ENGLEWOOD, Colo., July 29, 2021 /PRNewswire/ --
- 2021 Second Quarter
-
- Revenue increased 61% year over year to $31.0 million
- Orders increased 247%
- Net income of $2.8 million;
Diluted EPS $0.08
- Adjusted EBITDA $4.8
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 second quarter ended June
30, 2021.
Second Quarter Financial Results Summary:
For the second quarter, the Company reported net revenue of
$31.0 million, a 61% increase over
the second quarter of 2020. Gross margins were 77% in the second
quarter of 2021 and net income was $2.8
million.
Adjusted EBITDA was $4.8 million
in the second quarter of 2021.
As of June 30, 2021 and
December 31, 2020, the Company had
working capital of $52.9 million.
Cash on hand was $32.3 million at the
end of the second quarter. Cash decreased slightly during the
quarter due to the Company spending $2.0
million on its stock buy-back program.
President and CEO Commentary:
Thomas Sandgaard, CEO said: "I am
excited about our order growth in the second quarter of 247% which
will continue to drive increasing revenue in 2021 and 2022. In the
second quarter, we posted revenue of $31.0
million, which is the highest quarterly revenue in the
history of the Company and net income of $2.8 million. We continue to focus on sales rep
productivity and average reps during the period decreased to
approximately 450 due to trimming non-productive reps and slowed
hiring due to a very competitive job market. We have increased the
rate of hiring in Q3 and expect to be well over 500 reps by the end
of the year.
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."
Third Quarter and Full Year 2021 Guidance:
The estimated range for third quarter revenue is
between $34.5 and $36.0 million with Adjusted
EBITDA between $5.0 and $6.0 million. The revenue
estimate is approximately 72% to 80% above 2020 third quarter
revenue of $20.0 million.
Full year 2021 revenue is estimated between $130.0 and $137.5
million with Adjusted EBITDA between $16.5 and $21.5
million. The full year revenue estimate is on the lower end
of previously provided guidance due to a very competitive job
market and therefore fewer sales reps than expected. The full year
revenue estimate is approximately 62% to 72% above 2020 revenue of
$80.1 million.
Conference Call and Webcast Details:
Thursday, July 29,
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/1487/42267
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, 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)
|
|
|
|
|
|
|
June
30,
|
|
December
31,
|
|
2021
|
|
2020
|
|
|
|
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash
|
|
$
32,330
|
|
$
39,173
|
Accounts receivable,
net
|
|
18,310
|
|
13,837
|
Inventory,
net
|
|
9,951
|
|
8,635
|
Prepaid expenses and
other
|
|
1,188
|
|
1,378
|
Total current assets
|
|
61,779
|
|
63,023
|
|
|
|
|
|
Property and
equipment, net
|
|
2,355
|
|
1,925
|
Operating lease
asset
|
|
18,111
|
|
5,993
|
Finance lease
asset
|
|
429
|
|
321
|
Deposits
|
|
584
|
|
347
|
Deferred income
taxes
|
|
440
|
|
566
|
Total assets
|
|
$
83,698
|
|
$
72,175
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts payable and
accrued expenses
|
|
2,652
|
|
4,717
|
Operating lease
liability
|
|
2,367
|
|
2,051
|
Finance lease
liability
|
|
106
|
|
77
|
Income taxes
payable
|
|
403
|
|
280
|
Accrued payroll and
related taxes
|
|
3,363
|
|
2,992
|
Total current liabilities
|
|
8,891
|
|
10,117
|
Long-term
liabilities:
|
|
|
|
|
Operating lease
liability
|
|
17,136
|
|
4,920
|
Finance lease
liability
|
|
371
|
|
283
|
Total liabilities
|
|
26,398
|
|
15,320
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
Preferred
stock
|
|
-
|
|
-
|
Common
stock
|
|
37
|
|
36
|
Additional paid-in
capital
|
|
37,697
|
|
37,235
|
Treasury
stock
|
|
(5,966)
|
|
(3,846)
|
Retained
earnings
|
|
25,532
|
|
23,430
|
Total stockholders' equity
|
|
57,300
|
|
56,855
|
Total liabilities and stockholders' equity
|
|
$
83,698
|
|
$
72,175
|
ZYNEX,
INC.
