IRADIMED CORPORATION (the "Company") (NASDAQ: IRMD) announced today
its financial results for the fourth quarter and year ended
December 31, 2022. The Company also announced that its Board of
Directors approved a special cash dividend of $1.05 per share on
the Company's outstanding common stock. This special cash dividend
is payable on February 21, 2023, to shareholders of record at the
close of business on February 13, 2023. The Company is a leader in
the development of innovative magnetic resonance imaging ("MRI")
medical devices and the only known provider of a non-magnetic
intravenous ("IV") infusion pump system and non-magnetic patient
vital signs monitoring systems that are designed for use during MRI
procedures.
"Iradimed continues a sixth consecutive quarter of reaching
record revenue. It’s very rewarding to be part of such growth and
witness continued strength in our operating performance, as
evidenced once more by our recent fourth quarter and year-ended
December 31, 2022, results. Such a performance also allows us to
again return value to our shareholders through a special cash
dividend. We ended the year on December 31, 2022, with $57.9
million in cash and cash equivalents on our balance sheet and no
debt. We believe our remaining cash, after the dividend payout, and
future cash flows remain sufficient to fund our operations and
investments for our planned growth. Our position in the market
grows stronger each quarter, a trend we see continuing. We will
continue to operate our business with the same focus on top-line
growth and increasing profits as stated in our financial guidance
provided earlier this year,” said Roger Susi, President, Chief
Executive Officer, and Chairman of the Company's Board of
Directors.
The declaration and payment of any future dividend will remain
at the full discretion of the Company’s Board of Directors and will
depend upon the Company’s financial position, results of
operations, cash flows, capital requirements, business conditions,
future expectations, the requirements of applicable law, and other
factors that the Company’s Board of Directors finds relevant at the
time of considering a dividend declaration.
Three Months Ended December 31,
2022
For the fourth quarter ended December 31, 2022, the Company
reported revenue of $14.9 million compared to $11.9 million for the
fourth quarter of 2021. Net income was $3.7 million, or $0.29 per
diluted share, compared to $3.9 million, or $0.31 per diluted
share, for the fourth quarter of 2021. The decrease in net income
and diluted earnings per share is primarily the result of a $1.8
million increase in income taxes due to a change in the effective
tax rate for the fourth quarter of 2022.
Non-GAAP net income was $4.0 million for the quarter ended
December 31, 2022, which excludes $0.3 million of stock
compensation expense, net of tax expense. Non-GAAP net income was
$4.2 million for the quarter ended December 31, 2021, which
excludes $0.3 million of stock compensation expense, net of tax
expense.
Twelve Months
Ended December
31, 2022
For the twelve months ended December 31, 2022, the Company
reported revenue of $53.3 million compared to $41.8 million for the
same period in 2021. Net income was $12.8 million, or $1.02 per
diluted share, compared to $9.3 million, or $0.74 per diluted
share, for the same period in 2021. The increase in net income and
diluted earnings per share is primarily the result of a $11.5
million increase in revenue for the twelve months ended December
31, 2022.
Non-GAAP net income was $12.8 million for the twelve months
ended December 31, 2022, which excludes $1.0 million of stock
compensation expense, net of tax expense. Non-GAAP net income was
$9.3 million for the twelve months ended December 31, 2021, which
excludes $1.1 million of stock compensation expense, net of tax
expense. Non-GAAP earnings per diluted share were $1.10 for the
twelve months ended December 31, 2022, compared to $0.83 for the
same period in 2021.
Revenue Information:
|
Three Months EndedDecember 31, |
Twelve Months EndedDecember 31, |
|
2022 |
2021 |
2022 |
2021 |
Devices: |
|
|
|
|
|
|
|
|
MRI Compatible IV Infusion Pump Systems |
$ |
3,524,527 |
|
$ |
3,959,881 |
|
$ |
14,526,017 |
|
$ |
13,289,063 |
|
MRI Compatible Patient Vital Signs Monitoring Systems |
|
6,086,305 |
|
|
4,020,107 |
|
|
21,721,720 |
|
|
13,781,098 |
|
Ferro Magnetic Detection Systems |
|
194,130 |
|
|
- |
|
|
257,112 |
|
|
- |
|
Total Devices revenues |
|
9,804,962 |
|
|
7,979,988 |
|
|
36,504,849 |
|
|
27,070,161 |
|
Disposables, services and
others |
|
4,463,404 |
|
|
3,385,515 |
|
|
14,622,327 |
|
|
12,797,606 |
|
Amortization of extended
warranty agreements |
|
595,227 |
|
|
507,358 |
|
|
2,175,969 |
|
|
1,946,814 |
|
Total revenues |
$ |
14,863,593 |
|
$ |
11,872,862 |
|
$ |
53,303,145 |
|
$ |
41,814,581 |
|
For the fourth quarter of 2022, domestic sales were 82.39
percent of total revenue, compared to 79.7 percent for the fourth
quarter of 2021. The gross profit margin was 75.5 percent for the
fourth quarter of 2022, compared to 77.9 percent for the fourth
quarter of 2021.
