ENGLEWOOD, Colo., Nov. 2, 2021 /PRNewswire/ --
2021 Third Quarter
- Revenue increased 74% year over year to $34.8 million
- Orders increased 70%
- Record net income of $6.1 million; Diluted EPS $0.17
- Adjusted EBITDA $9.3 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, 2021.
Third Quarter Financial Results Summary:
For the third quarter, the Company reported net revenue of $34.8 million, a 74% increase over the third quarter of 2020. Gross margins were 80% in the third quarter of 2021 and net income was $6.1 million.
Adjusted EBITDA was $9.3 million in the third quarter of 2021.
As of September 30, 2021, the Company had working capital of $59.6 million a 13% increase compared to June 30, 2021. Cash on hand was $35.4 million at the end of the third quarter. Cash increased by more than 9% during the quarter due to the Company posting record profitability.
President and CEO Commentary:
Thomas Sandgaard, CEO said: "I am excited about our order growth in the third quarter of 70% which we expect will continue to drive increasing revenue in 2021 and 2022. In the third quarter, we posted revenue of $34.8 million and net income of $6.1 million, both amounts are the highest in the history of the Company. We are pleased with our continued revenue growth and the related profitability as we continue to leverage the investments we've made in our sales organization over the past couple of years. There is a sizeable pain management market in the U.S. and worldwide that can benefit from our products and we are just scratching the surface of the addressable market.
In our Monitoring Solutions Division, our team just returned from the American Society of Anesthesiologists annual conference where we received positive feedback from clinicians and institutions on our CM-1500 Blood and Fluid Monitor. We expect to submit our next generation CM-1600 for FDA clearance within the next ninety days as our engineering team is making great progress.
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 2021 Guidance:
The estimated range for fourth quarter revenue is between $40.0 and $43.0 million with Adjusted EBITDA between $9.0 and $10.0 million. The revenue estimate is approximately 56% to 68% above 2020 fourth quarter revenue of $25.6 million.
Full year 2021 revenue is estimated between $130.0 and $133.0 million with Adjusted EBITDA between $22.7 and $23.7 million. The full year revenue estimate is approximately 62% to 66% above 2020 revenue of $80.1 million. Full year Adjusted EBITDA growth in 2021 is approximately 66% to 73% compared to 2020.
Conference Call and Webcast Details:
Tuesday, November 2, 2021 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/1487/43407
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, 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, 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 fluid monitoring system 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 products 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, 2020 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, | |||
2021 | 2020 | |||
ASSETS | ||||
Current assets: | ||||
Cash | $ 35,368 | $ 39,173 | ||
Accounts receivable, net | 24,234 | 13,837 | ||
Inventory, net | 9,154 | 8,635 | ||
Prepaid expenses and other | 1,102 | 1,378 | ||
Total current assets | 69,858 | 63,023 | ||
Property and equipment, net | 2,253 | 1,925 | ||
Operating lease asset | 17,234 | 5,993 | ||
Finance lease asset | 418 | 321 | ||
Deposits | 584 | 347 | ||
Deferred income taxes | 376 | 566 | ||
Total assets | $ 90,723 | $ 72,175 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
Current liabilities: | ||||
Accounts payable and accrued expenses | 2,669 | 4,717 | ||
Operating lease liability | 2,416 | 2,051 | ||
Finance lease liability | 115 | 77 | ||
Income taxes payable | 1,577 | 280 | ||
Accrued payroll and related taxes | 3,515 | 2,992 | ||
Total current liabilities | 10,292 | 10,117 | ||
Long-term liabilities: | ||||
Operating lease liability | 16,701 | 4,920 | ||
Finance lease liability | 347 | 283 | ||
Total liabilities | 27,340 | 15,320 | ||
Stockholders' equity: | ||||
Common stock | 37 | 36 | ||
Additional paid-in capital | 38,220 | 37,235 | ||
Treasury Stock | (6,513) | (3,846) | ||
Retained earnings | 31,639 | 23,430 | ||
Total stockholders' equity | 63,383 | 56,855 | ||
Total liabilities and stockholders' equity | $ 90,723 | $ 72,175 | ||
ZYNEX, INC. | ||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
(in thousands, except per share data) (unaudited) | ||||||||
For the Three Months Ended | For the Nine Months Ended | |||||||
2021 | 2020 | 2021 | 2020 | |||||
NET REVENUE | ||||||||
Devices | $ 9,071 | $ 5,301 | $ 23,264 | $ 13,026 | ||||
Supplies | 25,715 | 14,725 | 66,671 | 41,491 | ||||
Total net revenue | 34,786 | 20,026 | 89,935 | 54,517 | ||||
COSTS OF REVENUE AND OPERATING EXPENSES | ||||||||
Costs of revenue - devices and supplies | 6,837 | 4,296 | 19,990 | 11,758 | ||||
Sales and marketing | 13,083 | 9,425 | 40,662 | 21,817 | ||||
General and administrative | 6,820 | 4,896 | 18,503 | 12,990 | ||||
Total costs of revenue and operating expenses | 26,740 | 18,617 | 79,155 | 46,565 | ||||
Income from operations | 8,046 | 1,409 | 10,780 | 7,952 | ||||
Other expense | ||||||||
Interest expense | (18) | (5) | (72) | (14) | ||||
Other expense, net | (18) | (5) | (72) | (14) | ||||
Income from operations before income taxes | 8,028 | 1,404 | 10,708 | 7,938 | ||||
Income tax expense | 1,921 | 71 | 2,499 | 651 | ||||
Net Income | $ 6,107 | $ 1,333 | $ 8,209 | $ 7,287 | ||||
Net income per share: | ||||||||
Basic | $ 0.18 | $ 0.04 | $ 0.24 | $ 0.22 | ||||
Diluted | $ 0.17 | $ 0.04 | $ 0.23 | $ 0.21 | ||||
Weighted average basic shares outstanding | 34,768 | 34,486 | 34,805 | 33,564 | ||||
Weighted average diluted shares outstanding | 35,493 | 35,476 | 35,583 | 34,715 | ||||
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, | ||||||
2021 | 2020 | 2021 | 2020 | ||||
Adjusted EBITDA: | |||||||
Net income | $ 6,107 | $ 1,333 | $ 8,209 | $ 7,287 | |||
Depreciation and Amortization* | 201 | 305 | 711 | 470 | |||
Stock-based compensation expense | 532 | 730 | 1,041 | 1,806 | |||
Restructuring/severance** | - | - | 318 | - | |||
Interest expense and other, net | 18 | 5 | 72 | 14 | |||
Non-cash lease expense *** | 553 | - | 856 | - | |||
Income tax expense | 1,921 | 71 | 2,499 | 651 | |||
Adjusted EBITDA | $ 9,332 | $ 2,444 | $ 13,706 | $ 10,228 | |||
% of Net Revenue | 27% | 12% | 15% | 19% | |||
* 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 on which no payments are due until 2022 | |||||||
SOURCE Zynex
