Welcome!

News Feed Item

InfuSystem Holdings, Inc. Reports First Quarter Revenue of $17.2 Million and Net Profit of $0.03 per Share

Maintains 2014 Guidance of High Single Digit Revenue Growth

MADISON HEIGHTS, MI--(Marketwired - May 05, 2014) - InfuSystem Holdings, Inc. (NYSE MKT: INFU) ("InfuSystem" or the "Company"), a leading national provider of infusion pumps and related services for the healthcare industry in the United States, today reported that net income in the first quarter was $0.6 million, equal to $0.03 per diluted share, compared to $0.1 million, or $0.00 per diluted share, in the prior year period. Gross profit for the three months ending March 31, 2014, was $12.1 million, a 16% increase compared to the same prior year period.

Revenues in the first quarter of 2014 were $17.2 million, up $2.5 million, or 17%, from $14.7 million in the first quarter of 2013. During the period, net revenues from rentals increased 10% while net revenues from product sales increased 90% over the same period in 2013. During the first quarter of 2014, an opportunistic product sale of a particular pump at a low gross margin, resulted in $0.9 million in additional revenue, without which revenues from product sales would have increased 19% and total revenues would have increased 11% over the prior year period. The remaining increase in revenues was primarily related to the addition of larger customers and increased penetration into existing customer accounts, both in sales and rentals.

"First quarter results reflect solid across-the-board performance," stated Eric K. Steen, Chief Executive Officer. "Organic growth of pump rentals and infusion product sales are generating the cash necessary to enable investments in new IT systems that are expected to further accelerate current business gains. At the same time, we continue to gain meaningful traction in the pain management area. This is in large part fueled by recent investments in sales and marketing efforts," he added. 

Mr. Steen also commented on current Executive Chairman Ryan Morris, who will be assuming the role of Non-Executive Chairman following the Company's May 8 Annual Meeting of Stockholders. "Ryan was the inspiration and impetus for the transformational change that has taken place at InfuSystem since his successful activist-led team gained control a little more than two years ago. His efforts are reflected in today's far-stronger organization and significantly higher shareholder valuation. I look forward to his continuing contributions."

Selling, General and Administrative expenses ("SG&A") increased to $7.6 million from $7.4 million, up approximately 2%, when compared to the first quarter of 2013. During the period, $0.2 million in severance was paid as part of the Company's strategic efforts to reshape the management team. Furthermore, compared to the prior year, the Company increased its spending in information technology, product expansion and cash versus stock compensation while reducing other SG&A expenses.

Other expenses were consistent for the three months ended March 31, 2014 compared to the similar period in 2013; excluding the one-time cash receipt of $0.3 million related to a mutual insurance policy received in the prior year period.

"We are very pleased with these strong results to date," said Jonathan P. Foster, Chief Financial Officer. "They meaningfully support our efforts to reduce the overall cost of existing long-term debt. We anticipate announcing additional advances during the course of this year."

Operating Results
Gross profit for the three months ended March 31, 2014 was $12.1 million, an increase of 16%, compared to the same period in the prior year. It represented 70% of revenues in the current period compared to 71% in the prior year. Without the aforementioned opportunistic pump sale, gross profit for the current period would have been 74%.

During the first quarter of 2014, we reassessed the estimated useful life of certain property and equipment. As a result, the estimated useful life of our medical equipment was changed from five to seven years due to the determination that we were using these assets longer than originally anticipated. A major factor in this change was the servicing of such equipment by our Kansas facility, which was acquired in 2010. As a result, disposal of such equipment has decreased significantly since that acquisition.

The change in the estimated useful lives of our medical equipment was accounted for as a change in accounting estimate, on a prospective basis, effective January 1, 2014. The change in estimated useful lives resulted in $0.5 million in less depreciation expense for the quarter ended March 31, 2014 than otherwise would have been recorded. As a result, cost of revenues in the current period is $0.5 million less than the same prior year period.

Selling and marketing expenses were $2.7 million compared to $2.4 million for the three months ended March 31, 2013. The increase in selling and marketing expenses was mainly attributed to increased commissions based on higher revenue for the comparable periods.

