Financial Performance - Net revenues increased by 18.7% to a record $16.3 million in Q2 FY 2025, compared to $13.7 million in Q2 FY 2024[4] - Operating income reached a record $2.5 million, representing 15.6% of net revenues, with a year-over-year increase of 12.3%[7] - Net income was $2.0 million, or $0.22 per diluted share, compared to $1.7 million, or $0.19 per diluted share in Q2 FY 2024[9] - Gross profit increased to $12.6 million, or 77.7% of net revenues, up from $10.5 million, or 77.0% of net revenues[6] - Revenue in the direct homecare business grew by 15.2% to $14.6 million, driven by increased referrals and approvals[5] Expenses and Investments - Selling, general and administrative expenses rose by 20.3% to $9.8 million, primarily due to increased salaries and share-based compensation[8] - The company initiated an investment in a new CRM system to enhance the productivity of its commercial team[3] - Share-based compensation expense increased significantly to $1,652,000 from $791,000, marking a rise of 108.5%[21] - Expenditures for property and equipment were $270,000, up from $180,000, indicating ongoing investment in operational capacity[21] - The net cash used for investing activities was $295,000, compared to $220,000 in the prior year, showing an increase in investment outflows[21] Cash Flow and Liquidity - Cash balance as of December 31, 2024, was $16.2 million, reflecting a $0.2 million increase compared to the previous six months[10] - Net cash provided by operating activities increased to $5,460,000 from $3,227,000, reflecting a growth of 69.2% year-over-year[21] - Cash and cash equivalents at the end of the period rose to $16,235,000, up from $10,434,000, indicating a year-over-year increase of 55.0%[21] - The beginning cash balance was $16,080,000, which demonstrates a solid liquidity position for the company[21] Shareholder Equity and Stock Activity - Electromed's total shareholders' equity was $43.6 million as of December 31, 2024[10] - The company repurchased common stock amounting to $4,536,000 during the period, indicating a strong commitment to returning value to shareholders[21] - The company issued common stock upon exercise of options totaling $346,000, compared to $55,000 in the previous year, reflecting increased employee stock option activity[21] Inventory and Receivables Management - Accounts receivable decreased by $558,000, while inventories increased by $500,000, suggesting changes in sales and inventory management strategies[21] Workforce - The company ended the quarter with 60 field sales force employees, including 54 direct sales representatives[5]

Financial Data and Key Metrics Changes - The company reported net revenue of $14.7 million for Q1 FY 2025, representing a year-over-year growth of 19% from $12.3 million in Q1 FY 2024 [6][22] - Operating income increased to $1.9 million, compared to $0.1 million in the same quarter of the previous year, with diluted earnings per share of $0.16 [8][30] - Gross profit rose to $11.5 million, accounting for 78.3% of net revenues, up from 77.1% in Q1 FY 2024 [25] Business Line Data and Key Metrics Changes - Home care revenue grew by 18.5% year-over-year to $13.2 million, driven by increased referrals and a higher number of direct sales representatives [7][22] - Hospital revenue increased by 36.1% to $690,000, attributed to stronger demand for capital devices and disposable products [23] - Other revenue surged by 97.8% to $180,000, primarily due to increased international distributor purchases [24] Market Data and Key Metrics Changes - The company ended the quarter with 53 direct sales representatives, with a target of 57 by the end of Q2 FY 2025 [12] - The annualized home care revenue per weighted average direct sales representative was $985,000, up from $876,000 in the previous year [23] Company Strategy and Development Direction - The company aims to expand its sales team and improve operational efficiencies while raising awareness of its airway clearance technology [10][11] - A new marketing VP has been appointed to strengthen the marketing team and drive therapy adoption for SmartVest Clearway [19][20] - The company is focusing on direct-to-consumer initiatives to enhance patient awareness and engagement [47] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the continued growth trajectory, highlighting the importance of addressing underdiagnosed conditions like bronchiectasis [36][39] - The company is monitoring the impact of natural disasters on product access for providers and patients [51] Other Important Information - The company authorized a share repurchase of up to $5 million, with 262,756 shares repurchased at a total cost of $4.5 million [31] - As of September 30, 2024, the company had $13.9 million in cash and no debt, achieving a working capital of $33.6 million [32] Q&A Session Summary Question: Are you seeing any momentum in specific diagnoses related to bronchiectasis? - Management noted increased visibility and identification of bronchiectasis patients by pulmonologists, leading to earlier prescriptions of SmartVest technology [36][39] Question: What are your long-term targets for revenue distribution, especially in the hospital setting? - Management indicated that hospital sales will remain a smaller percentage of total revenue due to longer sales cycles, but they are optimistic about growth in this area [40][41] Question: How does the company's status as the industry's only pure play affect its competitive position? - Management believes being a single product company allows for focused expertise and better positioning in a nascent market [42][43] Question: What are the overarching growth drivers for the company moving forward? - Key growth drivers include expanding the sales team, enhancing direct-to-consumer efforts, and improving payer relations to facilitate quicker patient access to products [46][49]

