Rockwell Medical (RMTI) Q1 2025 Earnings Call May 12, 2025 08:00 AM ET Speaker0 Good morning, and welcome to Rockwell Medical's First Quarter twenty twenty five Results Conference Call and Webcast. Please note that this event is being recorded. At this time, I would like to turn the conference call over to Heather Hunter, Senior Vice President, Chief Corporate Affairs Officer at Rockwell Medical. Heather, please go ahead. Speaker1 Good morning, and thank you for joining us for this update on Rockwell Medica ...

Financial Performance - Net sales for the three months ended March 31, 2025, were $18.914 million, a decrease of 16.5% compared to $22.676 million for the same period in 2024[14]. - Gross profit for Q1 2025 was $3.042 million, slightly down from $3.064 million in Q1 2024, resulting in a gross margin of 16.1%[14]. - The net loss for the three months ended March 31, 2025, was $1.515 million, compared to a net loss of $1.731 million for the same period in 2024, reflecting a 12.5% improvement[14]. - Basic and diluted net loss per share improved to $0.04 in Q1 2025 from $0.06 in Q1 2024[14]. - Comprehensive loss for Q1 2025 was $1,509 million, slightly improved from $1,706 million in Q1 2024, showing a reduction of approximately 11.5%[16]. - For the three months ended March 31, 2025, Rockwell Medical reported a net loss of $1.515 million, an improvement from a net loss of $1.731 million in the same period of 2024, representing a decrease of approximately 12.5%[23]. Assets and Liabilities - Total assets decreased to $53.961 million as of March 31, 2025, down from $59.208 million as of December 31, 2024[10]. - Total liabilities decreased to $22.439 million as of March 31, 2025, compared to $26.622 million as of December 31, 2024, indicating a reduction of 15.8%[10]. - Stockholders' equity decreased to $31.522 million as of March 31, 2025, from $32.586 million as of December 31, 2024[11]. - Total current liabilities decreased from $14,091 million as of December 31, 2024, to $11,205 million as of March 31, 2025, a reduction of approximately 20.5%[10]. - Total accrued liabilities decreased to $4.6 million as of March 31, 2025, from $6.3 million as of December 31, 2024, representing a reduction of approximately 26.9%[80]. Cash Flow and Liquidity - Cash and cash equivalents were $11.391 million as of March 31, 2025, down from $15.662 million as of December 31, 2024[10]. - Net cash used in operating activities for the three months ended March 31, 2025 was approximately $3.487 million, an increase of 46.5% compared to $2.380 million for the same period in 2024[23]. - Rockwell's net decrease in cash and cash equivalents for the three months ended March 31, 2025 was $4.271 million, compared to a decrease of $2.341 million for the same period in 2024[23]. - As of March 31, 2025, Rockwell had approximately $17.3 million in cash, cash equivalents, and investments available-for-sale, with working capital of $21.8 million[30]. - The company continues to explore capital-raising options, with $21.1 million available under its at-the-market facility[31]. Revenue Sources - Revenue from DaVita accounted for approximately 27% of total revenues for the three months ended March 31, 2025, down from 44% in the same period of 2024[49]. - Revenue from drug products was $0.325 million, while concentrate product sales were $18.589 million, with U.S. sales accounting for $16.436 million and international sales $2.153 million[57]. - The company recognized $0.3 million of revenue from deferred license agreements during the three months ended March 31, 2025, as all remaining deferred revenue related to these agreements was recognized[54]. - A one-time, non-refundable payment of $0.9 million from DaVita was recorded as revenue during the three months ended March 31, 2025, to ensure supply continuity[55]. Expenses - The company incurred $711,000 in selling and marketing expenses for Q1 2025, up from $594,000 in Q1 2024, reflecting a 19.7% increase[14]. - Research and product development expenses were $0 for Q1 2025, down from $18 million in Q1 2024, indicating a strategic shift in R&D spending[14]. - Stock-based compensation expense for the three months ended March 31, 2025, was $0.445 million, compared to $0.251 million for the same period in 2024, reflecting an increase of 77%[92]. Stock and Equity - The weighted average number of shares of common stock outstanding increased to 34,107,640 for the three months ended March 31, 2025, compared to 29,327,204 for the same period in 2024, reflecting a 16.5% increase[40]. - The number of common stock equivalents increased to 41,902,125 as of March 31, 2025, compared to 37,222 in 2024[86]. - The Series X Preferred Stock accreted a total of $0.3 million as of March 31, 2025, reflecting ongoing financial obligations related to this equity[82]. - The company issued a warrant to purchase 191,096 shares of common stock at an exercise price of $1.83 per share, with a fair value of approximately $0.2 million at issuance[90]. Compliance and Agreements - The company is currently in compliance with all covenants under its Loan Agreement with Innovatus, which includes an interest-only payment period for 36 months[32]. - The Company is required to maintain consolidated revenue from hemodialysis products at not less than 85.0% of projections for the trailing six-month period[112]. - The company has a Technology License Agreement with Charak for TPN products, which continues until at least February 1, 2034, with royalties based on net sales[103]. Market and Operations - Rockwell Medical operates in the hemodialysis market, manufacturing and distributing a range of hemodialysis products[48]. - The company operates in a single segment focused on the hemodialysis market, providing a range of products for dialysis providers worldwide[25].

