InfuSystem(INFU) - 2025 Q1 - Quarterly Report

Revenue Performance - Net revenues for Q1 2025 were $34.7 million, an increase of $2.7 million, or 8.5%, compared to Q1 2024[85] - Patient Services segment net revenue was $20.8 million, up $2.2 million, or 11.7%, driven by increased treatment volume and third-party payer collections[86] - Oncology revenue increased by $1.7 million, or 10.3%, while Pain Management revenue rose by $0.1 million, or 8.7%, and Wound Care treatment revenue surged by $0.5 million, or 105.2%[86] - Device Solutions segment net revenue was $15.8 million, an increase of $707,000 compared to the previous year[84] - Device Solutions net revenue for Q1 2025 was $13.9 million, a 4.0% increase from the prior year, driven by a 19.2% rise in rental revenue[87] Profitability - Gross profit for the total company was $19.2 million, an increase of $2.7 million, or 16.4%, from $16.5 million in Q1 2024[84] - Gross profit for Q1 2025 increased to $19.2 million, up 16.3% from $16.5 million in Q1 2024, with a gross margin improvement to 55.2%[88] - Patient Services gross profit rose to $13.2 million, a 7.4% increase year-over-year, despite a decrease in gross margin to 63.5%[89] - Device Solutions gross profit reached $6.0 million, a 42.4% increase, with gross margin improving to 42.9%[90] - Operating income improved to $618,000 in Q1 2025, compared to an operating loss of $845,000 in Q1 2024[84] - Net loss decreased to $267,000 in Q1 2025 from a net loss of $1.1 million in Q1 2024, reflecting an improvement of $845,000[84] Expenses - Selling and marketing expenses decreased by 11.6% to $3.0 million, representing 8.6% of net revenues, down from 10.6%[91] - General and administrative expenses increased by 11.8% to $15.3 million, including a one-time severance expense of $1.0 million for the outgoing CEO[92] Cash Flow and Liquidity - Net cash provided by operating activities was $1.8 million in Q1 2025, compared to $0.4 million in Q1 2024, reflecting a $1.4 million favorable difference[100] - Net cash used in investing activities increased to $2.7 million in Q1 2025, primarily due to a $1.7 million increase in medical equipment purchases[102] - As of March 31, 2025, the company had $47.6 million in available liquidity, down from $51.4 million at the end of 2024[96] - The company repurchased approximately $4.1 million worth of shares under its Share Repurchase Program as of March 31, 2025[99] - Net cash provided by financing activities for Q1 2025 was $1.9 million, up from $0.6 million in Q1 2024, driven by $4.8 million in net revolving line of credit borrowings[103] - Cash used for common stock repurchase in Q1 2025 totaled $2.9 million, with an additional $0.2 million for statutory withholding on employee stock compensation[103] Financial Instruments and Risks - The company had interest rate derivative contracts with a notional value of $20 million as of March 31, 2025, unchanged from December 31, 2024[106] - The company settled two outstanding interest rate swap agreements indexed to USD LIBOR and entered into a new swap agreement indexed to SOFR with a notional value of $20 million[110] - The new interest rate swap agreement matches the expiration date of the 2021 Credit Agreement, extending past the term of the settled agreements by approximately 26 months[110] - The company is exposed to market risks from changes in foreign currency exchange rates and short-term interest rates, primarily related to its debt obligations under the 2021 Credit Agreement[105] - There have been no material changes to the company's critical accounting policies since the last annual report filed on Form 10-K for the year ended December 31, 2024[104] - The company did not have any foreign currency derivative contracts outstanding during the three months ended March 31, 2025[106] - A change of 50% in the market rate of SOFR would not have a material impact on the company's financial results[110] - The company believes that the accounting estimates employed are appropriate, but actual results could differ from original estimates, requiring future adjustments[104] Strategic Initiatives - The company continues to focus on expanding its payer networks, which may slightly reduce aggregate billed revenues but increase overall collected revenues[80] - The partnership with SI Healthcare Technologies, LLC aims to deliver a complete wound care solution to improve patient outcomes and satisfaction[82] - The company plans to pursue acquisitions of smaller healthcare service providers to enhance its market access and operational scale[82]