Rockwell Medical loss shrinks on higher sales

WIXOM–Rockwell Medical Inc. (Nasdaq: RMTI), the developer of hemodialysis products, reported a loss of $8.4 million or 26 cents a share for 2023, an improvement from a loss of $18.7 million or $1.31 a share in 2022. Revenue was $83.6 million, up from $72.8 million in 2022.

For the fourth quarter, the loss was $1.5 million or 5 cents a share, an improvement from a loss of $2.4 million or 13 cents a share in the fourth quarter of 2022. Revenue was $22.1 million, ,up from $19.3 million a year earlier.

The company also noted that for the first time, it achieved fourth quarter profiability on an “adjusted EBITDA basis.” That figure removes interest, taxes, depreciation and amortization, stock-based compensation expense, and other one-time events such as severance costs, deferred revenue, and inventory reserves, from the loss figure.

The company also issued guidance for 2024, predicting sales of $84 million to $88 million and adjusted EBITDA profitability for the full year.

“2023 was a transformative year for Rockwell Medical, making it the second year in a row that we have provided guidance and met or exceeded that guidance,” Rockwell Medical President and CEO Mark Strobeck said in a news release. “We significantly improved Rockwell Medical’s financial health, generated the highest revenue and gross profit to-date for the Company, and successfully achieved profitability on an adjusted EBITDA basis in the fourth quarter of 2023, the first time in the Company’s history. Over the last 18 months, we have completed two acquisitions, renegotiated a number of customer product and supply agreements—securing multi-year agreements with minimums—expanded our geographic footprint both domestically and internationally, and significantly improved efficiencies in our manufacturing processes that are being realized through improved gross margin. Our focused strategy is having a direct impact on Rockwell Medical’s top and bottom line, which we project will continue in 2024 and beyond. For us it’s personal. Ensuring Rockwell Medical’s long-term viability secures our ability to manufacture and distribute life-sustaining dialysis solutions which have a positive impact on the lives of hemodialysis patients with end-stage kidney disease.”

To listen to a replay of a conference call discussing these results, visit
www.RockwellMed.com/Results.

Rockwell Medical develops, manufactures, commercializes, and distributes a portfolio of hemodialysis products for dialysis providers worldwide. Hemodialysis is the most common form of end-stage kidney disease treatment and is usually performed at freestanding outpatient dialysis centers, at hospital-based outpatient centers, at skilled nursing facilities, or in a patient’s home. Rockwell Medical is the largest supplier of liquid bicarbonate concentrates and the second largest supplier of acid and dry bicarbonate concentrates for dialysis patients in the United States.

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