- Achieved fourth consecutive quarter of revenue growth with
new high of $19.7 million, representing a 22.4% increase over the
same period in 2022
- Achieved $2.6 million in gross profit, representing a 425%
increase over the same period in 2022
- Continued to reduce expenses and improve earnings per share
with focus on driving enhanced business performance
- Entered into several new long-term supply, product purchase,
and distribution agreements
- Reiterates 2023 guidance of revenue between $78.0 million
and $82.0 million and gross profit between $7.0 million and $9.0
million
Rockwell Medical, Inc. (the "Company") (Nasdaq: RMTI), a
healthcare company that develops, manufactures, commercializes, and
distributes a portfolio of hemodialysis products to dialysis
providers worldwide, today announced financial and operational
results for the three months ended March 31, 2023.
"Last year, we presented a new strategy and business plan for
Rockwell that focused on enhancing our revenue-generating
businesses, pausing our capital-intensive businesses, improving our
financial condition, de-levering the Company, and driving us to
profitability in 2024," said Mark Strobeck, Ph.D., Rockwell
Medical’s President and CEO. "Our results for the first quarter of
2023, and the announcements we've subsequently made in the second
quarter, continue to demonstrate that we are making significant
progress towards these goals and objectives. We are putting
Rockwell in a better position to drive growth and further improve
our performance so that we can benefit more patients around the
world."
First Quarter 2023 Financial Highlights
- Revenue for the three months ended March 31, 2023 was $19.7
million, which represents a 22.4% increase over $16.1 million for
the same period in 2022 and an increase over the fourth quarter of
2022.
- Gross profit for the three months ended March 31, 2023 was $2.6
million, a 425% increase year-over-year compared with gross loss of
$0.8 million for the same period in 2022.
- Rockwell continued to reduce its operating expenses over the
first quarter 2023 by focusing on enhanced business performance and
more efficient manufacturing processes. For the three months ended
March 31, 2023, operating loss was $1.4 million compared to $6.6
million for the same period in 2022 and an improvement over the
fourth quarter of 2022.
- For the three months ended March 31, 2023, Rockwell's net loss
was $1.75 million, or $0.10* per share, compared with a net loss of
$7.2 million, or $0.84 per share for the same period in 2022 and an
improvement over the fourth quarter of 2022.
- Cash and cash equivalents at March 31, 2023 was $16.8 million
compared to cash and cash equivalents of $21.5 million at December
31, 2022. The variance was largely driven by fees associated with
the reacquisition of Rockwell's distribution rights from Baxter,
one-time severance payments, and fees associated with terminating a
supply agreement.
Financial Highlights
Three Months Ended March
31
(In Thousands, Except Per Share
Amounts)
2023
2022
Net Sales
$
19,668
$
16,124
Gross Profit (Loss)
$
2,599
$
(786
)
Operating Loss
$
(1,427
)
$
(6,626
)
Net Loss
$
(1,750
)
$
(7,162
)
Basic and Diluted Net Loss per
Share
$ (0.10)*
$
(0.84
)
* Basic and Diluted Net Loss per Share
includes 5,911,000 of shares of common stock issuable upon the
exercise of the pre-funded warrants in the weighted average shares
of common stock outstanding for the three months ended March 31,
2023. For more details, see Note 3 on Form 10-Q filed May 15,
2023.
First Quarter 2023 Operating Highlights
- Effective January 1, 2023, Rockwell assumed 100% commercial
responsibility for Baxter's customers which were previously
serviced under the exclusive distribution agreement that was
terminated subsequent to the acquisition of this business in the
fourth quarter of 2022. Rockwell is actively working with customers
to establish long-term supply agreements with optimal pricing and
contractual minimums. The majority of Baxter customers have
transitioned successfully over to the Rockwell platform and are
actively buying products. Rockwell has already begun to experience
the benefits of these changes and expects to realize the full
impact of these actions during the second quarter of 2023 and
beyond.
- In February 2023, we announced two long-term,
multi-million-dollar supply and product purchase agreements that
strengthen our revenue base over the next several years and grow
our hemodialysis concentrates business. The first arrangement is
with the largest non-profit dialysis provider in the United States.
The second is with Concerto Renal Services, the largest provider of
dialysis in skilled nursing facilities in the United States.
- Additionally, during the first quarter of 2023, Rockwell
established new non-exclusive distribution services agreements with
Cardinal Health and Medline Industries for distribution of
Rockwell's hemodialysis concentrates products throughout the United
States.
- Rockwell continues to evaluate potential business development
opportunities to strengthen the Company's existing hemodialysis
concentrates business and potentially expand into new product
categories and markets.
- Rockwell was certified as a Great Place to Work in the United
States. Great Place to Work® is the global authority on workplace
culture, employee experience, and the leadership behaviors proven
to deliver market-leading revenue, employee retention and increased
innovation.
CONFERENCE CALL AND WEBCAST DETAILS
Date: Monday, May 15, 2023
Time: 8:00am ET
Webcast:
www.RockwellMed.com/Results
Live Number: (888) 660-6347 //
(International) 1 (929) 201-6594
Replay Number: (800) 770-2030 //
(International) 1 (647) 362-9199
A replay will be available via the replay
number and webcast through June 14, 2023.
Access Code: 4944610
Speakers:
- Mark Strobeck, Ph.D. — President and Chief Executive Officer;
and
- Paul McGarry, CPA — SVP, Finance and Chief Accounting
Officer.
Format: Discussion of first quarter
2023 operational and financial results followed by Q&A.
