• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Advertise
  • Subscribe

MassDevice

The Medical Device Business Journal — Medical Device News & Articles | MassDevice

  • Latest News
  • Technologies
    • Artificial Intelligence (AI)
    • Cardiovascular
    • Orthopedics
    • Neurological
    • Diabetes
    • Surgical Robotics
  • Business & Finance
    • Wall Street Beat
    • Earnings Reports
    • Funding Roundup
    • Mergers & Acquisitions
    • Initial Public Offering (IPO)
    • Legal News
    • Personnel Moves
    • Medtech 100 Stock Index
  • Regulatory & Compliance
    • Food & Drug Administration (FDA)
    • Recalls
    • 510(k)
    • Pre-Market Approval (PMA)
    • MDSAP
    • Clinical Trials
  • Special Content
    • Special Reports
    • In-Depth Coverage
    • DeviceTalks
  • Podcasts
    • MassDevice Fast Five
    • DeviceTalks Weekly
    • OEM Talks
      • AbbottTalks
      • Boston ScientificTalks
      • DeviceTalks AI
      • IntuitiveTalks
      • MedtechWOMEN Talks
      • MedtronicTalks
      • Neuro Innovation Talks
      • Ortho Innovation Talks
      • Structural Heart Talks
      • StrykerTalks
  • Resources
    • About MassDevice
    • DeviceTalks
    • Newsletter Signup
    • Leadership in Medtech
    • Manufacturers & Suppliers Search
    • MedTech100 Index
    • Videos
    • Webinars
    • Whitepapers
    • Voices
Home » Electromed, Inc. Reports 2011 Fourth Quarter and Year-End Results

Electromed, Inc. Reports 2011 Fourth Quarter and Year-End Results

September 14, 2011 By MassDevice Contributors Network

NEW PRAGUE, Minn.–(BUSINESS WIRE)–Electromed, Inc. (NASDAQ: ELMD) today announced financial results for
the three months and fiscal year ended June 30, 2011. Net revenues for
the three months ended June 30, 2011 were approximately $4,954,000, a
36.7% increase compared to net revenues of approximately $3,624,000 for
the same period last year. Net revenues for the fiscal year ended June
30, 2011 were approximately $19,004,000, a 32.9% increase compared to
net revenues of approximately $14,304,000 for the same period last year.

The Company also announced net income of approximately $165,000, or
$0.02 per basic and diluted share, for the three months ended June 30,
2011, compared to net income of approximately $71,000, or $0.01 per
basic and diluted share, for the same three-month period last year. For
the fiscal year ended June 30, 2011, net income was $1,056,000, or $0.14
per basic and $0.13 per diluted share, compared to net income of
approximately $916,000, or $0.15 per basic and diluted share, for the
same period last year. Net revenues increased primarily due to an
expansion of the sales force. Net income results were attributable to
higher net revenues, offset by expenses related to increases in sales
force, support and production personnel, and an expansion of marketing
and research and development activities. In addition, earnings per share
were affected by an increase to the number of outstanding shares of
Company common stock as compared to the prior-year periods, which was
attributable to the Company’s completion of its initial public offering
in August 2010. Including the underwriter’s over-allotment option, a
total of 1,900,000 shares of Company common stock were registered and
sold in the initial public offering.

Robert Hansen, Chairman and CEO, commented on the Company, saying,

“Electromed, Inc. is a rapidly growing company. It is using a
portion of the capital received from its IPO to grow its sales force and
support its infrastructure.
We believe these actions are
essential investments in driving longer-term profitable results.
We
have also continued to make important investments in research and
development.
We believe that new innovations are the surest path
to sustainable growth and higher profits.
We have pursued these
investments while maintaining solid profitability and a strong balance
sheet.”

