Exhibit 99.1

 

LOGO   

InfuSystem Holdings, Inc.

31700 Research Park Drive

Madison Heights, MI 48071

248-291-1210

  
  
  

INVESTOR CONTACT:

Pat LaVecchia

Vice Chairman

Info@InfuSystem.com

800-962-9656

FOR IMMEDIATE RELEASE

Thursday, May 12, 2011

InfuSystem Holdings, Inc. Reports $13.0 Million of Revenues and $3.3 Million of Adjusted

EBITDA for the First Quarter of 2011

 

   

Revenues for the quarter increased 19%

 

   

Adjusted EBITDA for the quarter increased to $3.3 million

 

   

Cash from operations increased 47% from prior year

 

   

Fourteenth straight quarter of year over year growth

MADISON HEIGHTS, MICHIGAN, May 12, 2011—InfuSystem Holdings, Inc. (NYSE Amex: INFU), the leading provider of infusion pumps and related services, today reported results for the first quarter ended March 31, 2011.

Revenues for the first quarter of fiscal 2011 were $13.0 million compared with $10.9 million for the prior year, up 19 percent. Adjusted EBITDA for the first quarter of fiscal 2011 was $3.3 million, versus $3.2 million a year ago.

Mr. Sean McDevitt, Chief Executive Officer and Chairman, commented, “I am extremely pleased with the first quarter 2011 results. It is clear that the strategic decisions we have made are producing tangible benefits. The increased focus on operational improvements and execution are generating positive results today and position us well for the future. Looking forward, we continue to evaluate additional growth opportunities that would leverage our penetration in the oncology and the infusion markets , our expertise in billing, as well as our strong reputation for customer service.”

Revenues for the first quarter ending March 31, 2011 were $13.0 million, up 19 percent from $10.9 million in the prior year period. The increase in revenues is related to obtaining business at new customer facilities and expansion into new product lines associated with our acquisitions.


Gross profit for the three months ending March 31, 2011 was $9.1 million, up 11 percent from $8.1 million in the prior year period. It represented 70 percent of revenues for the latest year, compared with 74 percent in the prior year period. The decrease in the gross margin percentage was primarily related to higher pump depreciation and disposal costs with a higher mix of pump sales and services, as compared to third party billings.

Selling, general and administrative expenses (SG&A) for the first quarter of fiscal 2011 were $8.8 million, 33 percent higher than the prior period’s $6.6 million. As a percent of revenues, SG&A was 68 percent compared to 61 percent for the prior period. The increases were primarily related to an increase in stock based compensation, increased investment in sales and marketing, and expenses associated with the acquired businesses.

Adjusted EBITDA was $3.3 million for the first quarter of 2011 versus $3.2 million in the prior period. 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 first quarter of 2011 was $0.5 million versus $1.2 million other loss in the prior period, reflecting reduced interest expense and no loss on derivatives. As a result, the first quarter net loss was $171 thousand, equal to $0.01 loss per diluted share, versus a $12 thousand net loss, equal to $0.00 income per diluted share in the prior period.

Financial Condition

Net cash provided by operations for the first quarter ending March 31, 2011 was $2.1 million, up 40 percent from $1.5 million for the prior period. The latest quarter’s results reflected higher levels of stock based compensation, depreciation and amortization of intangibles. The company had capital expenditures of $2.4 million, an increase of $1.9 million compared to the prior period. The cash balance decreased by $1.8 million from the previous period and the company ended the quarter with a cash balance of $3.2 million with $25.6 million in long-term debt, net of current.

Conference Call

InfuSystem Holdings, Inc. will host a conference call to share the results of its first quarter fiscal 2011 results on Thursday, May 12, 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 800-447-0521 with confirmation number 29553628. 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 29553628#. 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

(UNAUDITED)

 

(in thousands, except share data)

   March 31,
2011
    December 31,
2010
 
     (Unaudited)        

ASSETS

    

Current Assets:

    

Cash and cash equivalents

   $ 3,176      $ 5,014   

Accounts receivable, less allowance for doubtful accounts of $1,912 and $1,796 at March 31, 2011 and December 31, 2010, respectively

     7,056        6,679   

Inventory

     1,555        1,699   

Prepaid expenses and other current assets

     699        750   

Deferred income taxes

     1,127        1,147   
                

Total Current Assets

     13,613        15,289   

Property & equipment, net

     16,663        16,672   

Deferred debt issuance costs, net

     596        658   

Goodwill

     64,092        64,092   

Intangible assets, net

     33,416        33,252   

Other assets

     552        401   
                

Total Assets

   $ 128,932      $ 130,364   
                

LIABILITIES AND STOCKHOLDERS’ EQUITY

    

