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Madison Heights, Michigan—November 9, 2009 – InfuSystem Holdings, Inc. (OTCBB: INHI; INHIW; INHIU), the leading provider of ambulatory infusion pumps and associated clinical services, today announced financial results and provided a business update for the third quarter ended September 30, 2009.
Revenue for the third quarter ended September 30, 2009 was $9.9 million, an 11% improvement compared to $9.0 million for the same period in 2008. The increase in revenue was a result of winning new customer business.
Mr. Sean McDevitt, Chief Executive Officer, commented, “We are pleased with the third quarter performance. InfuSystem continues to execute on our business strategy as evidenced by accelerating revenue growth and continued strong cash flow. We remain confident in the long-term outlook for the company and industry”.
Financial Results for the Third Quarter 2009
Revenue for the third quarter ended September 30, 2009 was $9.9 million, an 11% improvement compared to $9.0 million for the same period in 2008. Operating income for the third quarter of 2009 was $1.4 million versus operating income of $1.6 million for the same period in 2008. The decrease in operating income for the third quarter of 2009 was primarily due to management transition expenses and higher pump repair and maintenance costs.
The net loss for the third quarter of 2009 was ($445,000), or ($0.02) per diluted share, compared to net income of $5.7 million or $0.30 per diluted share, for the same period in 2008. The net loss for the third quarter of 2009 included a ($564,000) 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 $5.4 million gain on derivative financial instruments in the third quarter of 2008.
Adjusted EBITDA for the third quarter ended September 30, 2009 was $3.8 million, compared to $3.6 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, and other non-recurring charges. 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. Reconciliation from Adjusted EBITDA, a non-GAAP measure, to net income can be found in the appendix.
Financial Results for the Nine Months Ended September 30, 2009
Revenue for the nine months ended September 30, 2009 was $28.3 million, an 8% improvement compared to $26.3 million for the same period in 2008. Operating income for the nine months ended September 30, 2009 was $4.0 million versus operating income of $3.2 million for the same period in 2008. The increase in operating income for the nine months ended September 30, 2009 was a result of an increase in revenue, lower freight cost, partially offset by management transition expenses.
The net loss for the nine months ended September 30, 2009 was ($192,000), or ($0.01) per diluted share, compared to net income of $8.7 million or $0.47 per diluted share, for the same period in 2008. The net loss for the nine months ended September 30, 2009 included a ($1.2 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 nine month period, compared to an $8.7 million gain on derivative financial instruments in the comparable period in 2008.
Adjusted EBITDA for the nine months ended September 30, 2009 was $9.7 million, a 10% increase compared to $8.8 million for the same period in 2008.
Total cash and cash equivalents were $6.7 million at the end of the third quarter, compared to $11.5 million at the end of 2008. During the nine months ended September 30, 2009, $7.7 million in principal was paid on the term debt due to I-Flow Corporation. At the end of the third quarter, InfuSystem had $23.9 million of total debt outstanding, compared to $30.7 million at year end 2008.
Conference Call
The company will host an investor conference call today at 5:00 p.m. ET to discuss its financial results for the third quarter 2009. The investor conference call will be available via live webcast on InfuSystem’s website at www.infusystem.com in the Investors section. To participate by telephone, the dial-in number is (866) 550-6338. The access code is 4403363. Investors are advised to dial into the call at least ten minutes prior to the call to register. A replay of the call can be accessed by dialing (888) 203-1112, confirmation number 4403363. An online archive of the conference call will remain on the Company’s website for at least 90 days after the call.
About InfuSystem Holdings, Inc.
InfuSystem is the leading supplier of infusion services to oncologists and other outpatient treatment settings. We provide pole mounted and ambulatory pumps, supplies and related clinical, biomedical and billing services to practices and patients, nationwide. Our unique suite of services appeals to practices, patients and payors by improving access to clinically necessary medical equipment, while driving down costs and maximizing clinical outcomes.
Forward-Looking StatementsExcept 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.
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