Electromed, Inc. Announces Fiscal 2023 Fourth Quarter and Full Year Financial Results
- Record annual revenue
- Q4 revenue growth of 21%
- FY 2023 revenue increased 15%
- Operating income increased 35%
- Net income increased to $3.2 million
- None.
--Record Annual Revenue--
-- Fourth Quarter Revenue Increased
Q4 FY 2023 Financial Highlights
-
Net revenue increased
21% to a record in Q4 FY 2023, from$13.6 million in Q4 of the prior year.$11.3 million -
Operating income totaled
in Q4 FY 2023, compared to$1.5 million in Q4 FY 2022.$0.5 million -
Net income was
for the quarter, or$1.0 million per diluted share, compared to$0.12 , or$0.4 million per diluted share, in Q4 FY 2022.$0.04 -
Cash as of June 30, 2023, was
.$7.4 million
FY 2023 Financial Highlights
-
Net revenue increased
15% year over year to , from$48.1 million , during the fiscal year ended June 30, 2023 (“FY 2023”).$41.7 million -
Operating income totaled
, a$4.0 million 35% increase compared to in FY 2022.$3.0 million -
Net income totaled
, or$3.2 million per diluted share, compared to$0.36 , or$2.3 million per diluted share, in FY 2022.$0.26
“Fiscal year 2023 was pivotal for Electromed,” said Jim Cunniff, President and Chief Executive Officer. “The team delivered exceptional results, including record revenues of
Fiscal 2024 Strategic Priorities
Mr. Cunniff continued, “As I step into the role of President and Chief Executive Officer, I am grateful for the solid foundation created by Kathleen Skarvan, former President and Chief Executive Officer, and current Board Chair. Looking into Fiscal Year 2024, we will continue to execute against Electromed’s four strategic pillars: continued thoughtful sales force expansion; direct to consumer and direct to physician marketing; infrastructure to support anticipated sales growth which includes operational and manufacturing excellence; and finally, we will continue to add to the body of clinical evidence to further support HFCWO therapy as an efficacious therapy for bronchiectasis. We believe that bronchiectasis is under-recognized and under-diagnosed, but we believe this is changing and we are poised to capture increased diagnoses and subsequent prescriptions. I am confident that our continued attention to these strategic pillars will accelerate topline growth, improve our operating margin, and in turn increase shareholder value.”
Q4 FY 2023 Review
Net revenue in the fourth quarter of the Company’s fiscal year ending June 30, 2023 (“fiscal 2023”) increased
Distributor revenue decreased
Gross profit in the fourth quarter of fiscal 2023 increased to
Operating income totaled
Net income for the fourth quarter of fiscal 2023 was
FY 2023 Summary
Net revenue for the full year was
The CMS waiver benefited the non-commercial Medicare portion of our home care revenue by increasing the number of referrals and the approval percentage for previously non-covered diagnoses. We believe that our ongoing sales team execution, along with the expected return to pre-COVID-19 levels of patient face-to-face engagement with physicians and clinic access for our sales team mitigated the Q4 homecare revenue impact of the CMS waiver expiration on May 11, 2023.
Institutional revenue increased by
Home care distributor revenue increased by
International revenue decreased by
Gross profit increased to
Selling, general and administrative (“SG&A”) expenses were
R&D expenses decreased by
Net income for fiscal 2023 was
As of June 30, 2023 Electromed had
Conference Call
Company management will host a conference call on August 22 at 5:00 p.m. Eastern Time to discuss the results.
Interested parties may participate in the call by dialing (877) 407-0789 (Domestic) or (201) 689-8562 (International). The live conference call webcast will be accessible in the Investor Relations section of Electromed’s web site and directly via the following link: https://viavid.webcasts.com/starthere.jsp?ei=1625050&tp_key=e81a566324
For those who cannot listen to the live broadcast, a replay will be available by dialing (844) 512-2921 (Domestic) or (412) 317-6671 (International) and referencing the replay pin number 13740145. Additionally, an online replay will be available in the Investor Relations section of Electromed’s web site at: http://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. It is headquartered in
Cautionary Statements
Certain statements in this press release constitute forward-looking statements as defined in the
Source: Electromed, Inc.
