Exhibit 99.1

 

Zynex Announces 2022 Third Quarter Earnings

 

Englewood, CO, October 27, 2022 -- 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:

 

oIncreased revenue 19% year-over-year to $41.5 million
oReported net income of $4.9 million; Diluted EPS of $0.13; Adjusted EBITDA of $8.1 million
oRecorded cash from operations of $7.4 million for the third quarter
oCompleted the second of two $10 million share buybacks
oAchieved highest number of orders in Company history for the 2nd 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