InfuSystem Holdings, Inc. (AMEX:INFU) Q4 2022 Earnings Call Transcript

Richard DiIorio : Yes. I think to start, we did talk about this in November and being more conservative. I think last year, it was a little bit more of a challenge because we were a little hamstrung on what was already out there. This year, it’s a clean slate, right? So we can start being conservative. We can start with the 8% to 10% and hopefully build from there. I think there’s a couple of things. GE is not a glimmer in our eye anymore and a hopeful ramp. We’re seeing the ramp now. I think maybe Carrie mentioned it earlier that in Q1, we’re going to onboard more devices than we did all of last year within the GE relationship. So that’s already arrived. That’s not like we’re not hopeful that it continues to ramp or that it ramps.

It’s already here. The Pain conservatism is already in the budget. So we didn’t go and ask for 50%, 75% growth from those guys. We asked from a number that we have clear site into accounts that are already on board at the end of the year that revenue will show up this year or accounts that we’ve onboarded or had clear sight into the onboarding date and will generate revenue and nothing kind of outside of that. And like you mentioned, Sanara and the Wound Care piece, there’s nothing in here other than what we already rolled forward from 2022. So it is conservative. Our hope is that this is just the baseline at the beginning of the year and as the year progresses and we have a better line of sight into the specific timing of Pain accounts or the continued ramp in GE that we can give you guys line of sight into that as we move forward.

But I think this was a good way to start conservative with a really solid baseline that we can see and touch and feel with a clean slate this year and then build off of that as things progress. But Q1 is — Q1 has been a very good indicator for us, and we’re almost through the whole quarter. I don’t have visibility into every dollar that’s going to come in. But the first couple of months between GE and some of the other parts of our business is a very positive sign for this quarter, which obviously is a good indicator for the rest of the year.

Alex Nowak : Okay. That’s extremely helpful. And then just last question, just given the internal control issues that you outlined here, when would you — just a quick question, when would you expect to release the 10-K? What’s the time line to fix those, these internal control issues? And then are there any covenants or stipulations in the debt regarding the delays to the 10-K or internal control problems?

Barry Steele : So the 10-K is due tomorrow. We expect to file tomorrow. The efficiencies that we have are not unusual for companies just first reporting stocks and given our size and breadth, for example, segregation duties typically an area you have issues when you don’t have a huge team. So they’re pretty easy to fix. As I said in my remarks, now it’s not a lot of cost, which also implies it shouldn’t take us very long to fix it. As far as covenants goes, don’t see any problems with covenants. There’s nothing in our bank agreements that indicate that having a material weakness is an issue for our banks. So no problem there.

Operator: Our next question will come from Jim Sidoti with Sidoti & Company.

James Sidoti : Rich, I just want to be clear with the situation with the negative pressure wound therapy. So you started with Cardinal, they discontinued the product. You went to Cork, you’ve had production problems. So are you saying you’re going to have a third supplier over the course of 2023?