Earnings call transcript Q3 2022

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Operator

Good day, and welcome to the InfuSystem Holdings, Inc. Reports Third Quarter Fiscal Year 2022 Financial Results Conference Call. [Operator Instructions] Please note this event is being recorded.

I would now like to turn the conference over to Joe Dorame of Lytham Partners. Please go ahead.

Joe Dorame

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

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

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

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

Rich DiIorio

Thank third you InfuSystems welcome today. call. good all earnings Joe, morning, us and Thanks, and XXXX to everyone, for joining quarter

a I to new our Care in Wound providing quarter. the with provide Sanara on color would MedTech, Before overview completed recently partnership some exciting like quick around

record of ITS demonstrate in quarter improving our year, strength In for of GAAP revenue despite customers. led quarter, our in return margins pressure was from achieved prior relating continuing and headwinds a Care business the segment, The continued again Cardinal by the on to Wound the resulting availability X% the devices which gross while core to we once third our the the negative grew to new primarily profitability.

margin aggregate third basis $X.X points net income increased for and million, operating by $XXX,XXX year-over-year, income gross increased Our quarter. XXX improved the

work partner we expand improve well-respected steadily our the market growth unique and and in see to we with long-term how As can companies offerings our us. Sanara Healthcare such positioning to drawing GE is as potential, InfuSystem's

of X serve positioned excellence First, of strategically our to all America. are centers North

provider U.S. networks to over Second, XX% for covering third, of service growing upgrade these insurance reputation expand care glove patient-focused care. our to have there than increasingly health strong for recognized participating marketplace in their we XXX network and health white companies in as more partner their the are population. helped be go-to and And and or a looking other attributes to offerings service reach. Together, InfuSystem is

that It InfuSystem's partner unique growing our to and with us. problem-solving attracted reputation is Sanara abilities

why to offerings to we expected they hope able and how are our Care, I be now I As convey new excited turn to business. developments and to impact related our these future so about relationships to Wound are

be Wound a attractive to for level, Starting is a InfuSystem. believed particularly high opportunity at Care

an a them wound patients time. to healing patients next before setting for or to large hospitals the very focus period care are and to patient's and addressable hospital the can clinic to the transition In moving health on of in that advance Care take can clinicians time solutions in addition effective having stabilizing a home. [ph] due the Wounds long facilitate Wound cost not to for heal epitomizes need ideal over from the significant market, help care high place to

was based worked single materially hard opportunities offering Care Wound could to the device. Cardinal that entered we negative contributed pressure Health InfuSystem several When upon top a that develop Since our have ago, a our to market have years time, few line.

However, InfuSystems admittedly in to Care experience date has been Wound disappointing.

Wound change. with relating to Cork this With and new the announcements available Cork, is I recent distribution technology. Care, Through access alternative now market. device agreement a to have Cardinal that new about is to our believe Medical, state-of-the-art an with the have we device in relationship no the immediate longer With to we our

a to believe will Wound partner be Care the work market. more Sanara we provide ideal offering Additionally, we as an to comprehensive

This care across that and quality lives advanced Wound of sharing starts reducing products. we diverse offering the continuum based Care with complexity improving long-term treatment a focus company the a set on of by the the patients' our everything do of is of

Wound in for solutions together business win will and are by payers. Care our proving for providers patients, better that better We for better

two There components to approach scenario to are Care. important the InfuSystem Wound

focused First, that improving providing of care, lowering our aligned cost on solutions patient vision and care on promote the outcomes. patient healing,

pumps. agreement. and to signed over with for platform a ITS XXX Sanara week contracts. our and services, in been turnkey care products beyond than is year, well planning the Care of Wound We've selling leveraging Care. pressure last approach more best-in-class just leasing Wound of Resulting combination combined industry-leading talking and the our continuum expanding going in-network Second, The negative to our our much agreement a disruptive distribution

and partnership each true table the party to unique capabilities. This is world-class with bringing a

goal approach a include unique standard cycle will and bring clinical InfuSystem's distribution, to offerings revenue service on the support effective the to redefine Wound Care market by sales our care that more capabilities. Our capitalizing is of and

a products, Hycol Wound Care, to LLC share wound this both develop in more will including That opportunities will fully a patient have promote profits. their Care in will business jointly complement To healing. we agreement operating formed experience on deep moment. SI and and maximize provide care opportunity, Sanara's Wound in controlled to and new that companies enable expertise BIOCOS the leading-edge his Barry details

almost immediately with taking begin of supplier to launching InfuSystem this with plans Coincident the Cork partnership, to a new agreement distribution signed advantage Medical relationship.

