Full Press Release Details
Rockwell Medical Achieves Profitability on an
Adjusted EBITDA Basis
in the Fourth Quarter 2023 and Record Net Sales, Gross Profit
and Gross Margin for the Full-Year 2023
Wixom, Michigan, March 21, 2024 - Rockwell Medical, Inc.
(the "Company") (Nasdaq: RMTI), a healthcare company that develops, manufactures, commercializes,
and distributes a portfolio of hemodialysis products to dialysis providers worldwide, today announced financial and operational
results for the three months and twelve months ended December 31, 2023.
"2023 was a transformative year for Rockwell Medical, making
it the second year in a row that we have provided guidance and met or exceeded that guidance. We significantly improved Rockwell Medical's
financial health, generated the highest revenue and gross profit to-date for the Company, and successfully achieved profitability on
an adjusted EBITDA basis in the fourth quarter of 2023, the first time in the Company's history," said
Mark Strobeck, Ph.D., Rockwell Medical's President and
CEO. "Over the last 18 months, we have completed two acquisitions, renegotiated a number of customer product and supply agreements-securing
multi-year agreements with minimums-expanded our geographic footprint both domestically and internationally, and significantly
improved efficiencies in our manufacturing processes that are being realized through improved gross margin. Our focused
strategy is having a direct impact on Rockwell Medical's top and bottom line, which we project will continue in 2024 and beyond.
For us it's personal. Ensuring Rockwell Medical's long-term viability secures our ability to manufacture and distribute life-sustaining
dialysis solutions which have a positive impact on the lives of hemodialysis patients with end-stage kidney disease."
FOURTH QUARTER AND FULL-YEAR 2023 FINANCIAL HIGHLIGHTS
| Three Months Ended December 31, | ||||||||
| (In Millions, Except Per Share Amounts) | 2023 | 2022 | ||||||
| Net Sales | $ | 22.1 | $ | 19.3 | ||||
| Gross Profit | 2.9 | 2.3 | ||||||
| Net Income (Loss) | (1.5 | ) | (2.4 | ) | ||||
| Adjusted EBITDA* | 0.5 | (0.6 | ) | |||||
| Basic and Diluted Net Loss per Share ** | $ | (0.05 | ) | $ | (0.13 | ) | ||
| Adjusted EPS * | $ | 0.02 | $ | (0.03 | ) |
| Twelve Months Ended December 31, | ||||||||||||||||
| (In Millions, Except Per Share Amounts) | 2024(E) | 2023 | 2022 | 2021 | ||||||||||||
| Net Sales | $ | 84 - 88 | $ | 83.6 | $ | 72.8 | $ | 61.9 | ||||||||
| Gross Profit | 12 - 14 | 8.7 | 4.1 | (2.4 | ) | |||||||||||
| Net Income (Loss) | n/a | (8.4 | ) | (18.7 | ) | (32.7 | ) | |||||||||
| Adjusted EBITDA* | 0.0 - 0.5 | (3.9 | ) | (13.8 | ) | (28.4 | ) | |||||||||
| Basic and Diluted Net Loss per Share ** | n/a | $ | (0.36 | ) | $ | (1.31 | ) | $ | (3.83 | ) | ||||||
| Adjusted EPS * | n/a | $ | (0.17 | ) | $ | (0.97 | ) | $ | (3.33 | ) |
* See reconciliation to GAAP financial measures in the tables
** See Note 3 for more details related to Basic and Diluted
Weighted Average Shares Outstanding in our 2023 Form 10-K.
FOURTH QUARTER AND FULL-YEAR 2023 OPERATING HIGHLIGHTS
Rockwell projects its 2024 guidance as follows:
| 2024 Guidance | Expected Improvement (%) over 2023 | |
| Net (Product) Sales | $84.0 million to $88.0 million | 5% to 10% increase over $79.8 million in product sales for 2023 |
| Gross Profit | $12.0 million to $14.0 million | 40% to 61% increase over $8.7 million in gross profit for 2023 |
| Gross Margin | 14% to 16% | 4 to 6 percentage point increase over 10% in gross margin for 2023 |
| Adjusted EBITDA | $0 million to $0.5 million | 100% to 113% increase over ($3.9) million in adjusted EBITDA for 2023 |
Rockwell Medical projects net sales to grow in the mid-to-high single
digits in 2025 and beyond. Rockwell Medical projects gross margin in 2025 to be approximately 20% and reaching above 25% in 2026 and beyond.
CONFERENCE CALL AND WEBCAST DETAILS
660-6347 // (International) 1 (929) 201-6594
and Replay: www.RockwellMed.com/Results
of fourth quarter and full-year 2023 financial and operational results followed by Q&A.
