INFU - Earnings call transcript Q1 2024 | InfuSystem Holdings, Inc.

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Operator

Good morning, ladies and gentlemen, and welcome to the InfuSystem First Quarter 2024 Financial Results Conference Call. I will now turn the program over to Joe Dorame.

Joe Dorame

Good morning, and thank you for joining us today to review InfuSystem's First Quarter 2024 financial results ended March 31, 2024. With us today on the call are Rich Dilorio, Chief Executive Officer; Barry Steele, Chief Financial Officer; and Carrie Lachance, President and Chief Operating Officer. After the conclusion of today's prepared remarks, we will open the call for questions.

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

date can to The except update Forward-looking obligation times by the not any statements InfuSystem speak give law. any statements, assurance prove statements were and company only be forward-looking correct. undertake to forward-looking except does the of disclaims no required made. specifically as as

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

Richard DiIorio

you, a Care seeing in our Biomed we opportunities Barry everyone. years, go things InfuSystem's first this Earnings into prepared with a of provide how future. types on Quarter to XXXX results quarter, I'll of overview and of will and last of all Welcome programs. I'll Thank intend pursue has strategy year. growth us we conclude our Wound started evolved morning, Joe, you Carrie the on and our updates First with discussion over and Call. couple are get for financial our the then remarks the for morning to started joining Thank the how quick good today. detail will the

sequential $XX million in quarter represented increase that quarter revenue. a delivered out of revenue ninth the last XX First the was and

up strong which services Our in driven Device contributors. sales and equipment being results with was Solutions business continuing biomedical by year-over-year XX% our were unit, strength both

on business our growth where developing first focused second, constant of discussed we a Then followed increasing the business, themes, today's process of diversification call Carrie long-term third is I'll profitability. new quarter our have to One service stage be a cycle business. creates by on new enable opportunities. nature of the last the improvements invest the driving to onboard we how

is start rental X When more revenue releases announce in growth more a of investment record part an reason Wound large are a our press the revenue phase. material closed will mode, is year. The We that presence business sales oncology of center sources. most is ramping said growth on priorities accretion of in to have the is that This for while XXXX this mandate, of XXXX and year. that profitability happening, our is this have delivered delivering business are to we our while of maximizing are close efficiencies going that down is year. biomedical But teams year. next part quarterly diverse likely next up is X readying deal top of to customer lot initiatives new be And new revenue the our that we our Care heads their in operating half because layer showing our teams contributions a our second in an biomedical contracts a expect by early another and in for and expected it [indiscernible] it with is numbers,

for revenue growth in way operating confident and are business, on working plan. the diverse our initiatives our all forward target quarter we first in year. came results There Our are their across

Moving to profitability.

they a came which the of adjusted of XX% expenses it first improved gaining with few and to discuss year. our and believe that are is executing We targeting and I clear our that year. the profit will looking minutes, improvements are turn was approximately results. are performance this Unfortunately, first approximately our new efficiencies new big business over quarter's as impacted gross diversified nonrecurring detail this I operating $XXX,XXX have picture, a more by business EBITDA. Stepping long-term at that on plan in in who momentum and outlook the operating Barry, our prior impacted $X.X margins XX.X%, back in to and strategic a before driving never are better. But strong on the that, pipeline the part million, been increase opportunities provide I'll of seeing quarter compared operating it the will for of at Gross initiatives

Barry Steele

joining main systems. call how drivers current and to preview you it I'm plans our thank topics, quarter. the and our for on finally, for during invest Thank in you, on Rich going current X everyone, financial position give focus I'll a information changed today. you, And quarter's our our to on us the the including results,

start with me our financial period. let Now the results for

First totaling all-time net million quarter XXXX another was revenue record. $XX

higher revenue prior equipment The Device due and makes million the Services reported. or $X.X a and included to comparison lower, rental GE Wound prior Patient represented for slightly that strong came out, the segment segment tough the XX Care. X% revenue the and Solutions from year out to higher revenue. The the mainly $X.X Healthcare from sales of quarters record-breaking was contract As totaling million X Oncology The growth last from amount increase a a Rich year. pointed

