Full Press Release Details
Inc. Announces Fiscal 2025 First Quarter Financial Results
delivers eighth consecutive quarter of year-over-year revenue and profit growth, while continuing to invest in strategic growth
PRAGUE, Minn.--(BUSINESS WIRE) -- Electromed, Inc. ("Electromed") (NYSE American: ELMD), a leader in innovative
airway clearance technologies, today announced financial results for the three months ended September 30, 2024 ("Q1 FY 2025").
FY 2025 Financial Highlights
Electromed team performed at a high level in the first quarter, generating strong results and getting fiscal 2025 off to an outstanding
start", said Jim Cunniff, President, and Chief Executive Officer. "This is particularly impressive given our excellent
results in fiscal 2024, and demonstrates the team's ability to grow profitably, enhancing shareholder value. Our direct
sales force now totals 53 reps and we increased our total number of sales territories to 57 by the end of the first quarter of
fiscal 2025. This highly accomplished team has been the catalyst for our growth. Additionally, we launched an exciting new marketing
campaign, called Triple Down on Bronchiectasis, which highlights the vital role of airway clearance as a key component
of a complete bronchiectasis treatment program, and the response has been overwhelmingly positive. Finally, to lead our various
market development initiatives, we have hired Peter Horwich as our new VP of Marketing. It has been an exciting quarter, and I
look forward to working towards another record-breaking year in fiscal 2025."
amounts below are for the three months ended September 30, 2024 ("Q1 FY 2025") and compare to the three months ended
September 30, 2023 ("Q1 FY 2024").
revenues grew 19.0% to $14.7 million, from $12.3 million in Q1 FY 2024.
in our direct homecare business increased year-over-year by 18.5% to $13.2 million, from $11.2 million. The increase in revenue
was due to an increase in referrals driven by an increase in direct sales representatives, higher quality referrals, higher net
revenue per approval, and efficiencies within our reimbursement department. Field sales force employees totaled 60 at quarter
end, 53 of which were direct sales representatives. The annualized homecare revenue per weighted average direct sales representative
in Q1 FY 2025 was $985,000, at the higher end of Electromed's increased annual target range of $900,000 to $1,000,000.
profit increased to $11.5 million, or 78.3% of net revenues from $9.5 million or 77.1% of net revenues, in Q1 FY 2024. The increase
in gross profit dollars for the three months ended September 30, 2024, was primarily due to increased revenue volume and a higher
average net revenue per device. The gross margin rate increased year over year, primarily driven by a higher average net revenue
general and administrative expenses were $9.4 million representing an increase of $0.2 million or 2.6%, compared to Q1 FY 2024.
The increase in the current period was primarily due to increases in share-based compensation associated with the vesting of performance-based
equity awards, salaries, and incentive compensation related to the higher average number of sales, sales support, marketing, and
an increase in reimbursement personnel to process higher patient referrals.
income was $1.9 million, compared to $0.1 million in Q1 FY 2024. The increase in operating income was driven primarily by increased
revenue and gross profit and growth in selling, general and administrative expense growth tracking below revenue growth.
income was $1.5 million, or $0.16 per diluted share, compared to $0.2 million, or $0.02 per diluted share in Q1 FY 2024.
of September 30, 2024, Electromed had $13.9 million in cash, $22.4 million in accounts receivable and no debt, achieving an overall
working capital of $33.6 million. The cash balance reflects a decrease of $2.2 million in the quarter. The decrease primarily
resulted from the share repurchase of approximately $4.5 million of Electromed common stock, offset by $2.3 million of positive
operating cash flow within the quarter.
Call and Webcast Information
conference call with members of Electromed management will be held at 5:00 p.m. Eastern Time on Tuesday, November 12, 2024.
parties may participate in the call by dialing (844) 826-3033 (Domestic) or (412) 317-5185 (International).
live conference call webcast will be accessible in the Investor Relations section of Electromed's website and directly via
those who cannot listen to the live broadcast, a replay will be available by dialing (844) 512-2921 (Domestic) or (412) 317-6671
(International) and referencing the replay pin number 10193708. Additionally, an online
replay will be available for one year in the Investor Relations section of Electromed's website at: https://investors.smartvest.com/events-and-presentations/default.aspx
Inc. manufactures, markets, and sells products that provide airway clearance therapy, including the SmartVest Airway Clearance
System, to patients with compromised pulmonary function. It is headquartered in New Prague, Minnesota, and was founded in 1992.
