Nephros Announces Financial Results for Quarter Ended June 30, 2024
Nephros (NEPH) reported Q2 2024 financial results with net revenue of $3.3 million, an 8% decrease from Q2 2023. However, programmatic revenue increased by 8% year-over-year, driven by over 300 new accounts added in the past 12 months. The company reported a net loss of $0.3 million, an improvement from $0.4 million in Q2 2023. Adjusted EBITDA was ($133,000), compared to ($183,000) in the prior year.
CEO Robert Banks highlighted growth in the core programmatic business but noted a decline in emergency response sales. The company is developing new business models to address challenges in filter changeout schedules. As of June 30, 2024, Nephros had cash and cash equivalents of $3.1 million.
Nephros (NEPH) ha riportato i risultati finanziari del secondo trimestre del 2024 con entrate nette pari a 3,3 milioni di dollari, in calo dell'8% rispetto al secondo trimestre del 2023. Tuttavia, le entrate programmatiche sono aumentate dell'8% rispetto all'anno precedente, grazie all'aggiunta di oltre 300 nuovi account negli ultimi 12 mesi. L'azienda ha registrato una perdita netta di 0,3 milioni di dollari, un miglioramento rispetto a 0,4 milioni nel secondo trimestre del 2023. L'EBITDA rettificato è stato di (-133.000 dollari), rispetto a (-183.000 dollari) nell'anno precedente.
Il CEO Robert Banks ha sottolineato la crescita nel core business programmatico, ma ha osservato un calo nelle vendite di risposte alle emergenze. L'azienda sta sviluppando nuovi modelli di business per affrontare le sfide nei programmi di sostituzione dei filtri. Al 30 giugno 2024, Nephros disponeva di liquidità e disponibilità liquide per 3,1 milioni di dollari.
Nephros (NEPH) informó los resultados financieros del segundo trimestre de 2024 con ingresos netos de 3,3 millones de dólares, una disminución del 8% en comparación con el segundo trimestre de 2023. Sin embargo, los ingresos programáticos aumentaron un 8% interanual, impulsados por más de 300 nuevas cuentas agregadas en los últimos 12 meses. La compañía reportó una pérdida neta de 0,3 millones de dólares, una mejora con respecto a 0,4 millones en el segundo trimestre de 2023. El EBITDA ajustado fue de (-133,000 dólares), en comparación con (-183,000 dólares) en el año anterior.
El CEO Robert Banks destacó el crecimiento en el negocio programático central, pero observó una disminución en las ventas de respuesta a emergencias. La compañía está desarrollando nuevos modelos de negocio para abordar los desafíos en los programas de cambio de filtros. Al 30 de junio de 2024, Nephros tenía efectivo y equivalentes de efectivo por 3,1 millones de dólares.
Nephros (NEPH)는 2024년 2분기 재무 결과를 보고하며 순매출 330만 달러를 기록했으며, 이는 2023년 2분기 대비 8% 감소한 수치입니다. 그러나 프로그램 수익은 8% 증가하여, 지난 12개월 동안 300개 이상의 새로운 계정이 추가되었습니다. 회사는 순손실 30만 달러를 기록했으며, 2023년 2분기의 40만 달러에서 개선된 수치입니다. 조정된 EBITDA는 (-13만 3천 달러)로, 전년도의 (-18만 3천 달러)와 비교됩니다.
CEO 로버트 뱅크스는 핵심 프로그램 사업의 성장을 강조했지만, 긴급 대응 판매의 감소를 언급했습니다. 회사는 필터 교체 일정에서의 도전 과제를 해결하기 위해 새로운 비즈니스 모델을 개발하고 있습니다. 2024년 6월 30일 현재, Nephros는 현금 및 현금 등가물로 310만 달러를 보유하고 있었습니다.
Nephros (NEPH) a publié ses résultats financiers pour le deuxième trimestre 2024 avec un chiffre d'affaires net de 3,3 millions de dollars, soit une baisse de 8 % par rapport au deuxième trimestre 2023. Cependant, les revenus programmatiques ont augmenté de 8 % par rapport à l'année précédente, grâce à l'ajout de plus de 300 nouveaux comptes au cours des 12 derniers mois. L'entreprise a enregistré une perte nette de 0,3 millions de dollars, une amélioration par rapport à 0,4 millions au deuxième trimestre 2023. L'EBITDA ajusté était de (-133 000 dollars), contre (-183 000 dollars) l'année précédente.