during offset lower first by was XXXX. We billings billing XXXX quarter $X.X due XXXX revenue amounts $XX.X net sales. Gross anticipate were For in higher small increase. the amount normal This more patient which followed of and Higher lower the million period first quarterly higher which despite following lower percentage the Care Wound of the co-pays than usually wound XXXX, to year current amount, higher per a Oncology, pressure equipment improvement a in the showed coming higher in the billing was million, very higher seasonal revenue. revenue year pattern mainly for after billing the lease. pattern. net X.X% for lower Net the strong revenue normal quarterly care of was first deductibles the net which XX.X% sales offset the is having prior That therapy strong been sequential per volumes year. the prior of treatment particularly during The during a was partly of margin on negative first equipment to quarter. due year gross profit up or driven wound first in from prior quarter sales, but XX% by quarter quarter

partly Services the XXXX the were when first reduced to increase was have particularly high per ramp-up Biomedical costs was accelerated. estimated contract due year a pace Healthcare in contract for expenses billing were the for for net year-over-year resulting previously by the mentioned. Start-up the reduction costs expenses The improvement. mainly during and lower These current GE the offset abated, revenue equipment. missing in quarter GE contract Healthcare These start-up

prior in and the Additional year. expenses, an improvements the and timing-related with totaling million, first included and XXXX $XXX,XXX quarter expenses million, to $X.X increase revenue XX% [ of general are a increase ] representing for increases expected year. Selling, nonrecurring of $XXX,XXX. totaling expense higher buy totaled of This $X.X compared we associated the inflation and administrative move as through increases as $XX.X or million

company's in paid I a based company's expenses $XXX,XXX. former consent and first compensation These tied fees resulted program amount other totaling related totaling expect related to include expenses metrics onetime benefit amounts volume-driven expenses in increases Nonrecurring to XXXX our higher net the increase higher their and not $XXX,XXX, quarter totaling accounting the annual $XXX,XXX. The and to equity-based the which vary fee amounts EBITDA during revenue conjunction totaling during missing management that recur commission reorganization higher in increases higher was a quarter rates, short-term expenses and decrease which Fees firm quarter the our included The in expenses member portion legal adjusted to $XXX,XXX. and legal or in expenses included a recorded cooperation associated of program, higher expense, remaining that revenue pump million factors. agreement to with timing $XXX,XXX. agreement amount did annual expenses. Adjusted Board of were expenses of expense represented to SG&A the XXXX approximately in other recorded fees $XXX,XXX. paid the items for periods was operating former legal including from EBITDA mentioned, cooperation compensation lower $XXX,XXX. $X.X This the a and impacts, for a a not totaling project $XXX,XXX incentive in First the simplify audit in quarter nonrecurring the the we of a just with included which XX.X% expenses other structure, to to on of the report quarter some other totaled for include and file coming do and in in $XXX,XXX XXXX mainly

financial our a and on to Turning position capital few reserves. points

$XXX,XXX improvement the year the sequential working cash flow immediately growth operating Our of lower increases our was capital This over an quarterly first the over prior totaled for revenue reflected periods. prior of levels, first slower to quarter amount a due in quarter. which $XXX,XXX,

reducing less our begun partly from revenue were relatively This to the lost net of initiatives amount during $XXX,XXX increase year decrease as related the been our represented growth sources we from services biomedical pursuing and pumps. first have and including of quarter driven amount. utilization, capital-intensive low being prior revenue is such a the million Additionally, capital pump expenditures number lower the from XXXX to source $X.X

the the line requirements. We our extensive reserves amounts backed continued from shifts manageable growth be to cash of leverage of XXXX with and revenue to continue more available growing positioned and factors, back flow through credit to well product capital expect revenue debt significant from growth fund lines. Because operations higher remainder revolving of net service by we as liquidity partly these

