- Reports record net sales for second year in a row, generating
$83.6 million in 2023, an increase of 15% over 2022. Net sales for
the fourth quarter of 2023 were $22.1 million, an increase of 14%
over the same period in 2022.
- Reports record net product sales for second year in a row,
generating $79.8 million in 2023, an increase of 15% over 2022. Net
product sales for the fourth quarter of 2023 were $22.1 million, an
increase of 22% over the same period in 2022.
- Reports record gross profit for the second year in a row,
generating $8.7 million in 2023, an increase of 114% over
2022.
- Achieves profitability on an adjusted EBITDA basis in the
fourth quarter of 2023, the first time in the Company's
history.
- Issues 2024 guidance, projecting net product sales to be
between $84 million and $88 million, gross margin to be between 14%
and 16%, and for the Company to be profitable on an adjusted EBITDA
basis for the full-year 2024.
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 and twelve months ended December 31,
2023.
"2023 was a transformative year for Rockwell Medical, making it
the second year in a row that we have provided guidance and met or
exceeded that guidance. We significantly improved Rockwell
Medical's financial health, generated the highest revenue and gross
profit to-date for the Company, and successfully achieved
profitability on an adjusted EBITDA basis in the fourth quarter of
2023, the first time in the Company's history," said Mark Strobeck,
Ph.D., Rockwell Medical’s President and CEO. "Over the last 18
months, we have completed two acquisitions, renegotiated a number
of customer product and supply agreements—securing multi-year
agreements with minimums—expanded our geographic footprint both
domestically and internationally, and significantly improved
efficiencies in our manufacturing processes that are being realized
through improved gross margin. Our focused strategy is having a
direct impact on Rockwell Medical's top and bottom line, which we
project will continue in 2024 and beyond. For us it's personal.
Ensuring Rockwell Medical's long-term viability secures our ability
to manufacture and distribute life-sustaining dialysis solutions
which have a positive impact on the lives of hemodialysis patients
with end-stage kidney disease."
FOURTH QUARTER AND FULL-YEAR 2023 FINANCIAL
HIGHLIGHTS
- Net sales for the three months ended December 31, 2023 were
$22.1 million. This consisted solely of concentrates product sales,
representing the highest quarterly concentrates products sales
generated to-date for the Company, a 15% increase in net sales over
the same period in 2022, and a 22% increase in net product sales
over the same period in 2022. Net sales for the twelve months ended
December 31, 2023 were $83.6 million, representing a 15% increase
over the same period in 2022. Net product sales for the twelve
months ended December 31, 2023 were $79.8 million, representing a
15% increase over net products sales of $69.2 million for the same
period in 2022.
- Gross profit for the three months ended December 31, 2023 was
$2.9 million, representing a 23% increase over $2.3 million for the
same period in 2022. Gross profit for the twelve months ended
December 31, 2023 was $8.7 million, representing a 113% increase
over $4.1 million for the same period in 2022.
- Gross margin for the three months ended December 31, 2023 was
13%, representing an increase from 12% for the same period in 2022.
Gross margin for the twelve months ended December 31, 2023 was 10%,
representing an increase from 6% gross margin for the same period
in 2022.
- Net loss for the three months ended December 31, 2023 was $1.5
million, representing a 36% improvement over a net loss of $2.4
million for the same period in 2022. Net loss was $8.4 million for
the twelve months ended December 31, 2023, representing a 55%
improvement over net loss of $18.7 million for the same period in
2022.
- Adjusted EBITDA for the three months ended December 31, 2023
was $0.5 million, representing a 192% improvement over ($0.6)
million for the same period in 2022. Adjusted EBITDA was ($3.9)
million for the twelve months ended December 31, 2023, representing
a 72% improvement over ($13.8) million for the same period in
2022.
- Cash and cash equivalents and investments available-for-sale at
December 31, 2023 was $10.9 million compared to cash and cash
equivalents and investments available-for-sale of $11.7 million at
September 30, 2023. The decline of $0.8 million included a $1.5
million repayment of our outstanding Loan and Security Agreement
with Innovatus Life Sciences Fund.
