Exhibit 99.1

 

LOGO   

InfuSystem Holdings, Inc.

2450 South Shore Blvd., Suite 402

League City, Texas 77573

248-291-1210

INVESTOR CONTACT:

Pat LaVecchia

Vice Chairman

Info@InfuSystem.com

800-962-9656

FOR IMMEDIATE RELEASE

Thursday, March 15, 2012

InfuSystem Holdings, Inc. Reports Fourth Quarter and Fiscal Year 2011 Earnings

 

   

Seventeenth consecutive quarter of year over year revenue growth

 

   

Revenues for quarter and year increased 7% and 16%, respectively

 

   

Adjusted EBITDA for year increased 5%

 

   

Fourth consecutive year of revenue and Adjusted EBITDA increases

League City, TX, March 15, 2012—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, 2011.

Revenues for the fiscal year 2011 were $54.6 million compared with $47.2 million for the prior year, up 16 percent. Adjusted EBITDA for 2011 was $14.6 million, versus $14.0 million in 2010. Net revenues for the fourth quarter of fiscal 2011 were $14.0 million compared with $13.1 million for the prior year, up 7 percent. Adjusted EBITDA for the fourth quarter 2011 was $3.6 million, versus $3.7 million in 2010. On a GAAP basis, the Company reported a net loss of $45.4 million for 2011, compared to a net loss of $1.9 million for 2010, and a net loss of $0.8 million for the fourth quarter 2011, compared to a loss of $2.2 million for the 2010 fourth quarter.

Fiscal 2011: Continued Growth in Revenues and Adjusted EBITDA

“Our fourth quarter and fiscal year performance reflect improving bottom-line results and the 17th straight quarter of year over year revenue growth for the Company,” said Sean McDevitt, chairman and chief executive officer of InfuSystem “During the quarter, we continued to increase revenue, generated substantial free cash flow and improved the Company’s overall financial profile, positioning InfuSystem to deliver improved results in 2012. With the continued steady growth of our core business, we are more confident than ever in the long-term outlook for the Company and industry.”

“As we continue to execute on our business plan, InfuSystem’s Board of Directors also continues to thoroughly explore and evaluate potential strategic alternatives for the Company, which may include a sale or other transaction. The Company will continue to operate in the ordinary course during its review of strategic alternatives,” concluded Mr. McDevitt.


InfuSystem Holdings, Inc. Announces Fourth Quarter, Fiscal 2011 Results

 

Revenues for fiscal 2011 were $54.6 million, up 16 percent from $47.2 million in 2010. The increase in revenues is primarily due to obtaining business at new customer facilities, increases from existing customers and expansion into new product lines, such as those associated with acquisitions made during the previous year.

Gross profit for fiscal 2011 was $35.4 million, up 5 percent from $33.5 million in the prior year. This total represents 65 percent of revenues for the year, compared with 71 percent in fiscal 2010.

Selling, general and administrative expenses (SG&A) were $101.7 million versus $34.5 million in the prior year. Excluding a non-cash impairment charge of $67.6 million, SG&A for fiscal 2011 was $34.1 million compared to $34.5 million in the prior year and 62% of revenues compared to 73% in the prior year.

Other loss for 2011 was $2.2 million compared to $2.3 million for 2010, reflecting reduced interest expense, lower gains on derivatives and no gain on extinguishment of long term debt. As a result, the Company reported a fiscal 2011 net loss of $45.4 million, or a loss of $2.16 per diluted share, versus a $1.9 million net loss, or a loss of $0.09 per diluted share, for 2010.

Adjusted EBITDA for 2011 was $14.6 million, up 5 percent from $14.0 million in 2010. 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.

Fourth Quarter

Revenues for the latest quarter were $14.0 million, up 7 percent from $13.1 million in the prior year period. Gross profit was $8.1 million versus $9.0 million in the fiscal 2010 fourth quarter. SG&A decreased 27 percent to $8.8 million from $12.0 million. Other expense for the fourth quarter was $0.5 million, compared with $0.4 million in the prior year period. The Company reported a net loss for the fourth quarter of $0.8 million, or a loss of $0.04 per diluted share, versus the prior year quarter’s net loss of $2.2 million, or a loss of $0.11 per diluted share. Adjusted EBITDA for the fourth quarter was $3.6 million versus $3.7 million for the prior year period.

Financial Condition

Net cash provided by operations for fiscal 2011 was $7.2 million versus $10.8 million for 2010. The company spent $4.2 million on capital expenditures, primarily for new pumps, in the current year versus $2.4 million in fiscal 2010 and paid $16.6 million in cash for the acquisition of First Biomedical in June 2010. The Company ended the year with a cash balance of $0.8 million, with $22.6 million in long-term debt, net of current, versus $26.6 million in long-term debt in the prior year.

