MADISON HEIGHTS, Mich., May 5 /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 ended March 31, 2009.
Mr. Steve Watkins, chief executive officer, commented, “We achieved $9.2 million of revenue during the first quarter of 2009, despite a nationwide shortage of Leucovorin, a compound frequently used in association with ambulatory pump chemotherapy, which has since been resolved. At the same time, we increased gross margins by 560 basis points and continue to gain operating leverage as we held our costs in line. As a result, we generated $2.9 million of adjusted EBITDA, a 45% increase compared to the first quarter of 2008. This contributed to the Company’s continued strong operating cash flow and ample cash reserves, allowing us to improve the balance sheet by aggressively paying down debt. Shortly following the first quarter, we made a $5.3 million payment on our term loan, resulting in the Company having lowered its term loan balance by over $6.1 million year-to-date.”
Mr. Watkins concluded, “We remain encouraged by the near- and long-term outlook for the ambulatory infusion services market. Drug companies are incorporating continuous infusion as part of their drug treatment regimens and promoting these to oncologists. The American Cancer Society estimated that there were about 148,810 new cases of colorectal cancer in 2008 in the United States. Moreover, the combined benefits to the patient, physician and insurance provider support the expanded use of ambulatory infusion pumps to administer chemotherapy beyond stage III colorectal cancer, including esophageal, head and neck, gastric and other cancers. In order to best capitalize on this market opportunity, we continue to enhance our sales organization, including the recent addition of Bryan Russo as chief commercial officer. We look forward to his contributions as we focus on accelerating and deepening our penetration of oncology practices nationwide. Looking ahead, we anticipate continued organic revenue growth, greater operational efficiencies, and continued strong cash flow to allow for paying down additional debt in 2009.”
Financial Results
Revenue for the first quarter ended March, 31 2009 was $9.2 million, an 8.2% improvement compared to $8.5 million for the same period in 2008. The increase in revenue was primarily due to obtaining business at new customer facilities, increased reimbursement, as well as improved collection efficiencies. Operating income for the first quarter of 2009 was $1.3 million versus operating income of $521,000 for the same period in 2008. The increase in operating income for the first quarter of 2009 was due, in part, to increased sales and lower product and supply costs, which were partially offset by an increase in selling and marketing expenses.
The net loss for the first quarter of 2009 was ($2.5 million), or $(0.14) per diluted share, compared to net income of $4.8 million or $0.29 per diluted share, for the same period in 2008. The net income for the first quarter of 2009 included a ($2.6 million) loss on derivative financial instruments, which was predominantly attributable to the increase in the publicly traded value of the Company’s warrants during the quarter, compared to a $5.2 million gain for the first quarter of 2008.
Adjusted EBITDA for the first quarter ended March 31, 2009 was $2.9 million, compared to $2.0 million for the same period in 2008. The Company defines Adjusted EBITDA as earnings before interest, taxes, depreciation and amortization, and excludes gain (loss) on derivative financial instruments and stock-based compensation. Adjusted EBITDA is not a measure of performance calculated in accordance with generally accepted accounting principles in the United States (“GAAP”). The Company believes the presentation of Adjusted EBITDA is a relevant and useful measure to assist a reader’s ability to understand the Company’s operating performance. The Company’s management likewise utilizes Adjusted EBITDA as a means to measure its operating performance. The table below reconciles Adjusted EBITDA, a non-GAAP measure, to net income.
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: Investors: 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/
