10 bagger
13 years ago
INFU.. $1.64.. earnings..
InfuSystem Holdings, Inc. Reports $13.1 Million of Revenues and $3.8 Million of Adjusted EBITDA for the Second Quarter of 2011
Revenues for the quarter increased 25% year over year
Adjusted EBITDA for the quarter increased to $3.8 million
Fifteenth straight quarter of year over year growth
MADISON HEIGHTS, Mich., Aug. 11, 2011 (GLOBE NEWSWIRE) -- InfuSystem Holdings, Inc. (NYSE Amex:INFU), the leading provider of infusion pumps and related services, today reported results for the second quarter ended June 30, 2011.
Revenues for the second quarter of fiscal 2011 were $13.1 million compared with $10.5 million for the prior year, up 25 percent. Adjusted EBITDA for the second quarter of fiscal 2011 was $3.8 million, versus $3.2 million a year ago.
Asset impairment charges 43,668 (This put all goodwill ill's behind them and profits $821K pre tax are from continued clean assets and operation's during this period..)
Mr. Sean McDevitt, Chief Executive Officer and Chairman, commented, "We performed well against many of our internal business metrics this past quarter to achieve our growth of 25% year over year. On a quarter over quarter basis, we were slightly below our targeted growth due to the unanticipated impact of the nationwide generic oncology drug shortage. Specifically, we experienced lower growth this past quarter primarily due to the prolonged shortage of Leucovorin which meaningfully limited oncologists' ability to prescribe our pumps. Drug shortages that affect InfuSystem are not uncommon, and are typically brief and minor in nature. It has been more than ten years since a shortage has had a meaningful impact on our business and, based on manufacturers' estimates of when supplies will become widely available, we expect the impacts of the current shortages on InfuSystem to work themselves out by late Q3/early Q4. If not for the Leucovorin shortage, we believe that we would have exceeded our internal revenue growth targets."
Mr. McDevitt continued, "I am very encouraged that in every respect, our aggressive growth in the number of significant new account wins has helped to offset the impact of the Leucovorin at individual oncology practice sites. Looking at the number of practices and the volume of pumps we have deployed to generate revenue, we remain very optimistic about our future prospects."
"Also, while sharing with our stockholders frustration with the headwinds in the markets and our stock price," Mr. McDevitt continued, "InfuSystem remains committed to its core vision of becoming a significant leader in the infusion and pre-owned medical equipment markets, increasing revenue, maintaining attractive EBITDA margins, generating substantial free cash flow, paying down debt, and thus improving our overall financial profile."
"Lastly, while we would have hoped to have announced another acquisition by this time, we remain extremely disciplined in our approach and have made considerable strides in acquisitions discussions that would leverage our penetration in our markets, are synergistic, diversify our revenue streams, and maintain our historical EBITDA margins. Our goal remains to achieve top line revenues of several hundred million dollars in our target markets over the next several years and additive, synergistic acquisitions will be a key part of that growth," Mr. McDevitt concluded.
Revenues for the second quarter ending June 30, 2011 were $13.1 million, up 25 percent from $10.5 million in the prior year period. The increase in revenues is related to obtaining business at new customer facilities and expansion into new product lines associated with our acquisitions.
Gross profit for the three months ending June 30, 2011 was $9.0 million, up 20 percent from $7.5 million in the prior year period. Gross margins were 68 percent of revenues for the latest year compared with 72 percent in the prior year period. The decrease in the gross margin percentage was primarily related to a higher mix of pump sales, services, and rentals as compared to third party billings.
Selling, general and administrative expenses (SG&A) for the second quarter of 2011 were $8.2 million, excluding a goodwill and intangible assets impairment charge of $43.7 million, 5 percent higher than the prior period's $7.8 million. The increase was due to the added expenses associated with the acquired businesses, investments made in the sales organization, and amortization of intangibles which was partially offset by the decreases in stock based compensation, acquisition related expenses, and bad debt expenses. As a percent of revenues, SG&A was 62 percent compared to 74 percent for the prior period.
As of June 30, 2011, the company determined that there may be market conditions relating to the stock price, elimination of warrants, and business forecasts to conclude that there may be impairment. Based upon the preliminary impairment analysis performed as of June 30, 2011, the company concluded there was an impairment of goodwill and intangible assets that resulted in a Non-Cash charge of $43.7 million. The majority of this goodwill impairment charge was related to the original purchase of InfuSystem in 2007. Although the analysis is preliminary and will need to be finalized, we do not anticipate further adjustments to this non-cash item.
Adjusted EBITDA was $3.8 million for the second quarter of 2011 versus $3.2 million in the prior period. The company utilizes Adjusted EBITDA as a means to measure its operating performance. A reconciliation of Adjusted EBITDA, a non-GAAP measure, to net income can be found in the appendix.
Other loss for the second quarter of 2011 was $0.5 million versus $0.3 million other loss in the prior period, reflecting reduced interest expense and no gain on extinguishment of long term debt as incurred in the prior period. The provision for income taxes was a benefit of $15.8 million for the quarter compared to a benefit of $717 thousand in the prior period. As a result, the second quarter net loss was $27.6 million, equal to $1.31 per diluted share, versus a $144 thousand net income, equal to $0.01 per diluted share in the prior period.
Financial Condition
Net cash provided by operations for the six months ending June 30, 2011 was $2.9 million, compared to $3.4 million for the prior period. Principle and interest payments of $1.6 million were paid during the quarter and the company ended the quarter with a cash balance of $1.7 million with $25.1 million in long-term debt, net of current.
Conference Call
InfuSystem Holdings, Inc. will host a conference call to share the results of its second quarter fiscal 2011 results on Thursday, August 11, at 10:00 a.m. Eastern Time. Chairman and Chief Executive Officer Sean McDevitt and Jim Froisland, Chief Financial Officer, will discuss the company's financial performance and answer questions from the financial community.
The company invites interested investors to listen to the presentation, which will be carried live on the company's Web site: www.infusystem.com in the Investors section. To participate by telephone, the dial-in number is 800-447-0521 with confirmation number 30085852. Those who wish to listen should either dial in or go to the web site several minutes prior to the call to register. A replay of the call can be accessed by dialing 888-843-7419, passcode 30085852#. An online archive of the conference call will remain on the company's website for the following 30 days.
About InfuSystem Holdings, Inc.
InfuSystem Holdings, Inc. is the 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, and Ontario, Canada. The company's stock is traded on the NYSE Amex under the symbol INFU.
