Zynex Announces 2017 Second Quarter Earnings

                 Zynex Announces 2017 Second Quarter Earnings

* Revenue grew 53% year over year

* Net income of $1.5 million increased 769% year over year

* Adjusted EBITDA of $2.0 million increased 7463% year over year

* Fourth consecutive quarter of net income, 80% gross margin and 38% operating

* Year to date cash flows from operations increased 146% to $1.9 million

* EPS $0.05 in Q2

PR Newswire

LONE TREE, Colo., Aug. 14, 2017

LONE TREE, Colo., Aug. 14, 2017 /PRNewswire/ -- Zynex, Inc. (OTCQB: 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, 2017.


President and CEO Commentary:

Thomas Sandgaard, CEO commented: "I am very excited to report strong net
income of $1.5 million in the second quarter which continues our trend of
bottom line improvement. Our revenue grew to $5.0 million, an increase of 47%
compared to the first quarter and 53% above the second quarter of last year.
Our gross profit margin continued to improve to 80% versus 75% in Q1-2017 and
Q2-2016. Our focus on processing orders better to improve collections while
keeping fixed expenses minimized is paying off in terms of positive cash flow
and profitability.

We were able to strengthen our balance sheet at the end of the second quarter
when we paid off the entire balance on our credit facility, to which we owed
$2.2 million at the end of the first quarter 2017. Not only are we now saving
significant amount of interest and fees but it also provides much more
flexibility for us to operate. Our increasing profitability and cash flows
will allow us to invest in sales growth initiatives during the second half of

We currently estimate our third quarter revenue to range between $5.4 and $5.8
million with Adjusted EBITDA between $2.0 million and $2.4 million.

Our long term goals are to continue to take advantage of the huge void in the
electrotherapy industry, a listing on a national stock exchange and also
launching our Blood Volume Monitor into the hospital market for non-invasively
detecting blood loss and internal bleeding."

Second Quarter Financial Results Summary:

The Company reported net revenue of $5.0 million, a 53% increase over Q2-2016
and a 47% increase compared to Q1-2017. For the six months ended June 30,
2017, total revenue was $8.5 million vs. $6.8 million for the six months ended
June 30, 2016.

Cost of revenue increased to $1.0 million from $0.9, million which generated
increased gross margins of 80% compared to 71% last year. Gross margins for
the six months ended June 30, 2017 increased to 77% from 71% in 2016.

Selling, General and Administrative ("SG&A") expenses were $2.1 million in the
second quarter of 2017, compared to $2.5 million last year. The Company's SG&A
expenses decreased 16% compared to the same period last year, continuing a
trend of decreasing operating expenses.

Net income grew 769% to $1.5 million in the second quarter of 2017, compared
to a loss of $0.2 million last year. For the six months ended June 30, 2017,
net income grew 378% to $1.9 million from a loss of $0.7 million in 2016.

Adjusted EBITDA grew 7463% to $2.0 million in the second quarter of 2017
compared to a loss of $27,000 last year. For the six months ended June 30,
2017, Adjusted EBITDA grew 1959% to $2.6 million from a loss of $0.1 million
in 2016.

The Company generated $1.9 million of cash from operations during the first
half of 2017, which allowed it to pay off its credit facility which had been
in default since 2014.

Webcast Details: Monday, August 14, 2017 at 9:00 a.m. MT – 11:00 a.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


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 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 earnings
available to service debt. Non-GAAP financial measures should not be
considered superior to, in isolation from or as an alternative to the
financial information prepared in accordance with GAAP.

About Zynex 

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 is also developing a new blood volume monitor
for use in hospitals and surgery centers.  For additional information, please
visit: Zynex.com.

Safe Harbor Statement

Certain statements in this release are "forward-looking" and as such are
subject to numerous risks and uncertainties. Actual results may vary
significantly from the results expressed or implied in such statements.
Factors that could cause actual results to materially differ from
forward-looking statements include, but are not limited to, the need to obtain
additional capital or augment our liquidity in order to continue our business,
the success of our international expansion efforts, our ability to engage
additional sales representatives and their success, the need to obtain FDA
clearance and 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 from insurance companies for products sold
or rented to our customers, acceptance of our products by health insurance
providers, 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 uncertain outcome of pending material
litigation, our ability to up-list to a larger exchange and other risks
described in our filings with the Securities and Exchange Commission including
the "Risk Factors" section of our Annual Report on Form 10-K for the year
ended December 31, 2016 as well as Forms 10-Q, 8-K and 8-K/A, press releases
and the Company's website.

