MADISON HEIGHTS (WWJ) — InfuSystem Holdings Inc. (NYSE: INFU) Tuesday reported net income of $649,000 or 3 cents a share in the third quarer ended Sept. 30. That’s up from $33,000 or less than a penny a share in the third quarter of 2012.
Revenue for the quarter was $15.7 million, up from $14.2 million a year earlier.
For the nine months, net income was $805,000 or 4 cents a share, vs. a loss of $1.7 million or 8 cents a share in the first nine months of 2012.
Revenue for the nine months was $45.1 million, up from $42.6 million a year earlier.
InfuSystem is a national provider of infusion pumps and related services for the healthcare industry in the United States.
“The Company continues to build revenue momentum,” said Eric Steen, CEO. “Our core IV pump rentals business again shows strong quarter-to-quarter gains, and we have also made significant progress on information technology initiatives that increase electronic connectivity with our customers. Savings generated by lowered SG&A expenses will be used to foster additional IT investments. Also of note, our expansion efforts in new product initiatives featuring Smart pumps and post-surgical pain management continue to grow. Our new Houston pump service center will open this month, offering expedited customer response and increased device utilization. It is also expected to save a quarter million dollars in air shipments alone in 2014.”
The increase in revenues was largely related to an 11 percent increase in rental revenue for the quarter and a 7 percent increase year to date. The increase in rental revenues was primarily related to the addition of larger customers, increased penetration into existing customer accounts, the increase in the colorectal cancer and other cancer patients treated with the company’s services and the continuation of the revision to claims processing guidelines by a major group of third-party payors.
Steen also reaffirmed the company’s guidance of high single digit revenue growth in 2014.
“As evidenced by the company’s receiving offers to provide external infusion pumps and supplies in all nine of the metropolitan statistical areas put out to bid by CMS, InfuSystem is well-positioned to take advantage of emerging opportunities as they appear,” Steen said. “We offer the most cost-effective model to deliver infusion therapy at home as an extension of in-clinic infusion therapy. Despite initial enrollment difficulties, we fully expect The Affordable Care Act will spur continued market expansion, especially for treatment of multiple therapies and disease states.”
In the third quarter, general and administrative expenses fell to $4.6 million from $5.3 million a year earlier. General and administrative expenses have decreased from 37 percent of revenue to 29 percent year over year. The decrease was primarily attributed to a reduction in prior year professional fees of $300,000 pertaining to additional legal and outside service fees as a result of the special meeting and changes in the composition of the board of directors and current year reductions of $400,000 in other general and administrative cost savings.
During the nine months ended Sept. 30, general and administrative expenses fell to $14.6 million from $17.7 million a year earlier. The decrease between these periods was primarily related to prior year professional service and other costs for the Concerned Stockholder Group, which totaled approximately $2.3 million; severance payments for a former CEO amounted to $1 million; $600,000 was recorded during the three months ended March 31, 2012 for retention payments to key employees and a reduction in current year depreciation of approximately $400,000 partially offset by $1.3 million of previously recognized stock compensation expense that was reversed due to the forfeiture and failure to meet the requisite service period.
“The company continues to improve its overall financial strength and strategic flexibility by implementing effective cost management techniques, lowering total debt by approximately $3.7 million since year-end 2012, and taking advantage of growth opportunities in the rental services sector,” said InfuSystem CFO Jonathan P. Foster.
Selling and marketing expenses were $2.4 million for the quarter, unchanged from a year earlier. For the nine months ended Sept. 30, selling and marketing expenses fell to $7.3 million from $7.6 million a year earlier. The decrease in selling and marketing expenses was mainly attributed to lower travel, entertainment and salaries and commissions.
More at http://www.infusystem.com.