Forward-Looking Statements
Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially form those predicted by such forward-looking statements. These risks and uncertainties include general economic conditions, as well as other risks, detailed from time to time in the company's publicly filed documents.
Additional information about InfuSystem Holdings, Inc. is available at www.infusystem.com.
FINANCIAL TABLES FOLLOW
INFUSYSTEM HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
June 30, December 31,
(in thousands, except share data) 2011 2010
(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $ 1,723 $ 5,014
Accounts receivable, less allowance for doubtful accounts of $1,812 and $1,796 at June 30, 2011 and December 31, 2010, respectively 6,727 6,679
Inventory 1,406 1,699
Prepaid expenses and other current assets 976 750
Deferred income taxes 1,209 1,147
Total Current Assets 12,041 15,289
Property & equipment, net 16,934 16,672
Deferred debt issuance costs, net 536 658
Goodwill 21,824 64,092
Intangible assets, net 31,469 33,252
Deferred income taxes 10,243 --
Other assets 851 401
Total Assets $ 93,898 $ 130,364
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 1,716 $ 2,016
Other current liabilities 2,579 4,631
Derivative liabilities 195 183
Current portion of long-term debt 6,419 5,551
Total Current Liabilities 10,909 12,381
Long-term debt, net of current portion 25,099 26,646
Deferred income taxes -- 5,788
Other liabilities 403 406
Total Liabilities $ 36,411 $ 45,221
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 21,185,028 and 21,163,337, respectively; outstanding 21,052,269 and 21,117,516, respectively 2 2
Additional paid-in capital 87,103 87,004
Accumulated other comprehensive loss (98) (64)
Retained deficit (29,520) (1,799)
Total Stockholders' Equity 57,487 85,143
Total Liabilities and Stockholders' Equity $ 93,898 $ 130,364
INFUSYSTEM HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended Six Months Ended
June 30 June 30
(in thousands, except share data) 2011 2010 2011 2010
Net revenues $ 13,133 $ 10,487 $ 26,090 $ 21,421
Cost of revenues:
Cost of revenues — Product, service and supply costs 2,174 1,719 4,316 3,394
Cost of revenues — Pump depreciation, sales and disposals 1,971 1,248 3,732 2,387
Gross profit 8,988 7,520 18,042 15,640
Selling, general and administrative expenses:
Provision for doubtful accounts 927 1,076 2,149 2,469
Amortization of intangibles 663 534 1,309 991
Asset impairment charges 43,668 -- 43,668 --
Selling and marketing 2,326 1,595 4,769 3,036
General and administrative 4,251 4,569 8,767 7,905
Total sales, general and administrative: 51,835 7,774 60,662 14,401
Operating (loss) income (42,847) (254) (42,620) 1,239
Other loss:
Gain (loss) on derivatives 83 (71) 83 (460)
Interest expense (564) (1,366) (1,105) (2,172)
Gain on extinguishment of long term debt -- 1,118 -- 1,118
Other income 2 -- -- --
Total other loss (479) (319) (1,022) (1,514)
(Loss) before income taxes (43,326) (573) (43,642) (275)
Income tax benefit 15,776 717 15,920 407
Net (loss) income $ (27,550) $ 144 $ (27,722) $ 132
Net (loss) income per share:
Basic $ (1.31) $ 0.01 $ (1.32) $ 0.01
Diluted $ (1.31) $ 0.01 $ (1.32) $ 0.01
Weighted average shares outstanding:
Basic 21,059,292 18,566,748 21,080,683 19,353,638
Diluted 21,059,292 18,943,962 21,080,683 19,922,468
INFUSYSTEM HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Six Months Ended
June 30
(in thousands) 2011 2010
OPERATING ACTIVITIES
Net (loss) income $ (27,722) $ 132
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
(Gain) loss on derivative liabilities (83) 460
Gain on extinguishment of long-term debt -- (1,118)
Provision for doubtful accounts 2,149 2,469
Depreciation 3,167 2,380
Loss on disposal of pumps 794 179
Amortization of intangible assets 1,309 991
Asset impairment charges 43,668 --
Amortization of deferred debt issuance costs 122 834
Stock-based compensation 502 997
Deferred income taxes (16,031) (814)
Changes in assets and liabilities, exclusive of effects of acquisitions:
(Increase) in accounts receivable, net of provision (2,197) (2,682)
Decrease (increase) in other current assets 67 (404)
(Increase) in other assets (166) (860)
(Decrease) increase in accounts payable and other liabilities (2,651) 1,165
Decrease in derivative liabilities from termination of interest rate swap -- (365)
NET CASH PROVIDED BY OPERATING ACTIVITIES 2,928 3,364
INVESTING ACTIVITIES
Capital expenditures (2,383) (343)
Acquisition of intangible assets (942) (400)
Cash paid for acquisition, net of cash acquired -- (16,418)
NET CASH (USED IN) INVESTING ACTIVITIES (3,325) (17,161)
FINANCING ACTIVITIES
Principal payments on term loan (2,061) (20,568)
Cash proceeds from term loan -- 30,000
Common stock repurchased to satisfy statutory witholding on stock based compensation -- (38)
Treasury shares repurchased (248) --
Principal payments on capital lease obligations (585) (331)
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES (2,894) 9,063
Net change in cash and cash equivalents (3,291) (4,734)
Cash and cash equivalents, beginning of period 5,014 7,750
Cash and cash equivalents, end of period $ 1,723 $ 3,016
INFUSYSTEM HOLDINGS, INC. AND SUBSIDIARIES
GAAP RECONCILIATION
(UNAUDITED)
Three Months Ended Six Months Ended
June 30 June 30
(in thousands, except share data) 2011 2010 2011 2010
Net (loss) income $ (27,550) $ 135 $ (27,722) $ 123
Adjustments:
Interest expense 564 1,366 1,105 2,172
Income tax (benefit) expense (15,776) (708) (15,920) (398)
Depreciation 1,609 1,209 3,167 2,380
Amortization 663 534 1,309 991
EBITDA (40,490) 2,536 (38,061) 5,268
Adjustments:
Asset impairment charges 43,668 -- 43,668 --
(Gain) loss on derivatives (83) 71 (83) 460
Stock based compensation 254 897 502 997
Sales and other incentives 308 -- 699 --
Acquisition related expenses 62 785 247 785
Severance 65 -- 65 --
Gain on debt extinguishment -- (1,118) -- (1,118)
Adjusted EBITDA $ 3,784 $ 3,171 $ 7,037 $ 6,392
CONTACT: INVESTOR CONTACT:
Pat LaVecchia
Vice Chairman
Info@InfuSystem.com
800-962-9656
Source: InfuSystem, Inc.