About Rockwell Medical
Rockwell Medical, Inc. (Nasdaq: RMTI) is a healthcare company
that develops, manufactures, commercializes, and distributes a
portfolio of hemodialysis products for dialysis providers
worldwide. Rockwell Medical's mission is to provide dialysis
clinics and the patients they serve with the highest quality
products supported by the best customer service in the industry.
Rockwell is focused on innovative, long-term growth strategies that
enhance its products, its processes, and its people, enabling the
Company to deliver exceptional value to the healthcare system and
provide a positive impact on the lives of hemodialysis patients.
Hemodialysis is the most common form of end-stage kidney disease
treatment and is usually performed at freestanding outpatient
dialysis centers, at hospital-based outpatient centers, at skilled
nursing facilities, or in a patient’s home. Rockwell Medical's
products are vital to vulnerable patients with end-stage kidney
disease, and the Company is relentless in providing unmatched
reliability and customer service. Rockwell Medical is the second
largest supplier of acid and bicarbonate concentrates for dialysis
patients in the United States and has the vision of becoming the
leading global supplier of hemodialysis concentrates. Certified as
a Great Place to Work® in 2023, Rockwell Medical is Driven to
Deliver Life-Sustaining Dialysis SolutionsTM. For more information,
visit www.RockwellMed.com.
Forward-Looking Statements
Certain statements in this press release may constitute
"forward-looking statements" within the meaning of the federal
securities laws. Words such as, "may," "might," "will," "should,"
"believe," "expect," "anticipate," "estimate," "continue," "could,"
"can," "would," "develop," "plan," "potential," "predict,"
"forecast," "project," "intend," "look forward to," "remain
confident," “guidance,” or the negative of these terms, and similar
expressions, or statements regarding intent, belief, or current
expectations, are forward looking statements. There can be no
assurance that: Rockwell Medical will grow its hemodialysis
concentrates business and further improve its performance; Rockwell
Medical will be able to enhance the economics in its current
customer agreements; Rockwell Medical will add new long-term supply
agreements with new customers and will transition Baxter customers;
Rockwell Medical will achieve its projected total revenue and gross
profit for 2023; Rockwell Medical will be able to achieve planned
cost savings to operate its concentrates business profitability or
achieve the other components of its strategy; Rockwell Medical will
achieve profitability in 2024; Rockwell Medical will expand into
new product categories and markets; Rockwell Medical will be
successful in evaluating potential business development
opportunities; that Rockwell Medical will realize benefits from the
Baxter transition; or Rockwell Medical’s future cash balance will
be sufficient to fund operations going forward. While Rockwell
Medical believes these forward-looking statements are reasonable,
undue reliance should not be placed on any such forward-looking
statements, which are based on information available to us on the
date of this release. These forward-looking statements are based
upon current estimates and assumptions and are subject to various
risks and uncertainties (including, without limitation, those set
forth in Rockwell Medical's SEC filings), many of which are beyond
our control and subject to change. Actual results could be
materially different. Risks and uncertainties include but are not
limited to those risks more fully discussed in the "Risk Factors"
section of our Annual Report on Form 10-K for the year ended
December 31, 2022, as such description may be amended or updated in
any subsequent reports filed with the SEC. Rockwell Medical
expressly disclaims any obligation to update our forward-looking
statements, except as may be required by law.
Financial Tables Follow
ROCKWELL MEDICAL, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS
(Dollars In Thousands)
March 31,
December 31,
2023
2022
(Unaudited)
Cash and Cash Equivalents
$
16,834
$
21,492
Total Assets
$
40,472
$
46,635
Total Liabilities
$
27,930
$
32,529
Total Stockholders’ Equity
$
12,542
$
14,106
Common Stock Outstanding
12,552,673
12,163,673
Common stock and common stock
equivalents*
31,343,670
31,356,373
*Common stock and common stock
equivalents:
Common stock
12,552,673
12,163,673
Common stock warrants (pre-funded)
5,911,000
6,300,000
Common stock and pre-funded stock
warrants
18,463,673
18,463,673
Preferred stock converted
1,363,636
1,363,636
Options to purchase common stock
1,194,202
1,206,905
Restricted stock awards
891
891
Restricted stock units
125,000
125,000
Common stock warrants
10,196,268
10,196,268
Total common stock and common stock
equivalents
31,343,670
31,356,373
ROCKWELL MEDICAL, INC. AND
SUBSIDIARIES
UNAUDITED CONDENSED
CONSOLIDATED STATEMENT OF OPERATIONS
(In Thousands, Except Shares
and Per Share Amounts)
Three Months Ended March 31,
2023
Three Months Ended March 31,
2022
Net Sales
$
19,668
$
16,124
Cost of Sales
17,069
16,910
Gross Profit (Loss)
2,599
(786
)
Research and Product Development
278
1,567
Selling and Marketing
498
455
General and Administrative
3,250
3,818
Operating Loss
(1,427
)
(6,626
)
Other (Expense) Income
Realized Gain on Investments
—
4
Interest Expense
(387
)
(540
)
Interest Income
64
—
Total Other Expense
(323
)
(536
)
Net Loss
$
(1,750
)
$
(7,162
)
Basic and Diluted Net Loss per
Share
$
(0.10
)
$
(0.84
)
Basic and Diluted Weighted Average
Shares Outstanding
18,359,940
8,544,225
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230515005248/en/
Heather R. Hunter SVP, Chief Corporate Affairs Officer (248)
432-1362 IR@RockwellMed.com
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