Exhibit 99.1

 

LOGO   

InfuSystem Holdings, Inc.

31700 Research Park Drive

Madison Heights, MI 48071

248-291-1210

INVESTOR CONTACT:

Jonathan P. Foster

Chief Financial Officer

Info@InfuSystem.com

800-962-9656

FOR IMMEDIATE RELEASE

Monday, May 21, 2012

InfuSystem Holdings, Inc. Reports $14.3 Million of Revenues and $1.6 Million of EBITDA for the First Quarter of 2012

MADISON HEIGHTS, MICHIGAN, May 21, 2012—InfuSystem Holdings, Inc. (NYSE MKT: INFU) (“InfuSystem” or the “Company”), the leading national provider of infusion pumps and related services for the healthcare industry in the United States, today reported results for the first quarter ended March 31, 2012.

Revenues for the quarter ending March 31, 2012 were $14.3 million, up 11% from $13.0 million in the first quarter of 2011. Gross profit for the three months ending March 31, 2012 was $10.4 million, up 15% from $9.1 million in first quarter of last year. First quarter net loss was $0.9 million, equal to $0.04 loss per diluted share, compared to $0.2 million net loss, equal to $0.01 income per diluted share in the prior period.

Ryan Morris, the newly appointed Executive Chairman, said the first quarter results provide a solid foundation for the new management team that took office in late April, and whose strategy for achieving growth and increasing shareholder value should begin to be reflected in subsequent quarterly results. Since mid-March, the Company has welcomed the arrival of Interim Chief Executive Officer Dilip Singh, Chief Financial Officer Jonathan P. Foster, as well as five new Board members.

“It’s been a very eventful quarter for the Company and I am proud that our employees and operational management continued the top line revenue growth while these Board and management changes took place,” Morris said.

The new management team has already begun building on those efforts, starting first with a series of operational improvements, integration of past acquisitions to generate new synergies for the Company and cost-savings initiatives – some of which will be announced soon and some of which are already underway.

Interim Chief Executive Officer Dilip Singh said these operational improvements are just the first steps the Company will implement as part of a broader strategy to achieve long-term growth. “Our initial focus is to maximize cash generation with EBITDA for sustained financial stability while achieving growth by continuing to take market share in our core markets. Over the long-term, we


InfuSystem Holdings, Inc. Announces First Quarter, Fiscal 2012 Results

 

see significant, recurring opportunity for organic growth, notably by enhancing customer service solutions that make it easier for our various partners, channels and customers to rent, lease or buy new and reconditioned pumps with just in time inventory; entering other vertical medical markets disciplines; and, in time, expanding our franchise model globally.”

Operating Results

The 11% increase in revenues relative to the first quarter of 2011 is primarily related to the addition of new customers with larger patient bases, increased penetration into our existing customer accounts and the resolution of the oncology drug shortage affecting certain products.

The $10.4 million in gross profit recorded in the first quarter of 2012 represented 73% of revenues for the current period compared with 70% percent in the prior year’s period. The increase in the gross margin percentage was primarily related to lower pump depreciation and a higher mix of third party billings as compared to pump sales, rentals and services.

Selling, general and administrative expenses (SG&A) for the first quarter of fiscal 2012 were $10.9 million, 24 percent higher than the prior period’s $8.8 million. As a percent of revenues, SG&A was 76 percent compared to 62 percent for the prior fiscal year (excluding non-cash impairment charges). The major factors contributing to the increase of $2.1 million in SG&A were expenses of $1.5 million related primarily to legal fees and other costs associated with activities related to negotiating and entering into a settlement agreement with a concerned stockholder group and a fifth amendment to the Company’s credit facility. The settlement agreement and fifth amendment to the credit facility are described in the 8-K the Company filed on April 26th. Additional related fees and expenses are expected in the second quarter of 2012.

EBITDA for the first quarter of fiscal 2012 was $1.6 million compared to $2.4 million a year ago. Excluding the one-time fees associated with the activities described above, EBITDA would have been $3.1 million. A Non-GAAP reconciliation from net income can be found in the appendix.