10 bagger
13 years ago
DD May 23, 2011..
INFUSYSTEM HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
March 31,
2011 December 31,
2010
(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents
$ 3,176 $ 5,014
Accounts receivable, less allowance for doubtful accounts of $1,912 and $1,796 at March 31, 2011 and December 31, 2010, respectively
7,056 6,679
Inventory
1,555 1,699
Prepaid expenses and other current assets
699 750
Deferred income taxes
1,127 1,147
Total Current Assets
13,613 15,289
Property & equipment, net
16,663 16,672
Deferred debt issuance costs, net
596 658
Goodwill
64,092 64,092
Intangible assets, net
33,416 33,252
Other assets
552 401
Total Assets
$ 128,932 $ 130,364
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable
$ 1,808 $ 2,016
Other current liabilities
4,449 4,631
Derivative liabilities
116 183
Current portion of long-term debt
5,900 5,551
Total Current Liabilities
12,273 12,381
Long-term debt, net of current portion
25,628 26,646
Deferred income taxes
5,642 5,788
Other liabilities
407 406
Total Liabilities
$ 43,950 $ 45,221
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 21,179,712 and 21,163,337, respectively; outstanding 21,055,953 and 21,117,516, respectively
2 2
Additional paid-in capital
86,967 87,004
Accumulated other comprehensive loss
(17 ) (64 )
Retained (deficit) earnings
(1,970 ) (1,799 )
Total Stockholders’ Equity
84,982 85,143
Total Liabilities and Stockholders’ Equity
$ 128,932 $ 130,364
See accompanying notes to consolidated financial statements.
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INFUSYSTEM HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended
March 31
(in thousands, except share data)
2011 2010
Net revenues
$ 12,957 $ 10,934
Cost of revenues:
Cost of revenues — Product, service and supply costs
2,143 1,675
Cost of revenues — Pump depreciation, sales and disposals
1,761 1,139
Gross profit
9,053 8,120
Selling, general and administrative expenses:
Provision for doubtful accounts
1,222 1,393
Amortization of intangibles
645 487
Selling and marketing
2,442 1,442
General and administrative
4,517 3,306
Total sales, general and administrative:
8,826 6,628
Operating income
227 1,492
Other loss:
Loss on derivatives
— (389 )
Interest expense
(541 ) (805 )
Other expense
(3 ) —
Total other loss
(544 ) (1,194 )
(Loss) income before income taxes
(317 ) 298
Income tax benefit (expense)
146 (310 )
Net loss
$ (171 ) $ (12 )
Net loss per share:
Basic and diluted
$ (0.01 ) $ (0.00 )
Weighted average shares outstanding:
Basic and diluted
21,102,312 18,903,611
See accompanying notes to consolidated financial statements.
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INFUSYSTEM HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Three Months Ended
March 31
(in thousands)
2011 2010
OPERATING ACTIVITIES
Net (loss)
$ (171 ) $ (12 )
Adjustments to reconcile net (loss) to net cash provided by operating activities:
Loss on derivative liabilities
— 389
Provision for doubtful accounts
1,222 1,393
Depreciation
1,558 1,141
Loss on disposal of pumps
271 65
Amortization of intangible assets
645 487
Amortization of deferred debt issuance costs
62 107
Stock-based compensation
248 100
Deferred income taxes
(146 ) —
Changes in assets and liabilities, exclusive of effects of acquisitions:
(Increase) in accounts receivable, net of provision
(1,599 ) (2,392 )
Decrease in other current assets
195 60
(Increase) in other assets
(11 ) (7 )
(Decrease) increase in accounts payable and other liabilities
(152 ) 132
NET CASH PROVIDED BY OPERATING ACTIVITIES
2,122 1,463
INVESTING ACTIVITIES
Capital expenditures
(2,438 ) (537 )
NET CASH USED IN INVESTING ACTIVITIES
(2,438 ) (537 )
FINANCING ACTIVITIES
Principal payments on term loan
(1,030 ) (818 )
Treasury shares repurchased
(229 )
Principal payments on capital lease obligations
(263 ) (140 )
NET CASH USED IN FINANCING ACTIVITIES
(1,522 ) (958 )
Net change in cash and cash equivalents
(1,838 ) (32 )
Cash and cash equivalents, beginning of period
5,014 7,750
Cash and cash equivalents, end of period
$ 3,176 $ 7,718
SUPPLEMENTAL DISCLOSURES
Cash paid for interest (including swap payments)
$ 479 $ 686
Cash paid for income taxes
$ 31 $ 7
NON-CASH TRANSACTIONS
Additions to property (a)
$ 350 $ 84
Property acquired pursuant to a capital lease
$ 624 $ 576
Gross issuance of vested restricted shares (number of shares)
25 25
(a) Amounts consist of current liabilities for net property that have not been included in investing activities. These amounts have not been paid for as of March 31, but will be included as a cash outflow from investing activities for capital expenditures when paid.
See accompanying notes to consolidated financial statements.
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INFUSYSTEM HOLDINGS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
1. Basis of Presentation and Nature of Operations
The information in this Quarterly Report on Form 10-Q includes the financial position of InfuSystem Holdings, Inc. and its consolidated subsidiaries (the “Company”) as of March 31, 2011 and December 31, 2010, the results of operations and cash flows for the three months ended March 31, 2011 and 2010. In the opinion of the Company, the consolidated statements for the all periods presented include all adjustments, consisting of normal recurring adjustments, necessary to present a fair statement of the results for such periods. The accompanying unaudited financial statements should be read in conjunction with the December 31, 2010 annual report 10-K.
The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). All intercompany accounts and transactions have been eliminated. Results of operations for the three months ended March 31, 2011 are not necessarily indicative of the results for an entire year.
The Company is the leading provider of infusion pumps and related services. The Company services 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 pump repair Centers of Excellence in Michigan, Kansas, California, and Ontario, Canada.
On June 15, 2010, the Company entered into a stock purchase agreement with the shareholders of First Biomedical, Inc., (First Biomedical) a Kansas corporation, to acquire all of the issued and outstanding stock of First Biomedical and completed the acquisition simultaneously. First Biomedical sells, rents, services and repairs new and pre-owned infusion pumps and other medical equipment. First Biomedical also sells a variety of primary and secondary tubing, cassettes, catheters and other disposable items that are utilized with infusion pumps. For more information, refer to the “Acquisition” discussion included in Note 3.