therapy Cardinal Health equipment brand wound in and U.S. Nisus August. pressure of call and on with Canada. supplies the discussed access with will difficulties in to Cork solution lease devices new the team negative Our that our the pressure and is the The and relationship sell of we negative their

having the with effectively single only challenged to and point compete more diversified Wound larger with was market, in solution team Care the a our Previously, players.

offering heal and With our Wound partnership, from Care grow feature treat not been a the complete Sanara we a Care tremendous of obstacle and portfolio them. opportunity device business just that removed. now to Wound We have patients Care designed to solution has believe comprehensive to a products by advanced a Wound products

can by satisfaction, clinicians you share. notice will patients outcomes increased improving Our belief leading is of care that and take if to market take

Switching with update over would like to Healthcare. of to status ramping our relationship give DME an the our GE services segment. I on

While slower we this calendar, point anticipated team in service the continues BioMed at their than the revenues out started onboarding realized where behind work had be with to very GE. and our we within closely to it process expected counterparts

services build August that and in facilities, in positive and Canada. momentum including that quarter manner. white well our we and the our GE hospital strong that of X,XXX located We deployment to by in We facilities are pumps services both and a and continue medical continue to onboarded medical have third the received, finished being XXX with onboarding can systems XXX,XXX in September, a involve systematic the glove up facilities U.S. new confirmed will the of

service to quarter am of I to and to relationship, this the foundational see that repairs agreement management one track using pleased hospitals upon We mobile As team RFID on This expand off-site a XXXX. of GE centers. tagging relates preventive to reminder, site service performing includes the relates with slated opportunities many project at maintenance our one potentially the to seven master to at in GE's fourth asset and or our report devices. system start

now Although fully has taken believe of relationship we optimistic larger on onboarding basis potential and the we million of an are be $XX remain will operational. opportunity. longer than than $XX the our expected, once estimate revenue about GE annual million facilities original we to very We

about pain near-term remain and on outlook turning our to We the prospects. Now pain. of business positive are very management excited the

the see generated team benefits our increase year. comparable last investments our revenue the we year. that sales as the This in pain in is a business the For quarter last made of we to beginning quarter, third XX% versus are

to procedures are fewer supply-related short-term our share in the interruptions when the QX, continued market despite gain the team Despite performed. months seasonality summer of

are We end the the treatments with patient this the of stage setting seeing finish strong rising for to year. a

our in as team management access treatment. Our Pharma, advancing gives in that national conjunction to a partnership for solutions pain marketing third and injection can single in effective the the became The quarter. sales chronic with a stand-alone or Enduracaine, agreement sales with a pain used our InfuBLOCK Ventis and management be surgical leader

care opioids. market them of be driving gaining more pain reduce to committed by and professionals providing share giving part patients in fully InfuSystem to is keys choices opioids our of One growth the to alternative North in use to the in doing helping health to revenue America. will and an

the full stated estimating growth lower end approximately to $XXX to the for XXXX revenue the is for on year InfuSystem Moving previously which revenue guidance. at year. the is of million, XX% XX% total guidance of of

customers work InfuSystem XXXX their in EBITDA of full be is in to to million and and receive adjusted XX%. entire service. margin I ensuring is with XX% approximately adjusted the estimated want $XX partners the year our expected range for Additionally, dedication - for the to EBITDA hard thank industry-leading team

would provide quarter like of Steele, I to will the our the over CFO, to a financial Now results. Barry review who turn third call

Barry Steele

and of for on joining the Sanara our for topics, will the results, for activities. some discussion account this focus Rich, thank going main fourth the and the quarter the you, three today. a for you, to for related call details new on including quarter's I'm we partnership, current outlook - Thank to its how everyone, us drivers

totaled prior quarter, from me for our improvements various both increase and third quarter XXXX about third include let year. metrics. was revenues which which Net sequential for the on a First, will financial $XX.X on the million, the X% of touch year-over-year results

set fell a revenue seen expectations, third time record, moment, I'll topic we've talk which more the While new short quarterly this our this a year. that of in about we a

