EX-99.1 2 tm2131612d1_ex99-1.htm EXHIBIT 99.1

 

Exhibit 99.1

Zynex Announces 2021 Third Quarter Earnings

 

2021 Third Quarter  
   
  o Revenue increased 74% year over year to $34.8 million
   
  o Orders increased 70%
   
  o Record net income of $6.1 million; Diluted EPS $0.17
   
  o Adjusted EBITDA $9.3 million

  

 

ENGLEWOOD, CO – November 2, 2021 – Zynex, Inc. (NASDAQ: 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, 2021.

 

Third Quarter Financial Results Summary:

 

For the third quarter, the Company reported net revenue of $34.8 million, a 74% increase over the third quarter of 2020. Gross margins were 80% in the third quarter of 2021 and net income was $6.1 million.

 

Adjusted EBITDA was $9.3 million in the third quarter of 2021.

 

As of September 30, 2021, the Company had working capital of $59.6 million a 13% increase compared to June 30, 2021. Cash on hand was $35.4 million at the end of the third quarter. Cash increased by more than 9% during the quarter due to the Company posting record profitability.

 

President and CEO Commentary:

 

Thomas Sandgaard, CEO said: “I am excited about our order growth in the third quarter of 70% which we expect will continue to drive increasing revenue in 2021 and 2022. In the third quarter, we posted revenue of $34.8 million and net income of $6.1 million, both amounts are the highest in the history of the Company. We are pleased with our continued revenue growth and the related profitability as we continue to leverage the investments we’ve made in our sales organization over the past couple of years. There is a sizeable pain management market in the U.S. and worldwide that can benefit from our products and we are just scratching the surface of the addressable market.

 

In our Monitoring Solutions Division, our team just returned from the American Society of Anesthesiologists annual conference where we received positive feedback from clinicians and institutions on our CM-1500 Blood and Fluid Monitor. We expect to submit our next generation CM-1600 for FDA clearance within the next ninety days as our engineering team is making great progress.

 

We continue to advocate for pain patients, and for physicians to prescribe our NexWave technology as the first line of defense in treating chronic and acute pain without side effects. We are dedicated to promoting our technology in an effort to remove patient addiction and other side effects from prescription opioids.”

 

Fourth Quarter and Full Year 2021 Guidance:

 

The estimated range for fourth quarter revenue is between $40.0 and $43.0 million with Adjusted EBITDA between $9.0 and $10.0 million. The revenue estimate is approximately 56% to 68% above 2020 fourth quarter revenue of $25.6 million. 

 

Full year 2021 revenue is estimated between $130.0 and $133.0 million with Adjusted EBITDA between $22.7 and $23.7 million. The full year revenue estimate is approximately 62% to 66% above 2020 revenue of $80.1 million. Full year Adjusted EBITDA growth in 2021 is approximately 66% to 73% compared to 2020.

 

 

 

 

Conference Call and Webcast Details:

 

Tuesday, November 2, 2021 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://www.webcaster4.com/Webcast/Page/1487/43407

 

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, 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, 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 also has a fluid monitoring system for use in hospitals and surgery centers. 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 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 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, 2020 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:
Amato And Partners, LLC
Investor Relations Counsel
admin@amatoandpartners.com

 

 
 

 

ZYNEX, INC.

CONSOLIDATED BALANCE SHEETS

(AMOUNTS IN THOUSANDS)

(unaudited)

 

   September 30,   December 31, 
   2021   2020 
ASSETS          
Current assets:          
Cash  $35,368   $39,173 
Accounts receivable, net   24,234    13,837 
Inventory, net   9,154    8,635 
Prepaid expenses and other   1,102    1,378 
                                               Total current assets   69,858    63,023 
           
Property and equipment, net   2,253    1,925 
Operating lease asset   17,234    5,993 
Finance lease asset   418    321 
Deposits   584    347 
Deferred income taxes   376    566 
                                               Total assets  $90,723   $72,175 
           
LIABILITIES AND STOCKHOLDERS' EQUITY          
Current liabilities:          
Accounts payable and accrued expenses   2,669    4,717 
Operating lease liability   2,416    2,051 
Finance lease liability   115    77 
Income taxes payable   1,577    280 
Accrued payroll and related taxes   3,515    2,992 
                                              Total current liabilities   10,292    10,117 
Long-term liabilities:          
Operating lease liability   16,701    4,920 
Finance lease liability   347    283 
                                              Total liabilities   27,340    15,320 
           
Stockholders' equity:          
Common stock   37    36 
Additional paid-in capital   38,220    37,235 
Treasury Stock   (6,513)   (3,846)
Retained earnings   31,639    23,430 
                                              Total stockholders' equity   63,383    56,855 
                                              Total liabilities and stockholders' equity  $90,723   $72,175 

 

 

 

  

ZYNEX, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

(unaudited)

 

   For the Three Months Ended September 30,   For the Nine Months Ended September 30, 
   2021   2020   2021   2020 
NET REVENUE                    
Devices  $9,071   $5,301   $23,264   $13,026 
Supplies   25,715    14,725    66,671    41,491 
Total net revenue   34,786    20,026    89,935    54,517 
                     
COSTS OF REVENUE AND OPERATING EXPENSES                    
Costs of revenue - devices and supplies   6,837    4,296    19,990    11,758 
Sales and marketing   13,083    9,425    40,662    21,817 
General and administrative   6,820    4,896    18,503    12,990 
Total costs of revenue and operating expenses   26,740    18,617    79,155    46,565 
                     
Income from operations   8,046    1,409    10,780    7,952 
                     
Other expense                    
   Interest expense   (18)   (5)   (72)   (14)
Other expense, net   (18)   (5)   (72)   (14)
                     
Income from operations before income taxes   8,028    1,404    10,708    7,938 
  Income tax expense   1,921    71    2,499    651 
Net Income  $6,107   $1,333   $8,209   $7,287 
                     
Net income per share:                    
Basic  $0.18   $0.04   $0.24   $0.22 
                     
Diluted  $0.17   $0.04   $0.23   $0.21 
                     
Weighted average basic shares outstanding   34,768    34,486    34,805    33,564 
Weighted average diluted shares outstanding   35,493    35,476    35,583    34,715 

 

 

 

 

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, 
   2021   2020   2021   2020 
Adjusted EBITDA:                    
Net income  $6,107   $1,333   $8,209   $7,287 
Depreciation and Amortization*   201    305    711    470 
Stock-based compensation expense   532    730    1,041    1,806 
Restructuring/severance**   -    -    318    - 
   Interest expense and other, net   18    5    72    14 
   Non-cash lease expense ***   553    -    856    - 
   Income tax expense   1,921    71    2,499    651 
Adjusted EBITDA  $9,332   $2,444   $13,706   $10,228 
% of Net Revenue   27%   12%   15%   19%

 

* 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 on which no payments are due until 2022