Exhibit 99.1

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

 

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

Tuesday, August 07, 2012

InfuSystem Holdings, Inc. Reports $14.1 Million of Revenues for the Second

Quarter of 2012; Announces Annualized Cost Savings in Excess of $1 million

MADISON HEIGHTS, MICHIGAN, August 7, 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 revenues for the quarter ending June 30, 2012, were $14.1 million, up 7% from $13.1 million in the second quarter of 2011. Total revenues for the six months ended June 30, 2012, were $28.4 million, a 9% improvement from $26.1 million in the 2011 period.

Gross profit for the three months ending June 30, 2012, was $10.3 million, up 14% from $9.0 million in second quarter of last year. Gross profit for the first six months of 2012 was $20.7 million, an increase of 15% compared to $18.0 million for the first six months of 2011.

The second quarter net loss was $0.8 million, equal to a $0.04 loss per diluted share, compared to the $27.9 million net loss, equal to a $1.32 loss per diluted share in the prior period. For the six months ended June 30, 2012, the Company’s net loss was $1.7 million or $0.08 per diluted share, versus a net loss of $28.1 million or $1.33 per diluted share, for the year-ago period. One-time net expenses of $1.7 million and $3.2 million for the three and six months ended June 30, 2012, hampered these results related, respectively, to the Settlement Agreement and Fifth Amendment, including debt extinguishment, as discussed below.

The Company achieved a number of annualized cost-savings actions totaling in excess of $1 million in the second quarter, which also saw the installation of a new board and executive management team.


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

 

“We have made important financial and operational progress,” said Interim Chief Executive Officer Dilip Singh. “Eliminating unnecessary management positions and reducing board cash compensation contributed significantly to the $1 million-plus in annual savings. We expect to see additional cost-saving initiatives introduced in the third quarter. At the same time, our management team and employees are focused on revenue growth.”

Mr. Singh added that these initial improvements represent the beginning of a broad strategic effort to deliver long-term growth and profitability. “We will continue to concentrate our efforts on maximizing cash generation with EBITDA for sustained financial stability, while growing market share in our core markets. Organic growth prospects remain strong. Feedback from our customers, channels, and partners has been very positive. They appreciate our commitment to further enhance customer service solutions that make their jobs easier.”

Operating Results

The 7% increase in revenues compared to the second quarter of 2011 and the 9% increase for the six months ended June 30, 2012, are primarily related to the addition of new customers with larger patient bases, increased penetration into our existing customer accounts and the cessation of the 2011 oncology drug shortage affecting certain products.

The $10.3 million in gross profit recorded in the second quarter of 2012 represented 73% of revenues for the current period compared with 68% in the prior year’s period. For the first half of 2012, the $20.7 million in gross profit represented 73% of revenues compared to 69% for the same period last year. This increase in the gross margin percentage was primarily related to lower pump depreciation and a higher mix of pump rentals as compared to pump sales and services.

Selling, general and administrative expenses (“SG&A”) for the second quarter of fiscal 2012 were $10.2 million, significantly lower than the prior period’s $52.4 million. For the six months ended June 30, 2012, SG&A was $21.2 million compared with $61.2 million for the same period last year. The drop in SG&A is due to prior years’ numbers contained a charge for asset impairment of $44.2 million. Excluding non-cash impairment charges, SG&A increased $2.1 million for the quarter and $4.2 million for the six months ended June 30, 2012.

For the quarter, the major factors contributing to the increase in SG&A were expenses of $1.4 million related primarily to legal fees and $1.0 million of severance costs associated with the Settlement Agreement. SG&A experienced an increase primarily, compared to the prior periods, in selling compensation and travel costs and an increase in our finance and accounting staffs. These SG&A costs were partially offset by the reversal of previously recognized stock compensation expense of $1.3 million associated with the Settlement Agreement. With regard to the first half of 2012, the increase in SG&A related primarily to $2.3 million in legal expenses, the aforementioned $1.0 million in severance costs and $0.6 million in retention payments to key employees – net of the aforementioned $1.3 million reversal of stock compensation expense. The Settlement Agreement is described in the 8-K the Company filed on April 26. Additional increases in SG&A relate mainly to an increase in selling costs due to higher retention and travel costs.

During the second quarter of fiscal 2012, the Company entered into the Fifth Amendment to its Credit Facility, which resulted in one-time charge for an extinguishment of debt. Previously capitalized debt issuance costs of $0.3 million and $0.3 million of certain payments made to secure the Fifth Amendment are shown as an extinguishment of debt for the period.


