NASDAQ$RMTI

Rockwell Medical Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Reported profitability on a cash flow and Adjusted EBITDA basis for the second consecutive quarter.

Rockwell Medical reported a strong third quarter in 2024, marked by increased net product sales, significant growth in gross profit, and a return to profitability. The company's net sales reached $28.3 million, driven by a large order of premium-priced products, and it generated $4.3 million in cash flow from operations.

  • Net product sales increased by 31% compared to the same period in 2023, reaching $28.3 million.
  • Gross profit increased by 183% compared to the same period in 2023, totaling $6.2 million.
  • Gross margin improved to 22% compared to 9% in the same period in 2023.
  • Generated $4.3 million in cash flow from operations.

Headline financials

Total Revenue

$28.3M

Previous: $23.8M+19.1%
EPS (adj)

$0.09

Previous: -$0.07+228.6%
Capital Expenditures

-$191K

Previous: -$12.4M+98.5%
Free Cash Flow

$1.66M

Previous: -$1.87M+188.9%
Net Income

$1.66M

Previous: -$1.87M+188.9%
Operating Income

$1.94M

Previous: -$1.74M+211.5%
Gross Profit

$6.24M

Previous: $2.2M+183.3%
Cash & Equivalents

$12.3M

Previous: $7.76M+59.0%
Total Assets

$57.1M

Previous: $52.6M+8.5%
R&D Expense

$0.00

Previous: $494K-100.0%
Stock-Based Comp

$321K

Previous: $212K+51.4%

Revenue & EPS history

Rockwell Medical · Revenue · Quarterly

$28.3M

Q3 2024+19.1%vs Q3 2023
Beat estimate in 8 of 13 quarters(62%)
ActualEstimate

Forward guidance

Rockwell Medical is increasing its 2024 guidance projections.

Tailwinds

  • Net (Product) Sales: $98.0M to $101.0M
  • Gross Profit: $15.0M to $17.0M
  • Gross Margin: 16% to 18%
  • Adjusted EBITDA: $4.0M to $5.0M
  • Multi-million dollar distribution agreement with Nipro Medical Corporation

Headwinds

  • Customer volumes expected to decline during the Extension Term.
  • Customer's net sales in 2025 will decline between approximately $31 million and $38 million.
  • Profit margin associated with the Customer's product purchases has historically ranged between a gross loss to a single-digit gross margin, excluding the special large order of premium-priced products purchased by the Customer.
  • The Company is working to make up this projected revenue gap with new, higher margin customer contracts, product purchase agreements, distribution agreements, standard price increases, and hemodialysis product opportunities that would diversify the Company's portfolio of offerings — several of which are already in late-stage contract negotiations.
  • Despite the expected year-over-year decline in revenue from the Customer, Rockwell Medical believes that the Company will be profitable in 2025 on an Adjusted EBITDA basis.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q3 2024

Historical avgQ3 2024

-3.1%

Avg return

Earnings day

-3.3%

Avg return

5 days after

-3.0%

Avg return

30 days after

38%

24 / 63 earnings

Positive

+28.2%

Q3 2022

Best reaction

-43.4%

Q3 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025-13.0%-11.3%
Q1 2026-3.6%+2.8%-18.2%
Q3 2025-9.2%-17.1%-12.4%
Q1 2025-6.4%-9.8%-11.6%
Q4 2024-20.5%-31.8%-41.5%
Q3 2024-43.4%-49.2%-55.5%
Q2 2024+22.6%+35.6%+68.4%
Q1 2024+0.6%+4.1%+8.2%
Q4 2023+3.6%+0.0%-12.1%
Q3 2023+12.2%+5.1%-11.2%
Q2 2023-7.4%-25.8%-28.5%
Q1 2023-4.5%-3.7%+71.8%
Q4 2022+14.6%+18.4%+74.7%
Q3 2022+28.2%+19.4%+0.0%
Q2 2022+12.0%+7.1%-14.1%
Q1 2022+3.0%-17.3%-34.7%
Q4 2021-13.6%-11.4%-27.3%
Q3 2021-7.7%-7.7%-21.2%
Q2 2021-6.2%-10.8%-4.6%
Q1 2021-2.2%-4.3%+0.0%
Q4 2020+4.5%-1.8%-13.5%
Q3 2020+1.1%+5.6%+33.7%
Q2 2020+4.2%+0.0%-26.3%
Q1 2020-4.7%-12.9%-9.0%
Q4 2019-42.7%-25.0%-22.6%
Q3 2019+5.4%+12.4%+23.7%
Q2 2019-5.6%+2.0%+9.3%
Q1 2019-7.5%-11.9%-25.6%
Q4 2018+3.0%+23.9%+4.7%
Q3 2018+8.9%+12.3%-16.2%
Q2 2018-15.5%-12.4%-13.6%
Q1 2018-2.5%+5.8%-8.8%
Q4 2017-17.5%-18.3%-14.1%
Q3 2017+9.6%+11.6%+3.4%
Q2 2017-4.2%-1.5%-5.4%
Q1 2017-1.2%-9.1%+9.3%
Q4 2016+10.0%+10.2%+10.6%
Q3 2016-20.5%-3.5%+27.3%
Q2 2016-8.9%-8.1%-10.2%
Q1 2016+19.7%
Q4 2015-36.8%
Q3 2015-10.5%
Q2 2015+11.5%
Q1 2015+12.9%
Q4 2014-6.6%
Q3 2014+5.7%
Q2 2014+0.1%
Q1 2014-8.5%
Q3 2013-0.8%
Q2 2013+0.6%
Q1 2013-7.6%
Q4 2012-19.9%
Q3 2012-3.3%
Q2 2012-6.4%
Q1 2011-0.2%
Q1 2012+1.0%
Q4 2011-4.4%
Q3 2011-9.3%
Q3 2010-9.3%
Q2 2011-0.1%
Q2 2010-0.1%
Q4 2010-1.4%
Q1 2010+3.4%

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