Exhibit 99.1

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

 

LOGO   

InfuSystem Holdings, Inc.

31700 Research Park Drive

Madison Heights, MI 48071

248-291-1210

FOR IMMEDIATE RELEASE

Wednesday, November 14, 2012

CONTACT:   Rob Swadosh / Patrick Malone

                         The Dilenschneider Group

                          212-922-0900

INFUSYSTEM HOLDINGS, INC. REPORTS THIRD QUARTER PROFIT;

Company Further Improves Liquidity Position

MADISON HEIGHTS, MICHIGAN, November 14, 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 that the Company returned to profitability in the third quarter ending September 30, 2012.

Gross profit for the three months ending September 30, 2012, was $10.2 million, up 10% from $9.2 million in the third quarter of 2011. Gross profit for the first nine months of 2012 was $30.9 million, an increase of 13% compared to $27.3 million for the first nine months of last year.

Net income was $0.1 million, equal to $0.00 per diluted share, compared to a $16.6 million net loss, or $0.79 loss per diluted share, in the prior period. For the nine months ended September 30, 2012, the Company’s net loss was $1.7 million, or $0.08 per diluted share, versus a net loss of $44.7 million, or $2.12 per diluted share, for the year-ago period.

Revenues were $14.2 million, down 2% from $14.5 million in the third quarter of 2011. This decrease was mainly attributed to an opportunistic sale of pumps to a select few customers in third quarter of 2011 that amounted to $1.3 million. Excluding these pump sales, revenues would have increased by 7% from $13.2 million. Total revenues for the nine months ended September 30, 2012, were $42.6 million, a 5% improvement from $40.6 million in the similar 2011 period. Excluding the aforementioned pump sales, revenues for the full year would have increased by 8% from $39.3 million.

The Company has now accumulated annualized cost-savings of approximately $1.5 million since the current leadership team assumed full control of the Company during the second quarter of 2012.


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

 

“InfuSystem’s operational performance continues on a positive trend as evidenced by our ability to achieve profitability in the third quarter, while delivering best in class service and patient satisfaction,” said Interim Chief Executive Officer Dilip Singh. “Our entire team has embraced efforts to focus, prioritize and execute in order to sustain this growth. We will continue to drive operational efficiencies and further integrate assets to build on progress to date.”

“We are pleased to have reduced our net debt position from $30.1 million as of March 31, 2012 to $24.6 million as of September 30, 2012. This significant decrease reflects management’s attention to expenses and managing the balance sheet for maximum cash impact,” Mr. Singh noted.

Operating Results

The 2% decrease in revenues compared to the third quarter of 2011 and the 5% increase for the nine months ended September 30, 2012, are primarily related to the addition of new customers with larger patient bases, increased penetration into our existing customer accounts and the resolution by our customers of the oncology drug shortage affecting certain products.

The $10.2 million in gross profit recorded in the third quarter of 2012 represented 72% of revenues for the current period compared with 64% in the prior year’s period. For the nine months ended September 30, 2012, the $30.9 million in gross profit represented 73% of revenues compared to 67% 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 third quarter of fiscal 2012 were $9.3 million, significantly lower than the prior year period’s $31.7 million. For the nine months ended September 30, 2012, SG&A was $30.5 million compared with $92.9 million for the same period last year. The drop in SG&A is due to prior year numbers containing a charge for asset impairment of $23.4 million and $67.6 million, respectively. Excluding non-cash impairment charges, SG&A increased $1.0 million for the quarter and $5.1 million for the nine months ended September 30, 2012.

For the third quarter of 2012, the Company incurred net expenses of $0.4 million related to intensive study initiated by prior management to explore and evaluate potential strategic alternatives ($0.5 million) and a reduction in accrued expenses associated with the Concerned Stockholder Group ($0.1 million). SG&A also experienced an increase, compared to the prior year period, in selling compensation and travel costs and an increase in our finance and accounting staffs.

For the nine months ended September 30, 2012, $2.9 million of the increase in SG&A related primarily to $2.2 million in legal expenses, $1.0 million in severance costs, $0.6 million in retention payments to key employees – net of $1.4 million reversals of stock compensation expense and $0.5 million relating to the aforementioned strategic alternatives. Additional increases in SG&A relate mainly to increases in selling costs due to higher retention and travel costs and office expenses and an increase in our finance and accounting staffs.

Additionally, during the third quarter of 2012, the Company incurred an increase in its interest expense due to the monthly ticking fee added under its Fifth Amendment to the Company’s credit facility ($0.5 million).


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

 

Net expenses for the nine months ended September 30, 2012 totaled $4.0 million, including aforementioned net costs of $2.9 million, in addition to the Fifth Amendment, including $0.6 million relating to debt extinguishment, and $0.5 million relating to monthly ticking fees.

