• IRADIMED CORPORATION Announces Fourth Quarter 2020 Financial Results

    Source: Nasdaq GlobeNewswire / 04 Feb 2021 07:00:01   America/New_York

    • Reports fourth quarter 2020 revenue of $8.5 million, GAAP diluted EPS of $0.05 and non-GAAP diluted EPS of $0.07
    • Reports combined cash and investments of $52.0 million as of December 31, 2020

    WINTER SPRINGS, Fla., Feb. 04, 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 months and year ended December 31, 2020.

    “On a sequential basis, revenue for the fourth quarter 2020 was up 11% over the third quarter. Additionally, bookings for the current quarter were within approximately 1.2% from the fourth quarter last year, which was our highest bookings quarter in our history. I view these as positive trends and expect they will continue into the new year. However, we remain cautious about the first half of 2021,” said Roger Susi, President and Chief Executive Officer of the Company.

    “I would also like to thank everyone at IRADIMED for remaining agile during a very challenging time. I am proud of the team and their efforts this year,” said Susi.

    Three Months Ended December 31, 2020

    For the fourth quarter ended December 31, 2020, the Company reported revenue of $8.5 million compared to $10.9 million for the fourth quarter 2019. Net income was $0.6 million, or $0.05 per diluted share, compared to $3.2 million, or $0.26 per diluted share for the fourth quarter 2019.

    Non-GAAP net income was $0.9 million for the quarter ended December 31, 2020, which excludes $0.2 million of stock compensation expense, net of tax expense. Non-GAAP net income for the quarter ended December 31, 2019 was $3.7 million, which excludes $0.4 million of stock compensation expense, net of tax expense. Non-GAAP earnings per diluted share was $0.07 for the fourth quarter 2020, compared to $0.30 for the fourth quarter 2019.

    Year Ended December 31, 2020

    For the year ended December 31, 2020, the Company reported revenue of $31.7 million compared to $38.5 million for the same period in 2019. Net income was $1.4 million, or $0.11 per diluted share, compared to net income of $9.6 million, or $0.78 per diluted share for the same period in 2019.

    During the year ended December 31, 2020, the Company recognized total general and administrative expense of $3.2 million related to our former CEO, of which $2.7 million relates to the separation costs.

    Non-GAAP net income was $5.0 million for the year ended December 31, 2020, which excludes $1.3 million of on-going stock compensation expense, net of tax expense, and $2.4 million of expense, net of tax, related to the separation of our former CEO. Non-GAAP net income for the year ended December 31, 2019 was $10.5 million, which excludes $1.4 million of stock compensation expense, net of tax expense and a $0.6 million reduction to non-GAAP net income resulting from an infrequent tax item related to excess tax benefits recognized in the provision for income taxes for the exercise and sale of certain incentive stock options. Non-GAAP earnings per diluted share was $0.40 for the year ended December 31, 2020, compared to $0.85 for the same period in 2019.

    Revenue Information:

      Three Months Ended
    December 31,    		 Years Ended
    December 31,    		 
      2020 2019 2020 2019 
      (unaudited) (unaudited) 
    Devices:         
    MRI Compatible IV Infusion Pump
    Systems    		 $2,667,237 $4,539,858 $9,360,929 $18,052,406 
    MRI Compatible Patient Vital Signs Monitoring Systems 2,663,956 3,493,705 9,763,075 9,709,233 
    Total Devices revenue 5,331,193 8,033,563 19,124,004 27,761,639 
    Disposables, service and other 2,723,547 2,401,792 10,723,847 8,914,822 
    Amortization of extended warranty agreements 491,303 455,298 1,869,521 1,840,680 
    Total revenue $8,546,043 $10,890,653 $31,717,372 $38,517,141 

    For the fourth quarter 2020, domestic sales were 83.1 percent of total revenue, compared to 73.6 percent for the fourth quarter 2019. Gross profit margin was 75.3 percent for the fourth quarter 2020, compared to 74.8 percent for the fourth quarter 2019.

