ENGLEWOOD, Colo., April 28, 2020 /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 first quarter ended March
31, 2020.
First Quarter Financial Results Summary:
For the first quarter, the Company reported net revenue of
$15.2 million, a 66% increase over
the first quarter of 2019. Gross margins were 78% in the first
quarter of 2020 and net income was $2.9
million.
Adjusted EBITDA was $3.0 million
in the first quarter of 2020.
The Company generated $0.6 million
of cash from operations during the first quarter of 2020. As of
March 31, 2020, the Company had
working capital of $19.9 million
compared to $17.4 million at
December 31, 2019. Cash on hand was
$14.6 million at the end of the first
quarter.
President and CEO Commentary:
Thomas Sandgaard, CEO said: "I am
excited to announce our fifteenth consecutive quarter of positive
net income. In the first quarter, we posted revenue of $15.2 million, which is the highest quarterly
revenue in the history of the Company and net income of
$2.9 million. Orders grew 126%
compared to the first quarter of 2019.
We were able to generate $0.6
million in cash from operations despite increasing our
inventory by over $1.0 million. We
are focused on ensuring our patients get pain relief from our
device quickly and therefore we increased our inventory levels to
protect against any supply chain slow-downs due to COVID-19. Our
employees have demonstrated remarkable dedication and have been
rock solid during this crisis making sure we continue to operate
effectively. We can't thank them enough.
In the first quarter, we continued to focus on the execution of
our growth strategy and the related growth of our sales force by
adding 32 sales reps in March and 48 in April. We expect the
addition of new sales reps to have an impact on order and revenue
growth later 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."
Second Quarter and Full Year 2020 Guidance:
The estimated range for second quarter revenue is between
$17.5 and $18.0 million with Adjusted EBITDA between
$3.2 and $3.7
million as we continue to invest in growing our sales force.
The revenue estimate is approximately 70% to 75% above 2019 second
quarter revenue of $10.3 million. We
continue to see the impact of the COVID-19 pandemic, not only on
the availability of physicians to prescribe our products but also
on navigating employee and supply chain issues. Our order volumes
have stabilized and remained steady during the last 3 weeks of
March and through April.
Full year 2020 estimates are unchanged. Revenue is estimated
between $78.0 and $83.0 million with Adjusted EBITDA between
$15.0 and $18.0 million. The full year revenue estimate is
approximately 72% to 83% above 2019 revenue of $45.5 million.
Conference Call and Webcast Details:
Tuesday, April 28,
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/1487/34403
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
available earnings. 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.
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. The Company makes no
express or implied representation or warranty as to the
completeness of forward looking statements or, in the case of
projections, as to their attainability or the accuracy and
completeness of the assumptions from which they are derived.
Factors that could cause actual results to materially differ from
forward-looking statements include, but are not limited to, the
need to obtain 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, the impact of
COVID-19 on the global economy and other risks described in our
filings with the Securities and Exchange Commission including our
Annual Report on Form 10-K for the year ended December 31,
2019 as well as our quarterly reports on Form 10-Q and current
reports on Form 8-K.
