Electromed, Inc. Announces Fiscal 2021 Third Quarter Financial Results
Electromed, Inc. (NYSE American: ELMD) reported its Q3 FY 2021 financial results, revealing a 0.5% increase in net revenue to $8.8 million, driven by a 4.2% rise in home care revenue. The gross profit percentage improved to 76.3% of net revenue. However, net income fell to $224,000 or $0.03 per diluted share, down from $653,000 or $0.07 in Q3 FY 2020, mainly due to increased investments in R&D and SG&A. Cash at March 31, 2021 stood at $12.5 million, supported by $834,000 in operating cash flow. Despite challenges from COVID-19, management expressed optimism for ongoing recovery.
- Net revenue grew 0.5% to $8.8 million, with a 4.2% increase in home care revenue to $8.2 million.
- Gross profit margin improved to 76.3%, up from 75.4% in Q3 FY 2020.
- Cash flow from operations for Q3 FY 2021 was $834,000, with $12.5 million cash on hand.
- Sequential revenue growth of 43.4% in the institutional segment, indicating recovery.
- Net income declined to $224,000 from $653,000 year-over-year, reflecting increased expenditures.
- Institutional revenue fell 27.3% to $443,000 due to COVID-19 impacts on hospital activity.
- Home care distributor revenue decreased 36.0% to $105,000.
- International revenue dropped 44.5% to $76,000.
Electromed, Inc. (“Electromed” or the “Company”) (NYSE American: ELMD), a leader in innovative airway clearance technologies, today announced its financial results for the three months ended March 31, 2021 (“Q3 FY 2021”).
Q3 FY 2021 Highlights
-
Net revenue increased
0.5% to$8.8 million , compared to$8.7 million during the three months ended March 31, 2020 (“Q3 FY 2020”), driven by a4.2% increase in home care revenue. -
Gross profit percentage increased to
76.3% of net revenue, compared to75.4% in Q3 FY 2020, primarily due to a higher mix of home care revenue and a favorable mix of Medicare within home care. -
Net income equaled
$224,000 , or$0.03 per diluted share, compared to$653,000 , or$0.07 per diluted share, in Q3 FY 2020, and reflects increased strategic investments in both R&D and SG&A. -
Cash as of March 31, 2021 was
$12.5 million , benefiting from$834,000 in operating cash flow in Q3 FY 2021.
Kathleen Skarvan, President and Chief Executive Officer of Electromed, commented, “Although this winter’s resurgence of new COVID-19 cases and hospitalizations dampened our home care revenue in January and February, we noted a sharp rebound in March, during which we achieved record monthly referrals and revenue. In March, we benefited from increased patient visits to clinics and greater access for our sales representatives as restrictions were further lifted and vaccines started to become more widely administered throughout the country. In our institutional segment, which had the greatest overall impact from the pandemic, we registered
Ms. Skarvan concluded, “While we continue to operate within the constraints of a pandemic, the ongoing nationwide deployment of vaccinations, the extension of the provisional waiver from the Centers for Medicare & Medicaid Services, and our strong operating performance in March gives us optimism that positive operating performance will continue in the fourth quarter. Even during these uncertain times, our solid cash flow generation capacity and strong balance sheet enable us to invest in Electromed’s future. We continue to make strategic investments in research and development, sales, marketing, and infrastructure to position Electromed for profitable long-term growth and to support our goal of enhancing patients’ quality of life one breath at a time with our differentiated SmartVest® Airway Clearance System.”
Q3 FY 2021 Review
Net revenue in Q3 FY 2021 increased
Gross profit in Q3 FY 2021 totaled
Selling, general and administrative (“SG&A”) expenses in Q3 FY 2021 increased
Research and development (“R&D”) expenses in Q3 FY 2021 totaled
Net income before income taxes in Q3 FY 2021 totaled
Net income was
Year-to-Date FY 2021 Summary
For the nine months ended March 31, 2021, net revenue grew
Financial Condition
The Company’s balance sheet at March 31, 2021 included cash of
Conference Call
Management will host a conference call on Tuesday, May 11, 2021 at 4:00 pm CT (5:00 pm ET) to discuss Q3 FY 2021 financial results and other matters.
