InfuSystem Holdings, Inc. (NYSE MKT:INFU) Q3 2018 Earnings Conference Call Transcript
Nov 13, 2018 • 09:00 am ET
Good morning, ladies and gentlemen, and welcome to the InfuSystem Holdings Third Quarter Fiscal Year 2018 Financial Results Conference Call. All participants will be in listen-only mode. (Operator Instructions) After today's presentation, there will be an opportunity to ask questions. (Operator Instructions) Please note, this event is being recorded.
At this time, I would like to turn the conference over to Joe Dorame of Lytham Partners. Please go ahead, sir.
Good morning, and thank you for joining us today to review the financial results of InfuSystem Holdings, Inc. for the third quarter of 2018 which ended on September 30, 2018. With us today on the call representing the company are Rich DiIorio, President and CEO; and Greg Schulte, CFO.
After the conclusion of today's prepared remarks, we'll open the call for a question-and-answer session. If anyone participating on today's call does not have a full text copy of the press release, you can retrieve it from the company's website at www.infusystem.com or numerous other financial websites.
(Forward-Looking Cautionary Statements)
Now I'd like to turn the call over to Rich DiIorio, President and CEO of InfuSystem. Rich?
Thanks, Joe, and good morning, everyone, and thank you for participating in today's earnings call. I'm joined on today's call by Greg Schulte, our CFO. In the third quarter, we continue to make progress on our strategic initiatives as we're steadily growing our revenues and cash flow. Absent ASC 606, we had growth of 3% versus Q3 2017. That steady growth, coupled with improved operational efficiencies are generating significant increases in operating cash flow. Through the first three quarters, operating cash flow was $8.1 million versus $4.1 million in the prior year. This represents an increase of about 97%.
We will continue to use a strong cash generation to invest in our business as appropriate and to support smart growth and to repurchase stock. EBITDA for the quarter was slightly off when compared to the same period in 2017. The key factor responsible for the difference is the cost of investing in our business in anticipation of some new oncology revenue that we expect due to some recent developments in that market.
I will explain the new revenue opportunities after Greg provides the third quarter financial detail, but I'd like to briefly remind everyone that when we win new oncology customers, we have to take the steps necessary to fully deliver our services before the first patient receives one of our pumps. When that occurs, the paperwork is generated, we collect it, convert it into billings, which are then submitted to third-party insurance payers. There's always a month or more delay between our launching our services and our beginning to recognize the revenue for those services. And when this timing straddle the end of the quarter, our report show only the cost and none of the corresponding revenue.
As I will discuss in a few minutes, we see material revenue opportunities coming our way in the near future, and you can see in our financial