InfuSystems Holdings, Inc.

Good day, and welcome to the Infuse System Holdings, Inc. Report's fourth quarter and full year 2024 Financial Results Conference Call. All participants will be in a 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 a touch-tone phone. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Joe Dorme of Lesson Partners. Please go ahead.

Good morning and thank you for joining us today to review InfuSystems' fourth quarter and full year 2024 financial results ended December 31st, 2024. With us today on the call are Rich DiIorio, Chief Executive Officer, Barry Steele, Chief Financial Officer, and Carrie LaChance, 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 MPU System during this conference call constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Except for the statements of historical fact, 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. INFUSYSTEM does not undertake and specifically disclaims any obligation to update any forward-looking statement except as required by law. Now I'd like to turn the call over to Rich DiIorio, Chief Executive Officer of INFUSYSTEM. Rich?

Thank you, Joe, and good morning, everyone. Welcome to INFUSYSTEM's fourth quarter and fiscal 2024 year-end earnings call. Thank you all for joining us today. I'll begin the call with an overview of the fourth quarter of the year. After that, Barry will provide a detailed summary of our financial results. Carol will give an update on our launch of ChemoMouthpiece, and then I'll have some additional comments before opening the line to questions. At the start of last year, we announced that 2024 would be an accretion year. After growing 14.4% in 2023, in part due to the rollout of the National Service Agreement with GE Healthcare, we communicated that our focus would be on continuous process improvements designed to deliver greater efficiencies and higher recurring and long-term profits. Our financial targets for the year were high single-digit revenue growth and adjusted EBITDA margin in the high teens, improving on the 17.8% result delivered in 2023. The year started out slowly, but as is common for our business, momentum grew as we progressed through the year, with the third quarter showing us tracking towards our targets. Our business momentum continued into the fourth quarter, and we delivered on our objective of making 2024 an accretion year. Gross margins increased year over year by a full 2% to 52.2%. Operating income increased 69% from last year to $6.9 million. And adjusted EBITDA increased 13% to $25.3 million. Our adjusted EBITDA margin in the third and fourth quarters exceeded 22%. And for the full year, it came in at 18.8%, a full percentage point increase over 2023. This result is after $735,000 of technology systems upgrade costs that were not included in our original forecast for the year. Our revenue growth in 2024 also built up as we worked through the year, as we added new projects and scaled existing business lines. We ended the year with revenues up 7.2% versus the prior year. This step up was a result of growth in almost every business line, including oncology and pain management, which were up 6.1% and 14.7% respectively. In device solutions, equipment rentals grew by 13.6%, equipment sales by 20.6%, driven by a large one-time transaction in the third quarter, and biomed grew by 6.7%. The one business line that came in below our expectations for the year was wound care, and this was not due to a lack of business opportunity, but rather due to our decision to pause the onboarding of some new initiatives at the end of the year to ensure that the quality of the referrals align with existing resources and expectations as we prepare to ramp this initiative in 2025. Much of our recent focus in wound care involves partnering with regional wound care DME companies to leverage our extensive payer contracts and expand upon our historic revenue cycle capabilities. We see a significant amount of opportunity for revenue cycle in the wound care space, and because of its long-term importance, we are taking a conservative approach, taking time to test our processes and improve the ways we are receiving the referrals so we can scale effectively. This new business is in addition to the Smith and Nephew negative pressure partnership, which continues to scale up as expected. As we've highlighted in the past, our core businesses, specifically in oncology and pump rentals, are capital intensive. That is, growth requires investments in pumps to enable incremental growth. Our newer initiatives in wound care and biomed are far less capital intensive, and accordingly, will generally result in greater free cash flow. We can see the growing impact of this changing business in our 2024 financial statements. our debt balance at year-end was down to a little more than $23 million. And remember, we still have a long-term interest rate swap on the first $20 million of debt at favorable below-market rates. We paid down debt in 2024 at a historic rate, and we did that after some larger-than-expected pump purchases during the year and $1.2 million of stock repurchases. Also, as reported in the press release, we have repurchased an additional $2.4 million in the first quarter of 2025. I'll stop here and turn the call over to Barry to discuss our financial results in more detail.