MADISON HEIGHTS, Mich., Aug. 6 /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 second quarter of 2008.
Mr. Steve Watkins, chief executive officer, commented, "Since becoming a stand-alone entity in October of 2007, we have executed a plan of action that has enabled us to build upon our strong foundation for pump management services, billing services, and 24/7 nursing support for ambulatory infusion pumps utilized in the treatment of colorectal cancer and other forms of cancer. While we are proud of our record, we have only just come out of the gate in terms of realizing our full potential as a major provider of ambulatory infusion pumps, supplies and related services."
"Earlier this year, we put new incentive plans and sales quotas in place and, as a result, have increased sales and continue to gain traction in the marketplace. We have enhanced training for the existing sales force, filled two new sales positions and hired two sales associates. Re-branding the company and highlighting the advantages of our services are also important elements in our overall business strategy. Over the past few months, we have rolled out our new website, increased our presence at major trade shows and created well-crafted sales literature to support our sales team. With solid relationships already in place among more than 60% of oncologist practices nationwide, we are building awareness among physicians and nurses on the expanded uses of our ambulatory infusion pumps for other conditions and cancers including esophageal, pancreatic and gastric cancers."
Mr. Watkins concluded, "By the end of the second quarter, our newly implemented strategies have begun to take effect as evidenced by double digit revenue growth of 12.8% for the second quarter of 2008, compared to results of InfuSystem, Inc. for the second quarter of last year, while under its prior ownership. We also generated $3.2 million of adjusted EBITDA for the quarter and now have over $8 million of cash as of June 30, 2008. With a newly minted marketing plan in place, expanded and motivated sales force, strong cash flow to fund our growth and a large and receptive market for our services, we believe that we are perfectly positioned to capture a meaningful share of the market in the months and years ahead."
Financial Results
Revenue for the second quarter ended June 30, 2008 was $8.8 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 second quarter of 2008 was $1.1 million versus an operating loss of $1.1 million for the same period in 2007. The increase in operating income for the second quarter of 2008 reflects revenue and operating expenses recorded for InfuSystem, Inc. following the acquisition.
The net loss for the second quarter of 2008 was $1.8 million, or $0.10 per diluted share, compared to net loss of $2.2 million or $0.12 per diluted share, for the same period in 2007. The net loss for the second quarter of 2008 included a $1.9 million loss on derivative financial instruments, which is predominantly attributable to the increase in the publicly traded value of our warrants during the quarter, compared to a $2.0 million loss for the second quarter of 2007 and stock based compensation of $687,000 versus $611,000 in the second quarter of 2007.
Adjusted EBITDA for the second quarter ended June 30, 2008 was $3.2 million, as compared to an Adjusted EBITDA loss of approximately ($0.5 million) for the same period of 2007. 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 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 tables below reconcile Adjusted EBITDA, a non-GAAP measure, to net income for the three and six months ended June 30, 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 for InfuSystem Holdings,
Inc., +1-212-671-1020
Web site: http://www.infusystem.com/
