ELMD - Earnings call transcript Q2 2025

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Operator

Good afternoon, and welcome to the Electromed Second Quarter 2025 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded.

I would now like to turn the conference over to Mike Cavanaugh, Investor Relations. Please go ahead.

Mike Cavanaugh

you the thank earnings and afternoon, for Electromed joining call. Good Electromed Inc. today, Earlier released quarter second quarter the financial for results fiscal XX, ended XXXX. of December the XXXX,

www.smartvest.com. on The company's currently release available press website is at the

that Before we get considered on the financial I future would forward-looking make and statements, that will call about results some the operating remind management company's like statements this of to started, everyone are including plans. statements and

cause to Any risks date. or and management's Such actual statements could different projected. performance to that those expectations are such materially be subject today's achievements uncertainties represent as from of statements

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

the Executive Electromed's call Cunniff, today Jim Brad Joining Officer. Financial and me Chief Officer; on are Chief and President Nagel,

As operational and highlights provide review with from color will a on around question-and-answer the close quarter, will then session. Brad will the calls, previous and financials, we Jim

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

James Cunniff

second Mike, year begin It's a quarter Thanks, by excellent quarter new reporting to welcome, and a everyone, Electromed. Electromed's for calendar call. earnings pleasure to on another

that million. our and also and job of in remarkable ninth fulfillment in a net a This $XX.X business, all in grew quarter yet collaborated facets visibly revenue on quarter basis. cohesive the on another which did record year-over-year executing income team entire Our was came consecutive groups. sales, delivering These teams at Electromed's our most revenues, manufacturing highly of

of $X.XX market. $X.X rewarded record record fully and in that per performance $X a diluted or million net has income was the by quarter, I strong share. the came operational note been in at would income the Operating million

periods XX-month of shareholders. X appreciated the our has over significantly to Our the past and stock benefit

value, think know, in Many safe and say I of to key has you ours goal succeeded of shareholder it's have enhance a that regard. to been we

an follows. However, improvement operational that continued we to success momentum are ensure sustained the and on financial as our organization, focused

jump of into An market our by most performance diversify of our is With details remains base segment can our acknowledge truthfully equipment partners. quarter core Homecare the DME reflecting quarter, are that, revenue tap quarter. the of XX%. other but curated strong important some homecare a into the far, hospital we synergistic that there that our let's customer we beyond our Also, by aspect segment. note, of important growth the segments our demand to of small relatively carefully have from albeit in segment in durable distributor for us. network relationships in streams grew XXX% our Of resulted are medical or year-over-year from base, DME

pride doctor's delivery singular to Along Electromed's user-friendly direct-patient culminating great in key we fulfillment through a with and handling focus the home. technology on a the HFCWO marketing prescription, business with in market, and differentiator airway model. process We advanced beginning and believe what in our continuing process, payer a the most is the in reimbursement is the patient's take clearance

on in this commented In previous in of improvements quarters, personnel, area made we we technology process have business. and the investments have our

QX working continuing needs. XX% also XXXX, compared capital to fiscal to our patients' reducing improved of we by consistently therapy our meet while example, For inventory

our reps Clearway of of track adoption XX to to reps, market. of ended make XXXX. QX that end goal the which team by with into SmartVest drives of on puts continue the investments internal sales quarter sales in sales We fiscal XX achieve the We the direct the us

during system initiated also some also we new are to things experience. better team's CRM and will further There the quarter, the productivity, collaboration. the improve improve doing edges other Along with headcount, obvious enable insights our additional customer internal market the our processes investment and which less an commercial enhance a we're in around

