MADISON HEIGHTS, Mich., March 3 /PRNewswire-FirstCall/ -- InfuSystem Holdings, Inc. (OTC Bulletin Board: 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 fourth quarter ended December 31, 2008.
Mr. Steve Watkins, chief executive officer, commented, "We are pleased to report a 12.9% increase in revenue to $9.1 million for the fourth quarter of 2008, versus the comparable period in 2007 (which included the results of InfuSystem, Inc. under its prior ownership and InfuSystem Holdings as a stand-alone entity). Initiatives put in place earlier this year continue to fuel our growth and market penetration. These included enhanced sales training, restructured sales incentive programs and realigned sales territories to maximize coverage. As a result, we have succeeded in gaining market share and adding managed care contracts. We also continue to generate strong cash flow and increased cash reserves. During the fourth quarter, we achieved adjusted EBITDA of $3.3 million and had approximately $11.5 million of cash and cash equivalents as of December 31, 2008, allowing us to maintain a solid foundation during the current economic environment."
"InfuSystem's leading market position, favorable sales trends and improved operational efficiencies bode extremely well for 2009. Looking ahead, we see organic growth continuing in 2009, as physicians further expand the use of continuous infusion pumps to administer chemotherapy for other cancers in addition to stage III colorectal cancer. We have also built a highly scalable business model as a result of our national managed care contracts covering over 150 million lives and relationships with more than 60% of oncologist practices nationwide. We have made it a priority to leverage this extensive network by distributing complementary products and introducing key new services in 2009."
Revenue for the fourth quarter ended December, 31 2008 was $9.1 million, versus $6.6 million for the same period in 2007. Revenue for the fourth quarter of 2007 reflects the revenues recognized by InfuSystem Holdings, Inc. following the acquisition of InfuSystem, Inc. from I-Flow Corporation on October 25, 2007. The increase in revenue reflects the full quarter of reported revenue in 2008 versus a partial quarter in 2007, and revenue growth for the comparable 67 day period in which InfuSystem was a standalone entity.
Operating income for the fourth quarter of 2008 was $1.5 million versus an operating income of $1.0 million for the same period in 2007. The increase in operating income for the fourth quarter of 2008 reflects the full quarter of revenue and operating expenses recorded for InfuSystem, Inc. in the fourth quarter of 2008 and improved operating income for the comparable periods in which InfuSystem was a standalone entity.
The net income for the fourth quarter of 2008 was $1.3 million, or $0.07 per diluted share, compared to net loss of ($1.9 million) or $(0.11) per diluted share, for the same period in 2007. The net income for the fourth quarter of 2008 included a $1.1 million gain on derivative financial instruments, which is predominantly attributable to the decrease in the publicly traded value of the Company's warrants during the quarter, compared to a ($2.6 million) loss for the fourth quarter of 2007. The fourth quarter of 2007 also included a $0.3 million charge for stock-based compensation, $0.8 million of expenses related to the acquisition of InfuSystem, Inc., and a $0.3 million gain from interest income.
Adjusted EBITDA for the fourth quarter ended December, 31 2008 was $3.3 million. Adjusted EBITDA is not provided for the fourth quarter ended December 31, 2007. As Adjusted EBITDA is a measure of operating performance, and as that time period was made up of 25 days as a pre-acquisition shell company and 67 days as an operating entity, Adjusted EBITDA would not be meaningful. 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 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 operating performance. The table below reconciles Adjusted EBITDA, a non-GAAP measure, to net income for the three months and year ended December 31, 2008.
(in thousands) Year Ended Three Months Ended Reconciliation from Net December 31, December 31, Income to Adjusted EBITDA: 2008 2008 Net Income $9,959 $1,259 Adjustments: Interest expense 3,771 943 Interest income (36) (22) Income tax expense 907 508 Depreciation -- Pumps 3,769 861 Depreciation -- Other 166 33 Amortization 1,827 457 EBITDA $20,363 $4,039 Adjustments: Gain on derivatives (9,815) (1,150) Stock based compensation 1,550 384 Adj. EBITDA $12,098 $3,273
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.
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.
