Latest news with #RockwellMedical
Yahoo
13-05-2025
- Business
- Yahoo
Rockwell Medical Inc (RMTI) Q1 2025 Earnings Call Highlights: Navigating Challenges and ...
Net Sales: $18.9 million, a 17% decrease from $22.7 million in Q1 2024. Gross Profit: $3 million, consistent with the same period in 2024. Gross Margin: 16%, up from 14% in Q1 2024. Net Loss: $1.5 million, improved from a net loss of $1.7 million in Q1 2024. Adjusted EBITDA: Negative $400,000. Cash, Cash Equivalents, and Investments: $17.3 million as of March 31, 2025, down from $21.6 million at December 31, 2024. Projected 2025 Net Sales Guidance: Between $65 million and $70 million. Projected 2025 Gross Margin Guidance: Between 16% and 18%. Projected 2025 Adjusted EBITDA Guidance: Between negative $500,000 and positive $500,000. Warning! GuruFocus has detected 3 Warning Signs with RMTI. Release Date: May 12, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Rockwell Medical Inc (NASDAQ:RMTI) successfully diversified its customer base by signing new contracts with leading regional, national, and global hemodialysis providers. The company maintained its gross margin within the guidance range for the year, demonstrating effective cost management. Rockwell Medical Inc (NASDAQ:RMTI) launched a new single-use bicarbonate cartridge technology, expanding its product portfolio and addressing a growing market segment. The company is actively pursuing business development opportunities that could strengthen its position in the renal market and provide access to new markets. Rockwell Medical Inc (NASDAQ:RMTI) reiterated its projected guidance for 2025, indicating confidence in achieving net sales between $65 million and $70 million. Net sales for the first quarter decreased by 17% compared to the same period in 2024, primarily due to the largest customer transitioning to another supplier. The company experienced a net loss of $1.5 million for Q1 2025, although this was an improvement over the previous year's loss. Adjusted EBITDA for Q1 2025 was negative $400,000, impacted by seasonal items associated with payroll tax and other expenses. Cash, cash equivalents, and investments decreased from $21.6 million at the end of 2024 to $17.3 million at the end of Q1 2025. The ongoing negotiations with the largest customer may result in a scaled-down contractual commitment, potentially impacting future revenue. Q: Can you provide an update on the negotiations with your largest historical customer and the potential scenarios that could arise from these discussions? Also, what is the expected revenue cadence for the remainder of 2025? A: Discussions with our largest customer are ongoing to maintain some level of service, likely at a smaller scale than before. We aim to establish a long-term arrangement to supply them, including replenishing their safety stock. Regarding revenue, we are in the process of acquiring new customers, which could be significant. We are confident in our guidance and expect Q2 to be the low point for the year, with improvements thereafter. Q: Could you comment on the at-home dialysis market and your specific product offerings in this area? A: The at-home dialysis market is progressing as expected and is growing. Our product offering for this market is gaining traction, and we anticipate increased sales in the second half of the year. This product not only improves patient experience but also offers higher margins for us. Q: Can you provide more information on your international market expansion, particularly on the West Coast? A: We are expanding primarily in Latin America, which presents significant opportunities. For the West Coast of the U.S., we see potential as it is largely supported by one manufacturer. We are considering establishing a facility there to capitalize on this opportunity, but no final decisions have been made yet. Q: How do you plan to mitigate the revenue loss from your largest customer transitioning to another supplier? A: We believe there are enough opportunities among small independent dialysis providers and within our existing footprint to replace a significant portion of the lost revenue. Our focus is on expanding our customer base domestically and internationally, particularly in Latin America. Q: Is the revenue guidance you reaffirmed today based on your current customer base, and could new customers provide potential upside? A: Yes, the guidance is based on our current customer base. Any new customers acquired during the year would provide potential upside to our revenue projections. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
13-05-2025
- Business
- Yahoo
Q1 2025 Rockwell Medical Inc Earnings Call
