Former CEO takes the helm again at Eden Prairie-based health equipment supplier Agiliti

Tom Leonard is returning as CEO of Eden Prairie-based Agiliti after his successor, Tom Boehning, leaves the company.

Leonard retired on March 10, with Boehning elevated from president to CEO on that day.

"I am honored to return to Agiliti and to rejoin this incredible team as CEO," Leonard said. "Agiliti has long served a critical role in our nation's health care system, powered by a differentiated offering that has proved essential to improving our customers' clinical, operational and financial outcomes."

The medical equipment and supplies company gave no reason for Boehning's departure. However, the company's share price took a big hit after the release of second quarter results, and analysts have downgraded their recommendations on the company's stock.

Analysts pointed to the company's second quarter miss on a key earnings metric and downward guidance for the remainder of the fiscal year.

Brian Tanquilut, an analyst with Jefferies, still has a "buy" rating on Agiliti but like other analysts has lowered his 12-month price target.

"We recognize that investor sentiment on the name has soured after a Q2 EBITDA miss and guide-down that pointed to a reset in the company's earnings baseline, making [Agiliti] a show-me story," Tanquilut wrote in an investor note on Sept. 25.

Tanquilut visited the company in September, where management said challenges have come from hospitals that had increased medical equipment purchases as a result of COVID and better cash flow during the pandemic and are now cutting back on outsourcing equipment services.

On the second-quarter earnings call on Aug. 8, Agiliti lowered its earnings guidance for the remainder of the year to 54 to 59 cents a share, down from the 65 to 70 cents a share it was predicting after reporting their first-quarter results. It maintained revenue guidance.

Agiliti's shares dropped 29% the day after reporting their second quarter results and are down 58% year-to-date. The stock was trading at $6.33, down 2.5% in early trading Monday.

After retiring, Leonard remained as an employee through March 31 to help with the transition and also continued as a board member. He had been CEO of the medical technology management and service solutions company since 2015, leading it through a period of growth and an initial public stock offering in April 2021.

Boehning, a former executive with UnitedHealth Group's Optum subsidiary, had joined Agiliti as president in January 2020. When it was announced in January that he would be named CEO, Leonard credited him with the expansion of Agiliti's solutions offerings and increasing its commercial capabilities.

The company did not have any additional comment on Boehning's departure. But in a filing with the Securities and Exchange Commission, it said he was terminated without cause.

"Boehning's termination is not the result of any disagreement on, or issues with respect to, any matter relating to the company's operations, policies or practices, including financial results or accounting controls," the filing said.

On Monday, Agiliti's shares closed down 3.34%.