ENGLEWOOD, Colo., Oct. 29, 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 third quarter ended September 30, 2019.
Third Quarter Financial Results Summary:
For the third
quarter, the Company reported net revenue of $11.8 million, a 45% increase over Q3-2018. Gross
margins were 81% in the third quarter of 2019 and net income was
$2.0 million.
Adjusted EBITDA was $2.8 million
in the third quarter of 2019.
The Company generated $1.8 million
of cash from operations during the third quarter of 2019. As of
September 30, 2019, the Company had
working capital of $14.1 million a
92% increase compared to $7.3 million
at December 31, 2018. Cash on hand
was $11.9 million at the end of the
third quarter.
President and CEO Commentary:
Thomas Sandgaard, CEO said: "In the third
quarter we continued our strong growth with revenue of $11.8 million and net income of $2.0 million. Orders grew 95% compared to the
third quarter of 2018 and were 65% higher year to date compared to
2018.
In the third 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. 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."
Fourth Quarter 2019 Guidance:
The estimate range for
the fourth quarter revenue is between $12.3 and $12.8
million with Adjusted EBITDA between $2.3 and $2.8
million as we continue to invest in growing our sales force.
The revenue estimate is approximately 32% to 37% above last year's
fourth quarter revenue of $9.3
million.
Conference Call and Webcast Details:
Tuesday, October 29, 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/1487/32044
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
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. Such forward-looking
statements include those that express plans, anticipation, intent,
contingency, goals, targets or future development and/or otherwise
are not statements of historical fact.
In some cases, you can identify forward-looking statements by
terminology, such as "expects," "anticipates," "intends,"
"estimates," "plans," "believes," "seeks," "may," "should,"
"could," "will," "future," "projects," "strategy," or the negative
of such terms or other similar expressions.
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. Important 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.
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
|
(AMOUNTS IN
THOUSANDS)
|
(unaudited)
|
|
|
|
|
|
|
September
30,
|
|
December
31,
|
|
2019
|
|
2018
|
|
|
|
(as
adjusted)
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash
|
|
$
11,934
|
|
$
10,128
|
Accounts receivable,
net
|
|
4,254
|
|
2,791
|
Inventory,
net
|
|
2,129
|
|
837
|
Prepaid expenses and
other
|
|
321
|
|
568
|
Total current assets
|
|
18,638
|
|
14,324
|
|
|
|
|
|
Property and
equipment, net
|
|
780
|
|
819
|
Operating lease
asset
|
|
4,078
|
|
3,050
|
Financing lease
asset
|
|
195
|
|
19
|
Deposits
|
|
317
|
|
314
|
Long term deferred
income taxes
|
|
716
|
|
725
|
Total assets
|
|
$
24,724
|
|
$
19,251
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts payable and
accrued expenses
|
|
1,945
|
|
1,552
|
Lease liability -
operating leases
|
|
1,045
|
|
671
|
Lease liability -
financing leases
|
|
45
|
|
14
|
Income taxes
payable
|
|
132
|
|
688
|
Dividends
payable
|
|
8
|
|
2,270
|
Accrued payroll and
related taxes
|
|
1,344
|
|
908
|
Deferred insurance
reimbursement
|
|
-
|
|
880
|
Total current liabilities
|
|
4,519
|
|
6,983
|
Long-term
liabilities:
|
|
|
|
|
Lease liability -
operating leases
|
|
3,659
|
|
2,967
|
Lease liability -
financing leases
|
|
154
|
|
10
|
Total liabilities
|
|
8,332
|
|
9,960
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
Common
stock
|
|
34
|
|
34
|
Additional paid-in
capital
|
|
8,884
|
|
8,157
|
Treasury
stock
|
|
(3,846)
|
|
(3,675)
|
Retained
earnings
|
|
11,409
|
|
4,864
|
Total Zynex, Inc. stockholders' equity
|
|
16,481
|
|
9,380
|
Non-controlling interest
|
|
(89)
|
|
(89)
|
Total stockholders' equity
|
|
16,392
|
|
9,291
|
Total liabilities and stockholders' equity
|
|
$
24,724
|
|
$
19,251
|
ZYNEX,
INC.
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(in thousands,
except per share data)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
September 30,
|
|
For the Nine
Months Ended
September 30,
|
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
NET
REVENUE
|
|
|
|
|
|
|
|
|
|
Devices
|
|
$
2,661
|
|
$
1,811
|
|
$
6,924
|
|
$
5,072
|
|
Supplies
|
|
9,156
|
|
6,320
|
|
24,386
|
|
17,508
|
|
Total net
revenue
|
|
11,817
|
|
8,131
|
|
31,310
|
|
22,580
|
|
|
|
|
|
|
|
|
|
|
|
COSTS OF REVENUE
AND OPERATING EXPENSES
|
|
|
|
|
|
|
|
|
|
Costs of revenue -
rental, product & supply
|
|
2,261
|
|
1,641
|
|
5,993
|
|
4,207
|
|
Sales and
marketing
|
|
3,946
|
|
1,591
|
|
9,500
|
|
4,355
|
|
General and
administrative
|
|
3,115
|
|
2,079
|
|
8,482
|
|
6,528
|
|
Total costs of
revenue and operating expenses
|
|
9,322
|
|
5,311
|
|
23,975
|
|
15,090
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
|
2,495
|
|
2,820
|
|
7,335
|
|
7,490
|
|
|
|
|
|
|
|
|
|
|
|
Other
income/(expense)
|
|
|
|
|
|
|
|
|
|
Deferred
insurance reimbursement
|
|
-
|
|
-
|
|
880
|
|
-
|
|
Interest
income/(expense)
|
|
1
|
|
(1)
|
|
1
|
|
(153)
|
|
Other
income/(expense), net
|
|
1
|
|
(1)
|
|
881
|
|
(153)
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations before income taxes
|
|
2,496
|
|
2,819
|
|
8,216
|
|
7,337
|
|
Income tax
expense
|
|
463
|
|
228
|
|
1,671
|
|
407
|
|
Net Income
|
|
$
2,033
|
|
$
2,591
|
|
$
6,545
|
|
$
6,930
|
|
|
|
|
|
|
|
|
|
|
|
Net income per
share:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
0.06
|
|
$
0.08
|
|
$
0.20
|
|
$
0.21
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
$
0.06
|
|
$
0.08
|
|
$
0.19
|
|
$
0.20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
basic shares outstanding
|
|
32,490
|
|
32,521
|
|
32,350
|
|
32,580
|
|
Weighted average
diluted shares outstanding
|
|
34,076
|
|
33,931
|
|
33,917
|
|
34,171
|
|
ZYNEX,
INC.
|
Reconciliation of
GAAP to Non-GAAP Measures
|
(in
thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended September 30,
|
|
For the Nine
Months Ended September 30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Adjusted
EBITDA:
|
|
|
|
|
|
|
|
Net income
|
$
2,033
|
|
$
2,591
|
|
$
6,545
|
|
$
6,930
|
Depreciation and
Amortization
|
50
|
|
59
|
|
192
|
|
127
|
Stock-based
compensation expense
|
259
|
|
76
|
|
556
|
|
192
|
Other
(income)/expense, net
|
-
|
|
1
|
|
(879)
|
|
154
|
Income
tax expense (benefit)
|
463
|
|
228
|
|
1,671
|
|
407
|
Adjusted
EBITDA
|
$
2,805
|
|
$
2,955
|
|
$
8,085
|
|
$
7,810
|
% of Net
Revenue
|
24%
|
|
36%
|
|
26%
|
|
35%
|
|
|
|
|
|
|
|
|
|
|
*
|
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