During the three months ended March 31, 2014, general and administrative ("G&A") expenses were $4.9 million compared to $5.0 million for the same prior year period. This maintaining of previous G&A spending levels is due to an increase during the current period in severance costs of $0.2 million, information technology ("IT") costs of $0.1 million, product services of $0.1 million and cash versus stock compensation of $0.1 million offset by a decrease in other G&A expenses by $0.1 million. In the prior year period, the Company experienced certain expenses of $0.3 million associated with a CEO search, the final Severance Payment made to the former CEO, and a one-time payment to an exiting Board member. G&A expenses have decreased from 34% to 28% of revenues for the first quarter of 2014 compared to the same period in the prior year.

Adjusted EBITDA was $3.3 million for the first quarter of 2014 compared to $3.7 million in 2013, which included $0.3 million for a one-time cash receipt related to a mutual insurance policy. The Company utilizes Adjusted EBITDA as a means to measure its operating performance. A reconciliation from Adjusted EBITDA, a non-GAAP measure, to net income can be found in the appendix.

"We are very pleased with maintaining strong EBITDA while investing in IT and new product services," said Jonathan P. Foster, Chief Financial Officer. He continued, "Total debt in the period increased slightly due to our $1.3 million investment in medical equipment in service within the current period, which was needed to support our rental revenue growth."

Financial Condition
Net cash used in operations for the three months ended March 31, 2014 was $0.6 million compared to cash generated of $1.6 million for the prior year period. The decrease in cash is primarily due to increases in accounts receivable in 2014. The cash flow effect from this change in accounts receivable is a decrease of $0.8 million more than the decrease in the same quarter last year. Additionally, operating cash flow decreased due to a significant decrease of $1.8 million in accounts payable and other current liabilities.

As of March 31, 2014, we had cash and cash equivalents of $0.5 million and $6.2 million of availability on the Credit Facility compared to $1.1 million and $5.9 million, respectively, at December 31, 2013.

Guidance
The Company maintained 2014 Guidance of high single digit revenue growth.

Conference Call
The Company will conduct a conference call for investors on Monday, May 5, 2014 at 9:00 a.m. Eastern Daylight Time to discuss first quarter performance and results. Eric K. Steen, Chief Executive Officer, and Jonathan P. Foster, Chief Financial Officer, will discuss the Company's financial performance and answer questions from the financial community. To participate in this call, please dial in toll-free (800) 447-0521 and use the confirmation number 37157235.

Non-GAAP Measures
This press release contains information prepared in conformity with GAAP as well as non-GAAP information. It is management's intent to provide non-GAAP financial information to enhance understanding of its consolidated financial information as prepared in accordance with GAAP. 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. Each non-GAAP financial measure and the corresponding GAAP financial measure are presented so as to not imply that more emphasis should be placed on the non-GAAP measure. The non-GAAP financial information presented may be determined or calculated differently by other companies. Additional information about non-GAAP financial measures and a reconciliation of those measures to the most directly comparable GAAP measures are included later in this release.

About InfuSystem Holdings, Inc.
InfuSystem Holdings, Inc. is a leading provider of infusion pumps and related services to hospitals, oncology practices and other alternate site healthcare providers. Headquartered in Madison Heights, Michigan, the Company delivers local, field-based customer support and also operates Centers of Excellence in Michigan, Kansas, California, Texas and Ontario, Canada. The Company's stock is traded on the NYSE MKT under the symbol INFU.

Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements can be identified by words such as: "anticipate," "continue," "intend," "plan," "goal," "seek," "believe," "project," "estimate," "expect," "strategy," "future," "likely," "may," "should," "will" and similar references to future periods. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on the Company's current beliefs, expectations and assumptions regarding the future of its business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of the Company's control. Actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause the Company's actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the Company's expectations regarding financial condition or results of operations in future periods; the Company's expectations regarding potential legislative and regulatory changes impacting, among other things, the level of reimbursement received from the Medicare and state Medicaid programs including CMS competitive bidding; the Company's expectations regarding the size and growth of the market for its products and services; the Company's ability to execute its business strategies to grow its business, including its ability to introduce new products and services; the Company's ability to hire and retain key employees; the Company's ability to remain in compliance with its credit facility; the Company's dependence on its Medicare Supplier Number; changes in third-party reimbursement processes and rates; availability of chemotherapy drugs used in the Company's infusion pump systems; physicians' acceptance of infusion pump therapy over alternative therapies; the Company's dependence on a limited number of third party payors; the Company's ability to maintain relationships with health care professionals and organizations; the adequacy of the Company's allowance for doubtful accounts; the Company's ability to comply with changing health care regulations; sequestration; natural disasters affecting the Company, its customers or its suppliers; industry competition; the Company's ability to implement information technology improvements and to respond to technological changes; dependence upon the Company's suppliers; and such other factors as discussed in Part I, Item 1A. Risk Factors of the Company's Annual Report on Form 10-K for the year ended December 31, 2013. Any forward-looking statement contained in this press release is based only on information currently available to the Company and speaks only as of the date on which it is made. The Company undertakes no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