The year, large lower was and compared due quarter-to-quarter segment XX%. by by to tend $XXX,XXX was the with slightly uneven DME prior medical Revenue oncology the down IPS of to $XXX,XXX orders. year-over-year which growth sales, came due the increasing for from to or vary the X% segment management that but timing equipment to pain from or increasing

revenue in April launched agreement included was year. agreement totaled The initial for under for XX% that in Services from BioMed. decrease, of amounts Biomedical the that which which or of offset was revenue the Biomedical this for Services $XXX,XXX which rental GE quarter. and $XXX,XXX nearly of and $XXX,XXX increases services revenue, double-digit XX% both respectively, saw XX%, biomedical of increases $XXX,XXX, and rentals This by by totaled increased Revenue

You as and important that contract our this revenue may to is recall devices. onboard expected locations under continuously grow we

XX% XX,XXX contract. million As under XX, cumulatively onboarded goal needed represents midpoint of the of $XX September the reach nearly devices. we devices to the of of $XX our have annual revenue million This to

profit increase also from driven was record. and to the our sales, quarter in coming of an the revenue of increase by million decreased say, team was to higher productivity improved ITS for than and both improvement revenue rental biomedical year representing an percentage, $XX.X prior from due increased both improved gross technicians. This sequentially. totaling equipment mix all-time gross which higher significant Gross both margin the and for third XX.X%, This which a was margin and improving higher which are product revenues,

we You These during the Biomed may costs were current which to begun higher the to had prior prior the quarters, in better services reporting coming technicians, revenue period. of absorbed increase costs biomedical revenue that online. number recall increased with

were XXXX was EBITDA incentive short-term was $XXX,XXX which Total Sarbanes stock-based this is the which asset being internal and or and Oxley accruals. net time prior year higher for $XX.X as Adjusted about our $XXX,XXX $XXX,XXX and decreased for in documentation the third This of administrative This upgrade general $X.X lower for XX.X% general year was first quarter. million and second higher the for were costs same offset quarter. than control third quarter. audited intangible third the lower this selling, quarter third to partially than expenses, or compensation X% including revenue. amortization, higher actually, costs which Decreases year's administrative of the quarter million the by was $XXX,XXX, by compensation, and amount

full year Now let me tell our you about more outlook.

a As new anticipated anticipated longer timing sales. behind the forecast. revenue coming prepare I than to was pain and of to revenue growth the was contract, services This device reported mentioned needed time attributable for slower new earlier, biomedical Care previous our management both for than and Wound equipment impacts

growth than is mainly for pain growth to actual management is fourth XX%, our year-over-year The of quarter. is our This revenue. lower biomedical slower much new higher expected for expectations performance. our onboarding revenue the were during continue same customers. rate of Despite revenue due This to true services

in contract, overall revenue Healthcare of under up onboarding This ultimately devices the our previous of we our still assessment will behind pace the new was the amount significant achieve momentum picking While changed GE not of under the agreement. has expectation.

fact, that In quarter. lower This has improved onboarding during continue fourth will considerably. expectation pace the

the which previous not forecast, offset was However, to our new will this. tagging, in contract RFID provide mostly

at We a out volume Health, when equipment our Wound grow treatment that You leases do impact may volume. for recall anticipated the during anticipate fulfilled guidance our Cardinal decreased our actually we be on supplier away expectations equipment. our reduced Care revenue not negative our ability the cannot that took to to by necessary have we that third provided taking previous quarter. That ability would provide our since

Fortunately, expecting supplier now the have issue, new now lease to that be Cardinal are equipment quarter. the customer for an due devices negative and new a completed wound in supply therapy that we to equipment needs pressure we fourth a

equipment DME the our anticipated lower third Finally, sales than were for quarter.

this As vary orders typical business since for have earlier, a large to represented tendency mentioned quarter-to-quarter. I that timing

shortfall quarter. We expect during the up to for make fourth this

plans. to increase are along Furthermore, and a These revenue significant additional fourth drive customers to large with spending negative the number fiscal quarter complete orders, to the as a wound lease net their the year close expected we equipment quarter. are of capital pressure anticipated anticipating rush orders therapy for during in fourth

portion these outlook a our However, we not of by we them XXX% know we stated included revenue in only of close amounts have year-end. will as

our included being XX% therapy higher. have the significantly example, confidence we pressure only despite negative lease wound For of deal

total of $XXX to EBITDA complete approximately forecasting As these XXXX as revenue has Rich a result adjusted million. million and $XX and approximately with factors, are we stated, of of

because topic the how an to The see in arrangement talk by for setup then in products commercial earnings be in the this the new last for of the about statements partners. activities through to impact our related have I'd partnership that by will is be will partnership. shared partnership on like you financial margins appear Care. The to will that run will order That equally will Wound the InfuSystem sold capture

for our the will revenues have reasons, of own to customers. not will expenses. administrative partnership profit revenue customers. sell to this, only third-party certain regulatory and it For its on Instead, products resale gross general will partnership to Because InfuSystem cover

will the services expenses there separate through that directly to addition, charge agreement. In a we partnership be

an financial not will our partnership's the to account We statements but be as interest able will for equity investment. consolidate

from product of share such, operating equity income be InfuSystem's As the throughput gross XX% invested and income. included which as InfuSystems reported in earnings, is - includes and will

