Nephros Announces Financial Results for Quarter Ended September 30, 2024
Nephros reported Q3 2024 financial results with net revenue of $3.5 million, marking an 8% increase over Q2 2024 but a 6% decrease from Q3 2023. The company achieved its first profitable quarter with net income of $0.2 million, compared to a net loss of $0.2 million in Q3 2023. Gross margins improved to 61% from 59% year-over-year. Adjusted EBITDA reached $295,000, up from $11,000 in the same period last year. Cash position stood at $2.5 million as of September 30, 2024, down from $4.3 million at the end of 2023.
Nephros ha riportato i risultati finanziari per il terzo trimestre del 2024 con un fatturato netto di 3,5 milioni di dollari, segnando un incremento dell'8% rispetto al secondo trimestre del 2024, ma un decremento del 6% rispetto al terzo trimestre del 2023. L'azienda ha ottenuto il primo trimestre profittevole con un reddito netto di 0,2 milioni di dollari, rispetto a una perdita netta di 0,2 milioni di dollari nel terzo trimestre del 2023. I margini lordi sono migliorati al 61% rispetto al 59% dell'anno precedente. L'EBITDA rettificato ha raggiunto 295.000 dollari, in crescita rispetto a 11.000 dollari nello stesso periodo dell'anno scorso. La posizione di cassa era di 2,5 milioni di dollari al 30 settembre 2024, in calo rispetto ai 4,3 milioni di dollari alla fine del 2023.
Nephros informó sobre los resultados financieros del tercer trimestre de 2024, con ingresos netos de 3,5 millones de dólares, lo que representa un aumento del 8% en comparación con el segundo trimestre de 2024, pero una disminución del 6% respecto al tercer trimestre de 2023. La empresa alcanzó su primer trimestre rentable con un ingreso neto de 0,2 millones de dólares, frente a una pérdida neta de 0,2 millones de dólares en el tercer trimestre de 2023. Los márgenes brutos mejoraron al 61% desde el 59% en el mismo periodo del año pasado. El EBITDA ajustado alcanzó los 295,000 dólares, un aumento desde los 11,000 dólares en el mismo período del año anterior. La posición de efectivo se situó en 2,5 millones de dólares al 30 de septiembre de 2024, en comparación con los 4,3 millones de dólares al final de 2023.
Nephros는 2024년 3분기 재무 결과를 발표했으며, 순수익 350만 달러를 기록하여 2024년 2분기 대비 8% 증가했지만 2023년 3분기 대비 6% 감소했습니다. 이 회사는 첫 흑자 분기를 달성하여 순이익 20만 달러를 기록했으며, 이는 2023년 3분기의 순손실 20만 달러와 비교됩니다. 총 이익률은 작년 대비 59%에서 61%로 개선되었습니다. 조정된 EBITDA는 29만 5천 달러에 도달하여 지난해 같은 기간의 1만 1천 달러에서 증가했습니다. 2024년 9월 30일 기준 현금 위치는 250만 달러로, 2023년 말의 430만 달러에서 감소했습니다.
Nephros a annoncé les résultats financiers du troisième trimestre 2024 avec un chiffre d'affaires net de 3,5 millions de dollars, marquant une augmentation de 8% par rapport au deuxième trimestre 2024, mais une baisse de 6% par rapport au troisième trimestre 2023. L'entreprise a réalisé son premier trimestre bénéficiaire avec un bénéfice net de 0,2 million de dollars, contre une perte nette de 0,2 million de dollars au troisième trimestre 2023. Les marges brutes se sont améliorées à 61% contre 59% par rapport à l'année précédente. L'EBITDA ajusté a atteint 295 000 dollars, en hausse par rapport à 11 000 dollars au cours de la même période de l'année dernière. La position de trésorerie était de 2,5 millions de dollars au 30 septembre 2024, en baisse par rapport à 4,3 millions de dollars à la fin de 2023.
Nephros hat die Finanzergebnisse des dritten Quartals 2024 veröffentlicht, mit Nettoerlösen von 3,5 Millionen Dollar, was einem Anstieg von 8% im Vergleich zum zweiten Quartal 2024 entspricht, jedoch einem Rückgang von 6% im Vergleich zum dritten Quartal 2023. Das Unternehmen erreichte sein erstes profitables Quartal mit einem Nettogewinn von 0,2 Millionen Dollar, im Vergleich zu einem Nettoverlust von 0,2 Millionen Dollar im dritten Quartal 2023. Die Bruttomargen verbesserten sich im Jahresvergleich von 59% auf 61%. Das bereinigte EBITDA erreichte 295.000 Dollar, ein Anstieg von 11.000 Dollar im gleichen Zeitraum des Vorjahres. Die Liquiditätsposition betrug am 30. September 2024 2,5 Millionen Dollar, ein Rückgang von 4,3 Millionen Dollar Ende 2023.
