ENGLEWOOD, Colo., Feb. 26, 2019 /PRNewswire/ -- Zynex, Inc.
(NASDAQ: ZYXI), an innovative medical technology company
specializing in the manufacture and sale of non-invasive medical
devices for pain management, stroke rehabilitation, cardiac
monitoring and neurological diagnostics, today reported financial
results for its fourth quarter and full year ended December 31, 2018.
Fourth Quarter and Full Year Financial Results
Summary:
For the fourth quarter, the Company reported net revenue of
$9.3 million, a 15% increase over
Q4-2017. Gross margins were 80% in the fourth quarter of 2018 and
net income was $2.6 million. For the
full year, revenue grew 36% to $31.9
million and net income increased to $9.6 million.
Adjusted EBITDA was $3.1 million
in the fourth quarter of 2018 compared to $3.9 million last year. The decrease in Adjusted
EBITDA year over year is related to our investment in our sales
force to drive current and future order growth and increased
personnel in our headquarters primarily related to our billing,
quality and regulatory departments. For the full year Adjusted
EBITDA was $10.9 million.
The Company generated $9.4 million
of cash from operations during 2018, an increase of 14% compared to
$8.3 million in 2017. As of
December 31, 2018, the Company had
working capital of $8.0 million
compared to $4.4 million at
December 31, 2017. Cash on hand
increased to $10.1 million at the end
of the fourth quarter.
President and CEO Commentary:
Thomas Sandgaard, CEO said: "We
finished 2018 strong with revenue of $9.3
million in the fourth quarter and net income of $2.6 million. Orders grew 35% compared to the
fourth quarter of 2017 and were 12% higher than the third quarter
of 2018. Orders grew 33% for the full year 2018. Our gross profit
margin was 80% for the quarter and 81% for the full year.
We continue to invest in expanding our sales force and have
recently increased the pace of adding new sales reps. We expect the
addition of new sales reps to have an impact in order and revenue
growth this year and going forward.
We continue to advocate for pain patients, and for physicians to
prescribe our NexWave technology as the first line of defense in
treating chronic and acute pain without side effects. We are
dedicated to promoting our technology in an effort to remove
patient addiction and other side effects from prescription
opioids."
First Quarter 2019 Guidance:
The estimate range for the first quarter revenue is between
$8.3 and $8.8
million with Adjusted EBITDA between $2.2 and $2.7
million. The revenue estimate is approximately 21% to 28%
above last year's first quarter revenue of $6.9 million. First quarter revenue is
historically affected by health insurance deductibles not being met
in the beginning of the year.
Conference Call and Webcast Details:
Tuesday, February 26,
2019 at 2:15 p.m. MT – 4:15 p.m. ET
To register and participate in the webcast, interested parties
should click on the following link or dial in approximately 10-15
minutes prior to the webcast:
https://www.webcaster4.com/Webcast/Page/1487/29285
US PARTICIPANT
DIAL IN (TOLL FREE):
|
1-844-825-9790
|
INTERNATIONAL DIAL
IN:
|
1-412-317-5170
|
Canada Toll
Free:
|
1-855-669-9657
|
Non-GAAP Financial Measures
Zynex reports its financial results in accordance with
accounting principles generally accepted in the U.S. (GAAP). In
addition, the Company is providing in this news release financial
information in the form of Adjusted EBITDA (earnings before
interest, taxes, depreciation, amortization and stock
compensation). Management believes these non-GAAP financial
measures are useful to investors and lenders in evaluating the
overall financial health of the Company in that they allow for
greater transparency of additional financial data routinely used by
management to evaluate performance. Adjusted EBITDA can be useful
for investors or lenders as an indicator of earnings available to
service debt. Non-GAAP financial measures should not be considered
in isolation from or as an alternative to the financial information
prepared in accordance with GAAP.
About Zynex
Zynex, founded in 1996, markets and sells its own design of
electrotherapy medical devices used for pain management and
rehabilitation; and the company's proprietary NeuroMove device
designed to help recovery of stroke and spinal cord injury
patients. Zynex is also developing a new blood volume monitor for
use in hospitals and surgery centers. For additional
information, please visit: Zynex.com.
Safe Harbor Statement
Certain statements in this release are "forward-looking" or
projections and as such are subject to numerous risks and
uncertainties. The company makes no express or implied
representation or warranty as to the completeness of this
information or, in the case of projections, as to their
attainability or the accuracy and completeness of the assumptions
from which they are derived. Actual results may vary significantly
from the results expressed or implied in such statements. Factors
that could cause actual results to materially differ from
forward-looking statements include, but are not limited to, the
need to obtain FDA clearance and CE marking of new products, the
acceptance of new products as well as existing products by doctors
and hospitals, larger competitors with greater financial resources,
the need to keep pace with technological changes, our dependence on
the reimbursement for our products from health insurance companies,
our dependence on third party manufacturers to produce our goods on
time and to our specifications, implementation of our sales
strategy including a strong direct sales force and other risks
described in our filings with the Securities and Exchange
Commission including the "Risk Factors" section of our Annual
Report on Form 10-K for the year ended December 31,
2017 as well as Forms 10-Q, 8-K and 8-K/A, press releases and
the Company's website.
Contact:
Zynex, Inc.