For the twelve months ended December 31, 2022, domestic sales
were 82.3 percent of total revenue, compared to 80.3 percent for
the same period in 2021. The gross profit margin was 77.4 percent
for the year ended 2022, compared to 76.6 percent for the same
period in 2021.
Cash Flow:
For the three months ended December 31, 2022, cash from
operations was $3.0 million, compared to $3.4 million for the same
period in 2021.
For the twelve months ended December 31, 2022, cash from
operations was $10.0 million, compared to $11.3 million for the
same period in 2021.
Financial Guidance:
For the full year 2023, the Company expects to report revenue of
$61 million to $63 million, GAAP diluted earnings per share of
$1.10 to $1.20, and non-GAAP diluted earnings per share of $1.23 to
$1.34.
For the first quarter of 2023, the Company expects to report
revenue of $14.6 million to $14.9 million, GAAP diluted earnings
per share of $0.23 to $0.25, and non-GAAP diluted earnings per
share of $0.26 to $0.28.
The Company’s non-GAAP diluted earnings per share guidance
excludes stock-based compensation expense, net of tax, which the
Company expects to be approximately $1.7 million and $0.4 million
for the full year and first quarter 2023, respectively.
Use of
non-GAAP Financial
Measures
The Company believes that using non-GAAP net
income, free cash flow, and infrequent income tax items is helpful
to our investors. These measures, which we refer to as our non-GAAP
financial measures, are not prepared in accordance with U.S.
GAAP.
We calculate non-GAAP net income as net income excluding (1)
stock-based compensation expense and net of tax. Because of varying
available valuation methodologies, subjective assumptions, and the
variety of equity instruments that can impact a company's non-cash
expenses, we believe that providing non-GAAP financial measures
that exclude stock-based compensation expense allows for meaningful
comparisons between our operating results from period to period;
(2) operating expenses, net of tax, that we believe are not
indicative of the Company's on-going core operating performance,
and; (3) infrequent tax items are considered based on their nature
and are excluded from the provision for income taxes as these costs
or benefits are not indicative of our normal or future provision
for income taxes. We calculate free cash flow as net cash provided
by operating activities, less net cash used in investing activities
for purchases of property and equipment.
We consider free cash flow to be a liquidity measure that
provides useful information to management and investors about the
amount of cash generated by our business that can be used for
strategic opportunities, including investing in our business,
making strategic acquisitions, strengthening our balance sheet and
returning cash to our shareholders through various means.
Our non-GAAP financial measures are important tools for
financial and operational decision-making and evaluating our
ongoing core operating results.
A reconciliation of the non-GAAP financial measures used in this
release to the most comparable U.S. GAAP measures for the
respective periods can be found in the table later in this release.
These non-GAAP financial
measures should not be considered
in isolation or
as a substitute
for a measure
of the Company's
operating performance or
liquidity prepared in accordance with U.S. GAAP and are not
indicative of net income or cash provided by operating
activities.
Conference Call
IRadimed has scheduled a conference call to discuss this
announcement beginning at 11:00 a.m. Eastern Time Thursday,
February 2, 2023. Individuals interested in participating in the
conference call may do so by registering here,
https://register.vevent.com/register/BIf5d19937b47e482a9911d79a50a0a05b
Once registered, the participant will be provided a dial-in
number, unique pin, and instructions.
The conference call will also be available in real-time via the
internet at http://www.iradimed.com/en-us/investors/events/. A
recording of the call will be available on the Company's website
following the call’s completion.
About
IRADIMED
CORPORATION
IRADIMED CORPORATION is a leader in developing innovative
Magnetic Resonance Imaging ("MRI") compatible medical devices. We
develop, manufacture, market, and distribute MRI-compatible medical
devices and accessories, disposables, and services relating to
them.
