• IRADIMED CORPORATION Announces Second Quarter 2021 Financial Results

    ソース: Nasdaq GlobeNewswire / 30 7 2021 06:00:00   America/Chicago

    • Reports second quarter 2021 revenue of $9.8 million, GAAP diluted EPS of $0.12 and non-GAAP diluted EPS of $0.14
    • Issues Q3 and full year 2021 financial guidance

    WINTER SPRINGS, Fla., July 30, 2021 (GLOBE NEWSWIRE) -- IRADIMED CORPORATION (the “Company”) (NASDAQ: IRMD), a leader in the development of innovative magnetic resonance imaging (“MRI”) medical devices and the only known provider of a non-magnetic intravenous (“IV”) infusion pump system, and non-magnetic patient vital signs monitoring systems that are designed for use during MRI procedures, today announced financial results for the three and six months ended June 30, 2021.

    “This quarter marks another record high in total bookings for our products, giving us confidence and optimism for the second half of 2021. Our second quarter financial results are a continuation of the growth trends we have seen over the last four quarters since the rise of COVID-19. I am very proud of our team and their resilience in overcoming the challenges of the past year. This is an exciting time in our history marked by growing demand for our unique products along with a new product cycle on the horizon, provides a strong platform for continued positive results,” said Roger Susi, President and Chief Executive Officer of the Company.

    Three Months Ended June 30, 2021

    For the second quarter ended June 30, 2021, the Company reported revenue of $9.8 million compared to $6.8 million for the second quarter 2020. Net income was $1.5 million, or $0.12 per diluted share, compared to a net loss of $(2.1) million, or $(0.17) per diluted share for the second quarter 2020. The increase in net income and diluted earnings per share is primarily the result of a $3.0 million increase in revenue for the second quarter 2021. Additionally, during the second quarter ended June 30, 2020, the Company recognized $2.8 million of general and administrative expense related to our former CEO.

    Non-GAAP net income was $1.7 million for the quarter ended June 30, 2021, which excludes $0.3 million of stock compensation expense, net of tax expense. Non-GAAP net income for the quarter ended June 30, 2020 was $0.6 million, which excludes $0.3 million of on-going stock compensation expense, net of tax, and $2.4 million of expenses, net of tax, related to the separation of our former CEO. Non-GAAP earnings per diluted share was $0.14 for the second quarter 2021, compared to $0.05 for the second quarter 2020.

    Six Months Ended June 30, 2021

    For the six months ended June 30, 2021, the Company reported revenue of $19.0 million compared to $15.5 million for the same period in 2020. Net income was $2.9 million, or $0.23 per diluted share, compared to a net loss of $(0.3) million, or $(0.03) per diluted share for the same period in 2020. The increase in net income and diluted earnings per share is primarily the result of a $3.5 million increase in revenue for the six months ended June 30, 2021. Additionally, during the six months ended June 30, 2020, the Company recognized total general and administrative expense of $3.2 million related to our former CEO.

    Non-GAAP net income was $3.4 million for the six months ended June 30, 2021, which excludes $0.5 million of stock compensation expense, net of tax expense. Non-GAAP net income for the six months ended June 30, 2020 was $2.8 million, which excludes $0.7 million of on-going stock compensation expense, net of tax, and $2.4 million of expenses, net of tax, related to the separation of our former CEO. Non-GAAP earnings per diluted share was $0.27 for the six months ended June 30, 2021, compared to $0.22 for the same period in 2020.

    Revenue Information:

     Three Months Ended  Six Months Ended
     June 30, June 30, 
     2021 2020 2021 2020
     (unaudited) (unaudited)
    Devices:           
    MRI compatible IV infusion pump system$2,456,767 $1,875,159 $5,960,114 $4,539,993
    MRI Compatible Patient Vital Signs Monitoring Systems 3,377,719  1,927,473  5,981,549  4,546,988
    Total Devices revenue 5,834,486  3,802,632  11,941,663  9,086,981
    Disposables, services and other 3,490,969  2,535,548  6,126,435  5,467,449
    Amortization of extended warranty agreements 484,968  456,512  966,321  917,803
    Total revenue$9,810,423 $6,794,692 $19,034,419 $15,472,233
                

    For the second quarter 2021, domestic sales were 82.0 percent of total revenue, compared to 68.3 percent for the second quarter 2020. Gross profit margin was 74.7 percent for the second quarter 2021, compared to 72.6 percent for the second quarter 2020.

    For the six months ended June 30, 2021, domestic sales were 80.5 percent of total revenue, compared to 70.9 percent for the same period in 2020. Gross profit margin was 75.6 percent for the six months ended June 30, 2021, compared to 73.6 percent for the same period in 2020.

