Q2 2024 InfuSystem Holdings Inc Earnings Call

August 8, 2024

Operator: Good day and welcome to the InfuSystem Hldgs, Inc. second quarter 2024 Financial Results Conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then 1 on a touch-tone phone. To withdraw your question, please press star, then 2. Please note, this event is being recorded. I would now like to turn the conference over to Joe Dorame, Managing Partner. Please go ahead.

and many more. Thank you. Thank you.

Operator: Inc. Second Quarter 2024 Financial Results Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions.

Rich: You can see in our second quarter results the growing momentum in our business, with the quarter being the first quarter ever above $33 million, and at $33.7 million, it came in well above that new mark. And as Carrie and I will discuss in a few minutes, our business is strong, and the momentum is building.

Speaker Change: good day and welcome to the infe system holdings in second quarter two thousand and twenty four financial results conference call

Speaker Change: All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions.

To ask a question, you may press star, then 1 on a touch-tone phone. To withdraw your question, please press star, then 2. Please note this event is being recorded.

I would now like to turn the conference over to Joe Dorame, Managing Partner. Please go ahead.

Joe Dorame: Good morning, and thank you for joining us today to review InfuSystem's second quarter 2024 financial results, which ended June 30, 2024. With us today on the call are Rich DiIorio, Chief Executive Officer, Barry Steele, Chief Financial Officer, and Carrie Lachance, President and Chief Operating Officer.

Joe Dorame: Good morning and thank you for joining us today to review InfuSystem's second quarter 2024 financial results ended June 30, 2024. With us today on the call are Rich DiIorio, Chief Executive Officer, Barry Steele, Chief Financial Officer, and Carrie Lachance, President and Chief Operating Officer.

Joe Dorame: After the conclusion of today's prepared remarks, we'll open the call for questions. Before we begin with prepared remarks, I would like to remind everyone that certain statements made by the management team of InfuSystem during this conference call constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Except for the statements of historical fact, this conference call may contain forward-looking statements that involve risks and uncertainty, some of which are detailed in risk factors and documents filed by the company with the Securities and Exchange Commission, including the annual report on Form 10-K for the year ended December 31, 2023.

Speaker Change: After the conclusion of today's prepared remarks, we'll open the call for questions.

Joe Dorame: Forward-looking statements speak only as of the date the statements were made, and the company can give no assurance that such forward-looking statements will prove to be correct. InfuSystem does not undertake and specifically disclaims any obligation to update any forward-looking statement except as required by law. Now, I'd like to turn the call over to Rich DiIorio, Chief Executive Officer of InfuSystem.

Speaker Change: before we begin with preared remarks i would like to remind everyone certain statements made by the management team of inpute system during this conference call constitute forward-looking statements within the meaning of the private security litigation reform act of one thousandninehundred andninety five

Speaker Change: Except for the statements of historical fact, this conference call may contain forward-looking statements that involve risks and uncertainties.

Speaker Change: Some of which are detailed under risk factors and documents filed by the company.

Speaker Change: with the Securities and Exchange Commission, including the annual report on Form 10-K.

Speaker Change: for the year-end of December 31st, 2023.

Speaker Change: Forward-looking statements speak only as of the date the statements were made. The company can give no assurance that such forward-looking statements will prove to be correct. InfuSystem does not undertake and specifically disclaims any obligation to update any forward-looking statement except as required by law.

Speaker Change: Now I'd like to turn the call over to Rich DiIorio, Chief Executive Officer of InfuSystem. Rich?

Rich DiIorio: Thank you, Joe, and good morning, everyone. Welcome to InfuSystem's second quarter 2024 earnings call. Thank you all for joining us today.

Rich DiIorio: I'll get things started this morning with an overview of the recently completed quarter. Barry will go into detail on our second quarter financial results, and then Carrie and I will shift the focus forward, talking about key developments in the business and how the second half is shaping up. You can see in our second quarter results the growing momentum in our business, with the quarter being the first quarter ever above $33 million, and at $33.7 million, it came in well above that new mark.

Barry: you can see on our second quarter results to growing momentum in our business with the quarter being the first quarter ever above thirty-three million dollars in a thirty three point seven million it came in well above that new mark

Barry: Sequentially, revenue was up 5.3% over the first quarter and 6.2% versus Q2 2023.

Barry: As expected, adjusted EBITDA margin improved significantly over the first quarter, coming in at 18 percent.

Barry: And as Carrie and I will discuss in a few minutes, our business is strong and the momentum is building.

Carrie: in addition of the ongoing projects we had at the start of the year we've got some new exciting initiatives in both our device solutions and patient services businesses to discuss

Rich DiIorio: Sequentially, revenue was up 5.3% over the first quarter and 6.2% versus Q2 2023. As expected, Adjusted EBITDA margin improved significantly over the first quarter, coming in at 18%. And, as Carrie and I will discuss in a few minutes, our business is strong, and the momentum is building. In addition to the ongoing projects we had at the start of the year, we've got some new exciting initiatives in both our device solutions and patient services businesses to discuss. But before we get to that, Barry will walk us through the details of the second quarter results.

Barry: But before we get to that, Barry will walk us through the detail on the second quarter results. Barry, over to you.

Carrie: Thank you, Rich, and thank you everyone on the call for joining us today. I'm going to focus on three topics, including the main drivers of the current quarter's results, our current financial position, and how it changed during the quarter. And finally, I'll give you an update on our plan to upgrade our information technology.

Barry Steele: Thank you, Rich, and thank you everyone on the call for joining us today. I'm going to focus on three topics, including the main drivers of the current quarter's results, our current financial position and how it changed during the quarter, and finally, I'll give you an update on our plan to upgrade our information. Now, let me start with our financial results for the period. During the second quarter of 2024, our net revenue totaled $33.7 million.

Barry: Thank you, Rich, and thank you everyone on the call for joining us today.

Barry: I'm going to focus on three topics, including the main drivers of the current quarter's results, our current financial position and how it changed during the quarter, and finally, I'll give you an update on our plan to upgrade our information systems.

Barry: Now let me start with our financial results for the period. The Equipment Rental and Disposal Medical Supplies categories increased in total by over 800,000, or almost 13%, mainly due to a new large customer that we signed up for a three-year agreement. Partially offsetting some of these was a decrease in equipment sales, which was $300,000, lower mainly due to the normal timing cadence for large orders.

Barry: Now let me start with our financial results for the period.

Speaker Change: during the second quarter of two y four our net revenue total thirty three point seven mion

Barry Steele: This was another all-time record and represented 5% sequential growth and an increase of 6% over the prior year. The year-over-year growth rate overcame a difficult comparison that included a surge in negative pressure equipment leases in the prior year.

Carrie: This was another all-time record and represented 5% in sequential growth and an increase of 6% over the prior year.

