Full Press Release Details
IRADIMED CORPORATION Announces Second Quarter
2020 Financial Results
Winter Springs, Florida, July 30, 2020 - 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 system that are designed for use during
MRI procedures, today announced financial results for the three and six months ended June 30, 2020.
"As our customers continue being pressured in their efforts
to respond to the current pandemic's impacts, second quarter revenue was, as expected, depressed. Additionally, earnings
were impacted by a significant one-time charge resulting from costs incurred from the separation of our former CEO," said
Roger Susi, President and Chief Executive Officer of the Company.
"However, we are seeing encouraging signs from healthy
international demand and an increased ability to engage U.S. customers via video conferencing and in some cases, face-to-face interactions,
specifically with existing customers. Sales of our services and disposables have been picking up, pointing towards a trend that
MR imaging of patients needing IV therapy is strengthening. Still, with the constantly changing waves and locations of COVID-19
outbreaks, continued unpredictability must be expected, but to be clear, we are enthusiastic about the progress we are making with
our sales tactics and confident that as the pandemic and the uncertainties it brings subside, strong demand for our products will
Three Months Ended June 30, 2020
For the second quarter ended June 30, 2020, the Company reported
revenue of $6.8 million compared to $9.2 million for the second quarter 2019. Net loss was $(2.1) million, or $(0.17) per diluted
share, compared to net income of $2.1 million, or $0.17 per diluted share for the second quarter 2019.
During the three months ended June 30, 2020, the Company recognized
total general and administrative expense of $2.8 million related to our former CEO, of which $2.7 million relates to the separation.
Non-GAAP net income was $0.6 million for the quarter ended June
30, 2020, 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 net income for the quarter ended June 30, 2019 was $2.4 million,
which excludes $0.4 million of stock compensation expense, net of tax expense. Non-GAAP earnings per diluted share was $0.05 for
the second quarter 2020, compared to $0.20 for the second quarter 2019.
Six Months Ended June 30, 2020
For the six months ended June 30, 2020, the Company reported
revenue of $15.5 million compared to $17.7 million for the same period in 2019. Net loss was $(0.3) million, or $(0.03) per diluted
share, compared to net income of $3.9 million, or $0.32 per diluted share for the same period in 2019.
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, of which $2.7 million relates to the separation.
Non-GAAP net income was $2.8 million for the six months ended
June 30, 2020, 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 net income for the six months ended June 30, 2019 was $4.0 million,
which excludes $0.6 million of stock compensation expense, net of tax 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 $0.22 for the six months ended June 30, 2020, compared
to $0.33 for the same period in 2019.
Revenue Information:
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| (unaudited) | (unaudited) | |||||||||||||||
| Devices: | ||||||||||||||||
| MRI Compatible IV Infusion Pump Systems | $ | 1,875,159 | $ | 4,550,542 | $ | 4,539,993 | $ | 8,743,296 | ||||||||
| MRI Compatible Patient Vital Signs Monitoring Systems | 1,927,473 | 1,891,031 | 4,546,988 | 3,657,639 | ||||||||||||
| Total Devices Revenue | 3,802,632 | 6,441,573 | 9,086,981 | 12,400,935 | ||||||||||||
| Disposables and Services | 2,535,548 | 2,313,755 | 5,467,449 | 4,350,428 | ||||||||||||
| Amortization of extended warranty agreements | 456,512 | 470,268 | 917,803 | 911,826 | ||||||||||||
| Total revenue | $ | 6,794,692 | $ | 9,225,596 | $ | 15,472,233 | $ | 17,663,189 |
For the second quarter 2020, domestic sales were 68.3 percent
of total revenue, compared to 82.0 percent for the second quarter 2019. Gross profit margin was 72.6 percent for the second quarter
2020, compared to 79.9 percent for the second quarter 2019.
For the six months ended June 30, 2020, domestic sales were
70.9 percent of total revenue, compared to 82.9 percent for the same period in 2019. Gross profit margin was 73.6 percent for the
six months ended June 30, 2020, compared to 77.9 percent for the same period in 2019.
Cash Flow and Balance Sheet:
For the six months ended June 30, 2020, the Company generated
$2.0 million of cash from operations, compared to $3.1 million for the same period in 2019.
the second quarter ended June 30, 2020, free cash flow was $0.7 million, compared to $2.4 million
for the second quarter 2019. For the six months ended June 30, 2020, free cash flow was $1.7 million, compared to $3.0 million
for the same period in 2019.
As of June 30, 2020, the Company had combined cash and investments
The Company announced its full-year 2020 financial guidance
on February 6, 2020. Due to the high degree of uncertainty created by the global impact of COVID-19, the Company withdrew its previous
guidance on April 7, 2020 and is not providing any additional financial guidance at this time.
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.
iRadimed has scheduled
a conference call to discuss this announcement beginning at 11:00 a.m. Eastern Time today, July 30, 2020. 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 8281889.
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