Financial Data and Key Metrics Changes - Revenue for Q1 2025 increased by 8.5% year-over-year, totaling $34.7 million, with a gross profit of $19.2 million, representing a 16% increase from the prior year [12][15] - Adjusted EBITDA rose to $6.3 million, a 64% increase year-over-year, resulting in an adjusted EBITDA margin of 18.2%, the highest for a first quarter since 2021 [8][17] - Operating cash flow improved to $1.8 million, nearly fourfold compared to the previous year [8][18] Business Line Data and Key Metrics Changes - Patient Services segment revenue increased by 11.7%, contributing $2.2 million to the overall revenue growth, driven by higher treatment volumes and improved collections [12][13] - Device Solutions segment revenue grew by 4%, with increased rental revenues offset by lower biomedical services revenue [12][14] - Oncology revenue increased by 10.3%, wound care treatment revenue surged by 133%, while pain management revenue rose by 8.8% [13] Market Data and Key Metrics Changes - The company is experiencing growth in its partnerships with major medical device companies, which is expected to enhance its market position [5][23] - The company anticipates continued revenue growth in the range of 8% to 10% for the full year 2025 [24] Company Strategy and Development Direction - The company is focused on improving profitability and operational efficiencies, particularly through process improvements and technology upgrades [9][10][22] - Future growth is expected to come from less capital-intensive business lines, with a focus on wound care and biomed services [19][24] - The transition in leadership is seen as an opportunity to reevaluate business strategies and align resources with growth opportunities [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate challenges and capitalize on growth opportunities, particularly in the healthcare solutions space [5][6] - The company is optimistic about the future, with expectations for continued revenue growth and improved profitability [24] Other Important Information - The company incurred approximately $500,000 in expenses related to IT system upgrades during Q1 2025, which are expected to continue into early 2026 [9][25] - Net debt increased by $3.8 million during the quarter, primarily due to stock repurchases [20] Q&A Session Summary Question: Are the excellent results a result of Carrie taking over? - Management clarified that the results are due to years of work by Carrie on the operational side, leading to improved profitability [27] Question: Thoughts on tariff impact? - Management indicated limited exposure to tariffs, with the ability to mitigate potential price increases through customer pricing adjustments [30][32] Question: Opportunities in biomed services? - Management acknowledged the potential for additional customers in biomed services and is actively exploring these opportunities [34] Question: Estimation of gross margins for the rest of the year? - Management suggested that the current gross margin may be a high watermark, with expectations for stabilization rather than further increases [40] Question: Oncology business growth and future expectations? - Management noted that the recent growth was driven by improved revenue cycle processes and collections, with expectations for continued volume growth [46] Question: Device Solutions gross margin improvement? - Management attributed the growth to the rental business and expressed a bullish outlook for future margins in this segment [52] Question: Impact of proposed budget cuts? - Management does not foresee risks from proposed budget cuts, citing stability in the home care market [53][55] Question: IT upgrade costs and timeline? - Management confirmed that the $2.5 million in costs for the IT upgrade will taper off significantly after the first quarter of 2026 [56] Question: Tax rate and cash tax payments? - Management explained that the high tax rate is due to non-deductible expenses and that most tax provisions are deferred, with minimal cash tax payments currently [59]

Financial Data and Key Metrics Changes - Revenue for the first quarter of 2025 increased by 8.5% year-over-year, totaling $34.7 million, with adjusted EBITDA rising by 64% to $6.3 million [7][13][17] - Adjusted EBITDA margin improved to 18.2%, up from 12.1% in the previous year [10][17] - Operating cash flow reached $1.8 million, nearly four times higher than the prior year [9][18] Business Line Data and Key Metrics Changes - Patient Services segment revenue increased by 11.7%, contributing $2.2 million to the overall revenue growth, while Device Solutions segment revenue grew by 4% [13][14] - Oncology revenue rose by 10.3%, wound care treatment revenue surged by 133%, and pain management increased by 8.8% [14] - Device Solutions growth was driven by higher rental revenues, partially offset by lower biomedical services revenue [14] Market Data and Key Metrics Changes - The company is experiencing growth in various markets, particularly in oncology and wound care, indicating a robust demand for its services [14][22] - The company has established partnerships with major medical device companies, enhancing its market position [5][22] Company Strategy and Development Direction - The company aims to improve profitability and operational efficiencies while focusing on growth opportunities in wound care and biomed [21][24] - Future revenue growth is expected to be less capital-intensive, with a focus on leveraging existing infrastructure [19][24] - The company plans to complete a major technology system upgrade by early 2026, which is anticipated to enhance operational efficiencies [11][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, citing a strong start to 2025 and a continuation of positive trends from 2024 [6][9] - The company expects full-year revenue growth of 8% to 10% and an adjusted EBITDA margin above 18.8% [17][24] - Management highlighted the importance of improving the profitability profile and aligning costs with growth opportunities [21][24] Other Important Information - The company incurred approximately $500,000 in expenses related to IT system upgrades during the first quarter [10][16] - Net capital expenditures for the first quarter were $2.6 million, significantly higher than the previous year's $400,000 [18][19] - The company maintains strong liquidity, with over $47.6 million available as of March 31, 2025 [20] Q&A Session Summary Question: Are the excellent results due to Carrie taking over? - Management clarified that the results are a culmination of years of work by Carrie and the team, not solely due to the leadership change [27] Question: Thoughts on tariff impact? - Management indicated limited exposure to tariffs, as most costs are related to personnel and depreciation rather than material purchases [31][33] Question: Opportunities in biomed services? - Management acknowledged the potential for growth in biomed services and is focused on leveraging existing infrastructure to attract additional customers [35] Question: Estimation of gross margins for the rest of the year? - Management suggested that the current gross margin may be a high watermark and expected stabilization rather than further increases [40] Question: Oncology business growth and future expectations? - Management noted that the recent growth was driven by improved revenue cycle processes and collections, with expectations for continued volume growth [46][47] Question: Device Solutions gross margin improvement? - Management attributed the growth to the rental business and indicated a positive outlook for future margins in this segment [51][53] Question: Impact of proposed budget cuts by the new administration? - Management expressed confidence that the company is well-positioned in the home care market and does not foresee significant risks from budget cuts [54][56] Question: IT upgrade costs and timeline? - Management confirmed that the $2.5 million in costs for the IT upgrade will taper off significantly after the first quarter of 2026 [57][66] Question: Tax rate and cash tax payments? - Management explained that the high tax rate was due to non-deductible expenses and that most tax provisions are deferred, with minimal cash tax payments currently [58][60]