Our XXXX net first during quarter. million the slightly $XXX,XXX by increased to debt $XX.X

strong liquidity million and $XX.X continued available end to Our quarter. at be of totaled the the

was debt X.Xx EBITDA of total Our of to adjusted at the end ratio the quarter. modest a

our requirements same protected outstanding an of expiration. increasing with consists through term of credit and on Our the payment nearly of million having revolving term $XX interest line years debt X swap remaining rate with rates balance from in interest no borrowings the

our some plans share to invest in me applications. technology information and let of Finally, business our

time business XXXX also our launched of full As vendor under growth are and million expenses, Rich past and our year, replacement and expenses couple a our expected augmentation not efficiency is was where we end staff reported is selection include our period. and payback a have to fees, over ERP will but occur we continued and productivity to These includes project million has as $X subscription total we XX- which costs, some enhance life will project favorable other on the the operating facilitate to project improvements, changes necessary main weeks. of the embarked of grow, past for product, earnings, full related will staff after cost staff internal expected over continue The provide due time absorption expenses. The This and software of of the for miscellaneous when expected applications. the to an a support. The consultant in our particularly and mentioned, is between and a project investigation augmentation XX-month The are be application to direct core to deployed been upgrades. upgrade $X on return integration approaching complete. of investment planned

will Carrie. call the I over now turn to

Carrie Lachance

comments, developments our Wound of will summary current and I a be Thanks, my initiatives. Barry. Biomed brief providing business to Care related In

service and planned, quarter, pumps during the facilities with of as GE agreement the we Healthcare. initial master first Biomed First, under the completed onboarding

shifting While changes operating of the are familiar, are efficiencies. to most and related locations, there we part, in or working updates for dropping we now focus always we facilities adding which be swing are with GE to full will in

have XXX,XXX to We onboarded approximately date. devices

annual work has parts. cycle Our X

First, equipment. we onboarded. to on what is maintenance That when focus inventory perform repair each and annual certify certification, we is device all preventative

different to maintain devices onboarding throughout our and good year, Second, than second the onboarding year. last the years and be work order working will initial we year initial now following the preventative services in going back the we to Having provide recertify equipment subsequent vastly the necessary year. onboarded the maintenance, biomedical completed involves

taking we with, coordinate know that to As care the course facilities know fleet year. of and prior we and the we of condition staff the of team the because over the devices need our equipment we've already the and had

in technicians we already year, each our this geography. Additionally, positioned have

the place part into big onboarding equipment the putting of to each biomed of under to a every is As refer we the in covered This on team maintain the facility our network was call. MSA. national technicians

less us. Now Fewer staged a staff that work travel the in we both there cost geography, for to can and the have maintenance time doing task our people minimize technicians annual effort. necessary, the and of is be look are cycle smaller preventative by local is the

onboarded, keep full for of almost Moving last continual systems is operating is that by towards basis our as devices margins That we be culture all with year into a into the of our text, will efficiencies already higher care our than we and the Biomed managing day-to-day be and said, will second our major much taken to on improvements year. being this the our improving greater in driver process strive and second the future. proceed into efficiencies MSA. There term year deeper higher and efficiencies will

with to to additional and the the XX and revenue new us increase to work by increase our have The higher have can realized built efficiencies we positioned allow in that plan various to absorption we leveraging perform under MSA. leveraged the to addition incremental will lowering under execute over substantially costs, revenue In deliver we technicians margins contribution. resources Biomed last months contracts. Rising geographies be

are first progress and in incremental revenue efficiencies following During of the round identifying Biomed quarter, in the good planned both these and first delivering making we opportunities. the cost

Now Wound turning to Care.

developing still are our progress area small, Sanara. are significant opportunity, Care especially of in our this those being Wound we aspects relatively under with multiple in revenues pursued While venture joint making

to are wound business year, increasingly of last therapy expanding addition that into saw wound pressure In we distributing we distributors. advanced and an facilities care Sanara's negative channel products the

in in be We the about will are Wound news there confident our that future. near more Care programs

you, Rich. to Back

Richard DiIorio

revenue excitement I to opening, also business. about purposefully communicate and InfuSystem's are momentum I my diversified. direction the growing and our started that the In becoming within sources Carrie. increasingly noted Thanks,

