InfuSystem Announces Operational and Financial Results for Fourth Quarter and Full Year 2022
InfuSystem Holdings, Inc. (NYSE American: INFU) reported record net revenues of $109.9 million for 2022, marking a 7% increase from 2021. The fourth quarter net revenues reached $28.8 million, a 9% year-over-year increase. Key segments include Integrated Therapy Services (ITS) with $68.9 million and Durable Medical Equipment (DME) at $41.0 million, growing 5% and 12% respectively. Adjusted EBITDA for 2022 was $20.7 million, down 14%. The company projects 2023 revenue growth of 8% to 10% with an Adjusted EBITDA margin over 19%. Management remains optimistic about strategic partnerships and growth in pain management services.
- Record net revenues of $109.9 million in 2022, a 7% increase from 2021.
- Fourth quarter net revenues of $28.8 million, a 9% increase year-over-year.
- Estimated 2023 revenue growth of 8% to 10%, approximately $118 million to $121 million.
- Successful growth in pain management business, increasing by 45% in the fourth quarter.
- Adjusted EBITDA decreased by 14% to $20.7 million in 2022.
- Gross margin fell to 56.9%, a decrease of 1.9% from the previous year.
- Net income dropped to less than $0.1 million for the fourth quarter, down from $0.4 million in the prior year.
Full Year 2022 vs. Full Year 2021:
Record Net Revenues:
ITS Revenue:
Adjusted EBITDA:
2023 Full Year Guidance - Revenue Growth
Fourth Quarter Overview:
-
Net revenues totaled
, an increase of$28.8 million 9% vs. prior year.-
ITS net revenue was
, an increase of$17.6 million 5% vs. prior year. -
DME Service net revenue was
, an increase of$11.2 million 15% vs. prior year.
-
ITS net revenue was
-
Gross profit was
, an increase of$16.1 million 5% vs. prior year. -
Gross margin was
55.8% , a decrease of2.0% vs. prior year. -
Net income of
, or$0.1 million per diluted share.$0.01 -
Adjusted earnings before interest, income taxes, depreciation, and amortization (“Adjusted EBITDA”) (non-GAAP) was
, a decrease of$5.5 million 16% vs. prior year.
Full Year Overview:
-
Net revenues totaled
, an increase of$109.9 million 7% vs. prior year.-
ITS net revenue was
, an increase of$68.9 million 5% vs. prior year. -
DME Services net revenue was
, an increase of$41.0 million 12% vs. prior year.
-
ITS net revenue was
-
Gross profit was
, an increase of$62.6 million 4% vs. prior year. -
Gross margin was
56.9% , a decrease of1.9% vs. prior year. -
Net income of less than
.$0.1 million -
Adjusted EBITDA was
, a decrease of$20.7 million 14% vs. prior year. -
Net cash provided by operations was
, a decrease of$17.5 million 4% vs. prior year.
Management Discussion
Chief Executive Officer of
“Our biomedical service business is gaining traction as we continue onboarding new devices for biomedical services at higher levels each month, with this generating a meaningful new revenue stream for
“Our Pain Management business within ITS, finished the year on a strong note with growth of
“Looking forward, we are estimating full-year 2023 revenue growth to be in the range of
2022 Fourth Quarter Financial Review
Net revenues for the quarter ended
ITS net revenue of
DME Services net revenue of
The biomedical services revenue included initial amounts of revenue from a new master services agreement with a leading global healthcare technology and diagnostic company that was signed in
Gross profit for the fourth quarter of 2022 of
ITS gross profit was
DME Services gross profit during the fourth quarter of 2022 was
Selling and marketing expenses for the fourth quarter of 2022 were
General and administrative (“G&A”) expenses for the fourth quarter of 2022 were
Net income for the fourth quarter of 2022 was
Adjusted EBITDA, a non-GAAP measure, for the fourth quarter of 2022 was
Balance sheet, cash flows and liquidity
During the year ended
On
Fiscal Year 2023 Guidance
The full year 2023 guidance reflects management’s current expectation for operational performance, given the current market conditions. This includes our best estimate of revenue and Adjusted EBITDA and does not include any material revenue from
Conference Call
The Company will conduct a conference call for all interested investors on
To participate in this call, please dial (833) 366-1127 or (412) 902-6773, or listen via a live webcast, which is available in the Investors section of the Company’s website at https://ir.infusystem.com/. A replay of the call will be available by visiting https://ir.infusystem.com/ for the next 90 days or by calling (877) 344-7529 or (412) 317-0088, replay access code 5035982, through
Non-GAAP Measures
This press release contains information prepared in conformity with GAAP as well as non-GAAP financial information. Non-GAAP financial measures presented in this press release include EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin and net debt. The Company believes that the non-GAAP financial measures presented in this press release provide useful information to the Company’s management, investors and other interested parties about the Company’s operating performance because they allow them to understand and compare the Company’s operating results during the current periods to the prior year periods in a more consistent manner. This non-GAAP information should be considered by the reader in addition to, but not instead of, the financial statements prepared in accordance with GAAP, and similarly titled non-GAAP measures may be calculated differently by other companies. The Company calculates those non-GAAP measures by adjusting for non-recurring or non-core items that are not part of the normal course of business. A reconciliation of those measures to the most directly comparable GAAP measures is provided in the accompanying schedule, titled "GAAP to Non-GAAP Reconciliation" below.
