Full Press Release Details
Announces Third Quarter 2023 Results
Michigan, November 14, 2023 - 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 September 30, 2023.
we started implementing our new focused business strategy a little over a year ago, we have successfully completed two acquisitions,
aligned our cost structure, and are on track to meet our revenue and profitability expectations for this year," said
Mark Strobeck, Ph.D.,
Rockwell Medical's President and CEO. "During the third quarter of 2023, Rockwell Medical became the leading supplier of liquid
bicarbonate hemodialysis concentrates in the United States and now services approximately one-third of all purchasing facilities, including
outpatient dialysis clinics and hospitals. Additionally, Rockwell Medical continues to evaluate potential business development opportunities
that could continue to strengthen our existing hemodialysis concentrates business and potentially enable Rockwell Medical to expand into
new product categories and markets."
Third Quarter 2023 Operating Highlights
Third Quarter 2023 Financial Highlights
Financial Highlights
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| (In Thousands, Except Per Share Amounts) | 2023 | 2022 | 2023 | 2022 | ||||||||||||
| Net Sales | $ | 23,771 | $ | 18,691 | $ | 61,519 | $ | 53,497 | ||||||||
| Gross Profit | 2,202 | 777 | 5,834 | 1,737 | ||||||||||||
| Net Loss | (1,872 | ) | (4,189 | ) | (6,927 | ) | (16,318 | ) | ||||||||
| Adjusted EBITDA* | (1,347 | ) | (3,208 | ) | (4,581 | ) | (13,237 | ) | ||||||||
| Basic and Diluted Net Loss per Share ** | $ | (0.07 | ) | $ | (0.23 | ) | $ | (0.32 | ) | $ | (1.26 | ) |
* See reconciliation to GAAP financial measures in the tables below.
See Note 3 for more details related to Basic and Diluted Weighted Average Shares Outstanding
on Form 10-Q filed November 14, 2023.
Company expects net sales for 2023 to be between $82.0 million and $86.0 million, which represents an increase of 17% to 18% year-over-year.
The Company expects gross profit for 2023 to be between $8.0 million and $10.0 million, which represents an increase of 95% to 144% year-over-year.
Since Rockwell Medical announced its updated business strategy in November 2022, the Company provided
guidance that it expected to achieve profitability in 2024. Rockwell Medical now expects to be profitable on an adjusted EBITDA basis
in the fourth quarter of 2023.
CONFERENCE CALL AND WEBCAST DETAILS
Number: (888) 660-6347 // (International) 1 (929) 201-6594
and Replay: www.RockwellMed.com/Results
Discussion of third quarter 2023 operational and financial 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
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 second largest supplier of acid and bicarbonate concentrates for dialysis patients in the
United States and has the vision of becoming the leading global supplier of hemodialysis concentrates. Certified as a Great Place to
Work in 2023, 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," or the negative of these terms, and similar expressions, or statements regarding
intent, belief, or current expectations, are forward looking statements. There can be no assurance that Rockwell Medical will be profitable
in the fourth quarter of 2023, will achieve its expected net sales or gross profit for the full year 2023, or that the hemodialysis
concentrates market will continue to grow and that Rockwell Medical will grow its market share.
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, 2022, 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
SVP, Chief Corporate Affairs Officer
ROCKWELL MEDICAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars In Thousands)
| September 30, | December 31, | |||||||
| 2023 | 2022 | |||||||
| (Unaudited) | ||||||||
| Cash, Cash Equivalents & Investments available-for-sale | $ | 11,730 | $ | 21,492 | ||||
| Total Assets | $ | 52,607 | $ | 46,635 | ||||
| Total Liabilities | $ | 31,088 | $ | 32,529 | ||||
| Total Stockholders' Equity | $ | 21,519 | $ | 14,106 | ||||
| Common Stock Outstanding | 28,489,663 | 12,163,673 | ||||||
| Common stock and common stock equivalents* | 35,554,361 | 31,356,373 | ||||||
| *Common stock and common stock equivalents: | ||||||||
| Common stock | 28,489,663 | 12,163,673 | ||||||
| Common stock warrants (pre-funded) | - | 6,300,000 | ||||||
| Common stock and pre-funded stock warrants | 28,489,663 | 18,463,673 | ||||||
| Preferred stock converted | 1,363,636 | 1,363,636 | ||||||
| Options to purchase common stock | 1,367,493 | 1,206,905 | ||||||
| Restricted stock awards | 891 | 891 | ||||||
| Restricted stock units | 287,400 | 125,000 | ||||||
| Common stock warrants | 4,045,278 | 10,196,268 | ||||||
| Total common stock and common stock equivalents | 35,554,361 | 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 September 30, 2023 | Three Months Ended September 30, 2022 | Nine Months Ended September 30, 2023 | Nine Months Ended September 30, 2022 | |||||||||||||
| Net Sales | $ | 23,771 | $ | 18,691 | $ | 61,519 | $ | 53,497 | ||||||||
| Cost of Sales | 21,569 | 17,914 | 55,685 | 51,760 | ||||||||||||
| Gross Profit (Loss) | 2,202 | 777 | 5,834 | 1,737 | ||||||||||||
| Research and Product Development | 495 | 469 | 939 | 2,963 | ||||||||||||
| Selling and Marketing | 556 | 762 | 1,584 | 1,743 | ||||||||||||
| General and Administrative | 2,889 | 3,253 | 9,434 | 11,845 | ||||||||||||
| Operating Loss | (1,737 | ) | (3,707 | ) | (6,123 | ) | (14,814 | ) | ||||||||
| Other (Expense) Income | ||||||||||||||||
| Realized Gain on Investments | 220 | - | 220 | 4 | ||||||||||||
| Interest Expense | (410 | ) | (476 | ) | (1,193 | ) | (1,497 | ) | ||||||||
| Interest Income | 56 | (6 | ) | 169 | (10 | ) | ||||||||||
| Total Other Expense | (134 | ) | (482 | ) | (804 | ) | (1,503 | ) | ||||||||
| Net Loss | $ | (1,872 | ) | $ | (4,189 | ) | $ | (6,927 | ) | $ | (16,318 | ) | ||||
| Basic and Diluted Net Loss per Share | $ | (0.07 | ) | $ | (0.23 | ) | $ | (0.32 | ) | $ | (1.26 | ) | ||||
| Basic and Diluted Weighted Average Shares Outstanding | 27,521,088 | 18,463,673 | 21,526,978 | 12,902,890 |
Reconciliation to GAAP Financial Measures
| Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||||||
| (in thousands) | 2023 | 2022 | 2023 | 2022 | ||||||||||||
| Net Loss | $ | (1,872 | ) | $ | (4,189 | ) | $ | (6,927 | ) | $ | (16,318 | ) | ||||
| Income taxes | - | - | - | - | ||||||||||||
| Interest expense, net | 318 | 382 | 921 | 1,219 | ||||||||||||
| Depreciation and amortization | 518 | 234 | 1,030 | 696 | ||||||||||||
| EBITDA | (1,036 | ) | (3,573 | ) | (4,976 | ) | (14,403 | ) | ||||||||
| One time severance costs | 576 | 188 | 777 | 1,072 | ||||||||||||
| Stock-based compensation | 212 | 177 | 717 | 94 | ||||||||||||
| Wanbang deferred revenue | (2,197 | ) | - | (2,197 | ) | - | ||||||||||
| Wanbang inventory reserve | 1,098 | - | 1,098 | - | ||||||||||||
| Adjusted EBITDA | $ | (1,347 | ) | $ | (3,208 | ) | $ | (4,581 | ) | $ | (13,237 | ) |