The Company supplies electronic ambulatory infusion pumps and associated disposable supply kits to oncology practices, infusion clinics and hospital outpatient chemotherapy clinics. These pumps and supplies are utilized primarily by colorectal cancer patients who receive a standard of care treatment that utilizes continuous chemotherapy infusions delivered via electronic ambulatory infusion pumps. The Company obtains an assignment of insurance benefits from the patient, bills the insurance company or patient accordingly, and collects payment. The Company provides pump management services for the pumps and associated disposable supply kits to over 1,300 oncology practices in the United States. The Company retains title to the pumps during this process.
In addition, the Company sells or rents new and pre-owned pole mounted and ambulatory infusion pumps to, and provides biomedical recertification, maintenance and repair services for oncology practices as well as other alternate site settings including home care and home infusion providers, skilled nursing facilities, pain centers and others. The Company also provides these products and services to customers in the small-hospital market.
The Company purchases new and pre-owned pole mounted and ambulatory infusion pumps from a variety of sources on a non-exclusive basis. The Company repairs, refurbishes and provides biomedical certification for the devices as needed. The pumps are then available for sale, rental or to be used within the Company’s ambulatory infusion pump management service.
2. Summary of Significant Accounting Policies
Principles of Consolidation
The consolidated financial statements include the accounts of the Company and all wholly owned organizations. All intercompany transactions and account balances have been eliminated in consolidation.
Segments
The Company operates in one business segment based on management’s view of its business for purposes of evaluating performance and making operating decisions, representing the only reportable segment in accordance with Accounting Standard Codification (“ASC”) 280, “Segment Reporting.”
The Company utilizes shared services including but not limited to, human resources, payroll, finance, sales, pump repair and maintenance services, as well as certain shared assets and sales, general and administrative costs. The Company is in the process of transitioning more shared services and synergies since the acquisition of First Biomedical. The Company’s approach is to make operational decisions and assess performance based on delivering products and services that together provide solutions to our customer base, utilizing functional management structure and shared services where possible. Based upon this business model, the chief operating decision maker only reviews consolidated financial information.
6
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Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to make estimates, assumptions and judgments that affect the amounts reported in the financial statements, including the notes thereto. The Company considers critical accounting policies to be those that require more significant judgments and estimates in the preparation of its consolidated financial statements, including the following: revenue recognition, which includes contractual adjustments; accounts receivable and allowance for doubtful accounts; sales return allowances; inventory reserves; income taxes; and goodwill valuation. Management relies on historical experience and other assumptions believed to be reasonable in making its judgment and estimates. Actual results could differ materially from those estimates.
Cash and Cash Equivalents
The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. The Company maintains its cash and cash equivalents primarily with two financial institutions and is fully insured with the Federal Deposit Insurance Corporation (FDIC) under the Temporary Liquidity Guarantee Program until December 31, 2012.
Accounts Receivable and Allowance for Doubtful Accounts
Accounts receivable are reported at the estimated net realizable amounts from patients, third-party payors and other direct pay customers for goods provided and services rendered. The Company performs periodic analyses to assess the accounts receivable balances. It records an allowance for doubtful accounts based on the estimated collectability of the accounts such that the recorded amounts reflect estimated net realizable value. Upon determination that an account is uncollectible, the account is written-off and charged to the allowance.
Accounts receivable are reduced by an allowance for amounts that could become uncollectible in the future. The Company’s estimate for its allowance for doubtful accounts is based upon management’s assessment of historical and expected net collections by payor. Due to continuing changes in the health care industry and third-party reimbursement it is possible that management’s estimates could change in the near term, which could have an impact on its financial position, results of operations, and cash flows.
Inventory
Our inventory consists of infusion pumps and related parts and supplies and is stated at the lower of cost, determined on a first in, first out basis, or market. The Company periodically performs an analysis of slow moving inventory and records a reserve based on estimated obsolete inventory.
Property and Equipment
Property and equipment is stated at acquired cost and depreciated using the straight-line method over the estimated useful lives of the related assets, ranging from three to seven years. Rental equipment, consisting primarily of infusion pumps that the Company acquires from third-parties, is depreciated over five years. Information Technology (IT) software and hardware are depreciated over three years. Leasehold improvements are amortized using the straight-line method over the life of the asset or the remaining term of the lease, whichever is shorter. Maintenance and minor repairs are charged to operations as incurred. When assets are sold, or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts and any gain or loss is recorded in the current period.
Long-Lived Assets
The Company accounts for the impairment and disposition of long-lived assets in accordance with ASC 360, “Property, Plant and Equipment.” This standard addresses financial accounting and reporting for the impairment of long-lived assets and for the disposal of long-lived assets. In accordance with this standard, long-lived assets to be held are reviewed for events or changes in circumstances, which indicate that their carrying value may not be recoverable. If an impairment indicator exists, the Company assesses the asset or asset group for recoverability. Recoverability of these assets is determined based upon the expected undiscounted future net cash flows from the operations to which the assets relate, utilizing management’s best estimates, appropriate assumptions and projections at the time. If the carrying value is determined not to be recoverable from future operating cash flows, the asset is deemed impaired and an impairment loss would be recognized to the extent the carrying value exceeded the estimated fair market value of the asset. The Company reviews the carrying value of long-lived assets if there is an indicator of impairment. The Company has determined that no impairment indicators existed as of March 31, 2011.
7
10 bagger
13 years ago
DD April 12, 2011..
InfuSystem Holdings, Inc. Reports $13.0 Million of Revenues and $3.3 Million of Adjusted EBITDA for the First Quarter of 2011
Revenues for the quarter increased 19%
Adjusted EBITDA for the quarter increased to $3.3 million
Cash from operations increased 47% from prior year
Fourteenth straight quarter of year over year growth
MADISON HEIGHTS, Mich., May 12, 2011 (GLOBE NEWSWIRE) -- InfuSystem Holdings, Inc. (NYSE Amex:INFU), the leading provider of infusion pumps and related services, today reported results for the first quarter ended March 31, 2011.
Revenues for the first quarter of fiscal 2011 were $13.0 million compared with $10.9 million for the prior year, up 19 percent. Adjusted EBITDA for the first quarter of fiscal 2011 was $3.3 million, versus $3.2 million a year ago.