Le PDG Robert Banks a souligné la croissance de l'activité programmatique principale, mais a noté une baisse des ventes de réponses aux urgences. L'entreprise développe de nouveaux modèles commerciaux pour faire face aux défis liés aux programmes de changement de filtre. Au 30 juin 2024, Nephros avait des liquidités et équivalents de liquidités s'élevant à 3,1 millions de dollars.
Nephros (NEPH) berichtete über die Finanzergebnisse des zweiten Quartals 2024 mit Nettoerlösen in Höhe von 3,3 Millionen Dollar, ein Rückgang von 8 % im Vergleich zum zweiten Quartal 2023. Allerdings ist der programmatische Umsatz um 8 % gestiegen im Jahresvergleich, getrieben durch die Hinzufügung von über 300 neuen Konten in den letzten 12 Monaten. Das Unternehmen berichtete von einem Nettoverlust von 0,3 Millionen Dollar, ein Verbesserungswert gegenüber 0,4 Millionen im zweiten Quartal 2023. Das bereinigte EBITDA betrug (-133.000 Dollar), verglichen mit (-183.000 Dollar) im Vorjahr.
CEO Robert Banks hob das Wachstum im Kerngeschäftsbereich der programmatischen Werbung hervor, bemerkte jedoch einen Rückgang beim Verkauf von Notfallmaßnahmen. Das Unternehmen entwickelt neue Geschäftsmodelle, um Herausforderungen bei den Filterwechselplänen zu begegnen. Am 30. Juni 2024 hatte Nephros Barzahlung und Zahlungsmitteläquivalente in Höhe von 3,1 Millionen Dollar.
- Programmatic revenue increased by 8% year-over-year
- Over 300 new accounts added in the past 12 months
- Net loss decreased from $0.4 million to $0.3 million
- Adjusted EBITDA improved from ($183,000) to ($133,000)
- Gross margins remained stable at 59%
- Overall net revenue decreased by 8% to $3.3 million
- Decline in emergency response business
- Some customers failing to maintain filter changeout schedules
- Cash and cash equivalents decreased from $4.3 million to $3.1 million
Insights
Nephros' Q2 2024 results present a mixed picture. While overall revenue decreased by
The company's focus on expanding its customer base, adding over 300 new accounts in the past year, is a positive sign for future growth. However, the decline in emergency response business and inconsistent reorder patterns from existing customers are concerning. Nephros' efforts to develop new business models like digital support and automatic replenishment could help address these challenges.
With
Nephros' Q2 results reflect broader industry trends in the water technology sector. The growth in programmatic business aligns with increasing awareness of water quality issues, while the decline in emergency response revenue suggests a shift in how facilities approach water safety.
The company's challenge with customer retention and reorder consistency highlights a critical issue in the industry: the impact of labor shortages and complex purchasing processes on maintenance schedules. This presents both a threat and an opportunity for Nephros to innovate its business model.
The development of new service models, such as automatic replenishment and bundled services, could be a game-changer for Nephros. If successful, these initiatives could not only improve customer retention but also create new revenue streams and potentially set new industry standards for water filtration services.
Second-Quarter Net Revenue of
New Accounts Help Drive Growth in Core Programmatic Business
SOUTH ORANGE, NJ, Aug. 08, 2024 (GLOBE NEWSWIRE) -- Nephros, Inc. (Nasdaq: NEPH), a leading water technology company providing filtration solutions to the medical and commercial markets, today announced financial results for the second quarter ended June 30, 2024.
Financial Highlights*
- Net revenue of
$3.3 million , a decrease of8% over Q2 prior year; programmatic revenue
(excluding emergency response revenue) increased8% over Q2 prior year - Net loss of
$0.3 million , compared to a net loss of$0.4 million - Adjusted EBITDA of (
$133,000) , compared to ($183,000)
*Stated performance is relative to same period in the prior year unless otherwise noted.
“The results this quarter reinforce our perspective following Q1, and reflect continued progress within our regular, programmatic business,” commented Robert Banks, President and Chief Executive Officer. “The team has done a great job at securing new business with over 300 new accounts added in the past 12 months. This expansion represents an
Robert Banks continued, “While Nephros is growing its active customer sites faster than ever, a portion of our user base is failing to maintain filter changeout schedules, subsequently leading to inconsistent reorders. Such facilities are challenged by a variety of factors, including reduced labor forces and lengthy processes for purchasing approval. In order to respond, Nephros continues to develop a variety of new business models such as digital support, automatic replenishment, and the bundling of services with filter purchases.”
