Exhibit 99.1

LOGO

     InfuSystem Holdings, Inc.
     31700 Research Park Drive
INVESTOR CONTACT:      Madison Heights, MI 48071
Pat LaVecchia      248-291-1210
Vice Chairman     
Info@InfuSystem.com     
800-962-9656     

FOR IMMEDIATE RELEASE

Thursday, March 10, 2011

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

 

   

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, MICHIGAN, March 10, 2011—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 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
December 31,
    Year Ended
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