- During the fourth quarter of 2023, Rockwell Medical lowered its
outstanding debt from $9.5 million to $8.0 million. Subsequent to
the fourth quarter of 2023, the Company announced that it amended
its Loan and Security Agreement with Innovatus Life Sciences
Lending Fund I, LP. Under the terms of the amendment, Rockwell
Medical reduced the interest rate on the loan and extended the loan
maturity date from March 2025 to January 2029. The Company will now
make interest-only payments for thirty months, or up to thirty-six
months if certain conditions are met.
Three Months Ended December
31,
(In Millions, Except Per Share
Amounts)
2023
2022
Net Sales
$
22.1
$
19.3
Gross Profit
2.9
2.3
Net Income (Loss)
(1.5
)
(2.4
)
Adjusted EBITDA*
0.5
(0.6
)
Basic and Diluted Net Loss per Share
**
$
(0.05
)
$
(0.13
)
Adjusted EPS *
$
0.02
$
(0.03
)
Twelve Months Ended December
31,
(In Millions, Except Per Share
Amounts)
2024 (E)
2023
2022
2021
Net Sales
$
84 - 88
$
83.6
$
72.8
$
61.9
Gross Profit
12 - 14
8.7
4.1
(2.4
)
Net Income (Loss)
n/a
(8.4
)
(18.7
)
(32.7
)
Adjusted EBITDA*
0.0 - 0.5
(3.9
)
(13.8
)
(28.4
)
Basic and Diluted Net Loss per Share
**
n/a
$
(0.36
)
$
(1.31
)
$
(3.83
)
Adjusted EPS *
n/a
$
(0.17
)
$
(0.97
)
$
(3.33
)
* See reconciliation to GAAP financial
measures in the tables below.
** See Note 3 for more details related to
Basic and Diluted Weighted Average Shares Outstanding in our 2023
Form 10-K.
FOURTH QUARTER AND FULL-YEAR 2023 OPERATING
HIGHLIGHTS
- In October 2023, Rockwell Medical named Jesse Neri as Senior
Vice President, Finance. Mr. Neri has more than 20 years’
experience leading finance functions at both public and private
companies.
- In October 2023, Rockwell Medical appointed Joan Lau, Ph.D. to
the Company's Board of Directors. Dr. Lau has more than 20 years’
experience in executive leadership of R&D focused biopharma as
an entrepreneur scientist, CEO, operator, investor, and board
member of public and private biopharmaceutical companies.
- In September 2023, Rockwell Medical entered into an amended and
restated products purchase agreement with its largest customer.
Under the agreement, Rockwell Medical and the customer agreed to an
increase in product pricing, effective September 1, 2023 and
continuing until December 31, 2024, and a one-time payment to
Rockwell Medical on or after December 1, 2023. The customer has the
option to further extend the term through December 31, 2025. In the
event of such an extension, product pricing will be increased for
the extended term.
- In July 2023, Rockwell Medical acquired the hemodialysis
concentrates assets from Evoqua Water Technologies. By assuming
responsibility for Evoqua’s concentrates customer contracts,
Rockwell Medical has further expanded its footprint in the United
States and assumed a larger share of the growing hemodialysis
concentrates market. Additionally, the Company is now the leading
supplier of liquid bicarbonate products to dialysis centers in the
United States.
- In June 2023, Rockwell Medical was added to the Russell
Microcap Index.
- In May 2023, Rockwell Medical expanded its international
footprint for its hemodialysis concentrates products through
several multi-year distribution and user agreements. New
geographies include the United Arab Emirates, Chile, St. Lucia,
Costa Rica, and Grenada. Rockwell has a large and growing
international business and currently sells its hemodialysis
concentrates products in over 30 countries throughout North
America, South America, Asia and Africa.
