Full Press Release Details
Rockwell Medical Announces Fourth Quarter and
Financial and Operational Results
Michigan, March 20, 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 and twelve months ended December 31, 2024.
2024, we were successful in accomplishing our objectives to achieve profitability for the full-year on an adjusted EBITDA basis, generate
over $100 million in net sales, and increase our gross margin," said Mark
Strobeck, Ph.D., Rockwell Medical's President and CEO. "While we expect 2025 to be a year of transition as we navigate
changes within our customer base, we remain focused on sustained profitability for the full-year 2025 on an adjusted EBITDA basis. We
plan to continue to identify additional business development opportunities to support our strategic objectives, diversify our product
portfolio, and further optimize our business through manufacturing improvements."
FOURTH QUARTER AND FULL-YEAR 2024 FINANCIAL HIGHLIGHTS
Cash and Cash Equivalents
| Three Months Ended December 31, | ||||||||
| (In Millions, Except Per Share Amounts) | 2024 | 2023 | ||||||
| Net Sales | $ | 24.7 | $ | 22.1 | ||||
| Gross Profit | 3.6 | 2.9 | ||||||
| Net Loss | (0.8 | ) | (1.5 | ) | ||||
| Adjusted EBITDA* | 1.4 | 0.5 | ||||||
| Basic and Diluted Net Loss per Share ** | $ | (0.02 | ) | $ | (0.05 | ) | ||
| Adjusted EPS * | $ | 0.04 | $ | 0.02 |
| (In Millions, Except Per Share Amounts) | 2024 | 2023 | 2022 | |||||||||
| Net Sales | $ | 101.5 | $ | 83.6 | $ | 72.8 | ||||||
| Gross Profit | 17.5 | 8.7 | 4.1 | |||||||||
| Net Income (Loss) | (0.5 | ) | (8.4 | ) | (18.7 | ) | ||||||
| Adjusted EBITDA* | 5.2 | (3.9 | ) | (13.8 | ) | |||||||
| Basic and Diluted Net Loss per Share ** | $ | (0.03 | ) | $ | (0.37 | ) | $ | (1.31 | ) | |||
| Adjusted EPS * | $ | 0.17 | $ | (0.17 | ) | $ | (0.97 | ) |
* See reconciliation to GAAP financial measures in the
See Note 3 for more details related to Basic and Diluted Weighted Average Shares Outstanding in our 2024 Form 10-K.
FOURTH QUARTER AND FULL-YEAR 2024 OPERATING HIGHLIGHTS
Throughout 2024, Rockwell Medical continued to upgrade its manufacturing
equipment to streamline production and improve margins, renegotiated contracts with key suppliers, and negotiated new contracts with new
Growing Base Business
Bicarbonate Cartridge
Largest Customer Update
Rockwell projects its 2025 annual guidance as follows:
| 2025 Annual Guidance | |
| Net Sales | $65.0 million to $70.0 million |
| Gross Margin | 16% to 18% |
| Adjusted EBITDA | ($0.5) million to $0.5 million |
CONFERENCE CALL AND WEBCAST
Number: (888) 660-6347 // (International) 1 (929) 201-6594
and Replay: www.RockwellMed.com/Results
| Mark Strobeck, Ph.D. - President and Chief Executive Officer; and | ||
| Jesse Neri - SVP, Chief Financial Officer | ||
| Tim Chole - SVP, Chief Commercial Officer |
of fourth quarter and full-year 2024 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 Medical is focused on innovative, long-term growth
strategies that enhance its products, processes, and 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 at freestanding outpatient dialysis centers, hospital-based outpatient centers, 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. 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
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," "goal" 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: Rockwell Medical targeting an additional estimated 14.5 million gallons of potential available business within the Company's
distribution footprint; Rockwell Medical's products, distribution capabilities, and customer service remaining key differentiators
for customers chosing Rockwell Medical as its primary hemodialysis concentrates supplier; Rockwell Medical achieving profitability on
an adjusted EBITDA basis for the full-year 2025; Rockwell Medical continuing to identify additional business development opportunities
