Electromed, Inc. Announces Fiscal 2018 Fourth Quarter Financial Results
-- 14.8% year-over-year increase in home care revenue --
Q4 FY 2018 Highlights
- Net revenue increased 13.3% to
$8.2 million from$7.3 million during the three months endedJune 30, 2017 (“Q4 FY 2017”). Net revenue for the prior year comparable period included a favorable impact of$703,000 from a one-time item related to a settlement agreement withCenters for Medicare and Medicaid Services . - Gross profit rose 12.2% to
$6.7 million from$6.0 million in Q4 FY 2017. - Operating income grew 5.1% to
$1.6 million from$1.5 million in Q4 FY 2017. - Net income expanded 18.2% to
$1.1 million , or$0.13 per diluted share, from$946,000 , or$0.11 per diluted share, in Q4 FY 2017. - Cash flow from operating activities increased 48.1% to
$570,000 from$385,000 in Q4 FY 2017. - Field sales employees grew to 50 at the end of Q4 FY 2018 from 40 at the end of Q4 FY 2017.
“Last month, we announced the first independent study suggesting that HFCWO therapy with SmartVest significantly reduces severe exacerbations and hospitalizations, and may meaningfully slow the otherwise normal progression of non-cystic fibrosis bronchiectasis. A growing body of evidence, including this study, reinforces our optimism for expanding the market for HFCWO and gaining share in the large, underpenetrated bronchiectasis market. As always, our underlying mission is to improve quality-of-life and outcomes for a greater number of patients with compromised pulmonary function, while reducing overall healthcare utilization through SmartVest airway clearance therapy.”
Q4 FY 2018 Review
Net revenue increased 13.3% to
Gross profit increased 12.2% to
Operating expenses, which include selling, general and administrative (“SG&A”) as well as research and development (“R&D”) expenses, totaled
Operating income increased 5.1% to
Net income before income tax expense rose 7.6% to
Net income increased 18.2% to
Full Year FY 2018 Summary
For the twelve months ended
Financial Condition
Electromed’s balance sheet at
Conference Call
Management will host a conference call on
Interested parties may participate in the call by dialing:
- (877) 407-9753 (Domestic)
- (201) 493-6739 (International)
The conference call will also be accessible via the following link: http://www.investorcalendar.com/event/37302.
For those who cannot listen to the live broadcast, an online webcast replay will be available in the Investor Relations section of Electromed’s web site at: http://investors.smartvest.com/.
About
Cautionary Statements
Certain statements in this release constitute forward-looking statements as defined in the
Financial Tables Follow:
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Condensed Balance Sheets | ||||||
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Assets | ||||||
Current Assets | ||||||
Cash | $ | 7,455,844 | $ | 5,573,709 | ||
Accounts receivable (net of allowances for doubtful accounts of |
11,563,208 | 9,949,759 | ||||
Inventories | 2,360,693 | 2,559,485 | ||||
Prepaid expenses and other current assets | 832,202 | 393,319 | ||||
Total current assets | 22,211,947 | 18,476,272 | ||||
Property and equipment, net | 3,091,242 | 3,303,233 | ||||
Finite-life intangible assets, net | 649,103 | 721,276 | ||||
Other assets | 91,912 | 99,868 | ||||
Deferred income taxes | 594,000 | 460,000 | ||||
Total assets | $ | 26,638,204 | $ | 23,060,649 | ||
Liabilities and Shareholders’ Equity | ||||||
Current Liabilities | ||||||
Current maturities of long-term debt | $ | 1,101,043 | $ | 50,703 | ||
Accounts payable | 810,644 | 663,376 | ||||
Accrued compensation | 1,209,738 | 946,623 | ||||
Income taxes payable | 397,390 | 156,524 | ||||
Warranty reserve | 760,000 | 640,000 | ||||
Other accrued liabilities | 464,357 | 438,748 | ||||
Total current liabilities | 4,743,172 | 2,895,974 | ||||
Long-term debt, less current maturities and net of debt issuance costs | - | 1,097,125 | ||||
Total liabilities | 4,743,172 | 3,993,099 | ||||
Commitments and Contingencies | ||||||