- First profitable quarter achieved with $0.2M net income vs $0.2M loss in Q3 2023
- Gross margins improved to 61% from 59% year-over-year
- Adjusted EBITDA increased to $295,000 from $11,000 in Q3 2023
- 8% revenue growth quarter-over-quarter
- Operating expenses decreased due to reduced bonus accrual and stock compensation
- Revenue declined 6% year-over-year to $3.5M from $3.7M
- South Central region continues to underperform expectations
- Cash position decreased to $2.5M from $4.3M at year-end 2023
- Slower-than-usual ordering patterns from larger accounts
- Decrease in same-site sales
Insights
The Q3 2024 results mark a significant turning point for Nephros, achieving its first profitable quarter with
- Gross margins expanded to
61% from59% due to better supplier terms - Operating expenses decreased significantly, with SG&A dropping to
$1.7 million from$2.1 million - Adjusted EBITDA improved to
$295,000 from$11,000
However, challenges persist with declining cash position (
Third-Quarter Net Revenue of
Operational Improvements Result In First Profitable Quarter
SOUTH ORANGE, N.J., Nov. 07, 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 third quarter ended September 30, 2024.
Financial Highlights*
- Net income of
$0.2 million , compared to a net loss of$0.2 million - Adjusted EBITDA of
$295,000 , compared to$11,000 - Net revenue of
$3.5 million , an8% increase over Q2 2024; a decrease of6% over Q3 prior year
*Stated performance is relative to same period in the prior year unless otherwise noted.
“I am very excited to report our first profitable quarter, marking a major milestone in our pursuit of achieving operational excellence. I am also pleased to report we had positive-adjusted EBITDA for both the third quarter and first nine months of 2024,” stated Robert Banks, President and Chief Executive Officer. “Although most of our sales regions showed solid growth and steady performance with existing customers, our [South Central] region continued to miss expectations, which resulted in some reorganization. Additionally, a handful of our larger accounts exhibited slower-than-usual ordering patterns, as demonstrated by a slight decrease in same-site sales. We continue to push forward with actions designed to mitigate the reduction in programmatic reorders, as outlined during our previous earnings call.”
Mr. Banks continued, “While Nephros prepares to launch digital support for filter installation, we are ramping up our service capabilities to foster installation commissions and complement filter sales. We believe these efforts will offset customer non-compliance with filter changeout schedules.”
Financial Performance for the Quarter Ended September 30, 2024
Net revenue for the quarter ended September 30, 2024, was
Cost of goods sold for the quarter ended September 30, 2024, was
Research and development expenses for each of the quarters ended September 30, 2024, and September 30, 2023, were
Selling, general and administrative expenses for the quarter ended September 30, 2024, was
Net income for the quarter ended September 30, 2024, was
Adjusted EBITDA for the quarter ended September 30, 2024, was
As of September 30, 2024, Nephros had cash and cash equivalents of
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 tables present a reconciliation of Adjusted EBITDA to net loss, the most directly comparable GAAP financial measure, for the third quarter and year to date of the 2024 and 2023 fiscal years:
| (unaudited) | ||||
| Three Months Ended September 30, | ||||
| Consolidated Results | 2024 | 2023 | ||
| (in $ thousands) | ||||
| Reconciliation of net income (loss): | ||||
| Net Income (loss) | 183 | (182 | ) | |
| Adjustments: | ||||
| Depreciation of property and equipment | 12 | 9 | ||
| Amortization of other assets | 21 | 46 | ||
| Interest income | (20 | ) | (11 | ) |
| Non-cash stock-based compensation | 65 | 149 | ||
| Non-cash inventory write-offs | 34 | - | ||
| Adjusted EBITDA Income | 295 | 11 | ||
| (unaudited) | ||||
| Nine Months Ended September 30, | ||||
| Consolidated Results | 2024 | 2023 | ||
| (in $ thousands) | ||||
| Reconciliation of net loss: | ||||
| Net Income (loss) | (275 | ) | (921 | ) |
| Adjustments: | ||||
| Depreciation of property and equipment | 34 | 29 | ||
| Amortization of other assets | 68 | 134 | ||
| Interest expense | 1 | 1 | ||
| Interest income | (66 | ) | (36 | ) |
| Non-cash stock-based compensation | 91 | 662 | ||
| Non-cash inventory write-offs | 214 | 106 | ||
| Adjusted EBITDA Income (loss) | 67 | (25 | ) | |
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 November 14, 2024 at 1 (877) 344-7529 or 1 (412) 317-0088 for international callers and entering replay access code: 5018166.
