ENGLEWOOD, Colo., March 13,
2023 /PRNewswire/ -- Zynex, Inc. (Nasdaq:
ZYXI) an innovative medical technology company specializing in
the manufacture and sale of non-invasive medical devices for pain
management, rehabilitation, and patient monitoring, today reported
financial results for the fourth quarter and full year ended
December 31, 2022.
- 2022 Fourth Quarter
Highlights:
-
-
- Orders increased 48%; highest number of orders in Company
history for the 3rd consecutive quarter
- Revenue increased 21% year over year to $48.8 million
- Net income of $7.5 million;
Diluted EPS $0.20
- Adjusted EBITDA of $11.4
million
- 2022 Full Year Highlights:
-
-
- Orders increased 23%
- Revenue increased 21% year over year to $158.2 million
- Net income of $17.0 million;
Diluted EPS of $0.44
- Adjusted EBITDA increased 5% to $28.1
million
- 7th straight year of profitability
Fourth Quarter Financial Results Summary:
For the fourth quarter, the Company reported net revenue of
$48.8 million, a 21% increase over
fourth quarter of 2021. Gross margins were 81% and net income was
$7.5 million, a 53% increase from Q3
2022.
As of December 31, 2022, the
Company had working capital of $48.5
million. Cash on hand was $20.1
million at the end of the fourth quarter. The Company
produced $13.7 million in cash from
operations in 2022, an increase of 98% compared to 2021.
President and CEO Commentary:
"We had a strong end to a record setting 2022, marked by
increased revenue and orders every single quarter," said
Thomas Sandgaard, President and CEO.
"Our operating cash flows allowed us to buy back over $26 million of our common stock during 2022 which
benefits all shareholders. Additionally, Zynex Monitoring Solutions
(ZMS) is making significant progress with clinical data collection,
and we expect to hit several regulatory milestones in 2023. We look
forward to maintaining shareholder value through continued
financial health and double-digit growth going forward."
First Quarter and Full Year 2023 Guidance
Full year 2023 revenue is estimated to range between
$180 - $200
million and with Diluted EPS of $0.40 - $0.50 per
share. The revenue range is based on our best estimates of labor
market conditions and sales rep productivity. Diluted EPS is
impacted by increased operating expenses to support ZMS as the
Laser-based Pulse Oximetry products are prepared for FDA submission
and the fluid monitor is readied for the market.
First quarter 2023 revenue is estimated to range between
$39.0 - $41.0
million, an increase of approximately 29% from Q1 2022.
First quarter revenue is affected by the resetting of health
insurance deductibles in the beginning of a calendar year,
seasonably lower revenues in the first quarter are a historical
trend for Zynex and an industry norm. First quarter Diluted EPS is
estimated to range between $0.00-
$0.03.
Conference Call and Webcast Details
Monday, March 13,
2023 at 6:30 a.m. MT / 8:30 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://app.webinar.net/v2J4N7gNEw7
US Participant Dial In (TOLL FREE):
1-844-825-9790
International Participant Dial In: 1-412-317-5170
Canada Participant Dial In (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, develops,
manufactures, markets, and sells medical devices used for pain
management and rehabilitation as well as non-invasive fluid,
sepsis, and laser-based pulse oximetry monitoring systems for use
in hospitals. 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 C.E. 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, 2021 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:
Gilmartin Group
Investor Relations Counsel
ir@zynex.com
ZYNEX,
INC.
|
CONSOLIDATED BALANCE
SHEETS
|
(in
thousands)
|
(unaudited)
|
|
December
31,
|
|
December
31,
|
|
2022
|
|
2021
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash
|
|
$
20,144
|
|
$
42,612
|
Accounts receivable,
net
|
|
35,063
|
|
28,632
|
Inventory,
net
|
|
13,484
|
|
10,756
|
Prepaid expenses and
other
|
|
868
|
|
689
|
Total current assets
|
|
69,559
|
|
82,689
|
|
|
|
|
|
Property and equipment,
net
|
|
2,175
|
|
2,186
|
Operating lease
asset
|
|
12,841
|
|
16,338
|
Finance lease
asset
|
|
270
|
|
389
|
Deposits
|
|
591
|
|
585
|
Intangible assets, net
of accumulated amortization
|
|
9,067
|
|
9,975
|
Goodwill
|
|
20,401
|
|
20,401
|
Deferred income
taxes
|
|
1,562
|
|
711
|
Total assets
|
|
$
116,466
|
|
$
133,274
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts payable and
accrued expenses
|
|
$
5,601
|
|
$
4,739
|
Cash dividends
payable
|
|
16
|
|
3,629
|
Operating lease
liability
|
|
2,476
|
|
2,859
|
Finance lease
liability
|
|
128
|
|
118
|
Income taxes
payable
|
|
1,995
|
|
2,296
|
Current portion of
debt
|
|
5,333
|
|
5,333
|
Accrued payroll and
related taxes
|
|
5,537
|
|
3,897
|
Total current liabilities
|
|
21,086
|
|
22,871
|
Long-term
liabilities:
|
|
|
|
|
Long-term portion of
debt, less issuance costs
|
|
5,293
|
|
10,605
|
Contingent
consideration
|
|
10,000
|
|
9,700
|
Operating lease
liability
|
|
13,541
|
|
15,856
|
Finance lease
liability
|
|
188
|
|
317
|
Total liabilities
|
|
50,108
|
|
59,349
|
|
|
|
|
|
Common
stock
|
|
39
|
|
41
|
Additional paid-in
capital
|
|
82,431
|
|
80,397
|
Treasury
stock
|
|
(33,160)
|
|
(6,513)
|
Retained
earnings
|
|
17,048
|
|
-
|
Total stockholders' equity
|
|
66,358
|
|
73,925
|
Total liabilities and stockholders' equity
|
|
$
116,466
|
|
$
133,274
|
ZYNEX,
INC.
