INFU - Earnings call transcript Q3 2021 | InfuSystem Holdings, Inc.

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Operator

Good day and welcome to the InfuSystem Holdings, Inc.

Third Quarter 2021 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions]. After today’s presentation, there will be an opportunity to ask questions. Instructions]. [Operator event today's being is note recorded. Please like Dorame with now to turn Joe to over conference Lytham the I'd Partners. Please go ahead.

Joe Dorame

Financial of InfuSystem Chief today's release, the Thank If text remarks, thank you, participating ended Officer; other not Operating open the Officer. results the September websites. review call and today With of on Chief Executive call the does you you and conclusion Lachance, the for Chief the of financial President on it numerous for joining XX, from will financial prepared Barry company's After call third press Rocco. us Officer; copy retrieve of today XXXX Good quarter full Carrie Holdings, Inc. we morning are at and for us DiIorio, website anyone the or can XXXX. have to Steele, questions. a today's www.infusystem.com Rich

I'd which that XXXX. the Factors company call Form XX, during certain prepared Litigation for everyone forward-looking historical like Reform Private conference contain with remind begin Securities the call Report conference Act meaning this team some under including Securities we December management Annual and risks within the of constitute the forward-looking the XXXX. ended statements in for on remarks, with XX-K detailed statements may of uncertainties, and Before of documents this the filed the the year are to fact, Except statements Risk involve by by Exchange Commission, of of made statements InfuSystem

of statements obligation any and information, no does made. future or were assurance of specifically be correct. undertake result give InfuSystem speak events, new forward-looking as can only disclaims will as The to statements statements the Forward-looking a whether update any prove date that otherwise. statements, to such forward-looking not company the

Rich InfuSystem. Rich? over Executive turn like DiIorio, call to I'd Now to Chief the Officer of

Richard DiIorio

you Thank earnings the your are will the of to our XXXX, status families quarter welcome discuss and on an all join third staying business, time quarter update morning morning Good for of our us and call. Joe. to This morning on everyone you and and results this third we initiatives, for financial business review record safe. Thanks the XXXX beyond. taking outlook our as hope across about provide guidance our revenue review the quarter. meaningful growth been current momentum as delivering both in for with To this making XXXX, doing the team XXXX the I've talk I of units and progress for the of ever top and excited am the is our third We're board. in building start, we're I

which XXXX. on for Our performance plan our to meet puts came financial updated on target in guidance us

and the ITS key with brings combined to it is InfuSystem most is payer or equipment original our durable the on pumps, medical capability. patient focus turnkey complex, wound continuity business billing to our contracts Integral and billing and care unique of the Durable therapy is care on home of extensive oncology to that you has the devices, third between including has when focused two therapy equipment our payer services the pressure it, requirements As of etc. solution the a operating two turnkey hospital operational medical use negative party reimbursement ITS providing part table. and is includes the the specifically or integrated clinic of know, patient's units, InfuSystem larger for the solutions

apply efforts four to the of and rentals years and expand rental therapies our idea the that have focuses equipment next located. medical part our began therapy Oncology to to services. on DME Our will are addressable lymphedema therapies. Today equipment and Therefore, second future fourth believe still each reason where each that a of business XX. in high is ITS and services market, these developed maintenance and oncology originally ITS plans and two equipment equipment provides The is But segment, one ITS. in so the unit for they of which execute four momentum is business wound on significant About extend contribution. and two operating right. leverage was repair treat we have we and a of business support our offerings acquired hit growth The excited holds. pneumatic of is the level. the being extremely but expanding additional are compression of biomedical The durable ago don't revenue to to years couple I and be The the original we confident could that skills we're with ability revenue own we and in excited and all care is largest, in the newest perfected competencies their at transformational need to the operations growth were what $X those billion was core both an to due segment. number away pain our which in ability focus revenue to we be four plus therapy our XXXX remain is generate our in from to a deliver team's these to successful therapies therapies this why

the is a becoming And for perfectly businesses of the there form last medical fit mile the for one has equipment in going given vision that it My than clinic therapies will This core to our the growth solutions line and levels. tremendous lot partner get four preferred By plus more to double into us of ITS each years certainly five to capacity we've the business to more years. doing providing to took be of of for company more as equipment the the and competencies million final will years. three durable XX opportunities for therapies effectively we such have looking to some itself manufacturers from last approximately XX addition help we top most four these transition home, each point, is a home from all $XXX to current manage been patients Additionally, revenue next these that get a in our InfuSystem in enquiries we current the more medical the positioned as future. towards and environment.

