ELMD - Earnings call 1 2024 | Electromed, Inc.

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Operator

Good day, and welcome to the Electromed First Quarter 2024 Earnings Conference Call. [Operator Instructions] I would now like to turn the conference over to Mike Cavanaugh with ICR Westwicke.

Mike Cavanaugh

Good afternoon, and thank you for joining the Electromed earnings call. Earlier today, Electromed Inc. released financial results first fiscal quarter of 2024, the quarter ended September 30, 2023. available company's currently at is release on website the www.smartvest.com. The

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

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

turn I President Officer Chief Executive will that, Jim to With Cunniff, now call and Electromed. the of over

James Cunniff

year-over-year and another today's Thanks, over fiscal as Mike, XXXX, everyone revenue thrilled we kick representing generated of quarter of year Electromed results. strong same revenue to hospital off saw and of XXXX quarterly XX%. joining to growth are categories, of strategic All international, revenue growth our fiscal growth our demonstrating I'm homecare, call. million impressive for that $XX.X thank you period initiatives to report the X yielding

in at more call XXXX. to the the revenue fiscal detail financial quarter, compared strong income growth $XXX,XXX to our results. in addition came in the regarding later In provide quarter the in $XX,XXX will Brad of same operating

entire work a the Electromed are of team. revenue, hard increased and execution Our result of the direct

from in intend additional to Electromed key component ended thoughtfully to expand high-quality deepen quarter, second expand talent our larger sales of support penetration a which X selling a representatives, of XX hire continue our with XX plan. the We reps reps team, and We pool aiming at to prescribers. XXXX. up end commercial fiscal to is our the In direct continue year to markets the to of we efforts, quarter physician the to attract for key

have productivity ramp-up our sales a new goal onboarding reps. and the to time of the revamp initiated Additionally, decreasing for we training program of with

our We from in record first rep, will feel results in coming our $XXX,XXX. quarter these and that of per strong of We our track have sales onboarding efforts sharing large. the homecare confident rep rate sales in look forward to have reps, revamped revenue $XXX,XXX a efforts and updates target business beneficial of a no our impact an productivity was to and annualized well the of process our at future on $XXX,XXX range commercial at within team exception, sales

[ lead us. and a Amy brings wealth executive, addition the In in recently sales force, Amy industry, regulatory expansion continued the we experience the to have hired regulatory we to a assurance, and quality are medical Yanta affairs key ] quality to device also of her grateful with compliance teams. and

in the a pleased quarter. TUV ISOXXXXX first we to successful surveillance audit Also, I'm [ had report ]

is Shifting our to to X growth mission. a core in strategic patient business. that gears positive Electromed's introduced updates we to experience With recently ensure mind, initiatives. Helping to

improved frictionless clinical seamlessly the a efficiency, reorganization we team metrics for experience. improvements of reimbursement and First, a for meaningful executed service more service

feedback gathering, physicians. tracking and launched documentation of patient we Secondly, an of life to reporting quality improved way

To believe new in to value that We continue center device. with our services, marketing patients front exposing strategy, by that will is is patients we an can and end introducing we fundamental believe [indiscernible]. add especially educating of health raising and we Electromed. the homecare these the objective Clearway the Electromed benefits end, always the Keeping invest of and patient and our be better positioning for are of new important success patients our values to success And our that our awareness in direct-to-consumer that consumer on commercial to outcomes.

quarter's with provide to some for in beta encouraging I'd hospital launch QX, Clearway underway we're the In to limited last our customers. launch. And I currently of that we from launch have additional call, the our shared like color customers. feedback From received

design a that well our generator. have they not we button like as disconnect does therapies hose as from and our that start, with our single Specifically, only-in-class heard programmable secure touchscreen intuitive fit with manual easy-to-use single the a connect

vest. a the improved included also design to for pedestal the product's make basket to use and We it easier

a is launch we were QX. shaping our result in feedback commercial Both feedback. of fundamental more broadly as to This user improvements strategy

clinical I'd hospitalizations, like on antibiotic our studies. Now as importance an exacerbation and prescriptions the significant We data improvements demonstrating American quality a shared and the at on the of generating for visits you bronchiectasis SmartVest to place reduction of Conference the in life use rates, high SmartVest in department Thoracic treatment moment efficacious clinical in update spring. emergency in the to data supporting Society the system. patients bronchiectasis using We take

bronchiectasis of providers, serves prescribing which continues new our CME to HFCWO skills knowledge, is sponsored support treatment on another The medical similar clinicians. from new continue and clinicians. increase physicians, a focus In continuing program performance to initiative, professional focused education program. receive The favorable our or program the we on health for care feedback early detection and CME to of

stated Electromed or the resource efficiency improve new last a fulfillment help ERP planning our supply and we implemented financial processes. enterprise in update, quarterly to system In

the data improved operational We are and yielding insights from benefits already system the ERP new into business. through rigor

