Electromed, Inc. Announces Record Financial Performance in Fiscal 2024 Second Quarter
Growth initiatives drive record revenue, improve margins and enhance operational efficiency
Q2 FY 2024 Financial Highlights
-
Net revenue increased
17% to a record in Q2 FY 2024, from$13.7 million in the second quarter of the prior fiscal year.$11.7 million -
Gross margins were
77% of revenue, compared to74% in the second quarter of the prior fiscal year. -
Operating income was a record
or$2,263,000 16.5% of revenue, compared with or$1,274,000 10.1% of revenue in the second quarter of the prior fiscal year. -
Net income was a record
for the quarter, or$1,674,000 per diluted share, compared to$0.19 , or$977,000 per diluted share in the second quarter of the prior fiscal year.$0.11 -
Cash as of December 31, 2023, was
, an increase of$10.4 million compared to cash as of June 30, 2023.$3.1 million
“I am thrilled to announce another record revenue quarter for Electromed,” said Jim Cunniff, President and Chief Executive Officer. “The Company's consistent growth strategy focusing on developing best-in-class products, exemplary customer service and disciplined commercial expansion is generating positive results. We see these investments paying off through continued revenue growth and increased profitability. The Electromed team and I remain focused on serving our customers and promoting our state-of-the-art airway clearance technology, Smartvest Clearway, to drive continued market penetration. We are moving from strength to strength, and we look forward to continued success in the second half of fiscal year 2024.”
Q2 FY 2024 Results
Net revenue for Q2 FY 2024 grew
Revenue in our direct homecare business increased year-over-year by
Gross profit increased to
Selling, general and administrative (“SG&A”) expenses were
Operating income for the quarter was a record
Net income for Q2 FY 2024 was a record
As of December 31, 2023, 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, February 13, 2024.
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 website and directly via the following link: https://viavid.webcasts.com/starthere.jsp?ei=1650986&tp_key=12e0064318
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 13743606. Additionally, an online replay will be available in the Investor Relations section of Electromed’s web site at: https://investors.smartvest.com/events-and-presentations/default.aspx
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 |
||||||||
December 31,
|
June 30,
|
|||||||
(Unaudited) |
(Audited) |
|||||||
Assets |
||||||||
Current Assets |
||||||||
Cash and cash equivalents |
$ |
10,434,000 |
$ |
7,372,000 |
||||
Accounts receivable (net of allowances for doubtful accounts of |
|
22,988,000 |
|
24,130,000 |
||||
Contract assets |
|
574,000 |
|
487,000 |
||||
Inventories |
|
4,760,000 |
|
4,221,000 |
||||
Prepaid expenses and other current assets |
|
509,000 |
|
1,577,000 |
||||
Total current assets |
|
39,265,000 |
|
37,787,000 |
||||
Property and equipment, net |
|
5,377,000 |
|
5,672,000 |
||||
Finite-life intangible assets, net |
|
616,000 |
|
605,000 |
||||
Other assets |
|
125,000 |
|
161,000 |
||||
Deferred income taxes |
|
1,581,000 |
|
1,581,000 |
||||
Total assets |
$ |
46,964,000 |
$ |
45,806,000 |
||||
Liabilities and Shareholders' Equity |
||||||||
Current Liabilities |
||||||||
Accounts payable |
|
1,041,000 |
|
1,372,000 |
||||
Accrued compensation |
|
2,806,000 |
|
3,018,000 |
||||
Income tax payable |
|
253,000 |
|
336,000 |
||||
Warranty reserve |
|
1,483,000 |
|
1,378,000 |
||||
Other accrued liabilities |
|
990,000 |
|
1,949,000 |
||||
Total current liabilities |
|
6,573,000 |
|
8,053,000 |
||||
Other long-term liabilities |
|
49,000 |
|
86,000 |
||||
Total liabilities |
|
6,622,000 |
|
8,139,000 |
||||
Commitments and Contingencies |
||||||||
Shareholders' Equity |
||||||||
Common stock, |
||||||||
8,602,677 and 8,555,238 shares issued and outstanding, as of December 31, 2023 and June 30, 2023, respectively |
|
86,000 |
|
86,000 |
||||
Additional paid-in capital |
|
