Electromed Inc (ELMD, Financial), a leader in innovative airway clearance technologies, released its financial results for the first quarter of fiscal year 2024 on November 7, 2023. The company reported a significant increase in net revenue, which grew by 16% to $12.3 million, up from $10.7 million in the same quarter of the previous fiscal year. This growth was attributed to an increase in referrals, approvals, and reimbursement rates.
Financial Performance Overview
The company's direct homecare business saw a year-over-year increase of 15.8% in revenue, reaching $11.2 million. This was largely due to an increase in direct sales representatives, with the field sales force totaling 59 at quarter end, 51 of whom were direct sales representatives. The annualized homecare revenue per weighted average direct sales representative was $876,000, aligning with the company's target range.
Gross profit for Q1 FY 2024 increased to $9,498,000, or 77.1% of net revenues, compared to $8,331,000 or 78.2% in the same period last fiscal year. The gross margin rate experienced a slight decrease year over year due to increased material and labor costs.
Selling, general and administrative (SG&A) expenses rose by 14.5% to $9,150,000 for Q1 FY 2024, primarily due to increased payroll and compensation expenses related to the expansion of sales, support, marketing, and reimbursement personnel.
Operating income saw an improvement, reaching $142,000 compared to $44,000 for the same period in the prior fiscal year. Net income for Q1 FY 2024 was reported at $155,000, or $0.02 per diluted share, an increase from $81,000, or $0.01 per diluted share, in the prior fiscal year.
Balance Sheet and Cash Flow Highlights
As of September 30, 2023, Electromed had a strong balance sheet with $7.0 million in cash, $23.5 million in accounts receivable, and no debt. The company's working capital stood at $30.4 million, with an increase in total shareholders’ equity of $0.6 million to $38.2 million. The cash balance reflects a decrease of $0.4 million compared to the same period in the prior fiscal year, mainly due to the payment of annual incentive compensation.
Electromed's President and CEO, Jim Cunniff, expressed pride in the team's performance and the successful start to the fiscal year. He highlighted the seamless execution of the reimbursement team's reorganization and the launch of an improved system for gathering and reporting patient quality of life feedback to physicians.
“We generated strong revenue growth versus the prior year across all three revenue categories, homecare, hospital, and international. I am proud of the team for an impressive start to fiscal year 2024 and look forward to building on this momentum in the remainder of the fiscal year,” said Jim Cunniff.
The company's financial health and strategic initiatives position it well for continued growth. Electromed's commitment to innovation and patient care remains evident in its financial results and operational achievements.
For more detailed information, investors and interested parties can access the live conference call webcast in the Investor Relations section of Electromed’s website or via the provided link. A replay will also be available for those who cannot listen to the live broadcast.
For further information about Electromed and its products, please visit www.smartvest.com.
Explore the complete 8-K earnings release (here) from Electromed Inc for further details.