Gross profit increased to approximately $3,600,000, or 72.7% of net
revenues, for the three months ended June 30, 2011, and $13,778,000, or
72.5% of net revenues, for the fiscal year ended June 30, 2011. For the
three months and fiscal year ended June 30, 2010, gross profit was
approximately $2,698,000, or 74.4% of net revenues, and $10,378,000, or
72.6% of net revenues, respectively. The increase in gross profit
dollars resulted primarily from the increase in sales volume. Gross
profit percentage was consistent for the year ended 2011 from 2010. The
slight decrease in gross profit percentage for the three-month period
ended June 30, 2011 primarily resulted from lower reimbursement from the
mix of referrals as compared to the three-month period ended June 30,
2010. Factors such as diagnoses that are not assured of reimbursement,
along with insurance programs which present lower allowable
reimbursement amounts (for example, state Medicaid programs) affect
average reimbursement received on a short-term basis and tend to
fluctuate margins slightly on a quarterly basis.

Operating expenses, which consist of selling, general, and
administrative expenses and research and development expenses, were
approximately $3,192,000 and $11,908,000, respectively, for the three
months and fiscal year ended June 30, 2011, an increase of approximately
29.9% over total operating expenses for the three-month period last year
and an increase of approximately 38.8% over total operating expenses for
the 2010 fiscal year. These planned increases resulted from higher
payroll and marketing expenses related to increasing the size of the
sales team, patient training costs related to a higher sales volume,
increased expenses relating to being a newly public company, and
increased research and development expenses.

Total cash was approximately $4,092,000 as of June 30, 2011. For the
fiscal year ended June 30, 2011, cash provided by financing activities
was approximately $6,007,000, consisting of approximately $6,364,000 net
proceeds received in August and September 2010 in connection with the
Company’s initial public offering, $26,000 from exercise of warrants,
and $60,000 in proceeds from subscription notes receivable. This was
offset by principal payments on long-term debt of approximately
$436,000. An aggregate of $1,111,000 was used for investing activities
during the 2011 fiscal year, including $659,000 in payments for patent
and trademark costs, primarily relating to defense of the SmartVest®
trademark, and $452,000 in net expenditures for property and equipment.
The Company’s receivable position increased 45.9% to approximately
$9,593,000, reflecting the significant sales growth over the past fiscal
year.

About Electromed, Inc.
Electromed, Inc., founded in 1992 and
headquartered in New Prague, Minnesota, manufactures, markets, and sells
products that provide airway clearance therapy, including the SmartVest®
Airway Clearance System and related products, to patients with
compromised pulmonary function. Further information about the Company
can be found at www.Electromed.com.

Cautionary Statements
Certain statements found in
this release may constitute forward-looking statements as defined in the
U.S. Private Securities Litigation Reform Act of 1995. Forward-looking
statements reflect the speaker’s current views with respect to future
events and financial performance and include any statement that does not
directly relate to a current or historical fact. The forward-looking
statements in this release include those relating to the Company’s
business strategy and intent to maximize long-term growth and profits.

Forward-looking statements and the Company’s expectations regarding
gross margins, and can generally otherwise be identified by the words
“believe,” “expect,” “anticipate” or “intend” or similar words.
Forward-looking statements cannot be guaranteed and actual results may
vary materially due to the uncertainties and risks, known and unknown,
associated with such statements. Examples of risks and uncertainties for
Electromed include, but are not limited to, the impact of emerging and
existing competitors, the effectiveness of our sales and marketing
initiatives, the success of our research and development activities,
changes to reimbursement programs, as well as other factors described
from time to time in our reports to the Securities and Exchange
Commission (including our Annual Report on Form 10-K). Investors should
not consider any list of such factors to be an exhaustive statement of
all of the risks, uncertainties or potentially inaccurate assumptions
investors should take into account when making investment decisions.
Shareholders and other readers should not place undue reliance on
“forward-looking statements,” as such statements speak only as of the
date of this release.

