InfuSystem Holdings Reports $10.7 Million of Revenue and $3.2 Million of Adjusted EBITDA for the Fourth Quarter of 2009
MADISON HEIGHTS, MI--(Marketwire - March 2, 2010) - InfuSystem Holdings, Inc. (
Revenue for the fourth quarter ended December 31, 2009 was $10.7 million, a 17% improvement compared to $9.1 million for the same period in 2008. For the full year 2009, the Company reported revenue of $39.0 million, a 10% increase compared to 2008 revenues of $35.4 million.
Mr. Sean McDevitt, Chief Executive Officer, commented, "InfuSystem continues to build sales momentum with the addition of new oncology clinic customers as demonstrated by our solid financial results. We continue to realize benefits from the refocusing of our sales force and the back-office efficiency tools that we implemented this past summer. With the continued steady growth of our core business, strategic initiatives to broaden our product and service offering and the announcement of the warrant exchange offer, we are more confident than ever in the long-term outlook for the company and industry."
Financial Results for the Fourth Quarter 2009
Revenue for the fourth quarter ended December 31, 2009 was $10.7 million, a 17% improvement compared to $9.1 million for the same period in 2008. The increase in revenues is primarily due to obtaining business at new customer facilities, timing of documentation collection and related billings, improved operational efficiency tools, as well as increased reimbursement. Operating income for the fourth quarter of 2009 was $1.4 million versus operating income of $1.5 million for the same period in 2008. The decrease in operating income was due, primarily, to an increase in the provision for doubtful accounts and pump maintenance costs, partially offset by higher revenues and lower stock-based compensation expense. The increase in the provision for doubtful accounts is directly related to a slight increase in the mix of billings directly to patients, as compared to billings to third-party payors. The net income for the fourth quarter of 2009 was $966,000, or $0.05 per diluted share, compared to net income of $1.3 million or $0.07 per diluted share, for the same period in 2008.
Adjusted EBITDA for the fourth quarter ended December 31, 2009 was $3.2 million, compared to $3.3 million for the same period in 2008. The decrease in adjusted EBITDA for the fourth quarter of 2009 was primarily the result of an increase in the provision for doubtful accounts and pump maintenance costs, partially offset by higher revenues. The Company defines Adjusted EBITDA as earnings before interest, taxes, depreciation and amortization, and excludes gain (loss) on derivative financial instruments and stock-based compensation, and other non-recurring charges. Adjusted EBITDA is not a measure of performance calculated in accordance with generally accepted accounting principles in the United States ("GAAP"). The Company believes the presentation of Adjusted EBITDA is a relevant and useful measure to assist a reader's ability to understand the Company's operating performance. The Company's management likewise utilizes Adjusted EBITDA as a means to measure its operating performance. Reconciliation from Adjusted EBITDA, a non-GAAP measure, to net income can be found in the appendix.
Financial Results for the Full Year Ended December 31, 2009
Revenue for the full year ended December 31, 2009 was $39.0 million, a 10% improvement compared to $35.4 million for the same period in 2008. Operating income for the full year ended December 31, 2009 was $5.3 million versus operating income of $4.8 million for the same period in 2008. The increase in operating income for the full year ended December 31, 2009 was a result of an increase in revenue, lower freight costs, partially offset by management transition expenses and provision for doubtful accounts.
The net income for the full year ended December 31, 2009 was $774,000, or $0.04 per diluted share, compared to net income of $10.0 million or $0.53 per diluted share, for the same period in 2008. The net income for the full year ended December 31, 2009 included a ($78,000) loss on derivative financial instruments, which was predominantly attributable to the increase in the publicly traded value of the Company's warrants during 2009, compared to a $9.8 million gain on derivative financial instruments in the comparable period in 2008.
Adjusted EBITDA for the full year ended December 31, 2009 was $12.9 million, compared to $12.1 million for the same period in 2008.
Total cash and cash equivalents were $7.8 million at the year end 2009, compared to $11.5 million at the end of 2008. As of December 31, 2009, InfuSystem had $24.1 million of debt outstanding, compared to $30.7 million at year end 2008.