Current Liabilities:

    

Accounts payable

   $ 1,808      $ 2,016   

Other current liabilities

     4,449        4,631   

Derivative liabilities

     116        183   

Current portion of long-term debt

     5,900        5,551   
                

Total Current Liabilities

     12,273        12,381   

Long-term debt, net of current portion

     25,628        26,646   

Deferred income taxes

     5,642        5,788   

Other liabilities

     407        406   
                

Total Liabilities

   $ 43,950      $ 45,221   
                

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 21,179,712 and 21,163,337, respectively; outstanding 21,055,953 and 21,117,516, respectively

     2        2   

Additional paid-in capital

     86,967        87,004   

Accumulated other comprehensive loss

     (17     (64

Retained (deficit) earnings

     (1,970     (1,799
                

Total Stockholders’ Equity

     84,982        85,143   
                

Total Liabilities and Stockholders’ Equity

   $ 128,932      $ 130,364   
                


INFUSYSTEM HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

 

     Three Months Ended
March 31
 

(in thousands, except share data)

   2011     2010  

Net revenues

   $ 12,957      $ 10,934   

Cost of revenues:

    

Cost of revenues — Product, service and supply costs

     2,143        1,675   

Cost of revenues — Pump depreciation, sales and disposals

     1,761        1,139   
                

Gross profit

     9,053        8,120   
                

Sales, general and administrative expenses:

    

Provision for doubtful accounts

     1,222        1,393   

Amortization of intangibles

     645        487   

Selling and marketing

     2,442        1,442   

General and administrative

     4,517        3,306   
                

Total sales, general and administrative expenses

     8,826        6,628   
                

Operating income

     227        1,492   

Other loss:

    

Loss on derivatives

     —          (389

Interest expense

     (541     (805

Other expense

     (3     —     
                

Total other loss

     (544     (1,194
                

(Loss) income before income taxes

     (317     298   

Income tax benefit (expense)

     146        (310
                

Net loss

   $ (171   $ (12
                

Net loss per share:

    

Basic and diluted

   $ (0.01   $ (0.00

Weighted average shares outstanding:

    

Basic and diluted

     21,102,312        19,903,611   


INFUSYSTEM HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

 

     Three Months Ended
March 31
 

(in thousands)

   2011     2010  

OPERATING ACTIVITIES

    

Net (loss)

   $ (171   $ (12

Adjustments to reconcile net (loss) to net cash provided by operating activities:

    

Loss on derivative liabilities

     —          389   

Provision for doubtful accounts

     1,222        1,393   

Depreciation

     1,558        1,141   

Loss on disposal of pumps

     271        65   

Amortization of intangible assets

     645        487   

Amortization of deferred debt issuance costs

     62        107   

Stock-based compensation

     248        100   

Deferred income taxes

     (146     —     

Changes in assets and liabilities, exclusive of effects of acquisitions:

    

(Increase) in accounts receivable, net of provision

     (1,599     (2,392

Decrease in other current assets

     195        60   

(Increase) in other assets

     (11     (7

(Decrease) increase in accounts payable and other liabilities

     (152     132   
                

NET CASH PROVIDED BY OPERATING ACTIVITIES

     2,122        1,463   
                

INVESTING ACTIVITIES

    

Capital expenditures

     (2,438     (537
                

NET CASH USED IN INVESTING ACTIVITIES

     (2,438     (537
                

FINANCING ACTIVITIES

    

Principal payments on term loan

     (1,030     (818

Treasury shares repurchased

     (229  

Principal payments on capital lease obligations

     (263     (140
                

NET CASH USED IN FINANCING ACTIVITIES

     (1,522     (958
                

Net change in cash and cash equivalents

     (1,838     (32

Cash and cash equivalents, beginning of period

     5,014        7,750   
                

Cash and cash equivalents, end of period

   $ 3,176      $ 7,718   
                


INFUSYSTEM HOLDINGS, INC. AND SUBSIDIARIES

GAAP RECONCILIATION

(UNAUDITED)

 

     Three Months Ended
March 31
 

(in thousands, except share data)

   2011     2010  

Net loss

   $ (171   $ (12

Adjustments:

    

Interest expense

     541        805   

Income tax (benefit) expense

     (146     310   

Depreciation

     1,558        1,141   

Amortization

     645        487   
                

EBITDA

     2,427        2,731   
                

Adjustments:

    

Loss on derivatives

     —          389   

Stock based compensation

     248        100   

Sales incentives and related expense

     391        —     

Acquisition related expenses

     185        —     
                

Adj. EBITDA

   $ 3,251      $ 3,220