Mr. to it over I'd back Dilorio. that, turn to with And like

Rich DiIorio

Barry. Thanks,

multiple tremendous services our on end. device growth have ITS components Wound advanced services in and in we line opportunities segment, with from significant therapies pressure segment. leading-edge an product ITS critical of Wound have We a negative together, biomedical our expertise Care Care, Cork and our in In Sanara to back we the expect DME coming deliver Medical, three on

and share streams. advantage patient a solution, chronic capture the market on and give lowers us The promotes acute partnership patient care. share will to will that a complete us our focus grow market improve cost gain and wound outcomes us Care to enabling believe We of revenue synergenic healing new Wound competitive give care combined multiple care in

build everything foundation hard safe, And XX than smart the patient confident years, are is the build better embodies an has model to more worked The for even and plans center culture that been do. to growth and the in never stronger, we at we our our closing, of a InfuSystem. trusted. In we company of

and are care improving The two transformed and InfuSystem service long-term acute the care provider, unique to offered quality with have cost-effective XXXX meaningful of care for most platforms, in We and revenue beyond. well clinic generation our solutions home success the ITS for solutions service DME a health and service leading positioned by both markets. into

the up we the in stock including now November their options of August, set take year Xth part of Before are myself, questions, mentioned fall executive on awarded and on are XXXX that I in as expire were team, coming XX. anniversary to

of a to a You before option company. will with options, - of business see respect reflect Form date which absolutely the that my for in will no X a way me confidence future the filing This for exercise. transaction reflection this in is that this net great expiring

we And happy to any questions. are answer now

Thank you.

begin now session. question-and-answer will the [Operator We Instructions].

Our Capital Markets. Please Brooks O'Neil comes go question with from first ahead. Lake Street

Brooks O'Neil

morning, new well everyone. believe off a Wound with that so, position? and Good have you friends you curious questions. arrangements with if my what at compete think I'd reasonably Sanara I Cork Care. to XM? if like things are puts start the And I'm to guess the industry you positioned I in leader, key And few the that with you

Rich DiIorio

Absolutely, Good us a puts anyone to it Morning in in Care market. compete Brooks. Wound XM the position against and

XM tough earlier, I where think mentioned having we sales product a that market was a single pressure the negative have as device guys, in I road products. a a having right, for a has competitor just multiple like

Cardinal. to we're you guys the right? great wounds. band-aids. market, I not a This we're replacement So is maker from versus company great for a or heal to patients, And products actually are that product right? think gauze I device how treat that's isn't combine attack a think These a going is going pads Cork the just relationship and like difference for those the this

can and Sanara care then that that platform. our back-end heal that You support we wounds in have all the ITS their with team has put on this of experience products wound the

at You is edges care. that's to wound market. way together, And go put powerful. those accomplish This just And to treated that not of that's trying three and things change in nibble to we're and healed pretty go the the that's what and patients the are in here.

a totally February announcement. It's at Cardinal and of approach X.X different 'XX what ago, the with years with we started was

we with totally we now. go guys that big the know can approach. believe different compete Absolutely, So and

Brooks O'Neil

Great. I'm that. excited about

necessarily clinically So hands a put the to like further it be more sounds I in going puts say position arrangement don't on mean, me, to it just to to tell you're this patient. go I oriented. you so want

and tout the in treating was more company to A, But And patients. direction? can that I've about in And always am the this But financing of I get involved the B, very ITS opportunity right you with the extend arrangement what that you and platform like gives business actually distribution DME going a you're payers. and confidence sounds that?

