Financial Data and Key Metrics Changes - InfuSystem reported record net revenue of $35.2 million for Q3 2024, representing an 11% increase year-over-year and nearly 5% sequential growth [11] - Adjusted EBITDA margins improved to 22.3%, with adjusted EBITDA of $7.9 million, an increase of over $1.7 million from the prior year [14] - Operating cash flow for the quarter was $9.8 million, more than double the amount from the prior year [15] Business Line Data and Key Metrics Changes - The Device Solutions segment saw a year-over-year revenue increase of $1.9 million or 15.3%, driven by a $1.1 million increase in medical equipment sales [11][12] - The Patient Services segment reported a revenue increase of $1.5 million or 7.7%, with oncology net revenue up nearly $1.8 million or 11% [12] Market Data and Key Metrics Changes - The company signed three new initiatives, including a distribution agreement with Smith & Nephew for negative pressure wound therapy and a joint venture with Sanara MedTech for the Chemo Mouthpiece [7][28] - The oncology market is expected to see increased utilization of the Chemo Mouthpiece, which aims to reduce oral mucositis in chemotherapy patients [29] Company Strategy and Development Direction - InfuSystem is focusing on a device-agnostic and patient-centric approach to increase access to quality healthcare [8] - The company is expanding its biomedical services and advanced wound care products, leveraging existing relationships with healthcare providers [20][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, reaffirming annual guidance for high single-digit revenue growth and adjusted EBITDA margins in the high teens [32] - The potential impact of the NOPAIN Act on the pain management business remains uncertain, with management focusing on emerging opportunities in wound care and biomedical services [26][27] Other Important Information - InfuSystem's net debt decreased by $6.4 million to $27.6 million during Q3 2024, with available liquidity totaling nearly $47 million [18] - The company is positioned to fund continued revenue growth with strong cash flow from operations and manageable debt service requirements [17] Q&A Session Summary Question: Is the GE business on autopilot? - Management indicated that while the GE business is stable, it requires ongoing management and execution [35] Question: What is the revenue magnitude for Dignitana? - The revenue from Dignitana is under $1 million, but management expects more similar deals in the future [36] Question: Will cash flow remain positive going forward? - Management expects positive operating cash flow, though free cash flow may fluctuate based on growth and capital expenditures [38] Question: What is the expected size of the Chemo Mouthpiece opportunity? - The total addressable market for the Chemo Mouthpiece is estimated at $0.5 billion, with significant potential for growth [43] Question: How will Chemo Mouthpiece revenues be recorded? - Revenue from the Chemo Mouthpiece will be included in the top line, with profits reflected in the equity investment line with Sanara [54]

Financial Performance - Net revenues for the three months ended September 30, 2024, increased to $35,320,000, up from $31,909,000 for the same period in 2023, representing a growth of 7.8%[8] - Gross profit for the nine months ended September 30, 2024, was $52,187,000, compared to $46,398,000 for the same period in 2023, reflecting an increase of 12.4%[8] - Operating income for the three months ended September 30, 2024, was $3,265,000, compared to $1,697,000 for the same period in 2023, marking a significant increase of 92.5%[8] - Net income for the three months ended September 30, 2024, was $1,807,000, compared to $689,000 for the same period in 2023, indicating a growth of 162.5%[8] - Net income for the nine months ended September 30, 2024, was $1,412,000, compared to $800,000 for the same period in 2023, representing a 76.5% increase[13] - Cash provided by operating activities for the nine months ended September 30, 2024, was $12,528,000, up from $6,565,000 in the same period of 2023, indicating a 91.5% increase[13] Assets and Liabilities - Total current assets as of September 30, 2024, were $33,613,000, an increase from $30,620,000 as of December 31, 2023, representing an increase of 9.8%[7] - Total liabilities decreased to $49,790,000 as of September 30, 2024, from $50,613,000 as of December 31, 2023, a reduction of 1.6%[7] - Total stockholders' equity increased to $55,513,000 as of September 30, 2024, from $52,302,000 as of December 31, 2023, representing a growth of 6.3%[7] - The company’s total assets as of September 30, 2024, were $105,303,000, compared to $102,071,000 in 2023, indicating a growth of 3.3%[72] - Long-term debt decreased to $27,975,000 as of September 30, 2024, from $29,101,000 as of December 31, 2023, a reduction of 3.9%[7] Revenue Segments - Patient Services revenue accounted for 53.2% of total net revenues in Q3 2024, up from 52.8% in Q3 2023[21] - Device Solutions revenue recognized at a point in time increased to $4,731,000 in Q3 2024, a 