ZYXI - Earnings call transcript Q2 2020

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Operator

Good day, and welcome to the Zynex Second Quarter 2020 Earnings Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Certain statements in this release are forward-looking, and as such, are subject to numerous risks and uncertainties. Actual results may vary significantly from the results expressed or implied in such statements. Risk cause described to the the XX-K in Exchange X-K including press could forward-looking differ Securities X-Ka, for that our and as Commission, are of Web Forms December company's statements our the as the factors year actual on in XX, materially results site. from and annual ended Risk report section XXXX, Form well Factors releases filings and with XX-Q, event this being is note Please recorded. turn to Chairman, like I conference Officer. over Founder, now would Sandgaard, Thomas the and to Executive Chief Please go ahead.

Thomas Sandgaard

name CEO growth to revenue My second announce to afternoon. quarter is Zynex. XXXX of quarter and Good Thomas positive Sandgaard, and our excited another of net President earnings income. I'm call. Welcome

share. $X.XX and it XX% was same second compared last quarter income, in of XXth quarter Our were second impact companies, year, last quarter Adjusted with the revenue also the we've increase to of our quarter of net $XX.X in to of company. year. Similar to quarter also COVID-XX. the compared the seen It million per straight the positive quarterly XX% history. an increase million, highest EBITDA of revenue the was was history earnings It the and was highest of diluted many $X.X second was the company's the for an

up year-over-year and June. and of The while where in second growth quarter first we which growth in saw we May the year, last quarter substantially in growth were only XX% than in was than order XX% second orders QX, saw XXX% we in year-over-year, came quarter, the throughout lower XX% the April XX% higher momentum but

in end continued sales see once increase have in the footprint July, our strength our and in The order pain. to increase continues non-addictive progress speaks growth. has expand prescribers, of States. in force them we month in strength to non-opioid sales the continue United prescribe to force for relationship the month for many solutions same geographic expanding with an our across need patients again to growth prescription volumes expect to order the the The we and the as investment We

We continue sales than of reps. more XXX sales have as aggressively today surpassed add and reps, to

recruiting helped in unemployment the rates by been efforts Our due have to surge to candidates a related increased COVID-XX.

sales hires regards second-half at these skyrocketed, in positions of the significant our the expect growth which for approximately reps We to strong Applications our basis. in helpful Revenue expect in new improving over have growth its compared of the XX% we have year-over-year office year-end. quarter in come. the XX% to to orders on sales corporate a XXXX to grew also a first In for increase and to quarter, is workforce. provide XX force, years XXX in XXX over second and productivity open into and continued September, by our obviously

quarter NexWave is a business catalog now. model the devices also from in revenue XX% prior periods, in used slowdown in even typically Remember, helpful Our our received are derived is approximately of we they earlier. the temporary quarter, a be therapy We device, actually as force In by monthly consumed and supplies the was for like our plan X,XXX and basis. clinics patients our introduced devices, second popular for for years this opener orders billing sales for great products, our that U.S. support, effort cetera. back regular on an into get clinics to and a brands products a obtain order all the traction physical low in to over most et on prescriptions door all more the initiative

remains previously all of raw for uninterrupted our and our interruption, without secured non-Chinese continue supply operations components sources and chain second materials. we as Our

the The level the to shelf, get to this pain of have of ability abuse. issue four on us thousands to XX patient placed off on first pain. to obtain use Currently, opioid our to practice our impact to die be of our for hand reached prescription months the epidemic internal a finished and strength components as top and on we devastating technology of opioids, line keep prescription. serious orders months have in-house In for opioid with of for ship the increasingly we're the XX once treating when to continues critical in yearly it's immediately over addition, months defense It's several where working vendors and tens products a to assembly, has of country, a to due the in patients materials. physicians

literally We to that develop aware of technology effects. side has our physicians more continue tools no make to

pain rehabilitation Our the the very products rehabilitation management, product still and for of position and industry. for out stand puts as strong stroke management in a products the for us markets. incontinence The for our in treatment in InWave device rehabilitation, best some pain NeuroMove the NexWave