Rich DiIorio

Yeah.

historically, So KCI's it's I think right? sure, the our sale device, simple. of it's customer been a So these right? more devices, they're all device clinical And to for pretty versus

So was - winning right? we device to device, when sale, we winner we lose with was really did against were there. service a really no - KCI there Where

with it. are and to and or than products going - on keep the that infection. the right? a put that put clean, them reduce it it heal eliminate for Hycol, sale a the BIOCOS wound, going Sanara the with everything products does in we're to think These different band-aid something are isn't actually I because is some needs on So else this clinical more actually market, product of

I sale, clinical point past. the say clinical there's other they more clinical wouldn't more have call a but in points any of than more call than a the hands be it's on will So

Brooks O'Neil

still I'm me. behind That's Okay. you that way little it? Is the but pretty opportunity. characterize a more outlook services, just the correctly, then in one and biomedical optimistic the about for we're And helpful. right If you're to hearing

Rich DiIorio

Yeah.

starts a that's year up, I things, ramped way see next it. and continue going accelerate. look and into good think actually we're mean, at to especially to really ramp. I where August We to definitely September it that some

that. GE is opportunities way the look news with always a RFID at be this good and there'd example, to is we for thought think I that tagging, other good

$XX long once million we number initial Barry looking be that that fully to I at, in $XX think than that up can I we the it's bigger and comments and term prepared we're running. mentioned see million, our that So already going the were to

going even it's we the gets a than the mean, that May, long frame, doesn't I into better yes, probably sitting to outlook slower, other six we here it off than ago. a change But right, in July. middle June bit term, were in thought especially year, better. of If little months be So we're the we're time maybe year,

Brooks O'Neil

you your Great. opportunities guess and take with I companies do that platform you other GE? what seeking really seeing have there those are are any even would additional I say you beyond recognizing But that, you RFID apologize. with to advantage And in And/or areas? of GE

Rich DiIorio

Yeah.

think specifically, for I of GE approached on or year remediations, we them, whether of it's lot recalls, us that preventative their sorts a don't So things. last vein those the have been manufacturers another there's for and and work but see devices have to so

there, and time, none out GE think we'll over not scale So win of of certainly the $XX-plus though, to million. some those those are I

I think lot the hospitals. of first these GE, is preventative a yes, new within devices program GE tagging probably touches But outside in RFID and maintenance. of the the

working there, up that happening. GE And I pumps. have opportunities when their and more I Yes. But mean So sure. and infusion on we more time to some over end think go get to we prove we things and outside to of there'll devices could do ourselves. be some foresee for still time, I customers

Brooks O'Neil

a taking Cool. lot for Thanks my questions.

Rich DiIorio

Brooks. Thanks,

Operator

comes question ahead. Craig-Hallum next from Nowak with Please Capital Alex Group. Our go

Alex Nowak

be is Or - everyone. still Hi, a of exiting restart you? into need pretty Or that the the All to you much just pretty Cardinal And then Cardinal that sales that went supplier transfer there that pressure status going happens something Good devices negative the of Cardinal? what's relationship immediately? are is Is that for there? clarification, could completely to processes Cork device, medical efforts to morning, you immediately the the great. device?

Rich DiIorio

Yes.

reverse. So I in guess go I'll

immediately the month their wouldn't affected no that they additional Cardinal so of supplies about end or ago any be selling more devices a customers at So year. the and announced

going just of kind to marketplace. be [ph] but is infi the product Cardinal the market, in So not a in system, dead

As does absolutely transfer, Cardinal it is work - that there the we does. put far as all into

we to sales our those complex. to We super retrain flip guys in think the But Cork into that the need I to on device, pipeline train device. on most to device biomed were with new our still Cardinal there we're opportunities going device, isn't the guys need we're which walk of able out itself. those to the

devices, there devices. bells are These some different, there's bit and relatively here they're little that a whistles and but simple

So people as device they Cork work, And long those those use of easy they're okay are long they as as all the absolutely things. sorts with requirements. as to meets work,

the team and stuff support, our things back-end those right? is it It number we doesn't how bill in it back-end doesn't pipeline, matter serial matter all the remain the clinical what agnostic, the work put is, how same. the device model all it the is. triages number we all It So or and what

So those sales those the use new team aren't blocks. We to lost efforts. just to building biomed in train device. guys the and on need the We get

Alex Nowak

And have new LLC the all to the just two Understood. different sure here. agreements I I Okay. the logistics with make want and then

the revenue line. up will sure And negative going that the show distribution devices in but So reported got to the correct the - Cork below the the I in am still sales Sanara all Infuse been the... revenue LLC show all has through is from to InfuSystem's I up revenue line, line. not I'm say pressure of but

