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Leading Supplier of Infusion Services
A Letter from our CEO
Since joining as CEO on April 1, 2013, I ve immensely enjoyed working with the InfuSystem team. My appreciation and
thanks go out to each and every colleague. They embraced change enthusiastically, contributing many new ideas to help transform our company.
management team is a collection of veterans and new hires who are collaborating and cooperating on issues that impact both sides of the business. The team now includes Chief Operating Officer Jan Skonieczny, who has been with InfuSystem for over 20
years and led our successful CMS bidding in 2013. Jonathan Foster joined as Chief Financial Officer in 2013 after serving on an interim basis the previous year. He led financial stability initiatives in 2013, including debt restructuring, improved
liquidity and advanced depreciation analysis, and moved InfuSystem s various entities to a single financial software platform providing even greater analytical access. Mike McReynolds, Chief Information Officer, joined in 2013 and leads an
enhanced and expanded IT group that is working to automate processes and improve internal efficiencies. Mike is delivering innovative electronic connectivity solutions to both business units. With IT innovation, and enhanced customer and partner
connectivity, comes efficiency and increased profitability. The long-term goal is 100% electronic data exchange making our company and our customers more efficient.
While 2013 was a year of improvements, both operationally and financially, 2014 will be a year with even more IT advancements designed to gain share and
reduce costs, with continued expansion of our product portfolio, therapy offering, and geographic footprint.
During my first earnings call with investors
in April, 2013, I said, InfuSystem is a leader in IV oncology, and oncology is the fastest growing segment in IV therapy. The population is growing, cancer rates are increasing; IV chemotherapeutic agents are a proven treatment method. I find
it a privilege to dedicate my professional energies to helping people lead healthy lives. As I begin my second year of service as Chief Executive Officer of InfuSystem, those sentiments still resonate.
Chief Executive Officer
Opportunity for Growth
| InfuSystem Holdings, Inc. and Subsidiaries | |||||||||
| Consolidated Statements of Operations and Comprehensive Income (Less) (USD $) In Thousands, except Share and Per Share data, unless otherwise specified | 12 Months Ended | ||||||||
| Dec. 31, 2013 | Dec. 31, 2012 | ||||||||
| Net revenues: | |||||||||
| Rentals | $ | 55,962 | $ | 53,471 | |||||
| Product sales | 6,318 | 5,357 | |||||||
| Net revenues | 62,280 | 58,828 | |||||||
| Cost of revenues: | |||||||||
| Cost of revenues - Product, service and supply costs | 11,274 | 9,165 | |||||||
| Cost of revenues - Pump depreciation and loss on disposal | 7,327 | 6,752 | |||||||
| Gross profit | 43,679 | 42,911 | |||||||
| Selling, general and administrative expenses: | |||||||||
| Provision for doubtful accounts | 6,534 | 5,251 | |||||||
| Amortization of intangible assets | 2,618 | 2,734 | |||||||
| Selling and marketing | 9,658 | 9,864 | |||||||
| General and administrative | 18,973 | 23,062 | |||||||
| Total selling, general and administrative: | 37,783 | 40,911 | |||||||
| Operating income | 5,896 | 2,000 | |||||||
| Other Income (loss): | |||||||||
| Interest expense | (3,497 | ) | (3,340 | ) | |||||
| Loss on extinguishment of long-term debt | (671 | ) | |||||||
| Other income (expense) | 301 | (141 | ) | ||||||
| Total other loss | (3,196 | ) | (4,152 | ) | |||||
| Income (loss) before income taxes | 2,700 | (2,152 | ) | ||||||
| Income tax (expense) benefit | (1,031 | ) | 663 | ||||||
| Net income (loss) | 1,669 | (1,489 | ) | ||||||
| Net Income (loss) per share: | |||||||||
| Basic | $ | 0.08 | $ | (0.07 | ) | ||||
| Diluted | $ | 0.08 | $ | (0.07 | ) | ||||
| Weighted average shares outstanding: | |||||||||
| Basic | 21,868,379 | 21,430,012 | |||||||
| Diluted | 22,074,513 | 21,430,012 | |||||||
| Comprehensive Income (loss): | |||||||||
| Net income (loss) | 1,669 | (1,489 | ) | ||||||
| Reclassification of hedging losses, net of taxes | 136 | ||||||||
| Comprehensive income (loss) | $ | 1,669 | $ | (1,353 | ) |
Past Performance Graphs
Overview of 2011-2013
InfuSystem Holdings, Inc. is a leading provider of infusion pumps and related services to hospitals, oncology practices and other alternate site healthcare
providers. Headquartered in Madison Heights, Michigan, the Company delivers local, field-based customer support and also operates Centers of Excellence in Michigan, Kansas, California, Texas and Ontario, Canada. The Company s stock is traded on
the NYSE MKT under the symbol INFU.
| Board of Directors | Executive Management | |
| Eric Steen | Jonathan Foster | |
| Chief Executive Officer | Chief Financial Officer | |
| Ryan Morris | Mike McReynolds | |
| Chairman | Chief Information Officer | |
| David C. Dreyer | Jan Skonieczny | |
| Director | Chief Operating Officer | |
| Joseph Whitters | David Haar | |
| Director | Sr. VP Sales & Marketing - Oncology | |
| Wayne Yetter | Tom Ruiz | |
| Director | Sr. VP Biomedical Sales | |
| John Haggerty | ||
| VP Biomedical Services |
| Share Statistics | Transfer Agent | |
| Shares outstanding as of | Mellon Investor Services LLC | |
| December 31, 2013: 21,960,351 | 480 Washington Blvd. | |
| Issue Type: Common Stock Sector: Healthcare | Jersey City, New Jersey 07310 800-522-6645 | |
| Industry: Healthcare Services | Auditors: BDO USA LLP |
31700 Research Park Drive, Madison Heights, MI 48071
Cautionary Statement about Forward-Looking Statements
This Annual Report on Form 10-K includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the
Securities Act ) and Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act ). All statements other than statements of historical facts contained in this Annual Report on Form 10-K, including
statements regarding the future financial position, liquidity, business strategy, plans, and objectives of management for future operations, are forward-looking statements. The words believe, may, will,
estimate, continue, anticipate, intend, should, plan, expect, strategy, future, likely, and similar expressions, as they relate
to us, are intended to identify forward-looking statements. We have based these forward-looking statements largely on current expectations and projections about future events and financial trends that we believe may affect financial condition,
results of operations, business strategy and financial needs. We undertake no obligation to update any forward-looking statement. Important factors that could cause our actual results and financial condition to differ materially from the
forward-looking statements include, without limitation, those described in Risk Factors and elsewhere in this Annual Report on Form 10-K, and the following:
These risks are not exhaustive. Other sections of this Annual Report on Form
10-K include additional factors which could adversely impact our business and financial performance. Moreover, we operate in a very competitive and rapidly changing environment. New risk factors emerge from time to time and it is not possible for us
to predict all risk factors, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking
You should not rely upon forward-looking statements as predictions of future events. Our actual results and financial condition may differ
materially from those indicated in the forward-looking statements. We qualify all of our forward-looking statements by these cautionary statements. Although we believe that the expectations reflected in the forward looking-statements are reasonable,
we cannot guarantee future results, levels of activity, performance or achievements. Therefore you should not rely on any of the forward-looking statements. In addition, with respect to all of our forward-looking statements, we claim the protection
of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.
Madison Heights, MI 48071