We are the only known provider of a non-magnetic intravenous
("IV") infusion pump system specifically designed to be safe during
MRI procedures. We were the first to develop an infusion delivery
system that largely eliminates many dangers and problems during MRI
procedures. Standard infusion pumps contain magnetic and electronic
components which can create radio frequency interference and are
dangerous to operate in the presence of the powerful magnet that
drives an MRI system. Our patented MRidium® MRI compatible IV
infusion pump system has been designed with a non-magnetic
ultrasonic motor, uniquely designed non-ferrous parts, and other
special features to safely and predictably deliver anesthesia and
other IV fluids during various MRI procedures. Our pump solution
provides a seamless approach that enables accurate, safe, and
dependable fluid delivery before, during, and after an MRI scan,
which is important to critically ill patients who cannot be removed
from their vital medications and children and infants who must
generally be sedated to remain immobile during an MRI scan.
Our 3880 MRI-compatible patient vital signs monitoring system
has been designed with non-magnetic components and other special
features to safely and accurately monitor a patient's vital signs
during various MRI procedures. The IRADIMED 3880 system operates
dependably in magnetic fields up to 30,000 gauss, which means it
can operate virtually anywhere in the MRI scanner room. The
IRADIMED 3880 has a compact, lightweight design allowing it to
travel with the patient from their critical care unit to the MRI
and back, resulting in increased patient safety through
uninterrupted vital signs monitoring and decreasing the amount of
time critically ill patients are away from critical care units. The
features of the IRADIMED 3880 include wireless ECG with dynamic
gradient filtering; wireless SpO2 using Masimo® algorithms;
non-magnetic respiratory CO2; invasive and non-invasive blood
pressure; patient temperature, and; optional advanced multi-gas
anesthetic agent unit featuring continuous Minimum Alveolar
Concentration measurements. The IRADIMED 3880 MRI-compatible
patient vital signs monitoring system has an easy-to-use design and
effectively communicates patient vital signs information to
clinicians.
For more information, please visit www.iradimed.com.
Forward-Looking Statements
This press release contains forward-looking statements (i.e.,
statements that are not historical facts). Readers are cautioned
not to place undue reliance on forward-looking statements, which
speak only as of the date that they are made, and which reflect
management's current estimates, projections, expectations or
beliefs and which involve risks and uncertainties that could cause
actual results and outcomes to be materially different. Risks and
uncertainties that may affect the future results of the company
include, but are not limited to, impacts of the COVID-19 pandemic,
including the impact of existing and new variants, and measures
taken in response; potential disruptions in our limited supply
chain for our products; the Company's ability to receive FDA 510(k)
clearance for new products and product candidates; unexpected
costs, delays or diversion of management's attention associated
with the design, manufacture or sale of new products; the Company's
ability to implement successful sales techniques for existing and
future products and evaluate the effectiveness of its sales
techniques; additional actions, warnings or requests from the FDA
or other regulatory bodies; our significant reliance on a limited
number of products; a reduction in international distribution;
actions of the FDA or other regulatory bodies that could delay,
limit or suspend product development, manufacturing or sales; the
effect of recalls, patient adverse events or deaths on our
business; difficulties or delays in the development, production,
manufacturing and marketing of new or existing products and
services; changes in laws and regulations or in the interpretation
or application of laws or regulations. Further information on these
and other factors that could affect the Company's financial results
is included in filings we make with the Securities and Exchange
Commission from time to time. All forward-looking statements are
based on information available to us on the date hereof, and we
assume no obligation to update forward-looking statements.