Additional information about InfuSystem Holdings, Inc. is available at www.infusystem.com

FINANCIAL TABLES FOLLOW

                                                                            
                INFUSYSTEM HOLDINGS, INC. AND SUBSIDIARIES                  
                   CONDENSED CONSOLIDATED BALANCE SHEETS                    
                                                                            
                                                   March 31,   December 31, 
(in thousands, except share data)                    2014          2013     
                                                 ------------  ------------ 
                                                  (Unaudited)               
ASSETS                                                                      
Current Assets:                                                             
  Cash and cash equivalents                      $        496  $      1,138 
  Accounts receivable, less allowance for                                   
   doubtful accounts of $5,875 and $4,774 at                                
   March 31, 2014 and December 31, 2013,                                    
   respectively                                        12,099        10,697 
  Inventory                                             1,398         1,234 
  Other current assets                                    714           518 
  Deferred income taxes                                 2,296         2,296 
                                                 ------------  ------------ 
                                                                            
    Total Current Assets                               17,003        15,883 
Medical equipment held for sale or rental               2,955         3,664 
Medical equipment in rental service, net of                                 
 accumulated depreciation                              15,405        14,438 
Property & equipment, net of accumulated                                    
 depreciation                                             915           872 
Deferred debt issuance costs, net                       1,661         1,817 
Intangible assets, net                                 24,075        24,182 
Deferred income taxes                                  15,998        16,300 
Other assets                                              238           217 
                                                 ------------  ------------ 
                                                                            
  Total Assets                                   $     78,250  $     77,373 
                                                 ============  ============ 
                                                                            
LIABILITIES AND STOCKHOLDERS' EQUITY                                        
Current Liabilities:                                                        
  Accounts payable                               $      5,153  $      4,736 
  Current portion of long-term debt                     5,305         5,118 
  Other current liabilities                             2,479         3,187 
                                                 ------------  ------------ 
                                                                            
    Total Current Liabilities                          12,937        13,041 
Long-term debt, net of current portion                 21,864        21,609 
                                                 ------------  ------------ 
                                                                            
  Total Liabilities                              $     34,801  $     34,650 
                                                 ------------  ------------ 
                                                                            
Stockholders' Equity                                                        
Preferred stock, $.0001 par value: authorized                               
 1,000,000 shares; none issued                              -             - 
Common stock, $.0001 par value: authorized                                  
 200,000,000 shares; issued and outstanding                                 
 22,195,958 and 21,998,268, respectively, as of                             
 March 31, 2014 and 22,158,041 and 21,960,351,                              
 respectively, as of December 31, 2013                      2             2 
Additional paid-in capital                             89,925        89,783 
Retained deficit                                      (46,478)      (47,062)
                                                 ------------  ------------ 
                                                                            
Total Stockholders' Equity                             43,449        42,723 
                                                 ------------  ------------ 
                                                                            
  Total Liabilities and Stockholders' Equity     $     78,250  $     77,373 
                                                 ============  ============ 
                                                                            
                                                                            
                                                                            
                INFUSYSTEM HOLDINGS, INC. AND SUBSIDIARIES                  
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS               
                                                                            
                                                     Three Months Ended     
                                                          March 31,         
                                                 -------------------------- 
(in thousands, except share and per share data)      2014          2013     
                                                 ------------  ------------ 
                                                         (Unaudited)        
Net revenues:                                                               
  Rentals                                        $     14,850  $     13,445 
  Product sales                                         2,392         1,256 
                                                 ------------  ------------ 
    Net revenues                                       17,242        14,701 
                                                                            
Cost of revenues:                                                           
  Cost of revenues - Product, service and supply                            
   costs                                                2,890         2,579 
  Cost of revenues - Pump depreciation and loss                             
   on disposal                                          2,276         1,699 
                                                 ------------  ------------ 
Gross profit                                           12,076        10,423 
                                                 ------------  ------------ 
                                                                            