About
Forward-Looking Statements
The financial results in this press release reflect preliminary results, which are not final until the Company’s annual report on Form 10-K for the year ended
Additional information about
FINANCIAL TABLES FOLLOW
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) |
|||||||||||||||
|
Three Months Ended
|
|
Years Ended
|
||||||||||||
(in thousands, except share and per share data) |
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
||||||||
Net revenues |
$ |
28,830 |
|
|
$ |
26,519 |
|
|
$ |
109,914 |
|
|
$ |
102,382 |
|
Cost of revenues |
|
12,746 |
|
|
|
11,206 |
|
|
|
47,343 |
|
|
|
42,185 |
|
Gross profit |
|
16,084 |
|
|
|
15,313 |
|
|
|
62,571 |
|
|
|
60,197 |
|
|
|
|
|
|
|
|
|
||||||||
Selling, general and administrative expenses: |
|
|
|
|
|
|
|
||||||||
Provision for doubtful accounts |
|
171 |
|
|
|
176 |
|
|
|
87 |
|
|
|
77 |
|
Amortization of intangibles |
|
369 |
|
|
|
998 |
|
|
|
2,494 |
|
|
|
4,262 |
|
Selling and marketing |
|
2,963 |
|
|
|
2,813 |
|
|
|
12,259 |
|
|
|
10,777 |
|
General and administrative |
|
11,552 |
|
|
|
9,724 |
|
|
|
46,077 |
|
|
|
42,261 |
|
|
|
|
|
|
|
|
|
||||||||
Total selling, general and administrative |
|
15,055 |
|
|
|
13,711 |
|
|
|
60,917 |
|
|
|
57,377 |
|
|
|
|
|
|
|
|
|
||||||||
Operating income |
|
1,029 |
|
|
|
1,602 |
|
|
|
1,654 |
|
|
|
2,820 |
|
Other expense: |
|
|
|
|
|
|
|
||||||||
Interest expense |
|
(426 |
) |
|
|
(468 |
) |
|
|
(1,402 |
) |
|
|
(1,377 |
) |
Other expense |
|
(53 |
) |
|
|
(36 |
) |
|
|
(122 |
) |
|
|
(186 |
) |
|
|
|
|
|
|
|
|
||||||||
Income before income taxes |
|
550 |
|
|
|
1,098 |
|
|
|
130 |
|
|
|
1,257 |
|
(Provision for) benefit from income taxes |
|
(443 |
) |
|
|
(711 |
) |
|
|
(112 |
) |
|
|
163 |
|
Net income |
$ |
107 |
|
|
$ |
387 |
|
|
$ |
18 |
|
|
$ |
1,420 |
|
Net income per share |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
0.01 |
|
|
$ |
0.02 |
|
|
$ |
— |
|
|
$ |
0.07 |
|
Diluted |
$ |
0.01 |
|
|
$ |
0.02 |
|
|
$ |
— |
|
|
$ |
0.06 |
|
Weighted average shares outstanding: |
|
|
|
|
|
|
|
||||||||
Basic |
|
20,717,042 |
|
|
|
20,671,638 |
|
|
|
20,648,818 |
|
|
|
20,519,958 |
|
Diluted |
|
21,390,007 |
|
|
|
22,069,308 |
|
|
|
21,547,306 |
|
|
|
22,049,659 |
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS SEGMENT REPORTING (UNAUDITED) |
||||||||||||
|
|
Three Months Ended
|
|
Better/
|
||||||||
(in thousands) |
|
|
2022 |
|
|
|
2021 |
|
|
|||
|
|
|
|
|
|
|
||||||
Net revenues: |
|
|
|
|
|
|
||||||
ITS |
|
$ |
17,621 |
|
|
$ |
16,772 |
|
|
$ |
849 |
|
DME Services (inclusive of inter-segment revenues) |
|
|
12,822 |
|
|
|
11,016 |
|
|
|
1,806 |
|
Less: elimination of inter-segment revenues |
|
|
(1,613 |
) |
|
|
(1,269 |
) |
|
|
(344 |
) |
Total |
|
|
28,830 |
|
|
|
26,519 |