Carrie: The year-over-year growth rate overcame a difficult comparison that included a surge in negative pressure equipment leases in the prior year. Taking those leases out of both periods, the growth rate was over 10% for the rest of the business, which saw growth in almost every other business line.

Barry Steele: Taking those leases out of both periods, the growth rate was over 10% for the rest of the business, which saw growth in almost every other business line. Our oncology segment revenue increased by $1.5 million, or 9%, due to both higher treatment volumes and strong per-billion cash collection results. Biomedical Services revenue increased by over half a million dollars, or almost 14%, now that the large GE contract has reached full run rate. The Equipment, Rental, and Disposal Medical Supplies categories increased in total by over 800,000, or almost 13 percent, mainly due to a new large customer that we signed up for a three-year agreement.

Carrie: Our oncology segment revenue increased by $1.5 million, or 9%, due to both higher treatment volumes and strong per-billion cash collection results.

Carrie: Biomedical services revenue increased by over half a million dollars, or almost 14%, now that the large GE contract has reached full run rate.

Carrie: The equipment rental and disposal medical supplies categories increased in total by over 800,000, or almost 13%, mainly due to a new large customer that we signed up for a three-year agreement.

Barry Steele: The pain management and newer wound care business each grew by over 300,000, the latter of which grew at a rate of almost 190%. Partially offsetting some of these was a decrease in equipment sales, which was $300,000 lower, mainly due to the normal timing cadence for large orders.

Carrie: The pain management and newer wound care business each grew by over 300,000, the latter of which grew at a rate of almost 190%.

Carrie: Partially offsetting some of these was a decrease in equipment sales, which was $300,000, lower mainly due to the normal timing cadence for large orders.

Barry Steele: As implied in our 2024 full-year guidance, we anticipate continued sequential improvements in nearly every category, with wound care, biomedical services, and pain management leading the way. Gross profit for the second quarter of 2024 was $16.7 million, which was $800,000 or 5% higher than the prior year's second quarter. This amount includes an adjustment made to correct an immaterial error in our travel accrual totaling $600,000.

Carrie: As is implied in our 2024 full-year guidance, we anticipate continued sequential improvements in nearly every category, with wound care, biomedical services, and pain management leading the way.

Speaker Change: gross profit for the second quarter of two twenty four was sixteen point seven million which was eighthundred thousand or five percent higher than the prior year second quarter

Speaker Change: This amount includes an adjustment made to correct an immaterial error in our travel accrual totaling $600,000.

Barry Steele: Taking out this amount, our gross margin percentage, which was 49.5%, would have been 51.1%, representing a small improvement over the prior year's second quarter rate of 49.9%. This improvement was mainly driven by a favorable revenue mix, favoring higher-margin revenues such as oncology and rentals. Selling, general, and administrative expenses for the second quarter of 2024 totaled $14.8 million, representing a slight increase, just over $200,000, as compared to the prior year. However, the amount represented a significant decrease of over $2.5 million from this year's first quarter, when SG&A was $17.3 million.

Carrie: Taking out this amount, our gross margin percentage, which was 49.5%, would have been 51.1%, representing a small improvement over the prior year's second quarter rate of 49.9%. This improvement was mainly driven by a favorable revenue mix, favoring higher-margin revenues such as ecology and rental. Selling, general, and administrative expenses for the second quarter of 2024 totaled $14.8 million, representing a slight increase of just over $200,000 as compared to the prior year, which represented an increase of over $300,000 from the prior year's second quarter.

Carrie: Taking out this amount, our gross margin percentage, which was 49.5%, would have been 51.1%, representing a small improvement over the prior year second quarter rate of 49.9%.

Speaker Change: This improvement was mainly driven by a favorable revenue mix.

Speaker Change: favoring higher margin revenues such as ecology and rentals.

Speaker Change: Selling, general, and administrative expenses for the second quarter of 2024 totaled $14.8 million, representing a slight increase, just over $200,000, as compared to the prior year.

Speaker Change: However, the amount represented a significant decrease of over $2.5 million from this year's first quarter, when SG&A was $17.3 million.

Barry Steele: You will recall that during the first quarter, we had some non-recurring expenses of $1.2M. Adjusted EBITDA during the 2024 second quarter was $6.1 million, or 18% of net revenue, which represented an increase of over $300,000 from the prior year's second quarter. The amount was also much higher than this year's first quarter amount of $3.9 million. I am turning now to make a few points on our financial position and capital reserves. Our operating cash flow for the second quarter totaled $2.3 million.

Carrie: you will recall that during the first quarter we had some nonrecurring expenses was building one point two million

Speaker Change: adjusted ebitda during the two and twenty four second quarter with six point one million or eighteen percent of net revenue which represented an increase of over three hundred thousand from the prior year second quarter the amount was also much higher than this year's first quarter amount of three point nine million

Carrie: The amount was also much higher than this year's first quarter amount of $3.9 million. I am turning now to make a few points on our financial position and capital reserves. The increase during the current period was focused on new equipment needed to support a large new rental customer, increased volume in oncology and pain management, and new negative pressure wound therapy devices related to the wound care business. We continue to be positioned well to fund continued net revenue growth with the growing cash flow from operations backed by significant liquidity reserves available from our revolving line of credit and manageable leverage and debt service requirements.

Speaker Change: Turning now to make a few points on our financial position and capital reserves.

Speaker Change: Our operating cash flow for the second quarter totaled $2.3 million. This amount was slightly below the prior year's second quarter amount, but increased by almost $2 million sequentially from this year's first quarter amount of almost $400,000.

Barry Steele: This amount was slightly below the prior year's second quarter amount but increased by almost $2 million sequentially from this year's first quarter amount of almost $400,000. This increase was due to a slower rate of growth in our working capital levels, which reflected slower sequential revenue increases over the immediately prior quarterly period. As we stated in our last quarterly call and planned for, our net capital expenditures increased to $6.7 million during the 2024 second quarter, which was higher than the $400,000 we spent during this year's first quarter and about $4 million higher than the second quarter of 2023.

Speaker Change: This increase was due to a slower amount of growth in our working capital levels, which reflected slower sequential revenue increases over the immediately prior quarterly periods.

Carrie: as we stated in our last quarterly call and planned four our net capital expenditures increased to six point seven million during the two andtwenty four second quarter which was higher than the four hundred thousand we spent during this year's first quarter in about four million higher than the second quarter of two thousand and twenty- three

Barry Steele: The increase during the current period was focused on new equipment needed to support a large new rental customer, increased volume in oncology and pain management, and new negative pressure wound therapy devices related to wound care.

Speaker Change: The increase during the current period was focused on new equipment needed to support a large new rental customer, increased volume in oncology and pain management, and new negative pressure wound therapy devices related to the wound care business.

