 Record Revenue: 26 million, a 32 Increase vs. Prior Year Net Income: 4.1 million. an Increase of 3.8 million and Adjusted EBITDA: 8.5 million, an 87 IncreaseCompany Reestablishes Full Year 2020 Guidance: Revenues of 94 million - 97 million; Adjusted EBITDA of 23 million - 26 millionROCHESTER HILLS, Michigan, Aug. 13, 2020 GLOBE NEWSWIRE -- InfuSystem Holdings, Inc. NYSE American: INFU, InfuSystem or the Company, a leading national health care service provider, facilitating outpatient care for durable medical equipment manufacturers and health care providers, today reported financial results for the second quarter ended June 30, 2020.Second Quarter Highlights: Net revenues were 26.0 million, an increase of 32 vs. prior year. Gross profit was 16.0 million, an increase of 41 vs. prior year. Gross margin was 61.5, an improvement of 3.9 vs. prior year. Net income of 4.1 million, or 0.19 per diluted share, an improvement of 3.8 million compared to the net income of 0.4 million, or 0.02 per diluted share, during the prior year. Adjusted earnings before interest, income taxes, depreciation, and amortization Adjusted EBITDA was 8.5 million, an increase of 87 vs. prior year.Management DiscussionRichard DiIorio, chief executive officer of InfuSystem, said, The second quarter of 2020 was very strong, driven by increased demand for our medical equipment and services for both our reporting segments. As a result of the increased demand, we generated record financial results during the second quarter, highlighted by net revenue growth of 32 and Adjusted EBITDA growth of 87 over the prior year. Additionally, we had a significant improvement in net income for the quarter of 3.8 million, a tenfold increase compared to last years comparable period. I am extremely proud of our team as they continue to provide uninterrupted services to our patients and customers despite the many challenges of managing the business through a pandemic.Contributing to these results are the strategic actions we took in the first quarter to increase inventory and pre-position medical equipment and supplies to allow us to meet the needs of our customers. We believe the recent elevated sales and rental of medical equipment in our DME Services segment were propelled by the COVID-19 pandemic and will most likely not recur at these levels in future quarters. However, having demonstrated our ability to adapt and respond quickly to challenging circumstances, and with the right team in place managing a growing set of value-added services, we will remain alert for additional short and long-term business opportunities and pursue them where appropriate.Mr. DiIorio continued, We enter the second half of the year with strong confidence in our two-platform service model and with the encouraging trends toward greater in-home health care services. We are pleased to reestablish guidance for 2020 with the midpoint of the new guidance higher than previously issued financial targets. For the full year 2020, we are projecting net revenues to be within the range of 94.0 million to 97.0 million; Adjusted EBITDA1 to be within the range of 23.0 million to 26.0 million; and operating cash flow between the range of 16.0 million to 18.0 million. Our guidance reflects our best estimates given the current market conditions.As we navigate our business through this pandemic, our priority remains the health and safety of our employees, customers and their families. I believe the dedication and commitment of our employees to provide industry-leading service makes us a stronger partner for our patients and customers. We look forward to building on our momentum and developing new opportunities that make a difference in peoples lives in the years to come, concluded Mr. DiIorio.2020 Second Quarter Financial Review Results of operationsNet revenues for the second quarter ended June 30, 2020 were 26.0 million, an increase of 6.3 million, or 31.8, compared to 19.7 million for the prior year second quarter. The increase was due to continued market penetration in Oncology and a net favorable impact from COVID-19 in the DME Services segment, resulting in a strong market demand for infusion pumps which increased both medical equipment sales and medical equipment rental revenues. ITS net revenue of 15.6 million increased 3.2 million, or 25.8, primarily due to favorable changes in the competitive environment for oncology services, improved third party payor billing throughput and other market-related organic growth. DME Services net revenue of 10.4 million increased 3.1 million, or 42.1, during the second quarter of 2020 as compared to the prior year period. This performance was driven by strong market