ELMD - Earnings call transcript Q4 2024

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Operator

Greetings, and welcome to the Electromed Fourth Quarter 2024 Earnings Call. [Operator Instructions].

As a reminder, this conference is being recorded. It is now my pleasure to introduce you to your host, Mike Cavanaugh, Investor Relations. Thank you, Mike.

begin. may You

Mike Cavanaugh

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

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

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

Electromed. are review on we close will Cunniff, Cunniff, highlights will I call with call to the and operational the question-and-answer provide over today will Officer. and Jim Chief Jim and President me Joining Officer; some Electromed's Chief Executive Jim Brad quarter. session. With that, from the Brad Nagel, of financials, the then Executive Financial a Officer will now turn Chief

James Cunniff

revenues. Electromed's Fourth third Electromed. announce our welcome Fiscal This Thanks, to for record another Call. quarter to Mike, quarter pleased of consecutive XXXX revenue and Quarter Year Earnings record I'm is

for the headwinds despite excellent $XX.X well of for XXXX. a from fourth fiscal XX% growth we came the increase impact $XX.X achieved results quarter fiscal a the but XXXX. the fiscal XXXX CMS in full our waiver year as full of testament year relatively in impactful at net our revenues X% that at entire of successfully These also period XXXX. to These came year. were from for revenue as team. Total We fiscal same results leadership from record QX the representing the highly in new million, the million, of year team a in year annual are work the benefited and the year year expiration year-over-year from full in Revenues delivered

As you results million for top compelling and coupled $X.X with line which top income full growth, records both improved year both might is from respectively. Electromed guess million, were the shareholder strong demonstrate growth deliver turn $X.X the to quarter operating in fiscal operating These coming value. leverage, continues that line at and driving in

remaining our that the continue program, up which on was operating of XXXX. leverage, purchase which exceeded generated our at million. from We our cash in stock was cash operations approved quarter build to used to of part part Capitalizing end our of May we position, stock open $XX $XXX,XXX repurchase

highlights. I some operating turn call review you highlights I'll to financials to on later to in Brad always, As give discussing before financial more but detail, additional over the wanted our our

our progress service this simultaneously to I'm for capital million and on below working namely X we that which end, as orders. calls, back also inventory year. June XX, happy rates. improve purpose, our goods while overall focused finished regard, a our pleased that lowering the we've has had to on previous continue while report I'm is To $X for to mentioned as dual which been at of First, time first inventory, our the fulfillment our improving our improving in

operating our to growth initiatives. Turning

total ended the the during with year to add reps. sales continue fourth We reps and XX direct sales quarter

U.S. commercial leadership sales XXXX, team team X with these expand our from manager have to sales recruitment territories The total this regional we year begun. for has X. fiscal And already XX we expanded by to to our reps enlarged in ahead will Looking year-end. expanded team,

in upgraded prescriptions compensation received improved our revenue XXXX for a sales has and to they 'XX and for Clearway. performance sales plan With that our fiscal by $X SmartVest The We the for driving have in fiscal range results. rep well year million. sales plan reward also incentive the been result expectations are to fiscal year the increasing reps to new $XXX,XXX namely year these XXXX, for reps we should of strong homecare improvements control, our directly results per

part call of strategy awareness most of to is is in raise underdiagnosed. on to to overlooked of we growth believe key our often Another is this know you continue which bronchiectasis, invest market and development

in and identify the this As to during patients empowering bronchiectasis podium the our over the participants their fourth other of those regional clinicians treat to in better patient clinical care in part total on conferences very spoke educating with received. patient alone were on KOLs X by of and providers These bronchiectasis conference quarter and effort, goal team well XXX sessions population were attended SmartVest. with identification,

minimum our the providers to knowledge, CME performance education some to earned and states credits we important During skills also is promotion course, medical professional the CME as These credits be of are and for annually. that services relationships health which number patients. require to continued physician designed continuing quarter, uses for of a a or care provide the increase

these and Our treating focused program HFCWO bronchiectasis at the effective therapy that is the managing on skills disease. develops and highly

is great XX, June XXX total we issued certifications, initiative. had from a of this which result As