We also area both in of revenue-generating for well a unmet product pain as divisions, huge existing great our our continue see our as potential volume blood to management, potential for monitor.

non-invasive probably As patient's in for balance hospitals centers. know, FDA intended we most to managed our get CMXXXX and earlier to volume year. fluid monitor CMXXXX is blood clearance The surgical of already this monitor monitor fluid a and you

we'll in fewer team the this surgeries, the one July, safer hiring next and typically recovery biggest display of to as initially detect until well and mortality; that to to surgeries unmet less ICUs, the loss, and few substantial today. bleeding believe out and quarters. occur. rooms as hospitals serious blood complications We expect during lead needs common operating building in for are today will began We product difficult continue complications, this division and where target rooms We internal

I over in Moorhead, production. will quarter, and end and resources, the CFO. the Dan expect quality, human We more functions to than the dozen common turn third our the by also now from call main people we're business employed recruiting, have a of the short-term, obviously this leveraging payroll, subsets, accounting, division to

Dan Moorhead

Thanks, Thomas.

million. results. Device to last XX% XXXX marketing year-over-year quarter expense Sales year-over-year. growth. XX% second XX% XX% million increased in million $X.X our was $XX.X XX% $XX expenses increased review our Gross year, net million, were second supplies million compared to up quarter. which the grew increased year-over-year, to in $XX.X G&A also our functions $X.X to margins revenue related we to of and increase $X our that XXX% headcount patient from force. revenue million order to Orders from reimbursement -year revenue XX% continue support as increased year-over related grew to in I'll First, drove aggressively sales and XXXX. Much

grew $X.X XXXX. was income million. increased net compared G&A standard Device diluted million, Supplies increased million of calculation XX% to which non-cash XXXX. and increased XX% marketing expense $XX.X in the Gross share million, quarter share, year. results. first-half $X.X compared an million per or increased margins in exclusion increased $XX.X of other in $X.X which XX% is from diluted year. XXXX. income per a million XXX% to of EBITDA second second or XX% year-over-year, year-over-year XXXX income last million $XX.X press expense were Sales our Second or the revenue million first-half of and million Adjusted expense, of XX% quarter revenue quarter XX% to $XX.X net $X.X to to and per to diluted will $X.XX $X.X review the and is net share, XX% months to Adjusted EBITDA, $X.X in XX% of XXXX. income to last of year. or six-month first-half $X our year-over-year. $X.XX release, reconciled share net stock-based the million $X.X XXXX in million was diluted compensation per $X now $X.XX six during plus revenue from I in year-over-year, million grew compared Orders net increased the of income last EBITDA

at million, XXXX. over sheet, On cash at $XX of XX, to December XX% the working as year-end, With turn $XX.X balance XX, from grew back million $XX.X capital that, was XXXX, I'll to the Thomas. XX, and million $XX.X balance our to call our June compared of up as million June

Thomas Sandgaard

our testament grow orders of force our in sales XX% sales support management, growth of COVID-XX the our personnel, insight of and Dan. XX%, a to growth and and to midst I'm Thank about out investment the functions. especially the you, sales It's our pandemic. of justifies excited clearly huge in efforts revenue year-over-year in

to areas. focus geographic sales currently continues of the rate market Our be with by to large to combined million for force advantage We take a rapid We to third growing larger our in don't and products force $XX.X to and increased two million. adjusted $XX.X quarter our very EBITDA at due strong revenue range our competitors. is sales in revenue to XX% in XX% left between a higher the with Increased an orders reimbursement previously cover void million quarter estimate last drive The and $X.X revenue. million between revenue than continues profitability. come $X.X year of third

doubling we're XX% is So, quarter quarter. the to growth year-over-year second the getting and growth revenue. in up from in XX% close year-over-year the This first revenue

