ENGLEWOOD, Colo., Feb. 25, 2021 /PRNewswire/ --
- 2020 Full Year
-
- Revenue increased 76% year over year to $80.1 million
- Orders increased 96%
- Net income of $9.1 million;
Diluted EPS $0.26
- Adjusted EBITDA $13.7
millio
- 2020 Revenue and Adjusted EBITDA are the highest in Company
history
- 2020 Fourth Quarter
-
- Revenue increased 81% year over year to $25.6 million
- Orders increased 117%
- Net income of $1.8 million;
Diluted EPS $0.05
- Adjusted EBITDA $3.4
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 fourth quarter and full year ended December 31, 2020.
Fourth Quarter Financial Results Summary:
For the
fourth quarter, the Company reported net revenue of $25.6 million, an 81% increase over the fourth
quarter of 2019. Gross margins were 78% in the fourth quarter of
2020 and net income was $1.8
million.
Adjusted EBITDA was $3.4 million
in the fourth quarter of 2020.
As of December 31, 2020, the
Company had working capital of $52.9
million compared to $17.4
million at December 31, 2019.
Cash on hand was $39.2 million at the
end of the fourth quarter. Cash decreased slightly during the
quarter due to the Company maintaining higher than normal inventory
levels to protect against any supplier delays related to COVID-19.
There have not been any issues with supplier deliveries to
date.
President and CEO Commentary:
Thomas Sandgaard, CEO said: "I am excited to
announce our eighteenth consecutive quarter of positive net income.
In the fourth quarter, we posted revenue of $25.6 million, which is the highest quarterly
revenue in the history of the Company and net income of
$1.8 million. Orders grew 117%
compared to the fourth quarter of 2019.
We are pleased with our accomplishments 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 fourth quarter, we continued to focus on the execution of
our growth strategy and the related growth of our sales force as we
eclipsed 500 sales reps and expect to have over 600 by the end of
2021.We expect the new sales reps primarily added in the second
half of 2020 to add significantly to our order growth in the first
half of 2021 and therefore positively impact revenue growth in the
second half of 2021 and forward.
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."
First Quarter and Full Year 2021 Guidance:
Full year
2021 revenue is estimated between $135.0 and $150.0
million with Adjusted EBITDA between $15.0 and $25.0
million. The full year revenue estimate is approximately 68%
to 87% above 2020 revenue of $80.1
million.
The estimated range for first quarter revenue is between
$23.0 and $24.5 million with an Adjusted EBITDA loss of
between $0.5 and $1.5 million. First quarter revenue is
historically affected by health insurance deductibles not being met
in the beginning of the year. The combination of seasonality of
deductibles along with the sales force investments we've added
during 2020 and slower ramping of sales orders due to COVID-19
restrictions are factors which will produce a small loss in Q1. We
expect profitability to ramp quickly throughout the year to meet
our Adjusted EBITDA forecast of $15
to $25 million for 2021.
The revenue estimate for Q1 is approximately 51% to 61% above
2020 first quarter revenue of $15.2
million.
Conference Call and Webcast Details:
Thursday, February 25, 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/1487/40106
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)
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
2020
|
|
2019
|
|
|
|
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash
|
|
$
39,173
|
|
$
14,040
|
Accounts receivable,
net
|
|
13,837
|
|
5,833
|
Inventory,
net
|
|
8,635
|
|
2,378
|
Prepaid expenses and
other
|
|
1,378
|
|
315
|
Total current assets
|
|
63,023
|
|
22,566
|
|
|
|
|
|
Property and
equipment, net
|
|
1,925
|
|
858
|
Operating lease
asset
|
|
5,993
|
|
3,831
|
Finance lease
asset
|
|
321
|
|
180
|
Deposits
|
|
347
|
|
329
|
Deferred income
taxes
|
|
566
|
|
513
|
Total assets
|
|
$
72,175
|
|
$
28,277
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts payable and
accrued expenses
|
|
4,717
|
|
2,141
|
Operating lease
liability
|
|
2,051
|
|
1,211
|
Finance lease
liability
|
|
77
|
|
45
|
Income taxes
payable
|
|
280
|
|
52
|
Accrued payroll and
related taxes
|
|
2,992
|
|
1,748
|
Total current liabilities
|
|
10,117
|
|
5,197
|
Long-term
liabilities:
|
|
|
|
|
Operating lease
liability
|
|
4,920
|
|
3,282
|
Finance lease
liability
|
|
283
|
|
145
|
Total liabilities
|
|
15,320
|
|
8,624
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
Preferred
stock
|
|
-
|
|
-
|
Common
stock
|
|
36
|
|
34
|
Additional paid-in
capital
|
|
37,235
|
|
9,198
|
Treasury
stock
|
|
(3,846)
|
|
(3,846)
|
Retained
earnings
|
|
23,430
|
|
14,356
|
Total Zynex, Inc. stockholders' equity
|
|
56,855
|
|
19,742
|
Non-controlling interest
|
|
-
|
|
(89)
|
Total stockholders' equity
|
|
56,855
|
|
19,653
|
Total liabilities and stockholders' equity
|
|
$
72,175
|
|
$
28,277
|
ZYNEX,
INC.