IRADIMED CORPORATIONCONDENSED
BALANCE SHEETS
IRadimed
CorporationCondensed Balance Sheet |
December 31,2022 |
December 31,2021 |
|
(unaudited) |
|
ASSETS |
|
|
Current assets: |
|
|
Cash and cash equivalents |
$ |
57,960,864 |
|
$ |
61,999,550 |
|
Total current assets |
$ |
78,189,452 |
|
$ |
76,244,957 |
|
Property and equipment, net |
|
2,399,811 |
|
|
2,069,376 |
|
Total assets |
$ |
85,512,661 |
|
$ |
82,881,422 |
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY |
|
|
Current liabilities: |
|
|
Deferred revenue |
|
3,373,122 |
|
|
2,553,096 |
|
Total current liabilities |
$ |
8,553,743 |
|
$ |
6,822,757 |
|
Total liabilities |
$ |
11,840,760 |
|
$ |
10,707,616 |
|
Stockholders'
equity: |
|
|
Total stockholders' equity |
$ |
73,671,901 |
|
$ |
72,173,806 |
|
Total liabilities and stockholders'
equity |
$ |
85,512,661 |
|
$ |
82,881,422 |
|
IRADIMED CORPORATIONCONDENSED
STATEMENTS OF
OPERATIONS(Unaudited)
|
Three Months
EndedDecember 31, |
Twelve Months
EndedDecember 31, |
|
2022 |
2021 |
|
2022 |
2021 |
Revenue |
$ |
14,863,594 |
|
$ |
11,872,860 |
|
$ |
53,303,145 |
|
$ |
41,814,581 |
Cost of
revenue |
|
3,643,216 |
|
|
2,623,109 |
|
|
12,020,742 |
|
|
9,764,656 |
Gross profit |
|
11,220,378 |
|
|
9,249,751 |
|
|
41,282,403 |
|
|
32,049,925 |
Operating
expenses: |
|
|
|
|
General and administrative |
|
2,699,496 |
|
|
2,524,200 |
|
|
10,697,067 |
|
|
9,771,462 |
Sales and marketing |
|
3,662,292 |
|
|
3,121,135 |
|
|
12,679,610 |
|
|
10,555,738 |
Research and development |
|
604,744 |
|
|
494,851 |
|
|
2,278,081 |
|
|
1,905,043 |
Total operating expenses |
|
6,966,532 |
|
|
6,140,186 |
|
|
25,654,758 |
|
|
22,232,243 |
Income from operations |
|
4,253,846 |
|
|
3,109,565 |
|
|
15,627,645 |
|
|
9,817,682 |
Other
income, net |
|
449,733 |
|
|
3,930 |
|
|
553,104 |
|
|
18,605 |
Income before income taxes |
|
4,703,579 |
|
|
3,113,495 |
|
|
16,180,749 |
|
|
9,836,287 |
Provision
(benefit) for income tax expense |
|
1,031,047 |
|
|
(779,172 |
) |
|
3,353,348 |
|
|
510,816 |
Net
income |
$ |
3,672,532 |
|
$ |
3,892,667 |
|
$ |
12,827,401 |
|
$ |
9,325,471 |
|
|
|
|
|
Net income
per share |
|
|
|
|
Basic |
$ |
0.29 |
|
$ |
0.31 |
|
$ |
1.02 |
|
$ |
0.76 |
Diluted |
$ |
0.29 |
|
$ |
0.31 |
|
$ |
1.02 |
|
$ |
0.74 |
WASO |
|
|
|
|
Basic |
|
12,572,919 |
|
|
12,428,361 |
|
|
12,562,856 |
|
|
12,346,173 |
Diluted |
|
12,626,724 |
|
|
12,632,601 |
|
|
12,635,971 |
|
|
12,590,853 |
IRADIMED
CORPORATIONRECONCILIATION OF
NON-GAAP FINANCIAL
MEASURES
(UNAUDITED)
Non-GAAP Net
Income and
Diluted EPS
|
Three Months EndedDecember 31, |
Twelve Months EndedDecember 31, |
|
|
2022 |
2021 |
2022 |
2021 |
Net income |
$ |
3,672,532 |
|
$ |
3,892,667 |
|
$ |
12,827,401 |
|
$ |
9,325,471 |
|
Excluding: |
|
|
|
|
Stock-based comp.exp., net of taxes |
|
320,343 |
|
|
295,785 |
|
|
1,046,974 |
|
|
1,101,783 |
|
Non-GAAP net
income |
$ |
3,992,875 |
|
$ |
4,188,452 |
|
$ |
13,874,375 |
|
$ |
10,427,254 |
|
Weighted-average shares outstanding - diluted |
|
12,626,724 |
|
|
12,632,601 |
|
|
12,635,971 |
|
|
12,590,853 |
|
Non-GAAP net
income per share - diluted |
$ |
0.32 |
|
$ |
0.33 |
|
$ |
1.10 |
|
$ |
0.83 |
|
|
|
|
|
|
Free Cash
Flow
|
Three Months EndedDecember 31, |
Twelve Months EndedDecember 31, |
|
|
2022 |
2021 |
2022 |
2021 |
Net cash provided by operating activities |
$ |
3,038,846 |
|
$ |
3,366,043 |
|
$ |
10,042,711 |
|
$ |
11,258,156 |
|
Less: |
|
|
|
|
Capital Expenditures |
|
471,676 |
|
|
180,222 |
|
|
1,874,997 |
|
|
741,759 |
|
Free cash flow |
$ |
2,567,170 |
|
$ |
3,185,821 |
|
$ |
8,167,714 |
|
$ |
10,516,397 |
|
|
|
|
|
|
Media Contact:John Glenn Chief Financial OfficeriRadimed
Corporation(407) 677-8022InvestorRelations@iradimed.com
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