ENGLEWOOD, Colo., April 27,
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 first quarter ended March 31, 2023.
First Quarter 2023 Highlights:
- Revenue increased 36% year-over-year to $42.2 million
- Net income of $1.6 million;
Diluted EPS $0.04
- Orders increased 61% year-over-year; highest number of orders
in Company history for the 4th consecutive quarter
First Quarter 2023 Financial Results Summary:
For the first quarter, the Company reported net revenue of
$42.2 million, a 36% increase over
first quarter of 2022. Gross margins were 78% and net income was
$1.6 million, a 14% increase
year-over-year.
As of March 31, 2023, the Company
had working capital of $44.1 million.
Cash on hand was $16.8 million at the
end of the first quarter. The Company produced $1.9 million in cash from operations in the first
quarter of 2023, an increase of 10% compared to the same period in
2022. The Company completed the latest stock buyback by
repurchasing $3.4 million of its
common stock during the first quarter and has repurchased
$30 million over the past year.
President and CEO Commentary:
"We were pleased to begin 2023 with a strong performance and
post the fourth straight quarter of record-high order numbers,"
said Thomas Sandgaard, President and
CEO. "Our revenue increased 36% year-over-year despite the cyclical
slowdown in the first quarter when insurance deductibles reset,
further evidence that our sales team is more efficient than ever.
We look forward to a productive year with consistent growth and
intend to announce additional catalysts in our monitoring division
later in the year."
Second Quarter and Full Year 2023 Guidance
2023 estimates are unchanged with revenue ranging from
$180 - $200
million and 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.
Second quarter 2023 revenue is estimated to range between
$43.5 - $45.5
million, an increase of approximately 21% from Q2 2022.
Second quarter Diluted EPS is estimated to range between
$0.03- $0.07.
Conference Call and Webcast Details
Thursday, April 27,
2023 at 2:15 p.m. MT / 4:15 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://app.webinar.net/brLKVKJWPYk
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, 2022 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.
|
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
(AMOUNTS IN
THOUSANDS)
|
|
|
(unaudited)
|
|
|
March
31,
|
|
December
31,
|
|
|
2023
|
|
2022
|
|
|
ASSETS
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash
|
|
$
16,792
|
|
|
$
20,144
|
|
Accounts receivable,
net
|
|
32,060
|
|
|
35,063
|
|
Inventory,
net
|
|
14,184
|
|
|
13,484
|
|
Prepaid expenses and
other
|
|
2,130
|
|
|
868
|
|
Total current assets
|
|
65,166
|
|
|
69,559
|
|
|
|
|
|
|
|
Property and equipment,
net
|
|
2,281
|
|
|
2,175
|
|
Operating lease
asset
|
|
11,888
|
|
|
12,841
|
|
Finance lease
asset
|
|
240
|
|
|
270
|
|
Deposits
|
|
683
|
|
|
591
|
|
Intangible assets, net
of accumulated amortization
|
|
8,843
|
|
|
9,067
|
|
Goodwill
|
|
20,401
|
|
|
20,401
|
|
Deferred income
taxes
|
|
1,554
|
|
|
1,562
|
|
Total assets
|
|
$
111,056
|
|
|
$
116,466
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Accounts payable and
accrued expenses
|
|
5,650
|
|
|
5,601
|
|
Cash dividends
payable
|
|
16
|
|
|
16
|
|
Operating lease
liability
|
|
2,003
|
|
|
2,476
|
|
Finance lease
liability
|
|
127
|
|
|
128
|
|
Income taxes
payable
|
|
2,015
|
|
|
1,995
|
|
Current portion of
debt
|
|
5,333
|
|
|
5,333
|
|
Accrued payroll and
related taxes
|
|
5,915
|
|
|
5,537
|
|
Total current liabilities
|
|
21,059
|
|
|
21,086
|
|
Long-term
liabilities:
|
|
|
|
|
|
|
Long-term portion of
debt, less issuance costs
|
|
3,964
|
|
|
5,293
|
|
Contingent
consideration
|
|
8,600
|
|
|
10,000
|
|
Operating lease
liability
|
|
12,788
|
|
|
13,541
|
|
Finance lease
liability
|
|
159
|
|
|
188
|
|
Total liabilities
|
|
46,570
|
|
|
50,108
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
Common
stock
|
|
39
|
|
|
39
|
|
Additional paid-in
capital
|
|
82,343
|
|
|
82,431
|
|
Treasury
stock
|
|
(36,513)
|
|
|
(33,160)
|
|
Retained
earnings
|
|
18,617
|
|
|
17,048
|
|
Total stockholders' equity
|
|
64,486
|
|
|
66,358
|
|
Total liabilities and stockholders' equity
|
|
$
111,056
|
|
|
$
116,466
|
|
|
|
|
|
|
|
|
|
ZYNEX,
INC.