In seeing I addition capital from also the trajectory to a diversification growth in more of providing are consistent earlier, the referenced our welcome intensity we business.

before growing. has up, Biomed We been continues now commented incremental business, set investment the it our national require that relatively little have that as we'll network

less in have also we our intensive businesses. with capital are what and Now oncology seeing be care than that initiatives we wound historically rental that our they should seen

years we Going that business, in few further and extensions. would of model started adopted the product to of back our and evolution oncology, platform other therapies. the That when a described beyond third-party business by replicate strategy oncology opportunities we payer was is, line discussing that one we extending our recall pursuing our

wanted to us last-mile offering. pressure partner in them That Oncology response to was and for solution approaching pumps, a was the to then thing to what for Cardinal a to similar their fairly improve do obvious with negative us Pain we create What in Management. they to had created

opportunity, becoming Cardinal our from other the framed evolved significant it has see announcing we now announcing earlier negative directions, therapy. and in growth as that platform orientation. business strategy, our So third we our pump pressure since in away opportunities centric But

services see increasingly a is partners' allowing model us around a wrap a of developed and We Offering companies are to platform other services to more company. by highly assets unique evolving compelling, This products into InfuSystem business skills and that and suite assets plans. skills platform of our as our our partner. these demand in leverage opportunities increasingly

We less stream faster us, steady on we investment many of payback are a likelihood and which are upfront of generally require involve business of a by own. pursue opportunities, our less present risk the than might initiatives seeing bigger,

drive with partnerships while more we've to over several for years. a in growth enough of lines, been front than us next GE those our relating Along are Sanara that the saying opportunities the and to

X,XXX among is, Let see of a multibillion-dollar new GE this revenue in opportunities around expertise medical leverage small of company, the large developing pumps. course, infusion by partnerships. our things, maintaining approached walking they takes me explain of some the as and us such hospitals equipment country, that other fleets to and in clinics in or through these Healthcare looking of over we devices across care

Biomed a on We have much is we growth for the to emphasized have point focused bigger been in beginning But the the services only initiative. master starting agreement. also a that [indiscernible] MSA

hope for the results opportunities, the we with to coming continue business top rental do prospects for are GE that, works national in them having announce that later deals into as expand are can of biomed there core the of care on beyond from this top us account relationship to a deploy the for network original our the acute There we biomed speak On of us work some developing opportunities additional are year. And and through that new a GE to we ability We us. to open the doors channel is our technicians. to GE MSA. seeing about reference of

work with opportunity to our direct Care Turning Wound of to came us Cardinal. as in This a result Sanara.

and Just as the pursuing continue original but as can't we new the skin distributes to opportunities negative where go and also wound to we see payer channel. into third-party I relationship and today, of partnership wound expand detail care opportunities original matures. this includes care, advanced skilled are There distribute care the the are that as skin channel much GE, supplies emerging Sanara's well occurring outside products facilities. currently and include solution, pressure as with wound under solutions InfuSystem products into initiatives Sanara's nursing long-term the that care advanced

And X has Health earnings is each finally, that its Tissue last calls. Sanara spoken to the project Plus of there on

larger and inbound companies of that growth number to us, the pursue opportunities are ourselves. involving we might quality than and far bigger the often Given coming initiatives from anything

well had and platform solve ourselves skills assets we could see old possessing for our difficult moved our looking a unique past can InfuSystem where that problems increasingly to that model. We for therapies framework have extend We as the deployed oncology be additional company partners. services

biomedical And of the our and culture the glove services, cycle, provide skills are logistics, proven white technology. We that patient first. have of of these to by needs revenue service puts all patient and backed ability solutions support

take to InfuSystem unwavering commitment making their opportunity like this for our patients all to thank to this I'd always, team the of and As for possible.

color Q&A, year. guidance provide around the for Before more our I'll

release, in high for said press targets and earlier remains revenue adjusted the our EBITDA this unchanged from growth in we As teens the high for the single-digit year year.

coming guidance we update have comes quarterly current results. forward, we future are and business achieving We lot faster models of our calls. a business our in forward will indicate, than these confident in If

incremental that guidance As developing guidance upgrades can related in Accordingly, the see. and provide expenses the financial the anything our does this does we result things gains could past, in include clearly we year. we include systems. Further, initiatives current emphasized not only our company's to guidance have not on of ERP for revenue software planned

Operator, ready Q&A to of are we portion call. the begin the

Operator

[Operator Instructions]

And first up, looks Lake have of Brooks it O'Neil like we Street.