For and demand increasing to ensure the our the of our overall us better course replenishment, inventory reduce on our year example, inventory enable have ordering inventory goods while will over is to visibility supported. which finished we now patient

fiscal a quarter to the year. plans of The growth I XXXX, full into our the progress momentum the significant on maintaining executing and has look Electromed made remainder team in of strategic forward this

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

Brad Nagel

our million, XX% was of of Net over revenue QX direct over quarter quarter in our first driven homecare QX XX% primarily grew last for year increase Thank of you, revenue the This by $XX.X representatives. sales an growth year. to last number was increase the million. for the Jim. $XX.X

As hires training for to with our we to we productivity time growth. continue onboarding new to new continued reduce initiative, and ramp expect see

revenue increased increased delivering revenue year-over-year to $XXX,XXX. hospital from This on manager of year-over-year XX% revenue. the increase quarter by for increase year. account QX to international to XX% homecare due X% the QX by addition QX a last was focused was $XXX,XXX, revenue strategic of an hospital distributor $XX,XXX. revenue

updates, maintain the in and but international is primary our current international we currently business us. As a growing mentioned for to support in distributors focus markets previous our continue not

revenues profit was for the quarter Gross was million material costs. of profit primarily million in dollars compared revenue, decrease net XX.X% quarter gross a due labor of margin or to increase result while or and $X.X increased in of QX revenues increased to the for The the increased XX.X% gross net to FY year-over-year $X.X 'XX. rate

the sales Selling, investments to our of throughout with or recurring administrative to be annual well to the recruiting team. last research as our and for general QX, expenses several onetime totaling market $X.X over remainder leadership year, expenses increase year. in changes expected not are expenses expenses as that meeting, of including SG&A contained XX.X% the $XXX,XXX associated and SG&A representing in compared QX were or period million million same $X.X an

and QX to The $XX,XXX year Research decrease development. last our decreased of to was or due development associated costs expenses XX% with versus primarily $XXX,XXX. product reduced Clearway

increase quarter. X,XXX% $XX,XXX Net $XX,XXX interest increased associated The rates savings increased the cash to or balances. is our for due to income primarily with

had Electromed of of and of compensation The compared $XXX,XXX XXXX. shareholders' cash XXXX, million capital decrease fiscal increase to million no quarters. achieving The a XX, to accounts in of $X in September decrease QX, $XX.X occur $XX.X cash, $XX.X a in million. the equity of not annual is As an expected to in from $X.X primarily and debt, balance working total which year-end million reflects in incentive receivable a remaining result payment is million

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

Operator

first Today's from [Operator Street Markets. comes Aaron Lake [ with Rucker Instructions] question ] Capital

Unknown Analyst

on that get to looks of what being I I Aaron and could things is the reporting sort prepared moving Brooks you on what of was mentioned the I in feedback the the sort momentum gathering, for quality a bit the way This forward an of I and patient sort launched to that want physicians. something you're and that here. tracking guess you remarks, color that Congrats with thinking quarter. of the here. like release wondering strong about and on start of just looking press line if life that, more just in improved

James Cunniff

therapy after it different to introduced We've a at -- trace call therapy. journey time what get after XX been trained things This the home I from And Aaron. appreciate notes. on about and Thanks, on patients' is after to how the days It's Yes. therapy. mechanism the being like training they XX measures call. you they on Cunniff, that they've smart utilize often Jim to the actually the the basically days we

how that patient we're expect to day. duration with We product We the our the using a so of see most of want ensuring the long compliant using patients patients for be SmartVest will patients, to their they're is which then but does twice basically the incorporated COPD also we've to measurement bronchiectasis really CAT it scores, life as of well. It's quality metrics. [ therapy. ] apply And which really is -- most that

is that it back helps them patient the clinicians, we therapy been and doing We gauge it's And prescribed. gather all after how on the so that report our information. to