Selling, general and administrative expenses:                               
  Provision for doubtful accounts                       2,107         1,660 
  Amortization of intangibles                             629           672 
  Selling and marketing                                 2,655         2,408 
  General and administrative                            4,909         5,031 
                                                 ------------  ------------ 
                                                                            
    Total selling, general and administrative:         10,300         9,771 
                                                 ------------  ------------ 
                                                                            
Operating income                                        1,776           652 
                                                                            
Other income (expense):                                                     
  Interest expense                                       (827)         (874)
  Other income                                            (17)          312 
                                                 ------------  ------------ 
                                                                            
    Total other expense                                  (844)         (562)
                                                 ------------  ------------ 
                                                                            
Income before income taxes                                932            90 
Income tax expense                                       (349)          (39)
                                                 ------------  ------------ 
                                                                            
Net income                                       $        583  $         51 
                                                 ============  ============ 
                                                                            
Net income per share:                                                       
      Basic                                      $       0.03  $       0.00 
      Diluted                                    $       0.03  $       0.00 
Weighted average shares outstanding:                                        
      Basic                                        21,972,739    21,802,515 
      Diluted                                      22,456,143    22,238,160 
                                                                            
                                                                            
                                                                            
                INFUSYSTEM HOLDINGS, INC. AND SUBSIDIARIES                  
              CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS               
                                                                            
                                                     Three Months Ended     
                                                          March 31,         
                                                 -------------------------- 
(in thousands)                                       2014          2013     
                                                 ------------  ------------ 
                                                         (Unaudited)        
                                                                            
NET CASH (USED IN) PROVIDED BY OPERATING                                    
 ACTIVITIES                                      $       (636) $      1,632 
                                                 ------------  ------------ 
                                                                            
INVESTING ACTIVITIES                                                        
  Purchases of medical equipment and property          (1,127)       (1,777)
  Proceeds from sale of medical equipment and                               
   property                                             1,252         1,093 
                                                 ------------  ------------ 
NET CASH PROVIDED BY (USED IN) INVESTING                                    
 ACTIVITIES                                               125          (684)
                                                 ------------  ------------ 
                                                                            
FINANCING ACTIVITIES                                                        
  Principal payments on term loans and capital                              
   lease obligations                                  (14,394)       (2,802)
  Cash proceeds from bank loans and revolving                               
   credit facility                                     14,263             - 
                                                 ------------  ------------ 
NET CASH USED IN FINANCING ACTIVITIES                    (131)       (2,802)
                                                 ------------  ------------ 
Net change in cash and cash equivalents                  (642)       (1,854)
Cash and cash equivalents, beginning of period          1,138         2,326 
                                                 ------------  ------------ 
Cash and cash equivalents, end of period         $        496  $        472 
                                                 ============  ============ 
                                                                            
                                                                            
                                                                            
                 INFUSYSTEM HOLDINGS, INC. AND SUBSIDIARIES                 
                            GAAP RECONCILIATION                             
                                (UNAUDITED)                                 
                                                                            
                                                         Three Months Ended 
                                                              March 31,     
                                                         -------------------
(in thousands)                                             2014      2013   
                                                         --------- ---------
                                                                            
Net income (loss)                                        $     583 $      51
Adjustments:                                                                
  Interest Expense                                             827       874
  Income Tax Benefit                                           349        39
  Depreciation                                                 798     1,302
  Amortization                                                 629       672
                                                         --------- ---------
                                                                            
EBITDA                                                   $   3,186 $   2,938 
                                                                            
Stock compensation                                             142       458
Transition costs                                                 -       272
                                                                            
                                                         --------- ---------
EBITDA - Adjusted                                        $   3,328 $   3,668 
                                                         ========= =========
                                                                            
                                                                            

