Reports fourth quarter 2020 revenue of $8.5 million, GAAP diluted EPS of $0.05 and non-GAAP diluted EPS of $0.07 Reports combined cash and investments of $52.0 million as of December 31, 2020
- Reports fourth quarter 2020 revenue of $8.5 million, GAAP diluted EPS of $0.05 and non-GAAP diluted EPS of $0.07
- Reports combined cash and investments of $52.0 million as of December 31, 2020
WINTER SPRINGS, Fla., Feb. 04, 2021 (GLOBE NEWSWIRE) -- IRadimed Corporation (the “Company”) (NASDAQ: IRMD), a leader in the development of innovative magnetic resonance imaging (“MRI”) medical devices and the only known provider of a non-magnetic intravenous (“IV”) infusion pump system, and non-magnetic patient vital signs monitoring systems that are designed for use during MRI procedures, today announced financial results for the three months and year ended December 31, 2020.
“On a sequential basis, revenue for the fourth quarter 2020 was up 11% over the third quarter. Additionally, bookings for the current quarter were within approximately 1.2% from the fourth quarter last year, which was our highest bookings quarter in our history. I view these as positive trends and expect they will continue into the new year. However, we remain cautious about the first half of 2021,” said Roger Susi, President and Chief Executive Officer of the Company.
“I would also like to thank everyone at IRADIMED for remaining agile during a very challenging time. I am proud of the team and their efforts this year,” said Susi.
Three Months Ended December 31, 2020
For the fourth quarter ended December 31, 2020, the Company reported revenue of $8.5 million compared to $10.9 million for the fourth quarter 2019. Net income was $0.6 million, or $0.05 per diluted share, compared to $3.2 million, or $0.26 per diluted share for the fourth quarter 2019.
Non-GAAP net income was $0.9 million for the quarter ended December 31, 2020, which excludes $0.2 million of stock compensation expense, net of tax expense. Non-GAAP net income for the quarter ended December 31, 2019 was $3.7 million, which excludes $0.4 million of stock compensation expense, net of tax expense. Non-GAAP earnings per diluted share was $0.07 for the fourth quarter 2020, compared to $0.30 for the fourth quarter 2019.
Year Ended December 31, 2020
For the year ended December 31, 2020, the Company reported revenue of $31.7 million compared to $38.5 million for the same period in 2019. Net income was $1.4 million, or $0.11 per diluted share, compared to net income of $9.6 million, or $0.78 per diluted share for the same period in 2019.
During the year ended December 31, 2020, the Company recognized total general and administrative expense of $3.2 million related to our former CEO, of which $2.7 million relates to the separation costs.
Non-GAAP net income was $5.0 million for the year ended December 31, 2020, which excludes $1.3 million of on-going stock compensation expense, net of tax expense, and $2.4 million of expense, net of tax, related to the separation of our former CEO. Non-GAAP net income for the year ended December 31, 2019 was $10.5 million, which excludes $1.4 million of stock compensation expense, net of tax expense and a $0.6 million reduction to non-GAAP net income resulting from an infrequent tax item related to excess tax benefits recognized in the provision for income taxes for the exercise and sale of certain incentive stock options. Non-GAAP earnings per diluted share was $0.40 for the year ended December 31, 2020, compared to $0.85 for the same period in 2019.
Revenue Information:
| Three Months Ended December 31, | Years Ended December 31, | ||||||||||||
| 2020 | 2019 | 2020 | 2019 | ||||||||||
| (unaudited) | (unaudited) | ||||||||||||
| Devices: | |||||||||||||
| MRI Compatible IV Infusion Pump Systems | $ | 2,667,237 | $ | 4,539,858 | $ | 9,360,929 | $ | 18,052,406 | |||||
| MRI Compatible Patient Vital Signs Monitoring Systems | 2,663,956 | 3,493,705 | 9,763,075 | 9,709,233 | |||||||||
| Total Devices revenue | 5,331,193 | 8,033,563 | 19,124,004 | 27,761,639 | |||||||||
| Disposables, service and other | 2,723,547 | 2,401,792 | 10,723,847 | 8,914,822 | |||||||||
| Amortization of extended warranty agreements | 491,303 | 455,298 | 1,869,521 | 1,840,680 | |||||||||
| Total revenue | $ | 8,546,043 | $ | 10,890,653 | $ | 31,717,372 | $ | 38,517,141 | |||||
For the fourth quarter 2020, domestic sales were 83.1 percent of total revenue, compared to 73.6 percent for the fourth quarter 2019. Gross profit margin was 75.3 percent for the fourth quarter 2020, compared to 74.8 percent for the fourth quarter 2019.