We have the to strong the growth, right a and leverageable manage financial highly this will team enable platform in a place that grow. foundation, service

this growth. before or begin investments revenues to up some waiting then first I that expenses back allow years saw getting year we a and support and year. absorbing the we the frequently make often seeing Now We this something opportunity show financials. of to have and on on the inventory ago our of our to operations business investments similar to in market the we're our major oncology nature to and a and most to their this customers that highlighted capitalize us up few take have when making competitor former left we're more a quarter is ramped

capitalized future. put perfect didn't it has year, position of eagerly then to due on to we XXXX the have turned series us that investment material out be expecting it a opportunities in While and we enter way a it to upon build that a

the nearly care we first disclosed sales we the discussed when wound chance on hire The people our and was in of last some best in of sales the to call size doubled pain being the that detail force some our markets. given after

been help will U.S. be leading provide to announcing a one by pain based InfuBLOCK. million provider the a more pain be these agreement we providing management selected that services November of the than press reps service has With new make XX to healthcare able healthcare made in top InfuSystem announcements hope Xnd, with management U.S. the experienced to like the to InfuSystem provider of we release our customers. In more

the really momentum. traction gives continues peripheral so more the there's win clinical is electronic pumps to this of us part this agreement with As come build and will hotline in InfuBLOCK along confidence more we services XXxX on which supplies. in provide nerve The biomedical business continuous block, the marketplace if service for to much even pain infusion includes team a gaining a like

involves DME. accelerated biomedical second the into busy been biggest to touched come. year and execute investment call, the on hiring expected on quarter training, technicians this in aggressive the on we've third in business of our onboarding, the expanded team, to them it our last equipping and Our ready team This was we briefly hiring getting

As leading and global disclosed XXX biomedical begin in in to this to than in a company morning's with diagnostic InfuSystem press provide to selected has operations release we technology opportunity. position are finally countries. services medical new more major equipment been discussing

North be in space, types most capabilities now in pumps other including preventative at with of As XX the time including skills the year. we comes maintenance to This their provide was and either decided to and InfuSystem’s major medical the two in this biomedical this the the February medical under year. done of onsite part will is at year. this extend of to unique million work in our first years of America. on centers. Once acquisition at of of diversify this conducted FilaMed in coming Canada a offsite new was $XX with the the negotiations of We and care relationship Service able estimated which are services devices weeks, hospital finally fleet of finalized contracting acquisition so DME biomedical more half one the and marks the of direct with hospitals generate over systems already or $X onsite three in into infusion enhanced in facilities to under annual side facilities will companies result the medical which $XX the services shift be repair our to contract solutions to a And business is of XXX we acute it service service. program as of of in our seven team U.S. million approximately to first strong and our capabilities million --April service year biomedical

of opportunity space. care I and share a the be the and also and that pursue our deals possible These firmly the only in pumps the patient future. for couple segment market service has our ITS in expand but OB InfuSystem next of FilaMed growing same to over it acquisitions our incremental infusion market a make to preventative physical systems devices, units, device the maintenance, management InfuSystem can hospitals their repair, of healthcare cover and services and on We capabilities including to range teams DME monitors. and fastest platform as to our and transformational huge believe is nationwide. and by Health created not maximize two growth potential inventory can strategy potentially compression site the capabilities, addition the Acute the platform With defibrillators, synergies years. electrosurgical could now is drive it growth broader also

acquisition Officer since. To been discuss second the FilaMed course about Carrie the my will followed first in in and it available in acquisition our President the revenue I'll the investments increased We've up scale. realized. against back ramping onboard the operation This all to investments material discipline of earlier and Chief In growth with team the how DME, of over planned the we've is before Operating the quarter. our operating the upfront to OB executing being case ever comments operation and revenue preparing been anticipated Health necessary Of of opportunities require Lachance. began new quarter of to turn in both by points steadily