Mr. Sean McDevitt, Chief Executive Officer and Chairman, commented, "I am extremely pleased with the first quarter 2011 results. It is clear that the strategic decisions we have made are producing tangible benefits. The increased focus on operational improvements and execution are generating positive results today and position us well for the future. Looking forward, we continue to evaluate additional growth opportunities that would leverage our penetration in the oncology and the infusion markets, our expertise in billing, as well as our strong reputation for customer service."
Revenues for the first quarter ending March 31, 2011 were $13.0 million, up 19 percent from $10.9 million in the prior year period. The increase in revenues is related to obtaining business at new customer facilities and expansion into new product lines associated with our acquisitions.
Gross profit for the three months ending March 31, 2011 was $9.1 million, up 11 percent from $8.1 million in the prior year period. It represented 70 percent of revenues for the latest year, compared with 74 percent in the prior year period. The decrease in the gross margin percentage was primarily related to higher pump depreciation and disposal costs with a higher mix of pump sales and services, as compared to third party billings.
Selling, general and administrative expenses (SG&A) for the first quarter of fiscal 2011 were $8.8 million, 33 percent higher than the prior period's $6.6 million. As a percent of revenues, SG&A was 68 percent compared to 61 percent for the prior period. The increases were primarily related to an increase in stock based compensation, increased investment in sales and marketing, and expenses associated with the acquired businesses.
Adjusted EBITDA was $3.3 million for the first quarter of 2011 versus $3.2 million in the prior period. 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.
Other loss for the first quarter of 2011 was $0.5 million versus $1.2 million other loss in the prior period, reflecting reduced interest expense and no loss on derivatives. As a result, the first quarter net loss was $171 thousand, equal to $0.01 loss per diluted share, versus a $12 thousand net loss, equal to $0.00 income per diluted share in the prior period.
Financial Condition
Net cash provided by operations for the first quarter ending March 31, 2011 was $2.1 million, up 40 percent from $1.5 million for the prior period. The latest quarter's results reflected higher levels of stock based compensation, depreciation and amortization of intangibles. The company had capital expenditures of $2.4 million, an increase of $1.9 million compared to the prior period. The cash balance decreased by $1.8 million from the previous period and the company ended the quarter with a cash balance of $3.2 million with $25.6 million in long-term debt, net of current.
Conference Call
InfuSystem Holdings, Inc. will host a conference call to share the results of its first quarter fiscal 2011 results on Thursday, May 12, at 10:00 a.m. Eastern Time. Chairman and Chief Executive Officer Sean McDevitt and Jim Froisland, Chief Financial Officer, will discuss the company's financial performance and answer questions from the financial community.
The company invites interested investors to listen to the presentation, which will be carried live on the company's Web site: www.infusystem.com in the Investors section. To participate by telephone, the dial-in number is 800-447-0521 with confirmation number 29553628. Those who wish to listen should either dial in or go to the web site several minutes prior to the call to register. A replay of the call can be accessed by dialing 888-843-7419, pass-code 29553628#. An online archive of the conference call will remain on the company's Web site for the following 30 days.
About InfuSystem Holdings, Inc.
InfuSystem Holdings, Inc. is the 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, and Ontario, Canada. The company's stock is traded on the NYSE Amex under the symbol INFU.
Forward-Looking Statements
Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially form those predicted by such forward-looking statements. These risks and uncertainties include general economic conditions, as well as other risks, detailed from time to time in the company's publicly filed documents.
Additional information about InfuSystem Holdings, Inc. is available at www.infusystem.com.
FINANCIAL TABLES FOLLOW
INFUSYSTEM HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
March 31, December 31,
(in thousands, except share data) 2011 2010
(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $ 3,176 $ 5,014
Accounts receivable, less allowance for doubtful accounts of $1,912 and $1,796 at March 31, 2011 and December 31, 2010, respectively 7,056 6,679
Inventory 1,555 1,699
Prepaid expenses and other current assets 699 750
Deferred income taxes 1,127 1,147
Total Current Assets 13,613 15,289
Property & equipment, net 16,663 16,672
Deferred debt issuance costs, net 596 658
Goodwill 64,092 64,092
Intangible assets, net 33,416 33,252
Other assets 552 401
Total Assets $ 128,932 $ 130,364
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 1,808 $ 2,016
Other current liabilities 4,449 4,631
Derivative liabilities 116 183
Current portion of long-term debt 5,900 5,551
Total Current Liabilities 12,273 12,381
Long-term debt, net of current portion 25,628 26,646
Deferred income taxes 5,642 5,788
Other liabilities 407 406
Total Liabilities $ 43,950 $ 45,221
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 21,179,712 and 21,163,337, respectively; outstanding 21,055,953 and 21,117,516, respectively 2 2
Additional paid-in capital 86,967 87,004
Accumulated other comprehensive loss (17) (64)
Retained (deficit) earnings (1,970) (1,799)
Total Stockholders' Equity 84,982 85,143
Total Liabilities and Stockholders' Equity $ 128,932 $ 130,364
INFUSYSTEM HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended
March 31
(in thousands, except share data) 2011 2010
Net revenues $ 12,957 $ 10,934
Cost of revenues:
Cost of revenues — Product, service and supply costs 2,143 1,675
Cost of revenues — Pump depreciation, sales and disposals 1,761 1,139
Gross profit 9,053 8,120
Sales, general and administrative expenses:
Provision for doubtful accounts 1,222 1,393
Amortization of intangibles 645 487
Selling and marketing 2,442 1,442
General and administrative 4,517 3,306
Total sales, general and administrative expenses 8,826 6,628
Operating income 227 1,492
Other loss:
Loss on derivatives -- (389)
Interest expense (541) (805)
Other expense (3) --
Total other loss (544) (1,194)
(Loss) income before income taxes (317) 298
Income tax benefit (expense) 146 (310)
Net loss $ (171) $ (12)
Net loss per share:
Basic and diluted $ (0.01) $ (0.00)
Weighted average shares outstanding:
Basic and diluted 21,102,312 19,903,611
