Thursday, August 11, 2011

InfuSystem Holdings, Inc. Reports $13.1 Million of Revenues and $3.8 Million of Adjusted EBITDA for the Second Quarter of 201

Listen to this Post. Powered by iSpeech.org





  • Revenues for the quarter increased 25% year over year


  • Adjusted EBITDA for the quarter increased to .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 .1 million compared with .5 million for the prior year, up 25 percent. Adjusted EBITDA for the second quarter of fiscal 2011 was .8 million, versus .2 million a year ago.



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 .1 million, up 25 percent from .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 .0 million, up 20 percent from .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 .2 million, excluding a goodwill and intangible assets impairment charge of .7 million, 5 percent higher than the prior period’s .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 .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 .8 million for the second quarter of 2011 versus .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 .5 million versus .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 .8 million for the quarter compared to a benefit of 7 thousand in the prior period.�As a result, the second quarter net loss was .6 million, equal to .31 per diluted share, versus a 4 thousand net income, equal to .01 per diluted share in the prior period.



Financial Condition



Net cash provided by operations for the six months ending June 30, 2011 was .9 million, compared to .4 million for the prior period. Principle and interest payments of .6 million were paid during the quarter and the company ended the quarter with a cash balance of .7 million with .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


CONTACT:  INVESTOR CONTACT:
Pat LaVecchia
Vice Chairman
Info@InfuSystem.com
800-962-9656



News

http://bit.ly/pgmrdd

No comments:

Post a Comment