Zynex Inc (ZYXI) 2022 Q4 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to the Zynex Fourth Quarter 2022 Earnings Conference Call. (Operator Instructions) 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.

女士們先生們，早上好，歡迎來到 Zynex 2022 年第四季度收益電話會議。 （操作員說明）請注意正在記錄此事件。我現在想將會議轉交給來自 Gilmartin Group 的 Louisa Smith。請繼續。

Thank you, Drew, and good morning, everyone. Earlier today, Zynex released financial results for the fourth quarter and year ending December 31, 2022. A copy of the press release is available on the company's website.

謝謝你，德魯，大家早上好。今天早些時候，Zynex 發布了截至2022年12月31日的第四季度和年度的財務業績。新聞稿的副本可在公司網站上獲取。

Joining me on today's call are Thomas Sandgaard, Chairman, President and Chief Executive Officer; Dan Moorhead, Chief Financial Officer; Anna Lucsok, Chief Operating Officer; and Donald Gregg, Vice President of Zynex Monitoring Solutions.

與我一起參加今天電話會議的還有董事長、總裁兼首席執行官 Thomas Sandgaard；首席財務官 Dan Moorhead； Anna Lucsok，首席運營官； Zynex Monitoring Solutions 副總裁 Donald Gregg。

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-Q, 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.

在我們開始之前，我想提醒您，在本次電話會議期間，公司將對未來事件做出預測和前瞻性陳述。我們鼓勵您查看公司過去和未來向美國證券交易委員會提交的文件，包括但不限於公司的 2021 年 10-K 表和隨後的 10-Q 表，這些文件確定了可能導致實際結果或事件與實際結果或事件產生重大差異的具體因素這些前瞻性陳述中描述的那些。這些因素可能包括但不限於關於產品開發、產品潛力、監管環境、銷售和營銷策略、資本資源或經營業績的陳述。

With that, I'll now turn the call over to Thomas.

有了這個，我現在將電話轉給托馬斯。

Thank you, Louisa, and good morning, everyone. Thank you for joining us today for the fourth quarter and full year 2022 earnings call.

謝謝你，路易莎，大家早上好。感謝您今天加入我們參加 2022 年第四季度和全年財報電話會議。

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. And -- 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 2 weeks, so we can announce earnings today.

在我們開始之前，我想談談這次財報電話會議的時間安排。正如你們中的許多人所注意到的，我們比往常晚一點宣布全年收益。我們通常在 2 月的最後一周宣布。而且 - 然而，由於我們今年有一家新的審計公司，我們決定在三月的第一周多給它一周時間。我們最終需要 2 週的時間，所以我們今天可以公佈收益。

I want to thank not only Marcum, but also the staff involved here at Zynex 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 is no change to our -- in our preliminary financial results that we reported in January.

我不僅要感謝 Marcum，還要感謝 Zynex 的所有工作人員，感謝他們為完成年終結算所做的辛勤工作和長時間的工作。和往常一樣，我們仍然能夠提前宣布。我還應該指出，我們在 1 月份報告的初步財務結果沒有變化。

So we are pleased to report another quarter of record results for Zynex. We posted new record highs for both orders and revenue in Q4 and have delivered 4 straight quarters of revenue and order growth. We ended 2022 with our 7th straight year of profitability.

因此，我們很高興地報告 Zynex 又一個季度的創紀錄業績。我們在第 4 季度的訂單和收入均創下歷史新高，並實現了連續 4 個季度的收入和訂單增長。到 2022 年，我們連續第 7 年實現盈利。

Total revenue for the quarter was $48.8 million, a 21% increase over the same period in 2021. Diluted earnings per share were $0.20, and adjusted EBITDA was $11.4 million for the quarter.

本季度總收入為 4880 萬美元，比 2021 年同期增長 21%。本季度稀釋後每股收益為 0.20 美元，調整後的 EBITDA 為 1140 萬美元。

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.

通過提高銷售代表的工作效率，同時保持健康的底線以支持我們監控部門的重要業務發展，我們為我們看到的頂線增長感到自豪。我們在第四季度收到了公司歷史上最高數量的處方，超過了我們之前在 2022 年第二和第三季度達到的里程碑。

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 remained 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.

我們正在展示強勁的增長勢頭，這一勢頭並未減弱，這表明我們的銷售團隊正在提高生產力，並獲得越來越多的積極開處方者使用我們的產品。收入和盈利能力依然強勁。我們銷售人員的生產力使 2021 年第四季度的訂單增長了 48%，第三季度的訂單增長了 11%。

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 on our strong performance and anticipate hitting both top and bottom line guidance for the full year with 2023 estimates of revenue between $180 million and $200 million and earnings per share between $0.40 and $0.50.

截至目前，我們第一季度的進度已超過 80%，我們可以看到我們的訂單增長將遠高於 50%。因此，我們的訂單增長目前顯然正在加速。我們仍然對我們的強勁表現充滿信心，並預計將達到全年的頂線和底線指引，預計 2023 年收入在 1.8 億美元至 2 億美元之間，每股收益在 0.40 美元至 0.50 美元之間。

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.

