The Company reported net revenue of $6.8M, an 88% increase over Q3-2016 and a 35% increase compared to Q2-2017.
* Revenue grew 88% year over year to $6.8 million
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LONE TREE, Colo., Nov. 13, 2017 /PRNewswire/ -- Zynex (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 third quarter ended September 30, 2017. President and CEO Commentary: Thomas Sandgaard, CEO commented: "I am very excited to report strong net income of $2.2 million in the third quarter which continues our trend of bottom line improvement. Our revenue grew to $6.8 million, an increase of 35% compared to the second quarter and 88% above the third quarter of last year. Our gross profit margin remained 80% versus 76% in Q3-2016. Our focus on processing orders more effectively to improve collections and cost controls to keep fixed expenses low is paying off in terms of positive cash flow and profitability. We currently estimate our fourth quarter revenue to range between $7.0 and $7.5 million with Adjusted EBITDA between $3.0 and $3.5 million. Based on our fourth quarter estimate, our full year 2017 revenue is projected to range from $22.3 to $22.8 million compared to $13.3 million in 2016 and our Adjusted EBITDA for 2017 is projected to be range from $8.6 to $9.1 million compared to $1.3 million in 2016. Our flagship product, the NexWave, is an important technology for physicians to prescribe in today's opioid crisis, allowing patients with debilitating pain access to prescription strength pain relief without side effects. In many cases, our NexWave device should be prescribed as a first-line-of-defense before prescribing medications such as opioids. I am dedicated to promote our technology in order to minimize addiction and other side effects from prescription opioids." Third Quarter Financial Results Summary: The Company reported net revenue of $6.8 million, an 88% increase over Q3-2016 and a 35% increase compared to Q2-2017. For the nine months ended September 30, 2017, total revenue increased 47% to $15.3 million from $10.4 million for the nine months ended September 30, 2016. Cost of revenue increased to $1.3 million from $0.9, million which generated increased gross margins of 80% compared to 76% last year. Gross margins for the nine months ended September 30, 2017 increased to 78% from 73% in 2016. Net income grew 314% to $2.2 million in the third quarter of 2017, compared to $0.5 million last year. For the nine months ended September 30, 2017, net income grew 3003% to $4.1 million from a loss of $0.1 million in 2016. Adjusted EBITDA grew 319% to $3.1 million in the third quarter of 2017 compared to $0.7 million last year. For the nine months ended September 30, 2017, Adjusted EBITDA grew 854% to $5.6 million from $0.6 million in 2016. The Company generated $4.7 million of cash from operations during the first nine months of 2017. As of September 30, 2017, the Company has working capital of $1.2 million compared to a deficit of $4.3 million at December 31, 2016. Webcast Details: Monday, November 13, 2017 at 9:00 a.m. MT - 11:00 a.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/1487/23437 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 additional capital or augment our liquidity in order to continue our business, the success of our international expansion efforts, our ability to engage additional sales representatives and their success, 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, the uncertain outcome of pending material litigation, 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, 2016 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 ZYNEX, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
(unaudited)
September 30, December 31,
2017 2016
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ASSETS
Current assets:
Cash $2,574 $247
Accounts receivable, net 2,409 3,028
Inventory, net 358 107
Prepaid expenses 211 40
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Total current assets 5,552 3,422
Property and equipment, net 338 580
Deposits 86 55
Amortizable intangible assets, net 8 34
Total assets $5,984 $4,091
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Line of credit $ - $2,771
Current portion of unsecured subordinated promissory notes 393 -
Current portion of capital leases 118 118
Accounts payable and accrued expenses 2,092 3,190
Deferred revenue - 54
Accrued payroll and related taxes 905 732
Deferred insurance reimbursement 880 880
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Total current liabilities 4,388 7,745
Long-term liabilities:
Capital leases, less current portion 34 136
Warranty liability 12 12
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Total liabilities 4,434 7,893
Stockholders' equity:
Preferred stock
Common stock 33 31
Additional paid-in capital 7,324 6,032
Accumulated deficit (5,718) (9,776)
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Total Zynex, Inc. stockholders' equity (deficit) 1,639 (3,713)
Non-controlling interest (89) (89)
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Total stockholders' equity (deficit) 1,550 (3,802)
Total liabilities and stockholders' equity $5,984 $4,091
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ZYNEX, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
For the Three Months Ended For the Nine Months Ended
September 30, September 30,
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2017 2016 2017 2016
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NET REVENUE
Product devices $2,316 $2,153 $6,642 $6,835
Product supplies 4,504 1,474 8,656 3,555
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Total revenue 6,820 3,627 15,298 10,390
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COSTS OF REVENUE AND OPERATING EXPENSES
Costs of revenue - rental, product & supply 1,347 880 3,289 2,803
Selling, general and administrative expense 2,538 2,125 6,656 7,465
Total costs of revenue and operating expenses 3,885 3,005 9,945 10,268
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Income from operations 2,935 622 5,353 122
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Other expense
Interest expense (691) (90) (1,206) (262)
Other expense (691) (90) (1,206) (262)
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Income (loss) from operations before income taxes 2,244 532 4,147 (140)
Income tax expense 44 - 89 -
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Net Income (loss) 2,200 532 4,058 (140)
Plus: Net loss - noncontrolling interest - - - -
Net income (loss) - attributable to Zynex, Inc. $2,200 $532 $4,058 $(140)
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Net income (loss) per share attributable to Zynex, Inc.:
Basic $0.07 $0.02 $0.13 $(0.00)
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Diluted $0.07 $0.02 $0.12 $(0.00)
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Weighted average basic shares outstanding 32,327 31,271 31,931 31,271
Weighted average diluted shares outstanding 33,545 31,441 32,790 31,271
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,
2017 2016 2017 2016
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Adjusted EBITDA:
Net income (loss) $2,200 $532 $4,058 $(140)
Depreciation and Amortization 111 96 249 300
Stock-based compensation expense 9 13 46 171
Interest expense 691 90 1,206 262
Income tax expense 44 - 89 -
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Adjusted EBITDA $3,055 $731 $5,648 $593
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45% 20% 37% 6%
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Company Codes: OTC-BB:ZYXI, OTC-PINK:ZYXI, OTC-QB:ZYXI |