Unknown Analyst

you. Got

And helpful. Jim. I follow-up, That's guess Okay. quick a

level, could an specifically forward. You've now. the opportunities few the the been a of see you where and just sort months you on company space wondering of biggest going broader impression there updated give for and just I'm a if

of really points potential If X forward don't moving quarter 'XX you mention, to stood continue you here. fiscal and just or maybe things some as for focus you out the major into sort that could I or untapped X as this company know,

James Cunniff

with that I've inherited. mean I've I been the No. team thrilled

focused only starting we're need at month as this we not of afflicting HFCWO we're that, but prevalence a that the they're I Aaron. the reduction to of even the see clinician anti-inflammatories. drugs, lot clearance. they CHEST airway and state space enormous, The space. think disease people looking They're pharmaceutical companies think that recognition also, the recognize more airway company drugs But ago. a bronchiectasis products. Hawaii And the more with bronchiectasis, clearance is that conference to inflammation introducing prevalence is you're not and and are that a And a in, I in on who the are I at operate aware, more are and starting patients, for think patients especially as singularly

really disease SmartVest this quality this chronic to of really I quarter. And We're the excited going just condition, and we And know, this life more as improves the state. there's a Clearway they as the think our lot awareness more in quarter. we so HFCWO. launch more, last Obviously, And product patient's the irreversible use get we us and to today. a therapy. adopted beta for We're best the think of is continue launch help that's and more a only technology launching more we've marketplace you to that got because bore did if hospital of full patients

think get patients opportunities that patients they a to exacerbation. again, are because device, from So then vest them to for discharged. But need very get And patients we a that's those for admitted some discharged therapy, feel going traction hospital additional some get we've -- to very get an that we to device we our a able hospitals. use, got on think our of who we've going there's comfortable, when product getting the be those who to intuitive we're from where got

comments is near that to here is mentioned his do and that United the be in a opportunity. evaluating don't where want So other market Brad that's market, business We're that market. we're to then States And distraction one about for believe the -- term. really the be want golden the the domestic in because really we is, we who international we the this the rest opportunity in of

Unknown Analyst

sales Great. reps. to make Great. super hire And caught then that X Yes, sure this plan that right, correct? to I more? is And you with XX helpful. Is you just ended

James Cunniff

those in filled intend we have this And positions yes. month. X Correct, there to

Unknown Analyst

Okay.

quick Okay. here. Got a just question guess you. for then And Brad I

going that's SG&A mentioned this a the You to like and higher bit quarter, was sounds nonrecurring. be it

about that how should moving thinking line we forward. Just think about

Brad Nagel

Thanks, Aaron. Aaron. exactly, Yes,

reps to better for I show mid-teens think our leverage their of full of be or productivity we lot time. the see to kind when up in our we've ahead of the anticipate the and QX as of have a over we that the and us in going be to us that bottom sort a talked a tends rate SG&A ramping about improvement a but sales goal top heavy of line line opportunity quarter we're to it's as know on wanting of reaching our able year, balance year-over-year over We'll of forward. grow continue that that We do improvement revenue. to show the really

Unknown Analyst

you. Got

Okay. Makes sense. strong Congrats the momentum. on

Operator

Thank you. all and gentlemen, the Ladies for have today. we that's time questions

to to closing Cunniff remarks. like I'd conference any So turn Jim for back over the

James Cunniff

Thank continued Electromed. call support your of the you much you for very today, joining for thank and

value increased strategic our As plans I'm I business mentioned to against and our Aaron, shareholders. growth scale to Electromed the drive continue to to to executing excited

please ICR and quarter. half virtually more please at hosting everybody that our or like Relations follow-up of Also, we'll likewise, in Investor meeting contacts if interested the Investor again investor want an I And contact back you call, our ICR Westwicke. to interested Westwicke. If let in at person in to contact be this are in partners a information Relations know you'd you're participate,

today thank appreciate you, Thank Appreciate investment your Electromed. on and your you So time everyone. again.

Operator

gentlemen, and this you. attending today's presentation. Thank We Ladies you thank for call. today's concludes conference all

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

Electromed (ELMD) 7 Nov 232024 Q1 Earnings call transcript