今年早些時候，我們完成了第三次 1000 萬美元的股票回購，我們強烈認為這些回購強調了管理層對我們團隊的表現以及未來幾年疼痛管理和監測部門的增長潛力的信心。我們仍然致力於為股東創造價值，並且在過去一年中迄今已花費 3000 萬美元回購股票。

ZMS or Zynex 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 the blood loss detection clinical trial for the CM-1600. And pending FDA's clearance of the device, we'll announce our commercialization.

ZMS 或 Zynex Monitoring Solutions 擁有一支非常強大的團隊，正致力於將血液和體液監測儀、膿毒症早期檢測設備和我們基於激光的脈搏血氧儀推向市場。今年早些時候，我們宣布了 CM-1600 失血檢測臨床試驗的首次入組。在等待 FDA 對該設備的批准之前，我們將宣布我們的商業化。

As you may recall, our first generation CM-1500 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 ZMS division. Our laser-based pulse oximetry 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.

您可能還記得，我們的第一代 CM-1500 已獲得 FDA 批准。請注意，儘管該部門正在取得進展，我們的收入指導和 2023 年的增長率，我們不打算從 ZMS 部門獲得任何有意義的收入。在一年多前收購 Kestrel Labs 之後，我們基於激光的脈搏血氧儀仍處於開發階段。但是我們的團隊在第二代產品的原型製作方面取得了重要進展。

I'd also like to mention some of the recent acknowledgment Zynex 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 #11 in the list of American's best small companies, including us taking the honor of #1 in the health care 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.

我還想提一下 Zynex 最近收到的一些認可。在過去的幾個月裡，我們的快速增長和強勁表現得到了包括福布斯和德勤在內的許多組織的認可。福布斯將我們列為美國最佳小公司名單中的第 11 位，其中我們在醫療保健設備和服務行業中排名第一。我們為這些榮譽感到非常自豪，並相信它們凸顯了我們對發展業務以及為我們的患者和股東提供價值的奉獻精神和承諾。

Zynex 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 diverse our business into compelling market opportunities. Between the game-changing innovation occurring in our monitoring division and the strong team that is executing in pain management, I'm excited to see the realization of our growth plans in the quarters to come.

Zynex 通過高效的商業模式提供一致的結果，繼續滿足我們的指導預期。我們在關鍵舉措方面取得了相當大的進展，這些舉措將擴大我們的商業銷售組織，並將我們的業務多元化，以抓住引人注目的市場機會。在我們監控部門發生的改變遊戲規則的創新和在疼痛管理方面執行的強大團隊之間，我很高興看到我們在未來幾個季度實現增長計劃。

With that, I will now turn the call over to Anna Lucsok, our Chief Operating Officer, for a more detailed business update on the pain management division.

有了這個，我現在將把電話轉給我們的首席運營官 Anna Lucsok，以獲取有關疼痛管理部門的更詳細的業務更新。

Thank you. As Thomas described, pain management is consistently growing both from a revenue perspective and with order volumes. We're just scratching the surface as growth potential and have the opportunity to expand into a significant number of additional territories.

謝謝。正如 Thomas 所描述的，從收入角度和訂單量來看，疼痛管理一直在增長。我們只是觸及增長潛力的表面，並有機會擴展到大量其他地區。

We remain committed to filling all 800 sales territories to achieve optimum market penetration. However, as we've noted previously, we're still able to maintain healthy growth rates and bottom line profitability without the dependence on these additional territories.

我們仍然致力於填補所有 800 個銷售區域，以實現最佳的市場滲透。然而，正如我們之前所指出的，我們仍然能夠在不依賴這些額外地區的情況下保持健康的增長率和底線盈利能力。

We ended 2022 with approximately 450 sales reps. And our full year annual revenue per rep was approximately $400,000. We have seen a steady increase in the quality of applicants and performance of new hires over the last several months. Productivity remains at an all-time high. And revenue per rep in 2022 grew 31% over 2021, and fourth quarter grew 17% over the prior year.

到 2022 年底，我們擁有大約 450 名銷售代表。我們全年每個銷售代表的年收入約為 400,000 美元。在過去的幾個月裡，我們看到求職者的質量和新員工的表現都在穩步提高。生產率保持在歷史最高水平。 2022 年每個代表的收入比 2021 年增長 31%，第四季度比上年增長 17%。

Efficiency is a critical metric and recent improvement to operational performance. So we're closely monitoring mechanisms to optimize it. We continue to expand the regional sales lead layer within our sales force responsible for training new hires and monitoring performance of their (inaudible) sales reps. Each regional sales lead currently oversees an average of 8 sales reps. Through consistent oversight and targeted performance management, this layer continues to drive increased productivity of new hires and identify underperformers early on.

