ENGLEWOOD, Colo., Feb. 27, 2020 /PRNewswire/ --
- 2019 Full Year
-
- Revenue increased 42% year over year to $45.5 million
- Net income $9.5 million;
Diluted EPS $0.28
- 2019 Revenue, net income and Adjusted EBITDA are the highest
in Company history
- Adjusted EBITDA increased 11% to $12.1M
- 2019 Fourth Quarter
-
- Revenue increased 52% year over year to $14.2 million
- Orders increased 129%
- Net income of $2.9 million;
Diluted EPS $0.09
- Adjusted EBITDA increased 30% to $4.1 million
- Fourteenth consecutive quarter of positive net
income
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, 2019.
Fourth Quarter Financial Results Summary:
For the fourth quarter, the Company reported net revenue of
$14.2 million, a 52% increase over
the fourth quarter of 2018. Gross margins were 80% in the fourth
quarter of 2019 and net income was $2.9
million.
Adjusted EBITDA was $4.1 million
in the fourth quarter of 2019.
The Company generated $2.1 million
of cash from operations during the fourth quarter of 2019. As of
December 31, 2019, the Company had
working capital of $17.4 million a
137% increase compared to $7.3
million at December 31, 2018.
Cash on hand was $14.0 million at the
end of the fourth quarter.
President and CEO Commentary:
Thomas Sandgaard, CEO said: "In
the fourth quarter, we posted revenue of $14.2 million, which is the highest quarterly
revenue in the history of the Company and net income of
$2.9 million. Orders grew 129%
compared to the fourth quarter of 2018 up from 95% year-over-year
growth in the third quarter.
"In the fourth quarter, we continued to focus on the execution
of our growth strategy and the related growth of our sales
force. We expect the addition of new sales reps to have an
impact on order and revenue growth this year and going forward. In
addition, we continue to invest in our infrastructure to support
the increase in order volume.
"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 and Full Year 2020 Guidance:
The estimate range for the first quarter revenue is between
$14.0 and $14.5 million with Adjusted EBITDA between
$2.3 and $2.8
million as we continue to invest in growing our sales force.
The revenue estimate is approximately 52% to 58% above 2019 first
quarter revenue of $9.2 million.
First quarter revenue is historically affected by health insurance
deductibles not being met in the beginning of the year.
Full year 2020 revenue is estimated between $75.0 and $80.0
million with Adjusted EBITDA between $15.0 and $18.0
million. The full year revenue estimate is approximately 65%
to 76% above 2019 revenue of $45.5
million.
Conference Call and Webcast Details:
Thursday, February 27,
2020 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/1487/33247
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, other income/expense
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, Inc.
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 also has a blood volume
monitor for use in hospitals and surgery centers. For additional
information, please visit: www.zynex.com.
Safe Harbor Statement
This release contains forward-looking statements within the
meaning of the safe harbor provisions of the U.S. Private
Securities Litigation Reform Act of 1995. Such forward-looking
statements include those that express plans, anticipation, intent,
contingency, goals, targets or future development and/or otherwise
are not statements of historical fact.
In some cases, you can identify forward-looking statements by
terminology, such as
"expects," "anticipates," "intends," "estimates," "plans," "believes," "seeks," "may," "should," "could," "will," "future," "projects," "strategy," or
the negative of such terms or other similar expressions.
Forward-looking statements are neither historical facts nor
assurances of future performance. Instead, they are based only on
our current beliefs, expectations and assumptions regarding the
future of our business, future plans and strategies, projections,
anticipated events and trends, the economy and other future
conditions. Because forward-looking statements relate to the
future, they are subject to inherent uncertainties, risks and
changes in circumstances that are difficult to predict and many of
which are outside of our control. Our actual results and financial
condition may differ materially from those indicated in the
forward-looking statements. Therefore, you should not rely on any
of these forward-looking statements. Important 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, 2018.
Any forward-looking statement made by us in this release is
based only on information currently available to us and speaks only
as of the date on which it is made. We undertake no obligation to
publicly update any forward-looking statement, whether written or
oral, that may be made from time to time, whether as a result of
new information, future developments or otherwise.
