Earnings call transcript Q4 2023

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Operator

Greetings, and welcome to Electromed's Fourth Quarter Fiscal Year 2023 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] It is now my pleasure to introduce Mike Cavanaugh, Investor Relations. Thank you.

begin. may You

Mike Cavanaugh

quarter thank at Earlier and the joining Electromed on XXXX, the year release 'XX. Good currently is Electromed you Incorporated call. available the of quarter today, fourth company's for June released earnings XX, and The website afternoon, the fiscal for ended www.smartvest.com. financial first results

results forward-looking about we started, I on that company's and statements Any the of are be subject or and management's risks will materially cause and get to of statements would make to everyone such could actual financial statements plans. Such Before as achievements projected. that call statements uncertainties date. this statements, expectations future operating that those represent different considered from are today's some performance the like to including management remind

new reliance statements, this You does company or undertake And not any matter. should as the guidance otherwise. place company's whether those filings a future revise forward-looking statements. for to on SEC the on of further Please refer any information, update forward-looking events to obligation or not undue result

general of in leadership the success medtech in as President healthcare distribution, sales and over with be would Brad Financial mergers to the Chief Executive finance, Officer I joined Electromed fiscal to name will on Electromed's manufacturing, demonstrated a introduce Nagel, on today's executive acquisitions. brings XX year like call, and minute July corporate X, Officer, Jim Cunniff. to a and update. Jim XXXX. years and He to Chief Jim industry you marketing, take provide XXXX broader new QX management, joining

the to President, two the company, introduce Kinetic he of shaped I strategic and acquisitions and the Markets delighted consistently to Officer to was Stryker for Chief grew President, for of call. Officer Executive this President Previously, Director Vizient executed and where Prior Corporation. Jim for Director plan participants President Provista, am Concepts on of the the Executive and the that, Americas revenue, Vice him the company. Board a Jim Leiters, Senior for Board was Emerging Chief

call please With it. the turn that, I will to now take Jim. over Jim,

Jim Cunniff

on It's for and here the look a pleasure joining the first call. My Electromed, grateful forward I'm CEO as to business a Thanks, of everyone our to patients. I'm Mike. I today. earnings results. of update be presenting call quality and dynamic team with to the a XXXX for millions year fiscal of mission fourthquarter full Moreover, year such thrilled of improving with being the life

President of against foundation. remiss over Thanks forward not a exceptional I'd in mention former the upon to Electromed gratitude I Executive to our continue Chief deep is initiatives, strong the strategic to current to deliver be Board and Officer company decade, Kathleen the and leadership building and my business' position Chair. a look Skarvan, for for strong her to

results clearly a I the but year-over-year generating were yielding home report to wanted were are XXXX. in as from year-over-year increase growth XXXX. pleased in more XX%. results record represents financial investments these versus impressive, million, demonstrate results segment, even quarter of revenue, more to XXXX $XX.X $XX.X million, we discuss which will increase that million underscore care am detail another year home strong Total Brad strategic fiscal In a that results the the robust our XX% anticipated. fiscal care we growth key for fiscal I achieved revenues XX% the of year quarterly a $XX.X revenue rate

tied implemented public COVID-XX. of navigated Waiver, commercial which the waiver hired to impact Our for everyone talent, the direct-to-consumer at health sales I the point, key CMS to our We and marketing during growth. remind team last expiration. and And was delivered CMS want expanded emergency about

indications that our It being allowed requirements, quarter said, only typically referrals impact on great expired also documentation devices patient update, waiver discussed patients a and Medicare. waiver waiver the last The easier for All our bypassed, the mitigate fourth did and in to that plans, approval an we the CMS respiratory waiver results. of on job on and approvals. HFCWO subset for provider to meaning and benefited required faster our is teams the requirements reimbursement documentation expiration in May focusing large, eligibility and noting for allowing of worth education for waive be business our by commercial regarding As never a XXXX. sales that the

an being plans, growth our growth our It's strategic continued to growth includes the as fiscal among field progress the of on sales of all force, the -- update in expansion year XX end Turning which them the key see strategic direct across of initiatives. XXXX. gratifying the to reps

at year. experienced full sales team referral per end $XXX,XXX, productivity revenue year of the Our force our ended to and impressive. high previously of flow rep $XXX,XXX productivity be the in in on continues the high the of to target $XXX,XXX coming We disclosed

make team line We in our expansion top consistently excellent they continue deliver to as commercial strategic investments growth.

launch, home QX. strategic Electromed, which into the offered care end first direct take fiscal physician of key enable having which larger We segment. XXXX, In turn the prescribers. we to support for a us to to reps, milestone anticipate budgeting want the Clearway all was open our to are filled a sales moment year by a XX positions will I of SmartVest for pool

to As from the lightweight, in device sleek state-of-the-art interface Kathleen the market third highlighting mentioned in ease-of-use, user sophisticated in devices patients, SmartVest quarter and Clearway's Clearway new clinicians received is design. and its HFCWO touchscreen reviews our offered rave years. the update, This therapy first business