Heather Hunter; Senior Vice President, Chief Corporate Affairs Officer; Rockwell Medical Inc. Mark Strobeck; President, Chief Executive Officer, Director; Rockwell Medical Inc. Jesse Neri; Chief Financial Officer, Senior Vice President-Finance; Rockwell Medical Inc. Raghuram Selvaraju; Analyst; H.C. Wainwright & Co. Jeremy Pearlman; Analyst; Maxim Group LLC Operator Good morning and welcome to Rockwell Medical's first-quarter 2025 results conference call and webcast. Please note that this event is being recorded. At this time, I would like to turn the conference call over to Heather Hunter, Senior Vice President, Chief Corporate Affairs Officer at Rockwell Medical. Heather, please go ahead. Heather Hunter Good morning and thank you for joining us for this update on Rockwell Medical. Joining me on today's conference call are Dr. Mark Strobeck, Rockwell Medical's President and Chief Executive Officer; and Jesse Neri, Rockwell Medical's Chief Financial Officer. Before we begin, I would like to remind you that this conference call will contain forward-looking statements about Rockwell Medical within the meaning of the federal securities laws including, but not limited to, the types of statements identified as forward-looking in our annual report on Form 10-K and our subsequent periodic reports filed with the SEC. These statements are subject to risks and uncertainties that could cause actual results to differ. Please note that these forward-looking statements reflect our opinions and expectations only as of today. Except as required by law, we specifically disclaim any obligation to update or revise these forward-looking statements in light of new information or future events. Factors that could cause actual results or outcomes to differ materially from those expressed in or implied by such forward-looking statements are discussed in greater detail in our periodic reports filed with the SEC. Rockwell Medical's quarterly report on Form 10-Q for the three months ended March 31, 2025, was filed prior to this call and provides a full analysis of the company's business strategy as well as our first-quarter 2025 results. The reconciliation of non-GAAP measures we discussed in today's call can also be found in today's press release. Our Form 10-Q and other reports filed with the SEC, along with today's press release, our updated investor presentation, and a replay of today's conference call and webcast can be found on Rockwell Medical's website under the Investors section. Now I would like to turn the call over to Rockwell Medical's President and CEO, Dr. Mark Strobeck. Mark Strobeck Thank you, Heather. Good morning and thank you for joining us today for Rockwell Medical's first-quarter 2025 earnings conference call and webcast. As we discussed back in March, the first quarter was going to be a transition period for Rockwell. During the first quarter, we continued to diversify our customer base with some of the leading regional, national, and global hemodialysis providers and health systems. We remain a preferred provider as a result of our continued reliability, high-quality products, and customer-centric approach, and have signed a number of new contracts during this period. Our business in the first quarter performed according to plan, with revenue and gross profit in line with our expectations for the year. In addition, we continue to consolidate and further automate our manufacturing operations to reduce expenses and sustain our gross margin, which was also within our guidance range for the year. As for our largest customer, we continue to work with them to find ways to support their business going forward. Although we have not entered into a new agreement, we are still in active discussions with them about terms for potential contract extension. One area that we are closely monitoring is the recent cyber attack that occurred in our industry. As you may know, last month, our largest customer announced a company-wide ransomware incident impacting certain elements of its network. We were notified by our customer of this cyber attack and immediately disconnected all systems that were connected to their organization to prevent any potential impact of our own IT infrastructure. We are actively monitoring our network and have not experienced any direct implications to or impact on our systems to-date. Another area that we are closely monitoring is tariffs. Rockwell Medical's hemodialysis concentrates are manufactured right here in America and have been since the company was founded nearly 30 years ago. Approximately 90% of our revenue comes from dialysis providers within the United States. 10% is generated ex-U.S., of which, only one country is directly impacted by the recent U.S. tariff actions. This equates to a negligible amount of our total annualized revenue. Because we manufacture our products in the United States, we can manage our own supply chain and nimbly respond to real-world demand. While we do source a few supplies from outside the United States, we do not anticipate tariffs to impact our costs on those supplies. In the first quarter, we added a single-use bicarbonate cartridge technology to our portfolio of hemodialysis concentrates products. The addition of this bicarb cartridge to our portfolio represents an exciting opportunity for us to diversify our offering and address one of the fastest-growing segments within the dialysis products market. We officially launched this new product in February and are starting to see some traction with our customers. We continue to be very active in