Financial Condition

Net cash provided by operations for the first quarter ending March 31, 2012 was $0.1 million compared to $2.1 million in the prior period. The latest quarter’s results reflected increased professional fees associated with the concerned stockholder group and employee compensation costs. In addition, the Company reported capital expenditures of $1.2 million, a decrease of $1.2 million compared to the prior period. The cash balance decreased by $3.2 million from the comparable period in the prior year due to issues noted herein and the Company ended the quarter with no cash on the balance sheet due to outstanding payments. The Company had $2.5 million drawn as of March 31, 2012, on its $5.0 million revolving credit facility. During the quarter, the Company continued to make the required payments on its $21.0 million in long-term debt.

Conference Call

The Company will host a conference call to share the results of its first quarter fiscal 2012 results on Tuesday, May 22, at 9:00 a.m. Eastern Time. Dilip Singh, Interim Chief Executive Officer, and Jonathan P. Foster, 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


InfuSystem Holdings, Inc. Announces First Quarter, Fiscal 2012 Results

 

telephone, the dial-in number is (888)-895-5271 with confirmation number 32474314. Those who wish to listen should either dial in or go to the web site several minutes prior to the call to register. 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 MKT 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 First Quarter, Fiscal 2012 Results

 

INFUSYSTEM HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

 

(in thousands, except share data)

   March 31,
2012
    December 31,
2011
 

ASSETS

    

Current Assets:

    

Cash and cash equivalents

   $ —        $ 799   

Accounts receivable, less allowance for doubtful accounts of $2,021 and $1,773 at March 31, 2012 and December 31, 2011, respectively

     8,320        7,350   

Accounts receivable - related party

     3        98   

Inventory

     3,918        3,217   

Prepaid expenses and other current assets

     874        934   

Deferred income taxes

     681        682   
  

 

 

   

 

 

 

Total Current Assets

     13,796        13,080   

Property & equipment, net

     14,864        15,764   

Deferred debt issuance costs, net

     367        421   

Intangible assets, net

     27,597        28,221   

Deferred income taxes

     18,497        18,187   

Other assets

     509        590   
  

 

 

   

 

 

 

Total Assets

   $ 75,630      $ 76,263   
  

 

 

   

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

    

Current Liabilities:

    

Accounts payable

   $ 3,180      $ 4,004   

Accounts payable - related party

     —          59   

Other current liabilities

     2,376        2,235   

Derivative liabilities

     256        258   

Current portion of long-term debt

     6,303        6,576   
  

 

 

   

 

 

 

Total Current Liabilities

     12,115        13,132   

Revolving credit facility

     2,500        —     

Long-term debt, net of current portion

     21,008        22,551   

Other liabilities

     470        415   
  

 

 

   

 

 

 

Total Liabilities

   $ 36,093      $ 36,098   
  

 

 

   

 

 

 

Stockholders’ Equity:

    

Common stock, $.0001 par value; authorized 200,000,000 shares; issued 21,330,235 and 21,330,235, respectively; outstanding 21,132,545 and 21,132,545, respectively

     2        2   

Additional paid-in capital

     87,827        87,541   

Accumulated other comprehensive loss

     (135     (136

Retained deficit

     (48,157     (47,242
  

 

 

   

 

 

 

Total Stockholders’ Equity

   $ 39,537      $ 40,165   
  

 

 

   

 

 

 

Total Liabilities and Stockholders’ Equity

   $ 75,630      $ 76,263   
  

 

 

   

 

 

 


InfuSystem Holdings, Inc. Announces First Quarter, Fiscal 2012 Results

 

INFUSYSTEM HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

 

     Three Months Ended
March 31 (unaudited)
 

(in thousands, except share data)

   2012     2011  

Net revenues

    

Rentals

   $ 12,905      $ 11,589   

Product sales

     1,443        1,368   
  

 

 

   

 

 

 

Total revenues

     14,348        12,957   

Cost of revenues:

    