- Throughout 2023, Rockwell Medical entered into several
multi-year product purchase agreements with new and existing
customers including Centers for Dialysis Care, Concerto Renal
Services, Houston Methodist, Sanderling Renal Services, and the
largest non-profit dialysis provider in the U.S. Additionally,
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.
GUIDANCE
Rockwell projects its 2024 guidance as
follows:
2024 Guidance
Expected Improvement (%) over
2023
Net (Product) Sales
$84.0 million to $88.0 million
5% to 10% increase over $79.8 million in
product sales for 2023
Gross Profit
$12.0 million to $14.0 million
40% to 61% increase over $8.7 million in
gross profit for 2023
Gross Margin
14% to 16%
4 to 6 percentage point increase over 10%
in gross margin for 2023
Adjusted EBITDA
$0 million to $0.5 million
100% to 113% increase over ($3.9) million
in adjusted EBITDA for 2023
Rockwell Medical projects net sales to grow in the mid-to-high
single digits in 2025 and beyond. Rockwell Medical projects gross
margin in 2025 to be approximately 20% and reaching above 25% in
2026 and beyond.
CONFERENCE CALL AND WEBCAST
DETAILS
Date:
Thursday, March 21, 2024
Time:
8:00am ET
Live Number:
(888) 660-6347 // (International) 1 (929)
201-6594
Conference Call ID:
4944610
Webcast and Replay:
www.RockwellMed.com/Results
Speakers:
- Mark Strobeck, Ph.D. — President and Chief Executive Officer;
and
- Jesse Neri — SVP, Finance.
Format:
Discussion of fourth quarter and full-year
2023 financial and operational results followed by Q&A.
NON-GAAP FINANCIAL MEASURES
To supplement Rockwell Medical’s unaudited condensed
consolidated statements of operations and unaudited condensed
consolidated balance sheets, which are prepared in conformity with
generally accepted accounting principles in the United States of
America (“GAAP”), this press release also includes references to
Adjusted EBITDA, a non-GAAP financial measure that is defined as
net income (loss) before net interest income (expense), net other
income (expense), income tax expenses (benefit), depreciation and
amortization, impairment charges, stock-based compensation expense,
and other items that are considered unusual or not representative
of underlying trends of our business, including but not limited to
one-time severance costs, deferred revenue and inventory reserve
amounts, if applicable for the periods presented. The Company has
provided a reconciliation of net loss, the most directly comparable
GAAP financial measure, to Adjusted EBITDA at the end of this press
release.
Adjusted EBITDA is a key measure used by Rockwell Medical to
understand and evaluate operating performance and trends, to
prepare and approve its annual budget and to develop short- and
long-term operating plans. The Company provides Adjusted EBITDA
because it believes the metric is helpful in highlighting trends in
its operating results because it excludes items that are not
indicative of Rockwell Medical’s core operating performance. In
particular, the Company believes that the exclusion of the items
eliminated in calculating Adjusted EBITDA provides useful measures
for period-to-period comparisons of Rockwell Medical’s
business.
Adjusted EBITDA should not be considered in isolation of, or as
an alternative to, measures prepared in accordance with GAAP. Other
companies, including companies in the same industry, may calculate
similarly titled non-GAAP financial measures differently or may use
other measures to evaluate their performance, all of which could
reduce the usefulness of Adjusted EBITDA as a tool for comparison.
There are a number of limitations related to the use of these
non-GAAP financial measures rather than net loss, which is the most
directly comparable financial measure calculated in accordance with
GAAP. When evaluating the Company’s performance, you should
consider Adjusted EBITDA alongside other financial performance
measures, including net loss and other GAAP results. Adjusted
EBITDA is our best proxy for cash burn.