pursuing business development opportunities. We are seeking transactions that can further strengthen our position in the renal market and will provide access to new markets either through product acquisitions or international expansion. These opportunities are intended to be revenue-generating, immediately accretive to our business. We are engaged in due diligence on a number of opportunities and are looking for just the right one that meets our growth targets and objectives. We hope to have more to say on this in the coming quarters. Rockwell remains a leading supplier that has the scalability to manufacture and deliver to the more than 12,000 individual purchasing facilities, including outpatient dialysis clinics and hospitals in the U.S., along with select international markets. We are reiterating our projected guidance for 2025 with net sales between $65 million and $70 million, gross margin between 16% and 18%, and adjusted EBITDA between a negative $500,000 and a positive $500,000. Now I will turn the call over to Jesse to review our first-quarter 2025 financial results in further detail. Jesse? Jesse Neri Thank you, Mark. Good morning, everyone. I will now review our first quarter 2025 financial results in greater detail. Net sales for the first quarter were $18.9 million, representing a 17% decrease over net sales of $22.7 million for the same period in 2024. The decrease in net sales was driven by our largest customer transitioning to another supplier. This customer agreed to a one-time non-refundable payment of $900,000 to ensure continuity of supply for products purchased during the first quarter. Gross profit for Q1 2025 was $3 million, which was in line with gross profit for the same period in 2024. Gross margin for Q1 2025 was 16%, representing an increase from 14% for the same period in 2024. Net loss for Q1 2025 was $1.5 million, which represents an improvement over a net loss of $1.7 million for the same period in 2024. Adjusted EBITDA for Q1 2025 was a negative $400,000. Seasonal items associated with payroll tax and other public company-related expenses historically incurred in Q1 drove our adjusted EBITDA to be slightly negative. Cash, cash equivalents, and investments available for sale at March 31, 2025, was $17.3 million, compared to $21.6 million at December 31, 2025. The decrease was driven by timing of payments and collections and seasonal items historically incurred in the first quarter. Now I'll turn the call back over to Mark. Mark Strobeck Thank you, Jesse. Operator, please open the phone lines for any questions. Operator (Operator Instructions) Ram Selvaraju, H.C. Wainwright. Raghuram Selvaraju Hi. Thanks so much for taking my questions and congrats on the performance not so far in the quarter in line with your previously reported guidance. I was wondering if you could firstly give us some sense on the following two aspects. First and foremost, with regard to the negotiations that are ongoing with your largest historical customer, kind of give us a sense of some scenarios that could ultimately arise from those negotiations. In other words, would there be a scaled down contractual commitment by this customer? Could the customer still elect to diversify away from Rockwell entirely? Or would there conceivably be a situation in which the customer continued to order from Rockwell at levels comparable to those seen in the past? And then secondly, if you could give us a sense of any kind of directionality with regard to top line revenue cadence for the remainder of 2025? And if you have visibility at this point as to which of the remaining three quarters of the year are likely to be the weakest with respect to revenue? Thank you. Mark Strobeck Thank you, Ram. Let me address the first of your questions. So the discussions that we have ongoing right now with our largest customer are to continue to maintain some level of service to them for the future going forward. It will likely be at a much smaller scale than we have done previously. But I think from the way that we're looking at it is we have a good relationship with them, we're a strong supplier of their organization, and so we're looking to put in place a longer term arrangement that will maintain some supply as well as provide them some supply for their -- they have safety stock that they have that we would be looking to replenish. So that's the extent of the relationship that we're currently negotiating with them. As it relates to revenue going forward, I think it's tough to predict that in the sense of we're in the process right now of finding additional customers, bringing on new customers. And some of those are going to be incredibly meaningful. So we're really not in a position today to be able to provide that level of guidance. I think it's safe to say, we feel really confident in the guidance that we've provided and feel good that there is a strong possibility that we will be able to improve that. Jesse, I don't know if you have anything further to say. Jesse Neri Mark, I think that's right. I mean, the way things are looking right now, I would say, Q2 is probably