Electromed, Inc. (NYSE MKT:ELMD) Q2 2019 Earnings Conference Call Transcript
Feb 13, 2019 • 09:00 am ET
Greetings and welcome to Electromed, Inc.'s Second Quarter Fiscal 2019 Financial Results Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. (Operator Instructions). As a reminder, this conference is being recorded.
It is now my pleasure to introduce your host, Kalle Ahl of The Equity Group. Thank you. You may begin.
Kalle J. Ahl
Thank you, Sherrie, and good morning, everyone. Electromed's second quarter fiscal 2019 financial results were released yesterday after the market close. A copy of the earnings release can be found in the Investor Relations section of the company's website at www.smartvest.com.
As a matter of formality, I need to remind participants that remarks made by management during the course of this call may contain forward-looking statements about the company's results and plans. Such statements are subject to risks and uncertainties that could cause actual performance or achievements to be materially different from those projected. The words believe, expect, plan, intend, estimate, anticipate, should, or could, and similar expressions are words that are used to identify forward-looking statements, but their absence does not mean a statement is not forward-looking.
In addition, any projections as to the company's future performance represent management's estimates as of today, February 13, 2019. You should not place undue reliance on these forward-looking statements. We expressly do not undertake any duty to update forward-looking statements whether as a result of new information, future events or otherwise. We ask that you please refer to the company's SEC filings for further guidance on this matter.
Joining us from Electromed this morning are Ms. Kathleen Skarvan, President and Chief Executive Officer and Mr. Jeremy Brock, Chief Financial Officer. Kathleen will begin with some opening remarks, after which Jeremy will present a summary of the company's second quarter fiscal 2019 financial results and then we'll open the call for questions.
Now, it's my pleasure to turn the call over to Kathleen.
Thank you, Kalle. Good morning, everyone and thank you for joining us to discuss Electromed's second quarter fiscal 2019 financial results.
This quarter, our net revenue grew by approximately 15% year-over-year, reflecting 13% growth in home care revenue and of 31% increase in institutional revenue. Home care growth was driven by an increase in referrals, generated by our expanded field sales team and greater referral to approval percentage due to our sales team's success educating physicians on reimbursement requirements, resulting in more quality referrals, as well as ongoing operational excellence in our best-in-class reimbursement team.
Our institutional revenue grew by continuing to focus on integrated delivery networks. By expanding our institutional market share, it will also support our home care growth strategies. Our focused on the institutional market, on hospitals where patients are being treated, gives Electromed direct access to the health care professionals who manage the discharge patients. Often the high frequency chest wall oscillation brand used in the hospital is the default brand prescribed when discharging a patient. At Electromed, our strategies are focused on perfect