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
September 30,
|
|
For the Nine
Months Ended
September 30,
|
|
|
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
|
|
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/zynex-announces-2021-third-quarter-earnings-301414315.html
SOURCE Zynex