EBITDA for the third quarter of fiscal 2012 was $2.9 million compared with $3.2 million a year ago, excluding asset impairment charges. For the nine months ended September 30, 2012, EBITDA was $6.1 million compared with $8.8 million for the same period in 2011, excluding asset impairment charges. Excluding the fees associated with the Concerned Stockholder Group, Settlement Agreement, Fifth Amendment costs and strategic alternative costs described above, EBITDA for three and nine months of 2012 would have been $3.4 million and $11.0 million, respectively. A Non-GAAP reconciliation from net income can be found in the appendix.

Financial Condition

Net cash provided by operations for the nine months ended September 30, 2012, was $8.3 million compared to $3.7 million in the prior-year period. The latest quarter’s results reflected increased expenses associated with the decision to pursue strategic alternatives and the newly implemented ticking fee. In addition, the Company reported capital expenditures of $3.2 million, a decrease of $0.1 million compared to the prior-year period. The Company had $1.5 million drawn on its $5.0 million revolving credit facility. During the quarter, the Company reduced its draw under its revolving credit facility by $0.4 million in addition to the normal quarterly payment on its term debt. In addition, as a result of the Fifth Amendment entered into in the second quarter of 2012, the Company reclassified all debt pertaining to its Term Loan to short-term debt in the third quarter of 2012, a total of $20.6 million, based on a due date of July 1, 2013. The Company ended the quarter with $1.5 million of cash compared to $0.8 million in the previous quarter.

Conference Call

The Company will host a conference call to share the results of its third quarter fiscal 2012 results on Thursday, November 15, 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)-895-5479 with confirmation number 33635260. 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.


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

 

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 Third Quarter, Fiscal 2012 Results

 

INFUSYSTEM HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

 

(in thousands, except share data)

   September 30,
2012
    December 31,
2011
 
     (Unaudited)        

ASSETS

    

Current Assets:

    

Cash and cash equivalents

   $ 1,464      $ 799   

Accounts receivable, less allowance for doubtful accounts of $1,858 and $1,773 at September 30, 2012 and December 31, 2011, respectively

     7,629        7,350   

Accounts receivable - related party

     3        98   

Inventory

     3,804        3,217   

Prepaid expenses and other current assets

     632        934   

Deferred income taxes

     647        682   
  

 

 

   

 

 

 

Total Current Assets

     14,179        13,080   

Property & equipment, net

     14,037        15,764   

Deferred debt issuance costs, net

     143        421   

Intangible assets, net

     26,260        28,221   

Deferred income taxes

     19,002        18,187   

Other assets

     402        590   
  

 

 

   

 

 

 

Total Assets

   $ 74,023      $ 76,263   
  

 

 

   

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

    

Current Liabilities:

    

Accounts payable

   $ 4,857      $ 4,004   

Accounts payable - related party

     42        59   

Derivative liabilities

     223        258   

Other current liabilities

     3,734        2,235   

Revolving credit facility

     1,500        —     

Current portion of long-term debt

     22,403        6,576   
  

 

 

   

 

 

 

Total Current Liabilities

     32,759        13,132   

Long-term debt, net of current portion

     1,928        22,551   

Other liabilities

     —          415   
  

 

 

   

 

 

 

Total Liabilities

   $ 34,687      $ 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 21,980,806 and 21,330,235, respectively; outstanding 21,783,118, and 21,132,545, respectively

     2        2   

Additional paid-in capital

     88,286        87,541   

Accumulated other comprehensive loss

     —          (136

Accumulated deficit

     (48,952     (47,242
  

 

 

   

 

 

 

Total Stockholders’ Equity

     39,336        40,165   
  

 

 

   

 

 

 

Total Liabilities and Stockholders’ Equity

   $ 74,023      $ 76,263   
  

 

 

   

 

 

 


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

 

INFUSYSTEM HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(UNAUDITED)

 

     Three Months Ended
September 30
    Nine Months Ended
September 30
 
(in thousands, except share data)    2012     2011     2012     2011  

Net revenues:

        

Rentals

   $ 13,025      $ 11,880      $ 38,903      $ 35,502   

Product Sales

     1,150        2,625        3,692        5,093   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net revenues

     14,175        14,505        42,595        40,595   

Cost of revenues:

        

Cost of revenues — Product, service and supply costs

     2,377        2,346        6,760        6,662   

Cost of revenues — Pump depreciation and disposals

     1,601        2,927        4,928        6,659   
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     10,197        9,232        30,907        27,274   
  

 

 

   

 

 

   

 

 

   

 

 

 

Selling, general and administrative expenses:

        

Provision for doubtful accounts

     979        884        3,119        3,033   

Amortization of intangibles

     670        683        2,028        1,992   

Asset impairment charges

     —          23,379        —          67,592   

Selling and marketing

     2,349        2,320        7,635        7,089   

General and administrative

     5,278        4,460        17,688        13,227   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total sales, general and administrative