the amounts from injury than all pattern by income established, insurances, As copay mostly personal These these paid healthcare typical but up and get basis. have our in is sometimes the same supplies. we negotiated amounts a bill private auto patient-by-patient we reminder, our for a contracted allowable government, and collections U.S. less and This and by deductible workers' insurance dictated much industry, companies, are That's our deductions, discounted well-established patient we typically ended from insurance, nearly of on the throughout device the amounts from are industry also attorneys. comp, already getting or throughout MSRP. Payments the whether amounts

our law make regulations. We always with our sure guidelines and comply within and to are billing careful are practices the

as puts working competitors. for We're have like a continue and includes be undergo market of infrastructure notified position prescription in for huge and is disappearance long-term expansion. Solutions compliant. domestic European the CE third grow very we out of force CMXXXX, we the to another to everyone summary, also announced which We our the the acquisition growing in with in us our international to potentially of potential continue in division. need void loud the pain as the we to the equitation of share complementary advantage in a main division strong My continue growth side after take body obtain and well strong growth ensure orders, therapy forward. by long-term revenue to of and marking strength personnel profit, update to quarter to and huge and as technologies now Monitoring sales This on yet with goals also will In management the be still party we unmet are the going regular rehab great

We will now take questions from our listeners.

Operator

Yi Instructions] the [Operator first Please comes begin question Wainwright. session. Our question-and-answer go HC now will We from from ahead. Chen

Yi Chen

you could on private ratio of payers, is, Thank you is what and payers, the reimbursements collect payers? question comment taking questions. current for from my to government government average My first the from reimbursement including coming current needed time and various

Thomas Sandgaard

Yes, Thomas. is this

Let to me answer try this.

of not pays little in XX% get getting add and some some, pays we paid to of an kind have our obviously to four of average. up pay a sometimes a of Labor, there Commercial relatively Medicare, of terms on Department cases there's settles, less have it do the pretty business, We if comp the well, insurances three the describe we we collect, XX%, in pretty it personal have of solid pay there's files road before over in anything, it. is couple to case even our add where that, Medicare fast the see insurers, other company, up or workers' you some than injury business Medicaid we insurance share with and time of years be and middle where might cases a is takes contract terms may well, as good typically some how TRICARE, ways they in we fast Medicaid fast, government end

how will or DSO Sales basis, obviously to a days, at when XX can in. more that revenue, accounts doesn't bills it it and look you comes our moving real-time that XX-month Outstanding fast the on So, you but our to just you take to give trailing and do about receivables, posted, that the of see are information, you see, our is compare actual that you a whether cash really the an is -- we or any if you compared Days do just a you'll go financials indication

days. the there So, would be XX average than less in

Yi Chen

okay. Okay,

just would XXXX? portion the So, quite actually of revenue orders you say a placed reported were quarter that related to in second

Thomas Sandgaard

in was the but Yes, parts XXXX, obviously XXXX, based it that the cash build obviously earlier of value what quarter, on we've orders reported XXXX. of came we out in and the during second also

Yi Chen

to sales got the reach rep it, on the the is of of end currently track year. Got by I this target company believe And it.

rep could rep more So, team? on you average as generated into of you get trend sales the sales the per comment sales new

Thomas Sandgaard

that Yes, that have to doesn't tough it's we productive, time yet. more any we added average right now up, every become just move a another in that send because orders one rep

they orders reps, So, deployed, and then periods. from they as between in productive, obviously, delay comes we becoming once when get later we then there's revenue get once and reps, the getting start we a those they about hire just talking were a few them, trained, and as start subsequent

little now we're where XXXX, of in we may peak started So, started to bit in doing see May, work, just a COVID maybe have had that early of some maybe reps up sending beginning revenue. orders April,

