8-K
Electromed, Inc. (ELMD)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of report (Date of earliest event reported): May 13, 2025
ELECTROMED, INC.
(Exact Name of Registrant as Specified in Its Charter)
| Minnesota | 001-34839 | 41-1732920 |
|---|---|---|
| (State or Other Jurisdiction of<br><br> <br>Incorporation) | (Commission File Number) | (I.R.S. Employer Identification<br><br> <br>Number) |
500 Sixth Avenue NW
New Prague, MN 56071
(Address of Principal Executive Offices) (Zip Code)
(952) 758-9299
(Registrant’s Telephone Number, Including Area Code)
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Common Stock, $0.01 par value | ELMD | NYSE American LLC |
|---|---|---|
| (Title of each class) | (Trading Symbol) | (Name of each exchange on which registered) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 2.02 | Results of Operations and Financial Condition. |
|---|
On May 13, 2025, Electromed, Inc., a Minnesota corporation (the “Company”), issued a press release announcing its financial results for the third quarter ended March 31, 2025. The full text of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and incorporated by reference into this Item 2.02.
| Item 7.01 | Regulation FD Disclosure. |
|---|
The Company has updated its investor presentation, a copy of which is furnished as Exhibit 99.2 to this Current Report on Form 8-K and incorporated by reference into this Item 7.01. The Company intends to use the presentation in whole or in part, in one or more meetings with investors and analysts.
| Item 9.01 | Financial Statements and Exhibits. |
|---|
(d) Exhibits:
| Exhibit Number | Description |
|---|---|
| 99.1 | Press Release dated May 13, 2025 |
| 99.2 | Company Investor Presentation dated May 13, 2025 |
| 104 | Cover Page Interactive Data File (embedded in the cover page and formatted in inline XBRL) |
The information contained in this Current Report on Form 8-K, including Exhibits 99.1 and 99.2 attached hereto, shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section, and shall not be incorporated by reference into any registration statement pursuant to the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| ELECTROMED, INC. | ||
|---|---|---|
| Date: May 13, 2025 | By: | /s/ Bradley M. Nagel |
| Name: | Bradley M. Nagel | |
| Title: | Chief Financial Officer |
ex_795436.htm
Exhibit 99.1
Electromed, Inc. Announces Fiscal 2025 Third Quarter Results
Strong operational execution results in tenth consecutive quarter of year-over-year revenue and net income growth
NEW PRAGUE, Minn.--(BUSINESS WIRE)-- Electromed, Inc. (“Electromed” or the “Company”) (NYSE American: ELMD), a leader in innovative airway clearance technologies, today announced financial results for the three and nine months ended March 31, 2025 (“Q3 FY 2025”).
Q3 FY 2025 Company Highlights
| ● | Net revenue increased 13.1% to $15.7 million in Q3 FY 2025, from $13.9 million in the third quarter of the prior fiscal year. |
|---|---|
| ● | Operating income increased to $2.1 million, a 16.2% increase from the third quarter of the prior fiscal year. |
| --- | --- |
| ● | Net income was $1.9 million, or $ 0.21 per diluted share, compared to $1.5 million, or $ 0.17 per diluted share in the third quarter of the prior fiscal year. |
| --- | --- |
| ● | Operating cash flow increased to $7.5 million for the nine months ended Q3 FY 2025, an increase of $3.0 million from the same period of the prior fiscal year. |
| --- | --- |
| ● | Electromed's board of directors approved a stock repurchase authorization of $5M in Q3 FY 2025. |
| --- | --- |
“I am pleased to report our tenth consecutive quarter of year-over-year revenue and net income growth,” said Jim Cunniff, Electromed President and Chief Executive Officer. “In addition to our excellent operational performance, we advanced multiple market development initiatives designed to highlight the value of SmartVest® Clearway® therapy to both healthcare professionals and patients, including the launch of a Veterans Administration direct-to-consumer outreach program in 11 cities. I am proud of the Electromed team’s results, as well as our position as a growing and profitable small-cap medical technology company with a consistent track record of value creation for our shareholders.”