    Cash Flow and Balance Sheet:

    For the six months ended June 30, 2021, cash from operations was $4.5 million, compared to $2.0 million for the same period in 2020.

    For the second quarter ended June 30, 2021, free cash flow was $3.5 million, compared to $0.7 million for the second quarter 2020. For the six months ended June 30, 2021, free cash flow was $4.3 million, compared to $1.7 million for the same period in 2020.

    As of June 30, 2021, the Company had combined cash and investments of $56.1 million.

    Financial Guidance

    For the third quarter 2021, the Company expects to report revenue of $10.3 million to $10.5 million, GAAP diluted earnings per share of $0.14 to $0.15, and non-GAAP diluted earnings per share of $0.16 to $0.17.

    For the full year 2021, the Company expects to report revenue of $40.0 million to $40.4 million, GAAP diluted earnings per share of $0.53 to $0.55, and non-GAAP diluted earnings per share of $0.60 to $0.62.

    The Company’s non-GAAP diluted earnings per share guidance excludes stock-based compensation expense, net of tax, which the Company expects to be approximately $0.3 million and $1.1 million for the third quarter and full year 2021, respectively.

    Use of non-GAAP Financial Measures

    The Company believes the use of non-GAAP net income, free cash flow and infrequent income tax items are helpful to our investors. These measures, which we refer to as our non-GAAP financial measures, are not prepared in accordance with U.S. GAAP.

    We calculate non-GAAP net income as net income excluding (1) stock-based compensation expense, net of tax. Because of varying available valuation methodologies, subjective assumptions and the variety of equity instruments that can impact a company’s non-cash expenses, we believe that providing non-GAAP financial measures that exclude stock-based compensation expense allows for meaningful comparisons between our operating results from period to period; (2) operating expenses, net of tax, that we believe are not indicative of the Company’s on-going core operating performance, and; (3) infrequent tax items are considered based on their nature and are excluded from the provision for income taxes as these costs or benefits are not indicative of our normal or future provision for income taxes. We calculate free cash flow as net cash provided by operating activities, less net cash used in investing activities for purchases of property and equipment.

    We consider free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by our business that can be used for strategic opportunities, including investing in our business, making strategic acquisitions, strengthening our balance sheet and returning cash to our shareholders via share repurchases.

    All of our non-GAAP financial measures are important tools for financial and operational decision making and for evaluating our on-going core operating results.

    A reconciliation of the non-GAAP financial measures used in this release to the most comparable U.S. GAAP measures for the respective periods can be found in the table later in this release immediately following the condensed statements of cash flows. These non-GAAP financial measures should not be considered in isolation or as a substitute for a measure of the Company’s operating performance or liquidity prepared in accordance with U.S. GAAP and are not indicative of net income or cash provided by operating activities.

    Conference Call

    IRADIMED has scheduled a conference call to discuss this announcement beginning at 11:00 a.m. Eastern Time today, July 30, 2021. Individuals interested in listening to the conference call may do so by dialing 1-844-413-1781 for domestic callers, or 1-716-247-5767 for international callers, and entering the reservation code 7590809.

    The conference call will also be available real-time via the internet at http://www.iradimed.com/en-us/investors/events/. A recording of the call will be available on the Company’s website following the completion of the call.

    About IRADIMED CORPORATION

    IRADIMED CORPORATION is a leader in the development of innovative magnetic resonance imaging (“MRI”) compatible medical devices. We are the only known provider of a non-magnetic intravenous (“IV”) infusion pump system that is specifically designed to be safe for use during MRI procedures. We were the first to develop an infusion delivery system that largely eliminates many of the dangers and problems present during MRI procedures. Standard infusion pumps contain magnetic and electronic components which can create radio frequency interference and are dangerous to operate in the presence of the powerful magnet that drives an MRI system. Our patented MRidium® MRI compatible IV infusion pump system has been designed with a non-magnetic ultrasonic motor, uniquely designed non-ferrous parts and other special features to safely and predictably deliver anesthesia and other IV fluids during various MRI procedures. Our pump solution provides a seamless approach that enables accurate, safe and dependable fluid delivery before, during and after an MRI scan, which is important to critically-ill patients who cannot be removed from their vital medications, and children and infants who must generally be sedated to remain immobile during an MRI scan.