31.7% increase from $3,593,000 in Q3 2023[21] - Total net revenues for the nine months ended September 30, 2024, reached $101,013,000, up from $93,462,000 in 2023, representing an increase of 8.5%[74] Cash and Cash Equivalents - Cash and cash equivalents increased to $380,000 as of September 30, 2024, compared to $231,000 as of December 31, 2023, reflecting a growth of 64.0%[7] - Cash and cash equivalents at the end of the period were $380,000, up from $161,000 at the end of the same period in 2023[13] Stock and Compensation - The company reported a basic net income per share of $0.08 for the three months ended September 30, 2024, compared to $0.03 for the same period in 2023, an increase of 166.7%[8] - The company has authorized a stock repurchase program of up to $20.0 million, with approximately $1.0 million repurchased as of September 30, 2024[52] - The weighted average grant date fair value of awards granted in the nine months ended September 30, 2024, was $7.51, compared to $9.25 for the same period in 2023[55] Expenses - Selling, general, and administrative expenses for the nine months ended September 30, 2024, totaled $47,912,000, compared to $43,560,000 for the same period in 2023, an increase of 10.8%[8] - Stock-based compensation expense rose to $3,276,000 for the nine months ended September 30, 2024, compared to $2,799,000 for the same period in 2023, marking a 17.0% increase[13] Debt and Credit Facilities - The 2021 Credit Agreement provides a revolving credit facility of $75 million, with $46,545 thousand available as of September 30, 2024 after accounting for outstanding draws and letters of credit[36] - As of September 30, 2024, the Company had outstanding debt of $28,255 thousand under the Revolving Facility, with a weighted average Term Benchmark loan rate of 7.43%[39] - The Company entered into a First Amendment to the 2021 Credit Agreement on April 26, 2023, extending the maturity date to April 26, 2028 and increasing the maximum incremental revolving loans from $25 million to $35 million[35] Taxation - The effective tax rate for the nine months ended September 30, 2024, was 49.5%, significantly higher than the 28.8% effective tax rate for the same period in 2023[48] - The company recorded a provision for income taxes totaling $1.4 million on pre-tax income of $2.8 million for the nine months ended September 30, 2024[48] Lease Obligations - Operating lease costs for the three months ended September 30, 2024, were $478,000, compared to $378,000 for the same period in 2023, representing a 26.4% increase[62] - Total lease costs for the nine months ended September 30, 2024, were $1,689,000, up from $1,359,000 in 2023, indicating a 24.3% increase[62] - Total undiscounted lease payments as of September 30, 2024, amounted to $9,586,000, with total lease liabilities at $6,401,000 after accounting for imputed interest[65]

Medical Device Market Overview - The medical device market is projected to exceed $600 billion by 2025, driven by an aging population, rising healthcare costs, and rapid technological advancements in AI and biotechnology [1] - Innovations are leading to the development of sophisticated devices that can diagnose and treat a wider range of conditions with greater precision and effectiveness [1] Tactile Systems Technology - Tactile Systems Technology focuses on at-home therapies for chronic disorders, including lymphedema and chronic pulmonary disease, with products like the Flexitouch Plus system and the new Nimbl™ therapy platform [2][3] - The Nimbl™ device is 40% smaller and 68% lighter than previous generations and connects with the Kylee™ digital application for tracking therapy progress [3] - The company reported a total revenue of $73.2 million for Q2 2024, a 7% increase year-over-year, with adjusted EBITDA of $9.1 million, a 49% increase [4] - Tactile Systems is expanding its sales force and marketing efforts to capitalize on the growing lymphedema market [5] - Analyst consensus rates Tactile Systems as a "Strong Buy" with a price target of $23.00, indicating a 62.20% upside [3][4][6] InfuSystem Holdings - InfuSystem is a national healthcare service provider specializing in outpatient care for medical device manufacturers, focusing on infusion pumps and related services [6] - The company recently entered into distribution agreements to expand its product offerings, including an exclusive deal for the Chemo Mouthpiece® and a partnership with Smith+Nephew [7] - InfuSystem reported revenue of $33.7 million for Q2 2024, a 6% increase year-over-year, with net income rising 64.8% to $0.7 million [8] - The company is pursuing strategic partnerships and acquisitions to broaden its market footprint, including a joint venture with Sanara MedTech Inc. [9] - Analyst consensus rates InfuSystem as a "Strong Buy" with a price target of $13.00, representing a 91.74% upside [8][9]

