Full Press Release Details
Inc. Announces Record Revenue in Fiscal 2024 Third Quarter
initiatives drive record revenue
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 March 31, 2024 ("Q3 FY 2024").
FY 2024 Financial Highlights
am excited to announce another record revenue quarter in the third quarter of fiscal year 2024," said Jim Cunniff, President,
and Chief Executive officer. "Our company continues to operate at a high level, further driving the adoption of our best-in-class
product, backed by careful commercial expansion and excellent operational efficiency. Our strategy has again generated double-digit
revenue growth, with significant operating leverage that is resulting in strong profitability. The team remains focused on serving
patients and providers while simultaneously enhancing shareholder value through strong operating results. I look forward to continuing
this momentum into our final quarter of fiscal year 2024."
amounts below are for the three months ended March 31, 2024, and compare to the three months ended March 31, 2023 ("Q3 FY
2023") unless otherwise noted.
revenues grew 14.9% to $13.9 million, from $12.1 million in Q3 FY 2023.
in our direct homecare business increased year-over-year by 12.0% to $12.3 million, from $11.0 million. The increase in revenue
was due to an increase in sales representatives and efficiencies recognized within our reimbursement department as a result of
recent investments made to streamline the claims process. Field sales force employees totaled 59 at quarter end, 51 of which were
direct sales representatives. The annualized homecare revenue per weighted average direct sales representative in Q3 FY 2024 was
$969,000, slightly higher than Electromed's annual target range of $850,000 to $950,000.
profit increased to $10,382,000, or 74.8% of net revenues from $9,056,000 or 75.0% of net revenues in the prior fiscal year. The
increase in gross profit in Q3 FY2024 was primarily due to increased net revenues. The decrease in gross margin compared to Q3
FY 2023 was primarily due to costs associated with the wind down of our previous generator models.
general and administrative ("SG&A") expenses were $8,374,000 representing an increase of $680,000, or 8.8%, compared
to Q3 FY 2023. The increase in SG&A expense was primarily due to increased share-based compensation expense and payroll expense
related to the higher average number of sales, sales support, marketing, and reimbursement personnel to process an increased volume
of patient referrals.
income for the quarter was $1,841,000, compared to $1,196,000 in Q3 FY 2023. The increase in operating income was driven primarily
by increased net revenues.
income for the quarter was $1,493,000, or $0.17 per diluted share, compared to $1,075,000, or $0.12 per diluted share in Q3 FY
of March 31, 2024, Electromed had $11.7 million in cash, $23.9 million in accounts receivable and no debt, achieving working capital
of $35.0 million, and total shareholders' equity of $42.6 million. The cash balance reflects an increase of $4.3 million
for the nine months ended March 31, 2024, compared to a decrease in cash of $1.4 million in the nine months ended March 31, 2023.
This increase in cash in the current year was driven by an increase in operating income and management of working capital.
Call and Webcast Information
conference call with members of Electromed management will be held at 5:00 p.m. Eastern Time on Tuesday, May 7, 2024.
parties may participate in the call by dialing (877) 407-0789 (Domestic) or (201) 689-8562 (International).
live conference call webcast will be accessible in the Investor Relations section of Electromed's website and directly via
the following link: https://viavid.webcasts.com/starthere.jsp?ei=1665471&tp_key=f09d972070
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 13743606.
Additionally, an online replay will be available for one year in the Investor Relations section of Electromed's web site
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,"
"estimate," "continue," "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 the Company 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 the Company's reports filed with the Securities and Exchange
Commission (including the Company'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
| March 31, 2024 | June 30, 2023 | |||||||
| (Unaudited) | (Audited) | |||||||
| Assets | ||||||||
| Current Assets | ||||||||
| Cash and cash equivalents | $ | 11,712,000 | $ | 7,372,000 | ||||
| Accounts receivable (net of allowances for credit losses of $45,000) | 23,907,000 | 24,130,000 | ||||||
| Contract assets | 642,000 | 487,000 | ||||||
| Inventories | 4,178,000 | 4,221,000 | ||||||
| Prepaid expenses and other current assets | 592,000 | 1,577,000 | ||||||
| Income tax receivable | 291,000 | - | ||||||
