IRADIMED CORPORATION Announces Third Quarter of 2024 Financial Results and the Declaration of its Regular Quarterly Cash Dividend of $0.15 Per Share
Reports record revenue of $18.3 million for the third quarter of 2024, an increase of $1.8 million or 11% over the comparable period 2023.
Reports GAAP diluted EPS of $0.40 and Non-GAAP diluted EPS of $0.43 for the third quarter of 2024.
Raising year end guidance on GAAP diluted earnings per share to $1.49 to $1.52 from $1.37 to $1.47, and Non-GAAP diluted earnings per share to $1.64 to $1.67 from $1.52 to $1.62.
Declares a regular quarterly cash dividend of $0.15 per common share for the fourth quarter of 2024, payable on November 25, 2024.
WINTER SPRINGS, Fla., Oct. 31, 2024 (GLOBE NEWSWIRE) -- IRADIMED CORPORATION (the "Company") (NASDAQ:IRMD) announced today its financial results for the three and nine months ended September 30, 2024. The Company is a leader in the development of innovative magnetic resonance imaging ("MRI") medical devices and the only known provider of a non-magnetic intravenous ("IV") infusion pump system, and a non-magnetic patient vital signs monitoring systems that are designed for use during MRI procedures.
"I am pleased to announce another record-breaking quarter, marking our thirteenth consecutive quarter of record revenue. Our domestic IV infusion pump revenue remained exceptionally strong, driving our quarter's performance as we exceeded our guidance on both revenue and EPS, supported by continued strength in our gross margins. We remain confident that the momentum in our bookings will carry into the fourth quarter, positioning us for continued success as we close out the year," said Roger Susi, President and Chief Executive Officer of the Company.
"For the fourth quarter of 2024, we anticipate revenue of $18.8 million to $19.2 million, GAAP diluted earnings per share of $0.39 to $0.42, and Non-GAAP diluted earnings per share of $0.42 to $0.45. For the year, we expect to report revenue of $72.7 million to $73.1 million. We are raising our guidance on GAAP diluted earnings per share to $1.49 to $1.52 from $1.37 to $1.47, and Non-GAAP diluted earnings per share to $1.64 to $1.67 from $1.52 to $1.62," added Mr. Susi.
The Company's Board of Directors declared a regular quarterly cash dividend of $0.15 per share of our outstanding common stock, payable on November 25, 2024, to stockholders of record as of the close of business on November 15, 2024. We expect to continue a regular quarterly cash dividend subject to business conditions and approval by our Board of Directors in its sole discretion.
Three Months Ended September 30, 2024
For the three months ended September 30, 2024, the Company reported revenue of $18.3 million, an increase of $1.8 million, or 11%, compared to $16.5 million for the comparable period of 2023. Net income remained consistent at $5.0 million, or $0.40 per diluted share for the three months ended September 30, 2024, compared to the same period of 2023.
Non-GAAP net income increased $0.1 million, or 1% to $5.5 million, or $0.43 per diluted share, for the three months ended September 30, 2024, and excludes $0.5 million of stock compensation expense, net of tax benefit. Non-GAAP net income for the comparable period of 2023, was $5.5 million, or $0.43 per diluted share, and excludes $0.4 million of stock compensation expense, net of tax benefit.
Nine Months Ended September 30, 2024
For the nine months ended September 30, 2024, the Company reported revenue of $53.9 million compared to $48.1 million for the comparable period of 2023, an increase of 12%. Net income was $14.1 million, or $1.10 per diluted share, compared to $12.7 million, or $0.99 per diluted share for the comparable period of 2023, an increase of 11%.
Non-GAAP net income was $15.6 million, or $1.22 per diluted share, for the nine months ended September 30, 2024, and excludes $1.5 million of stock compensation expense, net of tax benefit. Non-GAAP net income was $13.9 million, or $1.10 per diluted share, for the comparable period of 2023, and excludes $1.3 million of stock compensation expense, net of tax benefit.
