iRadimed(IRMD) - 2022 Q1 - Quarterly Report

Part I Condensed Financial Statements This section presents the unaudited condensed financial statements for IRADIMED CORPORATION as of March 31, 2022, and for the three-month period then ended, compared with prior periods, including Balance Sheets, Statements of Operations, Comprehensive Income, Stockholders' Equity, and Cash Flows, along with accompanying notes Condensed Balance Sheets The condensed balance sheet shows total assets decreased from $82.9 million at year-end 2021 to $72.4 million as of March 31, 2022, primarily due to reduced cash and cash equivalents, while stockholders' equity declined from $72.2 million to $62.5 million largely due to dividend payments Condensed Balance Sheets (in thousands) | | March 31, 2022 (unaudited) | December 31, 2021 | | :--- | :--- | :--- | | Total current assets | $65,514 | $76,245 | | Total assets | $72,393 | $82,881 | | Total current liabilities | $6,249 | $6,823 | | Total liabilities | $9,845 | $10,708 | | Total stockholders' equity | $62,548 | $72,174 | | Total liabilities and stockholders' equity | $72,393 | $82,881 | Condensed Statements of Operations For the three months ended March 31, 2022, revenue increased 33.5% to $12.3 million, and net income grew 79.3% to $2.5 million, with diluted net income per share rising to $0.20 from $0.11 year-over-year Condensed Statements of Operations Highlights (in thousands, except per share data) | | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :--- | :--- | :--- | | Revenue | $12,311 | $9,224 | | Gross Profit | $9,380 | $7,062 | | Income from Operations | $3,075 | $1,777 | | Net Income | $2,487 | $1,387 | | Diluted EPS | $0.20 | $0.11 | Condensed Statements of Stockholders' Equity Stockholders' equity decreased from $72.2 million at year-end 2021 to $62.5 million as of March 31, 2022, primarily due to a $12.6 million special dividend payment partially offset by $2.5 million in net income - A special dividend of $1.00 per share, totaling $12.6 million, was paid during the first quarter of 2022[22] - Net income of $2.5 million partially offset the decrease in retained earnings from the dividend payment[22] Condensed Statements of Cash Flows For Q1 2022, net cash provided by operating activities was $1.4 million, while investing activities used $0.4 million and financing activities used $12.6 million, resulting in a net decrease in cash and cash equivalents of $11.6 million Cash Flow Summary (in thousands) | | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :--- | :--- | :--- | | Net cash provided by operating activities | $1,426 | $943 | | Net cash used in investing activities | $(425) | $(174) | | Net cash used in financing activities | $(12,555) | $(36) | | Net (decrease) increase in cash | $(11,553) | $733 | - The significant cash outflow in financing activities was due to a $12.6 million dividend payment in Q1 2022[25][99] Notes to Unaudited Condensed Financial Statements The notes detail accounting policies and financial results, including revenue disaggregation by geography and product type, EPS calculations, inventory, stock-based compensation, income taxes, and lease obligations, confirming the company operates in a single segment of MRI compatible medical devices - The company operates in one reportable segment: the development, manufacture, and sale of MRI compatible medical devices and related accessories[29] Revenue by Geographic Region (in dollars) | Region | Q1 2022 Revenue | Q1 2021 Revenue | | :--- | :--- | :--- | | United States | $9,979,340 | $7,272,830 | | International | $2,331,370 | $1,951,166 | | Total | $12,310,710 | $9,223,996 | Revenue by Type (in dollars) | Type | Q1 2022 Revenue | Q1 2021 Revenue | | :--- | :--- | :--- | | MRI compatible IV infusion pump system | $3,281,939 | $3,503,347 | | MRI compatible patient vital signs monitoring systems | $5,194,751 | $2,603,830 | | Disposables, services and other | $3,318,902 | $2,635,466 | | Amortization of extended warranty agreements | $515,118 | $481,353 | | Total | $12,310,710 | $9,223,996 | - The effective tax rate for Q1 2022 was 18.7%, compared to 21.7% for Q1 2021, with a full-year 2022 expectation of approximately 23%[54][55][92] Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses Q1 2022 financial results, highlighting a 33.5% revenue increase to $12.3 million driven by a 99.5% surge in MRI compatible patient vital signs monitoring systems sales, a slight gross profit margin decrease to 76.2%, increased operating expenses, and a strong liquidity position with $50.4 million in cash and investments despite a $12.6 million special dividend - The company is the only known provider of a non-magnetic intravenous (IV) infusion pump system specifically designed for safe use during MRI procedures[66] Q1 2022 Financial Highlights vs. Q1 2021 (in millions, except per share data) | Metric | Q1 2022 | Q1 2021 | Change | | :--- | :--- | :--- | :--- | | Revenue | $12.3 | $9.2 | +33.5% | | Net Income | $2.5 | $1.4 | +79.3% | | Diluted EPS | $0.20 | $0.11 | +81.8% | - Revenue from MRI compatible patient vital signs monitoring systems nearly doubled, increasing 99.5% to $5.2 million in Q1 2022 from $2.6 million in Q1 2021[79] - The average selling price (ASP) of the patient vital signs monitoring system increased to approximately $46,800 in Q1 2022 from $38,300 in Q1 2021, driven by higher domestic sales and price increases[84] - Gross profit margin slightly decreased to 76.2% in Q1 2022 from 76.6% in Q1 2021, primarily due to unfavorable labor and overhead expenses[86] - The company paid a special dividend of $12.6 million to shareholders during the quarter ended March 31, 2022[95] Quantitative and Qualitative Disclosures About Market Risk The company identifies foreign currency exchange risk, primarily from Japanese Yen costs, and interest rate risk from corporate bonds, with a 10% Yen change or 100 basis point interest rate change deemed immaterial to net income or fair value, respectively - The company faces foreign currency risk from Japanese Yen-denominated costs, with a hypothetical 10% change in the Yen exchange rate having an immaterial impact on net income[106] - Interest rate risk is associated with $0.5 million in corporate bonds, where a 100 basis point change in interest rates is expected to have an immaterial effect on their fair value[108] Controls and Procedures Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of March 31, 2022, with no material changes to internal control over financial reporting during the quarter - The Chief Executive Officer and Controller and Interim Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of March 31, 2022[110] - No material changes to the company's internal control over financial reporting occurred during the first quarter of 2022[111] Part II Legal Proceedings The company anticipates potential legal proceedings in the ordinary course of business but believes the resolution of any known matters will not materially affect its financial results or position - Management believes that the resolution of any currently known legal matters will not have a material effect on the company's results of operations or financial position[114] Risk Factors No material changes have occurred to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the fiscal year ended December 31, 2021 - No material changes to the risk factors disclosed in the Annual Report on Form 10-K for the fiscal year ended December 31, 2021, have occurred[115] Unregistered Sale of Equity Securities and Use of Proceeds The company reported no unregistered sales of equity securities during the period - None[116] Exhibits This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications and XBRL interactive data files - Exhibits filed include CEO and CFO certifications (31.1, 31.2, 32.1) and XBRL data files (101 series)[121]