be enable hospital they we in will Electromed departure a to as XXXX discharged best-in-class into year a including our pay think year one Turning business to to grew fiscal from is Electromed, for operational firsts core the who of need the with treated Clearway XX% our was XXXX. the dividends bronchiectasis homecare will year to being it and patients Fiscal as capture transition are that home. hospital that from introduction which for This our filled market, achievements. SmartVest the

to business. Earlier this the SmartAdvantage, place our for introduced good strong we seamless programs in and consists We hospitals sales resources in that of process infrastructure exceptional highlight it payer delivery year, service clinics support receive able serve. prescriber our support makes proven prescription a patient. flow which have sense and clinic product of from being in initiative has ordering and be takes approval This time to improving the service a from to customer reducing loyalty to effective and to we patient

a important at patients. compliance and being also patients' appreciate SmartNotes, provides. disease their This tool prescribe in progress updates Clearway, complements the twin who their and macro the using patient's in delivered for tool tailwinds SmartVest the increasingly being an We gives launched for using physicians management compliance SmartNotes on SmartVest SmartNotes providers Physicians Clearway. patient monitoring progress and of care their which home. of therapy SmartVest remote apprised

providers patients, launched CME add critical year, processes videos new clinical which breathe top the to our also clinicians, serve. needs to commercial treatment easier programs so more therapy credits, ultimate improve during enabling help Electromed's in in web-based performance of other resource clinical actively. On events, and earlier, value Electromed can talent, clearance I also within of they is cycle and team, them bolstered latest and to earlier studies. systems with explore we the we educational mentioned teams the and to upcoming live the for patients which our to center growth of for the tailored is airway goal prescriber was the The resources, introduce

addition to also valuable insights demand gives paying our seamlessly reason of us our have meet of functional team made to is system It as areas the and the in identify operationally. improvements and and deliveries. Furthermore, part areas financially to helped no productivity the made, us In dividends expanded across our system also that business. for we ERP both business, is our the we fulfillment has the hires we to sales we backlogs growing investments

We and processes and teams support to profitability a investment. invest targets, on continue will provide future in to growth return our which our

our moving a over Minnesota and execution, / be is Journal. today call to before strength I in In growth. clearly recently operational strength. sector, a Lastly, companies the is our that from Paul demonstrate named by highlighted results focus Minneapolis device the unique The state Electromed the with gratifying to to of recognized I've St. medical it review financials, to Business share fastest-growing that for I wanted dynamic to public was Brad the Electromed news one turn

senior the ensuring beginning that intend return, from my both compensation know calls, has you call to Brad? shareholder fiscal compensation further price our our incentive appreciation with look year this delivering continue track to to focused drive to since and financials to and growth are I'd Brad accelerated incentive over the results we year operating more year the earnings. team's XXXX, is robust total highly previous management that, leverage and we drive on appreciated detail. along As this on forward in to top hand continuing pleased in of to fiscal Electromed increasing line XXXX. With like XX% I'm directly stock to goals. our discuss with tied over investors' by