| Total current assets | 41,322,000 | 37,787,000 | ||||||
| Property and equipment, net | 5,283,000 | 5,672,000 | ||||||
| Finite-life intangible assets, net | 648,000 | 605,000 | ||||||
| Other assets | 106,000 | 161,000 | ||||||
| Deferred income taxes | 1,542,000 | 1,581,000 | ||||||
| Total assets | $ | 48,901,000 | $ | 45,806,000 | ||||
| Liabilities and Shareholders' Equity | ||||||||
| Current Liabilities | ||||||||
| Accounts payable | 792,000 | 1,372,000 | ||||||
| Accrued compensation | 2,987,000 | 3,018,000 | ||||||
| Income tax payable | - | 336,000 | ||||||
| Warranty reserve | 1,525,000 | 1,378,000 | ||||||
| Other accrued liabilities | 1,022,000 | 1,949,000 | ||||||
| Total current liabilities | 6,326,000 | 8,053,000 | ||||||
| Other long-term liabilities | 31,000 | 86,000 | ||||||
| Total liabilities | 6,357,000 | 8,139,000 | ||||||
| Commitments and Contingencies | ||||||||
| Shareholders' Equity | ||||||||
| Common stock, $0.01 par value per share, 13,000,000 shares authorized; 8,655,727 and 8,555,238 shares issued and outstanding, as of March 31, 2024, and June 30, 2023, respectively | 87,000 | 86,000 | ||||||
| Additional paid-in capital | 20,342,000 | 18,788,000 | ||||||
| Retained earnings | 22,115,000 | 18,793,000 | ||||||
| Total shareholders' equity | 42,544,000 | 37,667,000 | ||||||
| Total liabilities and shareholders' equity | $ | 48,901,000 | $ | 45,806,000 |
Statements of Operations
| Three Months Ended | Nine Months Ended | |||||||||||||||
| March 31, | March 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Net revenues | $ | 13,871,000 | $ | 12,068,000 | $ | 39,884,000 | $ | 34,455,000 | ||||||||
| Cost of revenues | 3,489,000 | 3,012,000 | 9,459,000 | 8,386,000 | ||||||||||||
| Gross profit | 10,382,000 | 9,056,000 | 30,425,000 | 26,069,000 | ||||||||||||
| Operating expenses | ||||||||||||||||
| Selling, general and administrative | 8,374,000 | 7,694,000 | 25,699,000 | 22,937,000 | ||||||||||||
| Research and development | 167,000 | 166,000 | 480,000 | 618,000 | ||||||||||||
| Total operating expenses | 8,541,000 | 7,860,000 | 26,179,000 | 23,555,000 | ||||||||||||
| Operating income | 1,841,000 | 1,196,000 | 4,246,000 | 2,514,000 | ||||||||||||
| Interest income, net | 120,000 | 26,000 | 293,000 | 37,000 | ||||||||||||
| Net income before income taxes | 1,961,000 | 1,222,000 | 4,539,000 | 2,551,000 | ||||||||||||
| Income tax expense | 468,000 | 147,000 | 1,217,000 | 418,000 | ||||||||||||
| Net income | $ | 1,493,000 | $ | 1,075,000 | $ | 3,322,000 | $ | 2,133,000 | ||||||||
| Income per share: | ||||||||||||||||
| Basic | $ | 0.17 | $ | 0.13 | $ | 0.39 | $ | 0.25 | ||||||||
| Diluted | $ | 0.17 | $ | 0.12 | $ | 0.38 | $ | 0.25 | ||||||||
| Weighted-average common shares outstanding: | ||||||||||||||||
| Basic | 8,565,725 | 8,461,531 | 8,549,352 | 8,449,623 | ||||||||||||
| Diluted | 8,892,821 | 8,710,106 | 8,822,938 | 8,694,407 |
Statements of Cash Flows
| Nine Months Ended March 31, | ||||||||
| 2024 | 2023 | |||||||
| (Unaudited) | (Unaudited) | |||||||
| Cash Flows From Operating Activities | ||||||||
| Net income | $ | 3,322,000 | $ | 2,133,000 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation | 594,000 | 370,000 | ||||||
| Amortization of finite-life intangible assets | 37,000 | 52,000 | ||||||
| Share-based compensation expense | 1,250,000 | 506,000 | ||||||
| Deferred income taxes | 39,000 | 32,000 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | 223,000 | (1,293,000 | ) | |||||
| Contract assets | (155,000 | ) | (284,000 | ) | ||||
| Inventories | 78,000 | (264,000 | ) | |||||
| Prepaid expenses and other current assets | 1,234,000 | 105,000 | ||||||
| Income tax payable, net | (627,000 | ) | (270,000 | ) | ||||
| Accounts payable and accrued liabilities | (1,386,000 | ) | (111,000 | ) | ||||
| Accrued compensation | (31,000 | ) | (660,000 | ) | ||||
| Net cash provided by operating activities | 4,578,000 | 316,000 | ||||||
| Cash Flows From Investing Activities | ||||||||
| Expenditures for property and equipment | (265,000 | ) | (1,221,000 | ) | ||||
| Expenditures for finite-life intangible assets | (84,000 | ) | (54,000 | ) | ||||
| Net cash used in investing activities | (349,000 | ) | (1,275,000 | ) | ||||
| Cash Flows From Financing Activities | ||||||||
| Issuance of common stock upon exercise of options | 111,000 | 40,000 | ||||||
| Taxes paid on net share settlement of stock option exercises | - | (305,000 | ) | |||||
| Repurchase of common stock | - | (153,000 | ) | |||||
| Net cash provided by (used in) financing activities | 111,000 | (418,000 | ) | |||||
| Net increase (decrease) in cash | 4,340,000 | (1,377,000 | ) | |||||
| Cash And Cash Equivalents | ||||||||
| Beginning of period | 7,372,000 | 8,153,000 | ||||||
| End of period | $ | 11,712,000 | $ | 6,776,000 |