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Sep 30, 2024
Rockwell Medical Q3 2024 Earnings Report
Reported profitability on a cash flow and Adjusted EBITDA basis for the second consecutive quarter.
Key Takeaways
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.
Rockwell Medical
Rockwell Medical
Forward Guidance
Rockwell Medical is increasing its 2024 guidance projections.
Positive Outlook
- 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
Challenges Ahead
- 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.