- Reports net sales of $25.8 million for the second quarter of
2024, an increase of 43% over the same period in 2023.
- Reports gross profit of $4.6 million for the second quarter of
2024, an increase of 341% over the same period in 2023.
- Achieves gross margin of 18% for the second quarter of 2024
compared to a gross margin of 6% for the same period in 2023.
- Generates $1.4 million in cash flow from operations for the
second quarter of 2024.
- Expects net sales for 2024 to range between $95 million and $98
million, raising guidance for the second time this year.
Rockwell Medical, Inc. (the "Company") (Nasdaq: RMTI), a
healthcare company that develops, manufactures, commercializes, and
distributes a portfolio of hemodialysis products to dialysis
providers worldwide, today announced financial and operational
results for the three and six months ended June 30, 2024.
"Over the past two years, we have been relentless in our
determination to put Rockwell Medical in a stronger and more stable
financial position that ultimately has the potential to positively
impact more patients," said Mark Strobeck, Ph.D., Rockwell
Medical’s President and CEO. "We achieved profitability on a cash
flow basis, which we believe is a turning point for our
organization. We expect to build upon this momentum in the coming
quarters."
SECOND QUARTER 2024 FINANCIAL HIGHLIGHTS
Net sales for the three and six months ended June 30, 2024
consisted solely of concentrates products sales. Net sales for the
three and six months ended June 30, 2023 consisted of sales of
concentrates products and the recognition of $1.5 million of
deferred license revenue related to the termination of the Baxter
distribution agreement. The following financial highlights for the
three and six months ended June 30, 2024 and comparable period
year-over-year financial highlights illustrate the organic growth
driven exclusively by the Company's hemodialysis concentrates
products, particularly after excluding the impact of deferred
revenue recognized in the first quarter of 2023.
- Net sales for the three months ended June 30, 2024 were $25.8
million, the highest quarterly concentrates products sales
generated to date for the Company. This represents a 43% increase
over net sales of $18.1 million for the same period in 2023. Net
sales for the six months ended June 30, 2024 were $48.5 million,
which represents a 29% increase over net sales of $37.7 million for
the same period in 2023. Excluding deferred revenue, net sales for
the six months ended July 30, 2024 increased 34% over the same
period in 2023.
- Gross profit for the three months ended June 30, 2024 was $4.6
million, which represents a 341% increase over $1.0 million for the
same period in 2023. Gross profit for the six months ended June 30,
2024 was $7.6 million, which represents a 110% increase over $3.6
million for the same period in 2023. Excluding deferred revenue,
gross profit for the six months ended June 30, 2024 increased 252%
over the same period in 2023.
- Gross margin for the three months ended June 30, 2024 was 18%,
which represents an increase from 6% for the same period in 2023.
Gross margin for the six months ended June 30, 2024 was 16%, which
represents an increase from 10%, or 6% excluding deferred revenue,
for the same period in 2023.
- Net income for the three months ended June 30, 2024 was $0.3
million compared to a net loss of $3.3 million for the same period
in 2023. Net loss for the six months ended June 30, 2024 improved
by $3.7 million over a net loss of $5.1 million for the same period
in 2023. Excluding deferred revenue, net loss for the six months
ended June 30, 2024 represented a $5.1 million improvement over net
loss of $6.5 million the same period in 2023.
- Adjusted EBITDA for the three months ended June 30, 2024 was
$1.5 million compared with a negative adjusted EBITDA of $2.3
million for the same period in 2023. Adjusted EBITDA for the six
months ended June 30, 2024 was $1.0 million compared with a
negative adjusted EBITDA of $3.2 million for the same period in
2023. Excluding deferred revenue, adjusted EBITDA for the six
months ended June 30, 2024 increased by $5.7 million over the same
period in 2023.
- Cash and cash equivalents and investments available-for-sale at
June 30, 2024 increased to $11.9 million, which was driven by $1.4
million in cash flow from operations, compared to cash and cash
equivalents and investments available-for-sale of $8.6 million at
March 31, 2024.
- Subsequent to the second quarter of 2024, Rockwell Medical and
Evoqua Water Technologies LLC (“Evoqua”) executed an amendment to
the Asset Purchase Agreement dated July 10, 2023, which clarifies
certain terms regarding physical assets covered by the purchase
agreement between the two companies, provides for an extended
payment schedule for the deferred payments due by the Company to
Evoqua, and provides for a partial reduction in such payments.