|
|
|
2,311 |
|
Gross profit (inclusive of certain inter-segment allocations) (a): |
|
|
|
|
|
|
||||||
ITS |
|
|
11,182 |
|
|
|
11,018 |
|
|
|
164 |
|
DME Services |
|
|
4,902 |
|
|
|
4,295 |
|
|
|
607 |
|
Total |
|
$ |
16,084 |
|
|
$ |
15,313 |
|
|
$ |
771 |
|
(a) Inter-segment allocations are for cleaning and repair services performed on medical equipment. |
|
|
Years Ended
|
|
Better/
|
||||||||
(in thousands) |
|
|
2022 |
|
|
|
2021 |
|
|
|||
|
|
|
|
|
|
|
||||||
Net revenues: |
|
|
|
|
|
|
||||||
ITS |
|
$ |
68,881 |
|
|
$ |
65,598 |
|
|
$ |
3,283 |
|
DME Services (inclusive of inter-segment revenues) |
|
|
47,506 |
|
|
|
42,537 |
|
|
|
4,969 |
|
Less: elimination of inter-segment revenues |
|
|
(6,473 |
) |
|
|
(5,753 |
) |
|
|
(720 |
) |
Total |
|
|
109,914 |
|
|
|
102,382 |
|
|
|
7,532 |
|
Gross profit (inclusive of certain inter-segment allocations) (a): |
|
|
|
|
|
|
||||||
ITS |
|
|
43,433 |
|
|
|
42,046 |
|
|
|
1,387 |
|
DME Services |
|
|
19,138 |
|
|
|
18,151 |
|
|
|
987 |
|
Total |
|
$ |
62,571 |
|
|
$ |
60,197 |
|
|
$ |
2,374 |
|
(a) Inter-segment allocations are for cleaning and repair services performed on medical equipment. |
GAAP TO NON-GAAP RECONCILIATION (UNAUDITED) |
||||||||||||||||
NET INCOME TO EBITDA, ADJUSTED EBITDA, NET INCOME MARGIN AND ADJUSTED EBITDA MARGIN: |
||||||||||||||||
|
|
Three Months Ended
|
|
Years Ended
|
||||||||||||
(in thousands) |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
||||||||
GAAP net income |
|
$ |
107 |
|
|
$ |
387 |
|
|
$ |
18 |
|
|
$ |
1,420 |
|
Adjustments: |
|
|
|
|
|
|
|
|
||||||||
Interest expense |
|
|
426 |
|
|
|
468 |
|
|
|
1,402 |
|
|
|
1,377 |
|
Income tax provision (benefit) |
|
|
443 |
|
|
|
711 |
|
|
|
112 |
|
|
|
(163 |
) |
Depreciation |
|
|
2,735 |
|
|
|
2,658 |
|
|
|
10,866 |
|
|
|
10,363 |
|
Amortization |
|
|
369 |
|
|
|
998 |
|
|
|
2,494 |
|
|
|
4,262 |
|
|
|
|
|
|
|
|
|
|
||||||||
Non-GAAP EBITDA |
|
$ |
4,080 |
|
|
$ |
5,222 |
|
|
$ |
14,892 |
|
|
$ |
17,259 |
|
|
|
|
|
|
|
|
|
|
||||||||
Stock compensation costs |
|
|
589 |
|
|
|
1,442 |
|
|
|
3,825 |
|
|
|
6,404 |
|
Medical equipment reserve (1) |
|
|
186 |
|
|
|
(288 |
) |
|
|
1,162 |
|
|
|
194 |
|
Acquisition costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
154 |
|
SOX readiness costs |
|
|
— |
|
|
|
113 |
|
|
|
110 |
|
|
|
199 |
|
Management reorganization/transition costs |
|
|
577 |
|
|
|
15 |
|
|
|
633 |
|
|
|
49 |
|
Certain other non-recurring costs |
|
|
41 |
|
|
|
11 |
|
|
|
123 |
|
|
|
(210 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Non-GAAP Adjusted EBITDA |
|
$ |
5,473 |
|
|
$ |
6,515 |
|
|
$ |
20,745 |
|
|
$ |
24,049 |
|
|
|
|
|
|
|
|
|
|
||||||||
GAAP Net Revenues |
|
$ |
28,830 |
|
|
$ |
26,519 |
|
|
$ |
109,914 |
|
|
$ |
102,382 |
|
Net Income Margin (2) |