Auditor’s Opinion

An activist stockholder group consisting of Kleinheinz Capital Partners, Meson Capital Partners, Boston Avenue Capital and certain of their affiliates (the “Kleinheinz Dissident Group”) is seeking to gain control of the Board of Directors of the Company. If the Kleinheinz Dissident Group were to be successful in obtaining control of the Company’s Board of Directors, the resulting change in control would constitute an event of default under the Company’s Credit


InfuSystem Holdings, Inc. Announces Fourth Quarter, Fiscal 2011 Results

 

Facility with Bank of America, N.A., and KeyBank National Association. This would allow the lenders to accelerate the maturity of all debt outstanding under that agreement. Given there is some level of risk that there could be changes to the existing Board of Directors, the Company’s auditors, Deloitte & Touche, LLP, are required under auditing standards to include an explanatory paragraph related to a going concern in the audit opinion on the Company’s 2011 results for this sole reason. The Company obtained a waiver as of December 31, 2011 for the going concern audit opinion as this is also an event of default under the terms of the credit facility with the lenders. The Company is in compliance with all other bank covenants and has a strong financial condition and cash flow.

Conference Call

InfuSystem Holdings, Inc. will host a conference call to share the results of its fourth quarter and full-year fiscal 2011 results on Thursday, March 15, 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 31586969. 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, passcode 31586969#. 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 League City, Texas, 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 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 the company’s publicly filed documents.

Additional information about InfuSystem Holdings, Inc. is available at www.infusystem.com.

FINANCIAL TABLES FOLLOW


InfuSystem Holdings, Inc. Announces Fourth Quarter, Fiscal 2011 Results

 

INFUSYSTEM HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

 

(in thousands, except share data)

   December 31,
2011
    December 31,
2010
 

ASSETS

    

Current Assets:

    

Cash and cash equivalents

   $ 799      $ 5,014   

Accounts receivable, less allowance for doubtful accounts of $1,773 and $1,796 at December 31, 2011 and December 31, 2010, respectively

     7,350        6,679   

Accounts receivable—related party

     98     

Inventory

     3,217        1,699   

Prepaid expenses and other current assets

     934        750   

Deferred income taxes

     682        1,147   
  

 

 

   

 

 

 

Total Current Assets

     13,080        15,289   

Property & equipment, net

     15,764        16,672   

Deferred debt issuance costs, net

     421        658   

Goodwill

     —          64,092   

Intangible assets, net

     28,221        33,252   

Deferred income taxes

     18,187        —     

Other assets

     590        401   
  

 

 

   

 

 

 

Total Assets

   $ 76,263      $ 130,364   
  

 

 

   

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

    

Current Liabilities:

    

Accounts payable

   $ 4,004      $ 2,016   

Accounts payable—related party

     59        —     

Other current liabilities

     2,235        4,631   

Derivative liabilities

     258        183   

Current portion of long-term debt

     6,576        5,551   
  

 

 

   

 

 

 

Total Current Liabilities

     13,132        12,381   

Long-term debt, net of current portion

     22,551        26,646   

Deferred income taxes

     —          5,788   

Other liabilities

     415        406   
  

 

 

   

 

 

 

Total Liabilities

   $ 36,098      $ 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 21,330,235 and 21,163,337, respectively; outstanding 21,132,545 and 21,117,516, respectively

     2        2   

Additional paid-in capital

     87,541        87,004   

Accumulated other comprehensive loss

     (136     (64

Retained deficit

     (47,242     (1,799
  

 

 

   

 

 

 

Total Stockholders’ Equity

   $ 40,165      $ 85,143   
  

 

 

   

 

 

 

Total Liabilities and Stockholders’ Equity

   $ 76,263      $ 130,364   
  

 

 

   

 

 

 


InfuSystem Holdings, Inc. Announces Fourth Quarter, Fiscal 2011 Results

 

INFUSYSTEM HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

 

     Three Months Ended
December 31 (unaudited)
    Twelve Months Ended
December 31
 

(in thousands, except share data)

   2011     2010     2011     2010  

Net revenues

        

Rentals

   $ 11,933      $ 11,426      $ 46,795      $ 43,384   

Product sales

     2,109        1,649        7,842        3,845   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

     14,042        13,075        54,637        47,229   

Cost of revenues:

        

Cost of revenues — Product, service and supply costs

     2,465        2,206        9,128        7,730   

Cost of revenues — Pump depreciation, sales and disposals

     3,495        1,860        10,154        5,954   
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     8,082        9,009        35,355        33,545   
  

 

 

   

 

 

   

 

 

   

 

 

 

Selling, general and administrative expenses:

        

Provision for doubtful accounts

     1,066        1,061        4,099        4,515   

Amortization of intangibles

     671        644        2,662        2,259   

Asset impairment charges

     —          —          67,592        —     

Selling and marketing

     2,283        2,348        9,371        7,087   

General and administrative

     4,759        7,960        17,987        20,622   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total sales, general and administrative

     8,779        12,013        101,711        34,483   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating (loss) income

     (697     (3,004     (66,356     (938

Other loss:

        

Gain (loss) on derivatives

     —          417        83        207   

Interest expense

     (547     (571     (2,193     (3,352

Gain on extinguishment of long term debt

     —          —          —          1,118   

Other income (expense)

