Zynex, Inc.

Good afternoon, ladies and gentlemen, and welcome to the Zynex Third Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. As a reminder, this conference is being recorded today. I would now like to turn the conference over to Louisa Smith from the Gilmartin Group.

Thank you, Joe, and good afternoon, everyone. Earlier today, Zynex released financial results for the third quarter of 2022. A copy of the press release is available on the company's website. Joining me on today's call are Thomas Zongard, Chairman, President, and Chief Executive Officer, Dan Moorhead, Chief Financial Officer, Anna Lukczak, Chief Operating Officer, and Donald Gregg, Vice President of Zynex Monitoring Solutions. Before we begin, I'd like to remind you that during this conference call, the company will make projections and forward-looking statements regarding future events. We encourage you to review the company's past and future filings with the SEC, including without limitation, the company's 2021 Form 10-K and subsequent Form 10-Qs, which identify the specific factors that may cause actual results or events to differ materially from those described in these forward-looking statements. These factors may include, without limitation, statements regarding product development, product potential, the regulatory environment, sales and marketing strategies, capital resources, or operating performance. With that, I'll now turn the call over to Thomas.

Yeah, thank you, Louisa, and good afternoon, everyone. Thank you for joining us today for our third quarter 2022 earnings call. As noted in our recent earnings flash report, we are pleased to report another quarter of record revenue and order numbers. September saw the highest monthly orders in the company's history following a record break in August. Revenue and profitability remained strong and the productivity of our sales force has allowed for 19% and 13% revenue growth over Q2 and Q2021 and sorry, Q3 2021 and Q2 2022 respectively. Total revenue for the quarter was 41.5 million, diluted earnings per share of 13 cents and adjusted EBITDA of 8.1 million. We remain confident in our strong performance and expect to achieve both top and bottom line guidance for the full year with current estimates of revenue being between 157.4 and 160.4 million, and EBITDA of 26.7 to 28.7 million. Our strong cash precision and collections allowed us to complete a second stock buyback in the open market, totaling 20 million so far this year. We believe these buybacks are a prudent way to apply our positive cash flow at this time and demonstrates our confidence in the performance of the business, our ability to capitalize on future growth opportunities and ultimately deliver value to shareholders. The quarter ended with over 400 sales reps and our ultimate goal is to fill all 800 territories and we are exceptionally pleased with the productivity growth our existing sales force have been realizing recently and so far. Revenue per rep is up 30% compared to this time last year and 12% over last quarter. We'll seek to fill the remaining 350 plus territories over the coming years and eventually make those territories as productive as where we now have seasoned reps with consistent high order production. The development in our monitoring division is progressing as anticipated as our team works to bring the CM1600 blood and fluid volume monitor, early detection of sepsis device, and the laser-based pulse oximeter to market. I'd all call these products individually for game changers. This quarter, we announced some significant milestones, including the first enrollment in a blood loss detection clinical trial for the CM1600. Pending clearance of this device will announce our commercialization strategy throughout 2023. The laser-based pulse oximeter is still in the development stage following the acquisition of Kestrel Labs in December of 2021. We expect to have prototypes towards the end of this calendar year and submission to the FDA for clearance in mid-2023. I'm very pleased with the company's performance and look forward to witnessing our continued progress in both divisions. Sinex is unique in that we are executing quarter after quarter and delivering consistent results in terms of revenue growth and profitability. As opposed to many of our cash-restricted small-cap peers in the sector, we've been profitable in 24 of the last 25 quarters. We're not limited by a high cash burn and we don't need to repeatedly turn to the capital markets to pursue growth opportunities. Cynics has a compelling business model with a fantastic team that is performing efficiently, and I'm excited to see what we can do throughout the rest of the year and into the next. With that, I'll now turn the call over to Anna Luxor, our Chief Operating Officer, for a more detailed business update from the Pain Management Division.