Le Lézard
Classified in: Business, Covid-19 virus
Subjects: EARNINGS, Personnel, Conference Call, Webcast, Stock Sale/Buyback, Share Issue

Electromed, Inc. Announces Third Quarter Financial Results


Electromed, Inc. ("Electromed" or the "Company") (NYSE American: ELMD), a leader in innovative airway clearance technologies, today announced financial results for its fiscal 2022 third quarter ended March 31, 2022. Management will host a conference call at 5:00 p.m. Eastern Time today to discuss the results.

Fiscal Third Quarter 2022 Highlights

"I am pleased to report that in the third quarter of fiscal 2022, Electromed generated 15.4% year-over-year revenue growth while managing through a challenging operating environment," said Kathleen Skarvan, Electromed's President and Chief Executive Officer. "We continued to achieve key milestones in the execution of our strategic initiatives including the expansion of our sales force, maintaining our next generation development schedule consistent with an expected launch during the first half of fiscal 2023, building the system infrastructure necessary to support future growth, and hiring a Chief Commercial Officer to lead the execution of our growth initiatives. We ended the quarter with positive momentum, our direct sales force at near full staffing and recording the highest home care monthly referrals in company history; we are excited to continue that momentum into the fourth quarter of fiscal 2022."

Chief Financial Officer Transition

The Company also announced that the Chief Financial Officer, Michael MacCourt, will resign effective July 1, 2022. Mr. MacCourt plans to pursue a new opportunity outside of corporate finance. Michelle C. Wirtz, the Company's Corporate Controller, will be appointed to the position of Interim Chief Financial Officer on June 1, 2022 prior to Mr. MacCourt exiting the company. Mr. MacCourt is expected to remain an employee through July 1, 2022 to ensure a smooth transition. The Company plans to explore options for a permanent appointment.

"I would like to thank Mike for the valuable contributions he has made since joining Electromed in May of 2020," said Ms. Skarvan. "His leadership and expertise have strengthened our corporate finance function during his tenure and he has been a trusted advisor to me. I wish him well in his future endeavors."

Ms. Skarvan added, "I am delighted to announce Michelle's appointment. She possesses a strong corporate finance, accounting and external reporting background, healthcare experience, and is intimately familiar with Electromed's business model," said Ms. Skarvan. "We can't think of a better candidate to assume the role as we explore our options for a permanent appointment."

Ms. Wirtz currently serves as Corporate Controller at Electromed and brings over 15 years of experience in accounting, financial analysis, SEC reporting, and M & A transaction support. Prior to joining Electromed, Ms. Wirtz served as Corporate Controller for Icario, Inc., a national health-tech company providing member engagement solutions to U.S. health insurers, from June 2018 to December 2021. Prior to joining Icario, Ms. Wirtz served as a Senior Consultant, Finance and Accounting, for Salo, Inc., and held positions of increasing responsibility at global CPA firms Ernst & Young and RMS McGladrey. Ms. Wirtz holds an active CPA license in the state of Minnesota.

Fiscal Third Quarter 2022 Results

Net revenues in the third quarter of the Company's fiscal year ending June 30, 2022 ("fiscal 2022") increased 15.4% year-over-year to $10.1 million, from $8.8 million in the third quarter of the Company's fiscal year ended June 30, 2021 ("fiscal 2021"), driven largely by 10.7% growth in the home care business which benefitted from a growth in referrals due to increased direct sales representative productivity. Field sales employees totaled 51 at the end of the third quarter of fiscal 2022, 42 of which were direct sales representatives, compared to 48 field sales employees and 39 direct sales representatives at the end of the third quarter of fiscal 2021. Sales force productivity remained strong during the quarter, with annualized home care revenue per direct sales representative at $943,000, above the Company's targeted range of $800,000 to $900,000.

Institutional revenue declined 11.5% to $0.4 million in the third quarter of fiscal 2022, primarily due to lower capital sales compared to the same period in fiscal 2021. Distributor revenue increased 395.2% to $0.5 million in the third quarter of fiscal 2022 from $0.1 million in the same period a year ago, primarily due to increased demand from one of our key distribution partners. International revenue increased 157.9% to $0.2 million in the third quarter of fiscal 2022.

Gross profit in the third quarter of fiscal 2022 increased to $7.7 million, or 76.4% of net revenues, from $6.7 million, or 76.3% of net revenues, in the third quarter of fiscal 2021, as rising raw material and shipping costs were offset by higher Medicare allowable pricing, increased operational efficiencies and operating leverage on higher revenue.

Operating income totaled $0.9 million in the third quarter of fiscal 2022, compared to $0.2 million in the third quarter of fiscal 2021. The higher operating income was driven by 15.4% revenue growth compared to prior year, partially offset by increased strategic investment in sales, general and administrative costs.

