Hospitals and medical centers dealing with the surge in COVID-19 cases ordered more equipment during the summer months, boosting Agiliti Inc.'s revenue by 35%. The Bloomington-based company also raised its financial guidance for the rest of the year.
The company manages, services and repairs medical equipment used in more than 9,000 health care settings across the United States. It also has a government contract to manage the nation's stockpile of medical equipment.
For the third quarter, it earned $9.7 million, or 7 cents a share, on revenue of $262 million. In the same period a year ago, the company lost $10.2 million, or 10 cents a share.
"Our strong results from the quarter and our increased financial guidance for the year reflect the powerful fundamentals of our business" said Tom Leonard, Agiliti's chief executive, in a news release.
The company now expects full year 2021 revenue to be $1.01 billion to $1.02 billion, up from the previous range of $965 million to $980 million. It raised profit expectations 7% from its previous guidance and now expects its earnings, adjusted for merger and acquisition costs and other one-time expenses, to be $300 million to $310 million.
Guidance for the remainder of the year does include assumptions that Agiliti will win another federal contract to continue managing the stockpile of critical medical equipment. A contract from the department of Health and Human Services expired earlier this year and the company has been operating on a series of short-term extensions.
Leonard told analysts the company does not know when a new long-term contract will be awarded, but he is confident it will come through.
On Oct. 1, after the third quarter closed, Agiliti closed on its previously announced $230 million acquisition of Sizewise Rentals, a maker of specialty hospital beds and other mobility equipment based in Lenexa, Kan. Sizewise's revenue for its most recent fiscal year was $155 million.
"The acquisition of Sizewise is a perfect example of our 'overlap and extend' approach to M&A," Leonard said in a news release announcing the Sizewise deal. "The combination builds on our existing geographic footprint and adds relevant scale to our Equipment Solutions service line, while simultaneously expanding our capabilities to bring differentiated products and services to market for our customers."
Agiliti plans to pay for the Sizewise acquisition with available cash and $150 million in debt.
Earlier this year, Agiliti raised $390 million when it sold 26.3 million shares, at $14 a share, in its initial public offering. Shares of Agiliti closed at $25.30 on Tuesday and was the leading performer among the seven Minnesota public companies to complete an IPO in 2021.
On Wednesday, the shares lost 2.6% of their value to close at $24.64.