For the year ended December 31, 2020, domestic sales were 77.4 percent of total revenue, compared to 80.3 percent for the same period in 2019. Gross profit margin was 74.3 percent for the year ended December 31, 2020, compared to 77.1 percent for the same period in 2019.
Cash Flow and Balance Sheet:
For the year ended December 31, 2020, cash from operations was $5.8 million, compared to $10.2 million for the same period in 2019.
For the fourth quarter ended December 31, 2020, free cash flow was $2.4 million, compared to $3.8 million for the fourth quarter 2019. For the year ended December 31, 2020, free cash flow was $5.4 million, compared to $9.9 million for the same period in 2019.
As of December 31, 2020, the Company had combined cash and investments of $52.0 million.
Financial Guidance
Significant uncertainty remains regarding the impact of COVID-19 on the Company’s financial results. Accordingly, the Company believes it is prudent to refrain from providing financial guidance at this time. The Company continues to monitor the circumstances around the pandemic and will provide financial guidance once there is more certainty around the pandemic’s impact on its business.
Use of non-GAAP Financial Measures
The Company believes the use of non-GAAP net income, free cash flow and infrequent income tax items are helpful to our investors. These measures, which we refer to as our non-GAAP financial measures, are not prepared in accordance with U.S. GAAP.
We calculate non-GAAP net income as net income excluding (1) stock-based compensation expense, net of tax. Because of varying available valuation methodologies, subjective assumptions and the variety of equity instruments that can impact a company’s non-cash expenses, we believe that providing non-GAAP financial measures that exclude stock-based compensation expense allows for meaningful comparisons between our operating results from period to period; (2) operating expenses, net of tax, that we believe are not indicative of the Company’s on-going core operating performance, and; (3) infrequent tax items are considered based on their nature and are excluded from the provision for income taxes as these costs or benefits are not indicative of our normal or future provision for income taxes. We calculate free cash flow as net cash provided by operating activities, less net cash used in investing activities for purchases of property and equipment.
We consider free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by our business that can be used for strategic opportunities, including investing in our business, making strategic acquisitions, strengthening our balance sheet and returning cash to our shareholders via share repurchases.
All of our non-GAAP financial measures are important tools for financial and operational decision making and for evaluating our on-going core operating results.
A reconciliation of the non-GAAP financial measures used in this release to the most comparable U.S. GAAP measures for the respective periods can be found in the table later in this release immediately following the condensed statements of cash flows. These non-GAAP financial measures should not be considered in isolation or as a substitute for a measure of the Company’s operating performance or liquidity prepared in accordance with U.S. GAAP and are not indicative of net income or cash provided by operating activities.
Conference Call
IRADIMED has scheduled a conference call to discuss this announcement beginning at 11:00 a.m. Eastern Time today, February 4, 2021. Individuals interested in listening to the conference call may do so by dialing 1-844-413-1781 for domestic callers, or 1-716-247-5767 for international callers, and entering the reservation code 5668209.
The conference call will also be available real-time via the internet at http://www.iradimed.com/en-us/investors/events/. A recording of the call will be available on the Company’s website following the completion of the call.
About IRADIMED CORPORATION
IRADIMED CORPORATION is a leader in the development of innovative magnetic resonance imaging (“MRI”) compatible medical devices. We are the only known provider of a non-magnetic intravenous (“IV”) infusion pump system that is specifically designed to be safe for use during MRI procedures. We were the first to develop an infusion delivery system that largely eliminates many of the dangers and problems present during MRI procedures. Standard infusion pumps contain magnetic and electronic components which can create radio frequency interference and are dangerous to operate in the presence of the powerful magnet that drives an MRI system. Our patented MRidium® MRI compatible IV infusion pump system has been designed with a non-magnetic ultrasonic motor, uniquely designed non-ferrous parts and other special features to safely and predictably deliver anesthesia and other IV fluids during various MRI procedures. Our pump solution provides a seamless approach that enables accurate, safe and dependable fluid delivery before, during and after an MRI scan, which is important to critically-ill patients who cannot be removed from their vital medications, and children and infants who must generally be sedated to remain immobile during an MRI scan.