    Our 3880 MRI compatible patient vital signs monitoring system has been designed with non-magnetic components and other special features to safely and accurately monitor a patient’s vital signs during various MRI procedures. The IRADIMED 3880 system operates dependably in magnetic fields up to 30,000 gauss, which means it can operate virtually anywhere in the MRI scanner room. The IRADIMED 3880 has a compact, lightweight design allowing it to travel with the patient from their critical care unit, to the MRI and back, resulting in increased patient safety through uninterrupted vital signs monitoring and decreasing the amount of time critically ill patients are away from critical care units. The features of the IRADIMED 3880 include: wireless ECG with dynamic gradient filtering; wireless SpO2 using Masimo® algorithms; non-magnetic respiratory CO2; invasive and non-invasive blood pressure; patient temperature, and; optional advanced multi-gas anesthetic agent unit featuring continuous Minimum Alveolar Concentration measurements. The IRADIMED 3880 MRI compatible patient vital signs monitoring system has an easy-to-use design and allows for the effective communication of patient vital signs information to clinicians.

    For more information please visit www.iradimed.com.  

    Forward-Looking Statements

    This press release contains forward-looking statements as defined in the Private Securities Litigation Act of 1995, particularly statements regarding our expectations, beliefs, plans, intentions, future operations, financial condition and prospects, and business strategies. These statements relate to future events or our future financial performance or condition and involve unknown risks, uncertainties and other factors that could cause our actual results, level of activity, performance or achievement to differ materially from those expressed or implied by these forward-looking statements. The risks and uncertainties referred to above include, but are not limited to, risks associated with the Company’s ability to receive an EC Certificate or CE Mark for our existing products and product candidates, receive FDA 510(k) clearance for new products and product candidates; unexpected costs, delays or diversion of management’s attention associated with the design, manufacture or sale of new products; the Company’s ability to implement successful sales techniques for existing and future products and evaluate the effectiveness of its sales techniques; additional actions, warnings or requests from the FDA or other regulatory bodies; our significant reliance on a limited number of products; potential disruptions in our limited supply chain for our products; a reduction in international distribution; actions of the FDA or other regulatory bodies that could delay, limit or suspend product development, manufacturing or sales; the effect of recalls, patient adverse events or deaths on our business; difficulties or delays in the development, production, manufacturing and marketing of new or existing products and services; changes in laws and regulations or in the interpretation or application of laws or regulations.

    Further information on these and other factors that could affect the Company’s financial results is included in filings we make with the Securities and Exchange Commission from time to time. All forward-looking statements are based on information available to us on the date hereof, and we assume no obligation to update forward-looking statements.

    IRADIMED CORPORATION
    CONDENSED BALANCE SHEETS

     June 30,
    2021    		 December 31,
    2020
     (unaudited)  
    ASSETS   
    Current assets:   
    Cash and cash equivalents$55,159,661 $50,068,728
    Investments948,958 1,909,368
    Accounts receivable, net3,884,704 4,574,932
    Inventory, net4,468,115 3,933,987
    Prepaid expenses and other current assets1,230,033 771,666
    Prepaid income taxes2,945,799 2,477,211
    Total current assets68,637,270 63,735,892
    Property and equipment, net2,092,224 2,120,148
    Intangible assets, net1,010,073 960,885
    Operating lease right-of-use asset2,614,351 2,715,030
    Deferred income taxes, net992,996 1,272,672
    Other assets232,685 261,993
    Total assets$75,579,599 $71,066,620
    LIABILITIES AND STOCKHOLDERS’ EQUITY   
    Current liabilities:   
    Accounts payable$667,882 $657,054
    Accrued payroll and benefits2,010,074 1,714,782
    Other accrued taxes122,452 103,981
    Warranty reserve108,528 90,054
    Deferred revenue2,973,334 1,949,259
    Current portion of operating lease liability268,488 255,698
    Other current liabilities146,435 146,435
    Total current liabilities6,297,193 4,917,263
    Deferred revenue2,034,429 2,305,413
    Operating lease liability2,345,863 2,459,332
    Total liabilities10,677,485 9,682,008
    Stockholders’ equity:   
    Common stock1,232 1,231
    Additional paid-in capital24,350,709 23,676,843
    Retained earnings40,525,994 37,669,451
    Accumulated other comprehensive income24,179 37,087
    Total stockholders’ equity64,902,114 61,384,612
    Total liabilities and stockholders’ equity$75,579,599 $71,066,620
          

    IRADIMED CORPORATION
    CONDENSED STATEMENTS OF OPERATIONS
    (Unaudited)

