EX-99.1 2 d537545dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

LOGO    InfuSystem Holdings, Inc.
   31700 Research Park Drive
   Madison Heights, MI 48071
   248-291-1210

FOR IMMEDIATE RELEASE

Monday, May 13, 2013

 

CONTACT:   

Rob Swadosh / Patrick Malone

The Dilenschneider Group

212-922-0900

INFUSYSTEM HOLDINGS, INC. REPORTS

THIRD STRAIGHT QUARTERLY PROFIT

Company Continues To Improve Liquidity Position

MADISON HEIGHTS, MICHIGAN, May 13, 2013—InfuSystem Holdings, Inc. (NYSE MKT: INFU) (“InfuSystem” or the “Company”), a leading national provider of infusion pumps and related services for the healthcare industry in the United States, today reported its third consecutive quarter of profitability in the first quarter ending March 31, 2013.

Net income in the first quarter was $0.1 million, equal to $0.00 per diluted share, compared to a $0.9 million net loss, or $0.04 loss per diluted share, in the prior year period. Gross profit for the three months ending March 31, 2013, was $10.4 million, consistent with the same prior year period.

“Our industry in general and InfuSystem in particular are well-positioned for continued growth,” said Eric Steen, who joined the Company as Chief Executive Officer on April 1, 2013. “We are firmly committed to organic growth as a means to further strengthen our position in a highly competitive environment. We remain vigilant about managing costs, and will seek to further increase free cash flow and reduce debt. Finally, as evidenced by our recent hiring of an accomplished Chief Information Officer, we will use technology to increase connectivity with all stakeholders – especially patients, who are number one priority,” he concluded.

Revenues in the first quarter of 2013 were $14.7 million, up 2% from $14.3 million in the first quarter of 2012. The increase in revenues is primarily related to the addition of larger customers, increased penetration into existing customer accounts, continuation of the revision to claims processing guidelines by a major group of third-party payors and a one-time delay in billing to certain payors caused by the requirement of additional paperwork.


SG&A decreased to $7.4 million from $9.0 million, down approximately 18%, when compared to the first quarter of 2012. The decrease was primarily attributed to prior year costs of $1.5 million pertaining to the special meeting, changes in the composition of the Board of Director’s, and retention payments made to key employees in connection with the change in senior management.

Other expenses were consistent for the three months ended March 31, 2013 compared to the similar period in 2012; however the breakdown included $0.3 million of additional interest expense due to the cost of the new debt facility. This was offset by a one-time cash receipt of $0.3 million related to a mutual insurance policy.

“We are very pleased to have further strengthened the balance sheet, especially reducing total debt by $2.8 million during the first quarter of 2013”, said Jonathan P. Foster, Chief Financial Officer.

Operating Results

Gross profit for the three months ended March 31, 2013 was $10.4 million, which was consistent with the same period in the prior year. It represented 71% of revenues in the current period compared to 73% in the prior year. The decrease in the gross margin as a percentage of revenue in 2013 was primarily related to an increase in connectivity costs with our customers.

Selling and marketing expenses were $2.4 million compared to $2.7 million for the three months ended March 31, 2012. The decrease in selling and marketing expenses was mainly attributed to lower travel, entertainment and salaries.

During the months ended March 31, 2013, general and administrative expenses were $5.0 million compared to $6.3 million for the same prior year period. General and administrative expenses have decreased from 44% to 34% of revenues for the first quarter of 2013 compared to the same period in the prior year. The decrease was primarily attributed to prior year costs of $1.5 million pertaining to the special meeting, changes in the composition of the Board of Directors, and retention payments to key employees during the major change in senior management. These prior year charges were offset by $0.3 million of expenses during the three months ended March 31, 2013 due primarily to fees related to the CEO search, the final Severance Payment made to the former CEO and one-time payments to a Board member (the “Transition Costs”).

Adjusted EBITDA was $3.7 million for the first quarter of 2013 compared to $3.4 million in 2012. 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.


Financial Condition

Net cash provided by operations for the three months ended March 31, 2013 was $1.6 million compared to a use of cash of less than $0.1 million for the prior year. The increase is primarily attributed to decreased general and administrative costs of $1.3 million when compared to the three months ended March 31, 2012. This includes professional fees of $0.9 million related to the special meeting and change in members of the Board of Directors, and a retention payment of $0.6 million paid to employees during the major change in senior management. The decreases were partially offset by an increase of $0.3 million of expenses during the three months ended March 31, 2013 due primarily to transition costs.

As of March 31, 2013, we had cash and cash equivalents of $0.5 million and $7.0 million of availability on the revolving line-of-credit compared to $2.3 million and $4.7 million, respectively, at December 31, 2012. During the three months ended March 31, 2013, the Company paid down $2.8 million of total debt.

Conference Call

The Company will conduct a conference call for investors on Tuesday, May 14, 2013 at 9:00 a.m. Eastern Time to discuss first quarter performance and results. Eric Steen, Chief Executive Officer, and Jonathan P. Foster, Chief Financial Officer, will discuss the Company’s financial performance and answer questions from the financial community. To participate in this call, please dial in toll-free (888) 895-5271 and use the confirmation number 34802235.

About InfuSystem Holdings, Inc.

