Electromed, Inc. Announces Fiscal 2025 First Quarter Financial Results
Electromed delivers eighth consecutive quarter of year-over-year revenue and profit growth, while continuing to invest in strategic growth initiatives
Q1 FY 2025 Financial Highlights
-
Net revenue increased
19.0% to in Q1 FY 2025, from$14.7 million in the first quarter of the prior fiscal year.$12.3 million -
Gross margin was
78.3% of net revenues, compared to77.1% in the first quarter of the prior fiscal year. -
Operating income increased to
or$1.9 million 13.2% of revenue compared to or$0.1 million 1.2% of revenue in the first quarter of the prior fiscal year. -
Net income was
, or$1.5 million per diluted share, compared to$0.16 , or$0.2 million per diluted share in the first quarter of the prior fiscal year.$0.02 -
Share repurchases of Electromed stock totaled 262,756 at an average price of
per share, or an aggregate amount of approximately$17.26 against an authorization of$4.5 million .$5 million
“The Electromed team performed at a high level in the first quarter, generating strong results and getting fiscal 2025 off to an outstanding start,” said Jim Cunniff, President, and Chief Executive Officer. “This is particularly impressive given our excellent results in fiscal 2024, and demonstrates the team’s ability to grow profitably, enhancing shareholder value. Our direct sales force now totals 53 reps and we increased our total number of sales territories to 57 by the end of the first quarter of fiscal 2025. This highly accomplished team has been the catalyst for our growth. Additionally, we launched an exciting new marketing campaign, called Triple Down on Bronchiectasis, which highlights the vital role of airway clearance as a key component of a complete bronchiectasis treatment program, and the response has been overwhelmingly positive. Finally, to lead our various market development initiatives, we have hired Peter Horwich as our new VP of Marketing. It has been an exciting quarter, and I look forward to working towards another record-breaking year in fiscal 2025.”
Q1 FY 2025 Results
All amounts below are for the three months ended September 30, 2024 (“Q1 FY 2025”) and compare to the three months ended September 30, 2023 (“Q1 FY 2024”).
Net revenues grew
Revenue in our direct homecare business increased year-over-year by
Gross profit increased to
Selling, general and administrative expenses were
Operating income was
Net income was
As of September 30, 2024, Electromed had
Conference Call and Webcast Information
The conference call with members of Electromed management will be held at 5:00 p.m. Eastern Time on Tuesday, November 12, 2024.
Interested parties may participate in the call by dialing (844) 826-3033 (Domestic) or (412) 317-5185 (International).
The live conference call webcast will be accessible in the Investor Relations section of Electromed’s website and directly via the following link: https://url.us.m.mimecastprotect.com/s/7BVqCR6MPEIA8DR8fPijF15Pbr?domain=viavid.webcasts.com
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 10193708. Additionally, an online replay will be available for one year in the Investor Relations section of Electromed’s web site at: Events & Presentations | SmartVest
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
Electromed, Inc. |
|||||
Condensed Balance Sheets |
|||||
September 30, 2024 |
June 30, 2024 |
||||
(Unaudited) |
(Audited) |
||||
Assets |
|||||
Current Assets |
|||||
Cash and cash equivalents |
$ |
13,864,000 |
$ |
16,080,000 |
|
Accounts receivable (net of allowances for credit losses of |
|
22,366,000 |
|
23,333,000 |
|
Contract assets |
|
754,000 |
|
719,000 |
|
Inventories |
|
3,434,000 |
|
3,712,000 |
|
Prepaid expenses and other current assets |
|
592,000 |
|
329,000 |
|
Total current assets |
|
41,010,000 |
|
44,173,000 |
|
Property and equipment, net |
|
5,003,000 |
|
5,165,000 |
|
Finite-life intangible assets, net |
|
660,000 |
|
657,000 |
|
Other assets |
|
90,000 |
|
87,000 |