Rich DiIorio

what won't so that be a the for that gross revenue our margin the All margin can we be line. No. have to for going very all paying skinny in because in those we'll we're top we selling venture. have to the products close we're capture But joint

our So basically will equity line. the through profits P&L come the to

Alex Nowak

venture And Sanara to that pieces? include Medical just or Cork joint the the

Rich DiIorio

No. the them and to The will products sell InfuSystem. partnership buy Cork from

Alex Nowak

it. Got

Okay.

it operating So your the the item, revenue then be? will - through up all as income line of revenue profit? And operating revenue will through consolidated InfuSystem not the component will be an show - gross the or

Rich DiIorio

are G&A of have, That's come right. to partnership. through that charge in there expenses will There'll most the part, that and the equity But be down gross we'll the that for the earnings bit we'll a the direct of bulk to just our little expenses cover margin some have back will line.

Alex Nowak

the starting there has then kind maybe uptake We're or that necessarily on of uptake to there. the up Okay. side, volumes just the from driving been reimbursement see And there? here a working new something procedure busy bring pain slower slow Is the else solution? competition too is rebound anything Understood. to what pain on

Rich DiIorio

No.

the So I don't competitive think it's anything environment. in

just the it's think I the of nature business.

So we issues of in came out the the quarter. late second supply chain

You it intake restart of that - to have onboarding quarter kind And just process. of customer takes or that see a kind and so to that happen, right?

got you you appointments. to to in, up go got So set

you train to and the staff then to nursing their product. got customer. they to start the They entire in-service and have using have You team

shut kind chain, it of engine, starts almost So but supply to right? we had On just slow, entire we it and to restart off. the ramps had

quarter patients, able and new we but existing So second their any add we couldn't keep of for in that second majority quarter. customer existing all ones or the of to were base treat our the

process. it's So a start to can an just timing a showing revenue bit then month, of just issue months and itself It takes X time. X up. months, And onboarding little take the a

market. the even So mean that's it's comes it's block to market. when nerve not peripheral all best I I we have the best mean to by but the it still, competitor. it in the next far, close offering continuous nothing is,

issues kind quarter. So slower than supply the in of liked nothing we competitive. Nothing an has have changed uptake chain in it's reimbursement. a It's - would because of the just second onboarding

Alex Nowak

you Okay. and moving next year, been there's agreement, on. business year, parts lot stable the well, just pain And about which business, is you the But The GE then you Cork got thinking oncology this Understood. Sanara year. called maybe digits. for next the ramping mid-single a just of talked as – the medical

support but growth that? into you are next well expense growth to thinking the how year, Just also as about

Rich DiIorio

So Barry side. let I'll the address expense

think going for rentals, business kind It's top We solid, going we're said, line everything in sales, process going whether the Alex, organic budget I on now. to DME of do. right, our to you be it's the those just still what are businesses oncology. through growth, right, know

know is revenue. Sanara going We - as Sanara's know going to generate to grow. to something is partnership We GE to going the is well. the agreement going generate pain

Barry, there's solid to to I So growth just it don't until process. sense side? through go of be you margin the And going want have I this yet address we some there. if don't a know

Barry Steele

Clearly, couple up grow slower the we as Yeah. overall, costs reasons. of grow go that revenue. we will the cost will a for But believe

we we spending have line, to pointed still on as areas have absorb sales and sales other well. for in As already some example, the out, some

We'll far. be the you too which the hurt much marketplace, in see so inflation us hasn't fighting that continuously

being be side. cost we So the the on most we'll those But might normal ago. wild a cards part, years little of to margins back for we grow about think a couple where were

Alex Nowak

update. Thanks fantastic. Appreciate That's for Okay. it. the

Barry Steele

Alex. Thanks,

Operator

Company. Sidoti comes Our Jim with Sidoti from Please ahead. go next & question

Jim Sidoti

But that to be? think how think regards quicker get and seem would that to number. be $XX you million X morning Or for GE, do years you you to the something or it will in long level? than to With X that? will Is thanks that taking take Good $XX questions. million do it pretty that confident

Rich DiIorio

bit quicker. I would say a

Jim Sidoti

Okay...