to further support our strategic objectives and diversify our customer base; Rockwell Medical continuing the optimization of our business
through manufacturing improvements; expected net sales from certain customer contracts; estimated market opportunity size; and 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,
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)
| December 31, | December 31, | |||||||
| 2024 | 2023 | |||||||
| Cash, Cash Equivalents & Investments available-for-sale | $ | 21,602 | $ | 10,935 | ||||
| Total Assets | $ | 59,208 | $ | 52,173 | ||||
| Total Liabilities | $ | 26,622 | $ | 30,882 | ||||
| Total Stockholders' Equity | $ | 32,586 | $ | 21,291 | ||||
| Common Stock Outstanding | 34,056,920 | 29,130,607 | ||||||
| Common stock and common stock equivalents* | 41,903,896 | 35,876,028 | ||||||
| Common stock | 34,056,920 | 29,130,607 | ||||||
| Preferred stock converted | 1,391,045 | 1,363,636 | ||||||
| Options to purchase common stock | 1,886,247 | 1,328,621 | ||||||
| Restricted stock awards | 891 | 891 | ||||||
| Restricted stock units | 584,309 | 258,885 | ||||||
| Common stock warrants | 3,984,484 | 3,793,388 | ||||||
| Total common stock and common stock equivalents | 41,903,896 | 35,876,028 |
ROCKWELL MEDICAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
(In Thousands, Except Shares and Per Share Amounts)
| Three Months Ended December 31, 2024 | Three Months Ended December 31, 2023 | Twelve Months Ended December 31, 2024 | Twelve Months Ended December 31, 2023 | |||||||||||||
| Net Sales | $ | 24,665 | $ | 22,093 | $ | 101,489 | $ | 83,612 | ||||||||
| Cost of Sales | 21,034 | 19,223 | 84,005 | 74,908 | ||||||||||||
| Gross Profit | 3,631 | 2,870 | 17,484 | 8,704 | ||||||||||||
| Research and Product Development | 1 | 168 | 19 | 1,107 | ||||||||||||
| Selling and Marketing | 843 | 541 | 2,749 | 2,125 | ||||||||||||
| General and Administrative | 3,305 | 2,708 | 14,108 | 12,142 | ||||||||||||
| Operating Income (Loss) | (518 | ) | (547 | ) | 608 | (6,670 | ) | |||||||||
| Other (Expense) Income | ||||||||||||||||
| Realized Gain on Investments | 23 | 101 | 74 | 321 | ||||||||||||
| Interest Expense | (289 | ) | (1,108 | ) | (1,254 | ) | (2,301 | ) | ||||||||
| Interest Income | 29 | 42 | 92 | 211 | ||||||||||||
| Total Other Expense | (237 | ) | (965 | ) | (1,088 | ) | (1,769 | ) | ||||||||
| Net Income (Loss) | $ | (755 | ) | $ | (1,512 | ) | $ | (480 | ) | $ | (8,439 | ) | ||||
| Basic Net Income (Loss) per Share | $ | (0.02 | ) | $ | (0.05 | ) | $ | (0.03 | ) | $ | (0.37 | ) | ||||
| Basic Weighted Average Shares Outstanding | 32,878,110 | 28,652,164 | 31,058,539 | 23,322,915 |
Reconciliation to GAAP Financial Measures
(In Thousands, Except Shares and Per Share Amounts)
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| December 31 | December 31 | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Net Income (Loss) | $ | (755 | ) | $ | (1,512 | ) | $ | (480 | ) | $ | (8,439 | ) | ||||
| Income taxes | - | - | - | - | ||||||||||||
| Interest expense | 289 | 1,108 | 1,254 | 2,301 | ||||||||||||
| Depreciation and amortization | 541 | 554 | 2,174 | 1,445 | ||||||||||||
| EBITDA | 75 | 150 | 2,948 | (4,693 | ) | |||||||||||
| Severance costs | 15 | 165 | 24 | 942 | ||||||||||||
| Stock-based compensation | 383 | 215 | 1,292 | 933 | ||||||||||||
| Minnesota transition costs | 886 | - | 886 | - | ||||||||||||
| Wanbang deferred revenue | - | - | - | (2,197 | ) | |||||||||||
| Wanbang inventory reserve | - | - | - | 1,098 | ||||||||||||
| Adjusted EBITDA | $ | 1,358 | $ | 530 | $ | 5,150 | $ | (3,917 | ) | |||||||
| Adjusted EPS | $ | 0.04 | $ | 0.02 | $ | 0.17 | $ | (0.17 | ) | |||||||
| Basic Weighted Average Shares Outstanding | 32,878,110 | 28,652,164 | 31,058,539 | 23,322,915 |