Q3 FY 2025 Results
All amounts below are for the three months ended March 31, 2025, and compare to the three months ended March 31, 2024 (“Q3 FY 2024”).
Net revenues grew 13.1% to $15.7 million, from $13.9 million.
Revenue in our direct homecare business increased year-over-year by 14.8% to $14.1 million, from $12.3 million. The increase in revenue was primarily due to incremental referrals and approvals driven by an increase in direct sales representatives and efficiencies within our reimbursement department, as well as higher net revenues per approval. Field sales force employees totaled 62 at quarter end, 55 of which were direct sales representatives. The annualized homecare revenue per weighted average direct sales representative in Q3 FY 2025 was $1,028,000, slightly higher than Electromed’s target range of $900,000 to $1,000,000.
Revenue in our non-homecare businesses remained consistent year-over-year at $1.6 million. Homecare distributor revenue of $696,000 grew 32.8% and was offset by a 7.5% decline in Hospital revenue, which decreased to $724,000, and a 41.5% decline in Other revenue, which decreased to $162,000.
Gross profit increased to $12.2 million or 78.0% of net revenues from $10.4 million or 74.8% of net revenues. The increase in gross profit dollars was primarily a result of increased overall revenue and the increase in gross profit percentage was a result of higher net revenue per device.
Selling, general and administrative (“SG&A”) expenses were $9.8 million representing an increase of $1.4 million or 17.2%. The increase in the current period was primarily due to the increased salaries and incentive compensation related to the higher average number of personnel in the sales, sales support, marketing, and reimbursement teams to process higher patient referrals.
Operating income was $2.1 million or 13.6% of net revenues, compared to $1.8 million, or 13.3% of net revenues. This increase in operating income was primarily due to an increase in revenue and gross profit.
Net income increased by 26.7% to $1.9 million, or $ 0.21 per diluted share, compared to $1.5 million, or $ 0.17 per diluted share.
As of March 31, 2025, Electromed had $15.2 million in cash, $23.4 million in accounts receivable and no debt, achieving a working capital of $35.7 million and total shareholders’ equity of $43.9 million. The cash balance reflects a decrease of $0.8 million for the nine months ended March 31, 2025, compared to an increase in cash of $4.3 million in the nine months ended March 31, 2024. The decrease in cash for the nine months ended March 31, 2025, was driven by share repurchases of approximately $6.3 million of Electromed common stock and $2.3 million of taxes paid from net share settlement of vested stock, offset by $7.5 million of positive operating cash flow, which is an increase of $3.0 million year-over-year.
Conference Call and Webcast Information
The conference call with members of Electromed management will be held at 5:00 p.m. Eastern Time on Tuesday, May 13, 2025.
Interested parties may participate in the call by dialing (844) 826-3033 (Domestic) or (412) 317-5185 (International).
The live conference call webcast will be accessible in the Investor Relations section of Electromed’s website and directly via the following link: https://viavid.webcasts.com/starthere.jsp?ei=1718295&tp_key=234b23a90d
For those who cannot listen to the live broadcast, a replay will be available by dialing (844) 512-2921 (Domestic) or (412) 317-6671 (International) and referencing the replay pin number 10199555. Additionally, an online replay will be available for one year in the Investor Relations section of Electromed’s web site at: https://investors.smartvest.com/events-and-presentations/default.aspx
About Electromed, Inc.
Electromed, Inc. manufactures, markets, and sells products that provide airway clearance therapy, including the SmartVest® Airway Clearance System, to patients with compromised pulmonary function. It is headquartered in New Prague, Minnesota, and was founded in 1992. Further information about Electromed can be found at www.smartvest.com.