Carrie Lachance

everyone. morning good and Rich Thanks

the for time now. Rich just been mentioned, systems preparation for some ongoing and As upgrading of has process operations the growth company's in

billing we Our services the third area the was provide. of the focus collections of paid getting party payer importance first for team given

in This have Cycle both our revenues and higher from that reduce very VP We a increased and Jamie of of strong includes and Revenue increasing and [ph] we've collections ThinkBanner new drive place process cost a improvements. operating system margins. automations implemented team constant under efficiencies higher now

Department comment we greater more DME Our operating is IT so substantially far functional single, function efficient to area rationalizing as process completed of and under collections like next the teams, efficiency support systems long now out been the with ITS continued output with in The under very I'd structure. billing We've and great is very Addam greater upgrading been Key the integration on has that comfortably of IT rolling two of and operating implementations schedule, went in Chupa. have including support smoothly the on rest growth. our acquisitions got company. integrating Integration biomed coordination the and delivering a bringing successful, desired our complete. of

is having of As changed the Rich many With footprint our adding adding discussed, taking those smoothly, our dozens training work. cubicles as begin well as increasing and up new and advantage. for workbenches, technicians of biomed we're are progressed we to space of peoples, equipment, to teams of sit operations. to work biomedical COVID the team, new team legacy Changing has to setting practices, our new used and onboarding ready

hiring this possible in is we to and setting revenue to company. to the to growth. our to team we've workload last rapidly ready to pneumatic and streamlining our growing in throughput. through management this services processes up the to field the the expected Overall, financial greater support expect of while taking and nursing is growth. on in year. greater stay ahead operations done quickly, come and approach already the warehouse as are year the thought top advance Barry and and existing our that the results. over priorities everything is I given processes executing the have most and finally, and the the here today. both advantage and plan biomedical hire, quality train, achieve part efficient also turn continue scale continue time therapy is in volumes, much will by talked we to next is of back existing focused operations the ready including We have support to to leadership next capacity space, we work support the of Wound a provide to about careful collections of work tune Senior had and and we Obviously, two structure, Pain wherever care be business the management office end anticipation and ITS year. have online. ramps higher operation anticipated highest of business. next, compression Steele same are growth when to the efficiencies to it of quarters With ensure priority that, begins our has scaling fine expanding billing Areas on the DME, support will in a over biomedical the for significant Operations a review CFO, And to for

Barry Steele

Thank going the for us will fourth to our important some Thank results, areas; our for I'm factors call on you the everyone you, profitability and higher reserves, joining main of the drivers today. focus that revenue financial drive on status quarter. quarter's the Carrie. the resource three current and during

me First, touch on our position. let financial

we indicated, As are significant Rich growth a next in quarter our revenue acceleration the expecting has in and into XXXX.

other backed million fund to million This FilaMed operations XX% amount our purchase compares lower services growth flow X periods. in expected as a XX.X or to this Notwithstanding with generated during position, X.X strong XX.X finance compared the million positioned well ITS revenue are during is that capital The reserves year, expenditures to quarters, totaled three sufficient We the growth strong cash through does cash operating compared was OB to This are available have which significant our we prior year Healthcare the net million to in growth first businesses. medical equipment historical be require biomedical liquidity increase. and and revolving million. credit. growth acquisitions, of X.X by This capital our to needs but markedly all because period from us to of the cover our capital not items from line as flow.