Our 3880 MRI compatible patient vital signs monitoring system has been designed with non-magnetic components and other special features to safely and accurately monitor a patient’s vital signs during various MRI procedures. The IRADIMED 3880 system operates dependably in magnetic fields up to 30,000 gauss, which means it can operate virtually anywhere in the MRI scanner room. The IRADIMED 3880 has a compact, lightweight design allowing it to travel with the patient from their critical care unit, to the MRI and back, resulting in increased patient safety through uninterrupted vital signs monitoring and decreasing the amount of time critically ill patients are away from critical care units. The features of the IRADIMED 3880 include: wireless ECG with dynamic gradient filtering; wireless SpO2 using Masimo® algorithms; non-magnetic respiratory CO2; invasive and non-invasive blood pressure; patient temperature, and; optional advanced multi-gas anesthetic agent unit featuring continuous Minimum Alveolar Concentration measurements. The IRADIMED 3880 MRI compatible patient vital signs monitoring system has an easy-to-use design and allows for the effective communication of patient vital signs information to clinicians.
For more information please visit www.iradimed.com.
Forward-Looking Statements
This press release contains forward-looking statements as defined in the Private Securities Litigation Act of 1995, particularly statements regarding our expectations, beliefs, plans, intentions, future operations, financial condition and prospects, and business strategies. These statements relate to future events or our future financial performance or condition and involve unknown risks, uncertainties and other factors that could cause our actual results, level of activity, performance or achievement to differ materially from those expressed or implied by these forward-looking statements. The risks and uncertainties referred to above include, but are not limited to, risks associated with the Company’s ability to receive an EC Certificate or CE Mark for our existing products and product candidates, receive FDA 510(k) clearance for new products and product candidates; unexpected costs, delays or diversion of management’s attention associated with the design, manufacture or sale of new products; the Company’s ability to implement successful sales techniques for existing and future products and evaluate the effectiveness of its sales techniques; additional actions, warnings or requests from the FDA or other regulatory bodies; our significant reliance on a limited number of products; potential disruptions in our limited supply chain for our products; a reduction in international distribution; actions of the FDA or other regulatory bodies that could delay, limit or suspend product development, manufacturing or sales; the effect of recalls, patient adverse events or deaths on our business; difficulties or delays in the development, production, manufacturing and marketing of new or existing products and services; changes in laws and regulations or in the interpretation or application of laws or regulations.
Further information on these and other factors that could affect the Company’s financial results is included in filings we make with the Securities and Exchange Commission from time to time. All forward-looking statements are based on information available to us on the date hereof, and we assume no obligation to update forward-looking statements.