     8        (258     (111     (258
  

 

 

   

 

 

   

 

 

   

 

 

 

Total other loss

     (539     (412     (2,221     (2,285
  

 

 

   

 

 

   

 

 

   

 

 

 

(Loss) before income taxes

     (1,236     (3,416     (68,577     (3,223

Income tax benefit (expense)

     473        1,258        23,134        1,371   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net (loss) income

   $ (763   $ (2,158   $ (45,443   $ (1,852
  

 

 

   

 

 

   

 

 

   

 

 

 

Net (loss) income per share:

        

Basic

   $ (0.04   $ (0.11   $ (2.16   $ (0.09

Diluted

   $ (0.04   $ (0.11   $ (2.16   $ (0.09

Weighted average shares outstanding:

        

Basic

     21,056,634        20,261,591        21,074,093        19,721,378   

Diluted

     21,056,634        20,261,591        21,074,093        19,721,378   


InfuSystem Holdings, Inc. Announces Fourth Quarter, Fiscal 2011 Results

 

INFUSYSTEM HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

 

     Twelve Months Ended  
     December 31  

(in thousands)

   2011     2010  

OPERATING ACTIVITIES

    

Net (loss) income

   $ (45,443   $ (1,852

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

    

(Gain) loss on derivative liabilities

     (83     (207

Gain on extinguishment of long-term debt

     —          (1,118

Provision for doubtful accounts

     4,099        4,515   

Depreciation

     6,386        5,357   

Net book value of pumps sold from fixed assets

     4,227        994   

Amortization of intangible assets

     2,662        2,259   

Asset impairment charges

     67,592        —     

Amortization of deferred debt issuance costs

     238        980   

Stock-based compensation

     1,185        3,860   

Deferred income taxes

     (23,423     (1,236

Changes in Assets—(Increase)/Decrease, exclusive of effects of acquisitions:

    

Accounts receivable, net of provision

     (4,868     (3,948

Other current assets

     (1,702     (506

Other assets

     273        (173

Changes in Liabilities—Increase/(Decrease), exclusive of effects of acquisitions:

    

Accounts payable and other liabilities

     (3,971     2,252   

Derivative liabilities from termination of interest rate swap

     —          (365
  

 

 

   

 

 

 

NET CASH PROVIDED BY OPERATING ACTIVITIES

     7,172        10,812   
  

 

 

   

 

 

 

INVESTING ACTIVITIES

    

Capital expenditures

     (4,155     (2,444

Acquisition of intangible assets

     (1,398     —     

Cash paid for acquisition, net of cash acquired

     —          (16,616
  

 

 

   

 

 

 

NET CASH (USED IN) INVESTING ACTIVITIES

     (5,553     (19,060
  

 

 

   

 

 

 

FINANCING ACTIVITIES

    

Principal payments on term loan

     (4,518     (22,623

Principal payments on capital lease obligations

     (1,435     (822

Cash proceeds from loans

     584        30,000   

Proceeds from draw on revolving credit facility

     1,750        —     

Payments on revolving credit facility

     (1,750     —     

Capitalized debt issuance costs

     —          (808

Common stock repurchased to satisfy statutory withholding on stock based compensation

     (102     (167

Treasury shares repurchased

     (363     (68
  

 

 

   

 

 

 

NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES

     (5,834     5,512   
  

 

 

   

 

 

 

Net change in cash and cash equivalents

     (4,215     (2,736

Cash and cash equivalents, beginning of period

     5,014        7,750   
  

 

 

   

 

 

 

Cash and cash equivalents, end of period

   $ 799      $ 5,014   
  

 

 

   

 

 

 


InfuSystem Holdings, Inc. Announces Fourth Quarter, Fiscal 2011 Results

 

INFUSYSTEM HOLDINGS, INC. AND SUBSIDIARIES

GAAP RECONCILIATION

 

     Three Months Ended
December 31 (unaudited)
    Twelve Months Ended
December 31
 

(in thousands, except share data)

   2011     2010     2011     2010  

Net (loss) income

   $ (763   $ (2,158   $ (45,443   $ (1,852

Adjustments:

        

Interest expense

     547        571        2,193        3,352   

Income tax (benefit) expense

     (473     (1,258     (23,134     (1,371

Depreciation

     1,496        1,488        6,386        5,357   

Amortization

     670        644        2,662        2,259   
  

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA

     1,477        (713     (57,336     7,745   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjustments:

        

Asset impairment charges

     —          —          67,592        —     

Pump agreement

     1,430        —          1,430        —     

(Gain) loss on derivatives

     —          (417     (83     (207

Stock based compensation

     264        4,098        1,185        5,909   

Nonrecurring consulting costs

     317        —          317        —     

Sales incentive and other expense

     —          258        699        258   

Acquisition and due diligence costs

     123        —          766        965   

Severance

     —          450        65        450   

(Gain) loss on debt extinguishment

     —          —          —          (1,118
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

   $ 3,611      $ 3,676      $ 14,635      $ 14,002