ENGLEWOOD, Colo., Oct. 27,
2022 /PRNewswire/ -- Zynex, Inc. (Nasdaq:
ZYXI) an innovative medical technology company specializing in
the manufacture and sale of non-invasive medical devices for pain
management, rehabilitation, and patient monitoring, today reported
financial results for the third quarter ended September 30, 2022.
Third Quarter 2022 Highlights:
- Increased revenue 19% year-over-year to $41.5 million
- Reported net income of $4.9
million; Diluted EPS of $0.13;
Adjusted EBITDA of $8.1 million
- Recorded cash from operations of $7.4
million for the third quarter
- Completed the second of two $10
million share buybacks
- Achieved highest number of orders in Company history for the
2nd consecutive quarter
Third Quarter 2022 Financial Results Summary:
For the third quarter, the Company reported net revenue of
$41.5 million, a 19% increase over
the third quarter of 2021. Gross margins were 80% and net income
was $4.9 million, a 46% increase from
the second quarter of 2022.
As of September 30, 2022, the
Company had working capital of $47.6
million. Cash on hand was $23.5
million at the end of the third quarter.
President and CEO Commentary:
"The third quarter of 2022 was another record-breaking period of
order growth, with order numbers increasing 34% year-over-year,"
said Thomas Sandgaard, President and
CEO. "In addition to increased orders, revenue, and profitability,
we recorded the second-best period for operating cash flows in the
Company's history at $7.4 million in
the third quarter. Our strong cash flow allowed us to complete
another $10 million stock buyback,
totaling $20 million year-to-date, a
reflection of our confidence in the Company's future performance. I
am thrilled with our team's ability to efficiently execute on our
top line goals while maintaining financial health and sustained
profitability, and I look forward to continued success."
Fourth Quarter and Full Year 2022 Guidance:
The estimated range for fourth quarter 2022 revenue is between
$48-$51
million, an increase of approximately 23% from Q4 2021.
Adjusted EBITDA for the fourth quarter 2022 is estimated to range
between $10-$12 million.
Based on the fourth quarter estimates, the full year 2022
revenue estimate now ranges between $157.4-$160.4
million and Adjusted EBITDA between $26.7-$28.7
million.
Conference Call and Webcast Details:
Thursday, October 27,
2022, 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://app.webinar.net/PxEgJzg8540
US Participant Dial In (TOLL FREE):
1-844-825-9790
International Participant Dial In: 1-412-317-5170
Canada Participant Dial In (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, stock compensation,
restructuring and non-cash lease charges). 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, develops,
manufactures, markets and sells medical devices used for pain
management and rehabilitation as well as non-invasive fluid, sepsis
and laser-based pulse oximetry monitoring systems for use in
hospitals. 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,
forecasts, 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, 2021 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.
Investor Contact
Gilmartin Group
650 Fifth Ave., Suite 2720
New York, NY 10019
IR@zynex.com
ZYNEX,
INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(AMOUNTS IN
THOUSANDS)
(unaudited)
|
|
|
|
|
|
|
September
30,
|
|
December
31,
|
|
|
2022
|
|
2021
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash
|
|
$
23,532
|
|
$
42,612
|
Accounts receivable,
net
|
|
28,350
|
|
28,632
|
Inventory,
net
|
|
14,366
|
|
10,756
|
Prepaid expenses and
other
|
|
1,134
|
|
689
|
Total current assets
|
|
67,382
|
|
82,689
|
|
|
|
|
|
Property and equipment,
net
|
|
2,199
|
|
2,186
|
Operating lease
asset
|
|
13,783
|
|
16,338
|
Finance lease
asset
|
|
300
|
|
389
|
Deposits
|
|
591
|
|
585
|
Intangible assets, net
of accumulated amortization
|
|
9,296
|
|
9,975
|
Goodwill
|
|
20,401
|
|
20,401
|
Deferred income
taxes
|
|
1,483
|
|
711
|
