InfuSystems Holdings, Inc.

Good morning, ladies and gentlemen, and welcome to the InfuSystems first quarter 2024 financial results conference call. I will now turn the program over to Joe Dorme.

Good morning, and thanks for joining us today to review InfuSystems first quarter 2024 financial results ended March 31st, 2024. With us today on the call are Rich Diorio, Chief Executive Officer, Barry Steele, Chief Financial Officer, and Carrie LeChance, President and Chief Operating Officer. After the conclusion of today's prepared remarks, we'll open the call for questions. Before we begin with prepared remarks, I would like to remind everyone, certain statements made by the management team of NC System during this conference call constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. For the statements of historical facts, this conference call may contain forward-looking statements that involve risks and uncertainties, some of which are detailed under risk factors and documents filed by the company with the Securities and Exchange Commission, including the annual report on Form 10-K for the year ended December 31st, 2023. Forward-looking statements speak only as of the date the statements were made. The company can give no assurance that such forward-looking statements will prove to be correct. INFI System does not undertake and specifically disclaims any obligations to update any forward-looking statements except as required by law. Now I'd like to turn the call to Rich DiIorio, Chief Executive Officer of INFI System. Rich?

Thank you, Joe, and good morning, everyone. Welcome to INFI System's first quarter 2024 earnings call. Thank you all for joining us today. I'll get things started this morning with a quick overview of how we started the year. Barry will go into detail on our financial results for the first quarter, and then Carrie will provide updates on our biomedical wound care programs. I'll conclude our prepared remarks with a discussion of how our growth strategy has evolved over the last couple of years and the types of opportunities we are seeing and intend to pursue in the future. First quarter revenue was $32 million and represented the ninth quarter out of the last 11 that delivered a sequential increase in revenue. Our results were driven by continuing strength in our device solutions business unit. which was up 16% year over year, with both biomedical services and equipment sales being strong contributors. One of the themes I'll be developing on today's call is the increasing diversification of our business. Kerry discussed last quarter how the nature of our service business creates a cycle where we first have to invest to enable new growth opportunities, then second, we onboard the new business, followed by a third stage focused on constant process improvements driving long-term profitability. We have said that 2024 is going to be an accretion year, Just because 2023 delivered a lot of growth in our biomedical business and maximizing the profitability of that new revenue center is one of our top priorities for this year. But while our operating teams are heads down delivering on their efficiencies mandate, our sales teams are readying the next layer of biomedical contracts that we expect to close this year. And while that is happening, we have closed a large rental deal in an oncology customer that will start showing up in our second half numbers. And our wound care initiatives are ramping with material contributions expected by early next year. The reason it is now the norm for most quarterly press releases to announce a new revenue record is the presence of more and more diverse revenue sources. When one part of our business is in investment mode, it is likely another part is in a growth phase. Our first quarter operating results came in unplanned. There are diverse growth initiatives working their way forward all across our business, and we are confident in our revenue target for the year. Moving to profitability, we are seeing the operating improvements that are a big part of the plan for this year. Gross margins came in at 51.5%, with this driving a 10% increase in gross profit compared to the prior year. Unfortunately, the first quarter's strong operating performance was impacted by non-recurring expenses of approximately $1.2 million, approximately $400,000 of which impacted our adjusted EBITDA. Stepping back and looking at the long-term picture, I believe it is clear that our new and more diversified business initiatives are gaining operating momentum, that they are targeting and executing on improved efficiencies, and as I will discuss in a few minutes, our strategic outlook and our pipeline of new business opportunities have never been better. But before that, I'll turn it over to Barry, who will provide detail on the first quarter results.