Financial Data and Key Metrics Changes - Electromed reported record revenues of $16.3 million for Q2 FY 2025, an increase of 18.7% from $13.7 million in Q2 FY 2024 [7][18] - Operating income reached a record $2.5 million, compared to $2.3 million in Q2 FY 2024, driven by increased revenue and gross profit [7][23] - Net income was $2 million, or $0.22 per fully diluted share, marking a significant improvement in earnings per share [7][24] Business Line Data and Key Metrics Changes - Revenue from the direct homecare business increased by 15.2% to $14.6 million from $12.7 million, attributed to more referrals and improved efficiencies [19] - Hospital segment revenue grew by 16.8% to $723,000, driven by increased demand for capital and disposable products [20] - Homecare distributor revenue surged by 188% year-over-year to $807,000, reflecting strong demand from DME partners [20] Market Data and Key Metrics Changes - The company improved working capital by reducing inventory by 35% compared to Q2 FY 2024 while meeting patient therapy needs [12] - The annualized homecare revenue per weighted average direct sales representative was $1,077,000, slightly above the target range of $900,000 to $1 million [19] Company Strategy and Development Direction - The company aims to diversify its customer base beyond the core homecare segment, with a focus on the hospital segment and DME distributor relationships [9][10] - Investments in personnel, technology, and process improvements are ongoing to enhance operational efficiency and customer experience [11][12] - The "Triple Down on Bronchiectasis" campaign aims to raise awareness and increase prescriptions for SmartVest Clearway technology [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed satisfaction with the operational performance and market response, indicating a strong trajectory for continued growth [16] - The company remains focused on delivering double-digit top-line growth and expanded operating leverage for the full year [25] Other Important Information - Electromed had $16.2 million in cash, $22.8 million in accounts receivable, and no debt, achieving a working capital of $35.5 million [24] - The company is investing in a new CRM system to enhance productivity and market insights [12] Q&A Session Summary Question: Competitive response to SmartVest marketing - Management noted that while competitors have upgraded their technology, it has not significantly impacted Electromed's business, which continues to show strong results [30][33] Question: Developments in drugs for bronchiectasis - Management indicated that a new drug for bronchiectasis is under FDA review, expected to be complementary to airway clearance rather than a replacement [35][38] Question: Revenue per sales representative outlook - Management expressed optimism about maintaining or improving revenue per sales representative, citing better performance management and onboarding processes [40][41]

Financial Data and Key Metrics Changes - The company reported record revenues of $16.3 million for Q2 FY 2025, an increase of 18.7% from $13.7 million in Q2 FY 2024 [5][13] - Net income reached $2 million, or $0.22 per fully diluted share, compared to $1.8 million in the same quarter last year [5][15] - Gross profit increased to $12.6 million, representing 77.7% of net revenues, up from 77% in the previous year [14] Business Line Data and Key Metrics Changes - Direct Home Care revenue grew by 15.2% to $14.6 million from $12.7 million year over year [13] - Hospital segment revenue increased by 16.8% to $723,000, driven by higher demand for capital and disposable products [13] - Durable Medical Equipment (DME) distributor revenue surged by 188% to $807,000, reflecting strong demand from DME partners [13][7] Market Data and Key Metrics Changes - The company is diversifying its customer base beyond the core Home Care segment, with significant growth in the hospital and DME segments [7] - The annualized home care revenue per weighted average direct sales representative was $1,077,000, slightly above the target range of $900,000 to $1,000,000 [13] Company Strategy and Development Direction - The company aims to enhance shareholder value through operational improvements and revenue diversification [6][12] - Investments in personnel, technology, and process improvements are ongoing to support growth and efficiency [9][10] - The "Triple Down on Bronchiectasis" campaign is focused on raising awareness and increasing prescriptions for SmartVest Clearway technology [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining operational momentum and achieving double-digit top-line growth for the full year [16] - The company remains focused on improving execution and penetrating new revenue sources while investing in infrastructure [12] Other Important Information - As of December 31, 2024, the company had $16.2 million in cash and no debt, achieving a working capital of $35.5 million [16] - The company has seen a significant appreciation in stock value over the past six and twelve months [6] Q&A Session Summary Question: Competitive response to SmartVest marketing - Management noted that while competitors have upgraded their products, it has not significantly impacted their business [20][21] Question: Developments in drugs for bronchiectasis - Management indicated that new drugs are being developed but emphasized that airway clearance remains essential for patient care [24][23] Question: Revenue per sales representative outlook - Management expressed optimism about maintaining or improving revenue per sales rep, attributing recent success to better performance management and onboarding processes [25][26]

Financial Performance - Net revenues for the three months ended December 31, 2024, increased by 18.7% to $16,255,000 compared to $13,689,000 for the same period in the prior year[60]. - Homecare revenue increased by $1,925,000 or 15.2% for the three months ended December 31, 2024, driven by increased referrals and approvals[61]. - Gross profit for the three months ended December 31, 2024, increased to $12,627,000, representing 77.7% of net revenues, up from 77.0% in the same period last year[66]. - Operating income increased by $279,000 or 12.3% to $2,542,000 for the three months ended December 31, 2024, compared to the same period in the prior year[74]. - Net income for the three and six months ended December 31, 2024, was $1,968,000 and $3,442,000, respectively, compared to $1,674,000 and $1,829,000 for the same periods in the prior year[79]. Expenses - Research and development expenses increased by $144,000 or 134.6% for the three months ended December 31, 2024, primarily due to increased headcount and external spend[73]. - Selling, general and administrative expenses increased by $1,659,000 or 20.3% for the three months ended December 31, 2024, compared to the same period in the prior year[67]. Cash Flow and Financing - Cash flows from operating activities for the six months ended December 31, 2024, were $5,460,000, consisting of net income and adjustments for non-cash expenses[80]. - The company reported cash used for financing activities of $5,010,000 for the six months ended December 31, 2024, primarily for share repurchase[82]. - The company believes its working capital of approximately $35,522,000 will provide sufficient liquidity for the next twelve months[83]. - The company maintains a credit facility with a maximum borrowing limit of $2,500,000, which is secured by a security interest in substantially all tangible and intangible assets[84]. - As of December 31, 2024, there was no outstanding principal balance on the line of credit, and the interest rate on borrowings is set at 6.5% (prime rate of 7.5% less 1.0%)[84]. - For the six months ended December 31, 2024, the company spent approximately $270,000 on property and equipment, compared to $180,000 for the same period in 2023, indicating a 50% increase in capital expenditures[87]. - The company expects to finance planned equipment purchases through cash flows from operations or borrowings under the credit facility, with potential additional debt if unforeseen capital needs arise[87]. - The company believes its cash, cash equivalents, and cash flows from operations will be sufficient to meet working capital and capital expenditure requirements for fiscal 2025 and the foreseeable future[88]. - The company has a minimum tangible net worth covenant of not less than $10,125,000 as part of its credit facility agreements[85]. - Failure to comply with financial covenants could result in an event of default, potentially leading to accelerated debt maturity or restricted access to additional funds[86]. Regulatory and Compliance - The company is focused on maintaining regulatory compliance and gaining future regulatory approvals, which are critical for its operations[90]. - The company anticipates ongoing availability of credit and the ability to renew its line of credit, which is essential for its liquidity[89]. - The company is evaluating financing alternatives to satisfy its working capital and other cash requirements amid macroeconomic uncertainties[88].

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].