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)
|
|
|
|
|
|
|
March
31,
|
|
December
31,
|
|
2020
|
|
2019
|
|
|
|
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash
|
|
$
14,585
|
|
$
14,040
|
Accounts
receivable
|
|
6,549
|
|
5,833
|
Inventory,
net
|
|
3,429
|
|
2,378
|
Prepaid expenses and
other
|
|
1,135
|
|
315
|
Total current assets
|
|
25,698
|
|
22,566
|
|
|
|
|
|
Property and
equipment, net
|
|
1,116
|
|
858
|
Operating lease
asset
|
|
4,980
|
|
3,831
|
Finance lease
asset
|
|
168
|
|
180
|
Deposits
|
|
275
|
|
329
|
Long term deferred
income taxes
|
|
985
|
|
513
|
Total assets
|
|
$
33,222
|
|
$
28,277
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts payable and
accrued expenses
|
|
2,292
|
|
2,141
|
Lease liability -
operating leases
|
|
1,678
|
|
1,211
|
Lease liability -
finance leases
|
|
53
|
|
45
|
Income taxes
payable
|
|
39
|
|
52
|
Accrued payroll and
related taxes
|
|
1,772
|
|
1,748
|
Total current liabilities
|
|
5,834
|
|
5,197
|
Long-term
liabilities:
|
|
|
|
|
Lease liability -
operating leases
|
|
3,954
|
|
3,282
|
Lease liability -
finance leases
|
|
126
|
|
145
|
Total liabilities
|
|
9,914
|
|
8,624
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
Common
stock
|
|
34
|
|
34
|
Additional paid-in
capital
|
|
9,916
|
|
9,198
|
Treasury
stock
|
|
(3,846)
|
|
(3,846)
|
Retained
earnings
|
|
17,293
|
|
14,356
|
Total Zynex, Inc. stockholders' equity
|
|
23,397
|
|
19,742
|
Non-controlling interest
|
|
(89)
|
|
(89)
|
Total stockholders' equity
|
|
23,308
|
|
19,653
|
Total liabilities and stockholders' equity
|
|
$
33,222
|
|
$
28,277
|
ZYNEX,
INC.
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(in thousands,
except per share data)
|
(unaudited)
|
|
|
|
|
|
|
|
|
For the Three
Months Ended March 31,
|
|
|
|
2020
|
|
2019
|
|
NET
REVENUE
|
|
|
|
|
|
Devices
|
|
$
3,444
|
|
$
1,975
|
|
Supplies
|
|
11,784
|
|
7,221
|
|
Total net
revenue
|
|
15,228
|
|
9,196
|
|
|
|
|
|
|
|
COSTS OF REVENUE
AND OPERATING EXPENSES
|
|
|
|
|
|
Costs of revenue -
devices and supplies
|
|
3,401
|
|
1,784
|
|
Sales and
marketing
|
|
5,209
|
|
2,473
|
|
General and
administrative
|
|
4,160
|
|
2,683
|
|
Total costs of
revenue and operating expenses
|
|
12,770
|
|
6,940
|
|
|
|
|
|
|
|
Income from
operations
|
|
2,458
|
|
2,256
|
|
|
|
|
|
|
|
Other
income/(expense)
|
|
|
|
|
|
Deferred
insurance reimbursement
|
|
-
|
|
880
|
|
Interest
expense
|
|
(4)
|
|
-
|
|
Other
income/(expense), net
|
|
(4)
|
|
880
|
|
|
|
|
|
|
|
Income from
operations before income taxes
|
|
2,454
|
|
3,136
|
|
Income tax
(benefit)/expense
|
|
(483)
|
|
786
|
|
Net Income
|
|
$
2,937
|
|
$
2,350
|
|
|
|
|
|
|
|
Net income per
share:
|
|
|
|
|
|
Basic
|
|
$
0.09
|
|
$
0.07
|
|
|
|
|
|
|
|
Diluted
|
|
$
0.09
|
|
$
0.07
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
basic shares outstanding
|
|
32,913
|
|
32,233
|
|
Weighted average
diluted shares outstanding
|
|
34,204
|
|
33,721
|
|
ZYNEX,
INC.
|
Reconciliation of
GAAP to Non-GAAP Measures
|
(in
thousands)
|
(unaudited)
|
|
|
|
|
|
For the Three
Months Ended March 31,
|
|
2020
|
|
2019
|
Adjusted
EBITDA:
|
|
|
|
Net income
|
$
2,937
|
|
$
2,350
|
Depreciation and
Amortization
|
68
|
|
66
|
Stock-based
compensation expense
|
497
|
|
139
|
Interest expense and
other (benefit), net
|
4
|
|
(880)
|
Income tax expense
(benefit)
|
(483)
|
|
786
|
Adjusted
EBITDA
|
$
3,023
|
|
$
2,461
|
% of Net
Revenue
|
20%
|
|
27%
|
|
|
|
|
* 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