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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

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  • 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, Mich., March 10, 2011 (GLOBE NEWSWIRE) -- 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 national 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
 
(in thousands, except share data) December 31,
2010
December 31,
2009
     
ASSETS    
     
Current Assets:    
     
Cash and cash equivalents $ 5,014 $ 7,750
Accounts receivable, less allowance for doubtful accounts of $1,796 and $1,842 at December 31, 2010 and 2009, respectively  6,679  5,517
Inventory  1,699  925
Prepaid expenses and other current assets  750  395
Deferred income taxes  1,147  125
     
Total Current Assets  15,289  14,712
     
Property & equipment, net  16,672  13,499
Deferred debt issuance costs, net  658  781
Goodwill  64,092  56,580
Intangible assets, net  33,252  28,911
Other assets  401  207
     
Total Assets $ 130,364 $ 114,690
     
LIABILITIES AND STOCKHOLDERS' EQUITY    
     
Current Liabilities:    
     
Accounts payable $ 2,016 $ 1,306
Other current liabilities  4,631  1,573
Derivative liabilities  183  2,670
Current portion of long-term debt  5,551  5,501
     
Total Current Liabilities  12,381  11,050
     
Long-term debt, net of current portion  26,646  18,640
Deferred income taxes  5,788  3,314
Other liabilities  406  221
     
 Total Liabilities $ 45,221 $ 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 21,163,337 and 18,734,144, respectively; outstanding 21,117,516 and 18,734,144, respectively  2  2
Additional paid-in capital  87,004  81,410
Accumulated other comprehensive loss  (64)  —
Retained (deficit) earnings  (1,799)  53
     
Total Stockholders' Equity  85,143  81,465
     
 Total Liabilities and Stockholders' Equity $ 130,364 $ 114,690
     
 
INFUSYSTEM HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
 
  Three Months Ended December 31, Year Ended December 31,
(in thousands, except per share data) 2010 2009 2010 2009
         
Net revenues 13,075 10,662  47,229  38,964
         
Cost of revenues:        
Product and supply costs 2,206 1,753 7,730 6,200
Pump depreciation and disposals 1,860 1,121 5,945 4,127
Gross profit 9,009 7,788 33,545 28,637
Sales, general and administrative expenses:        
Provision for doubtful accounts 1,061 1,272 4,515 4,006
Amortization of intangibles 644 457 2,259 1,827
Selling and marketing 2,348 1,509 7,087 5,258
General administrative 7,960 3,190 20,622 12,218
Total sales, general and administrative expenses 12,013 6,428 34,483 23,309
Operating (loss) income (3,004) 1,360 (938) 5,328
Other (loss) income:        
Gain (loss) on derivatives and other income 417 1,122 207 (78)
Interest expense (571) (831) (3,352) (3,499)
Gain on extinguishment of long-term debt -- -- 1,118 --
Other expense (258) -- (258) --
Total other (loss) income (412) 291 (2,285) (3,577)
         
(Loss) income before income taxes (3,416) 1,651 (3,223) 1,751
Income tax benefit (expense) 1,258 (685) 1,371 (977)
Net (loss) income (2,158) 966 (1,852) 774
         
Net (loss) income per share:        
Basic (0.11) 0.05 (0.09) 0.04
Diluted (0.11) 0.05 (0.09) 0.04
Weighted average shares outstanding:        
Basic 20,261,591 18,697,729 19,721,378 18,609,797
Diluted 20,261,591 18,956,690 19,721,378 18,931,356
         
       
INFUSYSTEM HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
 
(in thousands) Year Ended
December 31,
2010
Year Ended
December 31,
2009
Year Ended
December 31,
2008
       
OPERATING ACTIVITIES      
Net (loss) Income $ (1,852) $ 774 $ 9,959
       
Adjustments to reconcile net (loss) income to net cash provided by operating activities:      
(Gain) loss on derivative liabilities  (207)  78  (9,815)
(Gain) on extinguishment of long-term debt  (1,118)   —   — 
Provision for doubtful accounts  4,515  4,006  3,187
Depreciation  5,357  4,122  3,935
Loss on disposal of pumps  994  342  553
Amortization of intangible assets  2,259  1,827  1,827
Amortization of deferred debt issuance costs  980  495  642
Stock-based compensation  3,860  753  1,550
Deferred income taxes  (1,236)  2,254  935
       
Changes in assets and liabilities, exclusive of effects of acquisitions:      
(Increase) in accounts receivable, net of provision   (3,948)  (5,355)  (1,835)
(Increase) decrease in other current assets  (506)  (253)  560
(Increase) in other assets  (173)  (207)  — 
Increase (decrease) in accounts payable and other liabilities  2,252  872  (601)
(Decrease) in derivative liabilities from termination of interest rate swap  (365)  —  —
       
NET CASH PROVIDED BY OPERATING ACTIVITIES  10,812  9,708  10,897
       
INVESTING ACTIVITIES      
Capital expenditures   (2,444)  (4,612)  (1,733)
Cash paid for acquisition, net of cash acquired  (16,616)  —  —
Proceeds from sale of property   —   1  10
Payment of deferred acquisition costs  —   —   (105)
Cash received for acquisition from I-Flow  —   —   784
       
NET CASH USED IN INVESTING ACTIVITIES  (19,060)  (4,611)  (1,044)
       
FINANCING ACTIVITIES      
Principal payments on term loan  (22,623)  (8,565)  (2,044)
Cash proceeds from term loan  30,000  —  —
Capitalized debt issuance costs  (808)  —  —
Common stock repurchased to satisfy minimum statutory withholding on stock-based compensation  (167)  (135)  (195)
Treasury shares repurchased  (68)  —  —
Principal payments on capital lease obligations  (822)  (160)  (61)
       
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES  5,512  (8,860)  (2,300)
       
Net change in cash and cash equivalents  (2,736)  (3,763)  7,553
       
Cash and cash equivalents, beginning of period  7,750  11,513  3,960
       
Cash and cash equivalents, end of period $ 5,014 $ 7,750 $ 11,513
       
 
INFUSYSTEM HOLDINGS, INC. AND SUBSIDIARIES
GAAP RECONCILIATION
 
Reconciliation from Net Income to Adjusted EBITDA:
 
   Three Months Ended  Year Ended
  December 31, December 31,
  2010 2009 2010 2009
Net (loss) income  $ (2,158)  $ 966  $  (1,852)  $ 774
Adjustments:        
Interest expense  571  831  3,352  3,499
Income tax (benefit) expense  (1,259)   685   (1,371)  977
Depreciation -- Pumps  1,376  1,058  4,960  3,785
Depreciation -- Other   112  93  397  337
Amortization  644  457  2,259  1,827
EBITDA  $ (714)  $ 4,090  $  7,745  $ 11,199
Adjustments:        
(Gain) loss on derivatives and other income  (417)  (1,122)  (207)  78
Other expense  258  --   258   --
Stock based compensation  4,098  224  5,909   753
Acquisition costs  --  --  965  --
Termination Benefits  450  --  450   877
(Gain) on loan payoff discount  --  --  (1,118)  --
Adj. EBITDA  $ 3,675  $ 3,192  $ 14,002  $ 12,907
CONTACT: INVESTOR CONTACT:
         Pat LaVecchia
         Vice Chairman
         Info@InfuSystem.com
         800-962-9656
Source: InfuSystem, Inc.