Brad Nagel

Thank of $X.X primarily XXXX. support, streamline The year fiscal due last costs, technical costs meals the public higher increase reimbursement QX year territories fiscal the our the has of the used emergency support not recur net both by patient consulting costs overall $X.X for by year-over-year fiscal million by to to growth The $X.X to increase which XXXX. and for focused direct-to-physician XX.X% increase for consulting current recent The quarter, as in process. Hospital by $XX.X as compensation, and or discretionary period revenue XXXX by representatives and development Clearway was prior Revenue marketing patient. Homecare distributor R&D direct-to-consumer in to and increase revenue for in revenues capital and multiple higher revenue sales our over due in by or to for primarily higher termination $X.X million representatives not QX. Professional was in to in million year-over-year million due over was of fiscal purchases $X.X now The and increased XX.X% The $X.XX legal market distributor market XX.X% that hospital our for Net to to fiscal related revenues million. or within to and been a reduced costs XXXX. The due increased expenses or profit requirements, travel million The increased and increased were by XX.X% compensation-related representatives, of higher XXXX, such $XX.X sales expenses demand share expedite sales increase XXXX, diluted XXXX. in an or a to share of in of our combination higher due and was million as $XX.X inventory recur fiscal driven million primarily increase $X.X in in provide million The in increase hospital in expense year, $X.X administrative shipping not for fiscal represented due number reimbursement current Professional increased made efficiencies and of decreased compensation million Payroll or sales the in and the reporting number year-over-year fees you, products $X.X to QX fiscal direct higher in net from related XXXX. costs department with expenses increased fiscal million revenue did increased to to decrease revenue increased marketing income income to annual $X.X into per diligent revenue due net million of our increased to million million $X.X increased and claims $X.XX health in was marketing. described. Gross and grew full bringing in $X.X expenses year fall to costs number associated sales million XX% management salaries for net launched expenses primary the of international XX.X% to $X.X XX.X% technology from our primarily primarily which direct million sales, well over million from are disposable costs process X.X% decrease was year. Selling, share-based primarily XXXX. $XX.X to Jim. X.X% fiscal for or fiscal diluted $XX.X increased was on care SmartVest increase fiscal the million. was in on profit or other XXXX, $XX.X devices of $X.X primarily or to $XX.X personnel sold increase revenue held prior primarily increase purchases, million into research was revenue associated revenue million. of or per XX.X% both investments referrals. Travel, revenue decreased purchases COVID-XX $X.X hospital fiscal decreased to $X.X XXXX within or an meeting million was position. customers the XX.X% which $X.X or income strong year-over-year sales markets. Net to increased direct due cash an revenue positions that gross or did homecare million The to due current XXXX. Total incentive $X.X $X.X interest investment in was XX.X% due do senior in million. XX.X% $XX.X partners. Other XX.X% well million increase each XX% XXXX segment, hospitals year of midyear year in and in fiscal as growth, by representing previously by compared in fees fees. million. recognized distribution our and income an homecare or to X.X% as of of to to $X.X leadership with to net fiscal revenue revenue general the million. information one to the to services XXXX to million the the demand in SG&A the was increased The expenses XXXX. average increased related by average XXXX homecare platform material or growing increase markets and increased in or entertainment recruiting other The demand

$XX.X shareholders' the like call. $XX.X to accounts Electromed we'd the debt, that, of Operator, working achieving As the of Q&A call no move million open of June cash, and total receivable equity a in and XX, XXXX, questions. had of million $XX.X in capital $XX.X please to million. With portion million to

Operator

from with Capital comes question first the line O'Neil Markets. Our of Brooks Instructions] [Operator Lake Street

Aaron Wukmir

This Brooks. okay? is line for Are me you on to Aaron the hear able

James Cunniff

Yes.

Aaron Wukmir

guys, encouraging Very Congrats, year to you and quarter. on see. the record

have a Just couple me. for

So and definitely in you operating great. which seeing progress leverage strong mentioned is there, we're evidence

of to for that key continue as Just leverage going your levers drive on curious some into maybe 'XX. guys in are to we mind you fiscal the head this

James Cunniff

Yes.

got fiscal no were a which a we've as XXXX, a we're settled costs, some challenges quite So supply substantially, fantastic. declined sold things. think cost but expedite chain which the year in especially Number standpoint, Aaron, of I case. during goods longer have we so distribution our we tailwinds had percent this communicated to great with in the of our is the past, we componentry from example, as some from really using couple pandemic, in is an of production. That's of And one

adjudication a cetera. the rep team, help with as a we past, team. we from used have to one-to-one have We're payer had as Secondarily, within reps, longer a pretty in so we don't when et correlation the much team getting make leverage And a reimbursement the add made sales to our between add to our reimbursement patients, on corresponding that investment our on our in-house folks reimbursement we case. sales that's lot more we many no to really investment

So boon it's business. for big been a the real

Aaron Wukmir

to Insmed comment helpful. positive the Absolutely, either how then curious yes. drug being bronchiectasis might or developed if guys with And treat I'm you any you had expectations negative. by affect regarding Super just or patients

be thoughts any would Just there helpful.