19,634,000 |
|
18,788,000 |
||||
Retained earnings |
|
20,622,000 |
|
18,793,000 |
||||
Total shareholders' equity |
|
40,342,000 |
|
37,667,000 |
||||
Total liabilities and shareholders' equity |
$ |
46,964,000 |
$ |
45,806,000 |
Electromed, Inc. |
||||||||||||||
Condensed Statements of Operations |
||||||||||||||
Three Months Ended |
Six Months Ended |
|||||||||||||
December 31, |
December 31, |
|||||||||||||
2023 |
2022 |
2023 |
2022 |
|||||||||||
Net revenues |
$ |
13,689,000 |
$ |
11,729,000 |
$ |
26,013,000 |
$ |
22,387,000 |
||||||
Cost of revenues |
|
3,144,000 |
|
3,047,000 |
|
5,970,000 |
|
5,374,000 |
||||||
Gross profit |
|
10,545,000 |
|
8,682,000 |
|
20,043,000 |
|
17,013,000 |
||||||
Operating expenses |
||||||||||||||
Selling, general and administrative |
|
8,175,000 |
|
7,254,000 |
|
17,325,000 |
|
15,243,000 |
||||||
Research and development |
|
107,000 |
|
154,000 |
|
313,000 |
|
452,000 |
||||||
Total operating expenses |
|
8,282,000 |
|
7,408,000 |
|
17,638,000 |
|
15,695,000 |
||||||
Operating income |
|
2,263,000 |
|
1,274,000 |
|
2,405,000 |
|
1,318,000 |
||||||
Interest income, net |
|
96,000 |
|
7,000 |
|
173,000 |
|
11,000 |
||||||
Net income before income taxes |
|
2,359,000 |
|
1,281,000 |
|
2,578,000 |
|
1,329,000 |
||||||
Income tax expense |
|
685,000 |
|
304,000 |
|
749,000 |
|
271,000 |
||||||
Net income |
$ |
1,674,000 |
$ |
977,000 |
$ |
1,829,000 |
$ |
1,058,000 |
||||||
|
|
|
|
|||||||||||
Income per share: |
||||||||||||||
Basic |
$ |
0.20 |
$ |
0.12 |
$ |
0.21 |
$ |
0.13 |
||||||
Diluted |
$ |
0.19 |
$ |
0.11 |
$ |
0.21 |
$ |
0.12 |
||||||
Weighted-average common shares outstanding: |
||||||||||||||
Basic |
|
8,545,120 |
|
8,442,939 |
|
8,541,254 |
|
8,442,684 |
||||||
Diluted |
|
8,800,172 |
|
8,684,352 |
|
8,791,519 |
|
8,685,184 |
Electromed, Inc. |
||||||||||||
Condensed Statements of Cash Flows |
||||||||||||
Six Months Ended December 31, |
||||||||||||
2023 |
2022 |
|||||||||||
|
|
(Unaudited) |
|
(Unaudited) |
||||||||
Cash Flows From Operating Activities |
||||||||||||
Net income |
$ |
1,829,000 |
|
$ |
1,058,000 |
|
||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: |
||||||||||||
Depreciation |
|
398,000 |
|
|
272,000 |
|
||||||
Amortization of finite-life intangible assets |
|
25,000 |
|
|
47,000 |
|
||||||
Share-based compensation expense |
|
791,000 |
|
|
316,000 |
|
||||||
Deferred income taxes |
|
- |
|
|
10,000 |
|
||||||
Changes in operating assets and liabilities: |
||||||||||||
Accounts receivable |
|
1,142,000 |
|
|
(503,000 |
) |
||||||
Contract assets |
|
(87,000 |
) |
|
(221,000 |
) |
||||||
Inventories |
|
(509,000 |
) |
|
(321,000 |
) |
||||||
Prepaid expenses and other current assets |
|
1,104,000 |
|
|
176,000 |
|
||||||
Income tax payable, net |
|
(83,000 |
) |
|
79,000 |
|
||||||
Accounts payable and accrued liabilities |
|
(1,171,000 |
) |
|
(711,000 |
) |
||||||
Accrued compensation |
|
(212,000 |
) |
|
(532,000 |
) |
||||||
Net cash provided by (used in) operating activities |
|
3,227,000 |
|
|
(330,000 |
) |
||||||
Cash Flows From Investing Activities |
||||||||||||
Expenditures for property and equipment |
|
(180,000 |
) |
|
(687,000 |
) |
||||||
Expenditures for finite-life intangible assets |
|
(40,000 |
) |
|
(30,000 |
) |
||||||
Net cash used in investing activities |
|
(220,000 |
) |
|
(717,000 |
) |
||||||
Cash Flows From Financing Activities |
||||||||||||
Issuance of common stock upon exercise of options |
|
55,000 |
|
|
16,000 |
|
||||||
Taxes paid on net share settlement of stock option exercises |
|
- |
|
|
(60,000 |
) |
||||||
Repurchase of common stock |
|
- |
|
|
(153,000 |
) |
||||||
Net cash provided by (used in) financing activities |
|
55,000 |
|
|
(197,000 |
) |
||||||
Net decrease in cash |
|
3,062,000 |
|
|
(1,244,000 |
) |
||||||
Cash And Cash Equivalents |
||||||||||||
Beginning of period |
|
7,372,000 |
|
|
8,153,000 |
|
||||||
End of period |
$ |
10,434,000 |
|
$ |
6,909,000 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240213378340/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.