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(in thousands,
except per share data)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended June 30,
|
|
For the Six Months
Ended June 30,
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
NET
REVENUE
|
|
|
|
|
|
|
|
|
Devices
|
$
7,828
|
|
$
4,281
|
|
$ 14,193
|
|
$
7,725
|
|
Supplies
|
23,194
|
|
14,982
|
|
40,956
|
|
26,766
|
|
Total net
revenue
|
31,022
|
|
19,263
|
|
55,149
|
|
34,491
|
|
|
|
|
|
|
|
|
|
|
COSTS OF REVENUE
AND OPERATING EXPENSES
|
|
|
|
|
|
|
|
|
Costs of revenue -
devices and supplies
|
7,267
|
|
4,061
|
|
13,153
|
|
7,462
|
|
Sales and
marketing
|
13,752
|
|
6,800
|
|
27,579
|
|
12,384
|
|
General and
administrative
|
6,188
|
|
4,317
|
|
11,683
|
|
8,102
|
|
Total costs of
revenue and operating expenses
|
27,207
|
|
15,178
|
|
52,415
|
|
27,948
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
3,815
|
|
4,085
|
|
2,734
|
|
6,543
|
|
|
|
|
|
|
|
|
|
|
Other
expense
|
|
|
|
|
|
|
|
|
Interest
expense
|
(45)
|
|
(5)
|
|
(54)
|
|
(9)
|
|
Other expense,
net
|
(45)
|
|
(5)
|
|
(54)
|
|
(9)
|
|
|
|
|
|
|
|
|
|
|
Income from
operations before income taxes
|
3,770
|
|
4,080
|
|
2,680
|
|
6,534
|
|
Income tax
expense
|
962
|
|
1,063
|
|
578
|
|
580
|
|
Net Income
|
$
2,808
|
|
$
3,017
|
|
$
2,102
|
|
$
5,954
|
|
|
|
|
|
|
|
|
|
|
Net income per
share:
|
|
|
|
|
|
|
|
|
Basic
|
$
0.08
|
|
$
0.09
|
|
$
0.06
|
|
$
0.18
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
$
0.08
|
|
$
0.09
|
|
$
0.06
|
|
$
0.17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
basic shares outstanding
|
34,810
|
|
33,283
|
|
34,824
|
|
33,098
|
|
Weighted average
diluted shares outstanding
|
35,583
|
|
34,454
|
|
35,629
|
|
34,329
|
|
ZYNEX,
INC.
|
Reconciliation of
GAAP to Non-GAAP Measures
|
(in
thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended June 30,
|
|
For the Six Months
Ended June 30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Adjusted
EBITDA:
|
|
|
|
|
|
|
|
Net income
|
$
2,808
|
|
$
3,017
|
|
$
2,102
|
|
$
5,954
|
Depreciation and
Amortization*
|
242
|
|
97
|
|
510
|
|
165
|
Stock-based
compensation expense
|
401
|
|
579
|
|
509
|
|
1,076
|
Restructuring/severance**
|
-
|
|
-
|
|
318
|
|
-
|
Interest
expense and other, net
|
45
|
|
5
|
|
54
|
|
9
|
Non-cash
lease expense ***
|
303
|
|
-
|
|
303
|
|
-
|
Income
tax expense
|
962
|
|
1,063
|
|
578
|
|
580
|
Adjusted
EBITDA
|
$
4,761
|
|
$
4,761
|
|
$
4,374
|
|
$
7,784
|
% of Net
Revenue
|
15%
|
|
25%
|
|
8%
|
|
23%
|
|
|
|
|
|
|
|
|
* 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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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SOURCE Zynex