INFUSYSTEM HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Three Months Ended
March 31
(in thousands) 2011 2010
OPERATING ACTIVITIES
Net (loss) $ (171) $ (12)
Adjustments to reconcile net (loss) to net cash provided by operating activities:
Loss on derivative liabilities -- 389
Provision for doubtful accounts 1,222 1,393
Depreciation 1,558 1,141
Loss on disposal of pumps 271 65
Amortization of intangible assets 645 487
Amortization of deferred debt issuance costs 62 107
Stock-based compensation 248 100
Deferred income taxes (146) --
Changes in assets and liabilities, exclusive of effects of acquisitions:
(Increase) in accounts receivable, net of provision (1,599) (2,392)
Decrease in other current assets 195 60
(Increase) in other assets (11) (7)
(Decrease) increase in accounts payable and other liabilities (152) 132
NET CASH PROVIDED BY OPERATING ACTIVITIES 2,122 1,463
INVESTING ACTIVITIES
Capital expenditures (2,438) (537)
NET CASH USED IN INVESTING ACTIVITIES (2,438) (537)
FINANCING ACTIVITIES
Principal payments on term loan (1,030) (818)
Treasury shares repurchased (229)
Principal payments on capital lease obligations (263) (140)
NET CASH USED IN FINANCING ACTIVITIES (1,522) (958)
Net change in cash and cash equivalents (1,838) (32)
Cash and cash equivalents, beginning of period 5,014 7,750
Cash and cash equivalents, end of period $ 3,176 $ 7,718
INFUSYSTEM HOLDINGS, INC. AND SUBSIDIARIES
GAAP RECONCILIATION
(UNAUDITED)
Three Months Ended
March 31
(in thousands, except share data) 2011 2010
Net loss $ (171) $ (12)
Adjustments:
Interest expense 541 805
Income tax (benefit) expense (146) 310
Depreciation 1,558 1,141
Amortization 645 487
EBITDA 2,427 2,731
Adjustments:
Loss on derivatives -- 389
Stock based compensation 248 100
Sales incentives and related expense 391 --
Acquisition related expenses 185 --
Adj. EBITDA $ 3,251 $ 3,220
CONTACT: INVESTOR CONTACT:
Pat LaVecchia
Vice Chairman
Info@InfuSystem.com
800-962-9656
Source: InfuSystem, Inc.
10 bagger
13 years ago
DD... Thursday, March 10, 2011
InfuSystem Holdings, Inc. Reports $13.1 Million of Revenues and $3.7 Million of Adjusted
EBITDA for the Fourth Quarter of 2010, its Thirteenth Straight Quarter of Year over Year Growth
• Revenues for quarter and year increased 23% and 21%, respectively
• Adjusted EBITDA for quarter and year increased 15% and 8%, respectively
• Third consecutive year of revenue and Adjusted EBITDA increases
• Cash from operations increased 11% from prior year
MADISON HEIGHTS, MICHIGAN, March 10, 2011—InfuSystem Holdings, Inc. (NYSE Amex: INFU), the leading provider of infusion pumps and related services, today reported results for the fourth quarter and fiscal year ended December 31, 2010.
Fiscal 2010: Continued Growth in Revenues, Adjusted EBITDA and Cash from Operations
“We are pleased with the fourth quarter and fiscal year performance and the reporting of the thirteenth straight quarter of year over year growth for the company. With the continued steady growth of our core business and strategic initiatives to broaden our product and service offering, we are more confident than ever in the long-term outlook for the company and industry as InfuSystem continues to successfully execute its long-term business strategy. We are a healthcare growth company with healthy profits” said Sean McDevitt, Chairman and Chief Executive officer.
Revenues for fiscal 2010 were $47.2 million, up 21 percent from $39.0 million in the prior year. The increase in revenues is primarily related to obtaining business at new customer facilities, increases from existing customers and expansion into new product lines such as those associated the First Biomedical acquisition.
Gross profit for fiscal 2010 was $33.5 million, up 17 percent from $28.6 million in the prior year. It represented 71 percent of revenues for the latest year, compared with 73 percent in fiscal 2009. The decrease in the gross margin percentage was primarily related to higher pump depreciation and a higher mix of pump sales and services, as compared to third party billings.
Selling, general and administrative expenses (SG&A) were $34.5 million, 48 percent higher than fiscal 2009’s $23.3 million. As a percent of revenues, SGA was 73 percent for the latest year, compared to 60% in fiscal 2009. The increases were primarily related to an increase in stock based compensation, along with the pre/post acquisition expenses of acquired business. Excluding the one-time expenses, on a normalized basis SGA, as a percent of revenues, is approximately the same as the 60% in fiscal 2009.
Adjusted EBITDA was $14.0 million for the latest fiscal year, up 8 percent from $12.9 million a year ago. 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.
Other loss for the latest year was $2.3 million versus $3.6 million other loss a year ago, reflecting reduced interest expense, gain on derivatives, and extinguishment of long-term debt. As a result, the fiscal 2010 net loss was $1.9 million, equal to $0.09 loss per diluted share, versus a $0.8 million net income, equal to $0.04 income per diluted share, a year earlier.
Fourth Quarter Growth in Revenues and Adjusted EBITDA
Revenues for the latest quarter were $13.1 million, up 23 percent from $10.7 million for the prior-year period. Gross profit increased to $9.0 million or 16% from $7.8 million in the fiscal 2009 fourth quarter. SG&A increased to $12.0 million from $6.4 million. Other expense of $0.4 million compared with $0.3 million of other income a year ago. The net loss for the most recent quarter was $2.2 million, equal to $0.11 per diluted share, versus the prior year quarter’s net income of $1.0 million, equal to $0.05 per diluted share. Adjusted EBITDA for the latest quarter was $3.7 million, up 15 percent from $3.2 million for the prior-year period.
Financial Condition
Net cash provided by operations for fiscal 2010 was $10.8 million, up 11 percent from $9.7 million for the prior year. The latest year’s results reflected higher levels of stock based compensation, depreciation and amortization of goodwill, accounts payable, inventory and amounts accrued. The company reduced capital expenditures from $4.6 million in fiscal 2009 to $2.4 million and paid $16.6 million in cash for acquisition of First Biomedical in June 2010. The cash balance decreased by $2.7 million and the company ended the year with a cash balance of $5.0 million with $26.6 million in long-term debt, net of current.
Conference Call
InfuSystem Holdings, Inc. will host a conference call to share the results of its fourth quarter and full-year fiscal 2010 results on Thursday, March 10, at 10:00 a.m. Eastern Time. Chairman and Chief Executive Officer Sean McDevitt and Jim Froisland, Chief Financial Officer, will discuss the company’s financial performance and answer questions from the financial community.