效率是一個關鍵指標，也是最近對運營績效的改進。因此，我們正在密切監控優化它的機制。我們繼續在我們的銷售隊伍中擴大區域銷售領導層，負責培訓新員工並監控他們（聽不清）銷售代表的表現。每個區域銷售主管目前平均監督 8 名銷售代表。通過一致的監督和有針對性的績效管理，這一層繼續推動新員工的生產力提高，並及早發現表現不佳的人。

We're still seeing some lingering challenges as it relates to the macro environment, particularly with inflationary pressures. Corporate employee wages and sales rep compensation has increased as a result. But in order to maintain the efficiency I've just described, we're committed to recruiting and retaining a high-quality sales and corporate team.

我們仍然看到一些與宏觀環境相關的揮之不去的挑戰，尤其是在通脹壓力方面。公司員工工資和銷售代表薪酬因此增加。但為了保持我剛才描述的效率，我們致力於招聘和留住一支高素質的銷售和企業團隊。

We continue to work with all payer types. And currently, our largest volume of orders come from commercial insurances followed by workers' compensation, TRICARE and Medicare. Again, we want to emphasize that Zynex takes all orders. And we work with all patients and their insurance companies to process coverage in all cases.

我們繼續與所有付款人類型合作。目前，我們最大的訂單量來自商業保險，其次是工傷賠償、TRICARE 和 Medicare。再次強調，Zynex 接受所有訂單。我們與所有患者及其保險公司合作，處理所有情況下的承保範圍。

We are accredited through accreditation commission for health care. And we go through regular audits to confirm our policies, processes and care delivery standards meet Centers for Medicare and Medicaid Services and other official regulatory requirements. Zynex prides itself in the commitment to quality and integrity as well as the value we provide to all of our patients.

我們通過醫療保健認證委員會獲得認證。我們會定期進行審計，以確認我們的政策、流程和護理提供標準符合醫療保險和醫療補助服務中心以及其他官方監管要求。 Zynex 以對質量和誠信的承諾以及我們為所有患者提供的價值而自豪。

I'll now ask Don Gregg, Vice President of Zynex Monitoring Solutions, to speak to the business updates related to that division.

我現在請 Zynex Monitoring Solutions 副總裁 Don Gregg 談談與該部門相關的業務更新。

Thank you, Anna. ZMS has a strategic product portfolio and development pipeline that includes hemodynamic monitoring, sepsis monitoring and laser-based pulse oximetry. We believe that the addressable market for these products is approximately $4 billion, and we are working towards regulatory milestones of several products over the next several quarters.

謝謝你，安娜。 ZMS 擁有戰略產品組合和開發管道，包括血液動力學監測、膿毒症監測和基於激光的脈搏血氧儀。我們相信這些產品的潛在市場約為 40 億美元，我們正在努力在未來幾個季度內實現多個產品的監管里程碑。

Additionally, we recently announced the expansion of ZMS into a larger facility needed for our offices, lab and production space. Our headcount has increased by 94% over the last 12 months, and the division has advanced considerably throughout 2022. I'm excited about what the coming year will bring in terms of progress towards commercialization and future developments.

此外，我們最近宣布將 ZMS 擴展到我們的辦公室、實驗室和生產空間所需的更大設施中。在過去 12 個月中，我們的員工人數增加了 94%，該部門在整個 2022 年取得了長足進步。我對來年在商業化和未來發展方面取得的進展感到興奮。

The 2 product lines within the Monitoring division are the NiCO CO-Oximeter and HemeOx pulse oximeters built on a similar technology, the CM-1600 blood and fluid monitor. As a reminder to our audience about the technical and clinical benefits of these products, the NiCO or what's also known as the noninvasive co-oximeter is a laser-based pulse oximeter that is on track for 510(k) submission to the FDA this year. HemeOx is a hemoglobin oximeter. Both products utilize laser technology and will be used in hospital systems as an alternative to legacy devices.

監測部門的 2 條產品線是基於類似技術 CM-1600 血液和體液監測儀的 NiCO CO-血氧儀和 HemeOx 脈搏血氧儀。為了提醒我們的聽眾這些產品的技術和臨床優勢，NiCO 或也稱為無創共同血氧儀是一種基於激光的脈搏血氧儀，有望在今年向 FDA 提交 510(k) . HemeOx 是一种血紅蛋白血氧儀。這兩種產品均採用激光技術，將作為傳統設備的替代品用於醫院系統。

The laser technology as opposed to LED systems has been found to produce more accurate readings across the diverse patient populations as there is not pigmentary bias based on skin tone. We demonstrated the NiCO prototype at the American Society of Anesthesiologists in October with excellent feedback and are planning several clinical studies throughout the 2023 year to be led by a new clinical research manager, among other key personnel we are bringing on this year for engineering and software development.

與 LED 系統相反，激光技術被發現可以在不同的患者群體中產生更準確的讀數，因為不存在基於膚色的色素偏差。我們於 10 月在美國麻醉醫師協會展示了 NiCO 原型並獲得了極好的反饋，併計劃在 2023 年內開展多項臨床研究，由新的臨床研究經理領導，以及我們今年為工程和軟件引入的其他關鍵人員發展。

Alternatively, the other product within ZMS is the CM-1600, our hemodynamic monitor. The CM-1600 is a noninvasive wireless blood and fluid monitor also to be used in a hospital setting. This is the next-generation device of the CM-1500, which is already cleared previously -- previously cleared by the FDA but with added wireless capability.

