Zynex Announces 2018 Second Quarter Earnings

Published: Aug 02, 2018

 

ENGLEWOOD, Colo., Aug. 2, 2018 /PRNewswire/ -- Zynex, Inc. (OTCQB: 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, 2018.

President and CEO Commentary:

Thomas Sandgaard, CEO said: "I am pleased to report revenue of $7.6 million in the second quarter with net income of $2.4 million or $0.07 per diluted share. Adjusted EBITDA was $2.8 million and the quarterly revenue was 50% higher than the revenue of the second quarter of 2017. Revenue was up 10% from the $6.9 million recorded in the first quarter of 2018. Orders grew 29% compared to the second quarter 2017 and were 2% higher than the first quarter of 2018. Our cash on hand grew to $6.3 million at the end of the second quarter.

We currently estimate our third quarter revenue to range between $7.7 million and $8.2 million with Adjusted EBITDA between $2.8 million and $3.3 million. The revenue estimate is approximately 13% to 20% above last year's third quarter and the Adjusted EBITDA estimate is in line with third quarter 2017 Adjusted EBITDA of $3.1 million.

We continue to advocate for pain patients and for physicians to prescribe our NexWave technology as the first line of defense in treating chronic acute pain without side effects. We are dedicated to marketing our technology in order to remove patient addiction and other side effects from prescription opioids."

Second Quarter Financial Results Summary:

The Company reported net revenue of $7.6 million, a 50% increase over Q2-2017. Gross margins were 82% in the second quarter of 2018 compared to 80% last year. Net income grew 61% to $2.4 million in the second quarter of 2018, compared to $1.5 million last year.

Adjusted EBITDA grew 41% to $2.8 million in the second quarter of 2018 compared to $2.0 million last year.

The Company generated $3.6 million of cash from operations during the first six months of 2018, an increase of 93% compared to $1.9 million in the first six months of 2017. As of June 30, 2018, the Company had working capital of $7.0 million compared to $4.4 million at December 31, 2017.

Webcast Details: Thursday, August 2, 2018 at 11:00 a.m. MT - 1:00 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/1487/26877

    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 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 earnings available to service debt. 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

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

Certain statements in this release are "forward-looking" and as such are subject to numerous risks and uncertainties. Actual results may vary significantly from the results expressed or implied in such statements. Factors that could cause actual results to materially differ from forward-looking statements include, but are not limited to, the need to obtain FDA clearance and 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 from insurance companies for products sold or rented to our customers, acceptance of our products by health insurance providers, 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 our ability to up-list to a larger exchange and other risks described in our filings with the Securities and Exchange Commission including the "Risk Factors" section of our Annual Report on Form 10-K for the year ended December 31, 2017 as well as Forms 10-Q, 8-K and 8-K/A, press releases and the Company's website. Contact: Zynex, Inc. (303) 703-4906

Investor Relations Contact:
Amato And Partners, LLC
Investor Relations Counsel
admin@amatoandpartners.com

                                                                                         ZYNEX, INC.

                                                                            CONDENSED CONSOLIDATED BALANCE SHEETS

                                                                                        (in thousands)

                                                                                         (unaudited)

                                                                                                                  June 30,            December 31,

                                                                                                                       2018                    2017
                                                                                                                       ----                    ----

                                                                    ASSETS

    Current assets:

    Cash                                                                                                                       $6,285                    $5,565

    Accounts receivable, net                                                                                                  2,863                     2,185

    Inventory, net                                                                                                              518                       423

    Prepaid expenses and other                                                                                                  579                       198
                                                                                                                                ---                       ---

                                               Total current assets                                                          10,245                     8,371


    Property and equipment, net                                                                                                 778                       188

    Deposits                                                                                                                    370                       370
                                                                                                                                ---                       ---

                                               Total assets                                                                   $11,393                    $8,929
                                                                                                                              =======                    ======


                                                     LIABILITIES AND STOCKHOLDERS' EQUITY

    Current liabilities:

    Current portion of unsecured subordinated promissory notes                                                            $         -                     $231

    Current portion of capital leases                                                                                            64                       123

    Accounts payable and accrued expenses                                                                                     1,631                     2,243

    Accrued payroll and related taxes                                                                                           692                       538

    Deferred insurance reimbursement                                                                                            880                       880
                                                                                                                                ---                       ---

