“Increase of 20.2% in Revenue vs. Same Prior Year Period as First Phase of Market Share Gains Significantly Impact Net Revenues.”
MADISON HEIGHTS, Michigan, Aug. 14, 2019 (GLOBE NEWSWIRE) -- InfuSystem Holdings, Inc. (NYSE American LLC: INFU) (“InfuSystem” or the “Company”), a leading national provider of infusion pumps and related services for the healthcare industry in the United States and Canada, today reported financial results for the second quarter ended June 30, 2019.
Second Quarter Highlights:
- Net revenues for the three and six months ended June 30, 2019 were $19.7 million and $37.9 million, respectively, a $3.3 million, or 20.2%, increase and $5.0 million, or 15.3%, increase, respectively, from the same prior year periods.
- Net income for the quarter ended June 30, 2019 was $0.4 million compared to a net loss of $0.5 million for the same prior year period. Net loss year-to-date June 30, 2019 was $0.6 million compared to a net loss of $0.3 million year-to-date June 30, 2018.
- Adjusted earnings before income taxes, depreciation, and amortization (“Adjusted EBITDA”) for the three and six months ended June 30, 2019 was $4.5 million and $7.6 million, respectively, a $1.4 million, or 42.6%, increase and $0.9 million, or 13.4%, increase, respectively, from the same prior year periods.
- Cash flows provided by operating activities were $4.3 million year-to-date, a decrease of $0.5 million, or 10.9%, from the same prior year period, primarily due to a net increase in the change in accounts receivable of $2.9 million related to our growth.
Commenting on the second quarter, Richard DiIorio, chief executive officer of InfuSystem, said, “We are operating according to plan, and as discussed in prior periods, we are starting to see the impact of the market share gains in our oncology business that began last year with elastomerics and is continuing this year with electronic pumps. We are also benefiting from growth in our pain management and infusion products markets. In addition to the market share gains, we are continuing to execute on a multiyear upgrade in revenue cycle management practices. Every additional dollar collected for services that have already been delivered is additive to revenue, earnings, EBITDA and cash flow.”
Mr. DiIorio continued, “I am, of course, pleased with our results in the first half of the year. The first phase involves primarily the market share gains made last year from elastomerics. In the second phase, we are completing the larger market share gains in electronic pumps resulting from our largest direct competitor changing its business model. The financial impact from the second phase market share gains will be seen in our financial results for the second half of 2019 and the first half of 2020.”
Mr. DiIorio concluded, “We continue to build the infrastructure to absorb this growth by adding strong talent to our already outstanding team, investing in our physical facilities and adding to and replenishing our already best-in-class fleet of electronic pumps. The benefits of these investments will not only enable our current growth, but we expect to contribute to long-term profitability and ongoing value creation for our shareholders.”
Conference Call
The Company will conduct a conference call for investors on Wednesday, August 14, 2019 at 9:00 a.m. Eastern Time to discuss second quarter 2019 results. The conference call may also include a discussion of Company developments, forward-looking statements and other material information about business and financial matters. To participate in this call, please dial (833) 366-1127 or (412) 902-6773, 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 (877) 344-7529 or (412) 317-0088, confirmation code 10134095, through August 21, 2019.
Condensed Consolidated Financial Statements
Certain balances in the condensed consolidated financial statements for the quarter and year-to-date ended June 30, 2018 have been reclassified to be consistent with the quarter and year-to-date ended June 30, 2019 presentation in accordance with GAAP.
Non-GAAP Measures
This press release contains information prepared in conformity with GAAP as well as non-GAAP financial information. 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 items that are not part of the normal course of business and that the Company’s management does not believe will have similar comparable year-over-year items or for non-operating items. A reconciliation of those measures to the most directly comparable GAAP measures is provided below.
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, Massachusetts and Ontario, Canada. The Company’s stock is traded on the NYSE American LLC under the symbol INFU.
Forward-Looking Statements
The financial results in this press release reflect preliminary results, which are not final until the Company's Form 10-Q for the quarter ended June 30, 2019 is filed. In addition, certain statements contained in this press release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, such as statements relating to future actions, business plans, objectives and prospects, future operating or financial performance. The words “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “expect,” “strategy,” “future,” “likely,” variations of such words, and other similar expressions, as they relate to the Company, are intended to identify forward-looking statements. Forward-looking statements are subject to factors, risks and uncertainties that could cause actual results to differ materially, including, but not limited to, our dependence on estimates of collectible revenue, potential litigation, changes in third-party reimbursement processes, changes in law and other risk factors disclosed in the Company’s most recent annual report on Form 10-K and, to the extent applicable, quarterly reports on Form 10-Q. All forward-looking statements made in this press release speak only as of the date hereof. We do not undertake any obligation to update any forward-looking statements to reflect future events or circumstances, except as required by law.