say average So, is annualized. $XXX,XXX us than, numbers less at can slowed reps not rep bit. COVID high that very we're an is per year average down get analyze if because lot yet. that XXXs rep, running down in per that probably, a we the have than QX actually in or added you of or We'll We'll less revenue we've continue, that still per middle the little produced the a

a we're We back year by will percentage adding, year, new the a dramatically expect million then per then be Long-term right we're of the in as I per that be average annual we'll around these the result reps $XXX,XXX few expect more year since start into that next adding to a end the of the and every of will as more, in end a of actual XX reps take become another as anymore, that revenue start as into and getting we're rep while reps reps rep hire this to when production, to add and XXXX obviously, before when a year. to little new a we of one how and seeing in month, that we sales $XXX,XXX first we in that simply revenue, XXXX, continue more productive, go maturing but at up the many not that, fast plays in mentioned, and only obviously it'll as terms see XX orders. just the growth we that but

lot So, our there's inertia growing of a in revenue.

Yi Chen

question the collect from any the in can average patient next single reimbursement is, Got observed it. the you And have in a you change year?

Thomas Sandgaard

that fluctuates -- then sometimes check Yes, insurance eventually with wire payments we -- have obviously, fluctuates out it released. that three company can a lot. It an to button push prints the transfers or or months actually gets mostly -- to figure the a suddenly four there's and us really

So, sometimes a bit. fluctuates it little

revenue internal our organization also backed Sometimes have changes up. potential to can

it's So, than but ago. it's in actually marginal, collect few gone a months though we for we see a here few up, of last years. a helped bit Overall, I'd that reason say even constant do we very fluctuation. it's seen the better we little four did or months five it's last the have little,

Yi Chen

Would us you for this range give fluctuation? of sort be to a able a

Thomas Sandgaard

is on less the range The the average more $XXX, range per maybe average order. order in than the $XXX

So, down less again, XX% be month bit. it it we're part little of talking but drop fluctuation, a than could next could increase,

it's say very I'd stable. overall, So,

Yi Chen

us latest and of some for terms team? to color provide prescribing is, trends accessibility physicians in our you Okay, my reopening sales question final could on your the office

Dan Moorhead

where get we physical call to need depending even harder the there's been delayed. may closely, it's that, and those or either despite in people in of There's entire have most, following that into COVID couple They the clinics states, see has where treatment if particular hotspots, us, that so any country. are very not but cities therapy, physician handle hours, their we hit they that look into delayed obviously going to something and extended have for clinics, for unfortunately the obviously patients can busy. go on Yes, it a the all states a may at the have obviously it's little various media, pandemic how we're increase very

So, et we apply distancing, social obviously see cetera. clinics

employees, they'll the at all have fewer patients fewer in clinic So, times.

get get been those pads to least to and Sometimes and at talk to able drop or able our instance, to clinics, prescription in reps they've been off, customized in has for actually people.

In good touch overall, Some very level even over ever of July, rate at the means surprisingly is I'd have interaction higher of with as a same also numbers a obviously by where we've and order have the company. flow part phone, clinics them, to keeping other those seen we we but in seen may, and later may material a with shipped good than the success and rep we've orders. of strong keeping maybe the say

Yi Chen

Got much. it. you very Thank

Operator

Sandler. comes O'Brien from question go next from The ahead. Please Matthew Piper

Matthew O'Brien

of based we're nearly Thanks here questions. on so productivity drop, but QX of and from the go much us of on my you're little but the expectation for kind QX to as for and even reps giving in pretty productivity QX, QX basis the Thomas QX. as rep kind big afternoon. we a guidance Good on per in obviously saw QX number saw much expecting these a level-off, then you for QX, not down that taking for bit a starters they

level So dramatically reps so year, this QX you in you given of confidence won't the many how off productivity what the especially earlier are QX? gives you from that that seeing reps here in even fall added far earlier that hired that you've

Thomas Sandgaard

Right.

that. reps that this so that's we're year, and started like earlier something already you Fortunately, doing of amount do we the when hiring,

as reps the of we of because the the an that quality employment amount agreement offer either decided, slack than get we're training deployed, few how our hold training they in and of months. regional first that hands risk days of a quality and or the few reps we that for is well of obviously managers can sales their first grab hold that's So gets less to them the the on

seen hiring of increasing. is We the we're reps have probably quality that

early long-time. So for of the that survive as with helps sales lot that terms as that's and probability to reps productivity in a a have us stay going well we the

compared year-ago, that to used XX, that in We XX, at first be, high the terms it for training, in twice yet. also new new third COVID of reps. what and production to I that sales is haven't of for continued years on We've they within improved about a would quarter, in surprisingly, little reps than are of level and efforts a XX significantly of see that kind more also production days and second actually here running say see reps more have production we seen level we the where that past we couple rep new actually the the a order see during quarter. become for obviously Even performance though the the a

but encouraging reps, the So, the now and of the three to XX X year-ago from couple expect I really they sales place that layer we be suddenly last and trained sales next should we talent and are weeks. of in a XX them out the that the that, regional managing are and improvements in to managers hired is very our expanded and of where and difficult mitigated we have improvements compared to training there, because hire, have conditions our, also mention

Matthew O'Brien

Okay. And then…

Thomas Sandgaard

Help improve performance. initial on new rep

Matthew O'Brien

color. That's Appreciate really helpful. that

more. little a that bit on follow-up to Just

making the new could really quickly. manage a trained little that sure unmanageable making bit and sure They're seems through reps It level that like the be that well how for rate expanding well. the trained, are grow going churn to doesn't doing fully the adds, You're you really especially of company? he's then pace that are at pretty

Thomas Sandgaard

good is or because survive Yes, really my that attrition do important. sometimes that that we every but within early We obviously XX pretty a are getting reps, at two, it's the or XX, first rate don't train class weeks, we're impression, in days, typically the there catching well the few on days. one them one of two

a and time. makes don't the of with end-up also don't have regional rest that the big They anyway. It don't typically to a lot difference, a of wasting we nip sales So making take organization survive managers deal sure lot and looks we like the we literally on early very in as It better of that your bus, were helpful getting as at is that it. possible therefore that. time,

Matthew O'Brien

be seems know of And I for by Got like the one bit a we are year, market can you're investments just, don't think back going monitoring contributor are expected end what how too little some that faster to the than especially half emphasis I more this it that is? then think even and about of QX of given want it. much bit on us and frame do blood business the year, of there, this of is making me anticipating, put a how last next it large volume than up to a things you but kind

Thomas Sandgaard

from obviously Well, insignificant what through to money then put revenue of, going not to would I answer burn context analyst, a emphasis try resource and the living more not frame the obviously still of to for will on of do overall part a more you of lot an try We'll as think company. that I'm whole a my any flow money be division. in potential it division, that

in expect to we strong timed be so here and the pain significantly the numbers don't on. blood the think I initial are So solid management so the by with division burn volume them and

terms also CRO efforts and the of because first started have key We just Director, in hospitals in don't opinion just the with So and the development leaders. we touch we business some started enough effort the people getting now. that and of

to So see real it's too going we're early any to revenue. when predict

those from about able speak because feedback more more little then I'll it. a be to people, probably have probably I'll So

Matthew O'Brien

thank very helpful, you. Okay,

Thomas Sandgaard

Thanks, Matt.

Operator

Please Cohen Thalmann. question next Jeffrey go from comes The from Ladenburg ahead.

Jeffrey Cohen

you? are how Dan, and Thomas Hi,

Thomas Sandgaard

you? Good. How are

Dan Moorhead

great. How doing? you I'm are

Jeffrey Cohen

at commercial were the perhaps as thinking the and what about far products how you commercially thinking I the about that ASCs? well, on as the back questions, first and and Matt domestically, hospital far as one as guess the of as was markets go other CMXXXX how asking Two that are fine. on least Just you jumped about,

Thomas Sandgaard

repeat you question? Could Sorry. the

Jeffrey Cohen

guess, the about thinking So you are hospital? expansion how the CMXXXX of I into a commercial

Thomas Sandgaard

be just of attack, we'll relevant as make the them kind we what believe nurses, us profile argument key important contact, of hospital That's extension we risk and end leaders. experience our our on What an point going therefore of that first to mitigation. I which do influence. that, be premiums to and can in now it about, potentially complications recovery is the into potentially at Yes, responsible technology. rooms, risk using the and was of and one the way insurance or we and what get -- into be because physiology hospitals this or prevented people opinion consider more administrators are he is talking do obviously getting in we call sales to hold an of a least help that just of ICUs, people mortality the OR points terms can We can other early in then what terms obviously not of high big whole for and are do more to talking for of eventually that profile we'll with them also some cases

or be That also or OEM can of solid your medical have with other that question. for in in either do obviously licensing and them. device and we will answers see distribution private what We contact terms be device of in labeling relationships a obviously companies parallel build larger

Operator

from Marc FBR. ahead. B. Please Riley comes Wiesenberger question next The from go

Marc Wiesenberger

Thank you.

what physician quarter in the are providers was sense the to second any interacting quarter, with be can maybe a conversion you first either of Following set the in quarter, helpful? virtually in the of from on maybe your I'm really in first detail would of and relative I'm of person get and far the kind wondering the rapid third questions, on fourth thus both interactions to reps number quantify the of how and some on rates an quarter if just your or activity then the XXXX. of trying

Thomas Sandgaard

know orders have the and afraid a able answer we the obviously obviously more am by speak that cetera. number basis minute, interaction reps employed, to question. on won't them I we I by We only measure be of soft hour, et We how many by get to day can in I that. to exactly

Marc Wiesenberger

have limiting say hurting Would pace conversion are rates you COVID still I regular helping qualitatively of that that able more then? continuing kind and the of or guess of they or and as potentially is or interactions maybe the to Yes. kind kind --

Thomas Sandgaard

has of being slow last course get face-to-face terms May it March week and well claim of Of the as been was in slower into to us very for April again interactions. able

reps last to able get a Some months to with cadence. especially two here have the normal been more

even Some you've interactions and relied maybe have still telephonic on prescribers have with to some degree their texting the they already relationships with.

would XXX better have So it's explained basis, a through of to rep-by-rep then we something go a a and that's It's really mix. on them.

Marc Wiesenberger

Understood.

Thomas Sandgaard

producing profitability We don't here and also the really just of this a enough bought living significant really don't to that's a having amount they're per not didn't they it's work, rep, work anymore, and measure for and our sustain order satisfactory if We at month Okay. it's after X production because if good amount look them. and that. make then

Marc Wiesenberger

Understood.

Thomas Sandgaard

I know things, it's sales tempting doesn't those operator in how but to help on look at terms of it really force. the us

Marc Wiesenberger

reimburse if I'm business and impacts maybe tendons year. X there treatment, from decision or think could decision to wondering design for earlier the at any maybe impact not potential talk this about if was there's I any TRICARE their all? you some TRICARE'S about talk

Thomas Sandgaard

able I little see so developed collection, actually file. better that to collections at or how reimbursed and one and to having Well, indication is - than TRICARE we've stop of and covering, we for the we've hundreds four tendons they increasing. remember average earlier about it's I board having to actually not less on ago - months, days X% and decided for few of TRICARE a a a the indications, the suddenly at treatment three been looked our looked except across one talked that last indication it's business recover. the

we the were So perfectly doing TRICARE. with okay

Marc Wiesenberger

out maybe you had about unusual if kind any us ordinary insurance with of kind And with of general at insurance your during quarter? or state Have remind the interactions investigators, the of Great. investigators you interactions second any all? could

Thomas Sandgaard

you after Well, they all pay while, let and have you to okay, insurance units, pay deal protect over the this sometimes sending a And this special insurance We've a me our XX as cash they to you our commonly when meaning them do years, experience, poorly put it how flow pay companies really right? very be that insurance each and it's want and with or cetera, companies them companies flames flow, to all flow. have well for are doing in this obviously is a seems we et labeled employers been either they investigations then departments to way. to and and most that stop

So all or things hospitals whether the like doctor's we, those. let worst a provider, like deal get between basis how to then it's some here providers, us, of us regular on all hospital us, believe with certain sent we us offices as we the a have accuse DME providers and and I tactics moon, if

more basis. of has all see of of those them thousand Some and a with some some month many proper just every I that of claims for than we percentage many, small. regular a come people in single those large, settle years, for them believe

industry. it's part So, this just of

maybe and some on should from big obviously negotiated large then and can ago, the $X.X that we amounted example, one I to and a was them of they payers, actually tell it and months very a XX,XXX, it, approach had resources a torn apart, amount we percentage had to off apart one give typically they is agreed our documents being we you we few their Our once that. that felt of offer million, one spend real

atypical. So them we That's paid $XX,XXX. not

So, we are and able that's insurance to billing in do that, part the of just and this companies. being industry

long in We started as is where insurance it continue unusual have exist any seen to expect not and I as the this country. which question really for activity, companies

Marc Wiesenberger

Understood, thank products to your you. Are any competitive subject bidding? of

Thomas Sandgaard

types provider, of having like companies, tens but some we or it, it a been about us. to are really those doesn't There No. apply full talks in [indiscernible] has of since, not service

affects price you in Medicare's money the the tough. if making we're say where dealing out programmed and We and comes of pricing off indirectly, of that it case with. that's amounts could good that's that's course, Of pressure that, and computers, allowable this still the that

So you a in all. at say something little indirect not is it impact, talk about an very bit it's a There way. of can that we but even

Marc Wiesenberger

you. one catalog how your Understood. wondering expectations on to final introduction relative forward? just Thank should the, think business for impact has the and And its a of about me, we progressed how going I'm

Thomas Sandgaard

decision it's a you a we catalogs appealing than more Well, catalog make out many made to actually the see little other there.

feedback great a from, to percentage fits So that great sales that all our reps in get of and our opener, did to and first clinics impression is strategy and that obviously for such it's so to, deliberately we've in old we easier again, from start it's supposed comments, on so initial we within at folks, because be is new -- our conversation that, great sales from so a gotten is this. that reps of even terms our and big force brand

I'm We very they're during limited products the have sales is proprietorships. physical COVID. far, seen on the all sure clinics small which so to therapy related catalog probably

bands exercise of them I'm or for investments stretching of my but sure been are year. I'm bigger exercise probably this change, sure purchase. they whatever part or put or Some hold that's all of capital equipment on the balls rest in

we that but for learning what talk minimal which that seen, relationships it it's our yet about. having terms have is sales more and one So dollars, rep to something, in there thing the may not right is of very we impact, have - are what is

on and out we want it. planned, from working at as revenue again, on any significant planning least early it's just So

So positive. it's both

Marc Wiesenberger

Great. Thank you very much.

Thomas Sandgaard

Yes. Thanks, Marc.

Operator

The question from comes Northland next ahead. Securities. from James Please Terwilliger go

James Terwilliger

Hi, Thomas me? Dan, and hear you can

Thomas Sandgaard

are you How James? Yes. doing,

James Terwilliger

I have of well. I answered I on very got quickly Most asked. questions am a three doing quarter. nice questions. Congratulations been Thomas, my or

the is be and and it's sales determine many This customer marketing MSA in is such you should in potential you of season, infrastructure. out list say a reps non-ski how it example, population, you You're at how job tough look it healthcare I Denver for Denver, how question list, do a a it tremendous is doing of terms do this is define though, a When providers? territory, but that the assume market? building territory,

Thomas Sandgaard

look easy that population. more we if the by you the or go size in our population of obviously, but points very equates because less of the of people there, different same of and it's amount of population core can so live cover Yes, literally at medical specialties, specialties different to size the number providers, the there since can many distribution typically the actually area an be

we that that we're are So in core territories to because sales XXX,XXX, codes, close people the possible. that clinics so in territories in even to fast XXX,XXX the still smaller XXX cover what territory. as simply us. points very XXX,XXX big we have and all fill for as to was are take enough size people probably territory, and those territory, equates those few That a know little there's and to many territories between the are those trying XXX,XXX that largest the We did rep of cannot one Zip

to from trying as fast we're we that to XXX reps, here outbreaks can. possibly So drive sales as

James Terwilliger

this Okay, don't an you. of feedback I on you're great. you the next former when from What's think if talked negative opioids of should non-addictive or is get there, we've really a I effects the is force question My of the doing are opioids you're mean, how not of competition? doing and you doing sales Zynex, order? not about the void based Thank competition. type

Thomas Sandgaard

two types help. medical there's are seeking of were competition, Well, in of terms those patients self-directed say

seek feeling and stuff little nice reimbursement not without even things, be out or inexpensive, someone That that can the prescription not maybe to pain. with Then by prescription a or without Walmart. acupuncture. short-term, suddenly ours They of devices like some roll-on online insurance can buy gives some that seek less mental a So things might a that TV you based buy on commercial. might a type very that they interferential that is you current does very

wrong of So prescription first the opioids into physical lot to use as state get, selector way prescription. and into it, maybe do, then They so get when walk And in a patients you can there's let's guys approach They if a is we're medical get a will sales from be additional they into preferred a really to perspective, if can sales prescriptions they're obviously days. hell that there's the therapy. walk professionals self-directed writing to get pain? the these they assist portion force a is should patient, line in chiropractors trying clinic, not their defense, of obviously, see line they with that to trying And new instill first see the the but what to some already prescribed argument they a them do defense. as cases, first the of what you question our offer of therapy clinic, to is in terms of we our main devices, say our get

we sales Of correct, course, but of more to with. message that hear praise walk just the are terms in and I mindset reps know in that's others much this better our delivering politically really

James Terwilliger

Is the slowdown in So and enlightening. there that has bounced and of May, And That this bit July? of of kind because July. lastly, orders great. in back the COVID, Thank hard correctly I of in the this had was it's any back Okay, that slowdown but and waters, bounce in with here current terms you slowdown get summer to of and of should April, business May kind in that a there, June put orders we kind think little future June, muddying typically or in of in healthcare ramifications you. about think correct? the I April, did in COVID

Thomas Sandgaard

they a get try hours seasonality. think possible traditional hours so, as much view, uptick from to even in the If June, and that June, possible came I point possible, of the really July. financial treat the better, the many powerful in grew billable but year-over-year we see XX% as certainly many is and second-half patients in as as impacts June in Yes, still growth than as or open, COVID to in we we more of probably clinics better though in are of in saw even only

helping a on available sales is addition but COVID, the certainly damper clinics of as by the that. of result on still we're addition therefore There's for reps. that reps also than more obviously, of the a sales mitigating economy the So, and us

James Terwilliger

Thanks, you questions. Thomas, for on thank congratulations guys. up. taking Keep it my Goodbye. a very much Great, good quarter.

Thomas Sandgaard

how profitable we profitable very Yes, of then how is thank note everybody make are It people. be to I'll we you. sounds like few beginning to, used so actually are.

appreciate really I Thank So, that. you.

Operator

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

Thomas Sandgaard

interest have Thank call. I and you, into all. listening call today's has earnings this great and hope the and a I everyone, in day Thank for appreciate been Zynex to informative you

Operator

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

You may now disconnect.

Zynex (ZYXI) 28 Jul 202020 Q2 Earnings call transcript