going to be the low point for the year and then build from there. But to Mark's point, it's still a little bit early to say. Raghuram Selvaraju Okay. And then if you could comment on any emergent dynamics or anything in respect to the at-home dialysis market and the specific product offerings that you've brought (technical difficulty)? Thank you. Mark Strobeck The at-home market, I would say, is continuing to progress as we've expected. From our vantage point today, it will certainly be a part of the path to delivering treatment. It's not a large part today, but it's certainly one that continues to grow. Our product offering that we've put together for the at-home market is now beginning to start to -- we're starting to increase sales of that product. And we suspect that there will be more coming through the remainder of the year. The nice part for us about that product offering, not only as it significantly improves, our patient is able to administer the dialysis treatment at home by using product types that are much more manageable for the patient, but it's also a much higher margin product for us. And so we're looking to see that begin to grow here in the second half of the year. Raghuram Selvaraju Great. Thank you very much. Operator Jeremy Pearlman, Maxim Group. Jeremy Pearlman Good morning. Thank you for taking my questions. First, maybe if you could expand any more information on your international market expansion on the West Coast? Where you see the opportunities there and how is that progressing? Mark Strobeck We continue to expand our business, what we call sort of internationally. But it's primarily in Latin America. That's a big opportunity for us and one that we continue to see an opportunity for us to provide products to those emerging dialysis centers. And a lot of our growth continues to be within that region. Again, it's advantageous for us. We aren't responsible for the distribution of those products. That's taken on by the customer. And so that turns out to be a good piece of business for us. As far as expansion into the western portion of the United States, we still believe that that's a good opportunity. We still believe that based on our data, that is largely being supported by one manufacturer. And so we think there's an opportunity there. We're still trying to determine what's the sort of the best approach for us to take to enter into that West Coast market. We've developed now critical mass as it relates to customers out in the West. So with that in hand, it likely makes more sense for us to contemplate establishing a facility out in the West. But we haven't made any final determinations yet on how to best do that. But it's certainly an area that we think is a ripe opportunity for us to expand. Jeremy Pearlman Understood. And then maybe if you could just help us, I know the loss of the largest customer was a little bit of a setback and you're trying to mitigate that by taking on new customers, how much of that revenue do you think you could take on? Are there enough in the small independent dialysis providers that you'd be able to pick up and to cover most of that expense, the the lost revenue? How are you looking at that? Mark Strobeck We think there is. And it's in the areas likely that you've just discussed. And I would add to that, within our own existing footprint today, there's still a significant number of customers that exist that don't currently purchase Rockwell products that could. So our commercial efforts are focused, A, to expand our customer base within our existing footprint; B, to expand our customer base internationally within Latin America primarily; and then third will be to continue to further penetrate into the West. We believe that there's an opportunity there that is large enough that would allow us to replace a significant portion of the revenue that we lost. Jeremy Pearlman Okay. Understood. And then just last question, I just want to make sure, I think I heard this as part of an answer to another question, the revenue guidance that you're reaffirming today, that's as your customer base stands now? And then if any other customers you may sign on as the year goes on, that could just be potential upside? Or are there any customers that you assume or you're able to get baked into that guidance? Mark Strobeck No. So this is based on our current customer base today. And so any new customer would add to that. So there would be potential upside there. Jeremy Pearlman Okay. Great. Thank you for taking my questions. Have a nice day. Operator There are no further questions. This concludes today's conference call and webcast. You may now disconnect. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Washington Post
12-05-2025
- Business
- Washington Post
Rockwell Medical: Q1 Earnings Snapshot
WIXOM, Mich. — WIXOM, Mich. — Rockwell Medical Inc. (RMTI) on Monday reported a loss of $1.5 million in its first quarter. The Wixom, Michigan-based company said it had a loss of 4 cents per share. The maker of products used in the treatment of kidney disease and anemia posted revenue of $18.9 million in the period.
