ENGLEWOOD, Colo., Oct. 27, 2020 /PRNewswire/ --
- Revenue increased 69% year over year to $20.0 million
- Orders increased 96%
- Net income of $1.3 million;
Diluted EPS $0.04
- Adjusted EBITDA $2.4
million
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, 2020.
Third Quarter Financial Results Summary:
For the third quarter, the Company reported net revenue of
$20.0 million, a 69% increase over
the third quarter of 2019. Gross margins were 79% in the third
quarter of 2020 and net income was $1.3
million.
Adjusted EBITDA was $2.4 million
in the third quarter of 2020.
As of September 30, 2020, the
Company had working capital of $50.3
million compared to $17.4
million at December 31, 2019.
Cash on hand was $41.2 million at the
end of the third quarter.
President and CEO Commentary:
Thomas Sandgaard, CEO said: "I am
excited to announce our seventeenth consecutive quarter of positive
net income. In the third quarter, we posted revenue of $20.0 million, which is the highest quarterly
revenue in the history of the Company and net income of
$1.3 million. Orders grew 96%
compared to the third quarter of 2019.
"Similar to most companies we have seen the impact of the
COVID-19 pandemic. As we announced in our flash report earlier this
month, our Q3 revenue was less than we originally expected but
we've made great progress in 2020. Our original revenue guidance in
2020 before the world-wide economic slowdown related to COVID-19
was $75-$80
million, our current full year revenue guidance is
$80-$81
million, approximately 77% growth compared to 2019. Our
current Adjusted EBITDA projection for 2020 will exceed 2019 and
includes adding over 300 sales people during the year and an
investment in sales and marketing of approximately $20 million. This investment puts us in a
dominant position going into 2021 as the largest supplier of
prescription strength electrotherapy devices for pain management in
the US.
"I think it's important to reconcile what we've accomplished to
date in 2020 despite the pandemic and reiterate the potential of
our business as we move into 2021. 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 third quarter, we continued to focus on the execution of
our growth strategy and the related growth of our sales force as we
eclipsed 400 sales reps and expect to have over 500 by year-end. We
expect the addition of new sales reps to have an impact on order
and revenue growth in fourth quarter 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 and Full Year 2020 Guidance:
The estimated range for fourth quarter revenue is between
$25.5 and $26.5 million with Adjusted EBITDA between
$2.3 and $3.3
million. The revenue estimate is approximately 80% to 87%
above 2019 fourth quarter revenue of $14.2
million.
Full year 2020 revenue is estimated between $80.0 and $81.0
million with Adjusted EBITDA between $12.5 and $13.5
million. The full year revenue estimate is approximately 76%
to 78% above 2019 revenue of $45.5
million.
Conference Call and Webcast Details:
Tuesday, October 27,
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/1487/38303
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 but
not limited to, 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. (800) 495-6670
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,
|
|
2020
|
|
2019
|
|
|
|
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash
|
|
$
41,229
|
|
$
14,040
|
Accounts
receivable
|
|
9,365
|
|
5,833
|
Inventory,
net
|
|
5,898
|
|
2,378
|
Prepaid expenses and
other
|
|
1,061
|
|
315
|
Total current assets
|
|
57,553
|
|
22,566
|
|
|
|
|
|
Property and
equipment, net
|
|
1,670
|
|
858
|
Operating lease
asset
|
|
4,268
|
|
3,831
|
Finance lease
asset
|
|
207
|
|
180
|
Deposits
|
|
282
|
|
329
|
Deferred income
taxes
|
|
985
|
|
513
|
Total assets
|
|
$
64,965
|
|
$
28,277
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts payable and
accrued expenses
|
|
2,627
|
|
2,141
|
Operating lease
liability
|
|
1,678
|
|
1,211
|
Finance lease
liability
|
|
51
|
|
45
|
Income taxes
payable
|
|
429
|
|
52
|
Accrued payroll and
related taxes
|
|
2,510
|
|
1,748
|
Total current liabilities
|
|
7,295
|
|
5,197
|
Long-term
liabilities:
|
|
|
|
|
Operating lease
liability
|
|
3,279
|
|
3,282
|
Finance lease
liability
|
|
169
|
|
145
|
Total liabilities
|
|
10,743
|
|
8,624
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
Preferred
stock
|
|
-
|
|
-
|
Common
Stock
|
|
35
|
|
34
|
Additional paid-in
capital
|
|
36,479
|
|
9,198
|
Treasury
stock
|
|
(3,846)
|
|
(3,846)
|
Retained
earnings
|
|
21,643
|
|
14,356
|
Total Zynex, Inc. stockholders' equity
|
|
54,311
|
|
19,742
|
Non-controlling interest
|
|
(89)
|
|
(89)
|
Total stockholders' equity
|
|
54,222
|
|
19,653
|
Total liabilities and stockholders' equity
|
|
$
64,965
|
|
$
28,277
|
ZYNEX,
INC.