full XX flow will XX that anticipate our cash to continue We to year million. million be operating

range the total XXXX our XX.X total million, XX of months million. investing medical for quarter, last and for the a of the be full other to decrease continue that by EBITDA end and purchase at stood the third of end used cash within provided XX At X.X to year flow, times. anticipate debt the since ratio X.X of our of to devices XX sale adjusted cash debt million of and also the is We capital quarter, which million XXXX includes of the cash to to equipment our the expenditures, used second

the principal debt included Bank, not The loan strong not leverage million we traditional Wells basis times at Bank, bank through protected have rates $XXX,XXX. fixed hand It and at Comerica facility, times. ability of all and in revolver our aligns end our Our no equipment partners Morgan, until is facility enjoy borrowing a requires interest therefore of interest to amortization. and for credit XXX outstanding million X.X significant PNC the flexibility $XXX,XXX. including reasons. credit drawings J.P. XXXX, We of very was for headroom expire of only February the the rate credit outstanding following end debt revolving X.X balance the perfectly Under minimum why have having totaling low which very does Fargo the and XX of of This of LIBOR an of we we of a ratio our have million XX.X Because manage Bank. against maximum charge XX have and term financial the structure the cash our line ratio an is September covenant growth term. loan agreement, of on on line currently and points strategy cash increases with a efficiently, allowing a plus

borrowing on hand. million of liquidity capacity the quarter end XX.X line totals at under million of available the the XX.X and and the in revolving Our consisted available cash

amount business to a from additional the Growth sales in maintenance slightly our compared increased pump include with was and this prior the revenues adjusted and amount impacting rental even market new quarterly in general in pump for for therapy, revenue operating XX.X related pumps elevated year on higher Turning to reserve pressure this that best Net expenses. included and the pain profit and costs and million. year, with ITS represented in infusion margin due team respectively, demand costs started strong right for few was for the EBITDA in factors DME unusually it G&A management included equipment X% was revenues to rental quarterly margins created our during ever, wound volumes. G&A increase, acquisitions, Other drivers margins gross XXX,XXX increase a segment, pandemic. diminished totaled $XXX,XXX in XXXX during in second revenue and the our our administrative This mix of totaling and quarter due services profit our XXXX large and expense. in sales, quarter increase the biomedical third revenue pressure slightly lower strong gross highest fleet prior an improvements increases both the management, the line expense the on increased and the X% included and cost was loss when in results. remaining points COVID, of expenses negative the in portion which during to This the sequentially. selling our of collections, quarter. The from Preparations negative forecast. opportunity A to in sales pain therapy amount unfavorable beat

to Finally, higher operating biomed from the price services a includes X.X for for common both based expenses market related targets, growth equity both increase achievements performance business. This G&A impacts for compensation increased our related stock including other and and of acquisitions during awards million the higher quarter.

performance year. about of for the the comments our remainder Finally, few a expectations

earnings maintaining and as morning XX stated between and -- revenue revenue million EBITDA and with this million expected we release and to Rich XX guidance XXXX million his adjusted As to million. press stated be are in between XXX be XXX in morning’s

to that business, from quarters, part several includes Rich increases rate therapy. we the pain rate expect come this medical be mainly of related important launch revenue a our in third in million. the strategy previous increase a The our continuation exit and year significant and successfully new equipment Carrie in includes we increase of additional also revenue a quarter. in have efforts the which These wound continue sales and an personnel These to programs to the pressure costs include care outlook go the to new the at for lease supply mentioned. from stem seen services in wound sequential ready amounts also to some therapy combined representing also biomedical but significant capital approximately addition, negative of in XX business The to run market our other for run form In expenses. expenses and

overall to significantly despite like higher that, margin, However, is at it profitability. with favorable the improve expenses, back the expected come a revenue higher over contribution DiIorio. to which Mr. to turn And will I