Net income for the third quarter of fiscal 2022 was $0.6 million, or $0.07 per diluted share, compared to $0.2 million, or $0.03 per diluted share, in the third quarter of fiscal 2021.

As of March 31, 2022, Electromed had $9.8 million in cash, $19.6 million in accounts receivable, working capital of $28.0 million and total shareholders' equity of $34.0 million

Webcast and Conference Call Information

Electromed will host a conference call at 5:00 p.m. Eastern Time today, May 10, 2022. Interested parties may participate in the call by dialing (877) 407-0789 (Domestic) or (201) 689-8562 (International), and using pin number 13729193.

The call will be webcast live and will be available for replay in the Investor Relations section of Electromed's web site at investors.smartvest.com.

About Electromed, Inc.

Electromed, Inc. manufactures, markets, and sells products that provide airway clearance therapy, including the SmartVest® Airway Clearance System, to patients with compromised pulmonary function. The Company is headquartered in New Prague, Minnesota, and was founded in 1992. Further information about the Company can be found at www.smartvest.com.

Cautionary Statements

Certain statements in this press release constitute forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can generally be identified by words such as "anticipate," "believe," "estimate," "expect," "future," "intend," "may," "plan" "potential," "should," "will," and similar expressions, including the negative of these terms, but they are not the exclusive means of identifying such statements. Forward-looking statements cannot be guaranteed, and actual results may vary materially due to the uncertainties and risks, known or unknown associated with such statements. Examples of risks and uncertainties for the Company include, but are not limited to, the duration, extent and severity of the COVID-19 pandemic, including its effects on our business, operations and employees as well as its impact on our customers and distribution channels and on economies and markets more generally; the competitive nature of our market; changes to Medicare, Medicaid, or private insurance reimbursement policies; changes to state and federal health care laws; changes affecting the medical device industry; our ability to develop new sales channels for our products such as the homecare distributor channel; our need to maintain regulatory compliance and to gain future regulatory approvals and clearances; new drug or pharmaceutical discoveries; general economic and business conditions; our ability to renew our line of credit or obtain additional credit as necessary; our ability to protect and expand our intellectual property portfolio; the risks associated with expansion into international markets; the risks associated with cyberattacks, data breaches, computer viruses and other similar security threats, as well as other factors we may describe from time to time in the Company's reports filed with the Securities and Exchange Commission (including the Company's most recent Annual Report on Form 10-K, as amended from time to time, and subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K). Investors should not consider any list of such factors to be an exhaustive statement of all the risks, uncertainties or potentially inaccurate assumptions investors should take into account when making investment decisions. Shareholders and other readers should not place undue reliance on "forward-looking statements," as such statements speak only as of the date of this press release. We undertake no obligation to update them in light of new information or future events.

 

Electromed, Inc.

 

Condensed Balance Sheets

 
March 31, 2021 June 30, 2021
(Unaudited)
Assets
Current Assets
Cash and cash equivalents

$

9,844,000

$

11,889,000

Accounts receivable (net of allowances for doubtful accounts of $45,000)

 

19,614,000

 

17,032,000

Contract assets

 

295,000

 

393,000

Inventories

 

2,089,000

 

2,114,000

Prepaid expenses and other current assets

 

991,000

 

276,000

Income tax receivable

 

155,000

 

-

Total current assets

 

32,988,000

 

31,704,000

Property and equipment, net

 

4,309,000

 

3,605,000

Finite-life intangible assets, net

 

611,000

 

663,000

Other assets

 

77,000

 

88,000

Deferred income taxes

 

1,034,000

 

1,049,000

Total assets

$

39,019,000

$

37,109,000

 
Liabilities and Shareholders' Equity
Current Liabilities
Accounts payable

 

1,163,000

 

685,000

Accrued compensation

 

2,301,000

 

2,474,000

Income tax payable

 

-

 

288,000

Warranty reserve

 

938,000

 

940,000

Other accrued liabilities

 

564,000

 

252,000

Total current liabilities

 

4,966,000

 

4,639,000

Other long-term liabilities

 

43,000

 

54,000

Total liabilities

 

5,009,000

 

4,693,000

 
Commitments and Contingencies
 
Shareholders' Equity
Common stock, $0.01 par value per share, 13,000,000 shares authorized;
8,508,788 and 8,533,209 shares issued and outstanding, respectively

 

85,000

 

85,000

Additional paid-in capital

 

18,042,000

 

17,409,000

Retained earnings

 

15,883,000

 

14,922,000

Total shareholders' equity

 

34,010,000

 

32,416,000

Total liabilities and shareholders' equity

$

39,019,000

$

37,109,000

 

Electromed, Inc.