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(in thousands,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
September 30,
|
|
For the Nine
Months Ended
September 30,
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
NET
REVENUE
|
|
|
|
|
|
|
|
|
Devices
|
$
5,301
|
|
$
2,661
|
|
$
13,026
|
|
$
6,924
|
|
Supplies
|
14,725
|
|
9,156
|
|
41,491
|
|
24,386
|
|
Total net
revenue
|
20,026
|
|
11,817
|
|
54,517
|
|
31,310
|
|
|
|
|
|
|
|
|
|
|
COSTS OF REVENUE
AND
OPERATING EXPENSES
|
|
|
|
|
|
|
|
|
Costs of revenue -
devices and supplies
|
4,296
|
|
2,261
|
|
11,758
|
|
5,993
|
|
Sales and
marketing
|
9,425
|
|
4,184
|
|
21,817
|
|
10,035
|
|
General and
administrative
|
4,896
|
|
2,877
|
|
12,990
|
|
7,947
|
|
Total costs of
revenue and operating
expenses
|
18,617
|
|
9,322
|
|
46,565
|
|
23,975
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
1,409
|
|
2,495
|
|
7,952
|
|
7,335
|
|
|
|
|
|
|
|
|
|
|
Other
income/(expense)
|
|
|
|
|
|
|
|
|
Deferred
insurance reimbursement
|
-
|
|
-
|
|
-
|
|
880
|
|
Interest
income/(expense)
|
(5)
|
|
1
|
|
(14)
|
|
1
|
|
Other
income/(expense), net
|
(5)
|
|
1
|
|
(14)
|
|
881
|
|
|
|
|
|
|
|
|
|
|
Income from
operations before income
taxes
|
1,404
|
|
2,496
|
|
7,938
|
|
8,216
|
|
Income tax
expense
|
71
|
|
463
|
|
651
|
|
1,671
|
|
Net Income
|
$
1,333
|
|
$
2,033
|
|
$
7,287
|
|
$
6,545
|
|
|
|
|
|
|
|
|
|
|
Net income per
share:
|
|
|
|
|
|
|
|
|
Basic
|
$
0.04
|
|
$
0.06
|
|
$
0.22
|
|
$
0.20
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
$
0.04
|
|
$
0.06
|
|
$
0.21
|
|
$
0.19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
basic shares
outstanding
|
34,486
|
|
32,490
|
|
33,564
|
|
32,350
|
|
Weighted average
diluted shares outstanding
|
35,476
|
|
34,076
|
|
34,715
|
|
33,917
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Adjusted
EBITDA:
|
|
|
|
|
|
|
|
Net income
|
$
1,333
|
|
$
2,033
|
|
$
7,287
|
|
$
6,545
|
Depreciation and
Amortization*
|
305
|
|
50
|
|
470
|
|
192
|
Stock-based
compensation expense
|
730
|
|
259
|
|
1,806
|
|
556
|
Interest
expense and other (benefit), net
|
5
|
|
-
|
|
14
|
|
(879)
|
Income
tax expense
|
71
|
|
463
|
|
651
|
|
1,671
|
Adjusted
EBITDA
|
$
2,444
|
|
$
2,805
|
|
$
10,228
|
|
$
8,085
|
% of Net
Revenue
|
12%
|
|
24%
|
|
19%
|
|
26%
|
|
* 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