InfuSystem Holdings Inc (INFU) Reports 17% Growth in Q3 2023 Net Revenues, Net Income Increases ...
InfuSystem Holdings Inc (INFU) reported a 17% increase in net revenues, reaching $31.9 million in Q3 2023.
The company's net income rose by 56% to $0.7 million, while operating income surged by 80%.
Adjusted EBITDA for the quarter increased by 11% to $6.2 million.
Full year 2023 net revenue growth guidance has been raised to above 11%.
InfuSystem Holdings Inc (INFU), a leading national health care service provider, released its financial results for the third quarter ended September 30, 2023, on November 7, 2023. The company reported record net revenues of $31.9 million, marking a 17% growth from the prior year. Operating income increased by 80%, while net income rose by 56%. Adjusted EBITDA also saw an 11% increase.
Financial Highlights
Net revenues for the third quarter totaled $31.9 million, a 17% increase compared to the prior year. The Patient Services segment reported net revenue of $19.3 million, up by 11% from the previous year, while the Device Solutions segment reported net revenue of $12.6 million, a 27% increase year-over-year.
Gross profit for the quarter was $16.2 million, a slight increase from the prior year, while gross margin was 50.9%, a decrease of 8.5% compared to the previous year. Net income increased by 56% to $0.7 million, or $0.03 per diluted share, compared to the prior year's net income of $0.4 million, or $0.02 per diluted share.
Adjusted EBITDA, a non-GAAP measure, was $6.2 million, an 11% increase from the prior year. The company also raised its full-year 2023 net revenue growth guidance to be greater than 11%, up from the previous estimate of an annual growth rate above 10%.
Management Commentary
Richard DiIorio, Chief Executive Officer of InfuSystem, said, We delivered another quarter of strong operating results with revenue and net income growth of 17% and 56%, respectively. The financial results of our third quarter represent the seventh consecutive quarter with record revenue, which we believe reflect the fundamental strength of our business. Our team continues to deliver sequential operational improvement with double-digit revenue growth for both Patient Services (formerly ITS), up 11%, and Device Solutions (formerly DME Services), up 27%. The positive results reflect our continued focus on execution of our strategic priorities, and I am proud of our teams hard work.
Financial Review
The company's net revenues for the quarter ended September 30, 2023, were $31.9 million, an increase of 17% compared to $27.3 million for the quarter ended September 30, 2022. The increase included higher net revenues for both the Patient Services and Device Solutions segments.
Net income for the third quarter of 2023 was $0.7 million, or $0.03 per diluted share, compared to net income of $0.4 million, or $0.02 per diluted share, for the third quarter of 2022. Adjusted EBITDA, a non-GAAP measure, for the third quarter of 2023 was $6.2 million, or 19.5% of net revenue, and increased by $0.6 million, or 10.9%, compared to Adjusted EBITDA for the same prior year quarter of $5.6 million, or 20.5% of prior period net revenue.
InfuSystem is raising its annual guidance for the full year 2023 with net revenue growth estimated to be above 11%, up from the previous estimate calling for an annual growth rate above 10%. The company is maintaining its guidance for Adjusted EBITDA margin (non-GAAP) to be between 17% and 18% for the year.
Explore the complete 8-K earnings release (here) from InfuSystems Holdings Inc for further details.
This article first appeared on GuruFocus.