Three Months Ended June
30,
Six Months Ended June
30,
(In Millions, Except Per Share
Amounts)
2024
2023
2024
2023*
Net Sales
$
25.8
$
18.1
$
48.5
$
37.7
Gross Profit (Loss)
4.6
1.0
7.6
3.6
Operating Income (Loss)
0.5
(3.0
)
(0.8
)
(4.4
)
Net Income (Loss)
0.3
(3.3
)
(1.4
)
(5.1
)
Adjusted EBITDA**
1.5
(2.3
)
1.0
(3.2
)
Basic and Diluted Net Income (Loss) per
Share **
$
0.01
$
(0.18
)
$
(0.05
)
$
(0.27
)
Adjusted EPS ***
$
0.05
$
(0.12
)
$
0.03
$
(0.18
)
*
Includes $1.5 million of deferred license
revenue related to the termination of the Baxter distribution
agreement.
**
See Note 3 for more details related to
Basic and Diluted Weighted Average Shares Outstanding on Form 10-Q
filed August 8, 2024.
***
See reconciliation to GAAP financial
measures in the tables below.
SECOND QUARTER 2024 OPERATING HIGHLIGHTS
- Rockwell Medical promoted Tim Chole to Chief Commercial
Officer. Mr. Chole joined Rockwell Medical in December 2019 as SVP,
Sales and Marketing. In November 2022, following the Company's new
business strategy announcement, Mr. Chole led Rockwell's commercial
organization and supported the Company's vision to focus its
efforts on enhancing its revenue-generating businesses and driving
the Company towards profitability.
- Rockwell Medical maintained its membership on the Russell
Microcap® Index for the second year in a row. FTSE Russell
determines membership for its Russell indexes primarily by
objective, market capitalization rankings and style
attributes.
- Rockwell Medical continues to upgrade its manufacturing
equipment to streamline production and improve margins; renegotiate
contracts with key suppliers; and negotiate new contracts with new
customers.
- Rockwell Medical launched its Convenience Pack, which includes
two 1-gallon pre-mixed containers of one of the Company's
hemodialysis concentrate products RenalPure or SteriLyte, offering
a number of advantages for home patients and acute
facilities.
GUIDANCE
Rockwell Medical updates its 2024 guidance as follows:
Updated 2024 Guidance (As of
August 8, 2024)
Updated 2024 Guidance (As of
May 14, 2024)
Original 2024 Guidance (As of
March 21, 2024)
Net (Product) Sales
$95.0M to $98.0M
$90.0M to $94.0M
$84.0M to $88.0M
Gross Profit
$14.0M to $16.0M
$13.0M to $15.0M
$12.0M to $14.0M
Gross Margin
14% to 17%
14% to 16%
14% to 16%
Adjusted EBITDA
$0.75M to $1.5M
$0.5M to $1.0M
$0M to $0.5M
Rockwell Medical projects net sales to grow in the mid-to-high
single digits in 2025 and beyond. Rockwell Medical projects gross
margin in 2025 to be approximately 20% and reaching above 25% in
2026 and beyond.
CONFERENCE CALL AND WEBCAST DETAILS
Date: Thursday, August 8, 2024
Time: 8:00am ET Live Number: (888) 660-6347 //
(International) 1 (929) 201-6594 Conference Call ID: 4944610
Webcast and Replay: www.RockwellMed.com/Results
Speakers:
- Mark Strobeck, Ph.D. — President and Chief Executive Officer;
and
- Jesse Neri — SVP, Finance.
Format: Discussion of second quarter
2024 financial and operational results followed by Q&A.
NON-GAAP FINANCIAL MEASURES
To supplement Rockwell Medical’s unaudited condensed
consolidated statements of operations and unaudited condensed
consolidated balance sheets, which are prepared in conformity with
generally accepted accounting principles in the United States of
America (“GAAP”), this press release also includes references to
Adjusted EBITDA, a non-GAAP financial measure that is defined as
net income (loss) before net interest income (expense), net other
income (expense), income tax expenses (benefit), depreciation and
amortization, impairment charges, stock-based compensation expense,
and other items that are considered unusual or not representative
of underlying trends of our business, including but not limited to
one-time severance costs, deferred revenue and inventory reserve
amounts, if applicable for the periods presented. The Company has
provided a reconciliation of net loss, the most directly comparable
GAAP financial measure, to Adjusted EBITDA at the end of this press
release. In addition, the Company has excluded deferred revenue
from six-month calculations of net sales, gross profit, gross
margin and net loss. Each of these adjusted measures is a non-GAAP
financial measure. The Company has provided reconciliations to the
GAAP measures at the end of this press release.