Barry Steele: All these investments are expected to continue and contribute to our top and bottom line results in the second half of 2024. We continue to anticipate that our overall capital spending requirements will moderate as compared to amounts in prior years, as the sources of our future revenue growth will continue to be weighted towards less capital-intensive revenue sources, such as biomedical services and from initiatives we have been pursuing to increase pump utilization, including reducing the number of lost pumps.

Carrie: All these investments are expected to continue, contribute to our top and bottom line results in the second half of 2024.

Speaker Change: We continue to anticipate that our overall capital spending requirements will moderate as compared to amounts in prior years.

Speaker Change: As the sources of our future revenue growth will continue to be weighted towards less capital-intensive revenue sources, such as biomedical services, and from initiatives we have been pursuing to increase pump utilization, including reducing the number of lost pumps.

Barry Steele: We continue to be positioned well to fund continued net revenue growth with the growing cash flow from operations backed by significant liquidity reserves available from our revolving line of credit and manageable leverage and debt service requirements. Our net debt increased by just under $4 million to $34 million during the second quarter. However, our available liquidity continued to be strong and totaled $40.3 million at the end of the quarter. The ratio of total debt to adjusted EBITDA was a modest 1.5 times at the end of the course.

Barry: We continue to be well to be positioned well to fund continued net revenue growth with the growing cash flow from operations backed by significant liquidity reserves available from our revolving line of credit and manageable leverage and debt service requirements.

Carrie: Our net debt increased by just under $4 million to $34 million during the 2024 second quarter. Our available liquidity continued to be strong and totaled $40.3 million at the end of the quarter.

Carrie: our ratio of totaldebt to adjusted ebitda was they modest one point five times at the end of the quarter

Barry Steele: Our debt consists of borrowings on our evolving line of credit with no term payment requirements, nearly four years remaining on the term, and with $20 million of the outstanding balance locked in at below market interest rates by an interest rate swap having the same expiration date. Finally, let me update our plan to invest in our information technology and business applications. Our project to upgrade some of our core business applications is in the early stages.

Carrie: Our debt consists of borrowings on our evolving line of credit, with no term payment requirements nearly four years remaining term, and with $20 million of the outstanding balance locked in at below market interest rates by an interest rate swap having the same expiration.

Carrie: Finally, let me update our plan to invest in our information technology and business applications.

Carrie: our project to upgrade some of our core business applications is continuing in the early stages

Barry Steele: As we have previously stated, this includes a full replacement of our main ERP application and other upgrades which will facilitate our continued growth and enhance our operating efficiency. The investment is also prompted by the approaching end of life for support on our current ERP application. The amount spent on the project during the second quarter was very modest. The total expected cost for the project is expected to be between $3 and $4 million and will include software subscription expenses, integration consultant fees, staff augmentation costs, absorption of internal direct staff time where staff augmentation is not deployed, and miscellaneous expenses.

Carrie: As we have previously stated, this includes a full replacement of our main ERP application and other upgrades which will facilitate our continued growth and enhance our operating efficiency. The investment is also prompted by the approaching end of life for support on our current ERP application, and we will not be adding back the expenses incurred to arrive at our reported adjusted EBITDA results. I will now turn the call back over to Rich and Carrie.

Carrie: The investment is also prompted by the approaching end of life for support on our current ERP application.

Speaker Change: The amount spent on the project during the second quarter was very modest.

Speaker Change: The total expected cost for the project is expected to be between $3 and $4 million.

Carrie: and we'll include software subscription expenses.

Speaker Change: integration consultant fees, staff augmentation costs, absorption of internal direct staff time where staff augmentation is not deployed, and miscellaneous expenses.

Barry Steele: The project and related expenses will occur over an 18 to 24 month period, and the amount expected during the remainder of 2024 is less than $1 million. We have determined that we will not capitalize expenses related to this project, and we will not be adding back the expenses incurred to arrive at our reported adjusted EBITDA results. I will now turn the call back over to Rich and Carrie.

Speaker Change: The project and related expenses will occur over an 18-24 month period, and the amount expected during the remainder of 2024 is less than $1 million.

Carrie: We have determined that we will not capitalize expenses related to this project, and we will not be adding back the expenses incurred to arrive at our reported adjusted EBITDA results.

Rich DiIorio: Thanks Barry. Carrie and I will walk through some of the key developments in the business, highlighting some of the areas we are seeing increasing momentum that will drive future growth. Carrie will go first and cover the latest developments in our Device Solutions Business Unit. Carrie? Thank you.

Speaker Change: I will now turn the call back over to Rich and Carrie.

Speaker Change: Thanks, Barry. Carrie and I will walk through some of the key developments in the business, highlighting some of the areas where you're seeing increasing momentum that will drive future growth. Carrie will go first and cover the latest developments in our device solutions business unit. Carrie?

Carrie Lachance: Our device solutions unit includes our legacy direct pay or pump rental business, our equipment and consumable sales business, and our biomedical services business. Biomed has, of course, been one of our major growth initiatives since the signing of the Master Service Agreement with GE in 2022. That was followed by the launch and ramping of our National Network of Biomic Technicians in 2023. We completed the initial GE rollout in the first quarter and now provide service to more than 200,000 devices. With respect to this work, our focus has shifted from the growth phase to the accretion phase as we pursue constant process and efficiency improvements to increase our net margins.

Carrie: Thanks, Rich.

Speaker Change: Our device solutions unit includes our legacy direct payer pump rental business, our equipment and consumable sales business, and our biomedical services business.

Carrie: BioMed has, of course, been one of our major growth initiatives since the signing of the Master Service Agreement with GE in 2022. We expect to pursue some of these opportunities and will likely have news to share on some of these initiatives on future calls. Away from GE, in the second quarter, we started work on a substantial biomedical device remediation project for one of our largest device manufacturer partners. This involves primarily DEPA work that will continue through most of 2025 and add approximately $2 million of incremental revenue during that period.

Carrie: BioMed has, of course, been one of our major growth initiatives since the signing of the Master Service Agreement with GE in 2022.

Carrie: That was followed by the launch and ramping of our national network of biomed technicians in 2023.

Carrie: We completed the initial GE rollout in the first quarter and now provide service to more than 200,000 devices.

Carrie: With respect to this work, our focus has shifted from the growth phase to the accretion phase as we pursue constant process and efficiency improvements to increase our net margins.

Carrie Lachance: We are in near constant dialogue with our partner on additional opportunities where GE can leverage our expertise and skills. We expect to pursue some of these opportunities and will likely have news to share on some of these initiatives on future calls. Away from GE, in the second quarter, we started work on a substantial biomedical device remediation project for one of our largest device manufacturer partners. This involves primarily DEPA work that will continue through most of 2025 and add approximately $2 million of incremental revenue during that period.

