InfuSystem Holdings Reports Record Results -- $9.9 Million of Revenue and $3.8 Million of Adjusted EBITDA for the Third Quarter of 2009
MADISON HEIGHTS, MI--(Marketwire - November 9, 2009) - InfuSystem Holdings, Inc. (
Revenue for the third quarter ended September 30, 2009 was $9.9 million, an 11% improvement compared to $9.0 million for the same period in 2008. The increase in revenue was a result of winning new customer business.
Mr. Sean McDevitt, Chief Executive Officer, commented, "We are pleased with the third quarter performance. InfuSystem continues to execute on our business strategy as evidenced by accelerating revenue growth and continued strong cash flow. We remain confident in the long-term outlook for the company and industry."
Financial Results for the Third Quarter 2009
Revenue for the third quarter ended September 30, 2009 was $9.9 million, an 11% improvement compared to $9.0 million for the same period in 2008. Operating income for the third quarter of 2009 was $1.4 million versus operating income of $1.6 million for the same period in 2008. The decrease in operating income for the third quarter of 2009 was primarily due to management transition expenses and higher pump repair and maintenance costs.
The net loss for the third quarter of 2009 was ($445,000), or ($0.02) per diluted share, compared to net income of $5.7 million or $0.30 per diluted share, for the same period in 2008. The net loss for the third quarter of 2009 included a ($564,000) loss on derivative financial instruments, which was predominantly attributable to the increase in the publicly traded value of the Company's warrants during the quarter, compared to a $5.4 million gain on derivative financial instruments in the third quarter of 2008.
Adjusted EBITDA for the third quarter ended September 30, 2009 was $3.8 million, compared to $3.6 million for the same period in 2008. 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 Nine Months Ended September 30, 2009
Revenue for the nine months ended September 30, 2009 was $28.3 million, an 8% improvement compared to $26.3 million for the same period in 2008. Operating income for the nine months ended September 30, 2009 was $4.0 million versus operating income of $3.2 million for the same period in 2008. The increase in operating income for the nine months ended September 30, 2009 was a result of an increase in revenue, lower freight cost, partially offset by management transition expenses.
The net loss for the nine months ended September 30, 2009 was ($192,000), or ($0.01) per diluted share, compared to net income of $8.7 million or $0.47 per diluted share, for the same period in 2008. The net loss for the nine months ended September 30, 2009 included a ($1.2 million) loss on derivative financial instruments, which was predominantly attributable to the increase in the publicly traded value of the Company's warrants during the nine month period, compared to an $8.7 million gain on derivative financial instruments in the comparable period in 2008.
Adjusted EBITDA for the nine months ended September 30, 2009 was $9.7 million, a 10% increase compared to $8.8 million for the same period in 2008.
Total cash and cash equivalents were $6.7 million at the end of the third quarter, compared to $11.5 million at the end of 2008. During the nine months ended September 30, 2009, $7.7 million in principal was paid on the term debt due to I-Flow Corporation. At the end of the third quarter, InfuSystem had $23.9 million of total 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 third quarter 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 (866) 550-6338. The access code is 4403363. 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 4403363. 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. We provide pole mounted and ambulatory pumps, supplies and related clinical, biomedical and billing services to practices and patients, nationwide. Our 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.
(Tables follow)
INFUSYSTEM HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS
September 30, December 31,
(in thousands, except share data) 2009 2008
----------- ------------
(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $ 6,716 $ 11,513
Accounts receivable, less allowance for
doubtful accounts of $1,584 and $1,552 at
September 30, 2009 and December 31, 2008,
respectively; September 30, 2009 and
December 31, 2008 include $0 and $72 due from
I-Flow, respectively 5,591 4,168
Inventory 1,241 391
Prepaid expenses and other current assets 459 676
----------- -----------
Total Current Assets 14,007 16,748
Property & equipment, net 13,077 10,878
Deferred debt issuance costs, net 894 1,276
Goodwill 56,580 56,580
Intangible assets, net 29,368 30,738
Other assets 18 -
----------- -----------
Total Assets $ 113,944 $ 116,220
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 1,613 $ 1,012
Deferred income taxes 54 55
Other current liabilities 2,183 939
Derivative liabilities 3,793 2,592
Current portion of long-term debt; September
30, 2009 and December 31, 2008 include $3,270