Further information about Electromed can be found at www.smartvest.com.
statements in this press release constitute forward-looking statements as defined in the U.S. Private Securities Litigation Reform
Act of 1995. Forward-looking statements can generally be identified by words such as "anticipate," "believe,"
continue," "estimate," "expect," "intend," "may," "plan" "potential,"
"should," "will," and similar expressions, including the negative of these terms, but they are not the
exclusive means of identifying such statements. Forward-looking statements cannot be guaranteed, and actual results may vary materially
due to the uncertainties and risks, known or unknown associated with such statements. Examples of risks and uncertainties for
Electromed include, but are not limited to, the competitive nature of our market; changes to Medicare, Medicaid, or private insurance
reimbursement policies; changes to state and federal health care laws; changes affecting the medical device industry; our ability
to develop new sales channels for our products such as the homecare distributor channel; our need to maintain regulatory compliance
and to gain future regulatory approvals and clearances; new drug or pharmaceutical discoveries; general economic and business
conditions; our ability to renew our line of credit or obtain additional credit as necessary; our ability to protect and expand
our intellectual property portfolio; the risks associated with expansion into international markets, as well as other factors
we may describe from time to time in Electromed's reports filed with the Securities and Exchange Commission (including Electromed's
most recent Annual Report on Form 10-K, as amended from time to time, and subsequent Quarterly Reports on Form 10-Q and Current
Reports on Form 8-K). Investors should not consider any list of such factors to be an exhaustive statement of all the risks, uncertainties
or potentially inaccurate assumptions investors should take into account when making investment decisions. Shareholders and other
readers should not place undue reliance on "forward-looking statements," as such statements speak only as of the date
of this press release. We undertake no obligation to update them in light of new information or future events.
Nagel, Chief Financial Officer
Cavanaugh, Investor Relations
| September 30, 2024 | June 30, 2024 | |||||||
| (Unaudited) | (Audited) | |||||||
| Assets | ||||||||
| Current Assets | ||||||||
| Cash and cash equivalents | $ | 13,864,000 | $ | 16,080,000 | ||||
| Accounts receivable (net of allowances for credit losses of $45,000) | 22,366,000 | 23,333,000 | ||||||
| Contract assets | 754,000 | 719,000 | ||||||
| Inventories | 3,434,000 | 3,712,000 | ||||||
| Prepaid expenses and other current assets | 592,000 | 329,000 | ||||||
| Total current assets | 41,010,000 | 44,173,000 | ||||||
| Property and equipment, net | 5,003,000 | 5,165,000 | ||||||
| Finite-life intangible assets, net | 660,000 | 657,000 | ||||||
| Other assets | 90,000 | 87,000 | ||||||
| Deferred income taxes | 2,152,000 | 2,152,000 | ||||||
| Total assets | $ | 48,915,000 | $ | 52,234,000 | ||||
| Liabilities and Shareholders' Equity | ||||||||
| Current Liabilities | ||||||||
| Accounts payable | $ | 1,784,000 | $ | 1,010,000 | ||||
| Accrued compensation | 2,150,000 | 3,893,000 | ||||||
| Income tax payable | 188,000 | 277,000 | ||||||
| Warranty reserve | 1,641,000 | 1,567,000 | ||||||
| Other accrued liabilities | 1,656,000 | 930,000 | ||||||
| Total current liabilities | 7,419,000 | 7,677,000 | ||||||