Associated Press
12-05-2025
- Business
- Associated Press
Rockwell Medical Announces First Quarter 2025 Results
WIXOM, Mich.--(BUSINESS WIRE)--May 12, 2025-- Rockwell Medical, Inc. (the 'Company') (Nasdaq: RMTI), a healthcare company that develops, manufactures, commercializes, and distributes a portfolio of hemodialysis products to dialysis providers worldwide, today announced financial and operational results for the three months ended March 31, 2025. 'During the first quarter, we continued to diversify our customer base with some of the leading regional, national and global hemodialysis providers and health systems. We remain a preferred provider as a result of our continued reliability, high-quality products, and customer-centric approach,' said MarkStrobeck, Ph.D., Rockwell Medical's President and CEO. 'Additionally, we continued to consolidate and further automate our manufacturing operations to reduce expenses and sustain our gross margin despite our largest customer moving away from Rockwell Medical. We look forward to sharing more updates in the months ahead.' FIRST QUARTER 2025 FINANCIAL HIGHLIGHTS FIRST QUARTER 2025 OPERATING HIGHLIGHTS GUIDANCE Rockwell confirms its 2025 annual guidance as follows: CONFERENCE CALL AND WEBCAST DETAILS Date: Monday, May 12, 2025 Time: 8:00am ET Live Number: (888) 660-6347 // (International) 1 (929) 201-6594 Conference Call ID: 4944610 Webcast and Replay: Speakers: Format: Discussion of first quarter 2025 financial and operational results followed by Q&A. NON-GAAP FINANCIAL MEASURES To supplement Rockwell Medical's unaudited condensed consolidated statements of operations and unaudited condensed consolidated balance sheets, which are prepared in conformity with generally accepted accounting principles in the United States of America ('GAAP'), this press release also includes references to adjusted EBITDA, a non-GAAP financial measure that is defined as net income (loss) before net interest income (expense), net other income (expense), income tax expenses (benefit), depreciation and amortization, impairment charges, stock-based compensation expense, and other items that are considered unusual or not representative of underlying trends of our business, including but not limited to one-time severance costs, deferred revenue and inventory reserve amounts, if applicable for the periods presented. The Company has provided a reconciliation of net loss, the most directly comparable GAAP financial measure, to adjusted EBITDA. In addition, this press release includes a reference to adjusted EPS, a non-GAAP financial measure that is defined as adjusted EBITDA divided by the weighted average number of shares outstanding. The Company has also provided a reconciliation to EPS, or net income divided by the weighted average number of shares outstanding, which is the most directly comparable GAAP financial measure. Each of these adjusted measures is a non-GAAP financial measure. The Company has provided reconciliations to the GAAP measures at the end of this press release. Adjusted EBITDA and adjusted EPS are key measures used by Rockwell Medical to understand and evaluate operating performance and trends, to prepare and approve its annual budget, and to develop short- and long-term operating plans. The Company provides adjusted EBITDA because it believes the metric is helpful in highlighting trends in its operating results because it excludes items that are not indicative of Rockwell Medical's core operating performance. In particular, the Company believes that the exclusion of the items eliminated in calculating adjusted EBITDA provide useful measures for period-to-period comparisons of Rockwell Medical's business. This is also true for adjusted EPS, which is derived from adjusted EBITDA. Adjusted EBITDA and adjusted EPS should not be considered in isolation of, or as an alternative to, measures prepared in accordance with GAAP. Other companies, including companies in the same industry, may calculate similarly titled non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of adjusted EBITDA and adjusted EPS as tools for comparison. There are a number of limitations related to the use of these non-GAAP financial measures rather than the most directly comparable financial measures calculated in accordance with GAAP. When evaluating the Company's performance, you should consider adjusted EBITDA and adjusted EPS alongside other financial performance measures, including net loss, EPS and other GAAP results. ABOUT ROCKWELL MEDICAL Rockwell Medical, Inc. (Nasdaq: RMTI) is a healthcare company that develops, manufactures, commercializes, and distributes a portfolio of hemodialysis products for dialysis providers worldwide. Rockwell Medical's mission is to provide dialysis clinics and the patients they serve with the highest