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)
|
(unaudited)
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
2019
|
|
2018
|
|
|
|
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash
|
|
$
14,040
|
|
$
10,128
|
Accounts
receivable
|
|
5,833
|
|
2,791
|
Inventory,
net
|
|
2,378
|
|
837
|
Prepaid expenses and
other
|
|
315
|
|
568
|
Total current assets
|
|
22,566
|
|
14,324
|
|
|
|
|
|
Property and
equipment, net
|
|
858
|
|
819
|
Operating lease
asset
|
|
3,831
|
|
3,050
|
Finance lease
asset
|
|
180
|
|
19
|
Deposits
|
|
329
|
|
314
|
Long term deferred
income taxes
|
|
513
|
|
725
|
Total assets
|
|
$
28,277
|
|
$
19,251
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts payable and
accrued expenses
|
|
2,133
|
|
1,552
|
Lease liability -
operating leases
|
|
1,211
|
|
671
|
Lease liability -
finance leases
|
|
45
|
|
14
|
Income taxes
payable
|
|
52
|
|
688
|
Dividends
payable
|
|
8
|
|
2,270
|
Accrued payroll and
related taxes
|
|
1,748
|
|
908
|
Deferred insurance
reimbursement
|
|
-
|
|
880
|
Total current liabilities
|
|
5,197
|
|
6,983
|
Long-term
liabilities:
|
|
|
|
|
Lease liability -
operating leases
|
|
3,282
|
|
2,967
|
Lease liability -
finance leases
|
|
145
|
|
10
|
Total liabilities
|
|
8,624
|
|
9,960
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
Common
stock
|
|
34
|
|
34
|
Additional paid-in
capital
|
|
9,198
|
|
8,157
|
Treasury
stock
|
|
(3,846)
|
|
(3,675)
|
Retained
earnings
|
|
14,356
|
|
4,864
|
Total Zynex, Inc. stockholders' equity
|
|
19,742
|
|
9,380
|
Non-controlling interest
|
|
(89)
|
|
(89)
|
Total stockholders' equity
|
|
19,653
|
|
9,291
|
Total liabilities and stockholders' equity
|
|
$
28,277
|
|
$
19,251
|
ZYNEX,
INC.
|
CONSOLIDATED
STATEMENTS OF INCOME
|
(in thousands
except per share data)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
December 31,
|
|
For the Years
Ended
December 31,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
NET
REVENUE
|
|
|
|
|
|
|
|
Devices
|
$
3,789
|
|
$
1,750
|
|
$
10,713
|
|
$
6,822
|
Supplies
|
10,373
|
|
7,587
|
|
34,759
|
|
25,095
|
Total net
revenue
|
14,162
|
|
9,337
|
|
45,472
|
|
31,917
|
|
|
|
|
|
|
|
|
COSTS OF REVENUE
AND OPERATING EXPENSES
|
|
|
|
|
|
|
|
Costs of revenue -
devices and supplies
|
2,821
|
|
1,831
|
|
8,814
|
|
6,038
|
Sales and
marketing
|
4,516
|
|
2,148
|
|
14,016
|
|
6,503
|
General and
administrative expense
|
3,094
|
|
2,478
|
|
11,576
|
|
9,006
|
Total costs of
revenue and operating expenses
|
10,431
|
|
6,457
|
|
34,406
|
|
21,547
|
|
|
|
|
|
|
|
|
Income from
operations
|
3,731
|
|
2,880
|
|
11,066
|
|
10,370
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
Deferred
insurance reimbursement
|
-
|
|
-
|
|
880
|
|
0
|
Interest
income/(expense)
|
(6)
|
|
-
|
|
(5)
|
|
(154)
|
Other income
(expense), net
|
(6)
|
|
-
|
|
875
|
|
(154)
|
|
|
|
|
|
|
|
|
Income from
operations before income taxes
|
3,725
|
|
2,880
|
|
11,941
|
|
10,216
|
Income tax
expense
|
778
|
|
258
|
|
2,449
|
|
664
|
Net Income
|
$
2,947
|
|
$
2,622
|
|
$
9,492
|
|
$
9,552
|
|
|
|
|
|
|
|
|
Net income per
share:
|
|
|
|
|
|
|
|
Basic
|
$
0.09
|
|
$
0.08
|
|
$
0.29
|
|
$
0.29
|
Diluted
|
$
0.09
|
|
$
0.08
|
|
$
0.28
|
|
$
0.28
|
|
|
|
|
|
|
|
|
Weighted average
basic shares outstanding
|
32,709
|
|
32,273
|
|
32,439
|
|
32,503
|
Weighted average
diluted shares outstanding
|
34,101
|
|
33,657
|
|
33,963
|
|
34,043
|
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,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Adjusted
EBITDA:
|
|
|
|
|
|
|
|
Net income
|
$
2,947
|
|
$
2,622
|
|
$
9,492
|
|
$
9,552
|
Depreciation and
Amortization
|
60
|
|
62
|
|
253
|
|
189
|
Stock-based
compensation expense
|
264
|
|
178
|
|
820
|
|
370
|
Other
(income)/expense, net
|
4
|
|
-
|
|
(875)
|
|
154
|
Income
tax expense
|
778
|
|
258
|
|
2,449
|
|
664
|
Adjusted
EBITDA
|
$
4,053
|
|
$
3,120
|
|
$
12,139
|
|
$
10,929
|
% of Net
Revenue
|
29%
|
|
33%
|
|
27%
|
|
34%
|
|
* 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