Rockwell Medical(US:RMTI)2024-11-12 12:10Financial Performance - Net sales for the three months ended September 30, 2024, were $28,316 thousand, a 19.4% increase compared to $23,771 thousand for the same period in 2023[11] - Gross profit for the three months ended September 30, 2024, was $6,239 thousand, significantly up from $2,202 thousand in the same period last year, marking an increase of 183.4%[11] - Operating income for the three months ended September 30, 2024, was $1,936 thousand, compared to an operating loss of $1,737 thousand in the same period of 2023[11] - Net income for the three months ended September 30, 2024, was $1,664 thousand, a turnaround from a net loss of $1,872 thousand in the same period last year[12] - Basic net income per share for the three months ended September 30, 2024, was $0.05, compared to a loss of $0.07 per share in the same period of 2023[12] - The company reported a comprehensive income of $1,677 thousand for the three months ended September 30, 2024, compared to a comprehensive loss of $1,941 thousand in the same period of 2023[14] - For the nine months ended September 30, 2024, Rockwell Medical reported a net income of $276,000, a significant improvement compared to a net loss of $6,927,000 for the same period in 2023[20] - Operating activities generated net cash of $3,337,000 for the nine months ended September 30, 2024, compared to a net cash used of $9,369,000 in the prior year[20] - Net sales for the nine months ended September 30, 2024, were $76.8 million, a 25% increase from $61.5 million in the same period of 2023[133] - Gross profit for the nine months ended September 30, 2024, was $13.9 million, compared to $5.8 million for the same period in 2023, reflecting an increase of $8.0 million[135] Assets and Liabilities - Total assets increased to $57,084 thousand as of September 30, 2024, up from $52,173 thousand at December 31, 2023, representing a growth of approximately 9.5%[7] - Total current liabilities decreased to $14,178 thousand as of September 30, 2024, down from $16,637 thousand at December 31, 2023, reflecting a reduction of approximately 14.8%[7] - Stockholders' equity increased to $29,135 thousand as of September 30, 2024, compared to $21,291 thousand at December 31, 2023, indicating a growth of approximately 37.0%[9] - The accumulated deficit increased to $(396,922,000) as of September 30, 2024, reflecting ongoing financial challenges[17] - As of September 30, 2024, the company had approximately $18.3 million in cash and cash equivalents, with working capital of $20.0 million[140] Expenses - Research and product development expenses were $0 for the three months ended September 30, 2024, compared to $494 thousand in the same period last year[11] - Stock-based compensation expenses totaled $321,000 for the quarter ending September 30, 2024[17] - General and administrative expenses rose to $10.8 million for the nine months ended September 30, 2024, compared to $9.4 million in 2023, an increase of $1.4 million driven by bonuses and additional costs[138] - Selling and marketing expenses increased to $1.9 million for the nine months ended September 30, 2024, up from $1.6 million in 2023, primarily due to higher employee compensation[137] - Depreciation and amortization expense for the nine months ended September 30, 2024, was $1.2 million, compared to $0.8 million for the same period in 2023[67] Debt and Financing - The Company entered into a Loan and Security Agreement with Innovatus for term loans up to $35.0 million, with net drawdown proceeds of $21.2 million[103] - As of September 30, 2024, the outstanding balance of the Term Loan was $8.4 million, net of unamortized issuance costs and discount of $0.6 million[109] - The effective interest rate on the Term Loans was 11.5% as of September 30, 2024[109] - The Company is required to maintain minimum liquidity of no less than $5.0 million if the aggregate principal amount of Term Loans exceeds $15 million[106] Market and Sales - Rockwell's customer DaVita accounted for approximately 52% of total net product sales for the three months ended September 30, 2024[49] - The Company expects net sales to DaVita in 2025 to decline between approximately $31 million and $37 million due to anticipated volume reductions[123] - Product sales for concentrate products in the three months ended September 30, 2024, were $28.305 million, up from $21.574 million in the same period in 2023, indicating a 31.2% growth[55] Acquisitions and Investments - The total consideration for the Evoqua acquisition was $17.4 million, including a cash payment of $12.4 million and two deferred payments of $2.5 million each[42] - The fair value of the customer relationships intangible asset acquired from Evoqua was determined to be $11.035 million, amortized over 20 years[43] - The company recorded amortization of its customer relationship intangible asset of $0.1 million for the three months ended September 30, 2024, resulting in a net intangible asset of $10.3 million[44] Future Outlook and Risks - The company continues to face uncertainties in the global macroeconomic environment, which may impact future operations[28] - The company is subject to various risks, including macroeconomic uncertainties that could adversely affect liquidity and capital resources in the future[148]