    For the year ended December 31, 2020, domestic sales were 77.4 percent of total revenue, compared to 80.3 percent for the same period in 2019. Gross profit margin was 74.3 percent for the year ended December 31, 2020, compared to 77.1 percent for the same period in 2019.

    Cash Flow and Balance Sheet:

    For the year ended December 31, 2020, cash from operations was $5.8 million, compared to $10.2 million for the same period in 2019.

    For the fourth quarter ended December 31, 2020, free cash flow was $2.4 million, compared to $3.8 million for the fourth quarter 2019. For the year ended December 31, 2020, free cash flow was $5.4 million, compared to $9.9 million for the same period in 2019.

    As of December 31, 2020, the Company had combined cash and investments of $52.0 million.

    Financial Guidance

    Significant uncertainty remains regarding the impact of COVID-19 on the Company’s financial results. Accordingly, the Company believes it is prudent to refrain from providing financial guidance at this time. The Company continues to monitor the circumstances around the pandemic and will provide financial guidance once there is more certainty around the pandemic’s impact on its business.

    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, February 4, 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 5668209.

    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

     December 31,
    2020    		 December 31,
    2019    		 
     (unaudited)   
    ASSETS    
    Current assets:    
    Cash and cash equivalents$50,068,728 $43,481,781 
    Accounts receivable, net4,574,932 7,293,303 
    Investments1,909,368 2,768,287 
    Inventory, net3,933,987 3,641,561 
    Prepaid expenses and other current assets771,666 407,802 
    Prepaid income taxes2,477,211 1,370,947 
    Total current assets63,735,892 58,963,681 
    Property and equipment, net2,120,148 2,053,806 
    Intangible assets, net960,885 860,087 
    Operating lease right-of-use asset2,715,030 2,955,873 
    Deferred income taxes, net1,272,672 1,663,415 
    Other assets261,993 232,002 
    Total assets$71,066,620 $66,728,864 
    LIABILITIES AND STOCKHOLDERS’ EQUITY    
    Current liabilities:    
    Accounts payable$657,054 $993,742 
    Accrued payroll and benefits1,714,782 2,166,209 
    Other accrued taxes103,981 596,576 
    Warranty reserve90,054 81,761 
    Deferred revenue1,949,259 1,671,420 
    Current portion of operating lease liability255,698 240,843 
    Other current liabilities146,435 108,421 
    Total current liabilities4,917,263 5,858,972 
    Deferred revenue2,305,413 2,630,467 
    Operating lease liability2,459,332 2,715,030 
    Total liabilities9,682,008 11,204,469 
    Stockholders’ equity:    
    Common stock1,231 1,177 
    Additional paid-in capital23,676,843 19,192,394 
    Retained earnings37,669,451 36,300,450 
    Accumulated other comprehensive income37,087 30,374 
    Total stockholders’ equity61,384,612 55,524,395 
    Total liabilities and stockholders’ equity$71,066,620 $66,728,864 

    IRADIMED CORPORATION
    CONDENSED STATEMENTS OF OPERATIONS
    (Unaudited)

     Three Months Ended
    December 31,    		 Years Ended
    December 31,    		 
     2020 2019 2020 2019 
    Revenue$8,546,043 $10,890,653 $31,717,372 $38,517,141 
    Cost of revenue2,106,609 2,741,838 8,142,962 8,816,161 
    Gross profit6,439,434 8,148,815 23,574,410 29,700,980 
    Operating expenses:        
    General and administrative2,206,990 2,968,476 12,269,079 10,451,266 
    Sales and marketing3,068,700 2,562,113 10,158,892 9,169,590 
    Research and development512,718 379,310 1,902,530 1,432,719 
    Total operating expenses5,788,408 5,909,899 24,330,501 21,053,575 
    Income (loss) from operations651,026 2,238,916 (756,091)8,647,405 
    Other income, net13,507 115,249 139,213 395,912 
    Income (loss) before provision for income taxes664,533 2,354,165 (616,878)9,043,317 
    Provision for income tax expense (benefit)27,119 (887,518)(1,985,879)(587,642)
    Net income$637,414 $3,241,683 $1,369,001 $9,630,959 
             