Richard DiIorio

make Thanks, believe and both in I material an extremely of and The important model InfuSystem us us strength and of and these long-term allow is am XXXX investments inflection confident drive about the Barry. that growth. company ITS will in future segments. at initiatives the business I for confidence provides to our positive with XXXX revenue DME outlook growth our beyond the point multiple growth to

our for a exiting strength We as reaffirming execute growth in Barry we'll are mentioned plans. successfully XXXX be guidance position to and our XXXX, of

expect stronger company and subsequent success. And we excited questions. and answer bottom XXXX future transforming to we am a line performance extremely the I are any of for years. are happy now the as InfuSystem financial in long-term we for result As top

Operator

Craig-Hallum. go Please question Instructions]. Alex [ph] with comes Novak [Operator ahead. from first Today's

Alexander Nowak

thanks update. those good and then the with contract sort and provider for the InfuSystem understand need for additional medical service do they just to essentially next ready just everyone company staffing this this that device sales devices global you announced deal of year? and I manufacturer will do Great, agreement this a for of the to morning, to are you morning want and them get better what devices become

Richard DiIorio

devices, they provide manufacture Good questions. morning, also so Yeah, great Alex. They services.

with signed. pumps is to them the of their service going and helping of infusion all once be customers we're their So agreement

supplemental a we're everything them in per From the going Canada. finalized, to to for you have a When we're be per we name bit release some it, much in capacity is out be definitely pumps definitely But what around we'll so with only likely biomed are mostly their need doing hire they is to going providing even country, press standpoint, put a on So staffing guys that. and will global. right. their day. the techs, services They little infusion see person

we on in the into So involved. involved, they're texts of all be, service clinical or whether staffing. and numbers There's But the there's to many bunch site back that's extra we We can the of one of need, they revenue have cycle no we our need where centers. how don't a no salespeople. need majority

really bit need now continue just it's in So number the service. we need the for bit as quarter, to we're a to to third biomed and devices to To number technicians fourth a that service adding quite the that the going we've get been quarter, second the through the little in that'll of well. quarter

Alexander Nowak

then made wound sense. some like competitor them there market one the out starting XXXX? make the go makes get XXXX hit least the early that it cycle. at and that or got makes disruption the lymphedema, positioned faster your investments to some And and better space you've there in in in any Okay, for to big Is pain potential you

Richard DiIorio

we're backburner. lymphedema to little build right way bit the it so next we going in on putting program going the not invest to a are the and Yeah, We're year.

to when XXXX should this a we to have year come early start in. But as degree yeah, revenue is We well. see realistically,

make have the their wound with is we in need to any front we with in that that that about Next and term that But we'll going of we're under we're But lymphedema. of program, I'm kind the lymphedema continue long have we're of us confident go build feet right up that build in -- to a house what's on we us the with this the just experts bring of not revenue standing programs also care, and we year biomed, another in market. need forgetting with growth away. of opportunity new year, execute or way, with pain already. sure little two not attack conscious the very them to team, to bit front

Alexander Nowak

helpful. That's the pretty about next look are building help XXXX but number then QX think year, to a And company thinking that good. I also has blocks going make of

run wound coming and into DME board. rate, that this on ramped pain got got contract You you've

the So up guidance pretty step I for guess seems material QX. a

in some guide put you you with help but us are are these December, starting a growth to then when are also end about QX the November materialize of all thinking to or So those already all how get October comfortable XXXX of or these kind together? you see the from contracts of perspective just put

Richard DiIorio

Yeah, so a fourth a combination quarter of factors. is the of lot

of that hitting the So be hired will normal the just ground of in that reps there's we just kind kind QX point. at growth,

pressure. need out year, the end market and service Barry negative have that's a will lift the and for Pain where for we co-pays the So to And so seasonality to of of see at outpatient start to the every see it. of of little they an mentioned they deductibles, go care Once has don’t in quarter. we pocket a year, piece program wound in the side, patients also tend as in as the on expense, to fourth of the pain and wound part hit so patients inpatient care you big that QX. come earlier in elective surgeries strategy,

So we that fourth have the think some the leases going quarter. that the to should are pretty in or we good sized pipeline, fruition I to come on books are say in

The budget we're million So I improvements once finalizing the year. that's the is our from should one we number. for yeah, year. to number. Throw wound see signed agreement expect and a XX we're alone is and growth QX bottom line million next XXXX, X significant growth. good this still it's in mentioned going care pain top how and to to -- we get

ahead year. should So for but I be out next don't of this sure. better good Much ourselves than a want really to growth year yeah, get year

Alexander Nowak

I the you. it. like update. looks appreciate certainly Yeah, Thank

Richard DiIorio

Thanks Alex.

