Electromed, Inc. (AMEX:ELMD) Q1 2024 Earnings Call Transcript

Aaron Wukmir: Great. Great. Yes, that is super helpful. And just to make sure I caught this right, you ended with 51 sales reps. Is that correct? And then you plan to hire 3 more?

Jim Cunniff: Correct, yes. And we intend to have those 3 positions filled there in this month.

Aaron Wukmir: This month. Okay. Okay. Got you. And then I guess just a quick question for Brad here. You mentioned the SG&A was a bit higher this quarter, and it sounds like that’s going to be nonrecurring. Just thinking about how we should think about that line moving forward.

Jim Cunniff: Thanks, Aaron.

Brad Nagel: Yes, exactly, Aaron. I think we’ve talked a lot about the opportunity that we have as we continue to grow our top line in the mid-teens or better and wanting to be able to show leverage on the bottom line over time. We know that our Q1 tends to be a heavy quarter for us when we’re ramping up sales reps ahead of their kind of reaching sort of full productivity but do anticipate that as a rate of revenue, we’ll see improvement in our SG&A over the balance of the year. And really, it’s a goal of us to show improvement of that year-over-year going forward.

Aaron Wukmir: Got you. Okay. Makes sense. Congrats on the strong momentum.

Operator: Thank you. Ladies and gentlemen, that’s all the time we have for questions today. So I’d like to turn the conference back over to Jim Cunniff for any closing remarks.

Jim Cunniff: Thank you very much for joining the call today, and thank you for your continued support of Electromed. As I mentioned to Aaron, I’m excited to continue executing against our strategic growth plans and to scale the Electromed business to drive increased value to our shareholders. If you are interested in a follow-up call, please contact our Investor Relations partners at ICR Westwicke. Also, I want to let everybody know that we’ll be hosting an investor meeting in person and virtually in the back half of this quarter. And likewise, if you’re interested in more information or you’d like to participate, please contact our Investor Relations contacts again at ICR Westwicke. So thank you again. Appreciate your time today and appreciate your investment on Electromed. Thank you, everyone.

Operator: Thank you. Ladies and gentlemen, this concludes today’s conference call. We thank you all for attending today’s presentation. You may now disconnect your lines, and have a wonderful day.