Rich DiIorio

number come at pretty or originally had still XX that We in think close. out months. we I put may

So puts agreement the somewhere early next XX summer, that in fall from months range. original sometime us

month we're to two. think that pretty take I a close give still So or or

Jim Sidoti

other And project, GE pumps? that the you'll RFID related infusion the well to Or is as tagging? is that that be tagging equipment

Rich DiIorio

the in equipment the All hospital.

that set the putting up system Beacon getting So the It's so the knows on. devices stickers are. where it's

hospital just tag. to not pumps. device that they it's any want So infusion in if It's

be pump could it So a bed, stretcher. tags do that to a anything a put I and defibrillator, we'll a mean want they'll do these them it, on, help that. they

Jim Sidoti

if maybe opportunities as goes feels as if it there's be it other so other they're this using well. for with potential mean GE that I there? And well, like there'll this,

Rich DiIorio

Yeah.

it they a well, they're going we do partner it's that going opportunities and and other the prove way. and do up like I some do you right, maybe that say good to do you're it any open help, you're think partnership, what if to to where you need going can you right to good you're

do would and going we I on I guarantee, if of there's we board. but to be come wouldn't we what surprised what to supposed yes, do So more think do, of opportunities. projects types no can be expect these see we're There's to

Jim Sidoti

then companies enough had And me. difficulty have right. of space for in lot place the demand. in getting All meet other the to last manpower the A one

in years. headcount quite think your Do staff invested meet anticipated to and though, the you now past over You've of adequate 'XX bit, couple a is the demand in 'XX?

Rich DiIorio

Not yet.

So still some the I think we have to on do Biomed side. hiring

people. definitely up some add going to to that some ahead sure, people. last quarter, of added to ramp and get early just GE, this quarter to picks have for going to add As enough end have agreement started. of ramp future we're we us more have we're year and more But next definitely as up year obviously, this in some, quarters, We this

And But it's certainly easy It's it's not anybody. for easy, not impossible. right? not

that on skill fit and hire. people who want we for the be to culture very picky years We going have are and right sets. here are We the

culture here. philosophy that and kept we So

So easy. we people when get to need on it's board. not on people board, we get But

kind a to just ton turnover, We of a we're of baseline. backfilling the also spots which don't - have to not of lot get helps

over XX pre-COVID, it So the and last for been able months. was overall, not than X definitely task tougher an it to on to but impossible we've us, execute

Jim Sidoti

How reimbursement place Do sales in have revenue about anticipated staff labor? growth? the outside for the you of direct the staff,

Rich DiIorio

Yeah.

in the staffed grow. a board, Alex the wound pretty have we're think there. care, as oncology I to way that's all to great We to add what there sales generally we're But across about. So part the might speaking, still or answer well cover some of costs up We was while, person we shape. Barry's a here team, for and

should So the margin expand.

If out we but this costs. to. some we think in based variable be how we on many pumps I need the way that think on grow all revenue We'll the in back cycle. much the support wound may It's are in some and door. there, will back-end revenue need we're how going care side, comes support

will grow grow. we as that So team

Jim Sidoti

the think the line than sounds top general, in to start bottom than it you faster that grow But point? is bottom line this the like going at

Rich DiIorio

for sure. That's the idea

Jim Sidoti

Okay.

Rich DiIorio

you. Thank

Operator

Warwick Our Please with Breakout next Investors. from go ahead. Aaron comes question

Aaron Warwick

$XX third the and I top looks be revenue, little the numbers, Hey, it like little numbers. dig looking that accurate? the XX%, to soft into here guys. Obviously, would compared a line a that wanted you're Is deeper growth. of ahead back guidance. But fourth to million was on estimating quarter XX% full year quarter, over in the

Barry Steele

correct. That's

Aaron Warwick

into getting roughly more kind that that to that going the to is you're So or area? cadence XXXX to closer like of be up expecting

Barry Steele

some year. you come - be that a times have at it'd of think equipment deals because the that cautious I be should we do on different little

think I baseline. So I take number that by four multiplied as don't a would

fee As have, things just that's pump, add will there's additional GE we contract continue and time that said, the grows. ramp. it like Every an we'll so to annual a grows

us the other be things there we've get fourth things seen won't of there'll quarter. in So some that actually the be

Aaron Warwick

just then do there. have then ability the to Okay. you really specifically, with developments And to Care, And on boys. think big the positive also you the hear the compete Wound

more precise just happened developments that asking number and different these roughly is attainable months? that but now the back, So a kind the situation of XXXX, had you some could earlier, TAM necessarily think it million guys going $XXX anything, not of in it XX then, was Care said have that And win or I looking that. TAM thought was in of XX, that was of a and Wound XX% potentially you you it just obviously, back XX% that over last for

Rich DiIorio

Yeah, Aaron, question. that's great a

completely So TAM I the think is different.

