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Electromed(ELMD) - 2025 Q2 - Quarterly Results
ELMDElectromed(ELMD)2025-02-11 21:05

Financial Performance - Net revenues increased by 18.7% to a record 16.3millioninQ2FY2025,comparedto16.3 million in Q2 FY 2025, compared to 13.7 million in Q2 FY 2024[4] - Operating income reached a record 2.5million,representing15.62.5 million, representing 15.6% of net revenues, with a year-over-year increase of 12.3%[7] - Net income was 2.0 million, or 0.22perdilutedshare,comparedto0.22 per diluted share, compared to 1.7 million, or 0.19perdilutedshareinQ2FY2024[9]−Grossprofitincreasedto0.19 per diluted share in Q2 FY 2024[9] - Gross profit increased to 12.6 million, or 77.7% of net revenues, up from 10.5million,or77.010.5 million, or 77.0% of net revenues[6] - Revenue in the direct homecare business grew by 15.2% to 14.6 million, driven by increased referrals and approvals[5] Expenses and Investments - Selling, general and administrative expenses rose by 20.3% to 9.8million,primarilyduetoincreasedsalariesandshare−basedcompensation[8]−ThecompanyinitiatedaninvestmentinanewCRMsystemtoenhancetheproductivityofitscommercialteam[3]−Share−basedcompensationexpenseincreasedsignificantlyto9.8 million, primarily due to increased salaries and share-based compensation[8] - The company initiated an investment in a new CRM system to enhance the productivity of its commercial team[3] - Share-based compensation expense increased significantly to 1,652,000 from 791,000,markingariseof108.5791,000, marking a rise of 108.5%[21] - Expenditures for property and equipment were 270,000, up from 180,000,indicatingongoinginvestmentinoperationalcapacity[21]−Thenetcashusedforinvestingactivitieswas180,000, indicating ongoing investment in operational capacity[21] - The net cash used for investing activities was 295,000, compared to 220,000intheprioryear,showinganincreaseininvestmentoutflows[21]CashFlowandLiquidity−CashbalanceasofDecember31,2024,was220,000 in the prior year, showing an increase in investment outflows[21] Cash Flow and Liquidity - Cash balance as of December 31, 2024, was 16.2 million, reflecting a 0.2millionincreasecomparedtotheprevioussixmonths[10]−Netcashprovidedbyoperatingactivitiesincreasedto0.2 million increase compared to the previous six months[10] - Net cash provided by operating activities increased to 5,460,000 from 3,227,000,reflectingagrowthof69.23,227,000, reflecting a growth of 69.2% year-over-year[21] - Cash and cash equivalents at the end of the period rose to 16,235,000, up from 10,434,000,indicatingayear−over−yearincreaseof55.010,434,000, indicating a year-over-year increase of 55.0%[21] - The beginning cash balance was 16,080,000, which demonstrates a solid liquidity position for the company[21] Shareholder Equity and Stock Activity - Electromed's total shareholders' equity was 43.6millionasofDecember31,2024[10]−Thecompanyrepurchasedcommonstockamountingto43.6 million as of December 31, 2024[10] - The company repurchased common stock amounting to 4,536,000 during the period, indicating a strong commitment to returning value to shareholders[21] - The company issued common stock upon exercise of options totaling 346,000,comparedto346,000, compared to 55,000 in the previous year, reflecting increased employee stock option activity[21] Inventory and Receivables Management - Accounts receivable decreased by 558,000,whileinventoriesincreasedby558,000, while inventories increased by 500,000, suggesting changes in sales and inventory management strategies[21] Workforce - The company ended the quarter with 60 field sales force employees, including 54 direct sales representatives[5]