James Cunniff

Well, that it's approved the Aaron. referenced the not you innings by think that, early I And has on been FDA. drug

really is by that encouraged point is Insmed focal results, that but inflammation. on the the think I of

patient is vicious at the that things there's So what in couple particular, call a when look vortex. they of bronchiectasis a you

mucus in have have you expelled. infections. who patient gets built they inflammation, be has and to lungs They have then a that needs So up their that

infection mucus. to in the think so diminish And still really going on interesting the that remove not really not patients going I have, those to the that patient the the it's focused still who is that to and bronchiectasis their patient Insmed fact that needs retarding it's the it's inflammation that. But may has diminish drug and

continuum. been it's I FDA. I launched. it on kind we're think early part And silver the been bullet. of again, don't by that. think innings in And approved of it's think so hasn't the And care hasn't I the It

Aaron Wukmir

some Well, opportunities marks less Jim, little company. appreciate a this maybe especially going a you in maybe forward? that believe, reflect talk that I this been the see, and color. of biggest company about And on at first maybe the you next your just year, year for about you've then year the Can

James Cunniff

been really great the We've excited fantastic really I've we're from payers service been calls standpoint able amount think, the the I it's the drive Board, of mentioned love that departments, our inventory team support well. team reimbursement relatively a in they've whether we've or improved Kathleen I've within personnel and a we levels also company But that think areas And that operations business. I'd we still it's cohesive she from that I'd that reducing of to come have. great providing team clinicians experience, enabled that that I the strength different collaboration, job team Skarvan, a with and in in and and taken the I'm and that have all Yes, ideas the to the from Yes, what in results so of department. that year, here. need functional the the our first over past that saddle business at really about to reflect year our collaborating. most of involved really a And it's on in great go our a does is is say it's Electromed to. us we got, as new Chair strength infused I functional really as which very to has the as past, the but that's on a into who's previous

side we're marketplace. side, But the about that in them I we've leverage. to within but lot commercial more a would say really equipment hospital on the XXXX home received talent. team, well the sales more that as It's end as difference. And SmartVest best-in-class on as We've HFCWO fantastic introduced a into been the which still newest a weight. and getting most market. lightest this introduced comfortable, say, well It's also product we So got both hospital of and provide business. to able help the the the the Clearway they're really we industrial has the I'd that. year, past I making design the of with been think be our talked It's successful in very upgraded of the got earlier, it's and we've the at with the tools our then force product with We've side fiscal talent market just

And on our we've calls, in we're as talked team. for what previous then we've about looking some sales Aaron, upgraded

so I this XXXX, to we're of ground in for that's us XXXX to fiscal million is rep, And I fiscal think, recruit what that one our helped better the why, to of is per $XXX,XXX running. increasing year. reasons hitting year talent, $XXX,XXX talent had we $X fiscal rep think which revenue $XXX,XXX per that's to year and the from And expectations

Aaron Wukmir

just don't of Are seen that do major of you for That to out expect squeeze numbers one -- revenue sort in guys curious, And far can Brad. you assume as deviations? the all the ordinary a know makes was pattern guidance. years? past then trends, going I we But of we've sense. kind give Appreciate I specific in as follow if or in that anything quick your they're can maybe the of that. I just couple any we

Brad Nagel

the as to past. do that, as with Aaron. to Thanks support well we Yes, to grow said they as opportunity drive our have in that expanded continue sales for line on the double-digit the the consistently question, operating see team, leverage grow we and continue growth top

Aaron Wukmir

really We're year, about fiscal congratulations. excited this next so

James Cunniff

other any questions? Operator, are there

Operator

questions further this no are There at time.

James Cunniff

and if I'm another Very and Relations the you your we And follow-up pleased drove joining operating again deliver resting to year all for with you, your the thank call, laurels. we're exceptional the of fiscal ICR speak at but time support Aaron, not that close thank And continued partners much in investors. you call. for we'll of fiscal call results We're year results look please year to please in Electromed. good. happy on today, a XXXX, Thanks Thank very our you're interested Investor with today. Westwicke. always contact in XXXX. Operator, for our

Operator

today's teleconference. concludes This

Thank disconnect You lines for participation. time. may your your this you at

Electromed (ELMD) 27 Aug 242024 Q4 Earnings call transcript