Revenue Growth - Homecare revenue increased by $2,058,000, or 18.5%, to $13,211,000 for the three months ended September 30, 2024[55] - Hospital revenue increased by $183,000, or 36.1%, to $690,000 for the three months ended September 30, 2024[57] - Total revenue increased by $2,344,000, or 19.0%, to $14,668,000 for the three months ended September 30, 2024[55] Profitability - Gross profit increased to $11,491,000, or 78.3% of net revenues, for the three months ended September 30, 2024, compared to 77.1% in the prior year[61] - Operating income increased by $1,796,000 to $1,938,000 for the three months ended September 30, 2024[67] - Net income for the three months ended September 30, 2024, was $1,474,000 compared to $155,000 for the same period in the prior year[70] Cash Flow and Liquidity - Cash flows from operating activities were $2,309,000 for the three months ended September 30, 2024[71] - The company maintains a working capital of approximately $33,591,000, which is expected to meet liquidity needs for the next twelve months[74] - The line of credit available as of September 30, 2024, was $2,500,000, with no outstanding principal balance[75] Risks and Challenges - The company faces risks related to component or raw material shortages, changes to lead times, and significant price increases[82] - Regulatory compliance and the ability to gain future regulatory approvals are critical for the company's operations[82] - The company is concerned about the entry of new competitors and adverse economic conditions impacting its market position[82] - Cybersecurity threats such as data breaches and computer viruses pose risks to the company's operations[82] - The company acknowledges the potential impact of adverse international healthcare regulations on its business[82] Strategic Focus - The company emphasizes the importance of obtaining reimbursement from Medicare, Medicaid, and private insurance payers for its products[82] - The company is focused on developing new sales channels, including the homecare distributor channel[82] - The company is committed to protecting and expanding its intellectual property portfolio[82] Forward-Looking Statements - The company does not plan to update forward-looking statements unless required by law[83] - The company is classified as a smaller reporting company and is not required to provide certain market risk disclosures[85]

Financial Performance - Net revenue increased by 19.0% to $14.7 million in Q1 FY 2025, up from $12.3 million in Q1 FY 2024[2] - Gross margin improved to 78.3% of net revenues, compared to 77.1% in the same quarter last year[2] - Operating income rose to $1.9 million, representing 13.2% of revenue, compared to $0.1 million or 1.2% of revenue in Q1 FY 2024[2] - Net income was $1.5 million, or $0.16 per diluted share, compared to $0.2 million, or $0.02 per diluted share in Q1 FY 2024[2] - Net income for the three months ended September 30, 2024, increased to $1,474,000 compared to $155,000 for the same period in 2023, representing a significant growth[17] Revenue Sources - Revenue from the direct homecare business increased by 18.5% to $13.2 million, driven by more referrals and an increase in direct sales representatives[5] - The annualized homecare revenue per weighted average direct sales representative was $985,000, at the higher end of the target range of $900,000 to $1,000,000[5] Expenses and Cash Flow - Selling, general and administrative expenses were $9.4 million, an increase of 2.6% compared to Q1 FY 2024[7] - Net cash provided by operating activities was $2,309,000, a turnaround from a cash outflow of $244,000 in the prior year[17] - Accounts receivable increased by $967,000, up from $675,000 year-over-year, indicating higher sales or delayed collections[17] - Cash and cash equivalents at the end of the period were $13,864,000, compared to $7,024,000 at the end of the same period last year, reflecting improved liquidity[17] - The company experienced a net decrease in cash of $2,216,000, compared to a decrease of $348,000 in the prior year, highlighting cash flow challenges[17] - Expenditures for property and equipment were $37,000, down from $109,000, suggesting a more conservative investment approach[17] - The company reported a net cash used for investing activities of $58,000, a decrease from $133,000 in the previous year, indicating reduced capital expenditures[17] Shareholder Value and Compensation - The company repurchased common stock amounting to $4,536,000 during the period, indicating a strategy to return value to shareholders[17] - Share-based compensation expense rose to $697,000 from $371,000, reflecting increased employee compensation costs[17] Marketing and Leadership - The company launched a new marketing campaign called "Triple Down on Bronchiectasis," which has received positive feedback[3] - Electromed hired Peter Horwich as the new VP of Marketing to lead market development initiatives[3]