 

 

Electromed, Inc. and Subsidiary
Condensed Consolidated Balance Sheets
   

 

 
June 30 June 30
2011 2010
Assets (Unaudited)
Current Assets
Cash and cash equivalents $ 4,091,739 $ 610,727

Accounts receivable (net of allowances for doubtful accounts of
$45,000)

9,593,105 6,577,002
Inventories 1,855,957 1,470,775
Prepaid expenses and other current assets 371,257 269,193
Deferred income taxes  

722,000     514,000

 

Total current assets 16,634,058 9,441,697
Property and equipment, net 2,807,082 2,688,941
Finite-life intangible assets, net 1,235,828 1,055,776
Deferred common stock offering costs – 828,034

Other assets

  191,964    

128,789  
Total assets

$

20,868,932   $ 14,143,237  

 
Liabilities and Equity
Current Liabilities
Revolving line of credit $ 1,768,128 $ 1,768,128
Current maturities of long-term debt 438,267

397,886

Accounts payable 733,621 1,239,827
Accrued compensation 868,229 665,083
Warranty reserve 444,096 363,277
Other accrued liabilities   161,166

 

  68,097  

Total current liabilities

4,413,507 4,502,298
Long-term debt, less current maturities 1,582,102 2,033,325
Deferred income taxes  

167,000     145,000

 

Total liabilities   6,162,609    

6,680,623  
Commitments and Contingencies
 
Equity
Electromed, Inc. equity:
Common stock, $0.01 par value; authorized: 13,000,000 shares;

issued and outstanding: 8,100,485 and 6,187,885 shares, respectively

81,005

61,879

Additional paid-in capital

12,794,368

6,685,362

Retained earnings

1,853,450

797,873

Common stock subscriptions receivable for shares outstanding of

15,000 and 48,500 respectively   (22,500 )  

(82,500 )

Total equity

 

14,706,323     7,462,614

 

Total liabilities and equity $ 20,868,932

 

$ 14,143,237  
 

 

Electromed, Inc. and Subsidiary
Condensed Consolidated Statements of Income

(Unaudited)

 

  For the Three Months Ended     For the Fiscal Year Ended
June 30, June 30,
2011   2010 2011   2010
 

Net revenues

$

4,953,851

$

3,624,168

$

19,003,507 $ 14,303,848
Cost of revenues

 

1,353,463   926,439     5,226,001  

3,925,557

Gross profit

 

3,600,388

 

2,697,729    

13,777,506

  10,378,291
 
Operating expenses
Selling, general and administrative 2,847,420 2,301,805 10,873,904 7,981,338
Research and development   344,333   155,522     1,033,693   600,986
Total operating expenses   3,191,753   2,457,327  

 

11,907,597   8,582,324
Operating income 408,635 240,402 1,869,909 1,795,967
Interest expense, net of interest income of $2,112, $1,441, $10,923,
and $6,417 respectively
  40,403   57,754     191,332   263,431
Net income before income taxes 368,232 182,648 1,678,577 1,532,536
 
Income tax expense   (203,000 )   (112,000 )    

(623,000 )

 

(599,000 )
Net income 165,232 70,648 1,055,577 933,536
Less: Net income attributable to non-controlling interest   –   –  

 

–   (17,198

)

Net income attributable to Electromed, Inc. $ 165,232 $ 70,648 $  

1,055,577

$

916,338
 
Earnings per share attributable to Electromed, Inc. common
shareholders:
Basic $ 0.02 $ 0.01 $  

0.14

$

0.15

Diluted

$

0.02

$

0.01

$

  0.13 $ 0.15
 
Weighted-average Electromed, Inc. common shares outstanding:
Basic   8,100,281   6,107,445     7,816,367   6,081,030
Diluted   8,117,883   6,145,076    

7,841,006

 

6,114,919
 
   
Electromed, Inc. and Subsidiary
Condensed Consolidated Statements of Cash Flows
(Unaudited) For the Fiscal Year Ended
June 30,

2011

   

2010

Cash Flows From Operating Activities
Net income

$

1,055,577 $ 933,536

Adjustments to reconcile net income to net cash provided by (used
in) operating activities:

