NEW YORK, May 12 /PRNewswire-FirstCall/ -- InfuSystem Holdings, Inc. , the leading provider of ambulatory infusion pumps and associated clinical services, today announced financial results and provided a business update for the first quarter of 2008.
Mr. Steve Watkins, chief executive officer, commented, “We are pleased with the results of our first full quarter of operations as a stand-alone public company, and have already begun to benefit from some of our early initiatives, as evidenced by an approximate 8 percent increase in revenues for the quarter, compared to results of InfuSystem, Inc. for the first quarter of last year, while under its prior ownership. Among of our first steps following the acquisition were adding key personnel; setting new quotas, incentive plans and training for the sales force; and beginning a rebranding and redesign of our marketing materials. We also continue to explore potential acquisition candidates that would complement our existing products and services, and benefit from our strong distribution across the U.S., which includes approximately 60% penetration of oncologist practices, and contracts with managed care organizations covering over 125 million managed care lives.”
“With those first steps in place we look forward to the next phase of our strategy which includes building the awareness of InfuSystem by educating the payors, physicians, and patients, all of whom stand to benefit from our ambulatory infusion pumps and associated clinical services. Specifically, ambulatory infusion of chemotherapy is advantageous to payors, including managed care organizations, because it is generally less expensive than homecare or hospitalization and may help lower the costs incurred to treat the side-effects that may accompany traditional bolus treatment. Ambulatory infusion also benefits the patients through improved efficacy of the drugs as well as greater patient comfort compared to traditional bolus treatment.”
“Protocols involving continuous infusion therapy are widely recognized as the standard of care for treatment of advanced or metastatic colorectal cancer (CRC). One of the primary focuses of our sales force is educating oncologists and nurses about the benefits of treating patients with CRC in the adjuvant setting, as well as treating patients with other cancers where continuous infusion protocols have been approved. In addition to the economic advantages to patients and payors, ambulatory infusion provides patients greater freedom and mobility than continuous infusion delivered in an in-patient setting. In the outpatient setting, there are over 1,500 facilities across the United States already using our services. We believe that expansion of continuous infusion chemotherapy regimens into additional tumor types will result in the opportunity to extend our services into additional markets at low-cost.”
“In addition to resuming our organic growth, we also generated very strong cash flow and now have over $6 million of cash and cash equivalents as of March 31, 2008. We achieved approximately $2 million of Adjusted EBITDA for the quarter, which excludes a $5.2 million gain on derivative financial instruments. We also incurred unusually high auditing, legal and other expenses related to the filing of our first post-acquisition 10-K. We expect these expenses to normalize heading into the second quarter, resulting in improved operating results going forward. At the same time, we expect our margins to improve as we drive top-line growth and leverage our existing infrastructure.”
Financial Results
Revenue for the first quarter ended March 31, 2008 was $8.5 million, versus $0 for the same period in 2007, which reflects the revenues recognized by InfuSystem Holdings, Inc. following the acquisition of InfuSystem, Inc. from I-Flow Corporation.
Operating income for the first quarter of 2008 was $521,000 versus an operating loss of ($1.2 million) for the same period in 2007. The increase in operating income for the first quarter of 2008 reflects revenue and operating expenses recorded for InfuSystem, Inc. following the acquisition. The Company also incurred unusually high auditing, legal and other expenses related to the Form 10-K filing during the first quarter, due to the fact this was the Company’s first annual report as an operating company, as well as the requirement to include in the Form 10-K certain pre-acquisition financial statements and footnotes of InfuSystem, Inc. (while under I-Flow ownership).
The net income for the first quarter of 2008 was $4.8 million, or $0.29 per diluted share, compared to net income of $1.8 million or $0.08 per diluted share, for the same period in 2007. The net income for the first quarter of 2008 included a $5.2 million gain on derivative financial instruments, compared to a $2.0 million gain for the first quarter of 2007.
Adjusted EBITDA for the first quarter ended March 31, 2008 was $2.0 million, as compared to an Adjusted EBITDA loss of approximately ($566,000) for the same period of 2007. The Company defines Adjusted EBITDA as earnings before interest, taxes, depreciation and amortization, and excludes both gain/loss on derivative financial instruments, as well as stock-based compensation. Adjusted EBITDA is not a measure of performance calculated in accordance with accounting principles generally accepted in the United States (“GAAP”), and should not be considered in isolation of, or as a substitute for, earnings as an indicator of operating performance, or cash flows from operating activities as a measure of liquidity. The Company believes the presentation of Adjusted EBITDA is relevant and useful by enhancing the readers’ ability to understand the Company’s operating performance. The Company’s management utilizes Adjusted EBITDA as a means to measure performance. The Company’s measurements of Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies. The table below reconciles Adjusted EBITDA, a non-GAAP measure, to net income for the three months ended March 31, 2008 and 2007.
About InfuSystem Holdings, Inc.
InfuSystem is the leading provider of ambulatory infusion pumps and associated clinical services for oncology practices and their patients in the U.S. These pumps allow for the gradual delivery of a drug over a period of days in the privacy of one’s home, compared to bolus infusion chemotherapy treatments that are given in a single high dose over a short period of time. Improved efficacy of the drugs, patient comfort, reimbursement to doctors for appropriate services and continuity of care all play a role in the growing trend toward this form of treatment. InfuSystem’s pumps are primarily used for colorectal cancer, but they have been approved for other forms of cancer, thereby greatly enhancing the market opportunity for InfuSystem.
Forward-Looking Statements
Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those predicted by such forward-looking statements. These risks and uncertainties include general economic conditions, as well as other risks detailed from time to time in InfuSystem’s publicly filed documents.
CONTACT: David K. Waldman or Klea K. Theoharis, both of Crescendo
Communications, LLC, +1-212-671-1020, for InfuSystem Holdings, Inc.
Web site: http://www.infusystem.com//