Contact: Zynex, Inc.  (303) 703-4906
Investor Relations Contact:
Amato And Partners, LLC
Investor Relations Counsel

(in thousands, except share data)
                                                       June 30,   December 31,
                                                       2017       2016
Current assets:
Cash                                                   $ 140      $   247
Accounts receivable, net                                 2,505        3,028
Inventory, net                                           178          107
Prepaid expenses                                         125          40
                                               Total     2,948        3,422
current assets
Property and equipment, net                              497          580
Deposits                                                 55           55
Amortizable intangible assets, net                       21           34
                                               Total   $ 3,521    $   4,091
Current liabilities:
Line of credit                                         $ -        $   2,771
Current portion of unsecured subordinated promissory     518          -
Current portion of capital leases                        120          118
Accounts payable and accrued expenses                    2,447        3,190
Deferred revenue                                         -            54
Accrued payroll and related taxes                        659          732
Deferred insurance reimbursement                         880          880
                                              Total      4,624        7,745
current liabilities
Long-term liabilities:
Long-term portion of unsecured subordinated promissory   -            -
Obligation to issue common stock to private placement    466          -
Capital leases, less current portion                     73           136
Warranty liability                                       12           12
                                              Total      5,175        7,893
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.001 par value; 10,000,000 shares
authorized; no shares issued and outstanding as of       -            -
June 30, 2017 and December 31, 2016
Common stock, $0.001 par value; 100,000,000 shares
authorized; 32,048,484 and 31,271,234 shares issued
and outstanding as of June 30, 2017 and
December 31, 2016, respectively                          32           31
Additional paid-in capital                               6,322        6,032
Accumulated deficit                                      (7,919)      (9,776)
                                              Total      (1,565)      (3,713)
Zynex, Inc. stockholders' deficit
                                                         (89)         (89)
Non-controlling interest
                                              Total      (1,654)      (3,802)
stockholders' deficit
                                              Total    $ 3,521    $   4,091
liabilities and stockholders' equity


(in thousands, except per share data)
                          For the Three Months Ended  For the Six Months Ended
                          June 30,                    June 30,
                              2017           2016         2017         2016
Product devices           $   2,464       $  2,100    $   4,326     $  4,682
Product supplies              2,578          1,186        4,152        2,081
Total revenue                 5,042          3,286        8,478        6,763
Costs of revenue -            1,020          941          1,943        1,924
rental, product & supply
Selling, general and          2,088          2,495        4,118        5,339
administrative expense
Total costs of revenue        3,108          3,436        6,061        7,263
and operating expenses
Income (loss) from            1,934          (150)        2,417        (500)
Other income (expense)
   Interest expense           (394)          (77)         (515)        (172)
Other income (expense),       (394)          (77)         (515)        (172)
Income from operations        1,540          (227)        1,902        (672)
before income taxes
  Income tax expense          36             -            45           -
Net Income (loss)             1,504          (227)        1,857        (672)
Plus: Net loss -              -              -            -            -
noncontrolling interest
Net income (loss) -
attributable to Zynex,    $   1,504       $  (227)    $   1,857     $  (672)
Net income (loss) per
share attributable to
Zynex, Inc.:
Basic                     $   0.05        $  (0.01)   $   0.06      $  (0.02)
Diluted                   $   0.05        $  (0.01)   $   0.06      $  (0.02)
Weighted average basic        32,048         31,271       31,790       31,271
shares outstanding
Weighted average diluted      33,262         31,271       32,413       31,271
shares outstanding


Reconciliation of GAAP to Non-GAAP Measures
(in thousands except per share data)
                        For the Three Months Ended   For the Six Months Ended
                        June 30,                     June 30,
                        2017           2016          2017         2016
Adjusted EBITDA:
Net income              $              $             $            $          
                         1,504          (227)         1,857       (672)
Depreciation and        41             107           112          204
Stock-based             13             16            37           158
compensation expense
   Interest expense and 394            77            515          172
other, net
   Income tax expense   36             -             45           -
Adjusted EBITDA         $              $             $            $          
                         1,988          (27)          2,566       (138)
% of Net revenue        39%            (1%)          14%          (1%)



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