另外，ZMS 的另一款產品是 CM-1600，我們的血液動力學監測儀。 CM-1600 是一款無創無線血液和體液監測儀，也可用於醫院環境。這是 CM-1500 的下一代設備，之前已經通過了 FDA 的批准，但增加了無線功能。

We've submitted the CM-1600 to the FDA and are awaiting any further guidance on testing or additional data requirements before we'll begin to commercialize the device. We have a series of completed and ongoing studies as it relates to blood loss detection with approximately 500 participants throughout the United States.

我們已將 CM-1600 提交給 FDA，並在開始將該設備商業化之前等待有關測試或其他數據要求的任何進一步指導。我們有一系列已完成和正在進行的研究，因為它涉及全美國約 500 名參與者的失血檢測。

Additionally, we recently announced a research collaboration with Vitalant, the nation's largest independent nonprofit blood services provider. We've partnered with them to take part in our IRB-approved blood loss detection clinical trial measuring the specificity and sensitivity of the CM-1600's patented relative index.

此外，我們最近宣布與美國最大的獨立非營利性血液服務提供商 Vitalant 開展研究合作。我們已與他們合作，參與我們經 IRB 批准的失血檢測臨床試驗，以測量 CM-1600 專利相對指數的特異性和敏感性。

We are planning to publish results from our 5 or more clinical trials throughout 2023, a testament to the confidence we have in the relevance of this product. I'm thrilled by the progress we've made in the Monitoring division and am eagerly anticipating the opportunity to capitalize on the unique market opportunity through this new disruptive technology.

我們計劃在整個 2023 年公佈 5 項或更多臨床試驗的結果，這證明了我們對該產品的相關性充滿信心。我對我們在監控部門取得的進展感到興奮，並熱切期待有機會通過這種新的顛覆性技術利用獨特的市場機會。

I will now turn this call over to Dan Moorhead, Chief Financial Officer, for a more in-depth look at financial performance for the fourth quarter and full year 2022.

我現在將把這個電話轉給首席財務官 Dan Moorhead，以更深入地了解第四季度和 2022 年全年的財務業績。

Thanks, Don. Please refer to our press release issued earlier today for a summary of our financial results for the fourth quarter and full year of 2022.

謝謝，唐。請參閱我們今天早些時候發布的新聞稿，了解我們 2022 年第四季度和全年的財務業績摘要。

First, I'll review the fourth quarter. Orders grew 48% year-over-year, and net revenue grew 21% to $48.8 million from $40.4 million in 2021. Device revenue increased 19% to $15.9 million compared to $13.3 million in the fourth quarter of last year. Supplies revenue increased 22% year-over-year to $32.9 million from $27 million.

首先，我將回顧第四季度。訂單同比增長 48%，淨收入從 2021 年的 4040 萬美元增長 21% 至 4880 萬美元。設備收入增長 19% 至 1590 萬美元，而去年第四季度為 1330 萬美元。供應收入同比增長 22%，從 2700 萬美元增至 3290 萬美元。

Gross margins were 81% in the fourth quarter. Sales and marketing expenses were $19.2 million in the fourth quarter of 2022 compared to $13.6 million in the same period in 2021.

第四季度的毛利率為 81%。 2022 年第四季度的銷售和營銷費用為 1920 萬美元，而 2021 年同期為 1360 萬美元。

G&A expenses were $10.1 million in the fourth quarter of 2022, compared to $7.8 million last year. Approximately 25% of the increase in G&A is related to investments in our Monitoring Solutions division and related headcount to launch our new products. As a reminder -- the remainder is primarily for back-office headcount and related order growth.

2022 年第四季度的 G&A 費用為 1010 萬美元，而去年為 780 萬美元。 G&A 增加的大約 25% 與我們的監控解決方案部門和相關人員的投資有關，以推出我們的新產品。提醒一下——其餘部分主要用於後台員工人數和相關訂單增長。

Tax expense as a percent was 23% for the quarter. Net income was $7.5 million and produced $0.20 per diluted share in the fourth quarter of 2022. Adjusted EBITDA was $11.4 million.

本季度的稅收支出百分比為 23%。 2022 年第四季度淨收入為 750 萬美元，攤薄後每股收益為 0.20 美元。調整後的 EBITDA 為 1140 萬美元。

For the full year, orders grew 23%, and net revenue grew 21% to $158.2 million from $130.3 million in 2021. Device revenue increased 19% to $43.5 million compared to $36.6 million last year. Supplies revenue increased 22% year-over-year to $114.7 million from $93.7 million.