|
CONSOLIDATED
STATEMENTS OF INCOME
|
(in thousands except
per share data)
|
(unaudited)
|
|
|
|
|
|
For the Three Months
Ended December 31,
|
|
For the Years Ended
December 31,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
NET
REVENUE
|
|
|
|
|
|
|
|
Devices
|
$
15,918
|
|
$
13,349
|
|
$
43,497
|
|
$
36,613
|
Supplies
|
32,887
|
|
27,017
|
|
114,670
|
|
93,688
|
Total net
revenue
|
48,805
|
|
40,366
|
|
158,167
|
|
130,301
|
|
|
|
|
|
|
|
|
COSTS OF REVENUE AND
OPERATING EXPENSES
|
|
|
|
|
|
|
|
Costs of revenue -
devices and supplies
|
9,388
|
|
7,331
|
|
32,005
|
|
27,321
|
Sales and
marketing
|
19,166
|
|
13,628
|
|
67,116
|
|
54,290
|
General and
administrative expense
|
10,141
|
|
7,821
|
|
36,108
|
|
26,324
|
Total costs of revenue
and operating expenses
|
38,695
|
|
28,780
|
|
135,229
|
|
107,935
|
|
|
|
|
|
|
|
|
Income from
operations
|
10,110
|
|
11,586
|
|
22,938
|
|
22,366
|
|
|
|
|
|
|
|
|
Other
expense
|
|
|
|
|
|
|
|
Loss on change in fair
value of contingent consideration
|
(300)
|
|
-
|
|
(300)
|
|
-
|
Interest
expense
|
(95)
|
|
(23)
|
|
(440)
|
|
(95)
|
Other
expense
|
(395)
|
|
(23)
|
|
(740)
|
|
(95)
|
|
|
|
|
|
|
|
|
Income from operations
before income taxes
|
9,715
|
|
11,563
|
|
22,198
|
|
22,271
|
Income tax
expense
|
2,263
|
|
2,669
|
|
5,150
|
|
5,168
|
Net Income
|
$
7,452
|
|
$
8,894
|
|
$
17,048
|
|
$
17,103
|
|
|
|
|
|
|
|
|
Net income per
share:
|
|
|
|
|
|
|
|
Basic
|
$
0.20
|
|
$
0.23
|
|
$
0.44
|
|
$
0.45
|
Diluted
|
$
0.20
|
|
$
0.23
|
|
$
0.44
|
|
$
0.44
|
|
|
|
|
|
|
|
|
Weighted average basic
shares outstanding
|
37,236
|
|
38,411
|
|
38,467
|
|
38,317
|
Weighted average
diluted shares outstanding
|
37,960
|
|
39,170
|
|
39,127
|
|
39,197
|
ZYNEX,
INC.
|
Reconciliation of
GAAP to Non-GAAP Measures
|
(in
thousands)
|
(unaudited)
|
|
|
For the Three Months
Ended December 31,
|
|
For the Years Ended
December 31,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Adjusted
EBITDA:
|
|
|
|
|
|
|
|
Net income
|
$
7,452
|
|
$
8,894
|
|
$
17,048
|
|
$
17,103
|
Depreciation and
Amortization*
|
423
|
|
214
|
|
1,648
|
|
925
|
Stock-based
compensation expense
|
640
|
|
589
|
|
2,342
|
|
1,630
|
Restructuring/severance**
|
-
|
|
-
|
|
-
|
|
318
|
Interest
expense and other, net
|
395
|
|
23
|
|
740
|
|
95
|
Non-cash
lease expense ***
|
183
|
|
572
|
|
1,165
|
|
1,428
|
Income tax
expense
|
2,263
|
|
2,669
|
|
5,150
|
|
5,168
|
Adjusted
EBITDA
|
$
11,356
|
|
$
12,961
|
|
$
28,093
|
|
$
26,667
|
% of Net
Revenue
|
23 %
|
|
32 %
|
|
18 %
|
|
20 %
|
|
|
|
|
|
|
|
|
* 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 in excess of cash payments due to abated
rent
|
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SOURCE Zynex