|
|
0.4 |
% |
|
|
1.5 |
% |
|
|
— |
% |
|
|
1.4 |
% |
Non-GAAP Adjusted EBITDA Margin (3) |
|
|
19.0 |
% |
|
|
24.6 |
% |
|
|
18.9 |
% |
|
|
23.5 |
% |
(1) |
Amounts represent a non-cash expense (recovery) recorded to adjust reserve for missing medical equipment and is being added back (deducted) due to its similarity to depreciation. Amounts for the prior period, which were not previously included in the calculation of Adjusted EBITDA, have been included for comparability. |
(2) |
Net Income Margin is defined as GAAP Net Income as a percentage of GAAP Net Revenues. |
(3) |
Non-GAAP Adjusted EBITDA Margin is defined as Non-GAAP Adjusted EBITDA as a percentage of GAAP Net Revenues. |
CONSOLIDATED BALANCE SHEETS (UNAUDITED) |
||||||||
|
|
As of |
||||||
(in thousands, except par value and share data) |
|
|
|
|
||||
|
|
|
|
|
||||
ASSETS |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
165 |
|
|
$ |
186 |
|
Accounts receivable, net |
|
|
16,871 |
|
|
|
15,405 |
|
Inventories |
|
|
4,821 |
|
|
|
3,939 |
|
Other current assets |
|
|
2,922 |
|
|
|
2,535 |
|
|
|
|
|
|
||||
Total current assets |
|
|
24,779 |
|
|
|
22,065 |
|
Medical equipment for sale or rental |
|
|
2,790 |
|
|
|
1,742 |
|
Medical equipment in rental service, net of accumulated depreciation |
|
|
39,450 |
|
|
|
39,871 |
|
Property & equipment, net of accumulated depreciation |
|
|
4,385 |
|
|
|
4,523 |
|
|
|
|
3,710 |
|
|
|
3,710 |
|
Intangible assets, net |
|
|
8,436 |
|
|
|
10,930 |
|
Operating lease right of use assets |
|
|
4,168 |
|
|
|
4,241 |
|
Deferred income taxes |
|
|
9,625 |
|
|
|
10,033 |
|
Derivative financial instruments |
|
|
1,965 |
|
|
|
355 |
|
Other assets |
|
|
80 |
|
|
|
116 |
|
|
|
|
|
|
||||
Total assets |
|
$ |
99,388 |
|
|
$ |
97,586 |
|
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Accounts payable |
|
$ |
8,341 |
|
|
$ |
7,862 |
|
Current portion of long-term debt |
|
|
— |
|
|
|
349 |
|
Other current liabilities |
|
|
6,126 |
|
|
|
4,685 |
|
|
|
|
|
|
||||
Total current liabilities |
|
|
14,467 |
|
|
|
12,896 |
|
Long-term debt, net of current portion |
|
|
33,157 |
|
|
|
32,748 |
|
Operating lease liabilities, net of current portion |
|
|
3,761 |
|
|
|
3,670 |
|
|
|
|
|
|
||||
Total liabilities |
|
|
51,385 |
|
|
|
49,314 |
|
|
|
|
|
|
||||
Stockholders’ equity: |
|
|
|
|
||||
Preferred stock, |
|
|
— |
|
|
|
— |
|
Common stock, |
|
|
2 |
|
|
|
2 |
|
Additional paid-in capital |
|
|
105,856 |
|
|
|
101,905 |
|
Accumulated other comprehensive income |
|
|
1,489 |
|
|
|
268 |
|
Retained deficit |
|
|
(59,344 |
) |
|
|
(53,903 |
) |
|
|
|
|
|
||||
Total stockholders’ equity |
|
|
48,003 |
|
|
|
48,272 |
|
|
|
|
|
|
||||
Total liabilities and stockholders’ equity |
|
$ |
99,388 |
|
|
$ |
97,586 |
|