Financial Performance for the Quarter Ended June 30, 2024
Net revenue for the quarter ended June 30, 2024, was
Net loss for the quarter ended June 30, 2024, was
Adjusted EBITDA for the quarter ended June 30, 2024, was (
Cost of goods sold for the quarter ended June 30, 2024 was
Selling, general and administrative expense for the quarter ended June 30, 2024 was
Adjusted EBITDA Definition and Reconciliation to GAAP Financial Measures
Adjusted EBITDA is calculated by taking net loss calculated in accordance with generally accepted accounting principles (“GAAP”) and excluding all interest-related expenses and income, tax-related expenses and income, non-recurring expenses and income, and non-cash items, including depreciation, amortization, non-cash inventory write-offs, and non-cash compensation. The following table presents a reconciliation of Adjusted EBITDA to net loss, the most directly comparable GAAP financial measure, for the first quarter of the 2024 and 2023 fiscal years:
| (unaudited) | ||||
| Three Months Ended June 30, | ||||
| Consolidated Results | 2024 | 2023 | ||
| (in $ thousands) | ||||
| Reconciliation of net loss: | ||||
| Net loss | (289 | ) | (433 | ) |
| Adjustments: | ||||
| Depreciation of property and equipment | 11 | 10 | ||
| Amortization of other assets | 24 | 44 | ||
| Interest income | (21 | ) | (13 | ) |
| Non-cash stock-based compensation | 35 | 194 | ||
| Non-cash inventory write-offs | 107 | 15 | ||
| Adjusted EBITDA loss | (133 | ) | (183 | ) |
Nephros believes that Adjusted EBITDA provides useful information to management and investors regarding certain financial and business trends relating to Nephros’ financial condition and results of operations. Management does not consider Adjusted EBITDA in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of Adjusted EBITDA is that it excludes significant expenses and income that are required by GAAP to be recognized in Nephros’ financial statements. In addition, Adjusted EBITDA is subject to inherent limitations as it reflects the exercise of judgments by management about which expenses and income are excluded or included in determining Adjusted EBITDA. To compensate for these limitations, management presents Adjusted EBITDA in connection with net income loss, the most directly comparable GAAP financial measure. Nephros urges investors to review the reconciliation of Adjusted EBITDA to net income loss and not to rely on any single financial measure to evaluate the business.
Conference Call Today at 4:30pm ET
Nephros will host a conference call today at 4:30pm ET, during which management will discuss Nephros’ financial results and provide a general business overview.
Participants may dial into the call as follows:
Domestic access: 1 (844) 808-7106
International access: 1 (412) 317-5285
Upon joining, please ask to be added into the Nephros conference call.
An audio archive of the call will be available shortly after the call on the Nephros Investor Relations page.
Alternatively, a replay of the call may be accessed until August 15, 2024 at 1 (877) 344-7529 or
1 (412) 317-0088 for international callers and entering replay access code: 5799241.
About Nephros
Nephros is committed to improving the human relationship with water through leading, accessible technology. We provide innovative water filtration products and services, along with water-quality education, as part of an integrated approach to water safety. Nephros goods serve the needs of customers within medical and commercial markets, offering both proactive and emergency solutions for water management.
For more information about Nephros, please visit nephros.com.
Forward-Looking Statements
This release contains forward-looking statements that are subject to various risks and uncertainties. Such statements include statements regarding Nephros’ expected future revenue, gross margins, cash flows and expectations on achieving and maintaining positive cash flow and profitability, and the timing thereof and other future financial performance, the impact of new regulations, and other statements that are not historical facts, including statements that may be accompanied by the words “intends,” “may,” “will,” “plans,” “expects,” “anticipates,” “projects,” “predicts,” “estimates,” “aims,” “believes,” “hopes,” “potential” or similar words. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including inflationary factors and general economic conditions, changes in business and competitive conditions, unpredictability with respect to revenue derived from emergency response orders, the availability of capital when needed, dependence on third-party manufacturers and researchers, and regulatory reforms. These and other risks and uncertainties are detailed in Nephros’ reports filed with the U.S. Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2023, which it may update in Part II, Item 1A – Risk Factors in its Quarterly Reports on Form 10-Q that it has filed or will file hereafter. Nephros does not undertake any responsibility to update the forward-looking statements in this release.
Investor Relations Contacts:
Kirin Smith, President
PCG Advisory, Inc.