NON-GAAP FINANCIAL MEASURES
To supplement Rockwell Medical's unaudited condensed consolidated
statements of operations and unaudited condensed consolidated balance sheets, which are prepared in conformity with generally accepted
accounting principles in the United States of America ("GAAP"), this press release also includes references to Adjusted EBITDA,
a non-GAAP financial measure that is defined as net income (loss) before net interest income (expense), net other income (expense), income
tax expenses (benefit), depreciation and amortization, impairment charges, stock-based compensation expense, and other items that are
considered unusual or not representative of underlying trends of our business, including but not limited to one-time severance costs,
deferred revenue and inventory reserve amounts, if applicable for the periods presented. The Company has provided a reconciliation of
net loss, the most directly comparable GAAP financial measure, to Adjusted EBITDA at the end of this press release.
Adjusted EBITDA is a key measure used by Rockwell Medical to understand
and evaluate operating performance and trends, to prepare and approve its annual budget and to develop short- and long-term operating
plans. The Company provides Adjusted EBITDA because it believes the metric is helpful in highlighting trends in its operating results
because it excludes items that are not indicative of Rockwell Medical's core operating performance. In particular, the Company believes
that the exclusion of the items eliminated in calculating Adjusted EBITDA provides useful measures for period-to-period comparisons of
Rockwell Medical's business.
Adjusted EBITDA should not be considered in isolation of, or as an
alternative to, measures prepared in accordance with GAAP. Other companies, including companies in the same industry, may calculate similarly
titled non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the
usefulness of Adjusted EBITDA as a tool for comparison. There are a number of limitations related to the use of these non-GAAP financial
measures rather than net loss, which is the most directly comparable financial measure calculated in accordance with GAAP. When evaluating
the Company's performance, you should consider Adjusted EBITDA alongside other financial performance measures, including net loss
and other GAAP results. Adjusted EBITDA is our best proxy for cash burn.
ABOUT ROCKWELL MEDICAL
Rockwell Medical, Inc.
(Nasdaq: RMTI) is a healthcare company that develops, manufactures, commercializes, and distributes a portfolio of hemodialysis products
for dialysis providers worldwide. Rockwell Medical's mission is to provide dialysis clinics and the patients they serve with the highest
quality products supported by the best customer service in the industry. Rockwell is focused on innovative, long-term growth strategies
that enhance its products, its processes, and its people, enabling the Company to deliver exceptional value to the healthcare system
and provide a positive impact on the lives of hemodialysis patients. Hemodialysis is the most common form of end-stage kidney
disease treatment and is usually performed at freestanding outpatient dialysis centers, at hospital-based outpatient centers, at skilled
nursing facilities, or in a patient's home. Rockwell Medical's products are vital to vulnerable
patients with end-stage kidney disease, and the Company is relentless in providing unmatched reliability and customer service. Rockwell
Medical is the largest supplier of liquid bicarbonate concentrates and the second largest supplier of acid and dry bicarbonate concentrates
for dialysis patients in the United States and has the vision of becoming the leading global supplier of all hemodialysis concentrates.
Certified as a Great Place to Work in 2023 and 2024, Rockwell Medical is
Driven to Deliver Life-Sustaining Dialysis SolutionsTM. For more information, visit www.RockwellMed.com.
FORWARD-LOOKING STATEMENTS
Certain statements in this press
release may constitute "forward-looking statements" within the meaning of the federal securities laws. Words such as, "may,"
"might," "will," "should," "believe," "expect," "anticipate," "estimate,"
"continue," "could," "can," "would," "develop," "plan," "potential,"
"predict," "forecast," "project," "intend," "look forward to," "remain confident,"
"guidance," or the negative of these terms, and similar expressions, or statements regarding intent, belief, or current expectations,
are forward looking statements. These statements include (without limitation) statements regarding: the impact of our strategy on our
top and bottom line: growth in the hemodialysis concentrates market; the growth of our business; guidance for net sales, gross profit,
gross margin and adjusted EBITDA. While Rockwell Medical believes these forward-looking statements are reasonable, undue reliance should
not be placed on any such forward-looking statements, which are based on information available to us on the date of this release. These
forward-looking statements are based upon current estimates and assumptions and are subject to various risks and uncertainties (including,
without limitation, those set forth in Rockwell Medical's SEC filings), many of which are beyond our control and subject to change. Actual
results could be materially different. Risks and uncertainties include but are not limited to those risks more fully discussed in the
"Risk Factors" section of our Annual Report on Form 10-K for the year ended December 31, 2023, as such description
may be amended or updated in any subsequent reports filed with the SEC. Rockwell Medical expressly disclaims any obligation to update
our forward-looking statements, except as may be required by law.
SVP, Chief Corporate Affairs Officer
Financial Tables Follow
| ROCKWELL MEDICAL, INC. AND SUBSIDIARIES | ||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| (Dollars In Thousands) | ||||||||
| December 31, | December 31, | |||||||
| 2023 | 2022 | |||||||
| Cash, Cash Equivalents & Investments available-for-sale | $ | 10,935 | $ | 21,492 | ||||
| Total Assets | $ | 52,173 | $ | 46,635 | ||||
| Total Liabilities | $ | 30,882 | $ | 32,529 | ||||
| Total Stockholders' Equity | $ | 21,291 | $ | 14,106 | ||||
| Common Stock Outstanding | 29,130,607 | 12,163,673 | ||||||
| Common stock and common stock equivalents* | 35,876,028 | 31,356,373 | ||||||
| *Common stock and common stock equivalents: | ||||||||
| Common stock | 29,130,607 | 12,163,673 | ||||||
| Common stock warrants (pre-funded) | - | 6,300,000 | ||||||
| Common stock and pre-funded stock warrants | 29,130,607 | 18,463,673 | ||||||
| Preferred stock converted | 1,363,636 | 1,363,636 | ||||||
| Options to purchase common stock | 1,328,621 | 1,206,905 | ||||||
| Restricted stock awards | 891 | 891 | ||||||
| Restricted stock units | 258,885 | 125,000 | ||||||
| Common stock warrants | 3,793,388 | 10,196,268 | ||||||
| Total common stock and common stock equivalents | 35,876,028 | 31,356,373 |
| ROCKWELL MEDICAL, INC. AND SUBSIDIARIES | |||||||||||||||
| UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS | |||||||||||||||
| (In Thousands, Except Shares and Per Share Amounts) | |||||||||||||||
| Three Months Ended December 31, 2023 | Three Months Ended December 31, 2022 | Twelve Months Ended December 31, 2023 | Twelve Months Ended December 31, 2022 | ||||||||||||
| Net Sales | $ | 22,093 | $ | 19,313 | $ | 83,612 | $ | 72,810 | |||||||
| Cost of Sales | 19,223 | 16,973 | 74,908 | 68,733 | |||||||||||
| Gross Profit (Loss) | 2,870 | 2,340 | 8,704 | 4,077 | |||||||||||
| Research and Product Development | 168 | 156 | 1,107 | 3,119 | |||||||||||
| Selling and Marketing | 541 | 352 | 2,125 | 2,094 | |||||||||||
| General and Administrative | 2,708 | 3,798 | 12,142 | 15,643 | |||||||||||
| Operating Loss | (547 | ) | (1,966 | ) | (6,670 | ) | (16,780 | ) | |||||||
| Other (Expense) Income | |||||||||||||||
| Realized Gain on Investments | 101 | - | 321 | 4 | |||||||||||
| Interest Expense | (1,108 | ) | (439 | ) | (2,301 | ) | (1,936 | ) | |||||||
| Interest Income | 42 | 45 | 211 | 35 | |||||||||||
| Total Other Expense | (965 | ) | (394 | ) | (1,769 | ) | (1,897 | ) | |||||||
| Net Loss | $ | (1,512 | ) | $ | (2,360 | ) | $ | (8,439 | ) | $ | (18,678 | ) | |||
| Basic and Diluted Net Loss per Share | $ | (0.05 | ) | $ | (0.13 | ) | $ | (0.36 | ) | $ | (1.31 | ) | |||
| Basic and Diluted Weighted Average Shares Outstanding | 28,652,164 | 18,463,673 | 23,322,915 | 14,304,512 |
| Reconciliation to GAAP Financial Measures | ||||||||||||||||||||
| (In Thousands, Except Shares and Per Share Amounts) | ||||||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||
| December 31 | December 31 | |||||||||||||||||||
| (in thousands) | 2023 | 2022 | 2023 | 2022 | 2021 | |||||||||||||||
| Net Loss | $ | (1,512 | ) | $ | (2,360 | ) | $ | (8,439 | ) | $ | (18,678 | ) | $ | (32,674 | ) | |||||
| Income taxes | - | - | - | - | - | |||||||||||||||
| Interest expense | 1,108 | 439 | 2,301 | 1,936 | 2,360 | |||||||||||||||
| Depreciation and amortization | 554 | 152 | 1,445 | 572 | 664 | |||||||||||||||
| EBITDA | 150 | (1,769 | ) | (4,692 | ) | (16,170 | ) | (29,650 | ) | |||||||||||
| Severance costs | 165 | 968 | 942 | 2,040 | 331 | |||||||||||||||
| Stock-based compensation | 215 | 221 | 933 | 314 | 938 | |||||||||||||||
| Wanbang deferred revenue | - | - | (2,197 | ) | - | |||||||||||||||
| Wanbang inventory reserve | - | - | 1,098 | - | ||||||||||||||||
| Adjusted EBITDA | $ | 531 | $ | (580 | ) | $ | (3,917 | ) | $ | (13,816 | ) | $ | (28,381 | ) | ||||||
| Adjusted EPS | $ | 0.02 | $ | (0.03 | ) | $ | (0.17 | ) | $ | (0.97 | ) | $ | (3.33 | ) | ||||||
| Basic and Diluted Weighted Average Shares Outstanding | 28,652,164 | 18,463,673 | 23,322,915 | 14,304,512 | 8,526,186 |