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
|
|
(AMOUNTS IN
THOUSANDS, EXCEPT PER SHARE DATA)
|
|
(unaudited)
|
|
|
|
|
|
|
|
For the Three Months
Ended March 31,
|
|
|
2023
|
|
2022
|
|
NET
REVENUE
|
|
|
|
|
|
Devices
|
|
$
11,944
|
|
$
6,725
|
|
Supplies
|
|
30,226
|
|
24,358
|
|
Total net
revenue
|
|
42,170
|
|
31,083
|
|
|
|
|
|
|
COSTS OF REVENUE AND
OPERATING EXPENSES
|
|
|
|
|
|
Costs of revenue -
devices and supplies
|
|
9,269
|
|
6,921
|
|
Sales and
marketing
|
|
21,227
|
|
14,424
|
|
General and
administrative
|
|
11,390
|
|
7,832
|
|
Total costs of revenue
and operating expenses
|
|
41,886
|
|
29,177
|
|
|
|
|
|
|
Income from
operations
|
|
284
|
|
1,906
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
Gain on
sale of fixed assets
|
|
2
|
|
-
|
|
Change in
fair value of contingent consideration
|
|
1,400
|
|
200
|
|
Interest
expense
|
|
(84)
|
|
(124)
|
|
Other income,
net
|
|
1,318
|
|
76
|
|
|
|
|
|
|
Income from operations
before income taxes
|
|
1,602
|
|
1,982
|
|
Income tax
expense
|
|
33
|
|
605
|
|
Net income
|
|
$
1,569
|
|
$
1,377
|
|
|
|
|
|
|
Net income per
share:
|
|
|
|
|
|
Basic
|
|
$
0.04
|
|
$
0.03
|
|
Diluted
|
|
$
0.04
|
|
$
0.03
|
|
|
|
|
|
|
Weighted average basic
shares outstanding
|
|
36,694
|
|
39,765
|
|
Weighted average
diluted shares outstanding
|
|
37,442
|
|
41,188
|
|
|
|
|
|
|
|
|
ZYNEX,
INC.
|
|
Reconciliation of
GAAP to Non-GAAP Measures
|
|
(in
thousands)
|
|
(unaudited)
|
|
|
|
|
|
For the Three Months
Ended March 31,
|
|
2023
|
|
2022
|
|
Adjusted
EBITDA:
|
|
|
|
|
Net income
|
$
1,569
|
|
$
1,377
|
|
Depreciation and
Amortization*
|
423
|
|
396
|
|
Stock-based
compensation expense
|
307
|
|
589
|
|
Interest expense and other (gain), net
|
(1,318)
|
|
(76)
|
|
Non-cash lease expense **
|
-
|
|
183
|
|
Income tax expense
|
33
|
|
605
|
|
Adjusted
EBITDA
|
$
1,014
|
|
$
3,074
|
|
% of Net
Revenue
|
2 %
|
|
10 %
|
|
|
|
|
|
* Depreciation does not
include amounts related to units on lease to third parties which
are depreciated and included in cost of goods sold.
|
|
** Amount expensed on
new company headquarters in excess of cash payments due to abated
rent
|
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SOURCE Zynex