Core Viewpoint - Sanara MedTech Inc. has entered into an exclusive distribution agreement and minority investment in ChemoMouthpiece, LLC, aiming to enhance treatment options for oncology patients suffering from oral mucositis [1][2][3] Company Overview - Sanara MedTech Inc. focuses on developing medical technologies to improve clinical outcomes and reduce healthcare costs in surgical, chronic wound, and skincare markets [7] - InfuSystem Holdings, Inc. is a healthcare service provider that facilitates outpatient care for durable medical equipment, with a focus on oncology, pain management, and wound therapy [8] Transaction Details - Sanara invested $5 million for a 6.6% ownership stake in ChemoMouthpiece, which has developed a cryotherapy device for oral mucositis [3] - SI Healthcare Technologies, a joint venture between Sanara and InfuSystem, will exclusively distribute ChemoMouthpiece's products in the U.S. [3] - The distribution will target approximately 3,000 cancer centers through InfuSystem's existing sales team [3] Product Information - The Chemo Mouthpiece® device is designed to alleviate oral mucositis, a painful condition affecting 500,000 to 1,000,000 patients annually in the U.S. [4] - The estimated market size for oral mucositis treatment exceeds $600 million [4] - The device has received FDA 510(k) clearance and is expected to improve patient quality of life while reducing costs for oncology treatment centers [2][4] Strategic Importance - The partnership aims to leverage combined strengths in technology and operations to deliver effective products to patients [5] - The introduction of the Chemo Mouthpiece® aligns with Sanara's skincare strategy, which includes products targeting radiation dermatitis [2]

Financial Data and Key Metrics Changes - InfuSystem reported record net revenue of $33.7 million for Q2 2024, representing a 5.3% sequential growth and a 6.2% increase compared to Q2 2023 [4][6] - Adjusted EBITDA margin improved significantly to 18%, with adjusted EBITDA of $6.1 million, an increase of over $300,000 from the prior year [4][8] - Gross profit for Q2 2024 was $16.7 million, a 5% increase year-over-year, with a gross margin percentage of 49.5% [7] Business Line Data and Key Metrics Changes - Oncology segment revenue increased by $1.5 million, or 9%, driven by higher treatment volumes and improved cash collections [6] - Biomedical Services revenue rose by over $0.5 million, nearly 14%, as the GE contract reached full run rate [6] - Equipment rental and disposable medical supplies categories increased by over $800,000, or almost 13%, due to a new large customer [6] - Pain Management and Wound Care businesses each grew by over $300,000, with Wound Care growing at nearly 190% [6] Market Data and Key Metrics Changes - Operating cash flow for Q2 totaled $2.3 million, slightly below the prior year's amount but up nearly $2 million sequentially [9] - Net capital expenditures increased to $6.7 million, focused on new equipment for rental customers and increased volume in Oncology and Pain Management [9] Company Strategy and Development Direction - The company is focused on less capital-intensive revenue sources, such as Biomedical Services, and initiatives to increase pump utilization [10] - InfuSystem is investing in upgrading its information technology and business applications, with a total expected cost of $3 million to $4 million over 18 to 24 months [11] Management's Comments on Operating Environment and Future Outlook - Management reiterated guidance for high single-digit revenue growth and high teens adjusted EBITDA percentage for the year, expecting the second half to reflect growing momentum [21] - The company is optimistic about new opportunities in biomedical services and partnerships, including a significant biomedical device remediation project [14][25] Other Important Information - The company’s net debt increased to $34 million, with available liquidity of $40.3 million at the end of the quarter [10] - The ratio of total debt-to-adjusted EBITDA was 1.5 times, indicating manageable leverage [10] Q&A Session Summary Question: Comments on leasing activity in Negative Pressure Wound Therapy devices - Management clarified that leases from last year will remain in use until their useful life is over, while the new agreement with Smith+Nephew focuses on referral business [23] Question: Additional color on the biomedical business and GE relationship - Management indicated that new opportunities with GE are being explored, and there are several new partnerships outside of GE in the pipeline [25] Question: Expectations regarding the NOPAIN Act - Management expects the NOPAIN Act to drive revenue growth by increasing the number of customers utilizing non-opioid alternatives for pain management [28][29] Question: Share repurchase authorization details - Management confirmed that some shares were repurchased during the quarter, totaling over $200,000 [30][31] Question: Clarification on negative pressure business and device usage - Management explained that various devices can be used in home settings, and they aim to be device agnostic, allowing clinics to choose based on their preferences [34] Question: Trends in purchasing medical equipment - Management noted that the spike in equipment purchases was driven by a large rental customer and does not expect this level to continue [35]