Shareholders' Equity | ||||||
Common stock, |
82,887 | 82,302 | ||||
Additional paid-in capital | 14,953,103 | 14,028,602 | ||||
Retained earnings | 6,859,042 | 4,956,646 | ||||
Total shareholders’ equity | 21,895,032 | 19,067,550 | ||||
Total liabilities and shareholders’ equity | $ | 26,638,204 | $ | 23,060,649 | ||
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Condensed Statements of Operations | ||||||||||||||||||
For the Three Months Ended |
For the Twelve Months Ended |
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2018 | 2017 | 2018 | 2017 | |||||||||||||||
Net revenues | $ | 8,240,564 | $ | 7,273,901 | $ | 28,697,622 | $ | 25,861,144 | ||||||||||
Cost of revenues | 1,507,159 | 1,272,100 | 5,841,601 | 5,292,715 | ||||||||||||||
Gross profit | 6,733,405 | 6,001,801 | 22,856,021 | 20,568,429 | ||||||||||||||
Operating expenses | ||||||||||||||||||
Selling, general and administrative | 5,061,167 | 4,422,953 | 19,596,053 | 16,402,214 | ||||||||||||||
Research and development | 81,320 | 64,621 | 251,443 | 596,876 | ||||||||||||||
Total operating expenses | 5,142,487 | 4,487,574 | 19,847,496 | 16,999,090 | ||||||||||||||
Operating income | 1,590,918 | 1,514,227 | 3,008,525 | 3,569,339 | ||||||||||||||
Interest income (expense), net | 28,296 | (8,733) | 19,871 | (49,867) | ||||||||||||||
Net income before income taxes | 1,619,214 | 1,505,494 | 3,028,396 | 3,519,472 | ||||||||||||||
Income tax expense | 500,000 | 559,000 | 1,126,000 | 1,290,000 | ||||||||||||||
Net income | $ | 1,119,214 | $ | 946,494 | $ | 1,902,396 | $ | 2,229,472 | ||||||||||
Income per share: | ||||||||||||||||||
Basic | $ | 0.14 | $ | 0.12 | $ | 0.23 | $ | 0.27 | ||||||||||
Diluted | $ | 0.13 | $ | 0.11 | $ | 0.22 | $ | 0.26 | ||||||||||
Weighted-average common shares outstanding: | ||||||||||||||||||
Basic | 8,221,437 | 8,171,319 | 8,207,365 | 8,168,152 | ||||||||||||||
Diluted | 8,578,295 | 8,493,619 | 8,620,102 | 8,461,120 | ||||||||||||||
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Condensed Statements of Cash Flows | ||||||||
Twelve Months Ended |
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2018 | 2017 | |||||||
Cash Flows From Operating Activities | ||||||||
Net income | $ | 1,902,396 | $ | 2,229,472 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation | 676,426 | 636,709 | ||||||
Amortization of finite-life intangible assets | 113,601 | 118,418 | ||||||
Amortization of debt issuance costs | 6,351 | 13,067 | ||||||
Share-based compensation expense | 862,674 | 479,482 | ||||||
Deferred taxes | (134,000) | (117,000) | ||||||
Loss on disposal of property and equipment | 25,990 | 3,302 | ||||||
Loss on disposal of intangible assets | 4,122 | 132,724 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | (1,613,449) | (2,338,322) | ||||||
Inventories | 234,594 | (28,334) | ||||||
Prepaid expenses and other assets | (433,363) | 49,864 | ||||||
Income tax receivable | - | 192,685 | ||||||
Income tax payable | 240,866 | 156,524 | ||||||
Accounts payable and accrued liabilities | 555,992 | (337,470) | ||||||
Net cash provided by operating activities | 2,442,200 | 1,191,121 | ||||||
Cash Flows From Investing Activities | ||||||||
Expenditures for property and equipment | (526,227) | (618,763) | ||||||
Expenditures for finite-life intangible assets | (45,550) | (68,385) | ||||||
Net cash used in investing activities | (571,777) | (687,148) | ||||||
Cash Flows From Financing Activities | ||||||||
Principal payments on long-term debt including capital lease obligations | (50,700) | (48,747) | ||||||
Issuance of common stock upon exercise of options | 62,412 | - | ||||||
Payments of deferred financing fees | - | (4,872) | ||||||
Net cash provided by (used in) financing activities | 11,712 | (53,619) | ||||||
Net increase in cash | 1,882,135 | 450,354 | ||||||
Cash | ||||||||
Beginning of period | 5,573,709 | 5,123,355 | ||||||
End of period | $ | 7,455,844 | $ | 5,573,709 | ||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20180925006120/en/
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