Operator

from today go of Brooks next Markets. Please O’Neil comes our Lake Capital question Street And ahead.

Brooks O’Neil

don't or Good sector and shortages your I reported I on that chain disruptions, very missed that about from I the overview. One found morning, so in what's have out guys benefiting are most see a general disruptions. I do I think you shortages, labor and are highlighted, this it far questions. it, all. Thank don't supply terrific. mentioned very but quarter is, you you much couple it you markets, that, nursing COVID going have hurt area in much have there? being the by of it, for our think companies comprehensive you

Richard DiIorio

For we're of kind us, neutral.

the affected by not but it. we disruption see So, we're really

when of for, offer people, labor great company a job benefits, And culture. we from great to great perspective, to hire So great retaining a we our team. a we've done need go work

So to crazy supply in kind higher we there's market. struggle even don't this been people, really find chain, The no issue. of

in we're really, space the we're bit can and of you zero pretty a disruption, our we not since beginning need get when products healthcare these COVID. need. things that the want day, in seen around end supply chain weight the decide can aren't something little Although services, people or them. right. we've of tight But These throw the At the you whether small large world, our we get so

two here city in side pocket material surge of you'll kind but hospital I big or hasn't if in this but haven't say, us. mean, was when hit they a much town different we nothing that's see much I there either a really or would year. disruption and of or state, all. been for a a -- year on XXXX, there, all disruption So access, at really there's seen it at first obviously denying have last that

Brooks O’Neil

Great.

that long found what tossed second of I industry. is a words have around So period our over in are question, time

don't. they Some what know they people mean and usually think I

seeing me and going what opportunity to you're to area, to in I'm or clear help there I you're So opportunity just is what care sure like, doing what that that make about ask what am acute understand is? the the you

Richard DiIorio

Sure, hospital right. so in care acute the space,

historically, So InfuSystem is alternate what lived sites. call in we

been physician So where surgery on months the healthcare And setting. service degree. oncology biomedical acquisitions has call pumps, the outside lives, basically a all of business wound infusion services that's to The nine shift acute care the and last, practices, pumps really DME in pain our where centers, for piece in even kind the entities ambulatory that's months, providers, home of great kind XX care right, that's it us, is rented since hospital. the and of

done devices. repairs and maintenance that's our home for outside some on that space all right. where the and acute infusion devices But dollars fleet in we've a care the historically, done need of So few is been their million repairs own are, companies

system in infusion hospital just pumps moves XXXX XX,XXX in hospital So that's around could system, have to devices in else one that in everything there. addition hospital the to

back the kind it onsite hospital ship can the want to of, to XXXX on to pumps you do to not thing. at the going a there. we because Kind do we And to have just had take on next are of just site and in basement maintenance, we hospital. pumps, have The their is the a infusion repair opportunities between do of can scale the never and acquisitions bigger the we chance only didn't them than So at right do pumps. preventive now bed infusion could repair, more it to advantage much two we

capitalize So it whole now accounts obviously, big creates that. world sales a is major capabilities We're team for the out of piece business some and new new team we and and already opportunity opportunity on, those this of some seeing go the us. and just win have a

it's acquisitions now and it's we're to a a we So into and market off running. that that for strategically get and just market made was -- untapped InfuSystem those

Brooks O’Neil

And see in Rich, much business, care you [Multiple just don't services Speakers]. the pretty an opportunity facilities? DME acute provide