Cost of revenues — Product, service and supply costs

     2,235        2,143   

Cost of revenues — Pump depreciation, sales and disposals

     1,677        1,761   
  

 

 

   

 

 

 

Gross profit

     10,436        9,053   
  

 

 

   

 

 

 

Selling, general and administrative expenses:

    

Provision for doubtful accounts

     1,247        1,222   

Amortization of intangibles

     684        645   

Asset impairment charges

     —          —     

Selling and marketing

     2,745        2,442   

General and administrative

     6,273        4,517   
  

 

 

   

 

 

 

Total sales, general and administrative

     10,949        8,826   
  

 

 

   

 

 

 

Operating (loss) income

     (513     227   

Other income (expense):

    

Interest expense

     (601     (541

Other income (expense)

     2        (3
  

 

 

   

 

 

 

Total other loss

     (599     (544
  

 

 

   

 

 

 

Loss before income taxes

     (1,112     (317

Income tax benefit

     197        146   
  

 

 

   

 

 

 

Net loss

   $ (915   $ (171
  

 

 

   

 

 

 

Net loss per share:

    

Basic and diluted

   $ (0.04   $ (0.01

Weighted average shares outstanding:

    

Basic and diluted

     21,132,545        21,012,312   

Comprehensive Loss

    

Net loss

   $ (915   $ (171

Unrealized gain on interest rate swap, net of taxes

     1        47   
  

 

 

   

 

 

 

Comprehensive Loss

   $ (914   $ (124
  

 

 

   

 

 

 


InfuSystem Holdings, Inc. Announces First Quarter, Fiscal 2012 Results

 

INFUSYSTEM HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

 

     Three Months Ended
March 31
 

(in thousands)

   2012     2011  

OPERATING ACTIVITIES

    

Net loss

   $ (915   $ (171

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

    

Provision for doubtful accounts

     1,247        1,222   

Depreciation

     1,445        1,558   

Loss on disposal of pumps

     151        271   

Amortization of intangible assets

     684        645   

Amortization of deferred debt issuance costs

     54        62   

Stock-based compensation

     341        248   

Deferred income taxes

     (310     (146

Changes in Assets - (Increase)/Decrease:

    

Accounts receivable, net of provision

     (2,122     (1,599

Other current assets

     (641     195   

Other assets

     302        (11

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

    

Accounts payable and other liabilities

     (149     (152
  

 

 

   

 

 

 

NET CASH PROVIDED BY OPERATING ACTIVITIES

     87        2,122   
  

 

 

   

 

 

 

INVESTING ACTIVITIES

    

Capital expenditures

     (1,207     (2,438

Acquisition of intangible assets

     (66     —     
  

 

 

   

 

 

 

NET CASH USED IN INVESTING ACTIVITIES

     (1,273     (2,438
  

 

 

   

 

 

 

FINANCING ACTIVITIES

    

Principal payments on term loan and seller’s note

     (1,217     (1,030

Proceeds from draw on revolving credit facility

     2,500        —     

Treasury shares repurchased

     —          (229

Principal payments on capital lease obligations

     (896     (263
  

 

 

   

 

 

 

NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES

     387        (1,522
  

 

 

   

 

 

 

Net change in cash and cash equivalents

     (799     (1,838

Cash and cash equivalents, beginning of period

     799        5,014   
  

 

 

   

 

 

 

Cash and cash equivalents, end of period

   $ —        $ 3,176   
  

 

 

   

 

 

 


InfuSystem Holdings, Inc. Announces First Quarter, Fiscal 2012 Results

 

INFUSYSTEM HOLDINGS, INC. AND SUBSIDIARIES

NON-GAAP RECONCILIATION

(UNAUDITED)

 

     Three Months Ended
March 31 (unaudited)
 

(in thousands, except share data)

   2012     2011  

Net loss

   $ (915   $ (171

Adjustments:

    

Interest expense

     601        541   

Income tax benefit

     (197     (146

Depreciation

     1,445        1,558   

Amortization

     684        645   
  

 

 

   

 

 

 

EBITDA

     1,618        2,427