Zynex Announces 2021 Second Quarter Earnings

Rhea-AI Summary

Zynex reported a 61% year-over-year revenue increase for Q2 2021, totaling $31.0 million. Orders surged by 247%, with a net income of $2.8 million and diluted EPS of $0.08. Adjusted EBITDA reached $4.8 million. The company expects Q3 revenue between $34.5 million and $36.0 million, representing a 72% to 80% increase from Q3 2020. Full-year revenue guidance is lowered to $130.0 million to $137.5 million, still reflecting a 62% to 72% increase from 2020.

Positive

• 61% year-over-year revenue growth to $31.0 million.
• Orders increased by 247% in Q2.
• Adjusted EBITDA of $4.8 million.
• Expectations for Q3 revenue of $34.5 million to $36.0 million.

Negative

• Full-year revenue guidance lowered due to competitive job market.
• Sales representatives decreased to approximately 450.

ENGLEWOOD, Colo., July 29, 2021 /PRNewswire/ --

• 2021 Second Quarter
• Revenue increased 61% year over year to $31.0 million
• Orders increased 247%
• Net income of $2.8 million; Diluted EPS $0.08
• Adjusted EBITDA $4.8 million

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 second quarter ended June 30, 2021.

Second Quarter Financial Results Summary:

For the second quarter, the Company reported net revenue of $31.0 million, a 61% increase over the second quarter of 2020. Gross margins were 77% in the second quarter of 2021 and net income was $2.8 million.

Adjusted EBITDA was $4.8 million in the second quarter of 2021.

As of June 30, 2021 and December 31, 2020, the Company had working capital of $52.9 million. Cash on hand was $32.3 million at the end of the second quarter. Cash decreased slightly during the quarter due to the Company spending $2.0 million on its stock buy-back program.

President and CEO Commentary:

Thomas Sandgaard, CEO said: "I am excited about our order growth in the second quarter of 247% which will continue to drive increasing revenue in 2021 and 2022. In the second quarter, we posted revenue of $31.0 million, which is the highest quarterly revenue in the history of the Company and net income of $2.8 million. We continue to focus on sales rep productivity and average reps during the period decreased to approximately 450 due to trimming non-productive reps and slowed hiring due to a very competitive job market. We have increased the rate of hiring in Q3 and expect to be well over 500 reps by the end of the year.

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."

Third Quarter and Full Year 2021 Guidance:

The estimated range for third quarter revenue is between $34.5 and $36.0 million with Adjusted EBITDA between $5.0 and $6.0 million. The revenue estimate is approximately 72% to 80% above 2020 third quarter revenue of $20.0 million. 

Full year 2021 revenue is estimated between $130.0 and $137.5 million with Adjusted EBITDA between $16.5 and $21.5 million. The full year revenue estimate is on the lower end of previously provided guidance due to a very competitive job market and therefore fewer sales reps than expected. The full year revenue estimate is approximately 62% to 72% above 2020 revenue of $80.1 million.

Conference Call and Webcast Details:

Thursday, July 29, 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/1487/42267

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 and stock compensation). 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 blood volume monitor 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 goods 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)
	June 30,			December 31,
	2021			2020
ASSETS
Current assets:
Cash		$             32,330		$              39,173
Accounts receivable, net		18,310		13,837
Inventory, net		9,951		8,635
Prepaid expenses and other		1,188		1,378
Total current assets		61,779		63,023
Property and equipment, net		2,355		1,925
Operating lease asset		18,111		5,993
Finance lease asset		429		321
Deposits		584		347
Deferred income taxes		440		566
Total assets		$             83,698		$              72,175
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses		2,652		4,717
Operating lease liability		2,367		2,051
Finance lease liability		106		77
Income taxes payable		403		280
Accrued payroll and related taxes		3,363		2,992
Total current liabilities		8,891		10,117
Long-term liabilities:
Operating lease liability		17,136		4,920
Finance lease liability		371		283
Total liabilities		26,398		15,320
Stockholders' equity:
Preferred stock		-		-
Common stock		37		36
Additional paid-in capital		37,697		37,235
Treasury stock		(5,966)		(3,846)
Retained earnings		25,532		23,430
Total stockholders' equity		57,300		56,855
Total liabilities and stockholders' equity		$             83,698		$              72,175

 

ZYNEX, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2021		2020		2021		2020
NET REVENUE
Devices	$          7,828		$        4,281		$ 14,193		$   7,725
Supplies	23,194		14,982		40,956		26,766
Total net revenue	31,022		19,263		55,149		34,491
COSTS OF REVENUE AND OPERATING EXPENSES
Costs of revenue - devices and supplies	7,267		4,061		13,153		7,462
Sales and marketing	13,752		6,800		27,579		12,384
General and administrative	6,188		4,317		11,683		8,102
Total costs of revenue and operating expenses	27,207		15,178		52,415		27,948
Income from operations	3,815		4,085		2,734		6,543
Other expense
Interest expense	(45)		(5)		(54)		(9)
Other expense, net	(45)		(5)		(54)		(9)
Income from operations before income taxes	3,770		4,080		2,680		6,534
Income tax expense	962		1,063		578		580
Net Income	$           2,808		$        3,017		$   2,102		$    5,954
Net income per share:
Basic	$             0.08		$          0.09		$     0.06		$      0.18
Diluted	$             0.08		$          0.09		$     0.06		$      0.17
Weighted average basic shares outstanding	34,810		33,283		34,824		33,098
Weighted average diluted shares outstanding	35,583		34,454		35,629		34,329

 

ZYNEX, INC.
Reconciliation of GAAP to Non-GAAP Measures
(in thousands)
(unaudited)
	For the Three Months Ended June 30,					For the Six Months Ended June 30,
	2021		2020			2021				2020
Adjusted EBITDA:
Net income	$                 2,808		$               3,017			$                 2,102				$                     5,954
Depreciation and Amortization*	242		97			510				165
Stock-based compensation expense	401		579			509				1,076
Restructuring/severance**	-		-			318				-
Interest expense and other, net	45		5			54				9
Non-cash lease expense ***	303		-			303				-
Income tax expense	962		1,063			578				580
Adjusted EBITDA	$                 4,761		$               4,761			$                 4,374				$                     7,784
% of Net Revenue	15%		25%			8%				23%
* 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

 

 

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SOURCE Zynex

FAQ

What were Zynex's second quarter 2021 earnings results?

Zynex reported Q2 2021 revenue of $31.0 million, a 61% increase year-over-year, and net income of $2.8 million.

What is Zynex's third quarter revenue guidance?

Zynex estimates Q3 2021 revenue between $34.5 million and $36.0 million.

How did Zynex perform compared to last year?

Zynex's revenue in Q2 2021 increased by 61% compared to Q2 2020.

What is the expected full-year revenue for Zynex in 2021?

Full-year revenue guidance for Zynex is estimated between $130.0 million and $137.5 million.

What factors impacted Zynex's sales representative count?

Zynex's sales representatives decreased to approximately 450 due to trimming non-productive reps and hiring challenges.