IRADIMED CORPORATION
CONDENSED BALANCE SHEETS
| December 31, 2020 | December 31, 2019 | |||||
| (unaudited) | ||||||
| ASSETS | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | $ | 50,068,728 | $ | 43,481,781 | ||
| Accounts receivable, net | 4,574,932 | 7,293,303 | ||||
| Investments | 1,909,368 | 2,768,287 | ||||
| Inventory, net | 3,933,987 | 3,641,561 | ||||
| Prepaid expenses and other current assets | 771,666 | 407,802 | ||||
| Prepaid income taxes | 2,477,211 | 1,370,947 | ||||
| Total current assets | 63,735,892 | 58,963,681 | ||||
| Property and equipment, net | 2,120,148 | 2,053,806 | ||||
| Intangible assets, net | 960,885 | 860,087 | ||||
| Operating lease right-of-use asset | 2,715,030 | 2,955,873 | ||||
| Deferred income taxes, net | 1,272,672 | 1,663,415 | ||||
| Other assets | 261,993 | 232,002 | ||||
| Total assets | $ | 71,066,620 | $ | 66,728,864 | ||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||
| Current liabilities: | ||||||
| Accounts payable | $ | 657,054 | $ | 993,742 | ||
| Accrued payroll and benefits | 1,714,782 | 2,166,209 | ||||
| Other accrued taxes | 103,981 | 596,576 | ||||
| Warranty reserve | 90,054 | 81,761 | ||||
| Deferred revenue | 1,949,259 | 1,671,420 | ||||
| Current portion of operating lease liability | 255,698 | 240,843 | ||||
| Other current liabilities | 146,435 | 108,421 | ||||
| Total current liabilities | 4,917,263 | 5,858,972 | ||||
| Deferred revenue | 2,305,413 | 2,630,467 | ||||
| Operating lease liability | 2,459,332 | 2,715,030 | ||||
| Total liabilities | 9,682,008 | 11,204,469 | ||||
| Stockholders’ equity: | ||||||
| Common stock | 1,231 | 1,177 | ||||
| Additional paid-in capital | 23,676,843 | 19,192,394 | ||||
| Retained earnings | 37,669,451 | 36,300,450 | ||||
| Accumulated other comprehensive income | 37,087 | 30,374 | ||||
| Total stockholders’ equity | 61,384,612 | 55,524,395 | ||||
| Total liabilities and stockholders’ equity | $ | 71,066,620 | $ | 66,728,864 | ||
IRADIMED CORPORATION
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
| Three Months Ended December 31, | Years Ended December 31, | |||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||
| Revenue | $ | 8,546,043 | $ | 10,890,653 | $ | 31,717,372 | $ | 38,517,141 | ||||
| Cost of revenue | 2,106,609 | 2,741,838 | 8,142,962 | 8,816,161 | ||||||||
| Gross profit | 6,439,434 | 8,148,815 | 23,574,410 | 29,700,980 | ||||||||
| Operating expenses: | ||||||||||||
| General and administrative | 2,206,990 | 2,968,476 | 12,269,079 | 10,451,266 | ||||||||
| Sales and marketing | 3,068,700 | 2,562,113 | 10,158,892 | 9,169,590 | ||||||||
| Research and development | 512,718 | 379,310 | 1,902,530 | 1,432,719 | ||||||||
| Total operating expenses | 5,788,408 | 5,909,899 | 24,330,501 | 21,053,575 | ||||||||
| Income (loss) from operations | 651,026 | 2,238,916 | (756,091 | ) | 8,647,405 | |||||||
| Other income, net | 13,507 | 115,249 | 139,213 | 395,912 | ||||||||
| Income (loss) before provision for income taxes | 664,533 | 2,354,165 | (616,878 | ) | 9,043,317 | |||||||
| Provision for income tax expense (benefit) | 27,119 | (887,518 | ) | (1,985,879 | ) | (587,642 | ) | |||||
| Net income | $ | 637,414 | $ | 3,241,683 | $ | 1,369,001 | $ | 9,630,959 | ||||
| Net income per share: | ||||||||||||
| Basic | $ | 0.05 | $ | 0.28 | $ | 0.11 | $ | 0.85 | ||||
| Diluted | $ | 0.05 | $ | 0.26 | $ | 0.11 | $ | 0.78 | ||||
| Weighted average shares outstanding: | ||||||||||||
| Basic | 12,279,999 | 11,559,526 | 12,123,556 | 11,282,214 | ||||||||
| Diluted | 12,514,348 | 12,345,968 | 12,440,086 | 12,276,444 | ||||||||
IRADIMED CORPORATION
CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
| Years Ended December 31, | ||||||
| 2020 | 2019 | |||||
| Operating activities: | ||||||
| Net income | $ | 1,369,001 | $ | 9,630,959 | ||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