Carrie: We are in near constant dialogue with our partner on additional opportunities where GE can leverage our expertise and skills. We expect to pursue some of these opportunities and will likely have news to share on some of these initiatives on future calls.

Carrie: Away from GE, in the second quarter, we started work on a substantial biomedical device remediation project for one of our largest device manufacturer partners.

Carrie: This involves primarily DEPA work that will continue through most of 2025 and add approximately $2 million of incremental revenue during that period.

Carrie Lachance: We are also working to finalize some new biomedical service agreements with other device manufacturers. One or more of these new partnerships should start in the second half of the year and will leverage the national network that the GE relationship allowed us to build. We are seeing strong interest in the marketplace for Infu's ability to offer a single point of contact for regional to national service coverage. Our large geographic footprint, combined with our strong technology integrations for enhanced reporting and coordination, give us an edge that we expect will lead to significant new business and premium pricing.

Carrie: We are also working to finalize some new biomedical service agreements with other device manufacturers. One or more of these new partnerships should start in the second half of the year and will leverage the national network that the GE relationship allowed us to build.

Carrie: We are seeing strong interest in the marketplace for Infu's ability to offer a single point of contact for regional to national service coverage.

Carrie: our large geographic book print, combined with our strong technology integrations for enhanced reporting and coordination. Give us an edge that we expect will lead to significant new business and premium pricing.

Rich DiIorio: Thanks, Carrie. I'll walk you through the important developments in our patient services business unit, which includes oncology, pain management, and wound care. Our original and largest business unit is Oncology, which is having another strong revenue growth year, up approximately 9% in the second quarter versus last year. The strong performance continues to be the result of both increased treatment volume and increased collections efforts from our revenue cycle team. Next is pain management.

Rich: Back to you, Rich.

Speaker Change: Thanks, Carrie. I'll walk through the important developments in our patient services business unit, which includes oncology, pain management, and wound care.

Carrie: Our original and largest business unit is Oncology, which is having another strong revenue growth year, up approximately 9% in the second quarter versus last year. The strong performance continues to be the result of both increased treatment volume and increased collections efforts from our Revenue Cycle team.

Rich DiIorio: Revenue is up more than 29% in the second quarter versus the prior year, and we expect this to accelerate as we continue to onboard new accounts. We believe InfuSystem is in a good position going into 2025 when CMS is planning to publish a new reimbursement code with the No Pains Act. We've consolidated our clear market leadership position for electronic pumps used for post-surgical pain control outside the hospital and stand ready to support physicians who will be increasingly incentivized to provide non-opioid alternatives for post-surgical pain management.

Carrie: Next is pain management. Revenue is up more than 29% in the second quarter versus the prior year and we expect this to accelerate as we continue to onboard recent account wins.

Carrie: We believe InfuSystem is in a good position going into 2025 when CMS is planning to publish a new reimbursement code with the No Pains Act.

Barry: We've consolidated our clear market leadership position for electronic pumps used for post-surgical pain control outside the hospital and stand ready to support physicians that will be increasingly incentivized to provide non-opioid alternatives for post-surgical pain management. Last but definitely not least, is wound care. As Barry reported in his section, there is one area of the business where revenue has decreased significantly due to fewer placements of negative pressure pumps compared to last year when we benefited from facilities replacing their discontinued cardinal devices.

Rich DiIorio: Last but definitely not least is wound care. As Barry reported in his section, this is one area of the business where revenue has decreased significantly due to fewer placements of negative pressure pumps compared to last year when we benefited from facilities replacing their discontinued Cardinal devices.

Barry: Last, but definitely not least, is wound care. As Barry reported in his section, there is one area of the business where revenue has decreased significantly due to fewer placements of negative pressure pumps compared to last year when we benefited from facilities replacing their discontinued cardinal devices.

Rich DiIorio: Although leases are down versus 2023, which was expected, we are seeing that revenue being replaced by our advanced wound care offering related to our joint venture with Sonara. First, we are seeing increasing momentum around our referral and product and supply business for wound care. This has become another area where our platform services approach is creating opportunities, particularly related to our extensive payer contracts and robust revenue cycle capabilities. Second, I am very excited to report progress on a new initiative with Sonara involving distribution of advanced wound care products through our long-established relationships in the oncology market.

Barry: Although leases are down versus 2023, which was expected, we are seeing that revenue being replaced by our advanced wound care offering related to our joint venture with Sonara.

Carrie: First, we are seeing increasing momentum around our referral and product and supply business for wound care. This has become another area where our platform services approach is creating opportunities, particularly related to our extensive payer contracts and robust revenue cycle capabilities. However, InfuSystem has exceptional access to almost all of the cancer centers in America and is therefore an ideal distribution partner for these cancer-related wound care products. Finally, in wound care, I'll highlight the recently announced agreement to provide clinic-to-home support for Smith and Nephew's negative pressure wound therapy business.

Carrie: Second, I am very excited to report progress on a new initiative with Sonara involving distribution of advanced wound care products through our long established relationships in the oncology market.

Rich DiIorio: The first of these products, which we launched last week, is Radioderm. This is a skin care product line popular in Europe that is used by patients undergoing radiation treatment. Sonara has licensed the products for exclusive distribution in the United States, and InfuSystem is providing that distribution as part of our wound care joint venture. It is worth stressing that Radioderm is a product with general application.

Carrie: The first of these products, which we launched last week, is Radioderm. This is a skin care product line popular in Europe that is used by patients undergoing radiation treatments.

Speaker Change: scenario license the products for exclusive distribution the united states and infe system is providing that distribution as part of our wucare joint venture

Rich DiIorio: That is, it is not specific to the types of cancers that have historically been treated by InfuSystem's oncology business. However, InfuSystem has exceptional access to almost all of the cancer centers in America and is therefore an ideal distribution partner for these cancer-related wound care products. Together with Scenera, we are very excited about the potential for this product, which could easily see its market opportunity grow into millions of dollars within a few years. It's my expectation that Radioderma is just the first product of this type that we will be adding that can help patients in cancer centers across the country.

Carrie: It is worth stressing that Radioderm is a product with general application.

Carrie: That is, it is not specific to the types of cancers that have historically been treated by InfuSystem's oncology business. However, InfuSystem has exceptional access into almost all of the cancer centers in America and is therefore an ideal distribution partner for these cancer-related wound care products.

Carrie: Together with Scenera, we are very excited about the potential for this product, which could easily see its market opportunity grow into the millions of dollars within a few years.

Carrie: It's my expectation that radioderma is just the first product of this type that we will be adding that can help patients and cancer centers across the country. I'm looking forward to future similar announcements.