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

 

EBITDA for the second quarter of fiscal 2012 was $1.6 million compared with $3.2 million a year ago, excluding asset impairment charges. For the six months ended June 30, 2012, EBITDA was $3.2 million, compared with $5.6 million for the same period in 2011, excluding asset impairment charges. Excluding the one-time fees associated with the Settlement Agreement and the Fifth Amendment described above, EBITDA for 2012 would have been $3.3 million and $6.4 million, respectively. A Non-GAAP reconciliation from net income can be found in the appendix.

Financial Condition

Net cash provided by operations for the six months ended June 30, 2012, was $3.7 million, compared to $2.9 million in the prior-year 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 $1.7 million, a decrease of $0.7 million compared to the prior-year period. The Company had available $3.0 million on its $5.0 million revolving credit facility. During the quarter, the Company reduced its draw under its revolving credit facility by $0.6 million in addition to the normal quarterly payment on its $19.6 million in long-term debt. The Company ended the quarter with $0.8 million of cash compared to none in the previous quarter.

Conference Call

The Company will host a conference call to share the results of its second quarter fiscal 2012 results on Wednesday, August 8, 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 by telephone. To participate, the dial-in number is (888)-895-5271 with confirmation number 33012557. Those who wish to listen should dial in five minutes prior to the call to register. An online audio replay of the conference call will be available on the Company’s website 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 Second Quarter, Fiscal 2012 Results

 

INFUSYSTEM HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

 

(in thousands, except share data)

   June 30,
2012
    December 31,
2011
 
     (Unaudited)        

ASSETS

    

Current Assets:

    

Cash and cash equivalents

   $ 804      $ 799   

Accounts receivable, less allowance for doubtful accounts of $1,867 and $1,773 at June 30, 2012 and December 31, 2011, respectively

     7,752        7,350   

Accounts receivable—related party

     2        98   

Inventory

     3,885        3,217   

Prepaid expenses and other current assets

     746        934   

Deferred income taxes

     646        682   
  

 

 

   

 

 

 

Total Current Assets

     13,835        13,080   

Property & equipment, net

     14,440        15,764   

Deferred debt issuance costs, net

     194        421   

Intangible assets, net

     26,924        28,221   

Deferred income taxes

     18,872        18,187   

Other assets

     458        590   
  

 

 

   

 

 

 

Total Assets

   $ 74,723      $ 76,263   
  

 

 

   

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

    

Current Liabilities:

    

Accounts payable

   $ 4,778      $ 4,004   

Accounts payable—related party

     —          59   

Derivative liabilities

     236        258   

Other current liabilities

     2,742        2,235   

Current portion of long-term debt

     6,256        6,576   
  

 

 

   

 

 

 

Total Current Liabilities

     14,012        13,132   

Revolving credit facility

     1,940        —     

Long-term debt, net of current portion

     19,570        22,551   

Other liabilities

     —          415   
  

 

 

   

 

 

 

Total Liabilities

   $ 35,522      $ 36,098   
  

 

 

   

 

 

 

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 21,432,161

     2        2   

and 21,330,235, respectively; outstanding 21,234,471,and 21,132,545, respectively

    

Additional paid-in capital

     88,184        87,541   

Accumulated other comprehensive loss

     —          (136

Accumulated deficit

     (48,985     (47,242
  

 

 

   

 

 

 

Total Stockholders’ Equity

     39,201        40,165   
  

 

 

   

 

 

 

Total Liabilities and Stockholders’ Equity

   $ 74,723      $ 76,263   
  

 

 

   

 

 

 


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

 

INFUSYSTEM HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE LOSS

(UNAUDITED)

 

     Three Months Ended     Six Months Ended  
     June 30     June 30  
(in thousands, except share data)    2012     2011     2012     2011  

Net revenues:

        

Rentals

   $ 12,973      $ 11,467      $ 25,878      $ 23,019   

Product Sales

     1,099        1,666        2,542        3,071   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net revenues

     14,072        13,133        28,420        26,090   

Cost of revenues:

        

Cost of revenues — Product, service and supply costs

     2,148        2,174        4,383        4,316   

Cost of revenues — Pump depreciation and disposals

     1,650        1,971        3,327        3,732   
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     10,274        8,988        20,710        18,042   
  

 

 

   

 

 

   

 

 

   

 

 

 

Selling, general and administrative expenses:

        

Provision for doubtful accounts

     893        927        2,140        2,149   

Amortization of intangibles

     674        663        1,358        1,309   

Asset impairment charges

     —          44,213        —          44,213   

Selling and marketing

     2,541        2,326        5,286        4,769   

General and administrative

     6,137        4,251        12,410        8,767   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total sales, general and administrative