Interested parties may participate in the call by dialing:
- (877) 407-9753 (Domestic)
- (201) 493-6739 (International)
The conference call also will be accessible via the following link: https://78449.themediaframe.com/dataconf/productusers/elctr/mediaframe/44645/indexl.html
For those who cannot listen to the live broadcast, an online webcast replay will be available in the Investor Relations section of the Company’s web site at: http://investors.smartvest.com/
About Electromed, Inc.
Electromed, Inc. manufactures, makes, 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 “believe,” “intend,” “may,” “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 Home Care 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; and the risks associated with our planned sales force expansion, 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 of 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.
Financial Tables Follow:
Electromed, Inc. Condensed Balance Sheets |
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March 31, 2021 |
June 30, 2020 |
|
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(Unaudited) |
|
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Assets |
|
|
|
Current Assets |
|
|
|
Cash |
|
|
|
Accounts receivable (net of allowances for doubtful accounts of |
16,236,661 |
12,940,677 |
|
Contract assets |
557,531 |
902,619 |
|
Inventories, net |
2,256,012 |
3,084,620 |
|
Prepaid expenses and other current assets |
483,399 |
353,318 |
|
Income tax receivable |
253,891 |
262,155 |
|
Total current assets |
32,288,182 |
28,022,539 |
|
Property and equipment, net |
3,526,935 |
3,788,469 |
|
Finite-life intangible assets, net |
602,430 |
598,389 |
|
Other assets |
100,016 |
80,166 |
|
Deferred income taxes |
653,000 |
755,000 |
|
Total assets |
|
|
|
Liabilities and Shareholders’ Equity |
|
|
|
Current Liabilities |
|
|
|
Current maturities of other long-term liabilities |
|
|
|
Accounts payable |
1,023,603 |
555,510 |
|
Accrued compensation |
2,273,415 |
1,404,497 |
|
Warranty reserve |
740,000 |
740,000 |
|
Other accrued liabilities |
160,551 |
214,045 |
|
Total current liabilities |
4,238,250 |
2,986,380 |
|
Other long-term liabilities |
59,702 |
8,868 |
|
Total liabilities |
4,297,952 |
2,995,248 |
|
Commitments and Contingencies |
|
|
|
Shareholders’ Equity |
|
|
|
Common stock, 8,637,420 and 8,567,834 shares issued and outstanding, respectively |
86,374 |
85,678 |
|
Additional paid-in capital |
17,140,274 |
16,480,134 |
|
Retained earnings |
15,645,963 |
13,683,503 |
|
Total shareholders’ equity |
32,872,611 |
30,249,315 |
|
Total liabilities and shareholders’ equity |
|
|
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Electromed, Inc. Condensed Statements of Operations (Unaudited) |
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Three Months Ended March 31, |
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Nine Months Ended March 31, |
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2021 |
2020 |
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2021 |
2020 |
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Net revenues |
$ |
8,786,972 |
$ |
8,743,897 |
|
|
$ |
26,287,217 |
$ |
25,593,337 |
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Cost of revenues |
2,086,120 |
2,150,347 |
|
5,912,900 |
5,981,931 |
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Gross profit |
6,700,852 |
6,593,550 |
|
20,374,317 |
19,611,406 |
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Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
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Selling, general and administrative |
|
6,050,666 |
|
5,288,485 |
|
|
|
16,489,871 |
|
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FAQ
What were Electromed's Q3 FY 2021 net revenue results?
Electromed reported net revenue of $8.8 million for Q3 FY 2021, up 0.5% from $8.7 million in Q3 FY 2020.
How much did Electromed earn per diluted share in Q3 FY 2021?
Electromed's net income per diluted share in Q3 FY 2021 was $0.03, compared to $0.07 in Q3 FY 2020.
What is the current cash position of Electromed?
As of March 31, 2021, Electromed reported cash of $12.5 million.
What were the main challenges faced by Electromed during Q3 FY 2021?
Electromed faced challenges from COVID-19, leading to decreased institutional and international revenue.
What positive trends did Electromed report for Q3 FY 2021?
Electromed noted a 43.4% sequential increase in institutional revenue and record monthly referrals in March 2021.
Electromed, Inc.
NYSE:ELMDELMD RankingsELMD Latest NewsELMD Stock Data
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Medical Devices
Electromedical & Electrotherapeutic Apparatus
United States of America
NEW PRAGUE
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