Rich DiIorio: I'm looking forward to future similar announcements. Finally, in wound care, I'll highlight the recently announced agreement to provide clinic-to-home support for Smith and Nephew's negative pressure wound therapy business and will be offering the Renesas EDGE Negative Pressure Wound Therapy System. When Smith & Nephew approached us to assist them as a distribution partner, we were excited to leverage our revenue cycle and service capabilities to give patients increased access to their new Renesas Edge technology at home. We have recently begun executing under the new agreement with Smith & Nephew and have added their negative pressure devices to our device agnostic platform of products. I'd like to emphasize the concept of device agnosticism.

Carrie: Finally, in wound care, I'll highlight the recently announced agreement to provide clinic-to-home support for Smith & Nephew's negative pressure wound therapy business.

Carrie: We'll be offering the Renesas EDGE Negative Pressure Wound Therapy System.

Carrie: When Smith & Nephew approached us to assist them as a distribution partner, we were excited to leverage our revenue cycle and service capabilities to give patients increased access to their new Renesas Edge technology at home.

Carrie: We have recently begun executing under the new agreement with Smith & Nephew and have added their negative pressure devices to our device agnostic platform of products.

Carrie: I'd like to emphasize the concept of being device agnostic. We are positioned in the market as a services company. We're not looking to compete with entrenched device incumbents. In our original oncology business, we have always carried a wide variety of devices, and we're happy to work with physicians and hospitals to supply and build our services around whatever pumps they prefer. In the negative pressure space, we are again working with multiple manufacturers, including Cork, Genadyne, and now Smith & Nephew.

Rich DiIorio: We are positioned in the market as a services company. We're not looking to compete with entrenched device incumbents. In our original oncology business, we have always carried a wide variety of devices, and we're happy to work with physicians and hospitals to supply and build our services around whatever pumps they prefer. In the negative pressure space, we are again working with multiple manufacturers, including Cork, Genadyne, and now Smith & Nephew. We have already begun negotiating under the new Smith & Nephew Agreement.

Carrie: I'd like to emphasize the concept of device agnostic.

Carrie: We are positioned in the market as a services company. We're not looking to compete with entrenched device incumbents. In our original oncology business, we have always carried a wide variety of devices, and we're happy to work with physicians and hospitals to supply and build our services around whatever pumps they prefer.

Carrie: In the negative pressure space, we are again working with multiple manufacturers, including Cork, Genadyne, and now Smith & Nephew.

Rich DiIorio: Our Revenue Cycle Group is busy submitting for third-party payer billing, and we will see contribution from this new partnership in the second half of this year. Before going to Q&A, I would like to comment on our guidance. We reiterate our guidance of high single-digit growth and high teens adjusted EBITDA percentage for the year. As Barry noted, we have studied the issue and decided it is best not to add back our investment in our ERP system.

Carrie: We have already begun executing under the new Smith & Nephew agreement. Our Revenue Cycle Group is busy submitting for third-party payer billing, and we will see contribution from this new partnership in the second half of this year.

Carrie: Before going to Q&A, I would like to comment on our guidance. We reiterate our guidance of high single-digit growth and high teens adjusted EBITDA percentage for the year. While the first half delivered results below our year-end targets, we have been performing right on track with our internal models. Momentum is building in the business, both with respect to the work we were pursuing at the beginning of the year and the new opportunities we have added since, including the biomedical pump remediation, the Smith & Nephew opportunity, additional growth in pain, and continued strength in our core rental and oncology businesses. Operator, we are now ready for the Q&A portion of the call.

Carrie: before going to q and a i would like to comment on our guidance

Speaker Change: We reiterate our guidance of high single-digit growth and high teens adjusted EBITDA percentage for the year. As Barry noted, we have studied the issue and decided it is best to not add back our investment in our ERP system.

Rich DiIorio: But we are still able to reiterate our guidance for high teens adjusted through the percentage for this year. While the first half delivered results below our year-end targets, we have been performing right on track with our internal models. Momentum is building in the business, both with respect to the work we were pursuing at the beginning of the year and the new opportunities we have added since, including the biomedical pump remediation, the Smith and Nephew opportunity, additional growth in pain, and continued strength in our core rental and oncology businesses.

Carrie: But we are still able to reiterate our guidance for high teams adjusted through the percentage for this year.

Carrie: While the first half delivered results below our year-end targets, we have been performing right on track with our internal models.

Carrie: Momentum is building in the business, both with respect to the work we were pursuing at the beginning of the year and the new opportunities we have added since, including the biomedical pumper mediation, the Smith & Nephew opportunity, additional growth in pain, and continued strength in our core rental and oncology businesses.

Rich DiIorio: We are confident that our second half will reflect this growing momentum. We expect the third and fourth quarters to come in above the full year targets, bringing us in line with the annual guidance. Operator, we are now ready for the Q&A portion of the call.

Carrie: We are confident that our second half will reflect this growing momentum. We expect the third and fourth quarters to come in above the full year targets, bringing us in line with the annual guidance.

Carrie: Operator, we are now ready with the Q&A portion of the call.

Operator: We will now begin the question and answer session. To ask a question, you may press star, then 1 on a touch-tone phone.

Operator: We will now begin the question and answer session. To ask a question, you may press star, then 1 on a touch-tone phone. If your question has been answered and you would like to withdraw your question, please press star, then 2. Our first question comes from Brooks O'Neill with Lake Street Capital Markets. Please go ahead.

Operator: We will now begin the question and answer session. To ask a question, you may press star then 1 on a touch-tone phone.

Speaker Change: If your question has been addressed and you would like to withdraw your question, please press star, then 2. Our first question comes from Brooks O'Neill with Lake Street Capital Markets. Please go ahead.

Brooks O'Neill: Thank you very much. Good morning, everybody.

Unnamed Participant: Thank you very much. Good morning, everybody.

Speaker Change: Thank you very much. Good morning, everybody. I appreciate all the commentary, and I applaud the decision to not back the ERP investment. I think that makes a lot of sense.

Brooks O'Neill: I appreciate all the commentary, and I applaud the decision not to add back the ERP investment. I think that makes a lot of sense. So I have a couple questions. First, I'm curious. Obviously, you highlighted the significant leasing activity in negative pressure wound therapy devices last year. And now you have a new agreement with Smith and Nephew. Can you just comment on whether those leases you put out last year are still functional? or whether you expect, you know, some replacement with the Smith and Effie devices or not... How are you thinking about negative pressure as a component of your wound treatment business going forward?

Speaker Change: So, I have a couple questions. First, I'm curious. Obviously, you highlighted the significant leasing activity in negative pressure wound therapy devices last year.

Unnamed Participant: And now you have a new agreement with Smith and Nephew.

