10-K - ROCKWELL MEDICAL, INC. (0001041024) (Filer)

Thu, Mar 20, 11:03 AM (38 days ago)

**Rockwell Medical, Inc. (RMTI) Financial Summary** **Financial Performance (2024):** - **Revenue:** $101.5 million, up 21.4% from 2023. - **Net Income:** Loss of $480,000, an improvement from a loss of $8.44 million in 2023. - **Operating Income:** $608,000, a significant improvement from a loss of $6.67 million in 2023. - **Gross Profit:** $17.5 million, up 100.9% from 2023. - **Earnings per Share (EPS):** Loss of $0.03, improved from a loss of $0.37 in 2023. **Operating Expenses:** - **Cost of Sales:** $84.0 million, up 12.1% from 2023. - **Research and Development:** $19,000, down 98.3% from 2023. - **Selling and Marketing:** $2.7 million, up 29.4% from 2023. - **General and Administrative:** $14.1 million, up 16.2% from 2023. **Strategic Overview:** - **Market Position:** Leading supplier of liquid and dry, acid and bicarbonate concentrates for dialysis patients in the U.S. - **Product Portfolio:** Includes hemodialysis concentrates, dry acid concentrate mixers, and ancillary products. - **Manufacturing:** Facilities in Michigan, South Carolina, and Texas. - **Distribution:** Utilizes own delivery trucks and third-party carriers. **Future Outlook:** - **Growth Strategy:** Focus on hemodialysis concentrates business, reducing expenses, and identifying new products. - **Risk Factors:** Dependence on major customers like DaVita, regulatory compliance, economic conditions, and competition. - **Financial Condition:** $21.6 million in cash, cash equivalents, and investments available-for-sale; working capital of $22.9 million. **Market Position Changes:** - **DaVita:** Major customer, accounting for 45% of 2024 sales, expected to transition to another supplier by mid-2025. - **New Agreements:** Multi-year product purchase agreements with Fresenius, Nipro, HydroCare, Nephro Group Dialysis Centers, and others. **Risk Factors:** - **Customer Concentration:** Dependence on DaVita; loss could significantly impact revenue. - **Regulatory Compliance:** Extensive regulation by FDA and other authorities. - **Economic Conditions:** Vulnerability to economic downturns, inflation, and supply chain disruptions. - **Competition:** Major competitors include Fresenius and Nipro. **Financial Condition:** - **Cash and Investments:** $21.6 million in cash, cash equivalents, and investments available-for-sale. - **Working Capital:** $22.9 million. - **Debt:** $8.5 million in term loans, with interest-only payments until 2027 and maturity in 2029. **Conclusion:** Rockwell Medical, Inc. shows significant improvement in financial performance in 2024, with increased revenue and reduced losses. However, the company faces challenges due to dependence on major customers and regulatory compliance. The strategic focus on the hemodialysis concentrates business and new agreements with key partners indicate a positive outlook, but risks related to customer concentration and economic conditions remain.