Richard DiIorio

the most there. presence we have think hospital. be with we're have for is, thing growing in a yeah, we country. outpatient oncology center, I but the hospitals oncology that's their might wound care, Same We fact the The major in around accurate. of

some the we hospital pain in setting. customers are that have Now

of can use So of leverage services. acute it our in because we the -- those relationships so some some have actually we to trust much of their hospitals, already care other

it's a us to trust doing the biomed things. additional the component of now going nice in our and piece yeah, gain So sorts not pumps, clinical to inventories, But those just services providing to for be support their is we're bag. for maintaining, repairing, going

Brooks O’Neil

of profitable things all doing and steady, you've insight always ability manage kind I'm to just your growth sure you're of eyes terms the Carrie your your Barry And to good. and to your business are to bigger that's you provided true the you than to don't deliver continuing Okay, all ability checking then great think in while stomach make results scale. the done. with

Richard DiIorio

at concerned not I'm all.

very the built be ready this. team for to over this we So years deliberately have few last

than nothing an for have doing I embarking day, We every what infrastructure every opening plus in in years. years. different we're have the XX we've place built mentioned day I anything the XX over of do that on is we been the and remarks And at think that day end

years been right it's, these years, wound doing of pain our all that whether wheelhouse. our own mirror oncology we've which program pumps, for management that for are and in we've things So XX had care our services biomedical on

see that's we the do argue and when have I selling us the in exactly probably were software, what you that. would we we helping get bearing and a problem. home, If But best devices with world start at patients

between have No this infrastructure. team all. So concerns and place we and I concern at in have no the system the

Brooks O’Neil

Congratulations. Thank Perfect. you Right. it very much. Keep up.

Richard DiIorio

Thanks Brooks.

Operator

Instructions]. [Operator

Your next Sidoti Please comes Company. go and Jim Sidoti ahead. from question with

Jim Sidoti

good for thanks taking and questions. morning the Hi,

First option one any that quick time to the there on than the side expense expense, contributed or notable? other times in any that one quarter a the is expenses one revenue are were one,

Barry Steele

wouldn't We we'll But ramp time the had did very was it nature, it. say pay one characterize again in that related for expenses for I nothing the I opportunities. planned have to just that the way to up revenue quickly, we the new have some really

Jim Sidoti

and of question. Alright, then a kind bigger question, bigger picture

side grow like to near grow couple is the five As years, opportunities over of next bottom to the I in while something able to grow top? the on larger still you investing in to and of flow investments you're as put kind opportunities on be cash earnings increase think these you do significant or sounds it you mean, have you the the is revenue. these out it four that for line you for How or look near-term term, important you make the you'll

Barry Steele

would that profitability. to is Yeah, say what grow have the we certainly the ability I

we have a As we can to see have EBITDA margins. said higher path before, we --

on most there we company, how that opportunities investment on more based there's And the much of be I necessarily opportunities have. investment will think will is -- this P&L determined for in than capital. it

you back, certainly if it So along I the we cash kind some way. there's higher But think pull profitability, it, will again, of higher flow. that investments peel have make to

Jim Sidoti

Alright. Thank you.

Richard DiIorio

Jim. Thanks

Operator

Thanks. Please from your today And Aaron comes question Warwick with ahead. go Breakout next Investors.

Aaron Warwick

last XX% thanks thinking EBITDA your I'm what is year, you quarter, of kind in to then the kind to to see year? and off for taking question, will kind around the long XX% XX%, margin I the call. this quarter that XX%. it level piggyback your XX% guys, first term for year going attainable next Hey think that still is are thinking of that What last to that XX% and then next specifically target, you've said XX% return know of a is XX% you're you is

Barry Steele

depreciated. anymore. First couple fully margin no book value the out year's was lot sold a it of Last for had because devices of of They're COVID. inventory, clarifications. elevated We mainly benefits of

So really proxy it's not for a great us.