Unnamed Participant: I appreciate all the commentary, and I applaud the decision not to back the ERP investment. I think that makes a lot of sense. Can you just comment about whether those leases you put out last year are still functional in place? Or whether you expect, you know, some replacement with the Smith and Effie devices or...

Unnamed Participant: Can you just comment about whether those leases you put out last year are still functional in place?

Speaker Change: or whether you expect, you know, some replacement with the Smith and Effie devices? Or how are you thinking about negative pressure as a component of your wound treatment business going forward?

Rich DiIorio: Yeah, good morning, Brooks. Great question. So, I look at it as two different pieces. So, the leases last year were, I think, almost all the Cork medical devices. Those will stay in use until their useful life is over, which will be years. The Smith and Nephew Agreement is separate from that, as opposed to just a lease.

Speaker Change: Yeah, good morning, Brooks. Great question.

Speaker Change: I look at it as two different pieces. So the leases last year were, I think, almost all the Cork medical devices.

Speaker Change: Those will stay in use until their useful life is over, which will be years. The Smith and Nephew Agreement is separate from that, as opposed to just a lease. It's more of our referral business, our third-party payer business.

Rich DiIorio: It's more of our referral business, our third-party payer business. So, those who go home with a patient will bill monthly for every month that they're on the device. When they're done, we get the device back. We put it on the next patient. So, it's two separate pieces of the negative pressure.

Speaker Change: so those are go home with a patient

Speaker Change: We'll bill, you know, monthly for every month that they're on the device. When they're done, we get the device back, we put it on the next patient. So it's two separate pieces of the negative pressure. So we certainly have the leases out there that'll stay, and hopefully we continue to add more leases. And then we have the referral business, which is where Smith & Nephew comes in.

Rich DiIorio: So, we certainly have the leases out there that'll stay, and hopefully, we will continue to add more leases. And then we have the referral business, which is where Smith and Nephew comes in. So, most of our leases are Cork today. It doesn't mean someone won't lease a Smith and Nephew device, but right now, it's really about the referrals with that agreement.

Speaker Change: So, most of our leases are Cork today. It doesn't mean someone won't lease a Smith & Nephew device, but right now it's really about the referrals with that agreement.

Brooks O'Neill: Okay, cool. Let me just shift to the biomedical business. I think you alluded to the opportunity with a number of new customers. I'm excited about that. I don't know if you can provide any additional color. And can you just reinforce the idea that the GM business and relationship remain strong, and there's probably, hopefully, some opportunity there as well?

Speaker Change: Okay, cool.

Speaker Change: Let me just shift to the biomedical business. I think you alluded to the opportunity with a number of new customers. I'm excited about that. I don't know if you...

Speaker Change: can provide any additional color and can you just reinforce the idea that the GM business and relationship remains strong and there's probably hopefully some opportunity there as well.

Rich: Yeah, I think by our next earnings call in the fall, we'll have a couple things. Hopefully, we'll have a new GE component to that agreement. They have approached us about some other types of devices and other programs that they could use help with.

Rich: Yeah, I think by our next earnings call in the fall, we'll have a couple things. Hopefully, we'll have a new GE component to that agreement. They have approached us about some other

Rich: Types of devices and other programs that they could use help with. We're reviewing some of those.

Rich: We're reviewing some of those, and we'll be able to talk about those in a couple months. There are definitely some new partnerships outside of GE. A couple of them were close to signing the agreements, but they're just not here yet. They're not, you know; there isn't ink on paper.

Rich: We'll be able to talk about those in a couple months. There are definitely some new partnerships outside of GE. A couple of them we're close to signing the agreements. They're just not here yet. There isn't ink on paper. But as soon as we get those, we'll let everybody know about it.

Rich: But as soon as we get those, we'll let everybody know about it. But, you know, the GE relationship is fine. They continue to look for other things where we can help them. And then, as we've discussed for about a year and a half, now that the kind of initial MSA and statement of work are kind of up and running with a couple hundred thousand devices, we can start looking at other opportunities outside of GE.

Rich: You know, the GE relationship is fine. They continue to look for other things where we can help them.

Rich: And then as we've discussed for about a year and a half, now that the kind of initial...

Rich: MSA and Statement of Work is kind of up and running with a couple hundred thousand devices. Now we can start looking at other opportunities outside of GE, and there's no shortage of those. It just depends on which ones we want to take on and when and to what order of magnitude, including the pump remediation that...

Rich: Carrie mentioned earlier, you know, that'll be a couple million dollars over the next year and a half or so. Those are the types of things we wouldn't have wanted to do a year and a half ago, but now we have the capacity to go do those. So there is no shortage of biomed opportunities in GE and outside of GE.

Rich: And there's no shortage of those. It just depends on which ones we want to take on and when and to what order of magnitude, including the pump remediation that Kerry mentioned earlier. You know, that'll be a couple million dollars over the next year and a half or so. Those are the types of things we wouldn't have wanted to do a year and a half ago, but now we have the capacity to do them. So, there is no shortage of biomedical opportunities at GE and outside of GE.

Brooks O'Neill: Let me ask one more question. A couple months ago, I had an opportunity to meet with the Sonara Medical team down in Dallas. I was very impressed with those people, and I think they're as excited as you guys are about the partnership, so that's great. Can you just comment on how it sounds like that's going well? Do you still expect the really big liftoff for that business and that joint venture in 2025? Or how are you thinking about it today?

Speaker Change: Let me ask one more question. A couple months ago I had an opportunity to meet with the Sonara Medical team down in Dallas. I was very impressed with those people and and I think they're as excited as you guys are about the partnership so that's great.

Unnamed Participant: Can you just comment on, sounds like that's going well. Do you still expect the big liftoff for that business and that joint venture in 2025? Or how are you thinking about it today?

Speaker Change: Can you just comment on, sounds like that's going well. Do you still expect really the big liftoff for that business and that that joint venture in 2025 or how are you thinking about it today?

Rich DiIorio: Yeah, I agree. They've been awesome to work with. They've been a great partner. I think that relationship is going to show up in three ways.

Speaker Change: Yeah, I agree. They've been awesome to work with. They've been a great partner.

Rich DiIorio: So certainly, what we're already doing today with the advanced wound care products, so their BioCo's high call products and other products that we can put into wound care. You know, they talk a lot about the value-based care model that they're working on. That's probably, you know, a couple of years out before any real revenue shows up, but it could be a huge number someday. And then the third piece is what I spoke about earlier in the Radioderm product. They have other products outside of what we think of as wound care. And in this case, it's a product that helps protect the skin and soothe the skin during radiation treatment.

Speaker Change: I think that relationship is going to show up in three ways. So certainly what we're already doing today with the advanced wound care products, so their BioCo's high call products and other products that we can put into wound care.

