Full Press Release Details
CORPORATION Announces Fourth Quarter 2019 Financial Results
| Reports fourth quarter 2019 revenue of $10.9 million, GAAP diluted EPS of $0.26 and non-GAAP diluted EPS of $0.30 | ||
| Renewed CE Mark for patient vital signs monitor and shipped associated backlog during the fourth quarter 2019 | ||
| Announces 2020 full year and first quarter financial guidance |
Winter Springs, Florida, February 6, 2020 - iRadimed
Corporation (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 and year ended December 31, 2019.
"Revenue for the fourth quarter increased over 30% from
the fourth quarter last year and for the full year 2019, revenue increased over 26% from the full year 2018. We also set a record
high for orders during 2019 and the fourth quarter marked our first period with orders exceeding $10 million. Operationally, we
accomplished much during the year, including resolving the FDA warning letter and regaining the CE Mark for our patient monitor.
We are very pleased with these accomplishments and the financial growth and look forward to building on this momentum in 2020.
We are more focused than ever on driving near-term growth and laying the groundwork for sustained value creation," said Leslie
McDonnell, President and Chief Executive Officer of the Company.
For the fourth quarter ended December 31, 2019, the Company
reported revenue of $10.9 million compared to $8.3 million for the fourth quarter 2018. Net income was $3.2 million, or $0.26 per
diluted share, compared to $1.7 million, or $0.14 per diluted share for the fourth quarter 2018. Diluted earnings per share for
the fourth quarter 2019 was positively impacted by $0.10 due to a favorable effective tax rate primarily associated with stock-based
Gross profit margin was 74.8 percent, compared to 76.2 percent
for the fourth quarter 2018. Domestic sales were 73.6 percent of total revenue, compared to 80.8 percent for the fourth quarter
2018. Revenue from sales of our 3880 MRI compatible patient vital signs monitoring system was $3.5 million for the fourth quarter
2019 compared to $2.1 million for the fourth quarter 2018.
net income was $3.7 million for the quarter ended December 31, 2019, which excludes $0.4 million
of stock compensation expense, net of tax. Non-GAAP net income for the quarter ended December 31, 2018 was $2.0 million, which
excludes $0.3 million of stock compensation expense, net of tax. Non-GAAP earnings per diluted share was $0.30, compared to $0.16
for the fourth quarter 2018. Free cash flow was $3.8 million, compared to $3.5 million
for the fourth quarter 2018. Non-GAAP net income and non-GAAP earnings per diluted share for the fourth quarter 2019 were favorably
impacted by a lower effective tax rate compared to the fourth quarter 2018.
For the year ended December 31, 2019, the Company reported
revenue of $38.5 million compared to $30.4 million for the same period in 2018. Net income was $9.6 million, or $0.78 per
diluted share, compared to net income of $6.3 million, or $0.52 per diluted share for the same period in 2018. Diluted
earnings per share for the full year 2019 was positively impacted by $0.10 due to a favorable effective tax rate primarily
associated with stock-based compensation.
Gross profit margin was 77.1 percent, compared to 76.3 percent
for the same period in 2018. Domestic sales were 80.3 percent of total revenue, compared to 80.5 percent for the same period in
2018. Revenue from sales of our 3880 MRI compatible patient vital signs monitoring system was $9.6 million for the year ended December
31, 2019 compared to $6.5 million for the same period in 2018.
net income was $10.5 million for the year ended December 31, 2019, which excludes $1.4 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 net income for the year ended December 31, 2018 was $6.6 million, which excludes $1.3 million of stock
compensation expense, net of tax and a $1.0 million reduction to non-GAAP net income for an infrequent tax item related to the
excess tax benefits recognized in the provision for income taxes associated with the exercise and sale of certain incentive stock
options. Non-GAAP earnings per diluted share for the year ended December 31, 2019 was $0.85, compared to $0.54 for the same period
in 2018. Non-GAAP net income and non-GAAP earnings per diluted share for 2019 were favorably impacted by a lower effective tax
rate compared to 2018.
Free cash flow was $9.9 million, compared to $7.1 million for
the year ended December 31, 2018.
As of December 31, 2019, the Company had combined cash and investments
For the full year 2020, the Company expects to report revenue
of $46.3 million to $47.1 million, GAAP diluted earnings per share of $0.72 to $0.80 and non-GAAP diluted earnings per share of
$0.84 to $0.92. The Company expects a higher effective tax rate during the full-year 2020, which negatively impacts forecasted
For the first quarter 2020, the Company expects to report revenue
of $10.5 million to $10.7 million, GAAP diluted earnings per share of $0.16 to $0.18 and non-GAAP diluted earnings per share of
The Company's non-GAAP earnings per share guidance excludes
stock-based compensation expense, net of tax, which the Company expects to be approximately $1.6 million for the year ending December
31, 2020. For the first quarter 2020, the Company's non-GAAP earnings per share guidance excludes stock-based compensation
expense, net of tax of $0.4 million.
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, February 6, 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 7783873.
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