Zynex Announces 2022 Second Quarter Earnings

Rhea-AI Summary

Zynex, Inc. (NASDAQ: ZYXI) reported strong financial results for Q2 2022, with revenue increasing 18% year-over-year to $36.8 million. Net income rose 19% to $3.3 million, yielding a diluted EPS of $0.08. Adjusted EBITDA also showed a significant increase of 16%, reaching $5.5 million. The company completed a $10 million share buyback and announced an additional program of $10 million. With the highest order volume recorded, Zynex reaffirms its full-year revenue guidance of $150-$170 million and third-quarter revenue expected between $40-$43 million.

Positive

• Revenue grew 18% YoY to $36.8 million.
• Net income increased 19% to $3.3 million.
• Diluted EPS of $0.08 reflects profitability improvement.
• Adjusted EBITDA grew 16% to $5.5 million.
• Highest number of orders recorded in company history.
• Reaffirmed full-year revenue guidance of $150-$170 million.

Negative

• None.

ENGLEWOOD, Colo., July 28, 2022 /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 second quarter ended June 30, 2022.

Second Quarter 2022 Highlights:

• Revenue increased 18% year over year to $36.8 million
• Net income increased 19% to $3.3 million; Diluted EPS of $0.08
• Adjusted EBITDA increased 16% to $5.5 million
• Completed initial $10 million share buyback and announced an additional program of $10 million
• Recorded highest number of orders in Company history
•  

Second Quarter 2022 Financial Results Summary:

For the second quarter, the Company reported net revenue of $36.8 million, an 18% increase over second quarter of 2021. Gross margins were 80% and net income was $3.3 million, a 19% increase from Q2 2021.

As of June 30, 2022, the Company had working capital of $51.8 million. Cash on hand was $26.9 million at the end of the second quarter.

President and CEO Commentary:

"In Q2, we posted another quarter of top line growth and increased profitability. Our reps are becoming highly efficient and revenue projections reflect our confidence in the sales force to produce exceptional results. The record orders we posted in second quarter will put us in a position to realize strong results in the second half of 2022," said Thomas Sandgaard, President and CEO. "Additionally, we completed an initial $10 million share buyback program and announced another $10 million program to signal our ability to drive shareholder value."

Third Quarter and Full Year 2022 Guidance:

Zynex is reaffirming its full year 2022 revenue estimates in the range of $150-$170 million and Adjusted EBITDA between $25-$35 million.

The estimated range for third quarter 2022 revenue is between $40-$43 million, an increase of approximately 20% from Q3 2021. Adjusted EBITDA for the third quarter 2022 is estimated to range between $7-$9 million.

Conference Call and Webcast Details:

Thursday, July 28, 2022 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/mV4arKMJQLl

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, forecasts, 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, 2021 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.

Investor Contact
Gilmartin Group
650 Fifth Ave., Suite 2720
New York, NY 10019
IR@zynex.com

ZYNEX, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(AMOUNTS IN THOUSANDS)
(unaudited)
	June 30,            2022			December 31,
				2021
ASSETS
Current assets:
Cash		$26,877		$42,612
Accounts receivable, net		27,824		28,632
Inventory, net		14,572		10,756
Prepaid expenses and other		1,357		689
Total current assets		70,630		82,689
Property and equipment, net		2,277		2,186
Operating lease asset		14,719		16,338
Finance lease asset		329		389
Deposits		591		585
Intangible assets, net of accumulated amortization		9,525		9,975
Goodwill		20,401		20,401
Deferred income taxes		1,103		711
Total assets		$           119,575		$           133,274
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses		5,236		4,739
Cash dividends payable		16		3,629
Operating lease liability		3,391		2,859
Finance lease liability		123		118
Income taxes payable		160		2,296
Current portion of debt		5,333		5,333
Accrued payroll and related taxes		4,564		3,897
Total current liabilities		18,823		22,871
Long-term liabilities:
Long-term portion of debt, less issuance costs		7,949		10,605
Contingent consideration		9,600		9,700
Operating lease liability		13,941		15,856
Finance lease liability		253		317
Total liabilities		50,566		59,349
Stockholders' equity:
Common stock		40		41
Additional paid-in capital		81,412		80,397
Treasury stock		(17,166)		(6,513)
Retained earnings		4,723		-
Total stockholders' equity		69,009		73,925
Total liabilities and stockholders' equity		$            119,575		$           133,274

 

 

 

ZYNEX, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)
(unaudited)
		For the Three Months Ended June 30,				For the Six Months Ended June 30,
		2022		2021		2022		2021
NET REVENUE
Devices		$        9,505		$       7,828		$     16,230		$     14,193
Supplies		27,254		23,194		51,612		40,956
Total net revenue		36,759		31,022		67,842		55,149
COSTS OF REVENUE AND OPERATING EXPENSES
Costs of revenue - devices and supplies		7,305		7,267		14,226		13,153
Sales and marketing		16,314		13,752		30,738		27,579
General and administrative		8,776		6,188		16,608		11,683
Total costs of revenue and operating expenses		32,395		27,207		61,572		52,415
Income from operations		4,364		3,815		6,270		2,734
Other income (expense)
Gain (loss) on change in fair value of contingent consideration		(100)		-		100		-
Interest expense		(115)		(45)		(239)		(54)
Other expense, net		(215)		(45)		(139)		(54)
Income from operations before income taxes		4,149		3,770		6,131		2,680
Income tax expense		803		962		1,408		578
Net income		$         3,346		$      2,808		$      4,723		$      2,102
Net income per share:
Basic		$           0.09		$        0.07		$        0.12		$        0.05
Diluted		$           0.08		$        0.07		$        0.12		$        0.05
Weighted average basic shares outstanding		38,851		38,291		39,305		38,306
Weighted average diluted shares outstanding		39,893		39,141		40,367		39,192

 

 

 

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,
	2022		2021		2022		2021
Adjusted EBITDA:
Net income	$                 3,346		$                   2,808		$                  4,723		$                    2,102
Depreciation and Amortization*	411		242		807		510
Stock-based compensation expense	535		401		1,124		509
Restructuring/severance**	-		-		-		318
Interest expense and other, net	215		45		139		54
Non-cash lease expense ***	227		303		410		303
Income tax expense	803		962		1,408		578
Adjusted EBITDA	$                 5,537		$                  4,761		$                  8,611		$                   4,374
% of Net Revenue	15 %		15 %		13 %		8 %
* 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 in excess of cash payments due to abated rent

 

 

 

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SOURCE Zynex

FAQ

What were Zynex's Q2 2022 revenue results?

Zynex reported Q2 2022 revenue of $36.8 million, an 18% increase year-over-year.

How much did Zynex's net income increase in Q2 2022?

Net income for Q2 2022 rose by 19% to $3.3 million.

What is Zynex's projected revenue for Q3 2022?

Zynex estimates Q3 2022 revenue between $40-$43 million, a 20% increase from Q3 2021.

What is the diluted EPS for Zynex in Q2 2022?

Zynex reported a diluted EPS of $0.08 for Q2 2022.

What guidance did Zynex provide for full-year 2022?

Zynex reaffirmed its full-year revenue guidance in the range of $150-$170 million.