Brooks O'Neil

-- comment might second distracted about Rich, included whether you and last expenses just a or the have the ERP to would thinking system questions. I that the repeat But related First, guidance? very I for were they been you about in not were made

Richard DiIorio

it? answer you don't why Barry,

Barry Steele

Yes. Okay.

not in we So expenses guidance. include did those the

So for look of we we're not expect them back for the expenses. the EBITDA EBITDA, our include amount adding whether don't rest disclosure. sure at we But adjusted year, we'll those be we the when of

Brooks O'Neil

about then thinking And philosophy, of I -- what a helpful. about That's just lot. sort and Okay. you I said, a I'm the that philosophical guidance question. appreciate understand Rich,

opportunities you see the to let's opportunities pace asking not is the do that. company and the though, of it, makes could the you envision, say you at Or just you it to conceptually a growth? would do but a I'm opportunities I'm grow new vision laid company's for think you than a can revenue see think I as long-term -- out where single-digit expectation mid- faster call conceptually? sense. curious, about ton you high guide, you

Richard DiIorio

now? guys you me Can is fixed. hear The audio Good.

depends are fast single year, of I digits, what how term, Brooks, It overall where opportunities every the prior are grow in it should think the long on the comps high we and in year, right? the development. year So their single prior not kind be

us GE. in Wound there's opportunities forward as us coming. of every moving Care, probably the a I'm other with year the I I on mentioned, long-term a of And double after be digits that our under going year. getting not feet relationship we kind And think our shouldn't Sanara into number kind have this to but put for with with biomed challenge growth, now

up XXXX has next Wound for opportunity start The running NOPAIN X, Care year. really should kicks Biomed should by a right? lot flowing pain January in be then. of in our and things, Act

double accelerated growth just long-term X%, So won't We're another shouldn't saw there digits opportunities, onetime starting most doesn't with long beyond, it X%, coming growth other some it opportunities. they X-year into our most have more last mean year. thing, of this not in the we than GE It's been. be It that drive and these like to in of double getting has think that growth I 'XX these issue. digits. grow just going, this should an We of year year things and hit. should pretty growth and little a We getting where we're be the markets getting year it's not term, X%. right? are bit was to They're years But long-term partnerships solidly in. come onboarded a But for a be we growth

Brooks O'Neil

over business adding that I'm And broadly adding biomedical leverage assume go about on today, a so to that platform to Great. could were just you services your and you you thought you just the not different for I the model newer there much Wound opportunities are these few devices which capability? devices about thinking mix. curious, in the are that described oncology. come years, you've And new means Or But past then obviously, say opportunities directions would going Care? to within talking be

Richard DiIorio

evolve. to So and we're in what we've going last future couple the over what as the seen see years, think the of is I businesses

win up can an years our it Pain, that to of a few right? example. whole at to sales we a going in The take it, of wrap that, take costs talked is try can right? team a a as market It new about money I point, there's we market started lymphedema bit a around what You're right? rewind risk the can mean, some go let's stand with even do the So some X quite to ago, Cardinal. device, share to use company. it. for you of and we services blazing if and So the trails we've and It kind done while, concept

all the Oncology market. supporting our is opened talking difference into is GE, already guys that's like eyes need have to products that contracts, support we stood real our it in be that biomed identified really and models team Sanara our market. into that, They revenue help, this to to just market. something with was built blaze and to doing get The have And team like which products guys. new with it's And up those our to sales there. with capabilities came our we're great new by and The product right? is just is already right? didn't would your us and Whether a a already put team We your we GE, business need right, and leveraging said, the cycle trail. already The them trail these about