Financial Performance - Net revenues for Q2 2024 reached $33.7 million, a 6.1% increase from $31.7 million in Q2 2023[8] - Gross profit for Q2 2024 was $16.7 million, compared to $15.8 million in Q2 2023, reflecting a gross margin improvement[8] - Operating income for Q2 2024 increased to $1.9 million, up from $1.2 million in Q2 2023[8] - Net income for Q2 2024 was $717,000, compared to $435,000 in Q2 2023, resulting in a net income per share of $0.03[8] - The company reported a comprehensive income of $716,000 for Q2 2024, compared to $607,000 in Q2 2023[8] - Total net revenue for the three months ended June 30, 2024, was $33.698 million, a 6.2% increase from $31.735 million in the same period of 2023[20] - The company reported a net income of $0.717 million for the three months ended June 30, 2024, compared to a net income of $0.435 million for the same period in 2023, reflecting an increase of 64.8%[49] - Basic earnings per share (EPS) for Q2 2024 was $0.03, up from $0.02 in Q2 2023, while diluted EPS also increased to $0.03 from $0.02[49] Assets and Liabilities - Total current assets as of June 30, 2024, were $32.9 million, an increase from $30.6 million as of December 31, 2023[7] - Total assets increased to $108.5 million as of June 30, 2024, compared to $102.9 million at the end of 2023[7] - Long-term debt rose to $34.2 million as of June 30, 2024, up from $29.1 million at the end of 2023[7] - Total liabilities increased to $55.0 million as of June 30, 2024, compared to $50.6 million at the end of 2023[7] - As of June 30, 2024, total stockholders' equity increased to $53,487,000 from $49,956,000 as of June 30, 2023, reflecting a growth of approximately 7.7%[9] - Total liabilities decreased from $59,386,000 as of June 30, 2023, to $59,303,000 as of June 30, 2024, showing a slight reduction[9] Cash Flow and Investments - Cash provided by operating activities for the six months ended June 30, 2024, was $2,686,000, an increase from $2,301,000 in the prior year[12] - Cash and cash equivalents decreased to $146,000 as of June 30, 2024, from $231,000 as of December 31, 2023[7] - The company reported a net cash used in investing activities of $7,114,000 for the six months ended June 30, 2024, compared to $5,390,000 in the prior year[12] - The company purchased medical equipment totaling $8,796,000 during the six months ended June 30, 2024, compared to $6,994,000 in the same period of 2023, representing an increase of approximately 25.8%[12] Revenue Segmentation - Patient services revenue recognized at a point in time accounted for 54.1% of total net revenues in Q2 2024, up from 52.6% in Q2 2023[20] - Device solutions revenue recognized at a point in time was $8.440 million, representing 25.0% of total revenues, compared to 24.7% in the prior year[20] - Total patient services revenue recognized over time was $18.242 million, which is a 9.3% increase from $16.697 million in the same quarter of 2023[20] - Total revenue accounted for under ASC 606 for the six months ended June 30, 2024, was $52.309 million, a 7.5% increase from $48.487 million in the same period of 2023[22] Debt and Financing - The Revolving Facility under the 2021 Credit Agreement has a gross availability of $75 million, with outstanding draws of $34,464,000, leaving an availability of $40,336,000 as of June 30, 2024[34] - The weighted-average Term Benchmark loan rate as of June 30, 2024, was 7.43%, while the actual ABR loan rate was 9.50%[38] - The Company entered into a First Amendment to the 2021 Credit Agreement, extending the maturity date to April 26, 2028, and increasing the maximum incremental revolving loans from $25 million to $35 million[33] - As of June 30, 2024, the Company was in compliance with all debt-related covenants under the 2021 Credit Agreement, as amended[33] Stock and Equity - The company approved a share repurchase program authorizing the repurchase of up to $20.0 million of its common stock through June 30, 2026, with approximately $0.3 million repurchased as of June 30, 2024[50] - The total fair value of shares vested during the six months ended June 30, 2024, was $747,525, compared to $571,105 for the same period in 2023[53] - The company had 562,512 stock options outstanding at June 30, 2024, with a weighted average exercise price of $7.17[56] Tax and Compliance - The effective tax rate for the three months ended June 30, 2024, was 45.2%, significantly higher than the 30.9% effective tax rate for the same period in 2023[46] - The Company recorded a provision for income taxes of $0.6 million on pre-tax income of $1.3 million for the three months ended June 30, 2024, resulting in an effective tax rate of 45.2%[46] - The company is not currently involved in any legal proceedings that could materially affect its financial condition[48]