     10,245        52,380        21,194        61,207   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss)

     29        (43,392     (484     (43,165

Other income (expense):

        

Gain on derivatives

     —          83        —          83   

Interest expense

     (663     (564     (1,264     (1,105

Loss on extinguishment of long term debt

     (552     —          (552     —     

Other income

     —          2        2        —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Total other loss

     (1,215     (479     (1,814     (1,022
  

 

 

   

 

 

   

 

 

   

 

 

 

Loss before income taxes

     (1,186     (43,871     (2,298     (44,187

Income tax benefit

     358        15,985        555        16,131   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss

   $ (828   $ (27,886   $ (1,743   $ (28,056
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss per share:

        

Basic

     (0.04     (1.32     (0.08     (1.33

Diluted

     (0.04     (1.32     (0.08     (1.33

Weighted average shares outstanding:

        

Basic

     21,196,085        21,059,292        21,164,315        21,080,683   

Diluted

     21,196,085        21,059,292        21,164,315        21,080,683   

Comprehensive Loss

        

Net loss

   $ (828   $ (27,886   $ (1,743   $ (28,056

Unrealized (loss) gain on interest rate swap, net of taxes

     —          (81     1        (34

Reclassification of hedging losses, net of taxes

     (111     —          (111     —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Comprehensive Loss

   $ (939   $ (27,967   $ (1,853   $ (28,090
  

 

 

   

 

 

   

 

 

   

 

 

 


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

 

INFUSYSTEM HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF CASH FLOWS

(UNAUDITED)

 

     Six Months Ended  
     June 30  
(in thousands)    2012     2011  

OPERATING ACTIVITIES

    

Net loss

   $ (1,743   $ (28,056

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

    

Loss on cash flow hedge

     111        —     

Gain on derivative liabilities

     —          (83

Loss on extinguishment of long-term debt

     552        —     

Provision for doubtful accounts

     2,140        2,149   

Depreciation

     2,903        3,167   

Amortization of intangible assets

     1,358        1,309   

Asset impairment charges

     —          44,213   

Amortization of deferred debt issuance costs

     137        122   

Stock-based compensation

     310        502   

Deferred income taxes

     (646     (16,242

Changes in assets - (Increase)/Decrease:

    

Accounts receivable, net of provision

     (2,446     (2,197

Inventory

     699        794   

Other current assets

     (480     67   

Other assets

     (315     (166

Changes in liabilities - Increase/(Decrease):

    

Accounts payable and other liabilities

     1,084        (2,651
  

 

 

   

 

 

 

NET CASH PROVIDED BY OPERATING ACTIVITIES

     3,664        2,928   
  

 

 

   

 

 

 

INVESTING ACTIVITIES

    

Capital expenditures

     (1,733     (2,383

Other asset acquisitions

     (76     (942
  

 

 

   

 

 

 

NET CASH USED IN INVESTING ACTIVITIES

     (1,809     (3,325
  

 

 

   

 

 

 

FINANCING ACTIVITIES

    

Principal payments on debt

     (3,006     (2,061

Proceeds from draw on revolving credit facility

     2,500        —     

Common stock repurchased to satisfy statutory witholding on stock based compensation

     (32     —     

Treasury shares repurchased

     —          (248

Principal payments on capital lease obligations

     (1,312     (585
  

 

 

   

 

 

 

NET CASH USED IN FINANCING ACTIVITIES

     (1,850     (2,894
  

 

 

   

 

 

 

Net change in cash and cash equivalents

     5        (3,291

Cash and cash equivalents, beginning of period

     799        5,014   
  

 

 

   

 

 

 

Cash and cash equivalents, end of period

   $ 804      $ 1,723   
  

 

 

   

 

 

 


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

 

INFUSYSTEM HOLDINGS, INC. AND SUBSIDIARIES

NON-GAAP RECONCILIATION

(UNAUDITED)

 

     Three Months Ended     Six Months Ended  
     June 30     June 30  

(in thousands, except share data)

   2012     2011     2012     2011  

Net loss

   $ (828   $ (27,886   $ (1,743   $ (28,056

Adjustments:

        

Interest expense

     663        564        1,264        1,105   

Income tax benefit

     (358     (15,985     (555     (16,131

Depreciation

     1,458        1,609        2,903        3,167   

Amortization

     674        663        1,358        1,309   
  

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA

   $ 1,609      $ (41,035   $ 3,227      $ (38,606