For customers have then call, them need various so one they we the to which phone our phone consolidated numbers, to reach. example, department to route number can

and also of We remain us to printing, inventory of moved printing stock of so our they marketing the immediate marketing our will marketing digital relevant changes from also materials to reducing which our enable make materials the on-demand the cost size printing collateral. while to

raising as Bronchiectasis for quarter, needs vortex with Clearway by inflammation, removing last reduce of the that on the of SmartVest and in infection clear the treat critical to vicious their that the Clearway help their on protocol. their airways for focuses well to patients to technology bronchiectasis focused SmartVest break bronchiectasis mucus future often announced on awareness inflammation. as infections use treatment campaign I and role the plays and had a campaign the we Triple The Down During patient's kicked off overlooked fuel

all includes this launch, greater clinicians of sales will since believe the our result over and more Overall, awareness of prescriptions landing I'm facets we performance our a engaged through campaign page, XX,XXX and with campaign digital and The with in very business. happy We've advertisements over launch efforts time. tools. these across

the which and rewarded by high executing those level, strong positive is results, at team results financial market. are Our being generated a

revenue worked We execution to in people, infrastructure continue team well, has and penetrate needs provide to of the to the sources improve processes further equipment blueprint our and follow that to while and so our achieve specifically investing new tools our will goals.

to more turn now With financials. of Brad? a that, for Brad I over review detailed our will call the

Brad Nagel

XXXX, XX, for Jim. the about amounts to are QX FY and X XXXX, December I'm FY compared or months XX, the our to months you, review ended X ended All QX December XXXX. Thank XXXX,

revenue million. was sales in approvals, representatives an XX.X% well due within growth approval. in as to $XX.X increased efficiencies home as $XX.X to to our and $XX.X our million. by grew increase by net in incremental year-over-year up revenues reimbursement business $XX.X and department referrals million, Net direct from care higher direct from revenues Revenue The XX.X% per driven million

in per primarily range revenue average year-over-year. revenue $XXX,XXX. direct revenue distributor was weighted increase the $XXX,XXX care than by home slightly annualized higher of due quarter demand. the annual increased This was $X,XXX,XXX, hospital revenue growth of QX increased to sales was year-over-year representative care million. Home The to and XX.X% target $X Electromed's quarter capital an disposable XXX% $XXX,XXX, for

X.X% purchases timing that distributor customers fluctuations Homecare timing purchases in revenue fall the do quarterly described cause on of can are purchases other cause Other other distributor above, by a markets significant revenue reported timing $XXX,XXX. and The basis. affected basis. in can distributor of growth within sales year-over-year that revenue to the was increased reported a in primarily revenue due to quarterly by on fluctuations not of the international which by

revenues Gross XX.X% result increase from of profit margin or was net year. or primarily in increase gross of percentage revenues volumes. net the in The $XX.X average The million to higher primarily net device. of $XX.X profit revenue QX increased per XX.X% to a revenue gross in last million higher is dollars due

related compensation representing including current expenses and or or general year-over-year. XX.X% to of support, higher personnel of higher costs, compensation in SG&A marketing year sales, $X.X vesting awards the to higher primarily process average of the the due equity million Selling, patient to sales as were increase incentive as an $X.X with share-based associated million, reimbursement and increase compensation was The period performance-based number and well referrals. salaries administrative

primarily are results our per have was we executed The these income share. shareholders driven a When QX $X.X in QX in of was $X.XX quarterly a record thrilled XXXX. to million growth of diluted of operating together, compared Operating pretax income and record revenue $X.X for by all record income gross earnings income million, quarter profit. $X.X net million record increased EPS $X.X and million to with putting

in $X.X had reflects period $XX.X no December $X.X receivable million. $XX.X an in and million As for working an million equity balance a million months the increase XX, accounts December shareholders' million of same of the The total Electromed $XX.X XX, million in XXXX, of of cash, achieving compared in year. the capital and increase in debt, to X prior cash of $XX.X cash XXXX, ended

FY million of vested settlement $X.X operating repurchases by of The share approximately million cash offset net positive in and 'XX by $X.X $X.X million increase share was for driven cash stock. of of flow, in paid taxes

double-digit we While QX and over our XX% about and top revenue year, last expectation delivering our for growth are and per earnings year excited growth expanded leverage. line on improvement remains share focus the full our operating in

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

Operator

first Our from Markets. is O'Neil Capital [Operator Street question with Instructions] Lake Brooks

Brooks O'Neil

results. Congratulations on the terrific

James Cunniff

it. Appreciate Brooks. Thanks,

Brooks O'Neil

Yes.