| Change in allowance for doubtful accounts | 27,884 | 31,338 | ||||
| Change in provision for excess and obsolete inventory | (87,178 | ) | 48,114 | |||
| Depreciation and amortization | 1,338,824 | 1,242,325 | ||||
| Disposal of property and equipment | 6,496 | — | ||||
| Stock-based compensation | 3,962,021 | 1,854,965 | ||||
| Deferred income taxes, net | 389,932 | (596,755 | ) | |||
| Gain on maturities of investments | (17,272 | ) | (10,764 | ) | ||
| Changes in operating assets and liabilities: | ||||||
| Accounts receivable | 2,690,487 | (3,114,649 | ) | |||
| Inventory | (282,904 | ) | 123,680 | |||
| Prepaid expenses and other current assets | (1,098,908 | ) | (487,650 | ) | ||
| Other assets | (65,187 | ) | (171,002 | ) | ||
| Accounts payable | (403,567 | ) | 149,319 | |||
| Accrued payroll and benefits | (451,427 | ) | 363,888 | |||
| Other accrued taxes | (492,595 | ) | 463,576 | |||
| Warranty reserve | 8,293 | 7,237 | ||||
| Deferred revenue | (12,202 | ) | 700,348 | |||
| Other current liabilities | 38,014 | — | ||||
| Prepaid income taxes | (1,106,264 | ) | (3,055 | ) | ||
| Other | 4,048 | 859 | ||||
| Net cash provided by operating activities | 5,817,496 | 10,232,733 | ||||
| Investing activities: | ||||||
| Proceeds from maturities of investments | 883,715 | 3,687,000 | ||||
| Purchases of property and equipment | (443,003 | ) | (368,281 | ) | ||
| Capitalized intangible assets | (193,743 | ) | (117,531 | ) | ||
| Net cash provided by investing activities | 246,969 | 3,201,188 | ||||
| Financing activities: | ||||||
| Proceeds from exercises of stock options | 1,730,100 | 2,493,315 | ||||
| Taxes paid related to net share settlement of equity awards | (1,207,618 | ) | (473,143 | ) | ||
| Net cash provided by financing activities | 522,482 | 2,020,172 | ||||
| Net increase in cash and cash equivalents | 6,586,947 | 15,454,093 | ||||
| Cash and cash equivalents, beginning of period | 43,481,781 | 28,027,688 | ||||
| Cash and cash equivalents, end of period | $ | 50,068,728 | $ | 43,481,781 | ||
IRADIMED CORPORATION
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED)
Non-GAAP Net Income and Diluted EPS
| Three Months Ended December 31, | Years Ended December 31, | ||||||||||||
| 2020 | 2019 | 2020 | 2019 | ||||||||||
| Net income | $ | 637,414 | $ | 3,241,683 | $ | 1,369,001 | $ | 9,630,959 | |||||
| Excluding: | |||||||||||||
| Stock-based compensation expense, net of tax expense | 240,261 | 412,443 | 1,308,734 | 1,394,748 | |||||||||
| Separation expenses, net of tax1 | — | — | 2,353,964 | — | |||||||||
| Infrequent tax item2 | — | — | — | (564,810 | ) | ||||||||
| Non-GAAP net income | $ | 877,675 | $ | 3,654,126 | $ | 5,031,699 | $ | 10,460,897 | |||||
| Weighted-average shares outstanding – diluted | 12,514,348 | 12,345,968 | 12,440,086 | 12,276,444 | |||||||||
| Non-GAAP net income per share – diluted | $ | 0.07 | $ | 0.30 | $ | 0.40 | $ | 0.85 | |||||
1 Separation expenses recognized pursuant to a separation agreement as described in Exhibit 10.1 to Form 8-K filed with the Securities and Exchange Commission on June 16, 2020.
2 The infrequent tax item is related to the excess tax benefits recognized in the provision for income taxes associated with the exercise and sale of certain incentive stock options.
Free Cash Flow
| Three Months Ended December 31, | Years Ended December 31, | |||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||
| Net cash provided by operating activities | $ | 2,496,068 | $ | 3,948,859 | $ | 5,817,496 | $ | 10,232,733 | ||||
| Less: | ||||||||||||
| Purchases of property and equipment | 93,720 | 171,912 | 443,003 | 368,281 | ||||||||
| Free cash flow | $ | 2,402,348 | $ | 3,776,947 | $ | 5,374,493 | $ | 9,864,452 | ||||
Media Contact:
Chris Scott
Chief Financial Officer
IRADIMED CORPORATION
(407) 677-8022
InvestorRelations@iradimed.com