quality products supported by the best customer service in the industry. Rockwell is focused on innovative, long-term growth strategies that enhance its products, its processes, and its people, enabling the Company to deliver exceptional value to the healthcare system and provide a positive impact on the lives of hemodialysis patients. Hemodialysis is the most common form of end-stage kidney disease treatment and is typically performed in freestanding outpatient dialysis centers, hospital-based outpatient centers, skilled nursing facilities, or a patient's home. Rockwell Medical's products are vital to vulnerable patients with end-stage kidney disease, and the Company is relentless in providing unmatched reliability and customer service. Certified as a Great Place to Work ® in 2023, 2024 and 2025, and named Fortune Best Workplaces in Manufacturing & Production TM in 2024, Rockwell Medical is Driven to Deliver Life-Sustaining Dialysis Solutions TM. For more information, visit FORWARD-LOOKING STATEMENTS Certain statements in this press release may constitute 'forward-looking statements' within the meaning of the federal securities laws. Words such as, 'may,' 'might,' 'will,' 'should,' 'believe,' 'expect,' 'anticipate,' 'estimate,' 'continue,' 'could,' 'can,' 'would,' 'develop,' 'plan,' 'potential,' 'predict,' 'forecast,' 'project,' 'intend,' 'look forward to,' 'remain confident,' 'feel confident,' 'guidance,' or the negative of these terms, and similar expressions, or statements regarding intent, belief, or current expectations, are forward looking statements. These statements include (without limitation) statements regarding: expectations related to expenses for 2025 and annual guidance on net sales, gross margin and adjusted EBITDA. While Rockwell Medical believes these forward-looking statements are reasonable, undue reliance should not be placed on any such forward-looking statements, which are based on information available to us on the date of this release. These forward-looking statements are based upon current estimates and assumptions and are subject to various risks and uncertainties (including, without limitation, those set forth in Rockwell Medical's SEC filings), many of which are beyond our control and subject to change. Actual results could be materially different. Risks and uncertainties include but are not limited to those risks more fully discussed in the 'Risk Factors' section of our Annual Report on Form 10-K for the year ended December 31, 2024, as such description may be amended or updated in any subsequent reports filed with the SEC. Rockwell Medical expressly disclaims any obligation to update our forward-looking statements, except as may be required by law. Financial Tables Follow View source version on CONTACT: Heather R. Hunter SVP, Chief Corporate Affairs Officer (248) 432-1362 [email protected] KEYWORD: UNITED STATES NORTH AMERICA MICHIGAN INDUSTRY KEYWORD: NURSING MEDICAL SUPPLIES MANUFACTURING DIABETES HEALTH PHARMACEUTICAL OTHER SCIENCE MEDICAL DEVICES OTHER MANUFACTURING HOSPITALS SCIENCE SOURCE: Rockwell Medical Copyright Business Wire 2025. PUB: 05/12/2025 06:00 AM/DISC: 05/12/2025 05:59 AM
Business Wire
12-05-2025
- Business
- Business Wire
Rockwell Medical Announces First Quarter 2025 Results
WIXOM, Mich.--(BUSINESS WIRE)--Rockwell Medical, Inc. (the "Company") (Nasdaq: RMTI), a healthcare company that develops, manufactures, commercializes, and distributes a portfolio of hemodialysis products to dialysis providers worldwide, today announced financial and operational results for the three months ended March 31, 2025. $RMTI Reports Q1'25 financial and operational results. CC/Webcast at 8:00am ET. #earnings #ESRD #hemodialysis Share "During the first quarter, we continued to diversify our customer base with some of the leading regional, national and global hemodialysis providers and health systems. We remain a preferred provider as a result of our continued reliability, high-quality products, and customer-centric approach," said Mark Strobeck, Ph.D., Rockwell Medical's President and CEO. "Additionally, we continued to consolidate and further automate our manufacturing operations to reduce expenses and sustain our gross margin despite our largest customer moving away from Rockwell Medical. We look forward to sharing more updates in the months ahead." FIRST QUARTER 2025 FINANCIAL HIGHLIGHTS Net sales for the three months ended March 31, 2025 were $18.9 million, which represents a 17% decrease over net sales of $22.7 million for the same period in 2024. The decrease in net sales was driven by the Company's largest customer transitioning to another supplier. Subject to further discussions, this customer agreed to a one-time, non-refundable payment of $0.9 million, which was recognized in the first quarter, to