Financial Data and Key Metrics Changes - First quarter revenue reached $32 million, marking a 5% increase year-over-year, driven by the Device Solutions segment and higher revenue from the GE Healthcare contract [72][108] - Gross profit for the first quarter was $16.5 million, a 10% increase from the prior year, with gross margin percentage at 51.5%, up 2.3% [29][74] - Adjusted EBITDA for the first quarter was $3.9 million, representing a decrease of $400,000 compared to the previous year [30][74] - Selling, general and administrative expenses totaled $17.3 million, an increase of 15% year-over-year, influenced by nonrecurring expenses and inflation [84] Business Line Data and Key Metrics Changes - The Patient Services segment revenue was slightly lower due to tough comparisons in Oncology and Wound Care, with Oncology experiencing higher billing volumes offset by lower per billing net revenue [4] - The Device Solutions unit saw a 16% year-over-year increase, with strong contributions from biomedical services and equipment sales [72] - Wound Care revenue showed a small increase despite strong prior year sales, with higher treatment revenue offsetting lower equipment sales [83] Market Data and Key Metrics Changes - The company has onboarded approximately 220,000 devices, with a focus on maintaining operational efficiencies as most devices are now in the system [7][9] - The company is seeing a steady stream of opportunities from partnerships with larger companies, particularly in the Biomed and Wound Care sectors [12][90] Company Strategy and Development Direction - The company is evolving into a platform services model, leveraging unique assets and skills to partner with other companies, which is expected to drive long-term growth [12][116] - The focus for 2024 is on maximizing profitability from the biomedical business and ramping up Wound Care initiatives, with expectations for significant contributions in the near future [80][88] - The company anticipates high single-digit revenue growth and adjusted EBITDA in the high teens for the year, with potential for double-digit growth in the future [92][96] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving revenue targets for the year, citing diverse growth initiatives across the business [81] - The company is positioned well to fund continued net revenue growth, supported by strong cash flow and liquidity reserves [78] - Management noted that the first quarter typically shows lower profitability due to seasonality and nonrecurring expenses, with expectations for improvement in subsequent quarters [125][126] Other Important Information - The company is investing in upgrading its information technology and business applications, including a full replacement of its main ERP application [31][111] - The company has a strong liquidity position, with $45.2 million available at the end of the quarter and a modest debt-to-EBITDA ratio of 1.3x [6] Q&A Session Summary Question: What were the reasons behind the 1% growth in the Oncology business? - Management indicated that the growth was impacted by a lower gross-to-net model realizable revenue compared to the previous year, which was an anomaly [45][46] Question: What is the long-term growth expectation for the company? - Management suggested that while long-term growth could be in the mid- to high single digits, there are opportunities for faster growth, particularly with new partnerships [16][41] Question: Are there other potential contracts similar to GE? - Management confirmed that while there are no contracts of the same magnitude as GE currently in the pipeline, there are several smaller agreements being pursued [127][128] Question: How does the company plan to manage G&A expenses moving forward? - Management noted that many of the nonrecurring expenses seen in Q1 will not repeat in future quarters, leading to expected improvements in G&A expenses [125][126] Question: What is the outlook for the Wound Care segment? - Management expressed confidence in the growth of the Wound Care segment, with significant contributions expected as initiatives ramp up [88][92]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q x Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 ¨ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from _____ to _____ Commission File Number: 001-35020 INFUSYSTEM HOLDINGS, INC. (Exact name of registrant as specified in its charter) Delaware 20-3341405 (State or Other Jurisdiction of Incorporation or O ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C., 20549 FORM 10-K _____________________________________________________________ x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 OR o ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________________ to ___________________ Commission File Number: 001-35020 ______________________ ...

InfuSystem Holdings, Inc. (NYSE:INFU) Q4 2023 Earnings Conference Call March 14, 2022 9:00 AM ET Company Participants Joe Dorame - Managing Partner Rich DiIorio - Chief Executive Officer Barry Steele - Chief Financial Officer Carrie Lachance - President & Chief Operating Officer Conference Call Participants Alex Nowak - Craig-Hallum Jim Sidoti - Sidoti & Company Operator Good day and welcome to the InfuSystem Holdings Incorporated reports Fourth Quarter and Fiscal Year 2023 Financial Results Conference Call ...