Zynex Announces Second Quarter 2016 Results
PR Newswire
LONE TREE, Colo.

LONE TREE, Colo., Aug. 22, 2016 /PRNewswire/ -- Zynex (OTCQB: ZYXI), an innovative medical technology company specializing in the manufacture and sale of non-invasive medical devices for pain management, stroke rehabilitation, neuro diagnostics, cardiac and blood volume monitoring, announced today its second quarter 2016 financial results.

President and CEO Commentary:

Thomas Sandgaard, CEO commented: "Revenue came in at $3.3 million, 7% above the second quarter last year. We came closer to a breakeven result with a net loss of $227,000, a significant improvement compared with the second quarter 2015 loss of $501,000.

"Our orders are currently running at a level twice of the same time last year and since our revenue is mostly recurring from monthly rentals and monthly supplies sent to our patients we expect to see higher revenues later this year as more patients continue to use our electrotherapy products, primarily the NexWave device. It is also worth noting that our lack of liquidity has made it difficult to keep up with order volume in production and has slowed down sales growth. We have paid down the balance on our line of credit from the beginning of the year from $4,002,000 to $3,284,000 by the close of second quarter 2016. Our revenue expectation for 2016 remains around $16 million and with positive net income."

Summary of Financial Results:

The Company's net revenue was $3,286,000 for the second quarter of 2016, compared to $3,073,000 for the second quarter of 2015. Gross profit margin in the quarter was 71%.

The Company reported Selling, General and Administrative ("SG&A") expenses of $2,495,000 for the second quarter of 2016, compared to $2,270,000 for the quarter ended June 30, 2015, an increase of $225,000 primarily attributed to an increase in sales commissions.

For the second quarter 2016, the Company reported a net loss of $227,000, or $0.01 per share, compared to a net loss of $501,000, or $0.02 per share in the same period of 2015. For the six months ended June 30, 2016, the Company reported a net loss of $672,000, or $0.02 per share, compared to a net loss of $1,389,000, or $0.04 per share in the first half of 2015.

Cash provided by operations in the first half 2016 was $953,000 versus uses of negative $194,000 in the first half of 2015.

The Company's line of credit balance as of June 30, 2016 was $3,284,000, a reduction of $718,000 since December 31, 2015.

The company holds it second quarter 2016 on Monday, August 22 at 9:00am MT (11:00am ET).

To register and participate in the webcast, interested parties should click on the following link approximately 10-15 minutes prior to the webcast:

https://www.webcaster4.com/Webcast/Page/1487/16775

Phone Access Details

US Participant Toll Free Dial-In Number:

1-877-870-4263

International Dial-In Number:                   

1-412-317-0790

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
Statements made in this presentation include financial estimates and forward-looking statements that are not historical facts. Each of these estimates and forward-looking statements involves risk and uncertainties. These estimates are based on present circumstances, information currently available, and assumptions about future revenues, industry growth, and general economic conditions. Estimates are inherently uncertain as they are based on assumptions concerning future events. No representations can be made as to the accuracy of such information or the reliability of such assumptions. Accordingly, actual revenues and expenditures may vary significantly from the Company's estimates, and actual results or developments may differ materially from those expressed or implied by the forward-looking statements. Factors that could cause actual results to differ from the financial estimates and forward-looking statements in this presentation include those described in the Company' s filings with the Securities and Exchange Commission, including the Risk Factors section of the Company's Annual Report on Form 10-K for the year ended December 31, 2015. Therefore, neither the Company's estimates nor the assumptions upon which they are based are to be interpreted as a guarantee or promise of the Company or management. The Company has no obligation to modify, amend, update, alter, or change the estimates contained herein. 

Contact: Zynex, Inc. 303-703-4906

 

ZYNEX, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(AMOUNTS IN THOUSANDS, EXCEPT NUMBER OF SHARES)




June 30,



December 31,




2016



2015




(UNAUDITED)





ASSETS









Current Assets:









Cash


$

29



$

8


Accounts receivable, net



3,237




2,426


Inventory, net



164




305


Prepaid expenses



123




27


Total current assets



3,553




2,766


Property and equipment, net



611




801


Deposits



55




55


Intangible assets, net



54




74


Total assets


$

4,273



$

3,696


LIABILITIES AND STOCKHOLDERS' DEFICIT









Current Liabilities:









Line of credit


$

3,284



$

4,002


Current portion of capital leases



109




109


Accounts payable



2,947




2,477


Deferred revenue



370




89


Income taxes payable



79




79


Accrued payroll and payroll taxes



765




484


Deferred insurance reimbursement



880




-


Accrued expenses



214




299


Total current liabilities



8,648




7,539


Capitalized leases, less current portion



181




216


Warranty liability



12




12


Total liabilities



8,841




7,767


Stockholders' Deficit:









Preferred stock; $.001 par value, 10,000,000 shares authorized, no shares issued or outstanding







-


Common stock, $.001 par value, 100,000,000 shares authorized, 31,271,234 shares issued and outstanding



31




31


Paid-in capital



6,006




5,832


Accumulated deficit



(10,516)




(9,845)


Total Zynex, Inc. stockholders' deficit



(4,479)




(3,982)


Non-controlling interest



(89)




(89)


Total stockholders' deficit



(4,568)




(4,071)


Total liabilities and stockholders' deficit


$

4,273



$

3,696


 

ZYNEX, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED, AMOUNTS IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)



Three months ended



Six months ended



June 30,



June 30,



2016



2015



2016



2015


Net revenue:
















Rental

$

823



$

517



$

1,902



$

844


Sales


2,463




2,556




4,861




5,412




3,286




3,073




6,763




6,256


Operating expenses:
















Cost of revenue – rental, product & supply


941




1,166




1,924




2,411


































Selling, general and administrative expense


2,495




2,270




5,340




4,980


Income (loss) from operations


(150)




(363)




(500)




(1,135)


Other income (expense):
















Interest expense


(77)




(138)




(172)




(270)


Other income:












Total other income (expense)


(77)




(138)




(172)




(270)


Loss before income taxes


(227)




(501)




(672)




(1,405)


Income tax benefit












Net loss


(227)




(501)




(672)




(1,405)


Plus: Net loss – noncontrolling interest






8








16


Net loss – attributable to Zynex, Inc.

$

(227)



$

(493)



$

(672)



$

(1,389)


Net loss per share – attributable to Zynex, Inc.:
















Basic

$

(0.01)



$

(0.02)



$

(0.02)



$

(0.04)


Diluted

$

(0.01)



$

(0.02)



$

(0.02)



$

(0.04)


Weighted - average number of common shares outstanding:
















Basic


31,271,234




31,271,234




31,271,234




31,271,234


Diluted


31,271,234




31,271,234




31,271,234




31,271,234


 

ZYNEX, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED, AMOUNTS IN THOUSANDS) 




Six months ended




June 30,




2016



2015


Cash flows from operating activities:









Net cash provided by (used in) operating activities


$

953



$

(194)


Cash flows from investing activities:









Change in inventory used for rental



(178)




73


Net cash (used in) provided by investing activities



(178)




73


Cash flows from financing activities:









Net (repayments) borrowings  on line of credit



(718)




178


Payments on capital leases and other obligations



(36)




(33)


Net cash (used in) provided by financing activities



(754)




145


Net increase in cash



21




24


Cash at the beginning of the period



8




63


Cash at the end of the period


$

29



$

87


Supplemental cash flow information:









Interest paid


$

172



$

258


Income taxes paid (including interest and penalties)


$

-



$

-


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SOURCE Zynex