     Three Months Ended
    June 30,    		 Six Months Ended
    June 30,    		 
     2021 2020 2021 2020 
    Revenue$9,810,423 $6,794,692 $19,034,419 $15,472,233 
    Cost of revenue2,478,122 1,864,587 4,639,802 4,078,317 
    Gross profit7,332,301 4,930,105 14,394,617 11,393,916 
    Operating expenses:        
    General and administrative2,564,619 5,002,427 4,994,988 7,865,154 
    Sales and marketing2,469,777 2,374,134 4,848,901 4,807,701 
    Research and development453,679 482,654 929,496 912,936 
    Total operating expenses5,488,075 7,859,215 10,773,385 13,585,791 
    Income (loss) from operations1,844,226 (2,929,110)3,621,232 (2,191,875)
    Other income, net13,195 17,852 7,532 116,354 
    Income (loss) before provision for income taxes1,857,421 (2,911,258)3,628,764 (2,075,521)
    Provision for income tax expense (benefit)387,727 (798,988)772,221 (1,732,462)
    Net income (loss)$1,469,694 $(2,112,270)$2,856,543 $(343,059)
             
    Net income (loss) per share:        
    Basic$0.12 $(0.17)$0.23 $(0.03)
    Diluted$0.12 $(0.17)$0.23 $(0.03)
    Weighted average shares outstanding:        
    Basic12,313,563 12,076,399 12,312,078 11,983,913 
    Diluted12,554,828 12,076,399 12,539,483 11,983,913 
             

    IRADIMED CORPORATION
    CONDENSED STATEMENTS OF CASH FLOWS
    (Unaudited)

     Six Months Ended
    June 30,    		 
     2021 2020 
    Operating activities:    
    Net income (loss)$2,856,543 $(343,059)
    Adjustments to reconcile net income (loss) to net cash provided by operating activities:    
    Change in allowance for doubtful accounts(879)40,029 
    Change in provision for excess and obsolete inventory52,978 35,376 
    Depreciation and amortization680,091 668,823 
    Stock-based compensation705,753 3,227,590 
    Deferred income taxes, net290,183 (834,179)
    Loss on maturities of investments(13,005)(8,861)
    Changes in operating assets and liabilities:    
    Accounts receivable691,107 2,747,675 
    Inventory(493,488)(1,360,074)
    Prepaid expenses and other current assets(1,473,503)(674,047)
    Other assets30,425 (26,402)
    Accounts payable(79,060)(319,583)
    Accrued payroll and benefits295,292 (472,705)
    Other accrued taxes18,471 (88,451)
    Warranty reserve18,474 6,611 
    Deferred revenue1,402,978 255,298 
    Other current liabilities— 31,141 
    Prepaid income taxes(468,588)(897,951)
    Net cash provided by operating activities4,513,772 1,987,231 
    Investing activities:    
    Proceeds from maturities of investments950,000 480,000 
    Purchases of property and equipment(240,543)(300,558)
    Capitalized intangible assets(100,410)(122,534)
    Net cash provided by investing activities609,047 56,908 
    Financing activities:    
    Proceeds from exercises of stock options22,695 790,989 
    Taxes paid related to net share settlement of equity awards(54,581)(859,257)
    Net cash used in financing activities(31,886)(68,268)
    Net increase in cash and cash equivalents5,090,933 1,975,871 
    Cash and cash equivalents, beginning of period50,068,728 43,481,781 
    Cash and cash equivalents, end of period$55,159,661 $45,457,652 
           

    IRADIMED CORPORATION
    RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED)

    Non-GAAP Net Income and Diluted EPS

     Three Months Ended
    June 30,    		 Six Months Ended
    June 30,    		 
     2021 2020 2021 2020 
    Net income (loss)$1,469,694 $(2,112,270)$2,856,543 $(343,059)
    Excluding:        
    Stock-based compensation expense, net of tax expense270,571 322,031 533,380 749,831 
    Separation expenses, net of tax1— 2,353,964 — 2,353,964 
    Non-GAAP net income$1,740,265 $563,725 $3,389,923 $2,760,736 
    Weighted-average shares outstanding – diluted12,554,828 12,388,190 12,539,483 12,375,844 
    Non-GAAP net income per share – diluted$0.14 $0.05 $0.27 $0.22 
                 

    1  Separation expenses recognized pursuant to a separation agreement as described in Exhibit 10.1 to Form 8-K filed with the Securities and Exchange Commission on June 16, 2020.

    Free Cash Flow

     Three Months Ended
    June 30,    		 Six Months Ended
    June 30,    		 
     2021 2020 2021 2020 
    Net cash provided by operating activities$3,570,691 $790,596 $4,513,772 $1,987,231 
    Less:        
    Purchases of property and equipment108,225 133,965 240,543 300,558 
    Free cash flow$3,462,466 $656,631 $4,273,229 $1,686,673 
                 

    Media Contact:
    Chris Scott
    Chief Financial Officer
    IRADIMED CORPORATION
    (407) 677-8022
    InvestorRelations@iradimed.com


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