Full Press Release Details
IRADIMED CORPORATION Announces First Quarter
2020 Financial Results
Winter Springs, Florida, April 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 months ended March 31, 2020.
"Since the outbreak of COVID-19, we have taken steps to
protect and support our teams. We have also taken action toward supporting our customers and their efforts in caring for those
infected with the virus. I am proud of the way our teams are responding to the pandemic and their willingness to help those in
need during this unprecedented time," said Leslie McDonnell, President and Chief Executive Officer of the Company.
"While we are unable to predict the severity of the impact
of COVID-19 on our business, we remain confident that higher demand for our products will return. We feel fortunate to have a strong
balance sheet and the ability to generate cash from operations, even at our first quarter revenue level, positioning us to further
support our customers, now and over the longer-term," said McDonnell.
For the first quarter ended March 31, 2020, the Company reported
revenue of $8.7 million compared to $8.4 million for the first quarter 2019. Net income was $1.8 million, or $0.14 per diluted
share, compared to $1.8 million, or $0.15 per diluted share for the first quarter 2019.
Non-GAAP net income was $2.2 million for the quarter ended March
31, 2020, which excludes $0.4 million of stock compensation expense, net of tax. Non-GAAP net income for the quarter ended
March 31, 2019 was $1.6 million, which excludes $0.3 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 $0.18 for the first
quarter 2020, compared to $0.13 for the first quarter 2019.
Revenue Information:
| Three Months Ended March 31, | ||||||||
| 2020 | 2019 | |||||||
| Devices: | ||||||||
| MRI compatible IV infusion pump system | $ | 2,664,834 | $ | 4,192,754 | ||||
| MRI compatible patient vital signs monitoring systems | 2,888,703 | 1,766,608 | ||||||
| Total Devices revenue | 5,553,537 | 5,959,362 | ||||||
| Disposables, services and other | 2,662,713 | 2,036,674 | ||||||
| Amortization of extended warranty agreements | 461,291 | 441,557 | ||||||
| Total revenue | $ | 8,677,541 | $ | 8,437,593 |
Domestic sales were 72.9 percent of total revenue for the first
quarter 2020, compared to 83.8 percent for the first quarter 2019. Gross profit margin was 74.5 percent, compared to 75.7 percent
for the first quarter 2019.
Cash Flow and Balance Sheet:
the three months ended March 31, 2020, the Company generated $1.2 million of cash from operations, compared to $0.7 million for
the same period last year. Free cash flow was $1.0 million for the first quarter 2020, compared to $0.6 million
for the first quarter 2019.
As of March 31, 2020, the Company had combined cash and investments
The Company announced its full-year and first-quarter 2020 financial
guidance on February 6, 2020. Due to the rapidly changing situation and 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
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 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. 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 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, April 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 6542729.
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;