     9,276        31,726        30,470        92,933   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss)

     921        (22,494     437        (65,659

Other income (expense):

        

Gain on derivatives

     —          —          —          83   

Interest expense

     (971     (541     (2,235     (1,646

Loss on extinguishment of long term debt

     —          —          (552     —     

Other income

     (136     (118     (134     (118
  

 

 

   

 

 

   

 

 

   

 

 

 

Total other loss

     (1,107     (659     (2,921     (1,681

Loss before income taxes

     (186     (23,153     (2,484     (67,340

Income tax benefit

     219        6,530        774        22,661   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

   $ 33      $ (16,623   $ (1,710   $ (44,679
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss) per share:

        

Basic

     0.00        (0.79     (0.08     (2.12

Diluted

     0.00        (0.79     (0.08     (2.12

Weighted average shares outstanding:

        

Basic

     21,601,529        21,067,502        21,311,116        21,076,241   

Diluted

     21,827,365        21,067,502        21,311,116        21,076,241   

Comprehensive Income (Loss)

        

Net income (loss)

   $ 33      $ (16,623   $ (1,710   $ (44,679

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

     —          (67     1        (101

Reclassification of hedging losses, net of taxes

     —          —          (111     —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Comprehensive income (loss)

   $ 33      $ (16,690   $ (1,820   $ (44,780
  

 

 

   

 

 

   

 

 

   

 

 

 


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

 

INFUSYSTEM HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF CASH FLOWS

(UNAUDITED)

 

     Nine Months Ended  
     September 30  
(in thousands)    2012     2011  

OPERATING ACTIVITIES

    

Net loss

   $ (1,710   $ (44,679

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

     3,119        3,033   

Depreciation

     4,343        4,890   

Amortization of intangible assets

     2,028        1,992   

Asset impairment charges

     —          67,592   

Amortization of deferred debt issuance costs

     188        181   

Stock-based compensation

     511        921   

Deferred income taxes

     (777     (22,673

Changes in assets - (Increase)/Decrease:

    

Accounts receivable, net of provision

     (3,303     (4,337

Inventory

     956        1,655   

Other current assets

     (285     14   

Other assets

     157        (70

Changes in liabilities - Increase/(Decrease):

    

Accounts payable and other liabilities

     2,373        (4,739
  

 

 

   

 

 

 

NET CASH PROVIDED BY OPERATING ACTIVITIES

     8,263        3,697   
  

 

 

   

 

 

 

INVESTING ACTIVITIES

    

Capital expenditures

     (3,151     (3,295

Other asset acquisitions

     (69     (942
  

 

 

   

 

 

 

NET CASH USED IN INVESTING ACTIVITIES

     (3,220     (4,237
  

 

 

   

 

 

 

FINANCING ACTIVITIES

    

Principal payments on debt

     (4,570     (3,287

Proceeds from draw on revolving credit facility

     2,500        551   

Debt issuance costs

     (429     —     

Common stock repurchased to satisfy statutory withholding on stock based compensation

     (131     —     

Treasury shares repurchased

     —          (343

Principal payments on capital lease obligations

     (1,748     (962
  

 

 

   

 

 

 

NET CASH USED IN FINANCING ACTIVITIES

     (4,378     (4,041
  

 

 

   

 

 

 

Net change in cash and cash equivalents

     665        (4,581

Cash and cash equivalents, beginning of period

     799        5,014   
  

 

 

   

 

 

 

Cash and cash equivalents, end of period

   $ 1,464      $ 433   
  

 

 

   

 

 

 


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

 

INFUSYSTEM HOLDINGS, INC. AND SUBSIDIARIES

NON-GAAP RECONCILIATION

(UNAUDITED)

 

     Three Months Ended
September 30
    Nine Months Ended
September 30
 

(in thousands, except share data)

   2012     2011     2012     2011  

Net income (loss)

   $ 33      $ (16,623   $ (1,710   $ (44,679

Adjustments:

        

Interest Expense

     971        541        2,235        1,646   

Income Tax Benefit

     (219     (6,530     (774     (22,661

Depreciation

     1,440        1,723        4,343        4,890   

Amortization

     670        683        2,028        1,992   
  

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA

   $ 2,895      $ (20,206   $ 6,122      $ (58,812

Asset impairment charges

     —          23,379        —          67,592   
  

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA - excluding impairment charges

     2,895        3,173        6,122        8,780   

Concerned Stockholder Group

     —          —          3,826        —     

Fifth Amendment

     —          —          552        —     

Strategic Alternatives

     466        —          466        —     
  

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA - Adjusted

   $ 3,361      $ 3,173      $ 10,966      $ 8,780