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 largest
supplier of liquid bicarbonate concentrates and the second largest
supplier of acid and dry bicarbonate concentrates for dialysis
patients in the United States and has the vision of becoming the
leading global supplier of all hemodialysis concentrates. Certified
as a Great Place to Work® in 2023 and 2024, Rockwell Medical is
Driven to Deliver Life-Sustaining Dialysis Solutions™. 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. These statements
include (without limitation) statements regarding: the impact of
our strategy on our top and bottom line: growth in the hemodialysis
concentrates market; the growth of our business; guidance for net
sales, gross profit, gross margin and adjusted EBITDA. 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, 2023, 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.
ROCKWELL MEDICAL, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS
(Dollars In Thousands)
December 31,
December 31,
2023
2022
Cash, Cash Equivalents & Investments
available-for-sale
$
10,935
$
21,492
Total Assets
$
52,173
$
46,635
Total Liabilities
$
30,882
$
32,529
Total Stockholders’ Equity
$
21,291
$
14,106
Common Stock Outstanding
29,130,607
12,163,673
Common stock and common stock equivalents*
35,876,028
31,356,373
*Common stock and common stock equivalents: Common stock
29,130,607
12,163,673
Common stock warrants (pre-funded)
-
6,300,000
Common stock and pre-funded stock warrants
29,130,607
18,463,673
Preferred stock converted
1,363,636
1,363,636
Options to purchase common stock
1,328,621
1,206,905
Restricted stock awards
891
891
Restricted stock units
258,885
125,000
Common stock warrants
3,793,388
10,196,268
Total common stock and common stock equivalents
35,876,028
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 December
31, 2023
Three Months Ended December
31, 2022
Twelve Months Ended December
31, 2023
Twelve Months Ended December
31, 2022
Net Sales
$
22,093
$
19,313
$
83,612
$
72,810
Cost of Sales
19,223
16,973
74,908
68,733
Gross Profit (Loss)
2,870
2,340
8,704
4,077
Research and Product Development
168
156
1,107
3,119
Selling and Marketing
541
352
2,125
2,094
General and Administrative
2,708
3,798
12,142
15,643
Operating Loss
(547
)
(1,966
)
(6,670
)
(16,780
)
Other (Expense) Income Realized Gain on Investments
101
-
321
4
Interest Expense
(1,108
)
(439
)
(2,301
)
(1,936
)
Interest Income
42
45
211
35
Total Other Expense
(965
)
(394
)
(1,769
)
(1,897
)
Net Loss
$
(1,512
)
$
(2,360
)
$
(8,439
)
$
(18,678
)
Basic and Diluted Net Loss per Share
$
(0.05
)
$
(0.13
)
$
(0.36
)
$
(1.31
)
Basic and Diluted Weighted Average Shares Outstanding
28,652,164
18,463,673
23,322,915
14,304,512
Reconciliation to GAAP
Financial Measures
(In Thousands, Except Shares
and Per Share Amounts)
Three Months Ended
Twelve Months Ended
December 31
December 31
(in thousands)
2023
2022
2023
2022
2021
Net Loss
$
(1,512
)
$
(2,360
)
$
(8,439
)
$
(18,678
)
$
(32,674
)
Income taxes
—
—
—
—
—
Interest expense
1,108
439
2,301
1,936
2,360
Depreciation and amortization
554
152
1,445
572
664
EBITDA
150
(1,769
)
(4,692
)
(16,170
)
(29,650
)
Severance costs
165
968
942
2,040
331
Stock-based compensation
215
221
933
314
938
Wanbang deferred revenue
-
-
(2,197
)
-
Wanbang inventory reserve
-
-
1,098
-
Adjusted EBITDA
$
531
$
(580
)
$
(3,917
)
$
(13,816
)
$
(28,381
)
Adjusted EPS
$
0.02
$
(0.03
)
$
(0.17
)
$
(0.97
)
$
(3.33
)
Basic and Diluted Weighted Average Shares Outstanding
28,652,164
18,463,673
23,322,915
14,304,512
8,526,186
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240321977041/en/
Heather R. Hunter SVP, Chief Corporate Affairs Officer (248)
432-1362 IR@RockwellMed.com
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