Cautionary Statements
Certain statements in this press release constitute forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can generally be identified by words such as “anticipate,” “believe,” “continue,” “estimate,” “expect,” “intend,” “may,” “plan” “potential,” “should,” “will,” and similar expressions, including the negative of these terms, but they are not the exclusive means of identifying such statements. Forward-looking statements cannot be guaranteed, and actual results may vary materially due to the uncertainties and risks, known or unknown associated with such statements. Examples of risks and uncertainties for the Company include, but are not limited to, competitive nature of our market; changes to Medicare, Medicaid, or private insurance reimbursement policies; changes to state and federal health care laws; changes affecting the medical device industry; our ability to develop new sales channels for our products such as the homecare distributor channel; our need to maintain regulatory compliance and to gain future regulatory approvals and clearances; new drug or pharmaceutical discoveries; general economic and business conditions; our ability to renew our line of credit or obtain additional credit as necessary; our ability to protect and expand our intellectual property portfolio; the risks associated with expansion into international markets, as well as other factors we may describe from time to time in the Company’s reports filed with the Securities and Exchange Commission (including the Company’s most recent Annual Report on Form 10-K, as amended from time to time, and subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K). Investors should not consider any list of such factors to be an exhaustive statement of all the risks, uncertainties or potentially inaccurate assumptions investors should take into account when making investment decisions. Shareholders and other readers should not place undue reliance on “forward-looking statements,” as such statements speak only as of the date of this press release. We undertake no obligation to update them in light of new information or future events.
Brad Nagel, Chief Financial Officer
(952) 758-9299
investorrelations@electromed.com
Mike Cavanaugh, Investor Relations
ICR Healthcare
(617) 877-9641
mike.cavanaugh@icrhealthcare.com
Source: Electromed, Inc.
Electromed, Inc.
Condensed Balance Sheets
| June 30, 2024 | |||
|---|---|---|---|
| Assets | |||
| Current Assets | |||
| Cash and cash equivalents | 15,237,000 | $ | 16,080,000 |
| Accounts receivable (net of allowances for credit losses of 45,000) | 23,442,000 | 23,333,000 | |
| Contract assets | 1,124,000 | 719,000 | |
| Inventories | 2,968,000 | 3,712,000 | |
| Income tax receivable | 932,000 | - | |
| Prepaid expenses and other current assets | 492,000 | 329,000 | |
| Total current assets | 44,195,000 | 44,173,000 | |
| Property and equipment, net | 4,813,000 | 5,165,000 | |
| Finite-life intangible assets, net | 588,000 | 657,000 | |
| Other assets | 703,000 | 87,000 | |
| Deferred income taxes | 2,152,000 | 2,152,000 | |
| Total assets | 52,451,000 | $ | 52,234,000 |
| Liabilities and Shareholders' Equity | |||
| Current Liabilities | |||
| Accounts payable | 1,879,000 | $ | 1,010,000 |
| Accrued compensation | 3,971,000 | 3,893,000 | |
| Income tax payable | - | 277,000 | |
| Warranty reserve | 1,594,000 | 1,567,000 | |
| Other accrued liabilities | 1,067,000 | 930,000 | |
| Total current liabilities | 8,511,000 | 7,677,000 | |
| Other long-term liabilities | - | 12,000 | |
| Total liabilities | 8,511,000 | 7,689,000 | |
| Shareholders' Equity | |||
| Common stock, 0.01 par value per share, 13,000,000 shares authorized; 8,509,619 and 8,637,883 shares issued and outstanding, as of March 31, 2025, and June 30, 2024, respectively | 85,000 | 87,000 | |
| Additional paid-in capital | 21,300,000 | 20,790,000 | |
| Retained earnings | 22,555,000 | 23,668,000 | |
| Total shareholders' equity | 43,940,000 | 44,545,000 | |
| Total liabilities and shareholders' equity | 52,451,000 | $ | 52,234,000 |
All values are in US Dollars.
Electromed, Inc.
