Full Press Release Details
IRADIMED CORPORATION Announces
Fourth Quarter 2020 Financial Results
Winter Springs, Florida, February 4, 2021 - 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
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.
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
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.
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
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