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Electromed, Inc. (NASDAQ: ELMD) today announced financial results for the three months and fiscal year ended June 30, 2011. Net revenues for the three months ended June 30, 2011 were approximately $4,954,000, a 36.7% increase compared to net revenues of approximately $3,624,000 for the same period last year. Net revenues for the fiscal year ended June 30, 2011 were approximately $19,004,000, a 32.9% increase compared to net revenues of approximately $14,304,000 for the same period last year.
The Company also announced net income of approximately $165,000, or $0.02 per basic and diluted share, for the three months ended June 30, 2011, compared to net income of approximately $71,000, or $0.01 per basic and diluted share, for the same three-month period last year. For the fiscal year ended June 30, 2011, net income was $1,056,000, or $0.14 per basic and $0.13 per diluted share, compared to net income of approximately $916,000, or $0.15 per basic and diluted share, for the same period last year. Net revenues increased primarily due to an expansion of the sales force. Net income results were attributable to higher net revenues, offset by expenses related to increases in sales force, support and production personnel, and an expansion of marketing and research and development activities. In addition, earnings per share were affected by an increase to the number of outstanding shares of Company common stock as compared to the prior-year periods, which was attributable to the Company’s completion of its initial public offering in August 2010. Including the underwriter’s over-allotment option, a total of 1,900,000 shares of Company common stock were registered and sold in the initial public offering.
Robert Hansen, Chairman and CEO, commented on the Company, saying,
“Electromed, Inc. is a rapidly growing company.It is using a portion of the capital received from its IPO to grow its sales force and support its infrastructure.We believe these actions are essential investments in driving longer-term profitable results.We have also continued to make important investments in research and development.We believe that new innovations are the surest path to sustainable growth and higher profits.We have pursued these investments while maintaining solid profitability and a strong balance sheet.”
Gross profit increased to approximately $3,600,000, or 72.7% of net revenues, for the three months ended June 30, 2011, and $13,778,000, or 72.5% of net revenues, for the fiscal year ended June 30, 2011. For the three months and fiscal year ended June 30, 2010, gross profit was approximately $2,698,000, or 74.4% of net revenues, and $10,378,000, or 72.6% of net revenues, respectively. The increase in gross profit dollars resulted primarily from the increase in sales volume. Gross profit percentage was consistent for the year ended 2011 from 2010. The slight decrease in gross profit percentage for the three-month period ended June 30, 2011 primarily resulted from lower reimbursement from the mix of referrals as compared to the three-month period ended June 30, 2010. Factors such as diagnoses that are not assured of reimbursement, along with insurance programs which present lower allowable reimbursement amounts (for example, state Medicaid programs) affect average reimbursement received on a short-term basis and tend to fluctuate margins slightly on a quarterly basis.