|
Deferred income taxes |
|
2,152,000 |
|
2,152,000 |
|
Total assets |
$ |
48,915,000 |
$ |
52,234,000 |
|
Liabilities and Shareholders' Equity |
|||||
Current Liabilities |
|||||
Accounts payable |
|
1,784,000 |
$ |
1,010,000 |
|
Accrued compensation |
|
2,150,000 |
|
3,893,000 |
|
Income tax payable |
|
188,000 |
|
277,000 |
|
Warranty reserve |
|
1,641,000 |
|
1,567,000 |
|
Other accrued liabilities |
|
1,656,000 |
|
930,000 |
|
Total current liabilities |
|
7,419,000 |
|
7,677,000 |
|
Other long-term liabilities |
|
8,000 |
|
12,000 |
|
Total liabilities |
|
7,427,000 |
|
7,689,000 |
|
Shareholders' Equity |
|||||
Common stock, |
|
85,000 |
|
87,000 |
|
Additional paid-in capital |
|
20,816,000 |
|
20,790,000 |
|
Retained earnings |
|
20,587,000 |
|
23,668,000 |
|
Total shareholders' equity |
|
41,488,000 |
|
44,545,000 |
|
Total liabilities and shareholders' equity |
$ |
48,915,000 |
$ |
52,234,000 |
|
Electromed, Inc. |
|||||
Condensed Statements of Operations |
|||||
Three Months Ended September 30 |
|||||
2024 |
2023 |
||||
(Unaudited) |
(Unaudited) |
||||
Net revenues |
$ |
14,668,000 |
$ |
12,324,000 |
|
Cost of revenues |
|
3,177,000 |
|
2,826,000 |
|
Gross profit |
|
11,491,000 |
|
9,498,000 |
|
Operating expenses |
|||||
Selling, general and administrative |
|
9,387,000 |
|
9,150,000 |
|
Research and development |
|
166,000 |
|
206,000 |
|
Total operating expenses |
|
9,553,000 |
|
9,356,000 |
|
Operating income |
|
1,938,000 |
|
142,000 |
|
Interest income, net |
|
195,000 |
|
77,000 |
|
Net income before income taxes |
|
2,133,000 |
|
219,000 |
|
Income tax expense (benefit) |
|
659,000 |
|
64,000 |
|
Net income |
$ |
1,474,000 |
$ |
155,000 |
|
Income per share: |
|||||
Basic |
$ |
0.17 |
$ |
0.02 |
|
Diluted |
$ |
0.16 |
$ |
0.02 |
|
Weighted-average common shares outstanding: |
|||||
Basic |
|
8,564,489 |
|
8,537,388 |
|
Diluted |
|
8,980,714 |
|
8,782,824 |
|
Electromed, Inc. |
|||||||
Condensed Statements of Cash Flows |
|||||||
Three Months Ended September 30, |
|||||||
2024 |
2023 |
||||||
|
(Unaudited) |
|
(Unaudited) |
||||
Cash Flows from Operating Activities |
|||||||
Net income |
$ |
1,474,000 |
|
$ |
155,000 |
|
|
Adjustments to reconcile net income to net cash provided by (used for) operating activities: |
|||||||
Depreciation |
|
202,000 |
|
|
202,000 |
|
|
Amortization of finite-life intangible assets |
|
18,000 |
|
|
12,000 |
|
|
Share-based compensation expense |
|
697,000 |
|
|
371,000 |
|
|
Changes in operating assets and liabilities: |
|||||||
Accounts receivable |
|
967,000 |
|
|
675,000 |
|
|
Contract assets |
|
(35,000 |
) |
|
(57,000 |
) |
|
Inventories |
|
278,000 |
|
|
(240,000 |
) |
|
Prepaid expenses and other assets |
|
(266,000 |
) |
|
901,000 |
|
|
Income tax payable, net |
|
(89,000 |
) |
|
(226,000 |
) |
|
Accounts payable and accrued liabilities |
|
806,000 |
|
|
(863,000 |
) |
|
Accrued compensation |
|
(1,743,000 |
) |
|
(1,174,000 |
) |
|
Net cash provided by (used for) operating activities |
|
2,309,000 |
|
|
(244,000 |
) |
|
Cash Flows from Investing Activities |
|||||||
Expenditures for property and equipment |
|
(37,000 |
) |
|
(109,000 |
) |
|
Expenditures for finite-life intangible assets |
|
(21,000 |
) |
|
(24,000 |
) |
|
Net cash used for investing activities |
|
(58,000 |
) |
|
(133,000 |
) |
|
Cash Flows from Financing Activities |
|||||||
Issuance of common stock upon exercise of options |
|
84,000 |
|
|
29,000 |
|
|
Taxes paid on net share settlement of stock awards |
|
(15,000 |
) |
|
- |
|
|
Repurchase of common stock |
|
(4,536,000 |
) |
|
- |
|
|
Net cash (used for) provided by financing activities |
|
(4,467,000 |
) |
|
29,000 |
|
|
Net decrease in cash |
|
(2,216,000 |
) |
|
(348,000 |
) |
|
Cash And Cash Equivalents |
|||||||
Beginning of period |
|
16,080,000 |
|
|
7,372,000 |
|
|
End of period |
$ |
13,864,000 |
|
$ |
7,024,000 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241112795106/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.