Exhibit 99.1

Electromed, Inc. Announces Record Fiscal Year 2024 Financial Results

Record Q4 and full year financial results

NEW PRAGUE, Minn.--(BUSINESS WIRE)-- Electromed, Inc. (“Electromed”) (NYSE American: ELMD), a leader in innovative airway clearance technologies, today announced financial results for the three months (“Q4 FY 2024”) and full year (“FY 2024”) ended June 30, 2024.

Q4 FY 2024 Financial Highlights

FY 2024 Financial Highlights

“I’m extremely pleased with the Electromed team’s performance in fiscal 2024, as we continued to drive double-digit top line growth coupled with strong operating leverage,” said Jim Cunniff, President, and Chief Executive Officer. “The end results were impressive, namely delivering record revenues, record operating income, and record earnings for the year, an impressive feat for any company. We again gained market share, driven largely by ongoing infrastructure investments across the commercial team, as well as ongoing market development initiatives to raise awareness of HFCWO therapy with physicians and clinics treating bronchiectasis patients. These results were achieved despite headwinds from the expiration of the CMS waiver that we benefited from in FY 2023. We will continue to make deliberate investments in our growth and believe Electromed is well-positioned to deliver similar outstanding results in fiscal 2025.”

Q4 FY 2024 Results

All amounts below are for the three months ended June 30, 2024, and compare to the three months ended June 30, 2023 (“Q4 FY 2023”) unless otherwise noted.

Net revenues grew 9.0% to $14.8 million, from $13.6 million in Q4 FY 2023.

Revenue in our direct homecare business increased year-over-year by 6.2% to $13.4 million, from $12.6 million. The increase in revenue was due to an increase in direct sales representatives, higher quality referrals, and efficiencies within our reimbursement department.

Gross profit increased to $11.3 million, or 76.2% of net revenues, from $10.5 million or 76.8% of net revenues in the prior fiscal year. The increase in gross profit in Q4 FY2024 was primarily due to increased revenues during the quarter. The decrease in gross margin rate compared to Q4 FY 2023 was primarily due to increased material costs and less favorable revenue mix across channels.

Selling, general and administrative (“SG&A”) expenses were $8.8 million representing an increase of $0.1 million, or 1.5%, compared to Q4 FY 2023. The increase in SG&A expense was primarily due to increases in share-based compensation, salaries, and incentive compensation.

Operating income for the quarter was $2.3 million, compared to $1.5 million in Q4 FY 2023. The increase in operating income was driven primarily by increased net revenues and gross profit.

Net income for the quarter was $1.8 million or $0.20 per diluted share, compared to $1.0 million, or $0.12 per diluted share, in Q4 FY 2023.

FY 2024 Summary

Net revenues for the full year grew 13.8% to $54.7 million, from $48.1 million in fiscal 2023.

Revenue in our direct homecare market increased year-over-year by 12.6% to $49.5 million, from $44.0 million. The increase in revenue was due to an increase in direct sales representatives, and efficiencies recognized within our reimbursement department because of recent investments made to streamline the claims process. Field sales force employees totaled 62 at year end, 53 of which were direct sales representatives. Homecare revenue per weighted average direct sales representative in FY 2024 was $967,000, slightly higher than Electromed’s annual target range of $850,000 to $950,000.

Revenue in our hospital market increased by $0.5 million, or 21.9%, in fiscal 2024 compared to fiscal 2023. Hospital revenue includes sales to hospitals, rental companies and other institutions. The increase was primarily due to an increase in sales representatives focused on the hospital market as well as increased capital and disposable demand.

Revenue in our homecare distributor market increased by $0.2 million, or 14.5%, in fiscal 2024 compared to fiscal 2023. The revenue increase in fiscal 2024 was due to increased demand from one of our primary homecare distribution partners. We sell to a limited number of home medical equipment distributors, who in turn sell our SmartVest System in the U.S. homecare market.