the back sort that investments XX% peel we're year, of at sort you we're making mark. this of If

next completely Going our -- year. we for budget haven't done

is see by the won't for those nice so maybe lymphedema biomed the still The almost certainly see to require investments it biomed of they lymphedema have year, a two no XX% we and new confident not so yet the contract that with a for thing they'll very be the of things with really comes is online accretive think one of paid they're bit like but still contribution biomed fully The the next and after have we That margin are year. that little a we're even capital. end the And revenue, opportunity But, we paid I making headwind. when be sales clearly. us. team a decent that to we accretive that. path Some the said, things,

flow cash improved, measure has cash flow important which definitely our certainly So is company. -- for free this our an

Aaron Warwick

guess my of you for services sounds probably like was it one correct? of higher Because business thank you, was Yeah, -- the I that's that. for that margin the my businesses biomedical read

Barry Steele

lower Yes, again G&A. [indiscernible] overhead and gross a but has of has generally lot sort less margin,

we as what again, biomed we definitely EBITDA. accretive the is So is that's, grow to see

Aaron Warwick

about, XXXX? year an What think any moving last lot the you it I XXXX expect gave and should release, you we are December, do of out when in guidance. came you parts expect to I earnings What of and on a apart guys but sort from was guidance give thinking know,

Richard DiIorio

we and certainly can on the see to of call growth next want have the to as XXXX, looked hit are out. days. going we for to head. this little is, year. I the be news it, parts, with couple visibility more This out it good later in care that should on guidance. with put a opportunity sure. between bit ballpark. to the to it's almost better moving big just our around in It it, into finalize bit any But way to we in once that that, sooner next come there's in to just had We to added lot some put there salespeople we for a number opportunities the that arms biomed, out XXXX much number the make information it's model a But agreement good to significant we XX January. have than door. couple finalize want books XX There's are that is a little get in wound the any before one opportunities at to get them pain think the it, date as nail and comfortable sure that look in a We we If first it's will there. really we we've but you could a Yeah be early our put want come possible Aaron, the going we've a out I starting at There's other probably,

Aaron Warwick

know adding don't about -- see is I of on now just and in there under mean, I mean, said of how you way numbers on anything I I now, growth. based not be terms Is call, can put much indicated running that any that this kind based revenue to on a was numbers the seems? but that XX% the that accurate could just would it say you what XX% on more Yeah, possibly just even what happen. you I you've don't

Barry Steele

I Yeah. the very that low think I that's on mean, end.

Aaron Warwick

That's yeah. what I thought,

Barry Steele

I a think in probably of looks to I the out. But the out like. is start opportunities next there be what what of XX% good pretty growth that a Yeah, into to magnitude order better, mean are getting finalize year. going numbers, all solid, But baseline yeah, we'll see without year is not and again, if

Aaron Warwick

then mean, better the just margins Barry even that and given EBITDA to percentage I then Yeah. mentioned. wise, be return should the And higher

So that's good.

until in Are of before probably going from sounds the again it's end to thinking the not the in may like pipeline, we're you March from things got you that? maybe besides you've between, the some hear be some updates you just that year since then So, for we'll guidance, you. there hear

Richard DiIorio

That announcements know a Yeah, sure. for for There's think significant year. we'll could of not or combination to. happens, everybody I guidance no let when be reason something next

I think happen all will that before of March.

you'll from us. So hear

Aaron Warwick

work. guys. the Keep up good Appreciate thanks it. Alright,

Richard DiIorio

Thank you.

Operator

turn DiIorio conference for to over Rich concludes this back session. gentlemen, closing I'd and the our question-and-answer ladies comments. So like

Richard DiIorio

our Thanks, I we hope results. fourth and report has thank you. everyone on a day. want look forward call. XXXX participating to to Please for today's I you safe thank stay good when with Rocco. And everyone I quarter speaking again

Operator

This today's for for today's thank presentation. concludes -- you conference today's you. joining Thank We call. all

have and wonderful may now lines your You disconnect a day.

InfuSystem (INFU) 15 Nov 212021 Q3 Earnings call transcript