Those my to inbound hunt not are -- I us. go -- And a more don't them. to us. lot have remarks, I things of have see on. think the you'll of coming those we already we that said there's We're They're prepared type to in

this really we done. that It's And from where market and just we and It's how modeling team started. nuanced -- right? was to kind a a of out, can team. purposely the something Sanara have a to not us. it team started to just point us it's the very it Barry's we where with we making sure matter sales of making it's makes brought it's financially, sense Cardinal, get change, That brought Now just sure it evolved

-- acquisitions the made us the of we acquisition GE. Health brought OB One with

I capabilities is build going And And us entire with to trying plans, see our on much better their than leveraging I a think that's fit their building the to you're their our in future. the think, more what models, business products, own.

Operator

& of Jim we Next Sidoti up, Sidoti have Company.

James Sidoti

said late What join I you to the call X%. as this And the the behind a I really calls. already, if year? Sorry, know was that? do I it not in But to had there end where of just business but don't that or you couple up Oncology -- can expect you was

Barry Steele

Yes.

year higher Jim, model last this than That last volume that bit sense. was an was year and But realizable but revenue was So a year, year. only more year. was net we last it normalized adjustment year, revenue actually our than impactful anomaly. had this gross-to-net this If lower more makes because

less and we pattern this we're we a as year that the year improve our more to expect prior So through year, months QX. go because going the where normal gross-to-net actually than there's co-pays deductibles hit after

James Sidoti

All right. Okay.

that's I been a growth business, year? historically, think low it So mean, up this ends single-digit it's do again you where

Barry Steele

our affects compared We'll that's of back That's absolutely. Yes, plan. bounce to QX, terms and beyond in -- and normal. QX and that our in profitability

James Sidoti

had first auditors. come... that a do one million? the think auditing activity quarter, that over you up lot you reasons why the the changed you of $XX I And in Is know of And where Okay. G&A

Barry Steele

generally, quarters for other in we EBITDA have us as in quarters. expenses we're now that's -- our that we with a incurs had auditors. higher And extra a the just for in that's and integrated way, we old to we switched was had because These of that us quarter way there's us a X more main that a audits the book impacts being one to the first audited, fully by of the predominantly because control consent that our don't first from amount much get first the doing generally hits expenses quarter. seasonality of because audit expenses the audit in some audit and them the may auditors quarter And as our we give

big year. just pretty this So of a in impact QX

other more the is such thing and other in annual hard sales our as have first some places. other that meeting than marketing we hit much things quarter The us an of activities,

from So quarters. going pattern the the lower and We're EBITDA see an in the TPP the higher higher well. marketing quarter quarter. other the result that's the first to always first business, show seasonality audit gross-to-net as first in Oncology past our between of than for quarter profitability perspective And expenses you amount in and and the expenses

James Sidoti

Okay.

G&A and a QX those So on back expenses you QX? think in

Barry Steele

That's correct.

the As significant amount a right, won't we coming of onetime that year, quarters. pointed there's the other seasonality, obviously only in that but we repeat not out, had expenses this

that that of didn't... of EBITDA, Some some hit

James Sidoti

more And QX should sounds Is Okay. we right? you're and QX really it the have impact as then progressing. Sanara All an expect that that probably in like something is right. and of

Richard DiIorio

ready training starting most activities last see the we and hard. year. on Yes. And out the ourselves and increase a comps of slight This with we just are their guys getting year I equipment with sales hitting licensing, last team there did those everything. tough of year, the even spent mean the accreditation, leases

we're grow. right? have comps come the that's those to and and So they leases going Care leases products of couple quarters, to revenue the other The the -- products next want, Wound in. not the We though, we real for nice really still when we have want Sanara will they're

traction. The a Sanara come team growth term So is some getting we the will in, we nice that really looks have to in much this good. long type want just to year is gain than some future. of better starting leases those

end grow, I start the it and next hockey year into and think by year. of should it see stick really quarter-to-quarter, up to to this we're going certainly