Additional information about InfuSystem Holdings, Inc. is available at www.infusystem.com.
FINANCIAL TABLES FOLLOW
| INFUSYSTEM HOLDINGS, INC. AND SUBSIDIARIES | |||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
| (UNAUDITED) | |||||||
| As of | |||||||
| June 30, | December 31, | ||||||
| (in thousands, except share data) | 2019 | 2018 | |||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 1,702 | $ | 4,318 | |||
| Accounts receivable, net | 11,218 | 9,593 | |||||
| Inventories | 2,742 | 2,254 | |||||
| Other current assets | 1,368 | 1,372 | |||||
| Total current assets | 17,030 | 17,537 | |||||
| Medical equipment for sale or rental | 1,927 | 1,601 | |||||
| Medical equipment in rental service, net of accumulated depreciation | 28,873 | 23,488 | |||||
| Property & equipment, net of accumulated depreciation | 1,539 | 1,445 | |||||
| Intangible assets, net | 17,616 | 19,865 | |||||
| Operating lease right of use assets | 5,182 | - | |||||
| Other assets | 194 | 137 | |||||
| Total assets | $ | 72,361 | $ | 64,073 | |||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 10,206 | $ | 7,091 | |||
| Current portion of long-term debt | 6,084 | 4,903 | |||||
| Other current liabilities | 4,244 | 2,796 | |||||
| Total current liabilities | 20,534 | 14,790 | |||||
| Long-term debt, net of current portion | 27,478 | 28,842 | |||||
| Deferred income taxes | 76 | - | |||||
| Operating lease liabilities, net of current portion | 4,021 | - | |||||
| Total liabilities | 52,109 | 43,632 | |||||
| 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 23,237,703 and 19,719,214, respectively, as of June 30, 2019 | |||||||
| and 23,095,513 and 19,577,024, respectively, as of December 31, 2018 | 2 | 2 | |||||
| Additional paid-in capital | 83,557 | 83,167 | |||||
| Retained deficit | (63,307 | ) | (62,728 | ) | |||
| Total stockholders’ equity | 20,252 | 20,441 | |||||
| Total liabilities and stockholders’ equity | $ | 72,361 | $ | 64,073 | |||
| See accompanying notes to unaudited condensed consolidated financial statements. | |||||||
| INFUSYSTEM HOLDINGS, INC. AND SUBSIDIARIES | |||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
| (UNAUDITED) | |||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||
| (in thousands, except share and per share data) | June 30 | June 30 | |||||||||||||
| 2019 | 2018 | 2019 | 2018 | ||||||||||||
| Net revenues | $ | 19,723 | $ | 16,415 | $ | 37,916 | $ | 32,898 | |||||||
| Cost of revenues | 8,367 | 6,729 | 16,219 | 12,975 | |||||||||||
| Gross profit | 11,356 | 9,686 | 21,697 | 19,923 | |||||||||||
| Selling, general and administrative expenses: | |||||||||||||||
| Amortization of intangibles | 1,124 | 1,165 | 2,249 | 2,352 | |||||||||||
| Selling and marketing | 2,476 | 2,326 | 5,078 | 4,627 | |||||||||||
| General and administrative | 6,785 | 6,399 | 13,819 | 12,560 | |||||||||||
| Total selling, general and administrative | 10,385 | 9,890 | 21,146 | 19,539 | |||||||||||
| Operating income (loss) | 971 | (204 | ) | 551 | 384 | ||||||||||
| Other expense: | |||||||||||||||
| Interest expense | (488 | ) | (296 | ) | (948 | ) | (611 | ) | |||||||
| Other (expense) income | (39 | ) | 1 | (60 | ) | (10 | ) | ||||||||
| Income (loss) before income taxes | 444 | (499 | ) | (457 | ) | (237 | ) | ||||||||
| Provision for income taxes | (63 | ) | (6 | ) | (122 | ) | (64 | ) | |||||||
| Net income (loss) | $ | 381 | $ | (505 | ) | $ | (579 | ) | $ | (301 | ) | ||||
| Net income (loss) per share: | |||||||||||||||
| Basic | $ | 0.02 | $ | (0.02 | ) | $ | (0.03 | ) | $ | (0.02 | ) | ||||
