WINTER SPRINGS, Fla., Oct. 30, 2020 (GLOBE NEWSWIRE) -- iRadimed Corporation) (NASDAQ: IRMD), a leader in the development of innovative magnetic resonance imaging medical devices and the only known provider of a non-magnetic intravenous infusion pump system and non-magnetic patient vital signs monitoring system that are designed for use during MRI procedures, today announced financial results for the three and nine months ended September 30, 2020.
“I am very happy with these results, especially considering the continued challenging environment resulting from the pandemic. Our teams continue finding ways to engage our customers and present the benefits our products offer. Recent customer order trends are positive, and while the pandemic continues to set the pace of business, we believe these positive trends will continue,” said Roger Susi, President and Chief Executive Officer of the Company.
Three Months Ended September 30, 2020
For the third quarter ended September 30, 2020, the Company reported revenue of $7.7 million compared to $10.0 million for the third quarter 2019. Net income was $1.1 million, or $0.09 per diluted share, compared to $2.5 million, or $0.20 per diluted share for the third quarter 2019.
Non-GAAP net income was $1.4 million for the quarter ended September 30, 2020, which excludes $0.3 million of stock compensation expense, net of tax expense. Non-GAAP net income for the quarter ended September 30, 2019 was $2.8 million, which excludes $0.3 million of stock compensation expense, net of tax expense. Non-GAAP earnings per diluted share was $0.11 for the third quarter 2020, compared to $0.23 for the third quarter 2019.
Nine Months Ended September 30, 2020
For the nine months ended September 30, 2020, the Company reported revenue of $23.2 million compared to $27.6 million for the same period in 2019. Net income was $0.7 million, or $0.06 per diluted share, compared to net income of $6.4 million, or $0.52 per diluted share for the same period in 2019.
During the nine months ended September 30, 2020, the Company recognized total general and administrative expense of $3.2 million related to our former CEO, of which $2.7 million relates to the separation.
Non-GAAP net income was $4.2 million for the nine months ended September 30, 2020, which excludes $1.1 million of on-going stock compensation expense, net of tax expense, and $2.4 million of expenses, net of tax, related to the separation of our former CEO. Non-GAAP net income for the nine months ended September 30, 2019 was $6.8 million, which excludes $1.0 million of stock compensation expense, net of tax expense and a $0.6 million reduction to non-GAAP net income resulting from an infrequent tax item related to excess tax benefits recognized in the provision for income taxes for the exercise and sale of certain incentive stock options. Non-GAAP earnings per diluted share was $0.33 for the nine months ended September 30, 2020, compared to $0.56 for the same period in 2019.
Cash Flow and Balance Sheet:
For the nine months ended September 30, 2020, cash from operations was $3.3 million, compared to $6.3 million for the same period in 2019.
For the third quarter ended September 30, 2020, free cash flow was $1.3 million, compared to $3.1 million for the third quarter 2019. For the nine months ended September 30, 2020, free cash flow was $3.0 million, compared to $6.1 million for the same period in 2019.
As of September 30, 2020, the Company had combined cash and investments of $49.9 million.
Financial Guidance
The Company announced its full-year 2020 financial guidance on February 6, 2020. Due to the high degree of uncertainty created by the global impact of COVID-19, the Company withdrew its previous guidance on April 7, 2020 and is not providing any additional financial guidance at this time.
Use of non-GAAP Financial Measures
The Company believes the use of non-GAAP net income, free cash flow and infrequent income tax items are helpful to our investors. These measures, which we refer to as our non-GAAP financial measures, are not prepared in accordance with U.S. GAAP.
We calculate non-GAAP net income as net income excluding (1) stock-based compensation expense, net of tax. Because of varying available valuation methodologies, subjective assumptions and the variety of equity instruments that can impact a company’s non-cash expenses, we believe that providing non-GAAP financial measures that exclude stock-based compensation expense allows for meaningful comparisons between our operating results from period to period; (2) operating expenses, net of tax, that we believe are not indicative of the Company’s on-going core operating performance, and; (3) infrequent tax items are considered based on their nature and are excluded from the provision for income taxes as these costs or benefits are not indicative of our normal or future provision for income taxes. We calculate free cash flow as net cash provided by operating activities, less net cash used in investing activities for purchases of property and equipment.
We consider free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by our business that can be used for strategic opportunities, including investing in our business, making strategic acquisitions, strengthening our balance sheet and returning cash to our shareholders via share repurchases.
All of our non-GAAP financial measures are important tools for financial and operational decision making and for evaluating our on-going core operating results.
A reconciliation of the non-GAAP financial measures used in this release to the most comparable U.S. GAAP measures for the respective periods can be found in the table later in this release immediately following the condensed statements of cash flows. These non-GAAP financial measures should not be considered in isolation or as a substitute for a measure of the Company’s operating performance or liquidity prepared in accordance with U.S. GAAP and are not indicative of net income or cash provided by operating activities.
About iRadimed Corporation
iRadimed Corporation is a leader in the development of innovative magnetic resonance imaging (“MRI”) compatible medical devices. We are the only known provider of a non-magnetic intravenous (“IV”) infusion pump system that is specifically designed to be safe for use during MRI procedures. We were the first to develop an infusion delivery system that largely eliminates many of the dangers and problems present during MRI procedures. Standard infusion pumps contain magnetic and electronic components which can create radio frequency interference and are dangerous to operate in the presence of the powerful magnet that drives an MRI system. Our patented MRidium® MRI compatible IV infusion pump system has been designed with a non-magnetic ultrasonic motor, uniquely designed non-ferrous parts and other special features to safely and predictably deliver anesthesia and other IV fluids during various MRI procedures. Our pump solution provides a seamless approach that enables accurate, safe and dependable fluid delivery before, during and after an MRI scan, which is important to critically-ill patients who cannot be removed from their vital medications, and children and infants who must generally be sedated to remain immobile during an MRI scan.
Our 3880 MRI compatible patient vital signs monitoring system has been designed with non-magnetic components and other special features to safely and accurately monitor a patient’s vital signs during various MRI procedures. The IRADIMED 3880 system operates dependably in magnetic fields up to 30,000 gauss, which means it can operate virtually anywhere in the MRI scanner room. The IRADIMED 3880 has a compact, lightweight design allowing it to travel with the patient from their critical care unit, to the MRI and back, resulting in increased patient safety through uninterrupted vital signs monitoring and decreasing the amount of time critically ill patients are away from critical care units. The features of the IRADIMED 3880 include: wireless ECG with dynamic gradient filtering; wireless SpO2 using Masimo® algorithms; non-magnetic respiratory CO2; invasive and non-invasive blood pressure; patient temperature, and; optional advanced multi-gas anesthetic agent unit featuring continuous Minimum Alveolar Concentration measurements. The IRADIMED 3880 MRI compatible patient vital signs monitoring system has an easy-to-use design and allows for the effective communication of patient vital signs information to clinicians.
For more information please visit www.iradimed.com.