Electromed, Inc. |
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Condensed Balance Sheets |
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June 30, 2023 |
June 30, 2022 |
|
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Assets |
|
|
|||||||
Current Assets |
|
|
|
||||||
Cash and cash equivalents |
$ |
7,372,000 |
$ |
8,153,000 |
|
||||
Accounts receivable (net of allowances for doubtful accounts of |
|
24,130,000 |
|
21,052,000 |
|
||||
Contract assets |
|
487,000 |
|
286,000 |
|
||||
Inventories |
|
4,221,000 |
|
3,178,000 |
|
||||
Prepaid expenses and other current assets |
|
1,577,000 |
|
1,870,000 |
|
||||
Total current assets |
|
37,787,000 |
|
34,539,000 |
|
||||
Property and equipment, net |
|
5,672,000 |
|
4,568,000 |
|
||||
Finite-life intangible assets, net |
|
605,000 |
|
599,000 |
|
||||
Other assets |
|
161,000 |
|
120,000 |
|
||||
Deferred income taxes |
|
1,581,000 |
|
1,538,000 |
|
||||
Total assets |
$ |
45,806,000 |
$ |
41,364,000 |
|
||||
|
|||||||||
Liabilities and Shareholders' Equity |
|
|
|
||||||
Current Liabilities |
|
|
|
||||||
Accounts payable |
$ |
1,372,000 |
$ |
1,261,000 |
|
||||
Accrued compensation |
|
3,018,000 |
|
2,742,000 |
|
||||
Income tax payable |
|
336,000 |
|
51,000 |
|
||||
Warranty reserve |
|
1,378,000 |
|
1,256,000 |
|
||||
Other accrued liabilities |
|
1,949,000 |
|
1,840,000 |
|
||||
Total current liabilities |
|
8,053,000 |
|
7,150,000 |
|
||||
Other long-term liabilities |
|
86,000 |
|
41,000 |
|
|
|||
Total liabilities |
|
8,139,000 |
|
7,191,000 |
|
||||
|
|
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Commitments and Contingencies |
|
|
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|
|
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Shareholders' Equity |
|
|
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Common stock, |
|
|
|||||||
8,555,238 and 8,475,438 shares issued and outstanding, respectively |
|
86,000 |
|
85,000 |
|
||||
Additional paid-in capital |
|
18,788,000 |
|
18,308,000 |
|
||||
Retained earnings |
|
18,793,000 |
|
15,780,000 |
|
||||
Total shareholders' equity |
|
37,667,000 |
|
34,173,000 |
|
||||
Total liabilities and shareholders' equity |
$ |
45,806,000 |
$ |
41,364,000 |
|
Electromed, Inc. |
|||||||||||||
Condensed Statement of Operations |
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Three Months Ended
|
Twelve Months Ended
|
||||||||||||
2023 |
2022 |
2023 |
2022 |
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(Unaudited) |
(Unaudited) |
||||||||||||
Net revenues |
$ |
13,612,000 |
$ |
11,268,000 |
$ |
48,067,000 |
$ |
41,659,000 |
|||||
Cost of revenues |
|
3,162,000 |
|
3,152,000 |
|
11,548,000 |
|
10,217,000 |
|||||
Gross profit |
|
10,450,000 |
|
|
8,116,000 |
|
36,519,000 |
|
|
31,442,000 |
|||
Operating expenses |
|||||||||||||
Selling, general and administrative |
|
8,658,000 |
|
7,309,000 |
|
31,595,000 |
|
27,114,000 |
|||||
Research and development |
|
298,000 |
|
315,000 |
|
916,000 |
|
1,356,000 |
|||||
Total operating expenses |
|
8,956,000 |
|
7,624,000 |
|
32,511,000 |
|
28,470,000 |
|||||
Operating income |
|
1,494,000 |
|
492,000 |
|
4,008,000 |
|
2,972,000 |
|||||
Interest income (expense), net |
|
41,000 |
|
5,000 |
|
|
78,000 |
|
25,000 |
||||
Net income before income taxes |
|
1,535,000 |
|
|
497,000 |
|
4,086,000 |
|
|
2,997,000 |
|||