Speaker Change: You know, they talk a lot about the value-based care model that they're working on. That's probably, you know, a couple years out before any real revenue shows up.

Speaker Change: but could be a huge number someday.

Speaker Change: And then the third piece is what I spoke about earlier in the Radioderm product. They have other products outside of kind of what we think of as wound care. And in this case, it's a product that helps protect the skin and soothe the skin during radiation treatment.

Rich DiIorio: They have some other products like that in their pipeline. So I think between those types of products in oncology, value-based care over time, and then the current advanced wound care products that we already have in the market, we'll see pieces of those come in at certain times, right? So we'll see some revenue this year from those products for sure. Next year they should take off. And then value-based pricing probably comes in after that just because it's a much bigger paradigm shift in the market.

Speaker Change: They have some other products like that in their pipeline. So I think between those types of products and oncology

Speaker Change: the value-based care over time, and then the current advanced wound care products that we already have in the market.

Speaker Change: We'll see pieces of those come in at certain times, right? So we'll see some revenue this year from those products for sure.

Speaker Change: Next year they should take off, and then ValueBase probably comes in after that, just because it's a much bigger paradigm shift in the market. But those three pieces are all part of the partnership, which has been – they've been great to work with. Absolutely no complaints. They've been a great partner.

Rich DiIorio: But those three pieces are all part of the partnership, which has been great to work with. Absolutely no complaints. They've been a great partners.

Unnamed Participant: Great. Thanks for taking my questions and congratulations. Keep up all the hard work.

Brooks O'Neill: Great. Thanks for taking my questions and congratulations. Keep up all the hard work.

Unnamed Participant: Great. Thanks for taking my questions and congratulations. Keep up all the hard work. Thanks Brooks.

Operator: And the next question comes from Matt Hewitt with Craig Hallam Capital Group. Please go ahead.

Unnamed Participant: And the next question comes from Matt Hewitt with Craig Hallam Capital Group. Please go ahead.

Unnamed Participant: Good morning, and thank you for taking the questions. Maybe first up, regarding the No Pain Act, could you walk us through a little bit on what your expectations are once that goes live? I believe it's January 1st.

Matt Hewitt: Good morning, and thank you for taking the questions. Maybe the first question would be regarding the No Pain Act. Could you walk us through a little bit on what your expectations are once that goes live? I believe it's January 1st.

Speaker Change: Good morning and thank you for taking the questions. Maybe first up regarding the No Pain Act, could you walk us through a little bit on what your expectations are once that goes live? I believe it's January 1st. Will that be a driver to your revenues? Is there a gross margin impact? Just kind of walk us through your expectations once that goes live.

Rich DiIorio: Will that be a driver for your revenues? Is there a gross margin impact? Just kind of walk us through your expectations once that goes live.

Rich DiIorio: Yeah, good morning, Matt. Yes, it will be a revenue driver is the expectation. So, you know, one of the challenges with non-opioid alternatives, and really any of them, not just InfuSystem's offering, is that it takes a little bit of work to deliver the device and send it out with the patient, as opposed to just writing a prescription for, you know, OxyContin or something. So that time and energy, we expect to have decent reimbursement for the physician.

Speaker Change: Yeah, good morning, Matt. Yes, it will be a revenue driver is the expectation, so...

Speaker Change: You know, one of the challenges with non-opioid alternatives, and really any of them, not just InfuSystem's offering...

Speaker Change: is that it takes a little bit of work to deliver the device and send it out with the patient, as opposed to just writing a prescription for, you know, OxyContin or something.

Speaker Change: So that time and energy, we expect to have decent reimbursement for the physician. So it's not reimbursement for InfuSystem or any of the device manufacturers or providers. It's really for the doctors and the clinics and hospitals. So they'll get paid for their time and energy to do something different than write that script.

Rich DiIorio: So it's not reimbursement for InfuSystem or any of the device manufacturers or providers. It's really for the doctors and the clinics and hospitals. So they'll get paid for their time and energy to do something different than write that script.

Rich DiIorio: You know, we believe, and I think everyone in the market believes, and even most physicians believe that a non-opioid alternative is the way to go. Now that there's reimbursement, that should push that paradigm shift for physicians. So what that should mean for us is more customers, you know, right now the numbers are pretty low as far as the patients that you could put out on a device to treat their pain as far as how many actually go out with it. We think that number will grow, and we'll all gain market share, everybody in the market. So, which will bring in just, you know, more customers, more market share, and more revenue for InfuSystem.

Matt Hewitt: Got it. And then maybe a separate question here regarding the share repurchase authorization that you announced back in May. Were there any shares repurchased during the quarter? How should we be thinking about that? Thank you.

Speaker Change: We believe, and I think everyone in the market believes, and even most physicians believe, that a non-opioid alternative is the way to go.

Speaker Change: Now that there's reimbursement, that should push that paradigm shift for physicians.

Speaker Change: So what that should mean for us is more customers, you know, right now the numbers are pretty low as far as the patients that you could put out on a device to treat their pain, as far as how many actually go out with it.

Speaker Change: We think that number will grow and we'll all gain market share, everybody in the market. So, which will just, you know, more customers, more market share, and more revenue for InfuSystem.

Speaker Change: Got it. And then maybe a separate question here regarding the share repurchase authorization that you announced back in May. Were there any shares repurchased during the quarter? How should we be thinking about that? Thank you.

Barry Steele: We did buy back some shares. Oh, go ahead, Barry. You can take them. Yeah, we lost a small amount of money on those back. It was $47,000. A little over $200,000.

Unnamed Participant: We did buy back some shares. Oh, go ahead, Barry. You can take it. Yeah, we lost a small amount of shares back. It was $47,000.

Speaker Change: A little over $200,000 that we spent on that.

Matt Hewitt: Got it. Thank you very much.

Speaker Change: Got it. Thank you very much.

Operator: Again, if you have a question, please press star then 1. Our next question comes from Jim Sidoti with Sidoti and Company. Please go ahead.

Speaker Change: Thanks, Matt. Again, if you have a question, please press star, then 1. Our next question comes from Jim Sidoti with Sidoti & Company. Please go ahead.

Jim Sidoti: Hi, good morning. Thanks for taking the questions. So I just want to be clear on the negative pressure business. The cork pumps or the cork devices are primarily used in long-term care facilities, whereas the new Smith & Nessie devices will be used in the home.

Speaker Change: Hi, good morning, thanks for taking the questions. So, I just want to be clear on the...

Speaker Change: The negative pressure business, the cork pumps or the cork devices, those are primarily in long-term care facilities, whereas the new Smith & Nessie devices, those will be used in the home. Is that the right way to think about it?

Jim Sidoti: Is that the right way to think about it?