ensure continuity of supply for products purchased during the first quarter 2025. Gross profit for the three months ended March 31, 2025 was $3.0 million, which was in line with gross profit for the same period in 2024. Gross margin for the three months ended March 31, 2025 was 16%, representing an increase from 14% for the same period in 2024. Net loss for the three months ended March 31, 2025 was $1.5 million, representing a 12% improvement over a net loss of $1.7 million for the same period in 2024. Adjusted EBITDA for the three months ended March 31, 2025 was ($0.4) million. Seasonal items associated with payroll tax and other public company related expenses historically incurred in the first quarter drove the Company's adjusted EBITDA to be slightly negative. Cash and cash equivalents and investments available-for-sale at March 31, 2025 was $17.3 million compared to cash and cash equivalents and investments available-for-sale of $21.6 million at December 31, 2024. The decrease in cash of approximately $4.3 million was driven by timing of payments and collections and seasonal items historically incurred in the first quarter. FIRST QUARTER 2025 OPERATING HIGHLIGHTS Rockwell Medical added a single-use bicarbonate cartridge to its hemodialysis concentrates product portfolio through a distribution services agreement with a leading manufacturer of medical equipment including hemodialysis machines, disposable products, and automated fluid balance systems. Rockwell Medical was named a Great Place to Work ® for the third year in a row. This accreditation reflects the tremendous progress the Company has made over the past several years fostering a workplace that supports innovation, sustainable performance and business agility. GUIDANCE Rockwell confirms its 2025 annual guidance as follows: 2025 Annual Guidance Net Sales $65.0M to $70.0M Gross Margin 16% to 18% Adjusted EBITDA ($0.5)M to $0.5M Expand CONFERENCE CALL AND WEBCAST DETAILS Date: Monday, May 12, 2025 Time: 8:00am ET Live Number: (888) 660-6347 // (International) 1 (929) 201-6594 Conference Call ID: 4944610 Webcast and Replay: Speakers: Mark Strobeck, Ph.D. — President and Chief Executive Officer; and Jesse Neri — SVP, Chief Financial Officer Format: Discussion of first quarter 2025 financial and operational results followed by Q&A. NON-GAAP FINANCIAL MEASURES To supplement Rockwell Medical's unaudited condensed consolidated statements of operations and unaudited condensed consolidated balance sheets, which are prepared in conformity with generally accepted accounting principles in the United States of America ('GAAP'), this press release also includes references to adjusted EBITDA, a non-GAAP financial measure that is defined as net income (loss) before net interest income (expense), net other income (expense), income tax expenses (benefit), depreciation and amortization, impairment charges, stock-based compensation expense, and other items that are considered unusual or not representative of underlying trends of our business, including but not limited to one-time severance costs, deferred revenue and inventory reserve amounts, if applicable for the periods presented. The Company has provided a reconciliation of net loss, the most directly comparable GAAP financial measure, to adjusted EBITDA. In addition, this press release includes a reference to adjusted EPS, a non-GAAP financial measure that is defined as adjusted EBITDA divided by the weighted average number of shares outstanding. The Company has also provided a reconciliation to EPS, or net income divided by the weighted average number of shares outstanding, which is the most directly comparable GAAP financial measure. Each of these adjusted measures is a non-GAAP financial measure. The Company has provided reconciliations to the GAAP measures at the end of this press release. Adjusted EBITDA and adjusted EPS are key measures used by Rockwell Medical to understand and evaluate operating performance and trends, to prepare and approve its annual budget, and to develop short- and long-term operating plans. The Company provides adjusted EBITDA because it believes the metric is helpful in highlighting trends in its operating results because it excludes items that are not indicative of Rockwell Medical's core operating performance. In particular, the Company believes that the exclusion of the items eliminated in calculating adjusted EBITDA provide useful measures for period-to-period comparisons of Rockwell Medical's business. This is also true for adjusted EPS, which is derived from adjusted EBITDA. Adjusted EBITDA and adjusted EPS should not be considered in isolation of, or as an alternative to, measures prepared in accordance with GAAP. Other companies, including companies in the same industry, may calculate similarly titled non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of adjusted EBITDA and adjusted EPS as tools for comparison. There are a number of limitations related to the use of these non-GAAP financial measures rather than the most directly comparable financial measures calculated in accordance with GAAP. When evaluating the Company's performance, you should consider adjusted EBITDA and adjusted EPS alongside other financial performance measures, including net loss, EPS and other GAAP results. ABOUT ROCKWELL MEDICAL Rockwell Medical, Inc. (Nasdaq: RMTI) is a healthcare company that develops, manufactures, commercializes, and distributes a portfolio of hemodialysis products for dialysis providers worldwide. Rockwell Medical's mission is to provide dialysis clinics and the patients they serve with the highest quality products supported by the best customer service in the industry. Rockwell is focused on innovative, long-term growth strategies that enhance its products, its processes, and its people, enabling the Company to deliver exceptional value to the healthcare system and provide a positive impact on the lives of hemodialysis patients. Hemodialysis is the most common form of end-stage kidney disease treatment and is typically performed in freestanding outpatient dialysis centers, hospital-based outpatient centers, skilled nursing facilities, or a patient's home. Rockwell Medical's products are vital to vulnerable patients with end-stage kidney disease, and the Company is relentless in providing unmatched reliability and customer service. Certified as a Great Place to Work ® in 2023, 2024 and 2025, and named Fortune Best Workplaces in Manufacturing & Production TM in 2024, Rockwell Medical is Driven to Deliver Life-Sustaining Dialysis Solutions TM. For more information, visit FORWARD-LOOKING STATEMENTS Certain statements in this press release may constitute "forward-looking statements" within the meaning of the federal securities laws. Words such as, "may," "might," "will," "should," "believe," "expect," "anticipate," "estimate," "continue," "could," "can," "would," "develop," "plan," "potential," "predict," "forecast," "project," "intend," "look forward to," "remain confident," 'feel confident,' 'guidance,' or the negative of these terms, and similar expressions, or statements regarding intent, belief, or current expectations, are forward looking statements. These statements include (without limitation) statements regarding: expectations related to expenses for 2025 and annual guidance on net sales, gross margin and adjusted EBITDA. While Rockwell Medical believes these forward-looking statements are reasonable, undue reliance should not be placed on any such forward-looking statements, which are based on information available to us on the date of this release. These forward-looking statements are based upon current estimates and assumptions and are subject to various risks and uncertainties (including, without limitation, those set forth in Rockwell Medical's SEC filings), many of which are beyond our control and subject to change. Actual results could be materially different. Risks and uncertainties include but are not limited to those risks more fully discussed in the "Risk Factors" section of our Annual Report on Form 10-K for the year ended December 31, 2024, as such description may be amended or updated in any subsequent reports filed with the SEC. Rockwell Medical expressly disclaims any obligation to update our forward-looking statements, except as may be required by law. Financial Tables Follow ROCKWELL MEDICAL, INC. AND SUBSIDIARIES (In Thousands, Except Shares and Per Share Amounts) Three Months Ended March 31, 2025 Three Months Ended March 31, 2024 Net Sales $ 18,914 $ 22,676 Cost of Sales 15,872 19,612 Gross Profit 3,042 3,064 Research and Product Development - 18 Selling and Marketing 711 594 General and Administrative 3,691 3,776 Operating Income (Loss) (1,360 ) (1,324 ) Other (Expense) Income Realized Gain on Investments 56 - Interest Expense (277 ) (431 ) Interest Income 66 24 Total Other Expense (155 ) (407 ) Net Income (Loss) $ (1,515 ) $ (1,731 ) Basic Net Income (Loss) per Share $ (0.04 ) $ (0.06 ) Basic Weighted Average Shares Outstanding 34,107,640 29,327,204 Expand Reconciliation to GAAP Financial Measures (In Thousands, Except Shares and Per Share Amounts) Three Months Ended March 31 2025 2024 Net Income (Loss) $ (1,515 ) $ (1,731 ) Income taxes - - Other Expense, net 155 407 Depreciation and amortization 537 544 EBITDA (823 ) (780 ) Severance costs 48 - Stock-based compensation 445 251 Minnesota transition costs 39 - Deferred license revenue (325 ) - Triferic inventory write-off 178 - Adjusted EBITDA $ (439 ) $ (529 ) Adjusted EPS $ (0.01 ) $ (0.02 ) Basic Weighted Average Shares Outstanding 34,107,640 29,327,204 Expand