The company invites interested investors to listen to the presentation, which will be carried live on the company’s Web site: www.infusystem.com in the Investors section. To participate by telephone, the dial-in number is 800-446-1671 with confirmation number 29138075. Those who wish to listen should either dial in or go to the Web site several minutes prior to the call to register. A replay of the call can be accessed by dialing 888-843-7419, pass-code 29138075#. An online archive of the conference call will remain on the company’s Web site for the following 30 days.
About InfuSystem Holdings, Inc.
InfuSystem Holdings, Inc. is the 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, and Ontario, Canada. The company’s stock is traded on the NYSE Amex under the symbol INFU.
10 bagger
14 years ago
INHI.. $2.50
As I have followed and traded INHI since the Blank Check purchase,, it has continued to develop into a critical mass sized company.. This release points out that all the parts are finally coming together and in my IMO earnings from this point on will be more inline with growth.. I expect in the next 4 qtrs. combined earnings will be in the range of $0.22 to $0.26 rate and at the end of that period INHI will/should/could be earning at the rate of $0.55 EPS per year..hank
InfuSystem Holdings Reports 14% Revenue Increase and $3.2 Million of Adjusted EBITDA for the Second Quarter of 2010
Market Wire - Aug 05 at 17:17
Company Symbols: NASDAQ-OTCBB:INHI
MADISON HEIGHTS, MI -- (MARKET WIRE) -- 08/05/10 -- InfuSystem Holdings, Inc. (OTCBB: INHI) (OTCBB: INHIW) (OTCBB: INHIU), the leading provider of infusion pumps and associated products and services, today announced financial results and provided a business update for the second quarter ended June 30, 2010.
Revenue for the second quarter ended June 30, 2010 was $10.5 million, a 14% improvement compared to $9.2 million for the same period in 2009. The increase in revenue was predominantly the result of maturation of new accounts signed during the past several months combined with continued growth of new customers gained during the period.
Mr. Sean McDevitt, Chief Executive Officer, commented, "In the second quarter we continued to experience growth in our ambulatory infusion business. With our recent milestone acquisition of First Biomedical, Inc., InfuSystem has successfully broadened our service offerings to our oncology customers and now serves an even larger infusion market, including outside of oncology. Furthermore, the acquisition diversifies our revenue sources and provides us with numerous complementary opportunities that will continue to fuel our strong organic growth. In addition, InfuSystem continues to explore additional complementary businesses as potential acquisition candidates to further bolster our long term growth prospects."
Financial Results for the Second Quarter 2010
Revenue for the second quarter ended June 30, 2010 was $10,487,000, a 14% improvement compared to $9,173,000 for the same period in 2009. The increase in revenues is primarily due to increased penetration at facilities added during the past few months, as therapies are initiated for more and more patients at these facilities, combined with the addition of new customer accounts won during the quarter.
Adjusted EBITDA for the second quarter ended June 30, 2010 was $3,171,000, a 3% improvement compared to $3,083,000 for the same period in 2009. The increase in EBITDA for the second quarter of 2010 was primarily due to higher gross profit, partially offset by higher provision for doubtful accounts and higher selling expenses. The Company defines Adjusted EBITDA as earnings before interest, taxes, depreciation and amortization, and excludes gain (loss) on derivative financial instruments and stock-based compensation, and other non-recurring charges. Adjusted EBITDA is not a measure of performance calculated in accordance with generally accepted accounting principles in the United States ("GAAP"). The Company believes the presentation of Adjusted EBITDA is a relevant and useful measure to assist a reader's ability to understand the Company's operating performance. The Company's management likewise utilizes Adjusted EBITDA as a means to measure its operating performance. Reconciliation from Adjusted EBITDA, a non-GAAP measure, to net income can be found in the appendix.
The acquisition of First Biomedical in the final weeks of our second quarter had significant one-time impacts on our financial reporting. Operating loss for the second quarter of 2010 was ($254,000), compared to operating income of $1,344,000 for the same period in 2009. The decrease in operating income was primarily due to costs related to the recent First Biomedical acquisition, higher stock-based compensation expense and higher provision for doubtful accounts, partially offset by higher gross profit. Costs related to the acquisition of First Biomedical totaled approximately $785,000 in the second quarter. Net income for the second quarter of 2010 was $135,000 or $0.01 per diluted share, compared to net income of $2,760,000 or $0.15 per diluted share, for the same period in 2009. Net income for the second quarter of 2010 included a ($71,000) loss on derivative financial instruments, which was predominantly attributable to the change in the value of the Company's warrants, compared to a $2,006,000 gain on derivative financial instruments in the second quarter of 2009.
Total cash and cash equivalents were $3,016,000 at the end of the second quarter, compared to $7,750,000 at the end of 2009. As of June 30, 2010, InfuSystem had $34,246,000 of debt outstanding, compared to $24,141,000 at year end 2009. Both the decrease in cash and the increase in debt, as compared to year end 2009, are primarily related to the acquisition of First Biomedical and the refinancing of the Company's debt, partially offset by continued strong operating cash flows. The Company also had a $5,000,000 undrawn revolving credit facility in place at June 30, 2010.
Conference Call
The company will host an investor conference call today at 5:00 p.m. ET to discuss its financial results for the second quarter 2010. The investor conference call will be available via live webcast on InfuSystem's website at www.infusystem.com in the Investors section. To participate by telephone, the dial-in number is (888) 713-4485. The access code is 9667934. Investors are advised to dial into the call at least ten minutes prior to the call to register. A replay of the call can be accessed by dialing (888) 203-1112, confirmation number 9667934. An online archive of the conference call will remain on the Company's website for at least 90 days after the call.
About InfuSystem Holdings, Inc.
InfuSystem is the leading supplier of infusion services to oncologists and other outpatient treatment settings. The Company provides pole mounted and ambulatory pumps, supplies and related clinical, biomedical and billing services to practices and patients, nationwide. The Company's unique suite of services appeals to practices, patients and payors by improving access to clinically necessary medical equipment, while driving down costs and maximizing clinical outcomes.
Forward-Looking Statements
Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those predicted by such forward-looking statements. These risks and uncertainties include general economic conditions, as well as other risks detailed from time to time in InfuSystem's publicly filed documents.