James Sidoti

there where another could that equipment And point, All X or me. two? you think for provider other seems contract be you do right. GE year out are it like want at but land last And GEs you All with? next another you're over the it is to then working this with right. there

Richard DiIorio

anything we range. agreements the end can works to of Yes, have little million from that to the the the implement. million we and speak to coming. a the hundreds profitable to $XX of I they thousands are to think They nicer. -- $X tend more be But have those year we in see hopefully some that of GE, things more by easier much And are now $XX don't to range million. I over magnitude

of and some And you original them MSA the with and we visibility now see on we have taken pop on which -- team, governor the starting we So make the we're off we've purpose we're now. reins we'll focused sales guys because kind into letting go, contracts, the opportunities we as those some GE taken sign we to to We've up. off that. the put sure wanted things guys MSA, give

James Sidoti

in Are expand have teams the now? in Or you place geographies where you you would to stay looking same again...

Richard DiIorio

Yes. And the everywhere. have geography all technicians much right? pretty is country, news the over good is We the

So restraint there's not where. a lot on of

Operator

Aaron Instructions] of Next Warwick have up, [Operator Investors. Breakout we

Aaron Warwick

of seems guys from But reiterating a good and the in quarter towards that you the it terms that -- surprised had obviously you're you weak little feel a been a almost little when of more the end question prepared to I about was First, quarter of to both today. out guidance then EBITDA. adjusted about and revenue the about quarter. guidance I relative start to I Just conceptually you the a spoke towards I the what remarks. Rich, talk bit guidance, first there, mean, the would and put end first into wanted off And have wanted Getting the

you're So sounds Is the strong like year. on a it X quarters pretty that... back of planning

Richard DiIorio

Yes. that's Yes, right. I think

we on are right top line, plan. the On

what is other we opportunities exactly show of expected up. as some Wound this Care So and ramps start to these

effectively On line, are the on plan. we bottom

nonrecurring of some mentioned. the audit things out the that take fees you happen, Barry that like If

should So the on be. yes, we're things throughout year right of we thought board. come these as where grow kind would And we our revenue

not So bottom anyways. about to those concerned yes, on line low is numbers. And QX the we're getting always

stuff with I just those QX, that right, mentioned in the or think comes Barry of -- that all time it. timing just one

to for nothing quarters. about worry X last So the

Aaron Warwick

it sounds Okay. just there bag, already of have sort to I But that I in guess, still you play that... for your won. new not already you there's of indicated still, potential that's envision out. have what have Is mean, And anything guiding obviously, like the because not philosophy building in you upside really you're even can

Richard DiIorio

side number, philosophy, can our we I don't, in that Yes. right, they to the out, be. risk If And model. always we'll upside the be mean we into should there opportunity get if should the more the play on the want then they still our guidance. side that's raise there in range than be where

close you is on some working want on gun able to to, but want are. we're start right? to know I that wait, we'll visibility. upside, guys, I until want we So to it. that as if to you even just biomed wait we tell side, on there's But it be let give contract don't we pretty trying signed jump There's opportunities where for I the And comes. and mitigate as to them mean, guys risk you you the that soon the we're to

Aaron Warwick

started recognize related said new what first from? the have there? Is correctly it that understand I do the a you that in you did that, to already have And to press revenue quarter release customer in Yes.

Richard DiIorio

a just it's big the So mean, oncology $XXX,XXX which number. in going actually in of It last have kick sizable. weeks, little will get should a got onboarded to it's us and supplies and also buying we're that equipment we I help it over a revenue but so seeing obviously to month, that's well this customer start from us. and couple renting our quarter, QX QX, bit really

Aaron Warwick

in I because but to... you to we press calls? customer was, of terms no you it, there size? tell should calls in be was release expect of the guys What us between that if Or something that like are or just -- mean, a updating Is going related missed I quarterly on would that there

Richard DiIorio

million their historically while, also We it even by long how it's customer I to we Yes, don't think wants us to out name, Aaron, it once driven release. in it a customers with if different, depends takes a it's of put probably get more you if it's business. here it's visibility big $X we'll than necessarily keep that up we will But just of that our hey, parts something announce guys that. earnings for into permission, win, and But We a and calls. strategic sort just are Those there that open it. think use like do. give we customer press results customers or -- different something or a I don't not it's may the quarterly whether thing. strategic And do for

Aaron Warwick

guess really and mostly that you I sense. of so... makes nature been the past, have in partnerships it's That things

Richard DiIorio

Exactly, yes.