Financial Data and Key Metrics Changes - Total net revenue for Q4 2024 was $14.8 million, a 9% year-over-year increase from Q4 2023, with full-year revenues reaching $54.7 million, a 14% increase from fiscal year 2023 [4][20] - Operating income for Q4 was $2.3 million and $6.6 million for the full fiscal year, both record figures, indicating strong top-line growth and improved operating leverage [5][20] - Net income for fiscal 2024 was $5.2 million or $0.58 per diluted share, a 62.7% increase compared to $3.2 million or $0.36 per diluted share in fiscal 2023 [20] Business Line Data and Key Metrics Changes - Revenue from the direct homecare segment, which accounted for 90% of overall revenue, increased by $5.6 million or 12.6% to $49.5 million [16] - Hospital revenue rose by $0.5 million or 21.9% to $2.5 million, driven by increased sales representatives and demand for capital devices [16] - Other revenue surged by $0.4 million or 94.8% to $0.8 million, primarily due to increased international distributor purchases [17] Market Data and Key Metrics Changes - The introduction of SmartVest Clearway into the hospital market resulted in a 22% growth in this segment during fiscal 2024 [10] - The company expanded its sales team to 53 representatives by the end of the fiscal year, with plans to increase to 57 by year-end fiscal 2025 [7] Company Strategy and Development Direction - The company is focused on market development to raise awareness of bronchiectasis, with clinical teams participating in regional conferences to educate healthcare providers [8] - Investments in sales incentives and recruitment are aimed at improving sales performance, with expectations for homecare revenue per rep to increase to $900,000 to $1 million in fiscal 2025 [7][30] - The company aims to enhance operational efficiency through investments in ERP systems and fulfillment teams, contributing to zero back orders [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued revenue growth and operating leverage, citing improvements in supply chain and reimbursement processes [22][23] - The CEO highlighted the cohesive team and upgraded talent as key factors driving the company's success and operational improvements [28] - Management remains cautious about potential competition from new drug developments for bronchiectasis, emphasizing the need for comprehensive care that includes their products [26] Other Important Information - Electromed was recognized as one of the fastest-growing public companies in Minnesota, reflecting its operational execution and growth focus [14] - The company has maintained a strong cash position of over $16 million and no debt, achieving a working capital of $36.5 million [20] Q&A Session Summary Question: Key levers for operating leverage in fiscal 2025 - Management noted improvements in distribution costs and reduced need for corresponding investments in the reimbursement team as key drivers for continued operating leverage [22][23] Question: Impact of Insmed's drug on the company - Management indicated that while the drug is focused on inflammation, it does not address all aspects of bronchiectasis care, suggesting it will be part of a broader treatment continuum [25][26] Question: Reflections on the first year and future opportunities - The CEO reflected positively on the first year, emphasizing team collaboration and the introduction of successful products as significant opportunities for growth [27][29] Question: Revenue trends and guidance - Management expects to continue driving double-digit growth and expanding operating leverage, consistent with past performance [31]

Electromed, Inc. Investor Presentation August 27, 2024 NYSE American: ELMD Innovation Leader in Airway Clearance Technologies Investor Presentation | 1 Forward Looking Statements Certain statements in this press release constitute forward-looking statements as defined in the US Private Securities Litigation Reform Act of 1995. Forward-looking statements can generally be identified by words such as "anticipate," "believe," "estimate," "expect," "intend," "may," "plan," "potential," "should," "will," and simi ...