Condensed Statements of Operations
| Three Months Ended | Nine Months Ended | |||||||
|---|---|---|---|---|---|---|---|---|
| March 31, | March 31, | |||||||
| 2025 | 2024 | 2025 | 2024 | |||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||
| Net revenues | $ | 15,684,000 | $ | 13,871,000 | $ | 46,607,000 | $ | 39,884,000 |
| Cost of revenues | 3,455,000 | 3,489,000 | 10,260,000 | 9,459,000 | ||||
| Gross profit | 12,229,000 | 10,382,000 | 36,347,000 | 30,425,000 | ||||
| Operating expenses | ||||||||
| Selling, general and administrative | 9,812,000 | 8,374,000 | 29,033,000 | 25,699,000 | ||||
| Research and development | 277,000 | 167,000 | 694,000 | 480,000 | ||||
| Total operating expenses | 10,089,000 | 8,541,000 | 29,727,000 | 26,179,000 | ||||
| Operating income | 2,140,000 | 1,841,000 | 6,620,000 | 4,246,000 | ||||
| Interest income, net | 142,000 | 120,000 | 489,000 | 293,000 | ||||
| Net income before income taxes | 2,282,000 | 1,961,000 | 7,109,000 | 4,539,000 | ||||
| Income tax expense | 391,000 | 468,000 | 1,776,000 | 1,217,000 | ||||
| Net income | $ | 1,891,000 | $ | 1,493,000 | $ | 5,333,000 | $ | 3,322,000 |
| Income per share: | ||||||||
| Basic | $ | 0.22 | $ | 0.17 | $ | 0.63 | $ | 0.39 |
| Diluted | $ | 0.21 | $ | 0.17 | $ | 0.59 | $ | 0.38 |
| Weighted-average common shares outstanding: | ||||||||
| Basic | 8,495,005 | 8,565,725 | 8,493,715 | 8,549,352 | ||||
| Diluted | 8,967,838 | 8,892,821 | 8,980,218 | 8,822,938 |
Electromed, Inc.
Condensed Statements of Cash Flows
| Nine Months Ended March 31, | ||||||
|---|---|---|---|---|---|---|
| 2025 | 2024 | |||||
| (Unaudited) | (Unaudited) | |||||
| Cash Flows From Operating Activities | ||||||
| Net income | $ | 5,333,000 | $ | 3,322,000 | ||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
| Depreciation | 663,000 | 594,000 | ||||
| Amortization of finite-life intangible assets | 112,000 | 37,000 | ||||
| Share-based compensation expense | 2,409,000 | 1,250,000 | ||||
| Deferred income taxes | - | 39,000 | ||||
| Changes in operating assets and liabilities: | ||||||
| Accounts receivable | (109,000 | ) | 223,000 | |||
| Contract assets | (405,000 | ) | (155,000 | ) | ||
| Inventories | 564,000 | 78,000 | ||||
| Prepaid expenses and other assets | (779,000 | ) | 1,234,000 | |||
| Income tax receivable, net | (1,209,000 | ) | (627,000 | ) | ||
| Accounts payable and accrued liabilities | 877,000 | (1,386,000 | ) | |||
| Accrued compensation | 78,000 | (31,000 | ) | |||
| Net cash provided by operating activities | 7,534,000 | 4,578,000 | ||||
| Cash Flows From Investing Activities | ||||||
| Expenditures for property and equipment | (117,000 | ) | (265,000 | ) | ||
| Expenditures for finite-life intangible assets | (32,000 | ) | (84,000 | ) | ||
| Net cash used for investing activities | (149,000 | ) | (349,000 | ) | ||
| Cash Flows From Financing Activities | ||||||
| Issuance of common stock upon exercise of options | 381,000 | 111,000 | ||||
| Taxes paid on net share settlement of stock awards | (2,278,000 | ) | - | |||
| Repurchase of common stock | (6,331,000 | ) | - | |||
| Net cash (used for) provided by financing activities | (8,228,000 | ) | 111,000 | |||
| Net (decrease) increase in cash | (843,000 | ) | 4,340,000 | |||
| Cash and cash equivalents | ||||||
| Beginning of period | 16,080,000 | 7,372,000 | ||||
| End of period | $ | 15,237,000 | $ | 11,712,000 |
Image Exhibit
Exhibit 99.2