INFUSYSTEM HOLDINGS, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except share data) December 31, December 31, 2008 2007 ASSETS Current Assets: Cash and cash equivalents $11,513 $3,960 Accounts receivable, less allowance for doubtful accounts of $1,552 and $1,638 at December 31, 2008 and 2007, respectively; December 31, 2008 and 2007 include $72 and $103 due from I-Flow, respectively 4,168 6,304 Inventory supplies 391 364 Prepaid expenses and other current assets 676 1,263 Deferred income taxes - 4 Total Current Assets 16,748 11,895 Property & equipment, net 10,878 13,504 Deferred debt issuance costs, net 1,276 1,918 Goodwill 56,580 56,544 Intangible assets, net 30,738 32,565 Total Assets $116,220 $116,426 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable $1,012 $1,076 Deferred income taxes 55 - Other current liabilities 939 1,886 Derivative liabilities 2,592 12,407 Current portion of long-term debt; December 31, 2008 and 2007 include $8,565 and $2,044 payable to I-Flow, respectively 8,644 2,044 Total Current Liabilities 13,242 17,413 Long-term debt, net of current portion; December 31, 2008 and 2007 include $21,685 and $30,250 payable to I-Flow, respectively 22,025 30,250 Deferred income taxes 880 4 Total Liabilities $36,147 $47,667 Commitments and Contingencies - - Stockholders' Equity Preferred stock, $.0001 par value: authorized 1,000,000 shares; none issued - - Common stock, $.0001 par value; authorized 200,000,000 shares; issued 18,512,670 and 18,315,430, respectively; outstanding 17,278,626 and 16,824,295, respectively 2 2 Additional paid-in capital 80,792 79,437 Retained deficit (721) (10,680) Total Stockholders' Equity 80,073 68,759 Total Liabilities and Stockholders' Equity $116,220 $116,426
INFUSYSTEM HOLDINGS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per Year Ended Year Ended share data) December 31, December 31, 2008 2007 Net revenues $35,415 $6,582 Operating expenses: Cost of revenues - Product and supply costs 5,422 923 Cost of revenues - Pump depreciation 3,769 697 Provision for doubtful accounts 3,187 584 Amortization of intangibles 1,827 335 Selling and marketing 4,659 649 General and administrative 11,765 4,891 Total Operating Expenses 30,629 8,079 Operating income (loss) 4,786 (1,497) Other income (expense): Gain (loss) on derivatives 9,815 (3,294) Interest income 36 3,879 Interest expense (3,771) (774) Total other income (expense) 6,080 (189) Income (loss) before income taxes 10,866 (1,686) Income tax expense (907) (1,110) Net income (loss) $9,959 $(2,796) Net income (loss) per share: Basic $0.56 $(0.15) Diluted $0.53 $(0.15) Weighted average shares outstanding: Basic 17,940,952 18,299,600 Diluted 18,672,321 18,299,600
INFUSYSTEM HOLDINGS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS Three Months Ended (in thousands, except share and per share data) December 31, 2008 Net revenues $9,092 Operating expenses: Cost of Revenues -- Product and supply costs 1,240 Cost of Revenues -- Pump depreciation 861 Provision for doubtful accounts 710 Amortization of intangibles 457 Selling and marketing 1,258 General and administrative 3,028 Total Operating Expenses 7,554 Operating income 1,538 Other income (expense): Gain on derivatives 1,150 Interest income 22 Interest expense (943) Total other income 229 Income before income taxes 1,767 Income tax expense (508) Net income 1,259 Net income per share: Basic 0.07 Diluted 0.07 Weighted average shares outstanding: Basic 18,476,445 Diluted 18,794,943 Three Months Ended (in thousands, except share and per share data) December 31, 2007 Net revenues $6,582 Operating expenses (5,618) Operating income 964 Other expense (2,475) Loss before income t (1,511) Income tax expense (357) Net loss (1,868) Net loss per share: basic (0.11) diluted (0.11) Weighted average shares outstanding: basic 17,333,261 diluted 17,333,261
INFUSYSTEM HOLDINGS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) Year Ended Year Ended December 31, December 31, 2008 2007 OPERATING ACTIVITIES Net Income (Loss) $9,959 $(2,796) Adjustments to reconcile net income (loss) to net cash provided by operating activities: (Gain) loss on derivative liabilities (9,815) 3,294 Depreciation 3,935 728 Provision for doubtful accounts 3,187 584 Amortization of intangible assets 1,827 335 Stock-based compensation 1,550 1,750 Amortization of deferred debt issuance costs 642 134 Loss on disposal of assets 553 107 Deferred income taxes 935 - Withdrawal of interest earned on investments held in trust - 5,815 Interest income on investments held in trust - (3,879) Changes in current assets and liabilities, net of effects of acquisitions: Increase in accounts receivable, net of provision (1,835) (698) Decrease (increase) in prepaid expenses and other current assets 560 (431) Decrease in accounts payable and other current liabilities (601) (566) NET CASH PROVIDED BY OPERATING ACTIVITIES 10,897 4,377 INVESTING ACTIVITIES Capital expenditures (1,733) (553) Payment of deferred acquisition costs (105) (8,690) Proceeds from sale of property 10 - Cash from trust, excluding interest earned 96,215 Cash received (paid) for acquisition from (to) I-Flow, net of cash acquired 784 (64,954) NET CASH (USED IN) PROVIDED BY INVESTING ACTIVITIES (1,044) 22,018 FINANCING ACTIVITIES Principal payments on term loan (2,044) (409) Common stock repurchased to satisfy minimum statutory withholding on stock-based compensation (195) - Principal payments on capital lease obligation (61) - Share conversion payments to stockholders - (16,359) Capitalized debt issuance costs - (2,052) Payment to FTN Midwest of deferred underwriting fees - (4,555) Proceeds from issuance of warrants - 513 NET CASH USED IN FINANCING ACTIVITIES (2,300) (22,862) Net change in cash and cash equivalents 7,553 3,533 Cash and cash equivalents, beginning of period 3,960 427 Cash and cash equivalents, end of period $11,513 $3,960
|SOURCE InfuSystem Holdings, Inc.|
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