Conference Call
The company will host an investor conference call today at 5:00 p.m. ET to discuss its financial results for the fourth quarter and year end 2009. The investor conference call will be available via live webcast on InfuSystem's website at www.infusystem.com in the Investors section. To participate by telephone, the dial-in number is (888) 677-8769. The access code is 3740095. Investors are advised to dial into the call at least ten minutes prior to the call to register. A replay of the call can be accessed by dialing (888) 203-1112, confirmation number 3740095. An online archive of the conference call will remain on the Company's website for at least 90 days after the call.
About InfuSystem Holdings, Inc.
InfuSystem is the leading supplier of infusion services to oncologists and other outpatient treatment settings. The Company provides pole mounted and ambulatory pumps, supplies and related clinical, biomedical and billing services to practices and patients, nationwide. The Company's unique suite of services appeals to practices, patients and payors by improving access to clinically necessary medical equipment, while driving down costs and maximizing clinical outcomes.
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 from 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 InfuSystem's publicly filed documents.
INFUSYSTEM HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS
December 31, December 31,
(in thousands, except share data) 2009 2008
------------- -------------
ASSETS
Current Assets:
Cash and cash equivalents $ 7,750 $ 11,513
Accounts receivable, less allowance for
doubtful accounts of $1,842 and $1,552 at
December 31, 2009 and December 31, 2008,
respectively; December 31, 2009 and
December 31, 2008 include $0 and $72 due
from Kimberly-Clark (I-Flow), respectively 5,517 4,168
Inventory 925 391
Prepaid expenses and other current assets 395 676
Deferred income taxes 125 -
------------- -------------
Total Current Assets 14,712 16,748
Property & equipment, net 13,499 10,878
Deferred debt issuance costs, net 781 1,276
Goodwill 56,580 56,580
Intangible assets, net 28,911 30,738
Other assets 207 -
------------- -------------
Total Assets $ 114,690 $ 116,220
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 1,306 $ 1,012
Deferred income taxes - 55
Other current liabilities 1,573 939
Derivative liabilities 2,670 2,592
Current portion of long-term debt; December
31, 2009 and December 31, 2008 include
$4,928 and $8,565 payable to Kimberly-Clark
(I-Flow), respectively 5,501 8,644
------------- -------------
Total Current Liabilities 11,050 13,242
Long-term debt, net of current portion;
December 31, 2009 and December 31, 2008
include $16,757 and $21,685 payable to
Kimberly-Clark (I-Flow), respectively 18,640 22,025
Deferred income taxes 3,314 880
Other liabilities 221 -
------------- -------------
Total Liabilities $ 33,225 $ 36,147
============= =============
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 18,734,144 and
18,512,671, respectively; outstanding
18,734,144 and 17,278,626, respectively 2 2
Additional paid-in capital 81,410 80,792
Retained earnings (deficit) 53 (721)
------------- -------------
Total Stockholders' Equity 81,465 80,073
------------- -------------
Total Liabilities and Stockholders' Equity $ 114,690 $ 116,220
============= =============
INFUSYSTEM HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended Year Ended
December 31, December 31,
(in thousands, except ---------------------- ----------------------
per share data) 2009 2008 2009 2008
---------- ---------- ---------- ----------
Net revenues 10,662 9,092 38,964 35,415
Operating expenses:
Cost of Revenues -- Product
and supply costs 1,753 1,240 6,200 5,422
Cost of Revenues -- Pump
depreciation and
disposals 1,121 861 4,127 3,769
Provision for doubtful
accounts 1,272 710 4,006 3,187
Amortization of
intangibles 457 457 1,827 1,827
Selling and marketing 1,509 1,258 5,258 4,659
General and
administrative 3,190 3,028 12,218 11,765
---------- ---------- ---------- ----------
Total Operating Expenses 9,302 7,554 33,636 30,629
---------- ---------- ---------- ----------
