Q3 2022 IRadimed Corp Earnings Call
The conference will begin shortly to raise your hand during Q&A you can dial star one one.
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The conference will begin shortly to raise your hand during Q&A you can dial star one one.
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The conference will begin shortly to raise your hand during Q&A you can dial star one one.
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The contract.
Welcome to the Radnet Corporation third quarter, 2022 financial results conference call.
Currently all participants are in a listen only mode and at the end of the call. We will conduct a question and answer session.
As a reminder, this call is being courted today November three 2022 and contain sensitive information that is accurate only today.
Earlier <unk> released its financial results for the third quarter of 2022.
A copy of this press release.
Please announcing the company's earnings is available under the heading news on their website at <unk> Dot com.
Our press release coffee was also furnished to the Securities and Exchange Commission on form 8-K, and can be found at <unk> Dot Gov.
This call is being broadcast live over the Internet on the company's website at <unk> Dot com and a replay of the call will be available on the website for the next 90 days.
Some of the information in today's session will constitute forward looking statements within the meaning of the private Securities Litigation Reform Act of 1995.
Forward looking statements focused on future performance results plans and events and May include the company's.
<unk> future results.
A random it reminds you that future results may differ materially from the forward looking statements due to several risk factors for a description of the relevant risks and uncertainties that may affect the company's business. Please see the risk factors section of the company's most recent reports filed with the security.
And exchange Commission, which may be obtained free from the SEC's website at SEC Gov.
I would like to turn the call over to Roger Susi, President and Chief Executive <unk> Executive Officer of <unk> Corporation. Mr. Susi. Please go ahead.
Thank you operator.
Good morning, and thank you for joining us on the call everyone.
Today, I am again, having the pleasant task of reporting that <unk> has had yet another excellent quarter of revenue and earnings growth as we have reported in this morning's release Q.
Q3, 2022 has been our top revenue quarter ever and the third in a string of our strongest growth quarters.
Further I'll interject here that the strong growing demand for our products remains intact, which gives us confidence in the coming quarters that we will also.
It gives them a much more to be proud of there in the future.
As reported in this morning's release third quarter revenue was $13 4 million or 23% increase over the third quarter last year GAAP diluted earnings per share with 27 or 35% above the third quarter 2021.
I'm very pleased with these results and the hard efforts of our team.
With three quarters behind us and growing at record levels, we look forward to achieving our guidance for the year.
Those supply risks are still very much of a concern.
<unk> has succeeded in finding ways to prevail and we feel that measures put into place. These past several months, we will continue to help mitigate supply risk.
Our sales team continues to perform exceptionally well increasing driving.
Increasingly driving customer demand for our products. The total Q3 bookings reached record levels again coming in higher than shipments for the quarter, thus boosting backlog, yet again to an even more comfortable level.
Additionally, strong backlog provides excellent visibility and it allows us to maneuver and reallocate resources as supply issues may arise.
Sales growth was well balanced strong for both the pump and the monitor product lines with an increasingly.
Creasing number of the new SMB products shipping as well this quarter.
As discussed last quarter, we did file a very large written response to the FDA covering nearly 250 information questions related to the 500 10-K process of the new 3800, 70 IV pump.
So the FDA did engage to clear these questions. We had several E mail follow up questions as well.
As the remaining time on Fda's 90 day total working time clock approached.
Last four days.
We received a call, indicating that they would not likely finish.
This left us with little choice, but to withdraw voluntarily and start a new application process.
The FDA did indicate that should we voluntarily withdraw they would engage with much greater numbers of direct dialogue calls as we prepared for resubmission.
They indicated they too desire getting this five 10-K cleared with greater speed through better understanding and minimal confusion, which are direct dialogue should facilitate.
They also committed to providing a more explanation of the issues, which had been remaining along with any new questions. In writing. So that these can be addressed as well before a resubmission.
The first such meeting was held last week and we are encouraged that these calls will indeed lead to a clear and complete 500 10-K for Resubmission and ultimately a clear 38, 70, IV pump without repeat of <unk>.
Lapse of time.
Now regarding our financial guidance for the fourth quarter of 2020 to our prior revenue guidance remains unchanged.