a little patients billion, I what, specific of home get care, the kind negative a before It to $XXX KCI device. a they bit $X negative but was was billion right? mean within revenue, by negative pressure. of pressure, bought subset with acute in pressure really just $X.X even was XM So going million a of small

has anymore. not TAM we're considerably the world because grown So only in the negative pressure

reason. number, other and a to We Sanara these the don't And and a expertise. they're already a have been They partnership have an We partner. for awesome deliberate a put by relationship. with time this products long this want culture has the or way, products but Sanara. from the with been the making in very percentage with were people to the the I

some we're just of and think some not creating I for years and that care we're things one We think something of special special sliver patients can here after and struggling been do take going have anymore. wound some some care it in wounds. with we really patients heal cases, in the space,

much And So can it, into I really put pigeonholed we're just the is device anymore. we're now market offering negative going after because on right a a pressure broader. much not this not number broader other product not that than

Aaron Warwick

think for a right Again, obviously than now, I speaks answer the opportunity it larger a but that itself. was. necessarily Well, for precise number is not looking lot

an mean can't So fantastic it's for know sounds sounds I like it opportunity. mean good that's And but it of this, comment you. just I to me, I you probably on as

that a partnership. lot you from to both gain have I think

well. I think you for So as that's fantastic guys

it to what double to said Are more are to much would we just that? than than and As numbers be how talking more more it $XX but rough deal, XX% mean relates million, were talking million the that? I on give I you that? mean, you - ideas? $XX any able we GE are some

Rich DiIorio

Yeah.

think, news what still to onboard it we're better there doesn't too. single-digit kind the I going And of XX it's ultimately it's good and low it's not XX has is just number. XX, - just an to a it comment, incremental from it's million to - it's going go to I XX It's teen think was. we're than Barry more do. pumps, I is And right? to think number I mean -

Barry Steele

to our maybe that getting. of around at XX that of One XX implied it XX% control to look devices is way they

we won't even opportunities the RFID - gives reasons, then something them we But other tagging So know doesn't get that the all don't that just for to things. various you other we of and but count like measure.

Aaron Warwick

to terms role What's Back what sales in that? in Sanara the providing? of their deal, support they are Okay. there,

Rich DiIorio

Yes.

starting the year, I So managers, we our go shortly. it's XX, regional think middle so account team sales them of we they has I here still call is it guess like training - out, intact was Sanara ready plus, XX - regional I going built to managers. almost and think last have that to and

negative part Most well. to wound their care in of are to the pressure what side surgical they business, they tied do of is the going on but help as

in to the So that we're addition way. and market team team our their going leverage to hit

Aaron Warwick

are with looking grow, based those terms are obviously Okay. term you then probably about longer lesser sounded was at of longer for Final what one earlier upon then expenses your growing, It for increasing but is mentioned what a in would just degree. me of margins? will at thinking those revenue EBITDA be but What of margins? kind you also like term

Barry Steele

mid- to if indicated pale have led I low we be should back what to investments think the you same would as currently be we've XX% we P&L, before margin. in it our the that EBITDA

of are of from the that lower is all one the As including contribution Biomed, amount. in any you which the of end range margin our businesses, look north at those the

do line. will we the to on key that as to margin So fast it, be overcome we time. pressure see we're to over grow able other how going we Because should cost The be that we top grow things right? got

Aaron Warwick

Sure.

like it run, the be So XX - like you're and steady in to you're state investment? like clear, to XX more or something if was thinking a just thinking that like no long

Barry Steele

Yes.

to contribution grow in things invest - that extra keep there down that we're if to volume in, the right much business. XX I the were are like the bit. underlying want will a future margin. get it help more better a is that so probably Well we think XX overcome to But will the you're to able expenses just more that if incurring you to help now,

should come point. some through that So at

Aaron Warwick

Excellent. you hope Thank you holiday guys had. you, season. good guys. [ph] Very I happy have direct a with the

Rich DiIorio

Thanks, Aaron.

Operator

over to This concludes for the I Dilorio conference Rich turn like our session. to would any question-and-answer closing remarks. back

Rich DiIorio

host we Thank when year-end day, Sarah. safe, fourth has talking to great to on our quarter thank for forward call. call. a hope Please again with you I today's everyone thank participating and stay everyone look I you, want and and you. I

Operator

presentation. conference Thank you today's for now has The concluded. attending

now may disconnect. You

InfuSystem (INFU) 8 Nov 222022 Q3 Earnings call transcript