On August 27, 2024, Electromed Inc (ELMD, Financial) released its 8-K filing announcing record financial results for the fourth quarter (Q4 FY 2024) and full fiscal year (FY 2024) ended June 30, 2024. Electromed Inc, a U.S.-based company, develops, manufactures, markets, and sells innovative products for airway clearance therapy, including the SmartVest Airway Clearance System.
Q4 FY 2024 Financial Highlights
Electromed Inc reported net revenues of $14.8 million for Q4 FY 2024, a 9.0% increase from $13.6 million in Q4 FY 2023. This performance was slightly below the analyst estimate of $15.00 million. The company's direct homecare business saw a 6.2% year-over-year increase in revenue to $13.4 million, driven by an increase in direct sales representatives and higher quality referrals.
Gross profit for the quarter rose to $11.3 million, or 76.2% of net revenues, compared to $10.5 million, or 76.8% of net revenues, in the prior year. The slight decrease in gross margin rate was attributed to increased material costs and a less favorable revenue mix across channels.
Operating income for Q4 FY 2024 was $2.3 million, up from $1.5 million in Q4 FY 2023. Net income for the quarter was $1.8 million, or $0.20 per diluted share, surpassing the analyst estimate of $0.14 per share and compared to $1.0 million, or $0.12 per diluted share, in the same period last year.
FY 2024 Financial Highlights
For the full fiscal year, Electromed Inc reported net revenues of $54.7 million, a 13.8% increase from $48.1 million in FY 2023, slightly below the analyst estimate of $54.90 million. The direct homecare market revenue increased by 12.6% to $49.5 million, supported by an expanded direct sales force and improved reimbursement processes.
Gross profit for FY 2024 was $41.7 million, or 76.3% of net revenues, up from $36.5 million, or 76.0% of net revenues, in FY 2023. The increase in gross profit was primarily due to higher revenues and reduced shipping expenses.
Selling, general, and administrative (SG&A) expenses rose by 9.2% to $34.5 million, reflecting higher share-based compensation, salaries, and incentive compensation. Despite these increased expenses, operating income for FY 2024 was $6.6 million, compared to $4.0 million in FY 2023.
Net income for FY 2024 was $5.2 million, or $0.58 per diluted share, exceeding the annual analyst estimate of $0.51 per share and compared to $3.2 million, or $0.36 per diluted share, in FY 2023.
Balance Sheet and Cash Flow
As of June 30, 2024, Electromed Inc reported $16.1 million in cash, $23.3 million in accounts receivable, and no debt, resulting in a working capital of $36.5 million and total shareholders' equity of $44.5 million.
| Metric | June 30, 2024 | June 30, 2023 |
|---|---|---|
| Cash and Cash Equivalents | $16,080,000 | $7,372,000 |
| Accounts Receivable | $23,333,000 | $24,130,000 |
| Total Assets | $52,234,000 | $45,806,000 |
| Total Liabilities | $7,689,000 | $8,139,000 |
| Total Shareholders' Equity | $44,545,000 | $37,667,000 |
Commentary and Analysis
“I’m extremely pleased with the Electromed team’s performance in fiscal 2024, as we continued to drive double-digit top line growth coupled with strong operating leverage,” said Jim Cunniff, President, and Chief Executive Officer. “The end results were impressive, namely delivering record revenues, record operating income, and record earnings for the year, an impressive feat for any company.”
Electromed Inc's strong financial performance in FY 2024 highlights its ability to grow revenue and profitability despite market challenges, such as increased material costs and the expiration of the CMS waiver. The company's strategic investments in its sales force and reimbursement processes have paid off, resulting in higher revenues and improved operational efficiency.
For more detailed financial information, readers are encouraged to review the full 8-K filing.
Explore the complete 8-K earnings release (here) from Electromed Inc for further details.