Condensed Statements of Operations (Unaudited)

 
Three Months Ended Nine Months Ended
March 31, March 31,

 

2022

 

 

2021

 

 

2022

 

 

2021

Net revenues

$

10,141,000

$

8,787,000

$

30,390,000

$

26,287,000

Cost of revenues

 

2,398,000

 

2,086,000

 

7,066,000

 

5,913,000

Gross profit

 

7,743,000

 

6,701,000

 

23,324,000

 

20,374,000

 
Operating expenses
Selling, general and administrative

 

6,544,000

 

6,051,000

 

19,806,000

 

16,490,000

Research and development

 

336,000

 

407,000

 

1,041,000

 

1,396,000

Total operating expenses

 

6,880,000

 

6,458,000

 

20,847,000

 

17,886,000

Operating income

 

863,000

 

243,000

 

2,477,000

 

2,488,000

Interest income, net

 

6,000

 

10,000

 

21,000

 

29,000

Net income before income taxes

 

869,000

 

253,000

 

2,498,000

 

2,517,000

 
Income tax expense

 

224,000

 

29,000

 

576,000

 

555,000

 
Net income

$

645,000

$

224,000

$

1,922,000

$

1,962,000

 
Income per share:
Basic

$

0.08

$

0.03

$

0.23

$

0.23

 
Diluted

$

0.07

$

0.03

$

0.22

$

0.22

 
Weighted-average common shares outstanding:
Basic

 

8,454,504

 

8,576,523

 

8,485,856

 

8,565,839

Diluted

 

8,744,535

 

8,907,045

 

8,762,963

 

8,921,494

 
 

Electromed, Inc.

Condensed Statements of Cash Flows (Unaudited)

 
 
Nine months Ended March 31,

 

2022

 

 

2021

 

Cash Flows From Operating Activities
Net income

$

1,922,000

 

$

1,962,000

 

Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation

 

368,000

 

 

359,000

 

Amortization of finite-life intangible assets

 

105,000

 

 

99,000

 

Share-based compensation expense

 

703,000

 

 

756,000

 

Deferred income taxes

 

15,000

 

 

102,000

 

Changes in operating assets and liabilities:
Accounts receivable

 

(2,582,000

)

 

(3,296,000

)

Contract assets

 

98,000

 

 

345,000

 

Inventories

 

9,000

 

 

839,000

 

Prepaid expenses and other current assets

 

(519,000

)

 

(69,000

)

Income tax receivable

 

(443,000

)

 

8,000

 

Accounts payable and accrued liabilities

 

550,000

 

 

350,000

 

Accrued compensation

 

(173,000

)

 

869,000

 

Net cash provided by operating activities

 

53,000

 

 

2,324,000

 

 
Cash Flows From Investing Activities
Investment in property and equipment

 

(980,000

)

 

(105,000

)

Investment in finite-life intangible assets

 

(86,000

)

 

(103,000

)

Net cash used in investing activities

 

(1,066,000

)

 

(208,000

)

 
Cash Flows From Financing Activities
Issuance of common stock upon exercise of options

 

-

 

 

46,000

 

Taxes paid on stock options exercised on a net basis

 

(70,000

)

 

(141,000

)

Repurchase of common stock

 

(962,000

)

 

-

 

Net cash used in financing activities

 

(1,032,000

)

 

(95,000

)

Net (decrease) increase in cash

 

(2,045,000

)

 

2,021,000

 

 
Cash And Cash Equivalents
Beginning of period

 

11,889,000

 

 

10,479,000

 

End of period

$

9,844,000

 

$

12,500,000

 

 

 


These press releases may also interest you

30 jun 2022
3M has entered into an agreement to sell its rights to the Neoplasttm and Neobuntm brands and related assets in Thailand and certain other Southeast Asia countries, including the manufacturing assets of its Ladlumkaew, Thailand, facility to Selic...

30 jun 2022
Rock Tech Lithium Inc. (WKN: A1XF0V) (the "Company" or "Rock Tech") is pleased to announce the latest assay results from the Company's ongoing drill program (the "Drill Program") at its 100%-owned Georgia Lake lithium project in the Thunder Bay...

30 jun 2022
The introduction of subscription services for STEM toys is expected to be a key trend of the Science, Technology, Engineering and Mathematics (STEM) Toys Market share growth. Many online retailers provide subscription services for STEM toys in...

30 jun 2022
Naturally Splendid Enterprises Ltd. ("Naturally Splendid", "NSE" or "the Company") announces its audited financial results for the year ended December 31, 2021. All amounts are in Canadian dollars and are prepared in...

30 jun 2022
In advance of the July 4th Independence Day weekend, the American Association of Kidney Patients (AAKP), the nation's largest independent kidney patient organization, released their annual summer reading list featuring articles by AAKP-affiliated...

30 jun 2022
K92 Mining Inc. ("K92" or the "Company") is pleased to announce the voting results of its 2022 annual general meeting ("AGM") of shareholders that was held today as a virtual event. All of the resolutions proposed at the meeting were duly passed. A...



News published on 10 may 2022 at 16:10 and distributed by: