Zynex, Inc.

Good morning, ladies and gentlemen, and welcome to the Zynex fourth quarter 2022 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing star then zero on your telephone keypad. After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded. I would now like to turn the conference over to Louisa Smith, from the Gilmartin Group. Please go ahead.

Thank you, Drew, and good morning, everyone. Earlier today, Zynex released financial results for the fourth quarter and year ending December 31st, 2022. A copy of the press release is available on the company's website. Joining me on today's call are Thomas Zangard, Chairman, President, and Chief Executive Officer, Dan Moorhead, Chief Financial Officer, Anna Loksock, 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.

Thank you, Louisa. And good morning, everyone. Thank you for joining us today for the fourth quarter and full year 2022 earnings call. Before we get started, I wanted to touch on the timing of this earnings call. As many of you have noticed, we are announcing full year earnings a little later than usual. We normally announce during the last week of February. However, since we have a new audit firm this year, we decided a while back to give it a week extra to the first week of March. We ended up needing two weeks so we can announce earnings today. I want to thank not only Markham, but also the staff involved here at Sinex for the hard work and long hours to get the year-end close completed, and as usual, we're still able to announce early. I should also point out that there's no change in our preliminary financial results that we reported in January. We are pleased to report another quarter of record results for SINEX. We posted new record highs for both orders and revenue in Q4 and have delivered four straight quarters of revenue and order growth. We ended 2022 with our seventh straight year of profitability. Total revenue for the quarter was 48.8 million, a 21% increase over the same period in 2021. Diluted earnings per share were 20 cents and adjusted EBITDA was 11.4 million for the quarter. We're proud of the top line growth we've seen through increased sales rep productivity, while also maintaining a healthy bottom line to support significant business development in our monitoring division. We received the highest number of prescriptions in the company's history in the fourth quarter, beating a milestone we had previously hit in the preceding second and third quarters of 2022. We are demonstrating robust growth momentum that has not let up a key indication that our sales force is gaining in productivity and gaining more and more active prescribers of our products. Revenue and profitability remain strong and the productivity of our sales force allowed for a 48% order growth over Q4 of 2021 and 11% order growth in our third quarter. As of this point, we are now over 80% into the first quarter, and we can see that our order growth will come in well above 50%, so our order growth is clearly accelerating at the moment. We remain confident in our strong performance and anticipate hitting both top and bottom line guidance for the full year, with 2023 estimates of revenue between $180 and $200 million and earnings per share between $0.40 and $0.50. Earlier this year, we finished our third 10 million stock buyback, and we feel strongly that these buybacks underscore management's confidence in the performance of our team and the growth potential of both the pain management and the monitoring division in years to come. We remain committed to deliver shareholder value and have so far spent $30 million in buying back stock over the past year. CMS, or Sinex Monitoring Solutions, has an incredibly strong team and is working to bring the blood and fluid monitor, early detection of sepsis device, and our laser-based pulse oximeter to market. Earlier this year, we announced the first enrollment in a blood loss detection clinical trial for the CM1600, and pending FDA's clearance of the device, we'll announce our commercialization. As you may recall, our first generation CM1500 is already cleared by the FDA. Please note, despite the progress that the division is making, our revenue guidance and growth rates for 2023, we do not plan on any meaningful revenue coming from the CMS division. Our laser-based pulse oximeter is still in the development stage following the acquisition of Kestrel Labs just over a year ago, but our team is making important strides with prototyping of the second generation of the product. I'd also like to mention some of the recent acknowledgments Cynics has received. Over the last several months, we've been recognized by many organizations, including Forbes and Deloitte for our rapid growth and strong performance. Forbes ranked us as number 11 in a list of America's best small companies. including us taking the honor of number one in the healthcare equipment and services industry. We're extraordinarily proud of these accolades and believe they highlight the dedication and commitment we have to growing the business and providing value to both our patients and our shareholders. Cynics is delivering consistent results with an efficient business model that continues to meet our guidance expectations. We are making considerable progress on key initiatives that will expand our commercial sales organization, as well as diversify our business into compelling market opportunities. Between the game-changing innovation occurring in our monitoring division and the strong team that is executed in pain management, I'm excited to see the realization of our growth plans in the quarters to come. With that, I will now turn the call over to Anna Luxor, our Chief Operating Officer, for a more detailed business update on the paint management division.