Total assets
|
|
$
115,435
|
|
$
133,274
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts payable and
accrued expenses
|
|
5,139
|
|
4,739
|
Cash dividends
payable
|
|
16
|
|
3,629
|
Operating lease
liability
|
|
2,943
|
|
2,859
|
Finance lease
liability
|
|
126
|
|
118
|
Income taxes
payable
|
|
916
|
|
2,296
|
Current portion of
debt
|
|
5,333
|
|
5,333
|
Accrued payroll and
related taxes
|
|
5,297
|
|
3,897
|
Total current liabilities
|
|
19,770
|
|
22,871
|
Long-term
liabilities:
|
|
|
|
|
Long-term portion of
debt, less issuance costs
|
|
6,621
|
|
10,605
|
Contingent
consideration
|
|
9,700
|
|
9,700
|
Operating lease
liability
|
|
13,936
|
|
15,856
|
Finance lease
liability
|
|
221
|
|
317
|
Total liabilities
|
|
50,248
|
|
59,349
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
Common
Stock
|
|
39
|
|
41
|
Additional paid-in
capital
|
|
81,873
|
|
80,397
|
Treasury
stock
|
|
(26,321)
|
|
(6,513)
|
Retained
earnings
|
|
9,596
|
|
-
|
Total stockholders' equity
|
|
65,187
|
|
73,925
|
Total liabilities and stockholders' equity
|
|
$
115,435
|
|
$
133,274
|
ZYNEX,
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
|
(AMOUNTS IN
THOUSANDS, EXCEPT PER SHARE DATA)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended
September 30,
|
|
For the Nine Months
Ended
September 30,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
NET
REVENUE
|
|
|
|
|
|
|
|
|
Devices
|
|
$
11,349
|
|
$
9,071
|
|
$
27,579
|
|
$ 23,264
|
Supplies
|
|
30,171
|
|
25,715
|
|
81,783
|
|
66,671
|
Total net
revenue
|
|
41,520
|
|
34,786
|
|
109,362
|
|
89,935
|
|
|
|
|
|
|
|
|
|
COSTS OF REVENUE
AND
OPERATING EXPENSES
|
|
|
|
|
|
|
|
|
Costs of revenue -
devices and supplies
|
|
8,391
|
|
6,837
|
|
22,617
|
|
19,990
|
Sales and
marketing
|
|
17,212
|
|
13,083
|
|
47,950
|
|
40,662
|
General and
administrative
|
|
9,359
|
|
6,820
|
|
25,967
|
|
18,503
|
Total costs of revenue
and operating expenses
|
|
34,962
|
|
26,740
|
|
96,534
|
|
79,155
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
|
6,558
|
|
8,046
|
|
12,828
|
|
10,780
|
|
|
|
|
|
|
|
|
|
Other
(expense)
|
|
|
|
|
|
|
|
|
Loss on
change in fair value of
contingent consideration
|
|
(100)
|
|
-
|
|
-
|
|
-
|
Interest
expense
|
|
(106)
|
|
(18)
|
|
(345)
|
|
(72)
|
Other (expense)
net
|
|
(206)
|
|
(18)
|
|
(345)
|
|
(72)
|
|
|
|
|
|
|
|
|
|
Income from operations
before income taxes
|
|
6,352
|
|
8,028
|
|
12,483
|
|
10,708
|
Income tax
expense
|
|
1,479
|
|
1,921
|
|
2,887
|
|
2,499
|
Net income
|
|
$
4,873
|
|
$
6,107
|
|
$
9,596
|
|
$
8,209
|
|
|
|
|
|
|
|
|
|
Net income per
share:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
0.13
|
|
$
0.16
|
|
$
0.25
|
|
$
0.21
|
Diluted
|
|
$
0.13
|
|
$
0.16
|
|
$
0.24
|
|
$
0.21
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average basic
shares outstanding
|
|
38,046
|
|
38,245
|
|
38,881
|
|
38,286
|
Weighted average
diluted shares outstanding
|
|
38,865
|
|
39,043
|
|
39,729
|
|
39,142
|
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,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Net income
|
$
4,873
|
|
$
6,107
|
|
$
9,596
|
|
$
8,209
|
Depreciation and
Amortization*
|
418
|
|
201
|
|
1,225
|
|
711
|
Stock-based
compensation expense
|
578
|
|
532
|
|
1,702
|
|
1,041
|
Restructuring/severance**
|
-
|
|
-
|
|
-
|
|
318
|
Interest
expense and other, net
|
206
|
|
18
|
|
345
|
|
72
|
Non-cash lease expense
***
|
572
|
|
553
|
|
982
|
|
856
|
Income tax
expense
|
1,479
|
|
1,921
|
|
2,887
|
|
2,499
|
Adjusted
EBITDA
|
$
8,126
|
|
$
9,332
|
|
$
16,737
|
|
$
13,706
|
% of Net
Revenue
|
20 %
|
|
27 %
|
|
15 %
|
|
15 %
|
|
|
|
|
|
|
|
|
* Depreciation does not
include amounts related to units on lease to third parties which
are depreciated and included in cost of goods sold.
** Severance of former
COO Giusseppe Papandrea which was fully expensed in Q1
2021
*** Amount expensed on
new company headquarters in excess of cash payments due to abated
rent
|
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SOURCE Zynex