demand for infusion pumps, as health care providers prepared for the potential of treating high numbers of COVID-19 patients. The demand benefited both sales of new and pre-owned medical equipment, which increased by 1.8 million and higher rental revenues, which increased by 1.2 million.Gross profit for the second quarter of 2020 of 16.0 million increased 4.6 million, or 40.7, from 11.4 million for the second quarter of 2019. Gross margin increased to 61.5, during the second quarter of 2020 as compared to 57.6 during the prior year, an increase of 3.9. The improvements were driven by the increase in net revenues creating improved operating leverage and favorable revenue mix with DME Services segment having the largest benefit and impact.ITS gross profit was 10.3 million during the second quarter of 2020, an increase of 2.4 million, or 30.1, compared to the prior year. ITS gross margin increased to 65.9, compared to 63.7, an increase of 2.2, from the prior year, mainly due improved leverage of fixed costs.DME Services gross profit during the second quarter of 2020 was 5.7 million, an increase of 2.2 million, or 65.0, over the prior year. The DME gross margin increased to 54.8, compared to 47.2, an increase of 7.6, from the prior year. The improvement was primarily due to the COVID-19 related increase in net revenues from medical equipment sales and rental revenue, some of which revenue involved higher than usual gross margin.General and administrative GA expenses for the second quarter of 2020 were 7.7 million, an increase of 12.1 from 6.9 million for the second quarter of 2019. The increase of 0.8 million was largely due to an increase in employee compensation reflecting higher staff levels supporting the growth in revenue volumes over the past 12 months and annual inflation.Net income for the second quarter of 2020 was 4.1 million, or 0.19 per diluted share, an improvement of 3.8 million as compared to the prior year net income of 0.4 million, or 0.02 per diluted share. Adjusted EBITDA, a non-GAAP measure, was 8.5 million, or 32.6 of net revenue, and increased by 3.9 million or 87 over Adjusted EBITDA for the prior year quarter of 4.5 million, or 22.9 of prior year net revenue. Balance sheet and liquidityThe materially higher net revenues experienced during the quarter, plus the impacts of the COVID-19 preparedness steps begun in the first quarter of this year, resulted in higher use of cash to fund increases in working capital and an acceleration in our planned medical equipment capital expenditures. The working capital increases include higher inventories associated with an increase in our safety stock of medical supplies, particularly for our Oncology business, totaling approximately 1.4 million and higher accounts receivable balances. Also, in the first six months of 2020 we paid for 8.8 million in medical equipment with an additional 1.7 million received and accrued or placed on order with expected delivery during the second half of the year.As of June 30, 2020, we had 11.7 million in available liquidity, including cash and undrawn amounts under our revolving credit line and our capital equipment bank facility as compared to 14.5 million at the beginning of the quarter, a reduction of 2.8 million. The decrease was partially due to our COVID-19 preparedness activities, amortization of our term debt and other non-COVID-19 related working capital increases. We estimate that our available liquidity will increase during the second half of 2020 as operating cash flows are expected to exceed cash outlays for capital expenditures during the balance of the year.Full Year 2020 GuidanceInfuSystem is reestablishing annual guidance for the full year 2020 with net revenues estimated to be within the range of 94.0 million to 97.0 million; Adjusted EBITDA estimated to be within the range of 23.0 million to 26.0 million; and operating cash flow projected to be within the range of 16.0 million to 18.0 million. The new 2020 guidance includes net favorable impacts related to COVID-19 in the amount of 3.0 million to 4.0 million in Adjusted EBITDA that is not likely to recur in future periods once the pandemic ceases to play an important role in the market.Previously, the Company issued estimated full year 2020 financial targets of net revenues of 89.0 million, Adjusted EBITDA of 22.0 million and cash flows from operations of 16.5 million but withdrew its financial targets due to the uncertainties associated with the impact of the COVID-19 pandemic.The full year 2020 guidance reflects managements current expectation for operational performance, given the current market conditions, as well as various COVID-19 related uncertainties. 