Adjusted EBITDA is a key measure used by Rockwell Medical to
understand and evaluate operating performance and trends, to
prepare and approve its annual budget and to develop short- and
long-term operating plans. The Company provides Adjusted EBITDA
because it believes the metric is helpful in highlighting trends in
its operating results because it excludes items that are not
indicative of Rockwell Medical’s core operating performance. In
particular, the Company believes that the exclusion of the items
eliminated in calculating Adjusted EBITDA provides useful measures
for period-to-period comparisons of Rockwell Medical’s business.
Adjusted net sales, gross profit, gross margin and net loss is used
by Rockwell Medical to understand growth within its hemodialysis
concentrates business by excluding a one-time item that is not
indicative of its core operating performance.
Adjusted EBITDA and net sales, gross profit, gross margin, net
income, and net loss should not be considered in isolation of, or
as an alternative to, measures prepared in accordance with GAAP.
Other companies, including companies in the same industry, may
calculate similarly titled non-GAAP financial measures differently
or may use other measures to evaluate their performance, all of
which could reduce the usefulness of Adjusted EBITDA and adjusted
net sales, gross profit, gross margin and net loss as tools for
comparison. There are a number of limitations related to the use of
these non-GAAP financial measures rather than the most directly
comparable financial measures calculated in accordance with GAAP.
When evaluating the Company’s performance, you should consider
Adjusted EBITDA and adjusted net sales, gross profit, gross margin
and net loss alongside other financial performance measures,
including net loss and other GAAP results. Adjusted EBITDA is our
best proxy for cash burn. Adjusted net sales, gross profit, gross
margin and net loss enable us to understand growth within our
hemodialysis concentrates business by excluding a one-time item
that is not indicative of our core operating performance.
ABOUT ROCKWELL MEDICAL
Rockwell Medical, Inc. (Nasdaq: RMTI) is a healthcare company
that develops, manufactures, commercializes, and distributes a
portfolio of hemodialysis products for dialysis providers
worldwide. Rockwell Medical's mission is to provide dialysis
clinics and the patients they serve with the highest quality
products supported by the best customer service in the industry.
Rockwell is focused on innovative, long-term growth strategies that
enhance its products, its processes, and its people, enabling the
Company to deliver exceptional value to the healthcare system and
provide a positive impact on the lives of hemodialysis patients.
Hemodialysis is the most common form of end-stage kidney disease
treatment and is usually performed at freestanding outpatient
dialysis centers, at hospital-based outpatient centers, at skilled
nursing facilities, or in a patient’s home. Rockwell Medical's
products are vital to vulnerable patients with end-stage kidney
disease, and the Company is relentless in providing unmatched
reliability and customer service. Rockwell Medical is the largest
supplier of liquid bicarbonate concentrates and the second largest
supplier of acid and dry bicarbonate concentrates for dialysis
patients in the United States and has the vision of becoming the
leading global supplier of all hemodialysis concentrates. Certified
as a Great Place to Work® in 2023 and 2024, Rockwell Medical is
Driven to Deliver Life-Sustaining Dialysis SolutionsTM. For more
information, visit www.RockwellMed.com.
FORWARD-LOOKING STATEMENTS
Certain statements in this press release may constitute
"forward-looking statements" within the meaning of the federal
securities laws. Words such as, "may," "might," "will," "should,"
"believe," "expect," "anticipate," "estimate," "continue," "could,"
"can," "would," "develop," "plan," "potential," "predict,"
"forecast," "project," "intend," "look forward to," "remain
confident," “feel confident,” “guidance,” or the negative of these
terms, and similar expressions, or statements regarding intent,
belief, or current expectations, are forward looking statements.
These statements include (without limitation) statements regarding:
plans to expand our global footprint; the impact of our strategy on
our top and bottom line and building upon our financial results;
the growth of our business; the impact of attaining profitability
on the trajectory of our business; guidance for expenses, net
sales, gross profit, gross margin and adjusted EBITDA. While
Rockwell Medical believes these forward-looking statements are
reasonable, undue reliance should not be placed on any such
forward-looking statements, which are based on information
available to us on the date of this release. These forward-looking
statements are based upon current estimates and assumptions and are
subject to various risks and uncertainties (including, without
limitation, those set forth in Rockwell Medical's SEC filings),
many of which are beyond our control and subject to change. Actual
results could be materially different. Risks and uncertainties
include but are not limited to those risks more fully discussed in
the "Risk Factors" section of our Annual Report on Form 10-K for
the year ended December 31, 2023, as such description may be
amended or updated in any subsequent reports filed with the SEC.