全年訂單增長 23%，淨收入從 2021 年的 1.303 億美元增長 21% 至 1.582 億美元。設備收入增長 19% 至 4350 萬美元，而去年為 3660 萬美元。供應收入同比增長 22%，從 9370 萬美元增至 1.147 億美元。

Gross margin for the full year was 80% compared to 79% last year. Sales and marketing expenses grew 24% year-over-year to $67.1 million. G&A expense grew 37% year-over-year to $36.1 million. [4.6] or almost half of that increase is related to investments in the Monitoring Solutions division. Tax expense was 23% for the full year.

全年毛利率為 80%，而去年為 79%。銷售和營銷費用同比增長 24% 至 6710 萬美元。 G&A 費用同比增長 37% 至 3610 萬美元。 [4.6] 或幾乎一半的增長與對監控解決方案部門的投資有關。全年的稅收支出為 23%。

Net income was $17 million and produced $0.44 per diluted share in 2022 compared to net income of $17.1 million and the same $0.44 per diluted share in 2021. Adjusted EBITDA increased 5% to $28.1 million in 2022.

2022 年淨收入為 1700 萬美元，攤薄後每股收益為 0.44 美元，而 2021 年的淨收入為 1710 萬美元，攤薄後每股收益為 0.44 美元。2022 年調整後的 EBITDA 增長 5% 至 2810 萬美元。

And finally, we ended the year with $20.1 million in cash. Cash from operations increased 98% during 2022, which allowed us to initiate our third $10 million stock buyback, pay a cash dividend and pay down our debt related to the Kestrel acquisition by $5 million.

最後，我們以 2010 萬美元的現金結束了這一年。 2022 年，來自運營的現金增加了 98%，這使我們能夠啟動第三次 1000 萬美元的股票回購，支付現金股息並償還與 Kestrel 收購相關的 500 萬美元債務。

With that, I'll turn it back over to Thomas.

有了這個，我會把它轉回給托馬斯。

Thank you, Dan. As for our 2023 outlook, we expect total revenue to be in the range of $180 million to $200 million, representing growth approximately 21% over 2022 and diluted earnings per share of approximately $0.40 to $0.50 a share.

謝謝你，丹。至於我們的 2023 年展望，我們預計總收入將在 1.8 億美元至 2 億美元之間，比 2022 年增長約 21%，攤薄後每股收益約為 0.40 至 0.50 美元。

For the first quarter of 2023, we expect total revenue to be in the range of $39 million to $41 million with adjusted earnings per share of $0.00 to $0.03.

對於 2023 年第一季度，我們預計總收入將在 3900 萬美元至 4100 萬美元之間，調整後每股收益為 0.00 美元至 0.03 美元。

With that, operator, please open the call up for questions.

有了這個，接線員，請打開電話詢問問題。

(Operator Instructions) The first question comes from Jeffrey Cohen with Ladenburg Thalmann.

（操作員說明）第一個問題來自 Jeffrey Cohen 和 Ladenburg Thalmann。

So just to recap, so what was the main issue with the timing and the auditor? Was there one main issue? Or was it just a timing issue on a number of items.

回顧一下，時間安排和審計師的主要問題是什麼？有一個主要問題嗎？或者這只是一些項目的時間問題。

No, I would say it was simply a matter of the -- Marcum is new. We have work with Plante Moran for the past 6 years. They're no longer working with any publicly traded companies. And Marcum has done a great job throughout the year. We underestimated how long it's going to take to close the full year and very, very early announced when we expected to have the earnings call. We had to extend that a little bit. That's really all there is to it.

不，我會說這只是一個問題——Marcum 是新來的。在過去的 6 年裡，我們一直與 Plante Moran 合作。他們不再與任何上市公司合作。 Marcum 全年都做得很好。我們低估了結束全年所需的時間，並且非常非常早地宣布了我們預計召開財報電話會議的時間。我們不得不稍微擴展一下。僅此而已。

Okay. And what about the K, Thomas? When should we expect that to hit?

好的。那麼 K 呢，Thomas？我們應該期望它什麼時候出現？

Should hit if not today, in the next day or 2.

如果不是今天，應該會在第二天或第二天命中。

Okay. Got it. And now that you're through a good portion of Q1, the outlook I heard was sales reps up to 800 aspirationally, but how does that look from your estimation to unfold throughout 2023?

好的。知道了。現在您已經度過了第一季度的大部分時間，我聽到的前景是銷售代表希望達到 800 人，但從您的估計來看，這在整個 2023 年會如何發展？

I think we've talked about sales reps in the kind of mid-500s. So adding approximately 100 during the year net.

我想我們已經討論過 500 多歲的銷售代表。因此，年內淨增加約 100 個。

Okay. Got it. And some of the Q4 spend that you're showing related to some of the other divisions that are not yet commercial, you expect them to be commercial this year. So we should see some pull-through in spend. I guess I'm referring to the 1600 predominantly, and it sounds like the NiCO, which will file a 510(k) this year.

好的。知道了。你展示的一些第四季度支出與其他一些尚未商業化的部門有關，你預計它們今年會商業化。因此，我們應該會看到一些支出。我想我主要指的是 1600，它聽起來像 NiCO，它將在今年提交 510(k)。

There's going to be spend on both. I think you're going to see a lot of -- that's why we give a range. Some of the things as we get closer to launch could have some additional expenses. And as the pulse ox side gets submitted to the FDA, we may see some additional expenses there as well. So I think there's a little bit of a range there of what we spend and just how quickly we get to submission and commercialization.

兩者都要花錢。我想你會看到很多——這就是我們給出範圍的原因。隨著我們越來越接近發布，一些事情可能會有一些額外的費用。隨著脈搏牛方被提交給 FDA，我們可能還會在那裡看到一些額外的費用。所以我認為我們花的錢和我們提交和商業化的速度有一些不同。

Okay. Got it. And then lastly, as far as FDA inspections related to some of these other divisions, do you have -- have you had any over the past quarter or so? And what's expected over the coming quarter or so?

好的。知道了。最後，就 FDA 對其他一些部門的檢查而言，您在過去一個季度左右有過嗎？未來一個季度左右的預期是什麼？

So this is Don from Zynex from the Monitoring division. We've had a previous FDA inspection, certainly not over the last quarter. But it was all part of a ZMI or Zynex Medical and Zynex Monitoring Inspection, which we passed without any issues.

我是監控部門 Zynex 的 Don。我們之前進行過 FDA 檢查，當然不是在上個季度。但這都是 ZMI 或 Zynex Medical 和 Zynex 監測檢查的一部分，我們順利通過了檢查。

Okay. And you would expect further inspections on some of the newer divisions prior to or related to our commercial launch?

好的。您是否希望在我們的商業發布之前或相關期間對一些較新的部門進行進一步檢查？

No, there shouldn't be any -- those inspections are not based on what's happening on the product side. Inspections of the company on a -- I wouldn't say on a regular basis, but we tend to see those in -- with intervals of less than 5 years. And the product approvals, it's a whole different scenario through the FDA. So that's independent.

不，不應該有任何——這些檢查不是基於產品方面發生的事情。對公司的檢查——我不會說是定期檢查，但我們傾向於看到——間隔時間少於 5 年。而產品批准，這是通過 FDA 的完全不同的情況。所以這是獨立的。

Okay. Got it. And then could you talk about adjusted EBITDA for full year '23? It looks like you're expecting a similar type of growth cadence and trajectory as you had in '22. On an adjustment basis, Dan, do you see that? It looks like you're coming in around where you're over 20% for the fourth quarter, but you averaged about high teens, 17%, 18% for the full year. Any thoughts there on '23?

好的。知道了。然後你能談談 23 年全年調整後的 EBITDA 嗎？看起來您正在期待與 22 年類似的增長節奏和軌跡。在調整的基礎上，丹，你看到了嗎？看起來你在第四季度達到了 20% 以上，但全年平均為 17%、18% 左右。對'23有什麼想法嗎？

Yes. No, I think we were guiding more towards EPS this year and pushing away from adjusted EBITDA a little bit. But I think, generally, when you look at the year, you should see similar growth in '23 to what we saw in '22.

是的。不，我認為我們今年更多地指導每股收益，並稍微遠離調整後的 EBITDA。但我認為，總的來說，當你回顧這一年時，你應該會看到 23 年的增長與 22 年的增長相似。

The next question comes from Simran Kaur with Piper Sandler.

下一個問題來自 Simran Kaur 和 Piper Sandler。

This is Simran on for Adam. Congrats on the print. Maybe just starting off on the full year guidance of $180 million to $200 million. Can you walk us through key assumptions at the low end and high end of the range? And specifically, what is assumed for the core pain franchise versus ZMS?

這是亞當的西姆蘭。恭喜印刷。也許剛剛開始 1.8 億至 2 億美元的全年指導。您能否為我們介紹範圍低端和高端的關鍵假設？具體來說，核心疼痛專營權與 ZMS 的假設是什麼？

Yes, maybe I'll take that one. We basically -- even though there might be a little bit of revenue in ZMS this year, in our guidance, we're not accounting for any of that. So that's all the pain management division.

是的，也許我會拿那個。我們基本上 - 儘管今年 ZMS 可能會有一點收入，但在我們的指導中，我們沒有考慮任何這些。這就是所有的疼痛管理部門。

And obviously, the order growth we are seeing now is going to result in increased revenue over the next several years. And some of that is obviously going to hit here in the next couple of quarters.

顯然，我們現在看到的訂單增長將導致未來幾年收入增加。其中一些顯然會在接下來的幾個季度中出現。

And the assumptions assume that as Dan mentioned earlier that by the end of the year, we can get up to around 550 sales reps. So there will be an increase in sales reps in itself is not that productive initially. So that's going to be part of increasing our fixed expenses.

這些假設假設，正如 Dan 之前提到的那樣，到今年年底，我們最多可以擁有 550 名左右的銷售代表。因此，銷售代表數量的增加本身並沒有那麼多產。所以這將成為增加我們固定開支的一部分。

But our existing sales reps are experiencing high growth right now. And as they continue to become more and more productive, we expect that to turn into revenue in the $180 million to $200 million range.