Revenue Information:
Three Months Ended
Nine Months Ended
September 30,
September 30,
2024
2023
2024
2023
(unaudited)
(unaudited)
Devices:
MRI Compatible IV Infusion Pump Systems
$
6,952,142
$
3,905,520
$
19,026,021
$
13,966,905
MRI Compatible Patient Vital Signs Monitoring Systems
5,926,028
7,738,549
17,837,910
18,564,085
Ferro Magnetic Detection Systems
128,505
138,760
744,607
619,539
Total Devices revenue
13,006,675
11,782,829
37,608,538
33,150,529
Disposables, services and other
4,735,066
4,213,666
14,604,879
13,464,278
Amortization of extended warranty agreements
584,218
508,145
1,639,537
1,495,313
Total revenue
$
18,325,959
$
16,504,640
$
53,852,954
$
48,110,120
For the three months ended September 30, 2024, domestic sales were 83% of total revenue, compared to 84% for the comparable period of 2023. The gross profit margin was 77.4% for the three months ended September 30, 2024, compared to 77.8% for the comparable period of 2023.
For the nine months ended September 30, 2024, domestic sales were 82% of total revenue, compared to 81% for the nine months ended September 30, 2023. The gross profit margin was 77.2% for the nine months ended September 30, 2024, compared to 76.4% for the same period in 2023.
Cash Flow from Operations
For the three months ended September 30, 2024, cash flow from operations was $9.1 million, compared to $1.4 million for the comparable period of 2023. See the compilation of Non-GAAP free cash flow in the table below.
As construction continues on the Company's new facility in Orlando, Florida, the Company anticipates spending approximately $9 million in cash, as of September 30, 2024, to complete it.
Financial Guidance
For the fourth quarter of 2024, the Company expects to report revenue of $18.8 million to $19.2 million, GAAP diluted earnings per share of $0.39 to $0.42, and Non-GAAP diluted earnings per share of $0.42 to $0.45. For the full year of 2024, the Company expects to report revenue of $72.7 million to $73.1 million, GAAP diluted earnings per share of $1.49 to $1.52, and Non-GAAP diluted earnings per share of $1.64 to $1.67.
The Company's Non-GAAP diluted earnings per share guidance excludes stock-based compensation expense, net of tax expense. The Company expects stock-based compensation expense, net of tax, to be approximately $1.9 million and $0.5 million for the full year and fourth quarter 2024, respectively.
Use of Non-GAAP Financial Measures
The Company believes using Non-GAAP net income, earnings per share, and free cash flow is helpful to our investors. These measures, which we refer to as our Non-GAAP financial measures, are not prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). These Non-GAAP measures are intended to provide the reader with additional supplemental perspectives on operating results, performance trends, and financial condition. Non-GAAP financial measures are not a substitute for GAAP measures; they should be read and used in conjunction with the Company's GAAP financial information. Because Non-GAAP financial measures presented in this release are not measurements determined in accordance with GAAP and are susceptible to varying calculations, these Non-GAAP financial measures, as presented, may not be comparable to other similarly titled measures presented by other companies.
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 ongoing core operating performance and;
(3) Infrequent income 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 the development of internal software and 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 stockholders through various means.
Our Non-GAAP financial measures are important tools for financial and operational decision-making and for evaluating our ongoing core operating results.
A reconciliation of the Non-GAAP financial measures used in this release to the most comparable GAAP measures for the respective periods can be found in the table later in this release immediately following the condensed statements of operations. 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 GAAP and are not indicative of net income or cash provided by operating activities.
Conference Call
The Company has scheduled a conference call to discuss this release beginning at 11:00 a.m. Eastern Time today, October 31, 2024. Individuals interested in listening to the conference call may do so by registering here, https://register.vevent.com/register/BIb21de778973841f8add41c2c49939c39. Once registered a dial-in number, a unique PIN, and instructions will be provided to participants.
The conference call will also be available in real-time via the Internet at http://www.iradimed.com/en-us/investors/events/. A recording of the call will be available on the Company's website following the call's completion.
About IRADIMED CORPORATION
IRADIMED CORPORATION is a leader in developing innovative Magnetic Resonance Imaging ("MRI") compatible medical devices. We design, manufacture, market, and distribute MRI-compatible medical devices and accessories, disposables, and related services.
We are the only known provider of a non-magnetic intravenous ("IV") infusion pump system 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 that 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 ...