We expect to report revenue of $14, one to $14 $8 million and our full year revenue of $52 5 million to $53 2 million.
We are also increasing our earnings guidance as we expect to report for the fourth quarter GAAP diluted earnings per share of 23 to 28.
And non-GAAP diluted earnings per share of <unk> 25 to 30.
These amounts would result in full year GAAP diluted earnings per share of 95 cents to a dollar and non-GAAP diluted earnings per share of $1 three to $1 eight now.
Now I'd like to turn the call over to our new CFO , Jack Glenn to review the financial results for the quarter.
Thank you Roger and good morning, everyone.
As in the past our results are reported on a GAAP basis, and a non-GAAP basis.
You can find a description of our non-GAAP operating measures in this morning's earnings release and a reconciliation of these non-GAAP measures to the GAAP measure on the last page of today's release.
As we reported earlier this morning revenue in the third quarter of 2022 with $13 4 million, an increase of 23% compared to third quarter of 2021.
Domestic sales increased 24, 6% to $10 8 million and international sales increased 16, 4% to $2 6 million.
Overall domestic revenue accounted for 86% of total revenue for Q3 2022 compared to 79, 6% for Q3 2021.
Device revenue increased 32, 2% to $9 4 million.
This was driven by a 46% increase in monitor revenue as our sales team continued to execute and gain market share in the monitoring business.
The average selling price of our MRI compatible IV infusion pump system during the third quarter of 2022 with approximately $30000 compared to approximately $33000 for the third quarter of 2021.
This decrease relates to higher international unit sales and an unfavorable product sales mix compared to the same period in 2021.
The average selling price of our MRI compatible patient vital signs monitoring system during the third quarter of 2022 with approximately $46000 compared to approximately $41.
For the same period in 2021.
This increase relates to higher domestic unit sales and price increases that we began implementing during the second half of 2021.
Revenue from disposables and services increased five 3% to $3 4 million for the third quarter of 2022.
While our maintenance contracts were consistent at a $5 million for both periods.
The gross margin was 78, 6% for the 2022 quarter compared to 77, 1% for the 2021 quarter.
The increase in gross margin percent is primarily due to maintain a price increase implemented during the second half of 2021.
Along with our ability to offset any higher input costs through higher unit production levels spread over our fixed overhead costs.
Operating expenses were $6 4 million or <unk> 47, 8% of revenue compared to $5 3 million or 48, 6% of revenue for the third quarter of 2021.
On a dollar basis. This increase is primarily due to higher sales commissions and sales activities higher general and administrative expenses for additional head count and higher legal and professional expenses.
As a result income from operations grew 32% to $4 1 million for the 2022 quarter.
We recognized the tax expense during the third quarter of 2022 of approximately 810000, resulting in an effective tax rate of 19, 1% compared to a tax expense of approximately 518000 into 2021 quarter.
This increase is due to hires.
Taxable income, partially offset by benefits associated with foreign derived intangible income and research and development credits.
On a GAAP basis net income was 27 cents per diluted share compared to <unk> 21 for the 2021 quarter.
On a non-GAAP basis adjusted income was 29 per diluted share for the 2022 quarter compared to 23 for the second quarter of 2021.
Cash from operations was $3 9 million for the three months ended September 32022 up from $3 4 million for the same period in 2021.
For the three months ended September 32022, and 2021, our free cash flow a non-GAAP measure was $3 4 million and $3 2 million respectively.
And with that I will now turn the call over for questions operator.
Okay.
Alright.
Well with that I'd like to make.
One last point regarding our expansion plans.
Along with growth comes a need for increased physical operations and we have very recently placed a large parcel under contract where we will build what will be the first phase.
The new facility.
Target move in time is expected to be sometime in late 2024, and we plan. This.
This first phase to be almost three times, our current size, which by that time will be greatly needed Ssi revenue continued strong growth.
Finally, I'll iterate, our great pleasure reporting record growth, especially in light of today's economic tribulations that world over with that I would look forward to reporting our future success as 2022 and on into 2023. Thank you all.
Yeah.
Hmm.
Okay.
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