Financial Performance - Rockwell Medical reported net sales of $18.9 million for Q1 2025, a 17% decrease from $22.7 million in Q1 2024[5] - Gross profit for Q1 2025 was $3.0 million, consistent with the same period in 2024, resulting in a gross margin of 16%, up from 14% in Q1 2024[6] - The net loss for Q1 2025 was $1.5 million, representing a 12% improvement over the net loss of $1.7 million in Q1 2024[6] - Adjusted EBITDA for Q1 2025 was ($0.4) million, slightly negative due to seasonal payroll tax and public company expenses[6] - Cash and cash equivalents decreased to $17.3 million as of March 31, 2025, down from $21.6 million at the end of 2024[6] - Total stockholders' equity increased to $31.5 million as of March 31, 2025, compared to $20.6 million in the same period in 2024[22] Future Guidance - Rockwell Medical confirmed its 2025 annual guidance, projecting net sales between $65.0 million and $70.0 million, with a gross margin of 16% to 18%[11] Product Development - The company added a single-use bicarbonate cartridge to its product portfolio through a distribution agreement with a leading medical equipment manufacturer[12] Company Recognition - Rockwell Medical was recognized as a Great Place to Work for the third consecutive year, highlighting its commitment to fostering a supportive workplace[12] Customer Impact - The largest customer transition to another supplier contributed to the decrease in net sales, although a one-time payment of $0.9 million was received to ensure product supply continuity[6]

Rockwell Medical, Inc. (NASDAQ:RMTI) Q4 2024 Earnings Conference Call March 20, 2025 8:00 AM ET Company Participants Heather Hunter - Senior Vice President, Chief Corporate Affairs Officer Mark Strobeck - President & Chief Executive Officer Tim Chole - Chief Commercial Officer Jesse Neri - Chief Financial Officer Conference Call Participants Brandon Folkes - Rodman & Renshaw Ram Selvaraju - H.C. Wainwright Anthony Vendetti - Maxim Group Operator Good morning, and welcome to Rockwell Medical's Fourth Quarter ...

Rockwell Medical (RMTI) came out with a quarterly loss of $0.02 per share versus the Zacks Consensus Estimate of $0.02. This compares to earnings of $0.02 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -200%. A quarter ago, it was expected that this maker of products used in the treatment of kidney disease and anemia would post earnings of $0.01 per share when it actually produced earnings of $0.05, delivering a surprise of 4 ...

Rockwell Medical (RMTI) Q4 2024 Earnings Call March 20, 2025 08:00 AM ET Company Participants Heather Hunter - Senior VP & Chief Corporate Affairs OfficerMark Strobeck - President & CEOTim Chole - Senior VP & Chief Commercial OfficerJesse Neri - SVP & CFOBrandon Folkes - Managing Director - Equity ResearchRaghuram Selvaraju - Managing Director, Healthcare Equity ResearchAnthony Vendetti - Executive Managing Director Operator Good morning, and welcome to Rockwell Medical's Fourth Quarter and Full Year twenty ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 000-23661 ROCKWELL MEDICAL, INC. (Exact name of registrant as specified in its charter) (248) 960‑9009 (Registrant's te ...