US X,XXX the initial therapy for top targeted of Clearway. the have of prescribers in of launch HFCWO We approximately

is HFCWO had opportunity a these the Electromed prescribers. The of for prescribers physicians door commercial device adoption new not new historically, an expand However, to device a all customers. of to opener existing and

in excited the new our gain launch looking XXXX product vein, to the first currently market. product are state-of-the-art of we in year In Clearway are with forward We of to that to a customers. share hospital fiscal quarter the hospital related leveraging announce launched underway for I'm and the

patient experience. therapy to we our past, As goal the in have said primary the enhance is

has Clearway made new that device significant gives advantage the us accelerant Electromed believe and a Hospital business in I HFCWO is for team our tangible Clearway The we to you to our of an With look forward product first competition. technology for over sales the on advances continue in momentum. growth XXXX hospitals Clearway updating our the quarter progress fiscal update. the device,

fourth efficiency of quarter system of or improve our to to investments help another of in made, have our prior we new made example sales operating touched ramp time Turning we $X.X range. integration investments And the a ERP quarter the a from Electromed the implemented and in targeted million, supply new resource despite from planning expanded a derived on versus We've XXX% into the innovative rigor enterprise income business. have in ERP financial result processes. Operating at people, having Clearway -- new personnel, well. and force, and improved new our year, the income. fulfillment data which end went system already I've systems was device. achieving operational increase insights operating high for yielding productivity The for is already the very benefits and leverage we the are the a

is referrals is that Another team Electromed fulfillment. model business the key and converts approvals component the into to devices This of patients. shipped

expiration. and client as the mitigate waiver our refine we and volumes focus larger the referral to servicing handle CMS impact of continue We

take Next, you the to support I strategic body HFCWO. update wanted to of of goal in a Electromed's another minute on evidence growing of

hospitalizations, exacerbation system. of We rates, and the in outcome improvement emergency studies in department antibiotic using prescriptions SmartVest published quality have multiple reduction life bronchiectasis clinical demonstrating in and significant visits a patients

reminder, patients as and COPD American ran Society Critical of statistically published at As in the shared we patients a Journal Medicine. study's SmartVest, add-on COPD. therapy Respiratory a quality a favorable Conference to and designed the of life response for which study primary significant and using Care diagnosis The with International we results American Thoracic demonstrated of HFCWO XXXX for

We've with Bronchiectasis the on also NTM trial life bronchiectasis of conference patients from & symptoms of effects data of the highlighting bronchiectasis. shared World clinical our HFCWO XXXX, at quality

system medical to cores, of HFCWO to We squarely the promote support as patients, sponsored will SmartVest a therapy. education we at will preferred prescribers additional evidence and the our new from treatment continuing continue generate bronchiectasis aimed clinical

twofold. program The purpose the of is CME

see focus some treatment pulmonologists, to hospitals and credits to most of to important are patients. states annually to a to because identification specified require it to require HFCWO on a to make credits for pulmonologists because for credits bronchiectasis of of licenses number obtain to maintain physicians credential early credits. These easier remain and and secondly, number First, their CME physicians specified necessary medical

drive raise XXXX Lastly, demand. initiative the will therapy before the I growth SmartVest to to awareness key call physician again Brad, marketing, another Clearway, HFCWO over and for be direct-to-consumer of and hand intended

With for to our review Brad? the that, a I'd of over like call Brad hand financials. to

Brad Nagel

this revenue our million, bringing Net SmartVest QX our for which or representatives, $XX.X an direct Jim. segment, $X.X by XX.X% market home over net FY in year-over-year sales revenue XX% million. targeting our our XXXX from growth and and for fiscal process our $XX.X positive fourth direct momentum grew The sales Revenue full fiscal Clearway over refining overall care growth year. revenue increased to introduction primarily due was the XX.X% clinic revenue generation QX teams fiscal you, 'XX, million selling to last or their $XX.X annual XXXX. year in quarter our year Thank of methodology of in increase to represented of newest million in of XX.X% the to

care to increased volumes increase or care our million. consumable revenue The was increased due $X.X million distribution was International or year-over-year or and million by demand $X.X million. by hospital revenue year-over-year to increased revenue primary to home XXXX fiscal $X.X to $X.X revenue increase capital X.X% purchases XXXX. year-over-year or million Home revenue Institutional million. due XX.X% stronger XX.X% fiscal to distributor compared by to increased in $X.X partner. decreased The for $X.X

maintain distributors international our markets. continue the in to support current We and

not However, a growing currently is primary our international focus for business us.