                                               Total current liabilities                                                      3,267                     4,015

    Long-term liabilities:

    Deferred rent                                                                                                               443                         -

    Warranty liability                                                                                                           12                        12

    Deferred income taxes                                                                                                       129                         -
                                                                                                                                ---                       ---

                                               Total liabilities                                                              3,851                     4,027


    Stockholders' equity:

      Preferred stock                                                                                                     -                         -

      Common stock                                                                                                               33                        33

      Additional paid-in capital                                                                                              7,881                     7,612

      Treasury stock                                                                                                        (2,211)                    (243)

      Accumulated earnings (deficit)                                                                                          1,928                   (2,411)
                                                                                                                              -----                    ------

                                               Total Zynex, Inc. stockholders' equity                                         7,631                     4,991

                                               Non-controlling interest                                                        (89)                     (89)
                                                                                                                                ---                       ---

                                               Total stockholders' equity                                                     7,542                     4,902

                                               Total liabilities and stockholders' equity                                     $11,393                    $8,929
                                                                                                                              =======                    ======
 

 

                                                                        ZYNEX, INC.

                                                      CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

                                                           (in thousands, except per share data)

                                                                        (unaudited)


                                                                                         For the Three Months Ended   For the Six Months Ended June
                                                                                                June 30,                                  30,
                                                                                                --------                                  ---

                                                                                                     2018               2017                            2018         2017
                                                                                                     ----               ----                            ----         ----

    NET REVENUE

    Devices                                                                                          $1,673             $1,231                          $3,261       $2,615

    Supplies                                                                                        5,900              3,811                          11,189        5,863
                                                                                                    -----              -----                          ------        -----

    Total revenue                                                                                   7,573              5,042                          14,450        8,478
                                                                                                    -----              -----                          ------        -----


    COSTS OF REVENUE AND OPERATING EXPENSES

    Costs of revenue - rental, product & supply                                                     1,330              1,020                           2,566        1,943

    Selling, general and administrative expense                                                     3,528              2,088                           7,213        4,118

    Total costs of revenue and operating expenses                                                   4,858              3,108                           9,779        6,061
                                                                                                    -----              -----                           -----        -----


    Income from operations                                                                          2,715              1,934                           4,671        2,417
                                                                                                    -----              -----                           -----        -----


    Other expense

       Interest expense                                                                              (37)             (394)                          (153)       (515)

    Other expense                                                                                    (37)             (394)                          (153)       (515)
                                                                                                      ---               ----                            ----         ----


    Income from operations before income taxes                                                      2,678              1,540                           4,518        1,902

      Income tax expense                                                                              260                 36                             179           45
                                                                                                      ---                ---                             ---          ---

    Net Income                                                                                      2,418              1,504                           4,339        1,857

    Net income (loss) - non-controlling interest                                               -                    -                              -           -

    Net income - attributable to Zynex, Inc.                                                         $2,418             $1,504                          $4,339       $1,857
                                                                                                     ======             ======                          ======       ======


    Net income per share attributable to Zynex, Inc.:

    Basic                                                                                             $0.07              $0.05                           $0.13        $0.06
                                                                                                      =====              =====                           =====        =====


    Diluted                                                                                           $0.07              $0.05                           $0.13        $0.06
                                                                                                      =====              =====                           =====        =====



    Weighted average basic shares outstanding                                                      32,620             32,048                          32,610       31,790

    Weighted average diluted shares outstanding                                                    34,169             33,262                          34,291       32,413

 

                                             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,

                                       2018                               2017                    2018             2017
                                       ----                               ----                    ----             ----

    Adjusted EBITDA:

    Net income                       $2,418                             $1,504                  $4,339           $1,857

    Depreciation and
     Amortization                        42                                 41                      68              112

    Stock-based compensation
     expense                             53                                 13                     116               37

       Interest expense and
        other, net                       37                                394                     153              515

       Income tax expense               260                                 36                     179               45

    Adjusted EBITDA                  $2,810                             $1,988                  $4,855           $2,566
                                     ======                             ======                  ======           ======

    % of Net Revenue                    37%                               39%                    34%             30%

 

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SOURCE Zynex, Inc.

 
 
Company Codes: OTC-PINK:ZYXI, OTC-QB:ZYXI
 

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