INFUSYSTEM HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS
June 30, December 31,
(in thousands, except share data) 2010 2009
------------- -------------
(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $ 3,016 $ 7,750
Accounts receivable, less allowance for
doubtful accounts of $2,178 and $1,842 at
June 30, 2010 and December 31, 2009,
respectively 7,459 5,517
Inventory 1,650 925
Prepaid expenses and other current assets 614 395
Deferred income taxes 255 125
------------- -------------
Total Current Assets 12,994 14,712
Property & equipment, net 16,994 13,499
Deferred debt issuance costs, net 804 781
Goodwill 64,068 56,580
Intangible assets, net 34,312 28,911
Other assets 286 207
------------- -------------
Total Assets $ 129,458 $ 114,690
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 1,893 $ 1,306
Other current liabilities 2,219 1,573
Derivative liabilities 750 2,670
Current portion of long-term debt; December
31, 2009 includes $4,928 payable
to Kimberly-Clark (I-Flow) 5,011 5,501
------------- -------------
Total Current Liabilities 9,873 11,050
Long-term debt, net of current portion;
December 31, 2009 includes $16,757 payable
to Kimberly-Clark (I-Flow) 29,235 18,640
Deferred income taxes 5,354 3,314
Other Liabilities 488 221
------------- -------------
Total Liabilities $ 44,950 $ 33,225
------------- -------------
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 19,869,239 and 18,734,144,
respectively 2 2
Additional paid-in capital 84,330 81,410
Retained earnings 176 53
------------- -------------
Total Stockholders' Equity 84,508 81,465
------------- -------------
Total Liabilities and Stockholders' Equity $ 129,458 $ 114,690
============= =============
INFUSYSTEM HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended Six Months Ended June
June 30, 30,
---------------------- ----------------------
(in thousands, except per
share data) 2010 2009 2010 2009
---------- ---------- ---------- ----------
Net revenues $ 10,487 $ 9,173 $ 21,421 $ 18,400
Operating expenses:
Cost of Revenues --
Product and supply costs 1,719 1,384 3,394 2,654
Cost of Revenues -- Pump
depreciation and
disposals 1,248 894 2,387 1,734
Provision for doubtful
accounts 1,076 875 2,469 1,844
Amortization of
intangibles 534 457 991 914
Selling and marketing 1,595 1,419 3,036 2,739
General and
administrative 4,569 2,800 7,905 5,910
---------- ---------- ---------- ----------
Total Operating Expenses 10,741 7,829 20,182 15,795
---------- ---------- ---------- ----------
Operating (loss) income (254) 1,344 1,239 2,605
Other (loss) income:
(Loss) gain on
derivatives (71) 2,006 (460) (636)
Interest expense (1,366) (851) (2,172) (1,837)
Other income 1,118 - 1,118 -
---------- ---------- ---------- ----------
Total other (loss)
income (319) 1,155 (1,514) (2,473)
---------- ---------- ---------- ----------
(Loss) income before
income taxes (573) 2,499 (275) 132
Income tax benefit 708 261 398 121
---------- ---------- ---------- ----------
Net income 135 2,760 123 253
---------- ---------- ========== ==========
Net income per share:
Basic 0.01 0.15 0.01 0.01
Diluted 0.01 0.15 0.01 0.01
Weighted average shares
outstanding:
Basic 19,798,719 18,566,748 19,353,638 18,549,389
Diluted 20,811,813 18,943,962 19,922,468 18,915,995
INFUSYSTEM HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Six Months Ended
June 30
--------------------
(in thousands) 2010 2009
--------- ---------
OPERATING ACTIVITIES
Net Income 123 253
Adjustments to reconcile net income to net
cash provided by operating activities:
Loss on derivative liabilities 460 636
Gain on extinguishment of long-term debt (1,118) -
Provision for doubtful accounts 2,469 1,844
Depreciation and loss on disposal of pumps 2,559 2,093
Amortization of intangible assets 991 914
Amortization of deferred debt issuance
costs 834 264
Stock-based compensation 997 545
Deferred income taxes (814) 787
Changes in assets and liabilities,
exclusive of effects of acquisitions:
Increase in accounts receivable, net of
provision (2,682) (2,653)
Increase in other current assets (318) (1,317)
Increase in other assets (906) (511)
Increase in accounts payable and other
liabilities 1,134 657
Decrease in derivative liabilities from
termination of interest rate swap (365) -
--------- ---------
NET CASH PROVIDED BY OPERATING ACTIVITIES 3,364 3,512
--------- ---------
INVESTING ACTIVITIES
Capital expenditures (743) (2,672)
Cash paid for acquisition, net of cash
acquired (16,418) -
Proceeds from sale of property - 1
Other assets - (18)
--------- ---------
NET CASH USED IN INVESTING ACTIVITIES (17,161) (2,689)
--------- ---------
FINANCING ACTIVITIES
Principal payments on term loan (20,568) (6,929)
Cash proceeds from term loan 30,000 -
Common stock repurchased to satisfy
statutory withholding on
Stock-based compensation (38) -
Principal payments on capital lease
obligation (331) (43)
--------- ---------
NET CASH PROVIDED BY (USED IN) FINANCING
ACTIVITIES 9,063 (6,972)
--------- ---------
Net change in cash and cash equivalents (4,734) (6,149)
Cash and cash equivalents, beginning of
period 7,750 11,513
--------- ---------
Cash and cash equivalents, end of period 3,016 5,364
========= =========
INFUSYSTEM HOLDINGS, INC.
GAAP RECONCILIATION
(UNAUDITED)
Reconciliation from Net Income to Adjusted EBITDA
Three Months Six Months
Ended Ended
June 30, June 30,
---------------- ----------------
2010 2009 2010 2009
------- ------- ------- -------
Net Income $ 135 $ 2,760 $ 123 $ 253
Adjustments:
Interest expense 1,366 851 2,172 1,837
Income tax benefit (708) (261) (398) (121)
Depreciation 1,209 1,015 2,380 1,886
Amortization 534 457 991 914
------- ------- ------- -------
EBITDA $ 2,536 $ 4,822 $ 5,268 $ 4,769
------- ------- ------- -------
Adjustments:
Loss (gain) on derivatives 71 (2,006) 460 636
Stock based compensation 897 267 997 545
Acquisition costs 785 - 785 -
Gain on debt extinguishment (1,118) - (1,118) -
------- ------- ------- -------
Adj. EBITDA $ 3,171 $ 3,083 $ 6,392 $ 5,950
======= ======= ======= =======
Sean Whelan
CFO
InfuSystem
(248) 291-1210
Investor Contacts:
Asher Dewhurst
Bob East
Westwicke Partners
Email Contact
Tel: (443) 213-0500
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