Rockwell Medical expressly disclaims any obligation to update our
forward-looking statements, except as may be required by law.
Financial Tables Follow
ROCKWELL MEDICAL, INC. AND SUBSIDIARIES CONDENSED
CONSOLIDATED BALANCE SHEETS (Dollars In Thousands)
June 30, June 30,
2024
2023
Cash, Cash Equivalents & Investments
available-for-sale
$
11,863
$
14,865
Total Assets
$
53,028
$
38,037
Total Liabilities
$
29,530
$
28,509
Total Stockholders’ Equity
$
23,498
$
9,528
Common Stock Outstanding
31,030,218
18,588,673
Common stock and common stock equivalents*
38,808,569
32,033,132
*Common stock and common stock equivalents: Common stock
31,030,218
16,795,673
Common stock warrants (pre-funded)
-
1,793,000
Common stock and pre-funded stock warrants
31,030,218
18,588,673
Preferred stock converted
1,363,636
1,363,636
Options to purchase common stock
1,895,031
1,570,599
Restricted stock awards
891
891
Restricted stock units
534,309
313,065
Common stock warrants
3,984,484
10,196,268
Total common stock and common stock equivalents
38,808,569
32,033,132
ROCKWELL MEDICAL, INC. AND SUBSIDIARIES UNAUDITED
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(In
Thousands, Except Shares and Per Share Amounts)
Three Months EndedJune
30, 2024 Three Months EndedJune 30, 2023
Six Months EndedJune
30, 2024 Six Months
EndedJune 30, 2023
Net Sales
$
25,832
$
18,080
$
48,508
$
37,748
Cost of Sales
21,282
17,047
40,894
34,116
Gross Profit
4,550
1,033
7,614
3,632
Research and Product Development
-
167
18
445
Selling and Marketing
586
530
1,180
1,028
General and Administrative
3,449
3,295
7,225
6,545
Operating Income (Loss)
515
(2,959
)
(809
)
(4,386
)
Other (Expense)
Income Realized
Gain on Investments
51
-
51
-
Interest Expense
(232
)
(395
)
(663
)
(782
)
Interest Income
9
49
33
113
Total Other Expense
(172
)
(346
)
(579
)
(669
)
Net Income (Loss)
$
343
$
(3,305
)
$
(1,388
)
$
(5,055
)
Basic Net Income (Loss) per Share
$
0.01
$
(0.18
)
$
(0.05
)
$
(0.27
)
Basic Weighted Average Shares Outstanding
30,451,622
18,496,640
29,889,413
18,480,248
Reconciliation
to GAAP Financial Measures (In Thousands, Except Shares and
Per Share Amounts)
Three
Months Ended Six Months Ended June 30 June
30
2024
2023
2024
2023
Net Income (Loss)
$
343
$
(3,305
)
$
(1,388
)
$
(5,055
)
Income taxes Interest expense
232
395
663
782
Depreciation and amortization
548
169
1,092
328
EBITDA
1,123
(2,741
)
367
(3,945
)
Severance costs
9
171
9
201
Stock-based compensation
338
312
589
505
Adjusted EBITDA
$
1,470
$
(2,258
)
$
965
$
(3,239
)
Adjusted EPS
$
0.05
$
(0.12
)
$
0.03
$
(0.18
)
Basic Weighted Average Shares Outstanding
30,451,622
18,496,640
29,889,413
18,480,248
Reconciliation to GAAP Financial Measures (Dollars in
Thousands)
Three
Months Ended Six Months Ended June 30 June
30
2024
2023
2024
2023
Net Sales
$
25,832
$
18,080
$
48,508
$
37,748
Deferred Revenue
-
-
-
(1,472
)
Net Sales excluding Deferred Revenue
25,832
18,080
48,508
36,276
Gross Profit
4,550
1,033
7,614
3,632
Deferred Revenue
-
-
-
(1,472
)
Gross Profit excluding Deferred Revenue
$
4,550
$
1,033
$
7,614
$
2,160
Net Income (Loss)
343
(3,305
)
(1,388
)
(5,055
)
Deferred Revenue
-
-
-
(1,472
)
Net Income (Loss) excluding Deferred Revenue
$
343
$
(3,305
)
$
(1,388
)
$
(6,527
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240808643432/en/
Heather R. Hunter SVP, Chief Corporate Affairs Officer (248)
432-1362 IR@RockwellMed.com
Rockwell Medical (NASDAQ:RMTI)
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