Revenue Growth - Homecare revenue increased by $5,558,000, or 12.6%, in fiscal 2024 compared to fiscal 2023, driven by more direct sales representatives and improved referral efficiencies [102]. - Hospital revenue rose by $455,000, or 21.9%, in fiscal 2024, attributed to increased sales representatives and higher demand for capital and disposable products [103]. - Total revenue for fiscal 2024 was $54,716,000, an increase of $6,649,000 or 13.8% from $48,067,000 in fiscal 2023 [102]. - Other revenue surged by $402,000, or 94.8%, in fiscal 2024, mainly due to increased international distributor purchases [105]. Profitability - Gross profit increased to $41,726,000, representing 76.3% of net revenues in fiscal 2024, up from $36,519,000 or 76.0% in fiscal 2023 [106]. - Net income for fiscal 2024 was $5,150,000, a 62.7% increase from $3,166,000 in fiscal 2023, driven by revenue growth and decreased professional fees [113]. Expenses - Selling, general and administrative expenses rose by $2,894,000, or 9.2%, to $34,489,000 in fiscal 2024 [106]. - SG&A payroll and compensation-related expenses increased by $2,885,000, or 14.0%, to $23,437,000 in fiscal 2024, reflecting higher compensation for sales and support personnel [107]. - Research and development expenses decreased by $260,000, or 28.4%, to $656,000 in fiscal 2024, primarily due to reduced costs associated with the SmartVest Clearway platform development [110]. Cash Flow and Investments - Cash flows from operating activities provided $9,067,000 in fiscal 2024, consisting of net income and various adjustments, despite decreases in accounts payable and accrued liabilities [114]. - Net cash used in investing activities was approximately $395,000 in fiscal 2024, including $287,000 for property and equipment expenditures [115]. - The company spent approximately $287,000 on property and equipment in fiscal 2024, significantly lower than $1,648,000 in fiscal 2023 [120]. - The company expects to finance planned equipment purchases through cash flows from operations or borrowings under the credit facility [120]. Financial Position - The company has approximately $36,496,000 in working capital, which is expected to meet liquidity needs for at least the next twelve months [117]. - The renewed credit facility provides a revolving line of credit with a maximum borrowing limit of $2,500,000, secured by a security interest in the company's assets [118]. - The company is subject to financial covenants under its credit facility, including a minimum tangible net worth of $10,125,000 [119]. Taxation - The effective tax rate for fiscal 2024 was 26.8%, up from 22.5% in fiscal 2023, influenced by state income taxes and R&D tax credits [113]. Future Plans - The company plans to expand its sales force by adding three territories and direct sales representatives to accelerate revenue growth in fiscal 2025 [91]. - The company experienced increased lead times and material costs in the supply chain during fiscal 2023, but expects a return to normal lead times in fiscal 2024 [92]. - Net interest income increased to approximately $455,000 in fiscal 2024 from $78,000 in fiscal 2023, primarily due to higher savings rates on increased cash balances [112].

Exhibit 99.1 Electromed, Inc. Announces Record Fiscal Year 2024 Financial Results Record Q4 and full year financial results NEW PRAGUE, Minn.--(BUSINESS WIRE)-- Electromed, Inc. ("Electromed") (NYSE American: ELMD), a leader in innovative airway clearance technologies, today announced financial results for the three months ("Q4 FY 2024") and full year ("FY 2024") ended June 30, 2024. Q4 FY 2024 Financial Highlights ● Net revenues increased 9.0% to a record $14.8 million in Q4 FY 2024, from $13.6 million in ...

Electromed, Inc. (NYSE:ELMD) Q3 2024 Earnings Conference Call May 7, 2024 5:00 PM ET Company Participants Mike Cavanaugh - IR James Cunniff - President, CEO & Director Bradley Nagel - CFO, Treasurer & Company Secretary Conference Call Participants Aaron Wukmir - Lake Street Capital Markets Operator Greetings, and welcome to the Electromed Third Quarter Fiscal 2024 Financial Results Conference Call. [Operator Instructions]. I would now like to turn the conference over to Mike Cavanaugh, Investor Relations. P ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission File No.: 001-34839 Electromed, Inc. (Exact Name of Registrant as Specified in its Charter) (State or other jurisdiction of incorporation or orga ...