and $8,565 payable to I-Flow, respectively 3,589 8,644
----------- -----------
Total Current Liabilities 11,232 13,242
Long-term debt, net of current portion;
September 30, 2009 and December 31, 2008
include $19,233 and $21,685 payable to I-Flow,
respectively 20,303 22,025
Deferred income taxes 1,668 880
Other liabilities 331 -
----------- -----------
Total Liabilities $ 33,534 $ 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 18,676,630 and
18,512,671, respectively; outstanding 18,676,630
and 17,278,626, respectively 2 2
Additional paid-in capital 81,321 80,792
Retained deficit (913) (721)
----------- -----------
Total Stockholders' Equity 80,410 80,073
----------- -----------
Total Liabilities and Stockholders' Equity $ 113,944 $ 116,220
=========== ===========
INFUSYSTEM HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended Nine Months Ended
September 30, September 30,
---------------------- ----------------------
(in thousands, except per
share data) 2009 2008 2009 2008
---------- ---------- ---------- ----------
Net revenues 9,902 8,958 28,302 26,323
Operating expenses:
Cost of Revenues --
Product and supply costs 1,793 1,340 4,447 4,182
Cost of Revenues -- Pump
depreciation 993 978 2,727 2,908
Provision for doubtful
accounts 890 702 2,734 2,477
Amortization of
intangibles 456 456 1,370 1,370
Selling and marketing 1,201 1,131 3,749 3,401
General and
administrative 3,206 2,703 9,307 8,737
---------- ---------- ---------- ----------
Total Operating Expenses 8,539 7,310 24,334 23,075
---------- ---------- ---------- ----------
Operating income 1,363 1,648 3,968 3,248
Other (loss) income:
(Loss) gain on
derivatives (564) 5,381 (1,200) 8,665
Interest income - 11 4 14
Interest expense (831) (937) (2,672) (2,828)
---------- ---------- ---------- ----------
Total other (loss)
income (1,395) 4,455 (3,868) 5,851
---------- ---------- ---------- ----------
(Loss) income before income
taxes (32) 6,103 100 9,099
Income tax expense (413) (399) (292) (399)
---------- ---------- ---------- ----------
Net (loss) income (445) 5,704 (192) 8,700
---------- ---------- ========== ==========
Net (loss) income per share:
Basic (0.02) 0.31 (0.01) 0.49
Diluted (0.02) 0.30 (0.01) 0.47
Weighted average shares
outstanding:
Basic 18,645,911 18,442,957 18,581,917 17,757,075
Diluted 18,645,911 18,794,182 18,581,917 18,581,789
INFUSYSTEM HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Nine Months Ended
September 30
------------------
(in thousands) 2009 2008
-------- --------
OPERATING ACTIVITIES
Net (loss) income (192) 8,700
Adjustments to reconcile net income to net
cash provided by operating activities:
Loss (gain) on derivative liabilities 1,200 (8,665)
Provision for doubtful accounts 2,734 2,477
Depreciation 2,971 3,041
Amortization of intangible assets 1,370 1,370
Amortization of deferred debt issuance costs 382 494
Loss on disposal of assets 279 385
Stock-based compensation 529 1,166
Deferred income taxes 787 399
Changes in current assets and liabilities:
Increase in accounts receivable, net of provision (4,157) (305)
(Increase) decrease in other current assets (632) 836
Increase (decrease) in accounts payable and other
current liabilities 1,803 (628)
-------- --------
NET CASH PROVIDED BY OPERATING ACTIVITIES 7,074 9,270
-------- --------
INVESTING ACTIVITIES
Capital expenditures (4,039) (951)
Proceeds from sale of property 1 -
Other assets (18) -
Payment of deferred acquisition costs - (105)
-------- --------
NET CASH USED IN INVESTING ACTIVITIES (4,056) (1,056)
-------- --------
FINANCING ACTIVITIES
Principal payments on term loan (7,747) (1,226)
Principal payments on capital lease
obligation (68) (40)
Common stock repurchased to satisfy minimum
statutory withholding on stock-based compensation - (113)
-------- --------
NET CASH USED IN FINANCING ACTIVITIES (7,815) (1,379)
-------- --------
Net change in cash and cash equivalents (4,797) 6,835
Cash and cash equivalents, beginning of period 11,513 3,960
-------- --------
Cash and cash equivalents, end of period 6,716 10,795
======== ========
INFUSYSTEM HOLDINGS, INC.
GAAP RECONCILIATION
(UNAUDITED)
Reconciliation from Net Income to Adjusted EBITDA:
Three Months Ended Nine Months Ended
Sept 30, Sept 30,
------------------ ------------------
2009 2008 2009 2008
-------- -------- -------- --------
Net Income $ (445) $ 5,704 $ (192) $ 8,700
Adjustments:
Interest expense 831 937 2,672 2,828
Interest income - (11) (4) (14)
Income tax expense 413 399 292 399
Depreciation -- Pumps 993 978 2,727 2,908
Depreciation -- Other 92 47 244 133
Amortization 456 456 1,370 1,370
-------- -------- -------- --------
EBITDA $ 2,340 $ 8,510 $ 7,109 $ 16,324
-------- -------- -------- --------
Adjustments:
Loss (gain) on derivatives 564 (5,381) 1,200 (8,665)
Stock based compensation (16) 479 529 1,166
Termination Benefits 877 - 877 -
-------- -------- -------- --------
Adj. EBITDA $ 3,765 $ 3,608 $ 9,715 $ 8,825
======== ======== ======== ========
Sean Whelan
CFO
InfuSystem
(248) 291-1210
Investor Contacts:
Asher Dewhurst
Bob East
Westwicke Partners
Email Contact
Tel: (443) 213-0500
Released November 9, 2009
