InfuSystem Holdings Provides Business Update and Comments on First Quarter 2008 Financial Results
Mr. Steve Watkins, chief executive officer, commented, "We are pleasedwith the results of our first full quarter of operations as a stand-alonepublic company, and have already begun to benefit from some of our earlyinitiatives, as evidenced by an approximate 8 percent increase in revenues forthe quarter, compared to results of InfuSystem, Inc. for the first quarter oflast year, while under its prior ownership. Among of our first stepsfollowing the acquisition were adding key personnel; setting new quotas,incentive plans and training for the sales force; and beginning a rebrandingand redesign of our marketing materials. We also continue to explorepotential acquisition candidates that would complement our existing productsand services, and benefit from our strong distribution across the U.S., whichincludes approximately 60% penetration of oncologist practices, and contractswith managed care organizations covering over 125 million managed care lives."
"With those first steps in place we look forward to the next phase of ourstrategy which includes building the awareness of InfuSystem by educating thepayors, physicians, and patients, all of whom stand to benefit from ourambulatory infusion pumps and associated clinical services. Specifically,ambulatory infusion of chemotherapy is advantageous to payors, includingmanaged care organizations, because it is generally less expensive thanhomecare or hospitalization and may help lower the costs incurred to treat theside-effects that may accompany traditional bolus treatment. Ambulatoryinfusion also benefits the patients through improved efficacy of the drugs aswell as greater patient comfort compared to traditional bolus treatment."
"Protocols involving continuous infusion therapy are widely recognized asthe standard of care for treatment of advanced or metastatic colorectal cancer(CRC). One of the primary focuses of our sales force is educating oncologistsand nurses about the benefits of treating patients with CRC in the adjuvantsetting, as well as treating patients with other cancers where continuousinfusion protocols have been approved. In addition to the economic advantagesto patients and payors, ambulatory infusion provides patients greater freedomand mobility than continuous infusion delivered in an in-patient setting. Inthe outpatient setting, there are over 1,500 facilities across the UnitedStates already using our services. We believe that expansion of continuousinfusion chemotherapy regimens into additional tumor types will result in theopportunity to extend our services into additional markets at low-cost."
"In addition to resuming our organic growth, we also generated very strongcash flow and now have over $6 million of cash and cash equivalents as ofMarch 31, 2008. We achieved approximately $2 million of Adjusted EBITDA forthe quarter, which excludes a $5.2 million gain on derivative financialinstruments. We also incurred unusually high auditing, legal and otherexpenses related to the filing of our first post-acquisition 10-K. We expectthese expenses to normalize heading into the second quarter, resulting inimproved operating results going forward. At the same time, we expect ourmargins to improve as we drive top-line growth and leverage our existinginfrastructure."
Revenue for the first quarter ended March 31, 2008 was $8.5 million,versus $0 for the same period in 2007, which reflects the revenues recognizedby InfuSystem Holdings, Inc. following the acquisition of InfuSystem, Inc.from I-Flow Corporation.
Operating income for the first quarter of 2008 was $521,000 versus an
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