Aaron Warwick

And I leads guess into. that then of kind

I've several kind people now, you been because quarters. some which opportunities, lymphedema, and mean, just for philosophical wondering mentioned -- asked talked you the change. talk opportunities. just you likely haven't about have that 'XX and of this -- I you And you hearing appreciate specifically, some up So until huge beyond, talked growth for me, about I about obviously, the double-digit

put attack at we lymphedema a when mean would mentioned that I have whole that X It as I own. think your you I you to this X on into just conversation you ago. for like TAM. had million started to X context years myself, guess, $XXX said, to something point, this was But was

-- So opportunity. an mean, that's enormous nonetheless, but I

change in what remembering must away pretty for of in you're this I just in lymphedema. be correctly, with you from back philosophy possible I So on if to of from that I'm necessarily terms that seeing to contribution Am now you're from guess, significant type quite the of $XXX revenue pause. a putting be you're should bottom size, not sort that but have line change, this saying to opportunity it million in going these -- philosophical the

Richard DiIorio

Yes.

would with out blazing well build the have plan, the get us. on are not that's was generate some to lymphedema can trails come -- be into Like market, decision-making some the mean, go win right play. And I It's GE scratch? after lymphedema all revenue. does bigger versus lot could, so a theory, into decisions, just those and the us, we it because there's in fit share Do maybe we new what we tree there partner? do. it's for go Do into the for from periphery these we when So some of right? lymphedema market right? right? that that things TAMs play that there's you around have compare it TAM like Sanara, even how really or we So factors quick So but it how

So decision of the making. that was X piece

on based the that. We experience makes Our right? oncology it we support all sense, repair can our products, can device, and obviously

when presented look say GE, it But was of kind to easy was us, you I -- at GE easy. shouldn't

we already -- a They had right? me kill world bigger, go will have after. just right? model with but the phenomenal say can And that in that had but line would much exactly Carrie Wound easy model, market. a is model how general TAM-wise do. Sanara, to thing product I if we in already think it. was We lymphedema do help Pretty to that, has on [indiscernible] to built. I I from argue we best the execute them go products, a partner is knew it Care standpoint the a

we lymphedema all is too goes When to us? we of just metric. but easy up coming process. guys, into have X other and product that is look great maybe off just them. and the in more in next how would help it and to at the they mean But to Maybe model other XX just do, whole That's months. on these how device Do we opportunities us the get we shows takes XX when it a don't to list, see someday, so sales than the for just a right? with than thought What's more a a could get want lymphedema it's I So go stand cost it up partner probably our like to use doesn't these And risk. and market? we and more just own. good. compare picture, into risk a that teams It longer, you the that and more lot do lot It a are market getting the lot us

Aaron Warwick

what had Well, obviously, Sanara. about opportunities GE and up because other said of you and you've open

and the a ultimately, think bottom -- like I being still do that it it for for well, what's standpoint. you willing for it's transition and best flexible you I But know from bit commend going sounds to guys opens of been it on a line. be exactly So

So thank Appreciate. you, guys.

Richard DiIorio

Aaron. Thanks,

Operator

this to Mr. concludes back now over and session. I turn conference the question-and-answer ladies our gentlemen, Dilorio. And with Richard would that, like to

Richard DiIorio

thank great second everyone today's when I Have look forward call this results with to quarter to year's progress our and on for on we strategic our priorities. call, day. a we'll want and update you participating

Operator

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

lines. your You disconnect now may

InfuSystem (INFU) 9 May 242024 Q1 Earnings call transcript