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(in thousands,
except per share data)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended December 31,
|
|
For the Years
Ended December 31,
|
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
NET
REVENUE
|
|
|
|
|
|
|
|
|
|
Devices
|
|
$
8,243
|
|
$
3,789
|
|
$
21,269
|
|
$
10,713
|
|
Supplies
|
|
17,362
|
|
10,373
|
|
58,853
|
|
34,759
|
|
Total net
revenue
|
|
25,605
|
|
14,162
|
|
80,122
|
|
45,472
|
|
|
|
|
|
|
|
|
|
|
|
COSTS OF REVENUE
AND OPERATING EXPENSES
|
|
|
|
|
|
|
|
|
|
Costs of revenue -
devices and supplies
|
|
5,659
|
|
2,821
|
|
17,417
|
|
8,814
|
|
Sales and
marketing
|
|
12,320
|
|
4,820
|
|
34,133
|
|
14,855
|
|
General and
administrative
|
|
5,328
|
|
2,790
|
|
18,323
|
|
10,737
|
|
Total costs of
revenue and operating expenses
|
|
23,307
|
|
10,431
|
|
69,873
|
|
34,406
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
|
2,298
|
|
3,731
|
|
10,249
|
|
11,066
|
|
|
|
|
|
|
|
|
|
|
|
Other
income/(expense)
|
|
|
|
|
|
|
|
|
|
Deferred
insurance reimbursement
|
|
-
|
|
-
|
|
-
|
|
880
|
|
Loss on
disposal of non-controlling interest
|
|
(77)
|
|
-
|
|
(77)
|
|
-
|
|
Interest
expense
|
|
(5)
|
|
(6)
|
|
(19)
|
|
(5)
|
|
Other
income/(expense), net
|
|
(82)
|
|
(6)
|
|
(96)
|
|
875
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations before income taxes
|
|
2,216
|
|
3,725
|
|
10,153
|
|
11,941
|
|
Income tax
expense
|
|
428
|
|
778
|
|
1,079
|
|
2,449
|
|
Net Income
|
|
$
1,788
|
|
$
2,947
|
|
$
9,074
|
|
$
9,492
|
|
|
|
|
|
|
|
|
|
|
|
Net income per
share:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
0.05
|
|
$
0.09
|
|
$
0.27
|
|
$
0.29
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
$
0.05
|
|
$
0.09
|
|
$
0.26
|
|
$
0.28
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
basic shares outstanding
|
|
34,780
|
|
32,709
|
|
33,869
|
|
32,439
|
|
Weighted average
diluted shares outstanding
|
|
35,635
|
|
34,101
|
|
34,943
|
|
33,963
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ZYNEX,
INC.
|
Reconciliation of
GAAP to Non-GAAP Measures
|
(in
thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended December 31,
|
|
For the Years
Ended December 31,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Adjusted
EBITDA:
|
|
|
|
|
|
|
|
Net income
|
$
1,788
|
|
$
2,947
|
|
$
9,074
|
|
$
9,492
|
Depreciation and
Amortization
|
272
|
|
60
|
|
742
|
|
253
|
Stock-based
compensation expense
|
875
|
|
264
|
|
2,681
|
|
820
|
Interest
expense and other, net
|
82
|
|
6
|
|
96
|
|
(875)
|
Income
tax expense
|
428
|
|
778
|
|
1,079
|
|
2,449
|
Adjusted
EBITDA
|
$
3,445
|
|
$
4,055
|
|
$
13,672
|
|
$
12,139
|
% of Net
Revenue
|
13%
|
|
29%
|
|
17%
|
|
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