(303) 703-4906
Investor Relations Contact:
Amato and Partners, LLC
Investor Relations Counsel
admin@amatoandpartners.com
ZYNEX,
INC.
|
CONSOLIDATED
BALANCE SHEETS
|
(in
thousands)
|
|
|
December
31,
|
|
December
31,
|
|
2018
|
|
2017
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash
|
$
|
10,128
|
|
$
|
5,565
|
Accounts receivable,
net
|
|
2,791
|
|
|
2,185
|
Inventory,
net
|
|
837
|
|
|
423
|
Prepaid expenses and
other
|
|
570
|
|
|
198
|
Total current assets
|
|
14,326
|
|
|
8,371
|
|
|
|
|
|
|
Property and
equipment, net
|
|
819
|
|
|
188
|
Deposits
|
|
314
|
|
|
370
|
Long term deferred
income taxes
|
|
725
|
|
|
-
|
Total assets
|
$
|
16,184
|
|
$
|
8,929
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Current portion of
unsecured subordinated promissory notes
|
$
|
-
|
|
$
|
231
|
Current portion of
capital leases
|
|
-
|
|
|
123
|
Accounts payable and
accrued expenses
|
|
1,552
|
|
|
2,255
|
Deferred
Rent
|
|
57
|
|
|
-
|
Income taxes
payable
|
|
688
|
|
|
-
|
Dividends
payable
|
|
2,270
|
|
|
-
|
Accrued payroll and
related taxes
|
|
908
|
|
|
538
|
Deferred insurance
reimbursement
|
|
880
|
|
|
880
|
Total current liabilities
|
|
6,355
|
|
|
4,027
|
Long-term
liabilities:
|
|
|
|
|
|
Deferred
rent
|
|
531
|
|
|
-
|
Total liabilities
|
|
6,886
|
|
|
4,027
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
Common
stock
|
|
34
|
|
|
33
|
Additional paid-in
capital
|
|
8,157
|
|
|
7,612
|
Treasury stock at
cost
|
|
(3,675)
|
|
|
(243)
|
Accumulated earnings
(deficit)
|
|
4,871
|
|
|
(2,411)
|
Total Zynex, Inc. stockholders' equity
|
|
9,387
|
|
|
4,991
|
Non-controlling interest
|
|
(89)
|
|
|
(89)
|
Total stockholders' equity
|
|
9,298
|
|
|
4,902
|
Total liabilities and stockholders' equity
|
$
|
16,184
|
|
$
|
8,929
|
ZYNEX,
INC.
|
CONSOLIDATED
STATEMENTS OF INCOME
|
(in thousands
except per share data)
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
December 31,
|
|
For the Years
Ended December 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
NET
REVENUE
|
|
|
|
|
|
|
|
Devices
|
$
1,750
|
|
$
1,260
|
|
$
6,822
|
|
$
5,020
|
Supplies
|
7,587
|
|
6,874
|
|
25,095
|
|
18,412
|
Total
revenue
|
9,337
|
|
8,134
|
|
31,917
|
|
23,432
|
|
|
|
|
|
|
|
|
COSTS OF REVENUE
AND OPERATING EXPENSES
|
|
|
|
|
|
|
|
Costs of revenue -
rental, product & supply
|
1,831
|
|
1,529
|
|
6,038
|
|
4,819
|
Selling, general and
administrative expense
|
4,625
|
|
3,013
|
|
15,509
|
|
9,669
|
Total costs of
revenue and operating expenses
|
6,456
|
|
4,542
|
|
21,547
|
|
14,488
|
|
|
|
|
|
|
|
|
Income from
operations
|
2,881
|
|
3,592
|
|
10,370
|
|
8,944
|
|
|
|
|
|
|
|
|
Other
expense
|
|
|
|
|
|
|
|
Interest
expense
|
(1)
|
|
(244)
|
|
(154)
|
|
(1,450)
|
Other expense,
net
|
(1)
|
|
(244)
|
|
(154)
|
|
(1,450)
|
|
|
|
|
|
|
|
|
Income from
operations before income taxes
|
2,880
|
|
3,348
|
|
10,216
|
|
7,494
|
Income tax
expense
|
257
|
|
40
|
|
664
|
|
129
|
Net Income
|
$
2,623
|
|
$
3,308
|
|
$
9,552
|
|
$
7,365
|
|
|
|
|
|
|
|
|
Net income per share
:
|
|
|
|
|
|
|
|
Basic
|
$
0.08
|
|
$
0.10
|
|
$
0.29
|
|
$
0.23
|
Diluted
|
$
0.08
|
|
$
0.10
|
|
$
0.28
|
|
$
0.22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
basic shares outstanding
|
32,273
|
|
32,831
|
|
32,503
|
|
32,156
|
Weighted average
diluted shares outstanding
|
33,657
|
|
34,414
|
|
34,043
|
|
33,196
|
ZYNEX,
INC.
|
Reconciliation of
GAAP to Non-GAAP Measures
|
(in
thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended December 31,
|
|
For the Years
Ended December 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Adjusted
EBITDA:
|
|
|
|
|
|
|
|
Net income
|
$
2,623
|
|
$
3,308
|
|
$
9,552
|
|
$
7,365
|
Depreciation and
Amortization
|
62
|
|
37
|
|
189
|
|
286
|
Stock-based
compensation expense
|
178
|
|
249
|
|
370
|
|
295
|
Interest
expense and other, net
|
1
|
|
244
|
|
154
|
|
1,450
|
Income
tax expense
|
257
|
|
40
|
|
664
|
|
129
|
Adjusted
EBITDA
|
$
3,121
|
|
$
3,878
|
|
$
10,929
|
|
$
9,525
|
% of Net
Revenue
|
33%
|
|
48%
|
|
34%
|
|
41%
|
|
* Depreciation does
not include amounts related to units on lease to third parties
which are depreciated and included in cost of goods
sold.
|
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SOURCE Zynex, Inc.