Electromed, Inc.

2024 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star then two. Please note, today's event is being recorded. I would now like to turn the conference over to Mike Cavanaugh with ICR Westwick. Please go ahead.

Good afternoon, and thank you for joining the ElectroMed earnings call. Earlier today, ElectroMed Incorporated released financial results for the first fiscal quarter of 2024. The quarter ended September 30, 2023. The release is currently available on the company's website at www.smartbest.com. Before we get started, I would like to remind everyone that some of the statements that management will make on this call are considered forward-looking statements, including statements about the company's future operating and financial results and plans. Such statements are subject to risks and uncertainties that could cause actual performance or achievements to be materially different from those projected. Any such statements represent management's expectations as of today's date. You should not place any undue reliance on those forward-looking statements. And the company does not undertake any obligation to update or revise forward-looking statements, whether as a result of new information, future events, or otherwise. Please refer to the company's SEC filings for further guidance on this matter. With that, I will now turn the call over to Jim Kniff, President and Chief Executive Officer of Electromed.

Thanks, Mike, and thank you to everyone joining today's call. I'm thrilled to report another strong quarter for ElectraMed to kick off fiscal year 2024 as we generated quarterly revenue of $12.3 million, representing year-over-year growth of 16%. All three of our revenue categories, home care, hospital, and international, saw revenue growth over the same period of fiscal 2023, demonstrating that our strategic growth initiatives are yielding impressive results. In addition to the strong revenue growth in the quarter, operating income came in at $142,000 compared to $44,000 in the same quarter of fiscal 2023. Brad will provide more detail later in the call regarding our financial results. Our increased revenue, our direct results of the hard work and execution of the entire ElectroMed team, we continue to attract high-quality talent to expand our direct selling efforts, which is a key component of our commercial plan. We ended the quarter with 51 sales representatives, up from 46 reps at the end of fiscal year 2023. In the second quarter, we intend to continue to thoughtfully expand the team, aiming to hire three additional reps to deepen our penetration in key markets for ElectraMed and to support a larger pool of physician prescribers. Additionally, we have initiated a revamp of our training and onboarding program with the goal of decreasing the ramp-up time to productivity for new sales reps. We have a track record of strong productivity from our sales reps, and the first quarter was no exception, coming in at an annualized rate of $876,000 in home care revenue per rep, well within our target range of $850,000 to $950,000. We look forward to sharing the results of our revamped sales rep onboarding process and future business updates and feel confident that these efforts will have a beneficial impact on our sales team and our commercial efforts at large. In addition to the continued expansion of Salesforce, we also recently hired a key executive, Amy Yonta, to lead the quality assurance, regulatory affairs, and compliance teams. Amy brings a wealth of quality and regulatory experience in the medical device industry and we are grateful to have her with us. Also, I'm pleased to report we had a successful TUV ISO 13485 surveillance audit in the first quarter. Shifting gears to strategic growth initiatives, helping to assure a positive patient experience is core to ElectroMed's mission. With that in mind, we recently introduced two updates to our business. First, we seamlessly executed a reorganization of the reimbursement team for improved efficiency, more meaningful service metrics, and service improvements for a frictionless clinical experience. Secondly, we launched an improved way of gathering, tracking, and reporting patient quality of life feedback documentation to physicians. Keeping the patient front and center of our values will always be fundamental to the success of Electromed. And by introducing these new services, we believe we are positioning Electromed and our patients for success and better health outcomes. To that end, we continue to invest in direct-to-consumer initiatives. We believe that raising awareness with the end consumer, that is our patients, is an important marketing objective that can add value to our commercial strategy, especially in exposing and educating patients on the benefits of our new Clearway home care device. In last quarter's call, I shared that we are currently underway with the launch of Clearway for hospital customers, and I'd like to provide some additional color to the launch. From our limited beta launch in Q1, we have received encouraging feedback from our customers. Specifically, we have heard that they like our intuitive touchscreen design with a single button start, our easy-to-use manual and programmable therapies, as well as our only-in-class single-hose connect with a secure fit that does not disconnect from the generator. We also improved the product's pedestal design to make it easier to use and included a basket for the vest. Both improvements were a result of user feedback. This feedback is fundamental to shaping our commercial strategy as we launch more broadly in Q2. Now, I'd like to take a moment to update you on our clinical studies. We place high importance on generating clinical data demonstrating the significant improvements in quality of life and reduction in exacerbation rates. hospitalizations, emergency department visits, and antibiotic prescriptions in bronchiectasis patients using the SmartVest system. We share data supporting the use of SmartVest as an efficacious treatment for bronchiectasis at the American Thoracic Society Conference in the spring. In another new initiative with similar focus on healthcare providers, we continue to support our new sponsored continuing medical education or CME program. The program is focused on early detection of bronchiectasis and HFCWO treatment for prescribing physicians, which serves to increase the knowledge, skills, and professional performance of clinicians. The CME program continues to receive favorable feedback from our clinicians. In the last quarterly update, we stated ElectroMed implemented a new Enterprise Resource Planning, or ERP, system to help improve efficiency in our supply fulfillment and financial processes. We are already yielding benefits from the new ERP system through improved operational rigor and data insights into the business. For example, we now have better visibility of our inventory ordering and replenishment, which will enable us to reduce our overall inventory over the course of the year while increasing our finished goods inventory to ensure patient demand is supported. The ElectroMed team has made a significant of progress executing on our strategic growth plans in the fiscal quarter of 2024, and I look forward to maintaining this momentum into the remainder of the fiscal year. With that, I'd like to hand the call over to Brad for review of our financials. Brad?