Financial Performance - Rockwell Medical achieved profitability on an adjusted EBITDA basis for the full-year 2024, marking the first time in the company's history[5]. - The company reported record net sales of $101.5 million for 2024, a 21% increase from $83.6 million in 2023, with fourth-quarter net sales of $24.7 million, a 12% increase year-over-year[5][6]. - Gross profit for 2024 was $17.5 million, representing a 101% increase over $8.7 million in 2023, with a gross margin improvement to 17% from 10%[9][10]. - Adjusted EBITDA for 2024 was $5.2 million, a 232% improvement from a loss of $3.9 million in 2023[9][10]. - Rockwell Medical reported net sales of $24.665 million for Q4 2024, a 12% increase from $22.093 million in Q4 2023[29]. - Rockwell Medical achieved an adjusted EBITDA of $1.358 million for Q4 2024, compared to $530,000 in Q4 2023, marking a significant increase[31]. - The gross profit for the twelve months ended December 31, 2024, was $17.484 million, up from $8.704 million in 2023, representing a year-over-year growth of 100%[29]. - The net loss for the twelve months ended December 31, 2024, was $480,000, a significant improvement from a net loss of $8.439 million in 2023[29]. Customer and Market Developments - The largest customer is transitioning away from Rockwell Medical, which is expected to result in a revenue loss of approximately $34 million compared to 2024[16]. - Rockwell Medical plans to target additional customers representing an estimated 14.5 million gallons of potential business within its distribution footprint[13]. - The company continues to identify additional business development opportunities to diversify its customer base and support strategic objectives[24]. - A new single-use bicarbonate cartridge was added to the product portfolio, representing a market opportunity of approximately $100 million[14]. Future Projections - Rockwell Medical projects 2025 net sales guidance of $65.0 million to $70.0 million, with a gross margin of 16% to 18%[17]. - The company aims to achieve profitability on an adjusted EBITDA basis for the full year 2025[24]. Financial Position - Cash and cash equivalents increased to $21.6 million as of December 31, 2024, compared to $18.3 million at the end of Q3 2024[7]. - The company's total assets increased to $59.208 million in 2024, up from $52.173 million in 2023, reflecting a growth of approximately 13%[27]. - Rockwell Medical's total stockholders' equity rose to $32.586 million in 2024, a 53% increase from $21.291 million in 2023[27]. - Rockwell Medical's common stock outstanding increased to 34,056,920 shares in 2024, up from 29,130,607 shares in 2023[27]. Agreements and Contracts - The company entered into a product purchase agreement expected to generate upwards of $10 million in net sales in the first year[12].

Now you can get access to the latest and highest-quality analysis of recent Wall Street buying and selling ideas with just one subscription to Beyond the Wall Investing ! There is a free trial and a special discount of 10% for you. Join us today!Before you dive into my today's article on Rockwell Medical, Inc. (NASDAQ: RMTI ), I want to say right off the bat that my previous "Buy" rating on RMTI wasDaniel Sereda is chief investment analyst at a family office whose investments span continents and diverse ass ...

Financial Data and Key Metrics Changes - For Q3 2024, the company achieved net sales of $28.3 million, a 19% increase from $23.8 million in Q3 2023, and a 31% increase when excluding deferred revenue [20] - Gross profit for Q3 2024 was $6.2 million, representing a 183% increase from $2.2 million in Q3 2023, and a 464% increase when excluding deferred revenue [21] - The gross margin for Q3 2024 improved to 22%, up from 9% in Q3 2023, and 5% when excluding deferred revenue [22] - Net income for Q3 2024 was $1.7 million, compared to a net loss of $1.9 million in Q3 2023, marking a $4.6 million improvement [22] - Adjusted EBITDA for Q3 2024 was positive at $2.8 million, compared to a negative $1.2 million in Q3 2023 [23] Business Line Data and Key Metrics Changes - The company reported the highest quarterly concentrate product sales and gross profit in its history during Q3 2024, driven by consistent sales and a large order from its largest customer [7][8] - A multimillion-dollar distribution agreement was signed with Nipro Medical Corporation to supply hemodialysis concentrates outside the U.S. [9] - The company expanded its concentrates product portfolio to include a convenience pack aimed at the at-home dialysis market [10] Market Data and Key Metrics Changes - The company anticipates revenue for Q4 2024 to be between $23 million and $25 million, with gross margin in line with previous quarters [12] - The 2024 guidance for net sales has been increased to between $98 million and $101 million, with gross profit projected between $15 million and $17 million [12] Company Strategy and Development Direction - The company plans to shift its customer makeup towards more profitable growth opportunities, moving away from less profitable business [14] - The largest customer has confirmed an extension of their product purchase agreement through the end of 2025, with an expected decline in volumes as they diversify their supplier base [14][15] - The company is negotiating a large multiyear supply agreement with a leading provider of dialysis products and services [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth of the at-home dialysis market and the potential for increased orders in this segment [27] - The company is focused on optimizing operations and streamlining processes to drive sustainable profitability and shareholder value [38] - Despite anticipated revenue declines from the largest customer, management believes the business will remain profitable on an adjusted EBITDA basis [31] Other Important Information - The cash position more than doubled from the end of Q1 2024, reaching $18.3 million by September 30, 2024 [24] - The company was named a Fortune Best Workplace in manufacturing and production in 2024, highlighting its commitment to quality and customer service [37] Q&A Session Summary Question: Impact of customer order decrease for 2025 and opportunities in at-home dialysis - Management acknowledged the potential for growth in the at-home dialysis market and emphasized ongoing efforts to expand relationships with providers [27][28] Question: EBITDA impact and cost management strategies - Management indicated that gross margin percentages are expected to improve, and they are assessing the impact on EBITDA for 2025 [31] Question: Western expansion progress and international opportunities - Management confirmed ongoing efforts to increase customer presence in the West and highlighted opportunities for international market expansion through agreements with Nipro Medical [34][35]