current Liabilities |
|||||
Accounts payable |
|
792,000 |
|
1,372,000 |
|
Accrued compensation |
|
2,987,000 |
|
3,018,000 |
|
Income tax payable |
|
- |
|
336,000 |
|
Warranty reserve |
|
1,525,000 |
|
1,378,000 |
|
Other accrued liabilities |
|
1,022,000 |
|
1,949,000 |
|
Total current liabilities |
|
6,326,000 |
|
8,053,000 |
|
Other long-term liabilities |
|
31,000 |
|
86,000 |
|
Total liabilities |
|
6,357,000 |
|
8,139,000 |
|
Commitments and Contingencies |
|||||
Shareholders' Equity |
|||||
Common stock, |
|||||
8,655,727 and 8,555,238 shares issued and outstanding,
as of |
|
87,000 |
|
86,000 |
|
Additional paid-in capital |
|
20,342,000 |
|
18,788,000 |
|
Retained earnings |
|
22,115,000 |
|
18,793,000 |
|
Total shareholders' equity |
|
42,544,000 |
|
37,667,000 |
|
Total liabilities and shareholders' equity |
$ |
48,901,000 |
$ |
45,806,000 |
Condensed Statements of Operations |
|||||||||||
Three Months Ended |
Nine Months Ended |
||||||||||
|
|
||||||||||
2024 |
2023 |
2024 |
2023 |
||||||||
Net revenues |
$ |
13,871,000 |
$ |
12,068,000 |
$ |
39,884,000 |
$ |
34,455,000 |
|||
Cost of revenues |
|
3,489,000 |
|
3,012,000 |
|
9,459,000 |
|
8,386,000 |
|||
Gross profit |
|
10,382,000 |
|
9,056,000 |
|
30,425,000 |
|
26,069,000 |
|||
Operating expenses |
|||||||||||
Selling, general and administrative |
|
8,374,000 |
|
7,694,000 |
|
25,699,000 |
|
22,937,000 |
|||
Research and development |
|
167,000 |
|
166,000 |
|
480,000 |
|
618,000 |
|||
Total operating expenses |
|
8,541,000 |
|
7,860,000 |
|
26,179,000 |
|
23,555,000 |
|||
Operating income |
|
1,841,000 |
|
1,196,000 |
|
4,246,000 |
|
2,514,000 |
|||
Interest income, net |
|
120,000 |
|
26,000 |
|
293,000 |
|
37,000 |
|||
Net income before income taxes |
|
1,961,000 |
|
1,222,000 |
|
4,539,000 |
|
2,551,000 |
|||
Income tax expense |
|
468,000 |
|
147,000 |
|
1,217,000 |
|
418,000 |
|||
Net income |
$ |
1,493,000 |
$ |
1,075,000 |
$ |
3,322,000 |
$ |
2,133,000 |
|||
|
|
|
|
||||||||
Income per share: |
|||||||||||
Basic |
$ |
0.17 |
$ |
0.13 |
$ |
0.39 |
$ |
0.25 |
|||
Diluted |
$ |
0.17 |
$ |
0.12 |
$ |
0.38 |
$ |
0.25 |
|||
Weighted-average common shares outstanding: |
|||||||||||
Basic |
|
8,565,725 |
|
8,461,531 |
|
8,549,352 |
|
8,449,623 |
|||
Diluted |
|
8,892,821 |
|
8,710,106 |
|
8,822,938 |
|
8,694,407 |
Condensed Statements of Cash Flows |
|||||||
Nine Months Ended |
|||||||
2024 |
2023 |
||||||
|
(Unaudited) |
(Unaudited) |
|||||
Cash Flows From Operating Activities |
|||||||
Net income |
$ |
3,322,000 |
|
$ |
2,133,000 |
|
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|||||||
Depreciation |
|
594,000 |
|
|
370,000 |
|
|
Amortization of finite-life intangible assets |
|
37,000 |
|
|
52,000 |
|
|
Share-based compensation expense |
|
1,250,000 |
|
|
506,000 |
|
|
Deferred income taxes |
|
39,000 |
|
|
32,000 |
|
|
Changes in operating assets and liabilities: |
|||||||
Accounts receivable |
|
223,000 |
|
|
(1,293,000 |
) |
|
Contract assets |
|
(155,000 |
) |
|
(284,000 |
) |
|
Inventories |
|
78,000 |
|
|
(264,000 |
) |
|
Prepaid expenses and other current assets |
|
1,234,000 |
|
|
105,000 |
|
|
Income tax payable, net |
|
(627,000 |
) |
|
(270,000 |
) |
|
Accounts payable and accrued liabilities |
|
(1,386,000 |
) |
|
(111,000 |
) |
|
Accrued compensation |
|
(31,000 |
) |
|
(660,000 |
) |
|
Net cash provided by operating activities |
|
4,578,000 |
|
|
316,000 |
|
|
Cash Flows From Investing Activities |
|||||||
Expenditures for property and equipment |
|
(265,000 |
) |
|
(1,221,000 |
) |
|
Expenditures for finite-life intangible assets |
|
(84,000 |
) |
|
(54,000 |
) |
|
Net cash used in investing activities |
|
(349,000 |
) |
|
(1,275,000 |
) |
|
Cash Flows From Financing Activities |
|||||||
Issuance of common stock upon exercise of options |
|
111,000 |
|
|
40,000 |
|
|
Taxes paid on net share settlement of stock option exercises |
|
- |
|
|
(305,000 |
) |
|
Repurchase of common stock |
|
- |
|
|
(153,000 |
) |
|
Net cash provided by (used in) financing activities |
|
111,000 |
|
|
(418,000 |
) |
|
Net increase (decrease) in cash |
|
4,340,000 |
|
|
(1,377,000 |
) |
|
Cash And Cash Equivalents |
|||||||
Beginning of period |
|
7,372,000 |
|
|
8,153,000 |
|
|
End of period |
$ |
11,712,000 |
|
$ |
6,776,000 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240507898776/en/
(952) 758-9299
investorrelations@electromed.com
ICR Westwicke
(617) 877-9641
mike.cavanaugh@westwicke.com
Source: