Full Press Release Details
Rockwell Medical Announces First Quarter 2025
Michigan, May 12, 2025 - 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 ended March 31, 2025.
the first quarter, we continued to diversify our customer base with some of the leading regional, national and global hemodialysis providers
and health systems. We remain a preferred provider as a result of our continued reliability, high-quality products, and customer-centric
approach," said Mark Strobeck,
Ph.D., Rockwell Medical's President and CEO. "Additionally, we continued to consolidate and
further automate our manufacturing operations to reduce expenses and sustain our gross margin despite our largest customer moving away
from Rockwell Medical. We look forward to sharing more updates in the months ahead."
FIRST QUARTER 2025 FINANCIAL HIGHLIGHTS
| Three Months Ended March 31, | ||||||||
| (In Thousands, Except Per Share Amounts) | 2025 (a) | 2024 | ||||||
| Net Sales | $ | 18,914 | $ | 22,676 | ||||
| Gross Profit | 3,042 | 3,064 | ||||||
| Operating Loss | (1,360 | ) | (1,324 | ) | ||||
| Net Loss | (1,515 | ) | (1,731 | ) | ||||
| Adjusted EBITDA (a) | (439 | ) | (529 | ) | ||||
| Basic and Diluted Net Loss per Share (b) | $ | (0.04 | ) | $ | (0.06 | ) | ||
| Adjusted EPS (c) | $ | (0.01 | ) | $ | (0.02 | ) |
| (a) | Includes $0.3 million of deferred revenue related to the distribution and license agreements with Sun Pharmaceuticals Industries Ltd., Jeil Pharmaceutical Co., Ltd. and Drogsan Pharmaceuticals. | |
| (b) | See Note 3 for more details related to Basic and Diluted Weighted Average Shares Outstanding on Form 10-Q filed May 12, 2025. | |
| (c) | See reconciliation to GAAP financial measures in the tables below. |
FIRST QUARTER 2025 OPERATING HIGHLIGHTS
Rockwell confirms its 2025 annual guidance as follows:
| 2025 Annual Guidance | |
| Net Sales | $65.0M to $70.0M |
| Gross Margin | 16% to 18% |
| Adjusted EBITDA | ($0.5)M to $0.5M |
CONFERENCE CALL AND WEBCAST DETAILS
Number: (888) 660-6347 // (International) 1 (929) 201-6594
and Replay: www.RockwellMed.com/Results
of first quarter 2025 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. In addition, this press release includes a reference
to adjusted EPS, a non-GAAP financial measure that is defined as adjusted EBITDA divided by the weighted average number of shares outstanding.
The Company has also provided a reconciliation to EPS, or net income divided by the weighted average number of shares outstanding, which
is the most directly comparable GAAP financial measure. Each of these adjusted measures is a non-GAAP financial measure. The Company has
provided reconciliations to the GAAP measures at the end of this press release.
Adjusted EBITDA and adjusted EPS are key measures 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 provide useful measures for period-to-period
comparisons of Rockwell Medical's business. This is also true for adjusted EPS, which is derived from adjusted EBITDA.
Adjusted EBITDA and adjusted EPS 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 and adjusted EPS as tools for comparison. There are a number of limitations related to
the use of these non-GAAP financial measures rather than the most directly comparable financial measures calculated in accordance with
GAAP. When evaluating the Company's performance, you should consider adjusted EBITDA and adjusted EPS alongside other financial
performance measures, including net loss, EPS and other GAAP results.
ABOUT ROCKWELL MEDICAL
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 typically performed in freestanding outpatient dialysis centers, hospital-based outpatient centers, skilled nursing
facilities, or 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. Certified as a Great
Place to Work in 2023, 2024 and 2025, and named Fortune Best Workplaces in Manufacturing & ProductionTM
in 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,"
"feel 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:
expectations related to expenses for 2025 and annual guidance on net sales, 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, 2024, 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)
| March 31, | March 31, | |||||||
| 2025 | 2024 | |||||||
| Cash, Cash Equivalents & Investments available-for-sale | $ | 17,331 | $ | 8,619 | ||||
| Total Assets | $ | 53,961 | $ | 50,723 | ||||
| Total Liabilities | $ | 22,437 | $ | 30,080 | ||||
| Total Stockholders' Equity | $ | 31,524 | $ | 20,643 | ||||
| Common Stock Outstanding | 34,257,903 | 29,556,474 | ||||||
| Common stock and common stock equivalents* | 41,902,125 | 37,222,734 | ||||||
| *Common stock and common stock equivalents: | ||||||||
| Common stock | 34,257,903 | 29,556,474 | ||||||
| Preferred stock converted | 1,391,045 | 1,363,636 | ||||||
| Options to purchase common stock | 1,884,476 | 1,876,031 | ||||||
| Restricted stock awards | 891 | 891 | ||||||
| Restricted stock units | 383,326 | 441,218 | ||||||
| Common stock warrants | 3,984,484 | 3,984,484 | ||||||
| Total common stock and common stock equivalents | 41,902,125 | 37,222,734 |
ROCKWELL MEDICAL, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(In Thousands, Except Shares and Per Share Amounts)
| Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | |||||||
| Net Sales | $ | 18,914 | $ | 22,676 | ||||
| Cost of Sales | 15,872 | 19,612 | ||||||
| Gross Profit | 3,042 | 3,064 | ||||||
| Research and Product Development | - | 18 | ||||||
| Selling and Marketing | 711 | 594 | ||||||
| General and Administrative | 3,691 | 3,776 | ||||||
| Operating Income (Loss) | (1,360 | ) | (1,324 | ) | ||||
| Other (Expense) Income | ||||||||
| Realized Gain on Investments | 56 | - | ||||||
| Interest Expense | (277 | ) | (431 | ) | ||||
| Interest Income | 66 | 24 | ||||||
| Total Other Expense | (155 | ) | (407 | ) | ||||
| Net Income (Loss) | $ | (1,515 | ) | $ | (1,731 | ) | ||
| Basic Net Income (Loss) per Share | $ | (0.04 | ) | $ | (0.06 | ) | ||
| Basic Weighted Average Shares Outstanding | 34,107,640 | 29,327,204 |
Reconciliation to GAAP Financial Measures
(In Thousands, Except Shares and Per Share Amounts)
| Three Months Ended March 31 | ||||||||
| 2025 | 2024 | |||||||
| Net Income (Loss) | $ | (1,515 | ) | $ | (1,731 | ) | ||
| Income taxes | - | - | ||||||
| Other Expense, net | 155 | 407 | ||||||
| Depreciation and amortization | 537 | 544 | ||||||
| EBITDA | (823 | ) | (780 | ) | ||||
| Severance costs | 48 | - | ||||||
| Stock-based compensation | 445 | 251 | ||||||
| Minnesota transition costs | 39 | - | ||||||
| Deferred license revenue | (325 | ) | - | |||||
| Triferic inventory write-off | 178 | - | ||||||
| Adjusted EBITDA | $ | (439 | ) | $ | (529 | ) | ||
| Adjusted EPS | $ | (0.01 | ) | $ | (0.02 | ) | ||
| Basic Weighted Average Shares Outstanding | 34,107,640 | 29,327,204 |