Healthcare Stock News Alert – InfuSystem Holdings Inc (NYSEMKT:INFU)
On Wednesday, InfuSystem Holdings Inc (NYSEMKT:INFU) closed at $2.10 with trading volume of 73,873.00 shares. The company fell -4.55% with market capitalization of 46.97M. During the year the lowest point at which share traded is $ 2.05 and hit the highest point at $ 2.20.
InfuSystem Holdings, Inc. (NYSE MKT: INFU), a leading national provider of infusion pumps and related services for the healthcare industry in the United States and Canada, stated financial results recently for the fourth quarter and full year ended December 31, 2016.
Full Year 2016 Results:
Net Revenue for the full year ended December 31, 2016 and 2015 was $70.50M. Although net revenue was consistent with the prior year, we did experience a boost of 9% in Product Sales offset by a decrease of 1% in rentals, mostly because of the Company’s implementation of SE1609 from CMS, which resulted in our rental revenues being reduced by about $2.60M for the second half of 2016.
Gross profit reduced $4.90M, or 10%, contrast to the prior year, mostly attributable to the increase in cost of revenues – product, service and supply costs of $2.40M, broken down as supplies and material costs of $0.80M, service costs of $0.80M, disposable costs of $0.60M and freight of $0.20M, while the increase in cost of revenues – pump depreciation, sales and disposals of $2.40M was because of $1.50M of additional pump depreciation as a result of the record number of pump deployments in 2016 and the remaining $0.90M because of the raised costs of pumps sold during 2016 with lower margin. Gross profit as a percentage of net revenues reduced to 63% contrast to the prior year at 70%.
Net Collected Rental Revenue was $56.60M, a decrease of 2%, contrast to last year’s $57.70M. Bad debt raised $0.40M contrast to the prior year from 8% of Rental Revenue to 9% of Rental Revenue in 2016. This change is mostly because of the Company’s implementation of SE1609 from CMS, which was implemented July 1, 2016. As a result of this change to a portion of our billing procedures, we reserved for potential bad debt, resulting in additional expense of about $0.70M.
Year-to-date selling and marketing expenses reduced to $9.70M, or 7%, contrast to December 31, 2015 and reduced as a percentage of net revenues to 14% contrast to the prior year at 15%. The decrease of $0.80M was mostly because of a reduction for salaries and benefits of $0.50M and travel expenses of $0.20M.
General and administrative expenses year-to-date were $24.60M, a boost of 4% from $23.80M for the year ended December 31, 2015. The increase in G&A expenses as compared to the same prior year period was mainly attributable to increases in spending on Information Technology (“IT”) and pain administration programs of $1.70M offset by decreases in compensation and employee personnel of $0.90M. G&A expenses during 2016 and 2015 consisted mainly of accounting, administrative, third-party payor billing and contract services, customer service, nurses on staff, new product services, and service center personnel salaries, fringe benefits and other payroll related items, professional fees, legal fees, stock-based compensation, insurance and other miscellaneous items.
Net income for the year reduced from $2.80M, or $0.12 per diluted share, to a loss of ($0.2) million, or ($0.01) per diluted share, in the current year. Adjusted net income for the year, adding back integration costs associated with the Ciscura acquisition, costs associated with our restatement and other income and expenses, was $0.30M, or $0.01 per diluted share, contrast to $4.40M, or $0.19 per diluted share, in the same prior year period.
For the twelve months ended December 31, 2016, Adjusted EBITDA reduced $4.20M, or 24% to $13.0M, contrast to $17.20M in the same prior year period mostly because of costs associated with the implementation of SE1609 and the net impact of our restatement. The Company utilizes Adjusted EBITDA as a means to measure its operating performance.
Fourth Quarter Results:
Net Revenue in the fourth quarter of 2016 was $16.90M, a decrease of $1.90M, or 10%, contrast to the same quarter ended December 31, 2015. During the period, net revenue from rentals was $14.80M, a decrease of $1.30M, or 8%, contrast to the same prior year period. As talked about in formerly, the implementation of SE1609 influenced our results for the fourth quarter of 2016 by a decrease of about $1.30M. Product sales during the quarter totaled $2.0M, a decrease of $0.6 million, or 23.0%, contrast to $2.60M in the fourth quarter of 2015.
Selling and marketing expenses were $2.0M, a decrease of 14%, contrast to $2.30M for the three months ended December 31, 2015. As a percentage of revenue, selling and marketing expenses declined from 13% to 12% contrast to the same prior year period. The decrease was mostly because of a reduction in salaries and benefits.
G&A expenses were $6.30M, a boost of 3%, contrast to $6.10M for the quarter ended December 31, 2015. The increase in G&A expenses as compared to the same prior year period was mainly attributable to increases in spending on Information Technology (“IT”) of $0.20M and outside services of $0.40M, which represents costs as a result of our restatement, offset by decreases in stock compensation of $0.10M, compensation and employee personnel of $0.20M and service and repair of $0.10M. As a percentage of revenue, G&A expenses raised slightly as a percentage of revenue from 33% to 37% in the fourth quarter of 2016, mostly attributable to the decline in revenue on the pricing impact of SE1609.
Net income in the fourth quarter reduced to a loss of ($0.50) million, or ($0.02) per diluted share, contrast to net income of $1.50M, or $0.07 per diluted share, for the fourth quarter of last year.
For the fourth quarter, Adjusted EBITDA reduced $2.30M, or 44% to $2.90M, contrast to $5.20M in the same prior year period. The Company utilizes Adjusted EBITDA as a means to measure its operating performance.
Financial Condition:
Net cash offered by operations for the full year ended December 31, 2016 was $7.90M contrast to net cash offered by operations of $7.10M for the prior year period.
As of December 31, 2016, the Company had cash and cash equivalents of $3.40M and $9.90M of availability on its revolving line-of-credit contrast to $0.80M of cash and cash equivalents and $9.9 million of availability on its revolving line-of-credit as of December 31, 2015. Total debt less cash on hand (“Net Debt”) as of December 31, 2016 was $34.10M contrast to the previous fiscal year of $34.20M.
Technical Analysis:
The Company has price-to-cash ratio of 0.66 and EPS ratio of 0.08. The company net profit margin is 0.40% and gross profit margin is 65.30%. The stock has shown quarterly performance of -6.67% and a half-year performance stands at -23.64%. The stock price is moving down from its 20 days moving average with -5.68% and isolated negatively from 50 days moving average with -7.72%.
Analyst recommendation for this stock stands at 1.00.