(646) 823-8656
ksmith@pcgadvisory.com
Robert Banks, CEO
Nephros, Inc.
(201)343-5202x121
robert.banks@nephros.com
| NEPHROS, INC. AND SUBSIDIARIES | ||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS | ||||||||
| (In thousands, except share and per share amounts) | ||||||||
| (Unaudited) | ||||||||
| Three Months Ended June 30, | ||||||||
| 2024 | 2023 | |||||||
| Net revenue: | ||||||||
| Product revenues | $ | 3,208 | $ | 3,537 | ||||
| Royalty and other revenues | 44 | 8 | ||||||
| Total net revenues | 3,252 | 3,545 | ||||||
| Cost of goods sold | 1,340 | 1,466 | ||||||
| Gross margin | 1,912 | 2,079 | ||||||
| Operating expenses: | ||||||||
| Selling, general and administrative | 1,941 | 2,239 | ||||||
| Research and development | 254 | 221 | ||||||
| Depreciation and amortization | 34 | 54 | ||||||
| Total operating expenses | 2,229 | 2,514 | ||||||
| Operating loss | (317 | ) | (435 | ) | ||||
| Other (expense) income: | ||||||||
| Interest income | 21 | 13 | ||||||
| Other income (expense), net | 7 | (11 | ) | |||||
| Total other expense: | 28 | 2 | ||||||
| Net loss | $ | (289 | ) | $ | (433 | ) | ||
| Net loss per common share, basic and diluted | $ | (0.03 | ) | $ | (0.04 | ) | ||
| Weighted average common shares outstanding, basic and diluted | 10,509,937 | 10,297,429 | ||||||
| Comprehensive loss | $ | (289 | ) | $ | (433 | ) | ||
| NEPHROS, INC. AND SUBSIDIARIES | ||||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||||
| (In thousands, except share and per share amounts) | ||||||||||
| (Unaudited) | ||||||||||
| ASSETS | June 30, 2024 | December 31, 2023 | ||||||||
| Current assets: | ||||||||||
| Cash and cash equivalents | $ | 3,080 | $ | 4,307 | ||||||
| Accounts receivable, net | 1,878 | 1,496 | ||||||||
| Inventory | 2,803 | 2,470 | ||||||||
| Prepaid expenses and other current assets | 165 | 132 | ||||||||
| Total current assets | 7,926 | 8,405 | ||||||||
| Property and equipment, net | 186 | 152 | ||||||||
| Lease right-use-of assets | 1,551 | 1,807 | ||||||||
| Intangible assets, net | 365 | 381 | ||||||||
| Goodwill | 759 | 759 | ||||||||
| License and supply agreement, net | 243 | 271 | ||||||||
| Other assets | 70 | 86 | ||||||||
| TOTAL ASSETS | $ | 11,100 | $ | 11,861 | ||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||
| Current liabilities: | ||||||||||
| Accounts payable | 1,159 | 873 | ||||||||
| Accrued expenses | 435 | 794 | ||||||||
| Current portion of lease liabilities | 358 | 446 | ||||||||
| Total current liabilities | 1,952 | 2,113 | ||||||||
| Lease liabilities, net of current portion | 1,222 | 1,390 | ||||||||
| TOTAL LIABILITIES | 3,174 | 3,503 | ||||||||
| COMMITMENTS AND CONTINGENCIES | ||||||||||
| STOCKHOLDERS' EQUITY: | ||||||||||
| Preferred stock, $.001 par value; 5,000,000 shares authorized at June 30, 2024 and December 31, 2023; no shares issued and outstanding June 30, 2024 and December 31, 2023. | - | - | ||||||||
| Common stock, $.001 par value; 40,000,000 shares authorized at June 30, 2024 and December 31, 2023; 10,544,139 and 10,543,675 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively | 11 | 10 | ||||||||
| Additional paid-in capital | 152,779 | 152,754 | ||||||||
| Accumulated deficit | (144,864 | ) | (144,406 | ) | ||||||
| TOTAL STOCKHOLDERS' EQUITY | 7,926 | 8,358 | ||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 11,100 | $ | 11,861 | ||||||
FAQ
What was Nephros' (NEPH) revenue for Q2 2024?
How did Nephros' (NEPH) programmatic revenue perform in Q2 2024?
What was Nephros' (NEPH) net loss for Q2 2024?
How much cash did Nephros (NEPH) have as of June 30, 2024?