但我們現有的銷售代表目前正在經歷高速增長。隨著他們的生產力不斷提高，我們預計這將轉化為 1.8 億至 2 億美元的收入。

And what would determine if we are in the low end of the range versus in the high end of the range would probably be the productivity of the existing reps more than anything. We have a very stable scenario when it comes to how we collect the cash, which is payments from health insurance companies.

決定我們是處於範圍的低端還是處於範圍的高端的因素可能是現有代表的工作效率比什麼都重要。關於我們如何收取現金，即從健康保險公司支付的款項，我們有一個非常穩定的方案。

And that is obviously based on preset amounts and preset quantities and preset length of treatment that is determined by insurance companies. And we don't really foresee any changes.

這顯然是基於保險公司確定的預設金額和預設數量以及預設治療時間。我們並沒有真正預見到任何變化。

So productivity and from a better mix of insurance could also help us a little bit in terms of moving the revenue up. But we're still somewhat dependent on the labor market in terms of new hires for our sales force as well as employees for our corporate headquarters here in Colorado. I don't know if you have anything to add, Anna?

因此，生產力和更好的保險組合也可以幫助我們提高收入。但就銷售人員的新員工以及科羅拉多州公司總部的員工而言，我們仍然在一定程度上依賴勞動力市場。我不知道你有什麼要補充的嗎，安娜？

To the productivity of sales reps?

對銷售代表的生產力？

Yes.

是的。

We've seen an increase in productivity of our sales reps, obviously, throughout the end of 2022 and then especially the first 2 months of 2023. And we are seeing them focus more on payer mix, insurance mix and driving that forward.

很明顯，我們的銷售代表的生產力在整個 2022 年底都有所提高，尤其是 2023 年前兩個月。我們看到他們更加關注付款人組合、保險組合併推動這一點。

Okay. Great. No, that was perfect. I guess for my follow-up here, I just wanted to circle back on the P&L and specifically how we should think about the cadence of OpEx spend through the year. And really, I'm trying to kind of hone in on what is assumed when you layer the impact of the ZMS build.

好的。偉大的。不，那是完美的。我想對於我在這裡的後續行動，我只是想回到損益表，特別是我們應該如何考慮全年運營支出的節奏。實際上，我正在嘗試深入了解當您對 ZMS 構建的影響進行分層時的假設。

Last year, we've talked about kind of what we do with ZMS, and ZMS increased about $5 million in '22. I think we spent about $7.5 million. We see a similar increase in 2023, so about another $5 million. Some of that is new hires, and some of it is just exit rate versus what we started the year at.

去年，我們談到了我們用 ZMS 做的事情，ZMS 在 22 年增加了大約 500 萬美元。我想我們花了大約 750 萬美元。我們看到 2023 年會有類似的增長，因此大約再增加 500 萬美元。其中一些是新員工，其中一些只是退出率與我們年初的情況相比。

So you'll see that layered into G&A over the course of the year. This year, we ended G&A at 23% of revenue. I think with the investments in ZMS and generally just inflation that continues to hit us pretty good. I think that stays pretty constant in 2023.

所以你會在一年中看到它分層到 G&A 中。今年，我們以 23% 的收入結束了 G&A。我認為通過對 ZMS 的投資以及通貨膨脹繼續對我們造成的影響非常好。我認為這在 2023 年會保持不變。

Same on the sales side. This year, we were at about 42%. I think it's fairly similar next year. Obviously, it depends how many people we hire and then where we end up on the top line. But with inflation and the number of people we expect to add this year, I think those percents of revenue are going to stay fairly constant.

銷售端也一樣。今年，我們的比例約為 42%。我認為明年情況非常相似。顯然，這取決於我們僱用了多少人，以及我們最終在頂線的位置。但考慮到通貨膨脹和我們今年預計增加的人數，我認為這些收入百分比將保持相當穩定。

Okay. Perfect. No, that was great, Dan. And maybe a quick one on capital deployment. So you guys completed about $30 million in stock buybacks last year. So how should we think about capital allocation this year and specifically stock buyback?

好的。完美的。不，那太好了，丹。也許是關於資本部署的快速報告。所以你們去年完成了大約 3000 萬美元的股票回購。那麼我們應該如何考慮今年的資本配置，特別是股票回購呢？

I think it's still on the table. We'll still continue to do that. We're still generating cash from operations. So we do still have excess cash in the business, and so that's still something that we'll consider. We're always going to look at what provides shareholder value and for us, and we believe for all of our shareholders, that provides pretty good value.

我認為它仍然在桌面上。我們仍將繼續這樣做。我們仍在從運營中產生現金。所以我們在業務中仍然有多餘的現金，所以這仍然是我們會考慮的事情。我們總是會看看是什麼為股東提供了價值，對我們來說，我們相信對我們所有的股東來說，這提供了相當好的價值。

The next question comes from Yi Chen with H.C. Wainwright.