SmartVest the close curious, I'm a something obviously, So last new of you year. to into you're year marketing improved maybe that

with anybody seen doing? else Any Have any you products try of response? keep kind to their from improve up guys what to you are competitive activity to

James Cunniff

Yes. Actually, obviously, out We've technology. results. quite and hasn't as at the Recently, Brooks, just our for great candidly, actually the year question. of it upgrade as had we their can the results by with traction, really But end great X in demonstrated QX, now business. see our for calendar XXXX, posted gotten we've years market did impacted Hill-Rom best you our SmartVest that

design. to in lifetime important irreversible only benefit condition think, best-in-class it's patient, done only product, the payer portfolio, in in got a portfolio. with benefit really is a have the marketplace refresh they like we're but these a but for manufacturer single for And technology. continue a compliance. product our this we have which hose also only they've nice still which best-in-class warranty who are We don't is patient patients to to where the feel our the garments chronic and to with like the not in a feel their we of So again, reinvest a we've a market product We're comfortable, the

Brooks O'Neil

Yes. That's color. that great. appreciate I

anything read about of I of there's some any And some also, I I'm curious of development just the symptoms guess, that treat developments regard. if And some bronchiectasis. seen we to the of that in last things haven't drugs aware So recently. you're year,

James Cunniff

But discussed as remarks the these by -- that Bronchiectasis is our you're infection, in there's inflammation. patients, for treat the their underlying treat when coming on which The present, really you're patients, patients. drug to Brooks, these done we've really they these are is antibiotics. relative trying that's prepared referencing, Triple out Down campaign, bronchiectasis Well, to even to

so is condition. And chronic a irreversible this

year. they benefit week priority that had review be developed I being -- question, a by a And think, calendar which are targeted bronchiectasis one understand marketed this to in year. is and is this for so of, the these looking approval patients as of August ago, FDA may drug drug drugs What the we do from new patients specifically that for

relative sit commercializing but we going they so we're later be to that where to not we this And that -- it's year. don't know on do anticipate drug,

the And airway really what in be need life. for are get our going try replacement will the that's clearance is and they to need from to remove which part airway we clear to quality vortex. be to patients won't is we vicious out their though, the that to And want and future airways, them in lungs clearance infections, their of to they mucus are market a fuel KOLs still of is and to improve need because it, hearing of their it for these inflammation, is do what that the drug complementary

Brooks O'Neil

range of a your Right. end great. the you revenue Obviously, sort question. per for did above sales last And rep. my little That's top guidance then of bit

Do could those are numbers? Are a get think per think you you better rep you there? could you do on What thinking stay you basis? -- about you

James Cunniff

of than doing within running a job performance, or stories, really is think at to team, maintain managing later. sales nonperformers not and it. year happy or our in But last been improve sales we're have a probably the productive caliber we've to of or been Brooks, hit sooner we're about hiring it. I so, that can't better better reps good whether rather news one I Well, commit the ground the level going who more much

changes on kind a did mentioned in of past we've and calls, I've done to fact, reps. those January. our enhancement just previous some As onboarding this X.X of

volume better from reps sales our reps. so really is well much revenue starting not news, to our having top to our a I as with coming of I tenured And of we're good the the disbursement where our concentrated as disbursement too, team. good see new the where is reps. feel We're our about across our starting just reps coming. It's entire impact that most is And think sales see are

Brooks O'Neil

job front great March, the forward very much. some Great. to investors doing are that in and we We're really rest and you of and of Brad a Well, appreciate in you team. looking getting the out

Operator

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

James Cunniff

thank you call, support pleased for Well, and our Yes. with today's of all Electromed. continued your I'm you for QX thank very joining results.

better continue even always, with in will the second in contact you're again fiscal if beyond. your to ICR for at partners And operating to performance Relations XXXX shareholder strive speak We Thanks we're interested And happy Investor a our half please and for as and time today. follow-up of value call, Healthcare. investors.

the close please Operator, call.

Operator

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

now may disconnect. You

Electromed (ELMD) 11 Feb 252025 Q2 Earnings call transcript