• Net Sales: $25.8 million for Q2 2024, a 14% increase over Q1 2024 and a 43% increase over Q2 2023.

• Gross Profit: $4.6 million for Q2 2024, a 48% increase over Q1 2024 and a 341% increase over Q2 2023.

• Gross Margin: 18% for Q2 2024, up from 6% in Q2 2023.

• Net Income: $300,000 for Q2 2024, compared to a net loss of $3.3 million in Q2 2023.

• Adjusted EBITDA: Positive $1.5 million for Q2 2024, compared to negative $2.3 million in Q2 2023.

• Cash Balance: $11.9 million as of June 30, 2024, up from $8.6 million at the end of Q1 2024.

• Cash Flow from Operations: $1.4 million for Q2 2024.

• 2024 Net Sales Guidance: Increased to $95 million - $98 million from $90 million - $94 million.

• 2024 Gross Profit Guidance: Increased to $14 million - $16 million from $13 million - $15 million.

• 2024 Gross Margin Guidance: Top end increased to 17% from 16%.

• 2024 Adjusted EBITDA Guidance: Increased to $0.75 million - $1.5 million from $0.5 million - $1 million.

• Warning! GuruFocus has detected 4 Warning Signs with RMTI.

Release Date: August 08, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Rockwell Medical Inc (NASDAQ:RMTI) achieved profitability on a cash flow and adjusted EBITDA basis for the first time in recent memory during the second quarter of 2024.

• Net sales for the second quarter of 2024 were $25.8 million, marking the highest quarterly concentrate product sales to date for the company.

• The company reported a gross profit of $4.6 million and an 18% gross margin for the second quarter of 2024, exceeding their full-year 2024 gross margin guidance.

• Cash flow from operations was $1.4 million for the second quarter, contributing to an increase in cash balances to $11.9 million by the end of the quarter.

• Rockwell Medical Inc (NASDAQ:RMTI) increased its 2024 guidance across all metrics, expecting net sales between $95 million and $98 million and gross profit between $14 million and $16 million.

Negative Points

• Despite achieving profitability, Rockwell Medical Inc (NASDAQ:RMTI) has a history of financial instability and turnover, which has previously damaged credibility with shareholders.

• The company is still in the process of establishing a more permanent presence in the Western U.S., which remains a one-player market dominated by Fresenius.

• Rockwell Medical Inc (NASDAQ:RMTI) is currently evaluating various business development opportunities, which may take time to finalize, potentially delaying expansion plans.

• The company is working on adding a new product line outside of concentrates, but details and timelines for this expansion remain unclear.

• Rockwell Medical Inc (NASDAQ:RMTI) has deferred payments to Evoqua, which will be paid over eight quarterly installments, potentially impacting cash flow management.