Rich DiIorio: So I would think about it, Jim. The court devices, the genodine devices, and Smith and Neff, you can all go into the patient's home as a referral device. So, the doctor says, you know, John Smith has to go home with his negative pressure and get treated at home. We can fill that order with any three of those devices, depending on what the doctor wants.

Speaker Change: So, I would think about, there's a couple of ways to look at it, Jim.

Speaker Change: The Cork devices, the Genadyne devices, Ann Smith and Nephew can all go into the patient's home as a referral device. So the doctor says, you know, John Smith has to go home for his negative pressure and get treated at home. We can fill that order with any three of those devices depending on what the doctor wants.

Rich DiIorio: As far as what has historically happened with Cork, those are leases that still end up in the patient's home, or they could end up in a long-term care facility, skilled nursing facility, that sort of thing. So whether they actually go home or not, if we can bill for the third-party payer referral, we want to be device agnostic. We want the clinic to be able to decide which device they want, right, which bells and whistles they like, ease of use, what they're comfortable with, those sorts of things.

Speaker Change: As far as what has historically happened with Cork, those are leases.

Speaker Change: that still end up in the patient's home, or they could end up at a long-term care facility, skilled nursing facility, that sort of thing. So, whether they actually go home or not, if we can bill for the third-party payer referral, we want to be device agnostic. We want the clinic to be able to decide which device they want, right, which bells and whistles they like, ease of use.

Rich DiIorio: So now we have just added another option with Smith & Nephew. They came to us because they had some patients that they knew had to be treated, and they didn't have a partner that had the payer contracts to be able to treat that patient and get reimbursed for it. And obviously, with our 800-plus contracts, we can fill that void for them pretty quick, and that's why we're already billing for patients as of, I think, July.

Speaker Change: What they're comfortable with, those sorts of things. So now we just added another option with Smith & Nephew.

Speaker Change: They came to us because they had some patients that they knew had to be treated.

Speaker Change: and they didn't have a partner that had the payer contracts to be able to treat that patient and get reimbursed for it. And obviously with our 800 plus contracts, we can fill that void for them pretty quick. And that's why we're already billing for patients as of, I think, July .

Unnamed Participant: Will that be a driver for your revenues? Is there a gross margin impact? Just kind of walk us through your expectations once that goes live.

Jim Sidoti: All right, and then on... In terms of purchasing medical equipment, that shot up in the quarter, up over $7 million. What was that for, and how do you expect that to trend going forward?

Speaker Change: right n n

Unnamed Participant: All right, and then on... In terms of purchasing medical equipment, that shot up in the quarter, up over $7 million. What was that for, and how do you expect that to trend going forward?

Speaker Change: In terms of purchasing medical equipment, that shot up in the quarter, up over $7 million. What was that for, and how do you expect that to trend going forward?

Rich: So I think it'll come back, well, just real quick. I think that will come back down to a more reasonable level. I think the first quarter was artificially low, just a timing thing. In the second quarter, we had one big customer on the rental side of the business that we needed to go get devices for. That drove a lot of it. The growth in pain, and then some growth in negative pressure and oncology.

Rich DiIorio: So I think it'll come back, just real quick. I think that will come back down to a more reasonable level. I think the first quarter was artificially low, just a timing thing. The second quarter, we had one big customer on the rental side of the business that we needed to go get devices for. That drove a lot of it. The growth in pain and then some growth in negative pressure and oncology.

Rich: So I think it'll come back well just real quick I think that will come back down to a more reasonable level. I think the first quarter was artificially low just a timing thing

Rich: The second quarter we had one big customer on the rental side of the business that we needed to go get devices for. That drove a lot of it.

Rich: the growth in pain, and then some growth in negative pressure, and an oncology. So it was kind of an abnormal quarter, but it's smoothed out, Q1 a little bit. We don't expect it to continue at that rate for sure, but the good news is when we spend that money there's revenue to follow, and historically that's been the case.

Rich: So it was kind of an abnormal quarter, but it's smoothed out Q1 a little bit. We don't expect it to continue at that rate for sure. But the good news is that when we spend that money, there's revenue to follow. And historically, that's been the case.

Jim Sidoti: So it was kind of an abnormal quarter, but it smoothed out Q1 a little bit. We don't expect it to continue at that rate for sure. But the good news is that when we spend that money, there's revenue to follow. And historically, that's been the case.

Rich DiIorio: Yeah, I think by our next earnings call in the fall, we'll have a couple things. Hopefully, we'll have a new GE component to that agreement. They have approached us about some other types of devices and other programs that they could use help with.

Rich DiIorio: Okay, and so that was spread over your three different businesses, the oncology, the pain, and the negative pressure. Yeah, I would even add our rental.

Speaker Change: Okay and so that was spread over your three different businesses, the oncology, the pain, and the negative pressure.

Rich DiIorio: Yeah, I would even add our rental business on the device solution side. They signed up a huge rental customer. I think almost a couple million of that was just one customer.

Speaker Change: Yeah, I would even add our rental business on the device solution side. They signed up a huge rental customer. I think almost a couple million of that was just one customer.

Operator: This concludes our question and answer session. I would like to turn the conference back over to Rich DiIorio for any closing remarks.

Operator: This concludes our question and answer session. I would like to turn the conference back over to Rich DiIorio for any closing remarks. Thank you, and I want to thank everyone for participating on today's call.

Rich DiIorio: Okay. All right. Thank you.

Operator: This concludes our question and answer session. I would like to turn the conference back over to Richard DiIorio for any closing remarks.

Rich DiIorio: Thank you, and I want to thank everyone for participating in today's call, and we look forward to our third quarter call when we will update you on our results and progress. Have a great day.

Rich DiIorio: Thank you and I want to thank everyone for participating on today's call and we look forward to our third quarter call when we will update on our results and progress. Have a great day.

Operator: The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

Rich DiIorio: We're reviewing some of those, and we'll be able to talk about those in a couple months. There are definitely some new partnerships outside of GE. A couple of them were close to setting agreements. They're just not here yet. They're not, you know, there's ink on paper.

Rich DiIorio: But, you know, the GE relationship is fine. They continue to look for other things where we can help them. And then, as we've discussed for about a year and a half, now that the kind of initial MSA and statement of work are kind of up and running with a couple hundred thousand devices. Now we can start looking at other opportunities outside of GE.

Rich DiIorio: And there's no shortage of those. It just depends on which ones we want to take on and when and to what order of magnitude, including the pump remediation that Carrie mentioned earlier. You know, that'll be a couple million dollars. So the next year and a half or so, those are the types of things we wouldn't have wanted to do a year and a half ago, but now we have the capacity to do those. So there is no shortage of violent opportunities in GE and outside of GE.

Q2 2024 InfuSystem Holdings Inc Earnings Call

Request a DemoDemo

INFU

InfuSystem

Earnings