LONE TREE, Colo., April 3, 2017 /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, announces 2016 year-end financial results.
President and CEO Commentary:
Thomas Sandgaard, CEO commented: “2016 was an important period in our turn-around with growth in orders, revenue growth and a return to profitability. Orders grew 86% compared to the prior year and revenue grew 14% in 2016 to $13.3 million. Our fourth quarter 2016 showed net income of $209,000 and the full year net income was $69,000. A strong Gross Profit Margin of 74% combined with our SG&A being flat compared to the prior year was significant in returning to profit.
We continue to see a strong demand for our flagship product, the NexWave, less competition than in prior years and continued strong insurance reimbursement. Going forward we are looking to add more products to this product line and well as continuing to develop and expand our sales force.
Our Monitoring Solutions division is still working with the FDA on our Blood Volume Monitor, a product that can detect blood loss during surgery and internal bleeding during recovery. We believe there is a huge unmet need for monitoring patient fluid balance in hospital settings as well as other applications such as military use in battlefield hemorrhaging.
Subsequent to year end we closed a financing of $1 million on February 28, 2017 and we have used the proceeds to partially pay down on our line of credit and to fuel the production of product needed to keep up with sales orders and sales rep demonstration inventory. The balance on our line of credit at the end of March 2017 was $2.1 million, down $600,000 compared to the beginning of the year. We expect to see an immediate impact in sales order growth as a result of being able to keep up with sales orders. We should be able to estimate the financial impact for the year more accurately in the next few months as we learn more about the actual order growth.”
Summary of Financial Results:
The Company’s net revenue increased 14% to $13,313,000 for 2016, compared to $11,641,000 for the year ended December 31, 2015. The increase was primarily due to increase in orders as a result of hiring additional sales rep early in the year. Cost of Goods Sold decreased from $3,517,000 in 2016 compared to $4,937,000 in 2015 which reflects an increase in Gross Profit Margin to 74% versus 58% in 2015.
The Company reported Selling, General and Administrative (“SG&A”) expenses of $9,156,000 for 2016, compared to $9,185,000 for the year ended December 31, 2015. The Company’s SG&A expenses remained flat year over year while revenue increased, resulting in an improved operating result.
The Company reported net income of $69,000 or less than one cent per share for the full year of 2016 compared to a net loss of $2.9 million in 2015 or nine cents per share.
The Company’s cash and line of credit balance as of December 31, 2016 was $247,000 and $2,771,000, respectively, as compared to cash and line of credit balance as of December 31, 2015 of $8,000 and $4,002,000.
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ZYNEX, INC. | ||||||||
CONSOLIDATED BALANCE SHEET | ||||||||
(AMOUNTS IN THOUSANDS, EXCEPT SHARE DATA) | ||||||||
December 31, | December 31, | |||||||
ASSETS | ||||||||
Current Assets: | ||||||||
Cash | $ | 247 | $ | 8 | ||||
Accounts receivable, net | 3,028 | 2,426 | ||||||
Inventory, net | 107 | 305 | ||||||
Prepaid expenses | 40 | 27 | ||||||
Income tax receivable | ||||||||
Total current assets | 3,422 | 2,766 | ||||||
Property and equipment, net | 580 | 801 | ||||||
Deposits | 55 | 55 | ||||||
Intangible assets, net | 34 | 74 | ||||||
Total assets | $ | 4,091 | $ | 3,696 | ||||
LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY | ||||||||
Current Liabilities: | ||||||||
Line of credit | $ | 2,771 | $ | 4,002 | ||||
Current portion of capital leases | 118 | 109 | ||||||
Accounts payable | 2,879 | 2,477 | ||||||
Deferred revenue | 54 | 89 | ||||||
Deferred insurance reimbursement | 880 | |||||||
Income taxes payable | 79 | 79 | ||||||
Accrued payroll and payroll taxes | 732 | 484 | ||||||
Other accrued liabilities | 232 | 299 | ||||||
Total current liabilities | 7,745 | 7,539 | ||||||
Capitalized leases, less current portion | 136 | 216 | ||||||
Warranty liability | 12 | 12 | ||||||
Total liabilities | 7,893 | 7,767 | ||||||
Stockholders’ (Deficit) Equity: | ||||||||
Preferred stock; $.001 par value, 10,000,000 shares authorized, no shares issued or outstanding | ||||||||
Common stock, $.001 par value, 100,000,000 shares authorized, 31,271,234 shares issued and outstanding | 31 | 31 | ||||||
Paid-in capital | 6,032 | 5,832 | ||||||
Accumulated deficit | (9,776) | (9,845) | ||||||
Total Zynex, Inc. stockholders’ deficit | (3,713) | (3,982) | ||||||
Non-controlling interest | (89) | (89) | ||||||
Total Stockholders’ deficit | (3,802) | (4,071) | ||||||
$ | 4,091 | $ | 3,696 | |||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||
(AMOUNTS IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA) | |||||||||||
YEARS ENDED DECEMBER 31 | |||||||||||
2016 | 2015 | ||||||||||
Net revenue: | |||||||||||
Rental | $ | 4,409 | $ | 2,480 | |||||||
Product and supply | 8,886 | 7,989 | |||||||||
Pharmacy and other | 18 | 1,172 | |||||||||
13,313 | 11,641 | ||||||||||
Operating Expenses | |||||||||||
Cost of revenue rental, product and supply | (3,517) | (4,937) | |||||||||
Cost of revenue noncore inventory write-off | |||||||||||
Selling, general and administrative expenses | (9,156) | (9,185) | |||||||||
Net gain on lease termination | |||||||||||
Loss from operations | 640 | ||||||||||