CONTACT:
Rob Swadosh
The Dilenschneider Group
212-922-0900

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Given the popularity of the containers, further investment in the telco/cable industry is needed to transition existing VM-based solutions to containerized cloud native deployments. The networking architecture of the solution isolates the network traffic into different network planes (e.g., management, control, and media). This naturally makes support for multiple interfaces in container orchestration engines an indispensable requirement.
Businesses and business units of all sizes can benefit from cloud computing, but many don't want the cost, performance and security concerns of public cloud nor the complexity of building their own private clouds. Today, some cloud vendors are using artificial intelligence (AI) to simplify cloud deployment and management. In his session at 20th Cloud Expo, Ajay Gulati, Co-founder and CEO of ZeroStack, discussed how AI can simplify cloud operations. He covered the following topics: why cloud mana...
"I will be talking about ChatOps and ChatOps as a way to solve some problems in the DevOps space," explained Himanshu Chhetri, CTO of Addteq, in this SYS-CON.tv interview at @DevOpsSummit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
Recently, REAN Cloud built a digital concierge for a North Carolina hospital that had observed that most patient call button questions were repetitive. In addition, the paper-based process used to measure patient health metrics was laborious, not in real-time and sometimes error-prone. In their session at 21st Cloud Expo, Sean Finnerty, Executive Director, Practice Lead, Health Care & Life Science at REAN Cloud, and Dr. S.P.T. Krishnan, Principal Architect at REAN Cloud, discussed how they built...
In his session at 21st Cloud Expo, Michael Burley, a Senior Business Development Executive in IT Services at NetApp, described how NetApp designed a three-year program of work to migrate 25PB of a major telco's enterprise data to a new STaaS platform, and then secured a long-term contract to manage and operate the platform. This significant program blended the best of NetApp’s solutions and services capabilities to enable this telco’s successful adoption of private cloud storage and launching o...
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settl...
Enterprises are universally struggling to understand where the new tools and methodologies of DevOps fit into their organizations, and are universally making the same mistakes. These mistakes are not unavoidable, and in fact, avoiding them gifts an organization with sustained competitive advantage, just like it did for Japanese Manufacturing Post WWII.
Docker containers have brought great opportunities to shorten the deployment process through continuous integration and the delivery of applications and microservices. This applies equally to enterprise data centers as well as the cloud. In his session at 20th Cloud Expo, Jari Kolehmainen, founder and CTO of Kontena, discussed solutions and benefits of a deeply integrated deployment pipeline using technologies such as container management platforms, Docker containers, and the drone.io Cl tool. H...
You know you need the cloud, but you’re hesitant to simply dump everything at Amazon since you know that not all workloads are suitable for cloud. You know that you want the kind of ease of use and scalability that you get with public cloud, but your applications are architected in a way that makes the public cloud a non-starter. You’re looking at private cloud solutions based on hyperconverged infrastructure, but you’re concerned with the limits inherent in those technologies.
IoT solutions exploit operational data generated by Internet-connected smart “things” for the purpose of gaining operational insight and producing “better outcomes” (for example, create new business models, eliminate unscheduled maintenance, etc.). The explosive proliferation of IoT solutions will result in an exponential growth in the volume of IoT data, precipitating significant Information Governance issues: who owns the IoT data, what are the rights/duties of IoT solutions adopters towards t...
With tough new regulations coming to Europe on data privacy in May 2018, Calligo will explain why in reality the effect is global and transforms how you consider critical data. EU GDPR fundamentally rewrites the rules for cloud, Big Data and IoT. In his session at 21st Cloud Expo, Adam Ryan, Vice President and General Manager EMEA at Calligo, examined the regulations and provided insight on how it affects technology, challenges the established rules and will usher in new levels of diligence arou...
For organizations that have amassed large sums of software complexity, taking a microservices approach is the first step toward DevOps and continuous improvement / development. Integrating system-level analysis with microservices makes it easier to change and add functionality to applications at any time without the increase of risk. Before you start big transformation projects or a cloud migration, make sure these changes won’t take down your entire organization.
It is ironic, but perhaps not unexpected, that many organizations who want the benefits of using an Agile approach to deliver software use a waterfall approach to adopting Agile practices: they form plans, they set milestones, and they measure progress by how many teams they have engaged. Old habits die hard, but like most waterfall software projects, most waterfall-style Agile adoption efforts fail to produce the results desired. The problem is that to get the results they want, they have to ch...
When you focus on a journey from up-close, you look at your own technical and cultural history and how you changed it for the benefit of the customer. This was our starting point: too many integration issues, 13 SWP days and very long cycles. It was evident that in this fast-paced industry we could no longer afford this reality. We needed something that would take us beyond reducing the development lifecycles, CI and Agile methodologies. We made a fundamental difference, even changed our culture...
Organizations planning enterprise data center consolidation and modernization projects are faced with a challenging, costly reality. Requirements to deploy modern, cloud-native applications simultaneously with traditional client/server applications are almost impossible to achieve with hardware-centric enterprise infrastructure. Compute and network infrastructure are fast moving down a software-defined path, but storage has been a laggard. Until now.