Depreciation 335,620 298,928
Amortization of finite-life intangible assets 113,850 52,820
Amortization of debt issuance costs 31,463 53,404
Share-based compensation expense 156,169 168,895
Deferred income taxes (186,000 ) (149,000 )
Loss on disposal of property and equipment 26,225 4,258
Issuance of common stock for payment of services – 22,500
Changes in operating assets and liabilities:

Accounts receivable

(3,016,103

) (228,856 )

Inventories

(385,182

) (292,086 )

Prepaid expenses and other assets

(193,342

) (111,345 )

Accounts payable and accrued liabilities

  646,619     (145,117 )
Net cash provided by (used in) operating activities   (1,415,104 )   607,937  
 

Cash Flows From Investing Activities
Expenditures for property and equipment (466,315 ) (269,616 )
Purchase of noncontrolling interest in Electromed Financial, LLC – (125,000 )
Expenditures for finite-life intangible assets (659,210 ) (514,505 )
Proceeds on the sale of fixed assets

 

14,812     –  
Net cash used in investing activities   (1,110,713 )  

(909,121 )
 
Cash Flows From Financing Activities
Net borrowings (payments) on revolving line of credit – 1,768,128
Principal payments on long-term debt including capital lease
obligations
(435,968 ) (3,648,744 )
Proceeds from long-term debt – 2,520,000
Noncontrolling interest distributions paid – (18,417 )
Payments of deferred financing fees (6,716 ) (75,780 )
Proceeds from warrant exercises 25,800 390,832

Proceeds from sales of 1.9 million shares of common stock, net of
offering costs of $1,236,287

6,363,713

–

Payments of deferred offering costs – (417,550 )
Proceeds from subscription notes receivable 60,000 9,000
Income tax benefit related to exercise of stock warrants   –

 

  22,526  

Net cash provided by (used in) financing activities

 

6,006,829     549,995

 

Net increase in cash and cash equivalents 3,481,012 248,811
Cash and cash equivalents
Beginning of period   610,727     361,916  
End of period $ 4,091,739

 

$ 610,727  

Contacts

Electromed, Inc.
Robert D. Hansen, 952-758-9299
Chairman
and Chief Executive Officer
[email protected]
or
The
Event Group, Incorporated

Pankti Shah, 763-548-1304
Director
of Strategic Marketing
[email protected]

Filed Under: MassDevice Earnings Roundup, Wall Street Beat Tagged With: Electromed, Q2

More recent news

  • Data backs DermaSensor skin cancer detection device
  • GE HealthCare expands digital imaging portfolio with enhanced MIM Encore software
  • Accelus wins FDA clearance for MRI compatibility of FlareHawk spinal implants
  • Presidio wins FDA IDE for ultra-low frequency neuromod, hires new CFO
  • Epiminder study backs implantable EEG tech

Primary Sidebar

“md
EXPAND YOUR KNOWLEDGE AND STAY CONNECTED
Get the latest med device regulatory, business and technology news.

DeviceTalks Weekly

See More >

MEDTECH 100 Stock INDEX

Medtech 100 logo
Market Summary > Current Price
The MedTech 100 is a financial index calculated using the BIG100 companies covered in Medical Design and Outsourcing.
MDO ad

Footer

MASSDEVICE MEDICAL NETWORK

DeviceTalks
Drug Delivery Business News
Medical Design & Outsourcing
Medical Tubing + Extrusion
Drug Discovery & Development
Pharmaceutical Processing World
MedTech 100 Index
R&D World
Medical Design Sourcing

DeviceTalks Webinars, Podcasts, & Discussions

Attend our Monthly Webinars
Listen to our Weekly Podcasts
Join our DeviceTalks Tuesdays Discussion

MASSDEVICE

Subscribe to MassDevice E-Newsletter
Advertise with us
About
Contact us

Copyright © 2025 · WTWH Media LLC and its licensors. All rights reserved.
The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of WTWH Media.

Privacy Policy