ENGLEWOOD, Colo., July 31, 2019 /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 second quarter ended June
30, 2019.
Second Quarter Financial Results Summary:
For the
second quarter, the Company reported net revenue of $10.3 million, a 36% increase over Q2-2018. Gross
margins were 81% in the second quarter of 2019 and net income was
$2.2 million.
Adjusted EBITDA was $2.8 million
in the second quarter of 2019 and 2018.
The Company generated $2.4 million
of cash from operations during the second quarter of 2019. As of
June 30, 2019, the Company had
working capital of $11.9 million
compared to $7.3 million at
December 31, 2018. Cash on hand was
$10.1 million at the end of the
second quarter.
President and CEO Commentary:
Thomas Sandgaard, CEO, said: "We followed
our strong first quarter with continued growth in the second
quarter with revenue of $10.3 million
and net income of $2.2 million.
Orders grew 65% compared to the second quarter of 2018 and were 48%
higher year to date compared to the first half of 2018.
In the second quarter, we continued to expand 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.
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."
Third Quarter 2019 Guidance:
The estimate range for
third quarter revenue is between $10.7 and $11.2
million with Adjusted EBITDA between $2.4 and $2.9
million as we continue to aggressively invest in growing our
sales force. The revenue estimate is approximately 32% to 38% above
last year's third quarter revenue of $8.1
million.
Conference Call and Webcast Details:
Wednesday, July 31, 2019 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/1487/31127
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
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 is also developing a new blood volume
monitor for use in hospitals and surgery centers. For
additional information, please visit: Zynex.com.
Safe Harbor Statement
Certain statements in this
release are "forward-looking" or projections and as such are
subject to numerous risks and uncertainties. The company makes no
express or implied representation or warranty as to the
completeness of this information or, in the case of projections, as
to their attainability or the accuracy and completeness of the
assumptions from which they are derived. Actual results may vary
significantly from the results expressed or implied in such
statements. 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 as well as Forms 10-Q, 8-K and
8-K/A, press releases and the Company's website.
Contact:
Zynex, Inc.
(303) 703-4906
Investor Relations Contact:
Amato and Partners, LLC
Investor Relations Counsel
admin@amatoandpartners.com
ZYNEX,
INC.
|
CONSOLIDATED
BALANCE SHEETS
|
(AMOUNTS IN
THOUSANDS)
|
(unaudited)
|
|
|
|
|
|
|
June
30,
|
|
December
31,
|
|
2019
|
|
2018
|
|
|
|
(as
adjusted)
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash
|
|
$
10,054
|
|
$
10,128
|
Accounts receivable,
net
|
|
3,540
|
|
2,791
|
Inventory,
net
|
|
1,325
|
|
837
|
Prepaid expenses and
other
|
|
833
|
|
568
|
Total current assets
|
|
15,752
|
|
14,324
|
|
|
|
|
|
Property and
equipment, net
|
|
822
|
|
819
|
Operating lease
asset
|
|
4,323
|
|
3,050
|
Financing lease
asset
|
|
9
|
|
19
|
Deposits
|
|
342
|
|
314
|
Long term deferred
income taxes
|
|
591
|
|
725
|
Total assets
|
|
$
21,839
|
|
$
19,251
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts payable and
accrued expenses
|
|
1,829
|
|
1,552
|
Lease liability -
operating leases
|
|
965
|
|
671
|
Lease liability -
financing leases
|
|
14
|
|
14
|
Income taxes
payable
|
|
-
|
|
688
|
Dividends
payable
|
|
11
|
|
2,270
|
Accrued payroll and
related taxes
|
|
1,009
|
|
908
|
Deferred insurance
reimbursement
|
|
-
|
|
880
|
Total current liabilities
|
|
3,828
|
|
6,983
|
Long-term
liabilities:
|
|
|
|
|
Lease liability -
operating leases
|
|
3,940
|
|
2,967
|
Lease liability -
financing leases
|
|
4
|
|
10
|
Total liabilities
|
|
7,772
|
|
9,960
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
Preferred stock
|
|
-
|
|
-
|
Common stock
|
|
34
|
|
34
|
Additional paid-in capital
|
|
8,592
|
|
8,157
|
Treasury stock
|
|
(3,846)
|
|
(3,675)
|
Accumulated earnings
|
|
9,376
|
|
4,864
|
Total Zynex, Inc. stockholders' equity
|
|
14,156
|
|
9,380
|
Non-controlling interest
|
|
(89)
|
|
(89)
|
Total stockholders' equity
|
|
14,067
|
|
9,291
|
Total liabilities and stockholders' equity
|
|
$
21,839
|
|
$
19,251
|
ZYNEX,
INC.