下一個問題來自陳奕和H.C.溫賴特。

Just to clarify, does the FDA need to inspect the manufacturing facility of CM-1600 before guaranteeing the 510(k) clearance?

澄清一下，在保證 510(k) 許可之前，FDA 是否需要檢查 CM-1600 的製造設施？

Not specifically. As I mentioned before, it's just a matter of when they routinely come to audit and inspect our facilities as part of -- and taking on cGMP, et cetera. So it -- they don't come out. They look at the thing to look at last time. They always have some comments to various areas and suggesting the things we can improve.

不具體。正如我之前提到的，這只是他們何時定期來審計和檢查我們的設施的問題——並接受 cGMP 等。所以它 - 他們不出來。他們看上次要看的東西。他們總是對各個領域提出一些意見，並建議我們可以改進的地方。

They'll come out, the first thing to do is to check on that. It could be that there was a paragraph missing in a quality manual or something like that. They'll check on all those things. And then they'll just randomly inspect various areas.

他們會出來的，要做的第一件事就是檢查一下。可能是質量手冊或類似內容中缺少一段。他們會檢查所有這些事情。然後他們會隨機檢查各個區域。

And as we keep adding more products as for instance, the CM-1600, there will be more parts of the company for them to look at. So in recent audits with them, it has taken a lot less time than they have planned, and they're only out here for a few days. And as we continue to grow our business, the time it takes them to complete an audit will most likely increase. But again, it's not specifically tied to when we get the clearance for a specific device.

隨著我們不斷添加更多產品，例如 CM-1600，公司將有更多的部分供他們查看。所以在最近對他們的審計中，花費的時間比他們計劃的要少得多，而且他們只在這里呆了幾天。隨著我們業務的不斷發展，他們完成審計所需的時間很可能會增加。但同樣，它與我們何時獲得特定設備的許可並沒有特別相關。

Okay. And has recent communication with the FDA indicate that clearance could occur in first half of this year or second half of this year?

好的。最近與 FDA 的溝通是否表明批准可能在今年上半年或今年下半年進行？

Yes, this is Don. We've been in contact with the FDA on a continuous basis. They've requested information at various times. We're still in that communication. I'm expecting that we may have this in the first half of this year, but it might be early of the second half. It just depends on the type of information that the FDA continues to ask for.

是的，這是唐。我們一直在與 FDA 保持聯繫。他們在不同時間要求提供信息。我們仍在溝通中。我預計我們可能會在今年上半年有這個，但可能會在下半年早些時候。這僅取決於 FDA 繼續要求的信息類型。

Got it. Got it. Lastly, given the growth momentum of orders you've seen so far in the first quarter and also the status of the labor market, are you likely to speed up hiring new reps? Or do you think you will likely maintain the current pace of hiring?

知道了。知道了。最後，考慮到第一季度迄今為止訂單的增長勢頭以及勞動力市場的狀況，您是否有可能加快招聘新銷售代表的速度？或者您認為您可能會保持目前的招聘速度？

I would say we are -- we continue to be more and more critical in terms of the quality of the talent we hire. We have increased our efforts because it is a difficult market. So we've increased the funnel, if you want to put it that way, but also increased how critical we are in terms of who we hire.

我想說的是——我們在招聘人才的質量方面繼續變得越來越挑剔。我們加大了努力，因為這是一個困難的市場。所以我們增加了漏斗，如果你想這樣說的話，但也增加了我們在僱用誰方面的重要性。

That is a significant part of how we've seen productivity per sales rep increase here in the past many months is that we continue to be more and more critical. So I think we'll net-net unless something changes in the labor market, we'll continue to hire at about the same pace. So adding a net of approximately up to 10 reps every month throughout the year.

在過去的幾個月裡，我們在這裡看到每個銷售代表的生產率提高的一個重要部分是我們繼續變得越來越挑剔。因此，我認為除非勞動力市場發生變化，否則我們將淨增，我們將繼續以大致相同的速度招聘。因此，全年每個月淨增加大約 10 次重複。

And of course, we're hoping that -- we're still hopeful that the labor market will look better going forward. It's still very tight.

當然，我們希望——我們仍然希望勞動力市場在未來看起來會更好。它仍然很緊。

This concludes our question-and-answer session. I would like to turn the conference back over to Thomas Sandgaard for any closing remarks.

我們的問答環節到此結束。我想將會議轉回 Thomas Sandgaard 的閉幕詞。

Well, thank you for joining us today. We're encouraged by the momentum we have coming out of yet another record year for Zynex. And we are excited about several upcoming regulatory submissions and operational milestones. We expect 2023 to be another transformational year for the company, and I appreciate your interest in Zynex. Have a great day.

好吧，謝謝你今天加入我們。我們對 Zynex 又創紀錄的一年所取得的勢頭感到鼓舞。我們對即將到來的幾項監管提交和運營里程碑感到興奮。我們預計 2023 年將是公司轉型的又一年，感謝您對 Zynex 的關注。祝你有美好的一天。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連接。