Tue, May 13, 8:15 PM (30 days ago)
Electromed, Inc. (ELMD) reported a strong financial performance for the quarter and nine months ended March 31, 2025. Key highlights include: **Revenue and Profit Margins:** - **Revenue:** Net revenues increased by 13.1% to $15.7 million for the quarter and by 16.9% to $46.6 million for the nine months ended March 31, 2025, compared to the same periods in the prior year. - **Gross Profit:** Gross profit margins improved to 78.0% for both the quarter and nine months ended March 31, 2025, up from 74.8% and 76.3% in the prior year periods, respectively. - **Operating Income:** Operating income increased by 16.2% to $2.1 million for the quarter and by 55.9% to $6.6 million for the nine months ended March 31, 2025. - **Net Income:** Net income rose by 26.7% to $1.9 million for the quarter and by 59.9% to $5.3 million for the nine months ended March 31, 2025. **Cash Flow:** - **Operating Activities:** Net cash provided by operating activities was $7.5 million for the nine months ended March 31, 2025, up from $4.6 million in the prior year period. - **Investing Activities:** Cash used for investing activities was $149,000 for the nine months ended March 31, 2025, primarily for property and equipment expenditures. - **Financing Activities:** Cash used for financing activities was $8.2 million, mainly due to share repurchases and taxes paid on net share settlement of stock awards. **Liquidity and Capital Resources:** - **Cash Position:** Electromed ended the quarter with $15.2 million in cash and cash equivalents. - **Credit Facility:** The company has a revolving line of credit with a maximum borrowing capacity of $2.5 million, which was fully available as of March 31, 2025. **Future Operations and Uncertainties:** - **Growth Drivers:** The company's growth is driven by increased referrals, approvals, and higher net revenues per approval, supported by an expanded sales force and reimbursement efficiencies. - **Risks:** Electromed faces risks related to reimbursement, regulatory compliance, competition, and economic conditions. The company is also subject to financial and non-financial covenants under its credit facility. **Share Repurchase Program:** - **Authorization:** Electromed has a new share repurchase authorization of up to $5 million, with no expiration date. As of March 31, 2025, approximately $3.6 million remained available for repurchase. **Conclusion:** Electromed, Inc. demonstrated robust financial health and growth in the quarter and nine months ended March 31, 2025. The company's strong revenue growth, improved profit margins, and solid cash flow position it well for future operations. However, Electromed must navigate potential risks and uncertainties to sustain its growth trajectory.