    Net income per share:        
    Basic$0.05 $0.28 $0.11 $0.85 
    Diluted$0.05 $0.26 $0.11 $0.78 
    Weighted average shares outstanding:        
    Basic12,279,999 11,559,526 12,123,556 11,282,214 
    Diluted12,514,348 12,345,968 12,440,086 12,276,444 

    IRADIMED CORPORATION
    CONDENSED STATEMENTS OF CASH FLOWS
    (Unaudited)

     Years Ended
    December 31,    		 
     2020 2019 
    Operating activities:    
    Net income$1,369,001 $9,630,959 
    Adjustments to reconcile net income to net cash provided by operating activities:    
    Change in allowance for doubtful accounts27,884 31,338 
    Change in provision for excess and obsolete inventory(87,178)48,114 
    Depreciation and amortization1,338,824 1,242,325 
    Disposal of property and equipment6,496 — 
    Stock-based compensation3,962,021 1,854,965 
    Deferred income taxes, net389,932 (596,755)
    Gain on maturities of investments(17,272)(10,764)
    Changes in operating assets and liabilities:    
    Accounts receivable2,690,487 (3,114,649)
    Inventory(282,904)123,680 
    Prepaid expenses and other current assets(1,098,908)(487,650)
    Other assets(65,187)(171,002)
    Accounts payable(403,567)149,319 
    Accrued payroll and benefits(451,427)363,888 
    Other accrued taxes(492,595)463,576 
    Warranty reserve8,293 7,237 
    Deferred revenue(12,202)700,348 
    Other current liabilities38,014 — 
    Prepaid income taxes(1,106,264)(3,055)
    Other4,048 859 
    Net cash provided by operating activities5,817,496 10,232,733 
    Investing activities:    
    Proceeds from maturities of investments883,715 3,687,000 
    Purchases of property and equipment(443,003)(368,281)
    Capitalized intangible assets(193,743)(117,531)
    Net cash provided by investing activities246,969 3,201,188 
    Financing activities:    
    Proceeds from exercises of stock options1,730,100 2,493,315 
    Taxes paid related to net share settlement of equity awards(1,207,618)(473,143)
    Net cash provided by financing activities522,482 2,020,172 
    Net increase in cash and cash equivalents6,586,947 15,454,093 
    Cash and cash equivalents, beginning of period43,481,781 28,027,688 
    Cash and cash equivalents, end of period$50,068,728 $43,481,781 

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

    Non-GAAP Net Income and Diluted EPS

     Three Months Ended
    December 31,    		 Years Ended
    December 31,    		 
     2020 2019 2020 2019 
    Net income$637,414 $3,241,683 $1,369,001 $9,630,959 
    Excluding:        
    Stock-based compensation expense, net of tax expense240,261 412,443 1,308,734 1,394,748 
    Separation expenses, net of tax1— — 2,353,964 — 
    Infrequent tax item2— — — (564,810)
    Non-GAAP net income$877,675 $3,654,126 $5,031,699 $10,460,897 
    Weighted-average shares outstanding – diluted12,514,348 12,345,968 12,440,086 12,276,444 
    Non-GAAP net income per share – diluted$0.07 $0.30 $0.40 $0.85 

    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.
    2 The infrequent tax item is related to the excess tax benefits recognized in the provision for income taxes associated with the exercise and sale of certain incentive stock options.

    Free Cash Flow

     Three Months Ended
    December 31,    		 Years Ended
    December 31,    		 
     2020 2019 2020 2019 
    Net cash provided by operating activities$2,496,068 $3,948,859 $5,817,496 $10,232,733 
    Less:        
    Purchases of property and equipment93,720 171,912 443,003 368,281 
    Free cash flow$2,402,348 $3,776,947 $5,374,493 $9,864,452 

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


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