Operating income 1,360 1,538 5,328 4,786
Other income (loss):
Gain (loss) on
derivatives 1,122 1,150 (78) 9,815
Interest income - 22 4 36
Interest expense (831) (943) (3,503) (3,771)
---------- ---------- ---------- ----------
Total other income (loss) 291 229 (3,577) 6,080
---------- ---------- ---------- ----------
Income before income taxes 1,651 1,767 1,751 10,866
Income tax expense (685) (508) (977) (907)
---------- ---------- ---------- ----------
Net income 966 1,259 774 9,959
========== ========== ========== ==========
Net income per share:
Basic 0.05 0.07 0.04 0.56
Diluted 0.05 0.07 0.04 0.53
Weighted average shares
outstanding:
Basic 18,697,729 18,476,445 18,609,797 17,940,952
Diluted 18,956,690 18,794,943 18,931,356 18,672,321
INFUSYSTEM HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Months Ended Year Ended
December 31 December 31
(in thousands) 2009 2008 2009 2008
--------- --------- --------- ---------
OPERATING ACTIVITIES
Net Income $ 966 $ 1,259 $ 774 $ 9,959
Adjustments to reconcile net
income to net cash provided
by operating activities:
(Gain) loss on
derivative liabilities (1,122) (1,150) 78 (9,815)
Provision for doubtful
accounts 1,272 710 4,006 3,187
Depreciation 1,151 894 4,122 3,935
Amortization of
intangible assets 457 457 1,827 1,827
Amortization of deferred
debt issuance costs 113 148 495 642
Loss on disposal of
assets 63 168 342 553
Stock-based compensation 224 384 753 1,550
Deferred income taxes 1,467 536 2,254 935
Changes in assets and
liabilities, net of effects
of acquisitions:
Increase in current
accounts receivable,
net of provision (1,198) (1,530) (5,355) (1,835)
Decrease (increase) in
other current assets 379 (276) (253) 560
(Increase) decrease in
other assets (189) (207)
(Decrease) increase in
accounts payable and
other liabilities (931) 27 872 (601)
--------- --------- --------- ---------
NET CASH PROVIDED BY
OPERATING ACTIVITIES 2,652 1,627 9,708 10,897
--------- --------- --------- ---------
INVESTING ACTIVITIES
Capital expenditures (573) (782) (4,612) (1,733)
Proceeds from sale of
property 10 1 10
Payment of deferred
acquisition costs - - (105)
Cash received for
acquisition from
I-Flow, net of cash
acquired - 784 - 784
--------- --------- --------- ---------
NET CASH (USED IN) PROVIDED
BY INVESTING ACTIVITIES (573) 12 (4,611) (1,044)
--------- --------- --------- ---------
FINANCING ACTIVITIES
Principal payments on
term loan (818) (818) (8,565) (2,044)
Common stock repurchased
to satisfy minimum
statutory withholding
on stock-based
compensation (135) (82) (135) (195)
Principal payments on
capital lease
obligation (92) (21) (160) (61)
--------- --------- --------- ---------
NET CASH USED IN FINANCING
ACTIVITIES (1,045) (921) (8,860) (2,300)
--------- --------- --------- ---------
Net change in cash and cash
equivalents 1,034 718 (3,763) 7,553
Cash and cash equivalents,
beginning of period 6,716 10,795 11,513 3,960
--------- --------- --------- ---------
--------- --------- --------- ---------
Cash and cash equivalents,
end of period 7,750 11,513 7,750 11,513
--------- --------- --------- ---------
INFUSYSTEM HOLDINGS, INC.
GAAP RECONCILIATION
Reconciliation from Net Income to Adjusted EBITDA:
Three Months Ended Year Ended
December 31, December 31,
2009 2008 2009 2008
--------- --------- --------- ---------
Net Income $ 966 $ 1,259 $ 774 $ 9,959
Adjustments:
Interest expense 831 943 3,503 3,771
Interest income - (22) (4) (36)
Income tax expense 685 508 977 907
Depreciation -- Pumps 1,058 861 3,785 3,769
Depreciation -- Other 93 33 337 166
Amortization 457 457 1,827 1,827
--------- --------- --------- ---------
EBITDA $ 4,090 $ 4,039 $ 11,199 $ 20,363
--------- --------- --------- ---------
Adjustments:
Loss (gain) on derivatives (1,122) (1,150) 78 (9,815)
Stock-based compensation 224 384 753 1,550
Termination Benefits 877
--------- --------- --------- ---------
Adj. EBITDA $ 3,192 $ 3,273 $ 12,907 $ 12,098
========= ========= ========= =========
CFO
InfuSystem
(248) 291-1210
Investor Contacts:
Asher Dewhurst
Bob East
Westwicke Partners
Email Contact
Tel: (443) 213-0500
Released March 2, 2010