was profit increase home million rate primarily fiscal from related of care in were to Gross XXXX, fiscal $XX.X an representing primarily increase XXXX. or The net and sales that increase to and allowable XXXX. in revenues revenue, Medicare due representing our headcount to reimbursement expenses million including the fiscal in effect investments or profit The in growth. fiscal gross and in increase in million million departments, January XX.X% XX% in of $X.X revenues or of XXXX associated SG&A $XX.X was or XX.X% additional in $XX.X from in domestic increases Selling, costs net increased our took $XX.X administrative million XXXX. general

fiscal for by million compared The to stronger due primarily income decrease reduced million was XXXX in share $X.XX fiscal Clearway was Net to $X.X our of expenses or million $X.XX associated fiscal compared per decreased increase million due in consulting primarily year in professional $X.X fiscal XX.X% to of million $X.X development XXXX to over with activities. was or XXXX current home per income share net $X.X fiscal year or The diluted R&D diluted revenue in XX.X% income XXXX. $X.X the care growth. in to net XXXX. current costs

June equity of $XX XX, cash, As working no of in of accounts had receivable $X.X and in capital $XX million. million achieving a XXXX, shareholders' $XX and million Electromed debt, million total

to With questions. like that, open our please portion move to of the the to call. Q&A we'd call Operator,

Operator

Our Brooks line Lake Street. proceed Instructions] your Brooks the with from line first [Operator question. is live. with O'Neil question of comes your O'Neil, Please

Brooks O’Neil

the Sorry, I the Congratulations Jim. Welcome, on to mute. had on strong guys. year. it finish

in obviously, Kathleen that. a results you, has left ask just tremendously company strong your reflect position the me and Let

and So or potential or over you into or two things strategic have Could about to of next the think the business. out company company, as that as priorities the highlight to you for year you really kind the hope untapped you one two? impact come on the stand

Jim Cunniff

excited Well, thanks, question. on thanks the appreciate be -- and you the really here. we for to Brooks, and being call, it's I'm

a growth. new to some would small the I next came relatively help done lead of to for obviously Electromed strong be to take really helpful. was think, context, and to a Kathleen, phenomenal And company. I'm phase setting Just its as the of foundation a it seeking job has dynamic I I to company company.

strategic I growth is, thus And my have here. this So have successful week that arms been six I'm still company. we The far. been that around investing think, really been initiatives I’ve getting the against

adjustments to will goals there not-too-distant really strategies of couple be that the out future. But we long-term stand a weighing things me. are to our However, in and

that product brand-new competitive it's in there's in a have received that. obviously marketplace. product We for well that brand being And class only very VARs an HFCWO say is new no the can -- other

really we and us, that. into for lean doors want opening it's to So

grow investments the because piece the want grow We maybe put that where not are to a we it's obviously, team, here even reimbursement need sales our making are still a behind The continue them our to also Brooks, infrastructure dividends. potential, to answer to team. need other our internationally in business help some we to in not think piece do to on United But weeks. we're look is, the your of may there's distraction things but within just States. areas the paying in sales that untapped there predominantly I question lot thoughtfully to But to my But team to some there's to six be are over some initial those that grow able as better we that know at, I've business of last fledgling our thoughts are today. the business gotten

Brooks O’Neil

I I for And for help did can a curious about was job fiscal bottling the quarter. I think just coming probably impact rate But that, Great. likely me this you poor what's then the year? the obviously, Jim. Brad, tax to appreciate tax

Brad Nagel

for Thanks the Yeah. question, Brooks.

be leveraging I we planning opportunities As able have the at even last year, fair we're good this a improvement and drive the you just we to slight over of in is able sure at But the be we point. starting Obviously, last expectation improvement always to continue. most couple rate, there. look our that think strategy to out that's XX% mid-XXs saw that as you tax tax of a below are what that the year, I to make years a that, looking think our expect here and

Brooks O’Neil

you Thank charge. for for in much excited Okay, my and I'm good. very future you with taking questions two the

Jim Cunniff

Thank you, [indiscernible] confidence.

Operator

hand for to questions. That have Jim is like it I'd all to the we for time Cunniff closing back remarks.

Jim Cunniff

hosting call. at that and continued investor Investor if participate, ICR the person Electromed, mention meetings or Well, contacts Electromed support an like you'd to on more like September. participating everyone And be to our and your you'd like virtually for thank you Westwick. that's of today contact early in information I'd will please Relations in

I'm Additionally, strategic Electromed's the growing look be of execute plans continuing also scale forward helm business. excited and growth against company this to to to at our and

we a committed We're to operational for easier-to-use to operate expect Clearway continues waiver. new as a a be are lighter team sales offer effects blunt effective any and expanding therapy Our and bronchiectasis to and potential our sufferers working highly catalyst SmartVest at growth high the level efficiency in smaller, we improving expiration to proactively CMS package. a to from of the

to for of to XXXX, we finally, Thank awareness as again will deliver today. build by therapy supporting fiscal data XXXX. a And continuing on well effective in strong fiscal our positioned in bronchiectasis XXXX. and delivered in library Electromed Much you clinical continue year fiscal for to your year HFCWO time appreciated. generate another an we're

Operator

does your this gentlemen, participation. and for Thank Ladies conclude you teleconference. today's

at time, a lines your have disconnect may You this wonderful day. and

Electromed (ELMD) 22 Aug 232023 Q4 Earnings call transcript