InfuSystem Holdings, Inc. is a 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. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

 

     March 31,     December 31,  

(in thousands, except share data)

   2013     2012  
     (Unaudited)        

ASSETS

    

Current Assets:

    

Cash and cash equivalents

   $ 472      $ 2,326   

Accounts receivable, less allowance for doubtful accounts of $3,601 and $3,136 at March 31, 2013 and December 31, 2012, respectively

     9,570        8,511   

Inventory

     1,378        1,339   

Other current assets

     832        684   

Deferred income taxes

     1,986        1,971   
  

 

 

   

 

 

 

Total Current Assets

     14,238        14,831   

Medical equipment held for sale or rental

     2,582        2,626   

Medical equipment in rental service, net of accumulated depreciation

     13,223        13,071   

Property & equipment, net of accumulated depreciation

     848        867   

Deferred debt issuance costs, net

     2,232        2,362   

Intangible assets, net

     24,871        25,541   

Deferred income taxes

     17,755        17,806   

Other assets

     477        419   
  

 

 

   

 

 

 

Total Assets

   $ 76,226      $ 77,523   
  

 

 

   

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

    

Current Liabilities:

    

Accounts payable

   $ 3,056      $ 2,135   

Accounts payable - related party

     —           9   

Current portion of long-term debt

     3,872        3,953   

Other current liabilities

     4,182        4,098   
  

 

 

   

 

 

 

Total Current Liabilities

     11,110        10,195   

Long-term debt, net of current portion

     24,594        27,315   
  

 

 

   

 

 

 

Total Liabilities

   $ 35,704      $ 37,510   
  

 

 

   

 

 

 

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 and outstanding 21,990,000 and 21,802,515, as of March 31, 2013 and December 31, 2012, respectively

     2        2   

Additional paid-in capital

     89,200        88,742   

Retained deficit

     (48,680     (48,731
  

 

 

   

 

 

 

Total Stockholders’ Equity

     40,522        40,013   
  

 

 

   

 

 

 

Total Liabilities and Stockholders’ Equity

   $ 76,226      $ 77,523   
  

 

 

   

 

 

 


INFUSYSTEM HOLDINGS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

 

     Three Months Ended
March 31,
 

(in thousands, except share data)

   2013     2012  
     (Unaudited)  

Net revenues:

    

Rentals

   $ 13,445      $ 12,905   

Product sales

     1,256        1,443   
  

 

 

   

 

 

 

Net revenues

     14,701        14,348   

Cost of revenues:

    

Cost of revenues - Product, service and supply costs

     2,579        2,235   

Cost of revenues - Pump depreciation and loss on disposal

     1,699        1,677   
  

 

 

   

 

 

 

Gross profit

     10,423        10,436   
  

 

 

   

 

 

 

Selling, general and administrative expenses:

    

Provision for doubtful accounts

     1,660        1,247   

Amortization of intangibles

     672        684   

Selling and marketing

     2,408        2,745   

General and administrative

     5,031        6,273   
  

 

 

   

 

 

 

Total selling, general and administrative:

     9,771        10,949   
  

 

 

   

 

 

 

Operating income (loss)

     652        (513

Other income (loss):

    

Interest expense

     (874     (601

Other income

     312        2   
  

 

 

   

 

 

 

Total other loss

     (562     (599
  

 

 

   

 

 

 

Income (loss) before income taxes

     90        (1,112

Income tax (expense) benefit

     (39     197   
  

 

 

   

 

 

 

Net income (loss)

   $ 51      $ (915
  

 

 

   

 

 

 

Net income (loss) per share:

    

Basic

   $ 0.00      $ (0.04

Diluted

   $ 0.00      $ (0.04

Weighted average shares outstanding:

    

Basic

     21,802,515        21,132,545   

Diluted

     22,238,160        21,132,545   


INFUSYSTEM HOLDINGS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 

     Three Months Ended
March 31,
 

(in thousands)

   2013     2012  
     (Unaudited)  

NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES

     1,632        (15
  

 

 

   

 

 

 

INVESTING ACTIVITIES

    

Purchases of medical equipment and property

     (1,777     (2,096

Proceeds from sale of medical equipment and property

     1,093        925   
  

 

 

   

 

 

 

NET CASH USED IN INVESTING ACTIVITIES

     (684     (1,171
  

 

 

   

 

 

 

FINANCING ACTIVITIES

    

Principal payments on term loans and capital lease obligations

     (2,802     (2,113

Cash proceeds from bank loans and revolving credit facility

     —          2,500   
  

 

 

   

 

 

 

NET CASH USED IN (PROVIDED BY) FINANCING ACTIVITIES

     (2,802     387   
  

 

 

   

 

 

 

Net change in cash and cash equivalents

     (1,854     (799

Cash and cash equivalents, beginning of period

     2,326        799   
  

 

 

   

 

 

 

Cash and cash equivalents, end of period

   $ 472      $ —     
  

 

 

   

 

 

 


INFUSYSTEM HOLDINGS, INC. AND SUBSIDIARIES

GAAP RECONCILIATION

(UNAUDITED)

 

     Three Months Ended  
     March 31,  

(in thousands)

   2013      2012  

Net income (loss)

   $ 51       $ (915

Adjustments:

     

Interest Expense

     874         601   

Income Tax Benefit

     39         (197

Depreciation

     1,302         1,445   

Amortization

     672         684   
  

 

 

    

 

 

 

EBITDA

   $ 2,938       $ 1,618   

Concerned Stockholder Group and Retention

     —           1,466   

Stock compensation

     458         341   

Transition costs

     272         —     
  

 

 

    

 

 

 

EBITDA - Adjusted

   $ 3,668       $ 3,425