Gross profit increased to $41.7 million in fiscal 2024, or 76.3% of net revenues, from $36.5 million or 76.0% of net revenues, in fiscal 2023. The increase in gross profit was primarily related to increased revenue, decreased shipping expenses and increased material costs in the prior year to expedite purchases which did not recur in the current year.

Selling, general and administrative (“SG&A”) expenses were $34.5 million in fiscal 2024, representing an increase of $2.9 million or 9.2% from $31.6 million in fiscal 2023. The increase in SG&A expenses was primarily related to increases in share-based compensation, salaries, and incentive compensation related to the higher average number of sales, sales support, marketing, and reimbursement personnel to process higher patient referrals.

Operating income for fiscal 2024 was $6.6 million compared to $4.0 million in fiscal 2023. The increase in operating income was driven primarily by increased net revenues and gross profit.

Net income for fiscal 2024 was $5.2 million, or $0.58 per diluted share, compared to net income of $3.2 million, or $0.36 per diluted share, in fiscal 2023.

As of June 30, 2024, Electromed had $16.1 million in cash, $23.3 million in accounts receivable and no debt, achieving working capital of $36.5 million, and total shareholders’ equity of $44.5 million.

Conference Call and Webcast Information

A conference call with members of Electromed management will be held at 5:00 p.m. Eastern Time on Tuesday, August 27, 2024.

Interested parties may participate in the call by dialing (877) 407-0789 (Domestic) or (201) 689-8562 (International).

The live conference call webcast will be accessible in the Investor Relations section of Electromed’s website and directly via the following link: https://viavid.webcasts.com/starthere.jsp?ei=1681151&tp_key=13db7f17a1

For those who cannot listen to the live broadcast, a replay will be available by dialing (844) 512-2921 (Domestic) or (412) 317-6671 (International) and referencing the replay pin number 13748052. Additionally, an online replay will be available for one year in the Investor Relations section of Electromed’s web site at: https://investors.smartvest.com/events-and-presentations/default.aspx

About Electromed, Inc.

Electromed, Inc. manufactures, markets, and sells products that provide airway clearance therapy, including the SmartVest® Airway Clearance System, to patients with compromised pulmonary function. It is headquartered in New Prague, Minnesota, and was founded in 1992. Further information about Electromed can be found at www.smartvest.com.

Cautionary Statements

Certain statements in this press release constitute forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can generally be identified by words such as “anticipate,” “believe,” “estimate,” “continue,” “expect,” “intend,” “may,” “plan” “potential,” “should,” “will,” and similar expressions, including the negative of these terms, but they are not the exclusive means of identifying such statements. Forward-looking statements cannot be guaranteed, and actual results may vary materially due to the uncertainties and risks, known or unknown associated with such statements. Examples of risks and uncertainties for Electromed include, but are not limited to, the competitive nature of our market; changes to Medicare, Medicaid, or private insurance reimbursement policies; changes to state and federal health care laws; changes affecting the medical device industry; our ability to develop new sales channels for our products such as the homecare distributor channel; our need to maintain regulatory compliance and to gain future regulatory approvals and clearances; new drug or pharmaceutical discoveries; general economic and business conditions; our ability to renew our line of credit or obtain additional credit as necessary; our ability to protect and expand our intellectual property portfolio; the risks associated with expansion into international markets, as well as other factors we may describe from time to time in Electromed’s reports filed with the Securities and Exchange Commission (including Electromed’s most recent Annual Report on Form 10-K, as amended from time to time, and subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K). Investors should not consider any list of such factors to be an exhaustive statement of all the risks, uncertainties or potentially inaccurate assumptions investors should take into account when making investment decisions. Shareholders and other readers should not place undue reliance on “forward-looking statements,” as such statements speak only as of the date of this press release. We undertake no obligation to update them in light of new information or future events.

Brad Nagel, Chief Financial Officer
(952) 758-9299
[email protected]

Mike Cavanaugh, Investor Relations
ICR Westwicke
(617) 877-9641
[email protected]

Electromed, Inc.

Balance Sheets

Electromed, Inc.

Statements of Operations

Electromed, Inc.

Statements of Cash Flows