Electromed, Inc. (NYSE MKT: ELMD), today announced financial results for the 2012 fourth quarter and fiscal year, ended June 30, 2012.
Fourth Quarter Results
Net revenues for the fiscal 2012 fourth quarter were $4.6 million, compared with net revenues of $5.0 million for the same period last year. Net loss for the quarter was $179,000, or ($0.02) per diluted share, compared to net income of approximately $165,000, or $0.02 per diluted share, for the comparable fiscal 2011 period. Although the number of prescriptions for the Company’s SmartVest
Airway Clearance System rose in the fourth quarter, revenue was impacted negatively by reimbursement factors. These factors included lower allowable reimbursement amounts with certain insurance carriers and group purchasing organizations that renewed contracts with Electromed during the quarter.
Gross profit decreased to $3.2 million for the fiscal 2012 fourth quarter, or 70.4 percent of net revenue, compared to gross profit of $3.6 million, or 72.7 percent of net revenue, for the fiscal 2011 fourth quarter. The decrease in gross profit resulted primarily from factors such as diagnoses that are not assured of reimbursement and insurance programs with lower allowable reimbursement amounts (for example, state Medicaid programs), which affected average reimbursement received. Electromed’s Medicare referrals rose year over year, but such referrals can take an extended time to recognize and collect. These factors tend to fluctuate on a quarterly basis due to the appeals process.
Operating expenses, which consist of selling, general, and administrative expenses and research and development expenses, were $3.4 million for the fiscal 2012 fourth quarter, an increase from $3.2 million in the prior-year period. This increase was primarily due to severance expense related to the retirement of the Company’s former Chairman and Chief Executive Officer.
Net revenues for fiscal 2012 totaled $19.5 million, compared to $19.0 million for the previous year. Net income was $187,000, or $0.02 per diluted share, compared to net income of $1.1 million, or $0.13 per diluted share, in fiscal 2011.
Gross profit increased to $14.1 million for the 2012 fiscal year, or 72.4 percent of net revenue, compared to gross profit of $13.8 million, or 72.5 percent of net revenue, for fiscal 2011.