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 maintaining positive cash flow and profitability, and other future financial performance, the expected timing of the launch of new products and services, expected improvements in efficiency in the delivery of our products and services, 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, fluctuations in customer order volumes, 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 Robert Banks, CEO
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 | ||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
| (In thousands, except share and per share amounts) | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Net revenue: | ||||||||||||||||
| Product revenues | $ | 3,472 | $ | 3,713 | $ | 10,186 | $ | 10,912 | ||||||||
| Royalty and other revenues | 46 | 29 | 106 | 72 | ||||||||||||
| Total net revenues | 3,518 | 3,742 | 10,292 | 10,984 | ||||||||||||
| Cost of goods sold | 1,369 | 1,548 | 4,044 | 4,600 | ||||||||||||
| Gross margin | 2,149 | 2,194 | 6,248 | 6,384 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Selling, general and administrative | 1,721 | 2,137 | 5,804 | 6,500 | ||||||||||||
| Research and development | 188 | 205 | 654 | 665 | ||||||||||||
| Depreciation and amortization | 34 | 55 | 101 | 163 | ||||||||||||
| Total operating expenses | 1,943 | 2,397 | 6,559 | 7,328 | ||||||||||||
| Operating income (loss) | 206 | (203 | ) | (311 | ) | (944 | ) | |||||||||
| Other (expense) income: | ||||||||||||||||
| Interest expense | - | - | (1 | ) | (1 | ) | ||||||||||
| Interest income | 20 | 11 | 66 | 36 | ||||||||||||
| Other income (expense), net | (43 | ) | 10 | (29 | ) | (12 | ) | |||||||||
| Total other expense: | (23 | ) | 21 | 36 | 23 | |||||||||||
| Net income (loss) | $ | 183 | $ | (182 | ) | $ | (275 | ) | $ | (921 | ) | |||||
| Net income (loss) per common share, basic | $ | 0.02 | $ | (0.02 | ) | $ | (0.03 | ) | $ | (0.09 | ) | |||||
| Net income (loss) per common share, diluted | $ | 0.02 | $ | (0.02 | ) | $ | (0.03 | ) | $ | (0.09 | ) | |||||
| Weighted average common shares outstanding, basic | 10,544,139 | 10,460,866 | 10,518,742 | 10,352,108 | ||||||||||||
| Weighted average common shares outstanding, diluted | 10,580,906 | 10,460,866 | 10,518,742 | 10,352,108 | ||||||||||||
| NEPHROS, INC. AND SUBSIDIARIES | ||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||
| (In thousands, except share and per share amounts) | ||||||||||
| (Unaudited) | ||||||||||
| ASSETS | September 30, 2024 | December 31, 2023 | ||||||||
| Current assets: | ||||||||||
| Cash and cash equivalents | $ | 2,457 | $ | 4,307 | ||||||
| Accounts receivable, net | 1,691 | 1,496 | ||||||||
| Inventory | 3,099 | 2,470 | ||||||||
| Prepaid expenses and other current assets | 109 | 132 | ||||||||
| Total current assets | 7,356 | 8,405 | ||||||||
| Property and equipment, net | 173 | 152 | ||||||||
| Lease right-use-of assets | 1,461 | 1,807 | ||||||||
| Intangible assets, net | 357 | 381 | ||||||||
| Goodwill | 759 | 759 | ||||||||
| License and supply agreement, net | 230 | 271 | ||||||||
| Other assets | 50 | 86 | ||||||||
| TOTAL ASSETS | $ | 10,386 | $ | 11,861 | ||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||
| Current liabilities: | ||||||||||
| Accounts payable | 398 | 873 | ||||||||
| Accrued expenses | 322 | 794 | ||||||||
| Current portion of lease liabilities | 338 | 446 | ||||||||
| Total current liabilities | 1,058 | 2,113 | ||||||||
| Lease liabilities, net of current portion | 1,154 | 1,390 | ||||||||
| TOTAL LIABILITIES | 2,212 | 3,503 | ||||||||
| COMMITMENTS AND CONTINGENCIES | ||||||||||
| STOCKHOLDERS' EQUITY: | ||||||||||
| Preferred stock, $.001 par value; 5,000,000 shares authorized at September 30, 2024 and December 31, 2023; no shares issued and outstanding September 30, 2024 and December 31, 2023. | - | - | ||||||||
| Common stock, $.001 par value; 40,000,000 shares authorized at September 30, 2024 and December 31, 2023; 10,544,139 and 10,543,675 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively. | 11 | 10 | ||||||||
| Additional paid-in capital | 152,844 | 152,754 | ||||||||
| Accumulated deficit | (144,681 | ) | (144,406 | ) | ||||||
| TOTAL STOCKHOLDERS' EQUITY | 8,174 | 8,358 | ||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 10,386 | $ | 11,861 | ||||||
FAQ
What was Nephros (NEPH) revenue in Q3 2024?
Did Nephros (NEPH) achieve profitability in Q3 2024?
What was Nephros (NEPH) gross margin in Q3 2024?
How much cash did Nephros (NEPH) have as of September 30, 2024?
