Zynex Announces 2022 Third Quarter Earnings

Rhea-AI Summary

Zynex, Inc. (Nasdaq: ZYXI) reported strong third-quarter 2022 results, achieving a 19% revenue increase year-over-year to $41.5 million. The company posted a net income of $4.9 million with a diluted EPS of $0.13 and an Adjusted EBITDA of $8.1 million. Cash from operations was $7.4 million. Zynex completed a $10 million share buyback, totaling $20 million year-to-date. Guidance for Q4 estimates revenue between $48-$51 million, anticipating a 23% increase from Q4 2021.

Positive

• 19% revenue increase year-over-year to $41.5 million.
• Net income rose 46% from Q2 2022 to $4.9 million.
• Order growth increased 34% year-over-year.
• Cash from operations reached $7.4 million.
• Completed $10 million share buyback, totaling $20 million YTD.

Negative

• None.

ENGLEWOOD, Colo., Oct. 27, 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 third quarter ended September 30, 2022.

Third Quarter 2022 Highlights:

• Increased revenue 19% year-over-year to $41.5 million
• Reported net income of $4.9 million; Diluted EPS of $0.13; Adjusted EBITDA of $8.1 million
• Recorded cash from operations of $7.4 million for the third quarter
• Completed the second of two $10 million share buybacks
• Achieved highest number of orders in Company history for the 2^nd consecutive quarter

Third Quarter 2022 Financial Results Summary:

For the third quarter, the Company reported net revenue of $41.5 million, a 19% increase over the third quarter of 2021. Gross margins were 80% and net income was $4.9 million, a 46% increase from the second quarter of 2022.

As of September 30, 2022, the Company had working capital of $47.6 million. Cash on hand was $23.5 million at the end of the third quarter.

President and CEO Commentary:

"The third quarter of 2022 was another record-breaking period of order growth, with order numbers increasing 34% year-over-year," said Thomas Sandgaard, President and CEO. "In addition to increased orders, revenue, and profitability, we recorded the second-best period for operating cash flows in the Company's history at $7.4 million in the third quarter. Our strong cash flow allowed us to complete another $10 million stock buyback, totaling $20 million year-to-date, a reflection of our confidence in the Company's future performance. I am thrilled with our team's ability to efficiently execute on our top line goals while maintaining financial health and sustained profitability, and I look forward to continued success."

Fourth Quarter and Full Year 2022 Guidance:

The estimated range for fourth quarter 2022 revenue is between $48-$51 million, an increase of approximately 23% from Q4 2021. Adjusted EBITDA for the fourth quarter 2022 is estimated to range between $10-$12 million.

Based on the fourth quarter estimates, the full year 2022 revenue estimate now ranges between $157.4-$160.4 million and Adjusted EBITDA between $26.7-$28.7 million.

Conference Call and Webcast Details:

Thursday, October 27, 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/PxEgJzg8540

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)
	September 30,			December 31,
		2022		2021
ASSETS
Current assets:
Cash		$                     23,532		$                  42,612
Accounts receivable, net		28,350		28,632
Inventory, net		14,366		10,756
Prepaid expenses and other		1,134		689
Total current assets		67,382		82,689
Property and equipment, net		2,199		2,186
Operating lease asset		13,783		16,338
Finance lease asset		300		389
Deposits		591		585
Intangible assets, net of accumulated amortization		9,296		9,975
Goodwill		20,401		20,401
Deferred income taxes		1,483		711
Total assets		$                   115,435		$               133,274
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses		5,139		4,739
Cash dividends payable		16		3,629
Operating lease liability		2,943		2,859
Finance lease liability		126		118
Income taxes payable		916		2,296
Current portion of debt		5,333		5,333
Accrued payroll and related taxes		5,297		3,897
Total current liabilities		19,770		22,871
Long-term liabilities:
Long-term portion of debt, less issuance costs		6,621		10,605
Contingent consideration		9,700		9,700
Operating lease liability		13,936		15,856
Finance lease liability		221		317
Total liabilities		50,248		59,349
Stockholders' equity:
Common Stock		39		41
Additional paid-in capital		81,873		80,397
Treasury stock		(26,321)		(6,513)
Retained earnings		9,596		-
Total stockholders' equity		65,187		73,925
Total liabilities and stockholders' equity		$                  115,435		$              133,274

 

 

ZYNEX, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)
(unaudited)
		For the Three Months Ended September 30,				For the Nine Months Ended September 30,
		2022		2021		2022		2021
NET REVENUE
Devices		$       11,349		$        9,071		$       27,579		$     23,264
Supplies		30,171		25,715		81,783		66,671
Total net revenue		41,520		34,786		109,362		89,935
COSTS OF REVENUE AND OPERATING EXPENSES
Costs of revenue - devices and supplies		8,391		6,837		22,617		19,990
Sales and marketing		17,212		13,083		47,950		40,662
General and administrative		9,359		6,820		25,967		18,503
Total costs of revenue and operating expenses		34,962		26,740		96,534		79,155
Income from operations		6,558		8,046		12,828		10,780
Other (expense)
Loss on change in fair value of contingent consideration		(100)		-		-		-
Interest expense		(106)		(18)		(345)		(72)
Other (expense) net		(206)		(18)		(345)		(72)
Income from operations before income taxes		6,352		8,028		12,483		10,708
Income tax expense		1,479		1,921		2,887		2,499
Net income		$          4,873		$         6,107		$          9,596		$         8,209
Net income per share:
Basic		$           0.13		$          0.16		$           0.25		$         0.21
Diluted		$           0.13		$          0.16		$           0.24		$         0.21
Weighted average basic shares outstanding		38,046		38,245		38,881		38,286
Weighted average diluted shares outstanding		38,865		39,043		39,729		39,142

 

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,
	2022		2021		2022		2021
Net income	$                 4,873		$                   6,107		$                  9,596		$                    8,209
Depreciation and Amortization*	418		201		1,225		711
Stock-based compensation expense	578		532		1,702		1,041
Restructuring/severance**	-		-		-		318
Interest expense and other, net	206		18		345		72
Non-cash lease expense ***	572		553		982		856
Income tax expense	1,479		1,921		2,887		2,499
Adjusted EBITDA	$                 8,126		$                  9,332		$                16,737		$                 13,706
% of Net Revenue	20 %		27 %		15 %		15 %
* 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 Q3 2022 financial results?

Zynex reported Q3 2022 revenue of $41.5 million, a 19% year-over-year increase, and a net income of $4.9 million.

What is Zynex's revenue guidance for Q4 2022?

Zynex estimates Q4 2022 revenue between $48-$51 million, reflecting a 23% increase from Q4 2021.

How did Zynex perform in terms of cash flow in Q3 2022?

Zynex recorded operating cash flow of $7.4 million in Q3 2022, the second-best period in the company's history.

What is Zynex's diluted EPS for Q3 2022?

Zynex's diluted EPS for Q3 2022 was $0.13.

How much has Zynex spent on share buybacks in 2022?

Zynex has completed $20 million in share buybacks year-to-date, including a $10 million buyback in Q3 2022.