| Other long-term liabilities | 8,000 | 12,000 | ||||||
| Total liabilities | 7,427,000 | 7,689,000 | ||||||
| Shareholders' Equity | ||||||||
| Common stock, $0.01 par value per share, 13,000,000 shares authorized; | ||||||||
| 8,457,071 and 8,637,883 shares issued and outstanding, as of September 30, 2024, and June 30, 2024, respectively | 85,000 | 87,000 | ||||||
| Additional paid-in capital | 20,816,000 | 20,790,000 | ||||||
| Retained earnings | 20,587,000 | 23,668,000 | ||||||
| Total shareholders' equity | 41,488,000 | 44,545,000 | ||||||
| Total liabilities and shareholders' equity | $ | 48,915,000 | $ | 52,234,000 |
Statements of Operations
| Three Months Ended September 30 | ||||||||
| 2024 | 2023 | |||||||
| (Unaudited) | (Unaudited) | |||||||
| Net revenues | $ | 14,668,000 | $ | 12,324,000 | ||||
| Cost of revenues | 3,177,000 | 2,826,000 | ||||||
| Gross profit | 11,491,000 | 9,498,000 | ||||||
| Operating expenses | ||||||||
| Selling, general and administrative | 9,387,000 | 9,150,000 | ||||||
| Research and development | 166,000 | 206,000 | ||||||
| Total operating expenses | 9,553,000 | 9,356,000 | ||||||
| Operating income | 1,938,000 | 142,000 | ||||||
| Interest income, net | 195,000 | 77,000 | ||||||
| Net income before income taxes | 2,133,000 | 219,000 | ||||||
| Income tax expense (benefit) | 659,000 | 64,000 | ||||||
| Net income | $ | 1,474,000 | $ | 155,000 | ||||
| Income per share: | ||||||||
| Basic | $ | 0.17 | $ | 0.02 | ||||
| Diluted | $ | 0.16 | $ | 0.02 | ||||
| Weighted-average common shares outstanding: | ||||||||
| Basic | 8,564,489 | 8,537,388 | ||||||
| Diluted | 8,980,714 | 8,782,824 |
Statements of Cash Flows
| Three Months Ended September 30, | ||||||||
| 2024 | 2023 | |||||||
| (Unaudited) | (Unaudited) | |||||||
| Cash Flows from Operating Activities | ||||||||
| Net income | $ | 1,474,000 | $ | 155,000 | ||||
| Adjustments to reconcile net income to net cash provided by (used for) operating activities: | ||||||||
| Depreciation | 202,000 | 202,000 | ||||||
| Amortization of finite-life intangible assets | 18,000 | 12,000 | ||||||
| Share-based compensation expense | 697,000 | 371,000 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | 967,000 | 675,000 | ||||||
| Contract assets | (35,000 | ) | (57,000 | ) | ||||
| Inventories | 278,000 | (240,000 | ) | |||||
| Prepaid expenses and other assets | (266,000 | ) | 901,000 | |||||
| Income tax payable, net | (89,000 | ) | (226,000 | ) | ||||
| Accounts payable and accrued liabilities | 806,000 | (863,000 | ) | |||||
| Accrued compensation | (1,743,000 | ) | (1,174,000 | ) | ||||
| Net cash provided by (used for) operating activities | 2,309,000 | (244,000 | ) | |||||
| Cash Flows from Investing Activities | ||||||||
| Expenditures for property and equipment | (37,000 | ) | (109,000 | ) | ||||
| Expenditures for finite-life intangible assets | (21,000 | ) | (24,000 | ) | ||||
| Net cash used for investing activities | (58,000 | ) | (133,000 | ) | ||||
| Cash Flows from Financing Activities | ||||||||
| Issuance of common stock upon exercise of options | 84,000 | 29,000 | ||||||
| Taxes paid on net share settlement of stock awards | (15,000 | ) | - | |||||
| Repurchase of common stock | (4,536,000 | ) | - | |||||
| Net cash (used for) provided by financing activities | (4,467,000 | ) | 29,000 | |||||
| Net decrease in cash | (2,216,000 | ) | (348,000 | ) | ||||
| Cash And Cash Equivalents | ||||||||
| Beginning of period | 16,080,000 | 7,372,000 | ||||||
| End of period | $ | 13,864,000 | $ | 7,024,000 |