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) |
||||||||
|
|
Years Ended |
||||||
(in thousands) |
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
||||
OPERATING ACTIVITIES |
|
|
|
|
||||
Net income |
|
$ |
18 |
|
|
$ |
1,420 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
||||
Provision for doubtful accounts |
|
|
87 |
|
|
|
77 |
|
Depreciation |
|
|
10,866 |
|
|
|
10,363 |
|
Loss on disposal of and reserve adjustments for medical equipment |
|
|
1,933 |
|
|
|
1,029 |
|
Gain on sale of medical equipment |
|
|
(2,183 |
) |
|
|
(2,545 |
) |
Amortization of intangible assets |
|
|
2,494 |
|
|
|
4,262 |
|
Amortization of deferred debt issuance costs |
|
|
73 |
|
|
|
151 |
|
Stock-based compensation |
|
|
3,825 |
|
|
|
6,404 |
|
Deferred income taxes |
|
|
19 |
|
|
|
(153 |
) |
Changes in assets - (increase)/decrease: |
|
|
|
|
||||
Accounts receivable |
|
|
(1,153 |
) |
|
|
829 |
|
Inventories |
|
|
(882 |
) |
|
|
(864 |
) |
Other current assets |
|
|
(387 |
) |
|
|
(133 |
) |
Other assets |
|
|
(135 |
) |
|
|
(161 |
) |
Changes in liabilities - increase/(decrease): |
|
|
|
|
||||
Accounts payable and other liabilities |
|
|
2,942 |
|
|
|
(2,363 |
) |
NET CASH PROVIDED BY OPERATING ACTIVITIES |
|
|
17,517 |
|
|
|
18,316 |
|
|
|
|
|
|
||||
INVESTING ACTIVITIES |
|
|
|
|
||||
Acquisition of business |
|
|
— |
|
|
|
(7,976 |
) |
Purchase of medical equipment |
|
|
(14,094 |
) |
|
|
(15,676 |
) |
Purchase of property and equipment |
|
|
(982 |
) |
|
|
(980 |
) |
Proceeds from sale of medical equipment, property and equipment |
|
|
3,598 |
|
|
|
3,317 |
|
|
|
|
(11,478 |
) |
|
|
(21,315 |
) |
|
|
|
|
|
||||
FINANCING ACTIVITIES |
|
|
|
|
||||
Principal payments on long-term debt |
|
|
(42,035 |
) |
|
|
(81,660 |
) |
Cash proceeds from long-term debt |
|
|
42,022 |
|
|
|
76,191 |
|
Debt issuance costs |
|
|
— |
|
|
|
(386 |
) |
Cash payment of contingent consideration |
|
|
(750 |
) |
|
|
— |
|
Common stock repurchased as part of share repurchase program |
|
|
(5,459 |
) |
|
|
(560 |
) |
Common stock repurchased to satisfy statutory withholding on employee stock-based compensation plans |
|
|
(1,193 |
) |
|
|
(1,172 |
) |
Cash proceeds from stock plans |
|
|
1,355 |
|
|
|
1,124 |
|
|
|
|
(6,060 |
) |
|
|
(6,463 |
) |
|
|
|
|
|
||||
Net change in cash and cash equivalents |
|
|
(21 |
) |
|
|
(9,462 |
) |
Cash and cash equivalents, beginning of period |
|
|
186 |
|
|
|
9,648 |
|
Cash and cash equivalents, end of period |
|
$ |
165 |
|
|
$ |
186 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20230315005333/en/
602-889-9700
Source:
FAQ
What were InfuSystem's financial results for 2022?
What is InfuSystem's guidance for 2023?
How did InfuSystem's adjusted EBITDA perform in 2022?
What were InfuSystem's fourth quarter revenues?