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(in thousands,
except per share data)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
June 30,
|
|
For the Six Months
Ended
June 30,
|
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
NET
REVENUE
|
|
|
|
|
|
|
|
|
|
Devices
|
|
$
2,288
|
|
$
1,673
|
|
$
4,263
|
|
$
3,261
|
|
Supplies
|
|
8,009
|
|
5,900
|
|
15,230
|
|
11,189
|
|
Total net
revenue
|
|
10,297
|
|
7,573
|
|
19,493
|
|
14,450
|
|
|
|
|
|
|
|
|
|
|
|
COSTS OF REVENUE
AND OPERATING EXPENSES
|
|
|
|
|
|
|
|
|
|
Costs of revenue -
rental, product & supply
|
|
1,948
|
|
1,330
|
|
3,732
|
|
2,566
|
|
Sales and
marketing
|
|
3,081
|
|
1,457
|
|
5,554
|
|
2,763
|
|
General and
administrative
|
|
2,684
|
|
2,071
|
|
5,367
|
|
4,450
|
|
Total costs of
revenue and operating expenses
|
|
7,713
|
|
4,858
|
|
14,653
|
|
9,779
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
|
2,584
|
|
2,715
|
|
4,840
|
|
4,671
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
|
|
Deferred
insurance reimbursement
|
|
-
|
|
-
|
|
880
|
|
-
|
|
Interest
expense
|
|
-
|
|
(37)
|
|
-
|
|
(153)
|
|
Other income
(expense), net
|
|
-
|
|
(37)
|
|
880
|
|
(153)
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations before income taxes
|
|
2,584
|
|
2,678
|
|
5,720
|
|
4,518
|
|
Income tax
expense
|
|
422
|
|
260
|
|
1,208
|
|
179
|
|
Net Income
|
|
$
2,162
|
|
$
2,418
|
|
$
4,512
|
|
$
4,339
|
|
|
|
|
|
|
|
|
|
|
|
Net income per
share:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
0.07
|
|
$
0.07
|
|
$
0.14
|
|
$
0.13
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
$
0.06
|
|
$
0.07
|
|
$
0.13
|
|
$
0.13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
basic shares outstanding
|
|
32,326
|
|
32,620
|
|
32,279
|
|
32,610
|
|
Weighted average
diluted shares outstanding
|
|
33,953
|
|
34,169
|
|
33,837
|
|
34,291
|
|
ZYNEX,
INC.
|
Reconciliation of
GAAP to Non-GAAP Measures
|
(in
thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended June 30,
|
|
For the Six Months
Ended June 30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
|
Net income
|
$
2,162
|
|
$
2,418
|
|
$
4,512
|
|
$
4,339
|
Depreciation and
Amortization
|
76
|
|
42
|
|
142
|
|
68
|
Stock-based
compensation expense
|
158
|
|
53
|
|
297
|
|
116
|
Other
(income)/expense, net
|
-
|
|
37
|
|
(879)
|
|
153
|
Income
tax expense (benefit)
|
422
|
|
260
|
|
1,208
|
|
179
|
Adjusted
EBITDA
|
$
2,818
|
|
$
2,810
|
|
$
5,280
|
|
$
4,855
|
% of Net
Revenue
|
27%
|
|
37%
|
|
27%
|
|
34%
|
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SOURCE Zynex, Inc.