ENGLEWOOD, Colo., July 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 second quarter ended June
30, 2020.
Second Quarter Financial Results Summary:
For the second quarter, the Company reported net revenue of
$19.3 million, an 87% increase over
the second quarter of 2019. Gross margins were 79% in the second
quarter of 2020 and net income was $3.0
million.
Adjusted EBITDA was $4.8 million
in the second quarter of 2020.
The Company generated $2.7 million
of cash from operations during the second quarter of 2020. As of
June 30, 2020, the Company had
working capital of $23.8 million
compared to $17.4 million at
December 31, 2019. Cash on hand was
$16.9 million at the end of the
second quarter.
President and CEO Commentary:
Thomas Sandgaard, CEO said: "I am
excited to announce our sixteenth consecutive quarter of positive
net income. In the second quarter, we posted revenue of
$19.3 million, which is the highest
quarterly revenue in the history of the Company and net income of
$3.0 million. Orders grew 37%
compared to the second quarter of 2019.
Similar to most companies we have seen 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 continued order growth during this pandemic shows
the strength of relationships our sales force has with many
prescribers and the need for them to prescribe non-opioid,
non-addictive prescription strength solutions for their patients in
pain.
In the second quarter, we continued to focus on the execution of
our growth strategy and the related growth of our sales force as we
eclipsed 300 sales reps. 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."
Third Quarter and Full Year 2020 Guidance:
The estimated range for third quarter revenue is between
$22.3 and $22.8 million with Adjusted EBITDA between
$2.3 and $2.8
million. The revenue estimate is approximately 89% to 93%
above 2019 third quarter revenue of $11.8
million. Third quarter revenue and Adjusted EBITDA estimates
are impacted by lower than normal order growth in the second
quarter of 2020 due to COVID-19 and our continued investment in
growing our sales force.
Full year 2020 estimates are unchanged. Revenue is estimated
between $80.0 and $85.0 million with Adjusted EBITDA between
$15.0 and $18.0 million. The full year revenue estimate is
approximately 76% to 87% above 2019 revenue of $45.5 million.
Conference Call and Webcast Details:
Tuesday, July 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/1487/36138
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)
|
|
|
|
|
|
|
June
30,
|
|
December
31,
|
|
2020
|
|
2019
|
|
|
|
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash
|
|
$
16,916
|
|
$
14,040
|
Accounts
receivable
|
|
7,264
|
|
5,833
|
Inventory,
net
|
|
4,707
|
|
2,378
|
Income taxes
receivable
|
|
142
|
|
-
|
Prepaid expenses and
other
|
|
804
|
|
315
|
Total current assets
|
|
29,833
|
|
22,566
|
|
|
|
|
|
Property and
equipment, net
|
|
1,392
|
|
858
|
Operating lease
asset
|
|
4,626
|
|
3,831
|
Finance lease
asset
|
|
223
|
|
180
|
Deposits
|
|
282
|
|
329
|
Long-term deferred
income taxes
|
|
403
|
|
513
|
Total assets
|
|
$
36,759
|
|
$
28,277
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts payable and
accrued expenses
|
|
2,201
|
|
2,141
|
Operating lease
liability
|
|
1,678
|
|
1,211
|
Finance lease
liability
|
|
71
|
|
45
|
Income taxes
payable
|
|
-
|
|
52
|
Accrued payroll and
related taxes
|
|
2,070
|
|
1,748
|
Total current liabilities
|
|
6,020
|
|
5,197
|
Long-term
liabilities:
|
|
|
|
|
Operating lease
liability
|
|
3,618
|
|
3,282
|
Finance lease
liability
|
|
164
|
|
145
|
Total liabilities
|
|
9,802
|
|
8,624
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
Common
stock
|
|
34
|
|
34
|
Additional paid-in
capital
|
|
10,548
|
|
9,198
|
Treasury
stock
|
|
(3,846)
|
|
(3,846)
|
Retained
earnings
|
|
20,310
|
|
14,356
|
Total Zynex, Inc. stockholders' equity
|
|
27,046
|
|
19,742
|
Non-controlling interest
|
|
(89)
|
|
(89)
|
Total stockholders' equity
|
|
26,957
|
|
19,653
|
Total liabilities and stockholders' equity
|
|
$
36,759
|
|
$
28,277
|
ZYNEX,
INC.
|
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
(in thousands,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
June 30,
|
|
For the Six Months
Ended
June 30,
|
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
NET
REVENUE
|
|
|
|
|
|
|
|
|
|
Devices
|
$
4,281
|
|
$
2,288
|
|
$
7,725
|
|
$
4,263
|
|
|
Supplies
|
14,982
|
|
8,009
|
|
26,766
|
|
15,230
|
|
|
Total net
revenue
|
19,263
|
|
10,297
|
|
34,491
|
|
19,493
|
|
|
|
|
|
|
|
|
|
|
|
|
COSTS OF REVENUE
AND OPERATING
EXPENSES
|
|
|
|
|
|
|
|
|
|
Costs of revenue -
devices and supplies
|
4,061
|
|
1,948
|
|
7,462
|
|
3,732
|
|
|
Sales and
marketing
|
6,332
|
|
3,081
|
|
11,541
|
|
5,554
|
|
|
General and
administrative
|
4,785
|
|
2,684
|
|
8,945
|
|
5,367
|
|
|
Total costs of
revenue and operating expenses
|
15,178
|
|
7,713
|
|
27,948
|
|
14,653
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
4,085
|
|
2,584
|
|
6,543
|
|
4,840
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
income/(expense)
|
|
|
|
|
|
|
|
|
|
Deferred
insurance reimbursement
|
-
|
|
-
|
|
-
|
|
880
|
|
|
Interest
expense
|
(5)
|
|
-
|
|
(9)
|
|
-
|
|
|
Other
income/(expense), net
|
(5)
|
|
-
|
|
(9)
|
|
880
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations before income taxes
|
4,080
|
|
2,584
|
|
6,534
|
|
5,720
|
|
|
Income tax
expense
|
1,063
|
|
422
|
|
580
|
|
1,208
|
|
|
Net Income
|
$
3,017
|
|
$
2,162
|
|
$
5,954
|
|
$
4,512
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per
share:
|
|
|
|
|
|
|
|
|
|
Basic
|
$
0.09
|
|
$
0.07
|
|
$
0.18
|
|
$
0.14
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
$
0.09
|
|
$
0.06
|
|
$
0.17
|
|
$
0.13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
basic shares outstanding
|
33,283
|
|
32,326
|
|
33,098
|
|
32,279
|
|
|
Weighted average
diluted shares outstanding
|
34,454
|
|
33,953
|
|
34,329
|
|
33,837
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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,
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
Adjusted
EBITDA:
|
|
|
|
|
|
|
|
|
Net income
|
$
3,017
|
|
$
2,162
|
|
$
5,954
|
|
$
4,512
|
|
Depreciation and
Amortization
|
97
|
|
76
|
|
165
|
|
142
|
|
Stock-based
compensation expense
|
579
|
|
158
|
|
1,076
|
|
297
|
|
Interest
expense and other (benefit), net
|
5
|
|
-
|
|
9
|
|
(880)
|
|
Income
tax expense
|
1,063
|
|
422
|
|
580
|
|
1,208
|
|
Adjusted
EBITDA
|
$
4,761
|
|
$
2,818
|
|
$
7,784
|
|
$
5,279
|
|
% of Net
Revenue
|
25%
|
|
27%
|
|
23%
|
|
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