| Diluted | 0.02 | (0.02 | ) | (0.03 | ) | (0.02 | ) | ||||||||
| Weighted average shares outstanding: | |||||||||||||||
| Basic | 19,708,422 | 22,703,415 | 19,644,590 | 22,751,318 | |||||||||||
| Diluted | 20,583,434 | 22,703,415 | 19,644,590 | 22,751,318 | |||||||||||
| See accompanying notes to unaudited condensed consolidated financial statements. | |||||||||||||||
| INFUSYSTEM HOLDINGS, INC. AND SUBSIDIARIES | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| (UNAUDITED) | ||||||||
| Six Months Ended | ||||||||
| June 30 | ||||||||
| (in thousands) | 2019 | 2018 | ||||||
| NET CASH PROVIDED BY OPERATING ACTIVITIES | $ | 4,319 | $ | 4,846 | ||||
| INVESTING ACTIVITIES | ||||||||
| Purchase of medical equipment, property and equipment | (7,893 | ) | (2,743 | ) | ||||
| Proceeds from sale of medical equipment, property and equipment | 1,333 | 1,720 | ||||||
| NET CASH USED IN INVESTING ACTIVITIES | (6,560 | ) | (1,023 | ) | ||||
| FINANCING ACTIVITIES | ||||||||
| Principal payments on term loans, capital lease obligations and other financing | (2,256 | ) | (3,708 | ) | ||||
| Cash proceeds from other financing | 2,024 | - | ||||||
| Debt issuance costs | (3 | ) | - | |||||
| Common stock repurchased to satisfy statutory withholding on employee | ||||||||
| stock based compensation plans | (208 | ) | (5 | ) | ||||
| Common stock repurchased as part of Repurchase Program | - | (1,264 | ) | |||||
| Cash proceeds from stock plans | 68 | 46 | ||||||
| NET CASH USED IN FINANCING ACTIVITIES | (375 | ) | (4,931 | ) | ||||
| Net change in cash and cash equivalents | (2,616 | ) | (1,108 | ) | ||||
| Cash and cash equivalents, beginning of period | 4,318 | 3,469 | ||||||
| Cash and cash equivalents, end of period | $ | 1,702 | $ | 2,361 | ||||
| See accompanying notes to unaudited condensed consolidated financial statements. | ||||||||
| INFUSYSTEM HOLDINGS, INC. AND SUBSIDIARIES | |||||||||||||||||
| GAAP TO NON-GAAP RECONCILIATION | |||||||||||||||||
| (UNAUDITED) | |||||||||||||||||
| NET INCOME (LOSS) TO ADJUSTED EBITDA: | |||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||
| June 30 | June 30 | ||||||||||||||||
| (in thousands) | 2019 | 2018 | 2019 | 2018 | |||||||||||||
| GAAP net income (loss) | $ | 381 | $ | (505 | ) | $ | (579 | ) | $ | (301 | ) | ||||||
| Adjustments: | |||||||||||||||||
| Interest expense | 488 | 296 | 948 | 611 | |||||||||||||
| Income tax provision | 63 | 6 | 122 | 64 | |||||||||||||
| Depreciation | 1,896 | 1,625 | 3,676 | 3,253 | |||||||||||||
| Amortization | 1,124 | 1,165 | 2,249 | 2,352 | |||||||||||||
| Non-GAAP EBITDA | $ | 3,952 | $ | 2,587 | $ | 6,416 | $ | 5,979 | |||||||||
| Stock compensation costs | 284 | 265 | 530 | 391 | |||||||||||||
| Early termination fees for capital leases | - | - | 190 | - | |||||||||||||
| Shareholder costs | - | 147 | - | 147 | |||||||||||||
| Exited facility costs | - | 44 | 6 | 44 | |||||||||||||
| Management reorganization/transition costs | - | 90 | 45 | 137 | |||||||||||||
| ASC 842 accounting principle change | 108 | - | 108 | - | |||||||||||||
| Certain other non-recurring costs | 179 | 40 | 347 | 40 | |||||||||||||
| Non-GAAP Adjusted EBITDA | $ | 4,523 | $ | 3,173 | $ | 7,642 | $ | 6,738 | |||||||||
| GAAP Net Revenues | $ | 19,723 | $ | 16,415 | $ | 37,916 | $ | 32,898 | |||||||||
| Non-GAAP Adjusted EBITDA Margin | 22.9% | 19.3% | 20.2% | 20.5% | |||||||||||||
Non-GAAP Adjusted EBITDA Margin is defined as Non-GAAP Adjusted EBITDA as a percentage of GAAP Net Revenues.
| CONTACT: | Joe Dorame, Joe Diaz & Robert Blum | |
| Lytham Partners, LLC | ||
| 602-889-9700 |