Income tax expense |
|
502,000 |
|
116,000 |
|
|
920,000 |
|
692,000 |
||||
Net income |
$ |
1,033,000 |
|
$ |
381,000 |
$ |
3,166,000 |
|
$ |
2,305,000 |
|||
|
|
|
|
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Income per share: |
|||||||||||||
Basic |
$ |
0.12 |
$ |
0.05 |
$ |
0.37 |
$ |
0.27 |
|||||
Diluted |
$ |
0.12 |
$ |
0.04 |
$ |
0.36 |
$ |
0.26 |
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Weighted-average common shares outstanding: |
|||||||||||||
Basic |
|
8,511,632 |
|
8,427,404 |
|
8,463,684 |
|
8,471,320 |
|||||
Diluted |
|
8,723,700 |
|
8,735,154 |
|
8,700,833 |
|
8,768,703 |
Electromed, Inc. |
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Condensed Statements of Cash Flows |
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For the Years Ended June 30, |
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2023 |
2022 |
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Cash Flows From Operating Activities |
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Net income |
$ |
3,166,000 |
|
$ |
2,305,000 |
|
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Adjustments to reconcile net income to net cash provided by (used in) operating activities: |
|||||||||||
Depreciation |
|
550,000 |
|
|
503,000 |
|
|||||
Amortization of finite-life intangible assets |
|
63,000 |
|
|
125,000 |
|
|||||
Share-based compensation expense |
|
708,000 |
|
|
976,000 |
|
|||||
Deferred income taxes |
|
(43,000 |
) |
|
(489,000 |
) |
|||||
Changes in operating assets and liabilities: |
|||||||||||
Accounts receivable |
|
(3,078,000 |
) |
|
(4,020,000 |
) |
|||||
Contract assets |
|
(201,000 |
) |
|
107,000 |
|
|||||
Inventories |
|
(1,033,000 |
) |
|
(1,072,000 |
) |
|||||
Prepaid expenses and other current assets |
|
202,000 |
|
|
(1,322,000 |
) |
|||||
Income tax receivable |
|
285,000 |
|
|
(237,000 |
) |
|||||
Accounts payable and accrued liabilities |
|
420,000 |
|
|
2,170,000 |
|
|||||
Accrued compensation |
|
276,000 |
|
|
268,000 |
|
|||||
Net cash provided by (used in) operating activities |
|
1,315,000 |
|
|
(686,000 |
) |
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Cash Flows From Investing Activities |
|||||||||||
Investment in property and equipment |
|
(1,648,000 |
) |
|
(1,425,000 |
) |
|||||
Investment in finite-life intangible assets |
|
(68,000 |
) |
|
(100,000 |
) |
|||||
Net cash used in investing activities |
|
(1,716,000 |
) |
|
(1,525,000 |
) |
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Cash Flows From Financing Activities |
|||||||||||
Issuance of common stock upon exercise of options |
|
83,000 |
|
|
- |
|
|||||
Taxes paid on stock options exercised on a net basis |
|
(310,000 |
) |
|
(77,000 |
) |
|||||
Repurchase of common stock |
|
(153,000 |
) |
|
(1,448,000 |
) |
|||||
Net cash used in financing activities |
|
(380,000 |
) |
|
(1,525,000 |
) |
|||||
Net (decrease) increase in cash |
|
(781,000 |
) |
|
(3,736,000 |
) |
|||||
Cash And Cash Equivalents |
|||||||||||
Beginning of period |
|
8,153,000 |
|
|
11,889,000 |
|
|||||
End of period |
$ |
7,372,000 |
|
$ |
8,153,000 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20230822410095/en/
Brad Nagel, Chief Financial Officer
(952) 758-9299
investorrelations@electromed.com
Mike Cavanaugh, Investor Relations
ICR Westwicke
(617) 877-9641
mike.cavanaugh@westwicke.com
Source: Electromed, Inc.