Financial Reports are Key to Consider: Electromed Inc. (NYSE: ELMD)

On Friday, Shares of Electromed Inc. (NYSE: ELMD) showed the bearish trend with a lower momentum of -1.21% and ended its trading session at $6.51. The company traded total volume of 17,365 shares as contrast to its average volume of 43.98K shares. The company has a market value of $53.71M and about 8.25M shares outstanding.

Electromed, Inc. (NYSE American: ELMD), a leader in innovative airway clearance technologies, recently declared financial results for the three months ended June 30, 2018.

Q4 FY 2018 Review:

Net revenue increased 13.3% to $8.20M in Q4 FY 2018 from $7.30M in Q4 FY 2017, mainly driven by higher home care revenue. Home care revenue rose 14.8% to $7.70M in Q4 FY 2018 from $6.70M in Q4 FY 2017, mainly because of growth in approvals as a result of continued improvements in our reimbursement operations that led to a greater referral to approval percentage and a higher average selling price per device. Net revenue for the prior year comparable period included a favorable impact of $703.0K from a one-time item related to a settlement agreement with Centers for Medicare and Medicaid Services.

Gross profit increased 12.2% to $6.70M, or 81.7% of net revenue, in Q4 FY 2018 from $6.00M, or 82.5% of net revenue, in Q4 FY 2017. The increase in gross profit resulted mainly from a boost in home care revenue.

Operating expenses, which include selling, general and administrative (“SG&A”) as well as research and development (“R&D”) expenses, totaled $5.10M, or 62.4% of revenue, in Q4 FY 2018 contrast with $4.50M, or 61.7% of revenue, in the same period of the prior year. SG&A expenses increased 14.4% to $5.10M in Q4 FY 2018 from $4.40M in Q4 FY 2017, mainly because of higher payroll and compensation-related expenses and increased travel, meals and entertainment expenses which were driven by the expansion of our sales force. These increased costs were partially offset by a $406.0K refund of medical device excise taxes that was recognized during Q4 FY 2018. R&D expenses totaled $81.0K in Q4 FY 2018 contrast to $65.0K in Q4 FY 2017.

Operating income increased 5.1% to $1.60M in Q4 FY 2018 from $1.50M in Q4 FY 2017, mainly because of increased gross profit driven by higher revenue and a refund of medical device excise taxes, which were partially offset by costs related to the expansion of our sales force.

Net income before income tax expense rose 7.6% to $1.60M in Q4 FY 2018 from $1.50M in Q4 FY 2017.

Net income increased 18.2% to $1.10M, or $0.13 per diluted share, in Q4 FY 2018, from $946.0K, or $0.11 per diluted share, in Q4 FY 2017. In Q4 FY 2018, income tax expense totaled $500.0K, contrast to $559.0K in the same period of the prior year.

Full Year FY 2018 Summary:

For the twelve months ended June 30, 2018, revenue grew 11.0% to $28.70M from $25.90M in fiscal 2017, driven by a 13.8% increase in home care revenue. Gross margins were 79.6%, contrast to 79.5% in the prior fiscal year, while net income was $1.90M, or $0.22 per diluted share, contrast to $2.20M, or $0.26 per diluted share in fiscal 2017.

Financial Condition:

Electromed’s balance sheet at June 30, 2018 included cash of $7.50M, long-term debt counting current maturities of $1.10M, working capital of $17.50M, and shareholders’ equity of $21.90M.

The Company offered net profit margin of 6.60% while its gross profit margin was 79.60%. ROE was recorded as 9.30% while beta factor was 0.95.

Chad Pitman

Chad Pitman

I am Chad Pitman and I focus on breaking news stories and ensuring we (“Stocks Market Cap”) offer timely reporting on some of the most recent stories released through market wires about “Emerging Stocks”. I have formerly spent over 3 years as a trader in U.S. Stock Market and is now semi-stepped down. I work on a full time basis for stocksmarketcap.com specializing in quicker moving active shares with a short term view on investment opportunities and trends.

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