• Sensus Healthcare Reports Third Quarter 2022 Financial Results

    ソース: Nasdaq GlobeNewswire / 03 11 2022 16:05:01   America/New_York

    Profitability continues with revenues up 64% to $9.0 million, diluted EPS of $0.11 compares with $0.01 a year ago

    Conference call begins at 4:30 p.m. Eastern time today

    BOCA RATON, Fla., Nov. 03, 2022 (GLOBE NEWSWIRE) -- Sensus Healthcare, Inc. (Nasdaq: SRTS), a medical device company specializing in highly effective, non-invasive, minimally-invasive and cost-effective treatments for oncological and non-oncological conditions, announces financial results for the three and nine months ended September 30, 2022.

    Highlights from the third quarter of 2022 and recent weeks include the following (all comparisons are with the third quarter of 2021, unless otherwise indicated):

    • Revenues were $9.0 million, up 64% from $5.5 million
    • Net income was $1.8 million, or $0.11 per diluted share, compared with $0.2 million, or $0.01 per diluted share
    • Exited the quarter with $37.6 million in cash and cash equivalents, and no debt
    • Adjusted EBITDA, a non-GAAP financial measure, was $2.3 million, compared with $0.5 million
    • Introduced the Silk™ laser hair removal system with blended wavelengths for all skin phototypes at the Fall Clinical Dermatology Conference
    • Two key opinion leaders presented research with the TransDermal Infusion (TDI) System in delivering finasteride for hair growth and onabotulinumtoxinA for hyperhidrosis at the Fall Clinical Dermatology Conference
    • Launched upgrades to the SRT-100 Vision system with new state-of-the-art, solid-state, high-frequency ultrasound and a new, ergonomically designed probe
    • Shipped the first of 10 TDI Systems ordered by Hair Enhancement Centers to provide needleless injections of U.SK Under Skin’s hair-growth serum Skin Savers Hair
    • Shipped four SRT units to China
    • Expects continued growth in the fourth quarter and full-year profitability, noting economic headwinds and the impact of Hurricane Ian on several large customers in Florida

    Management Commentary

    “We continued to execute very well on our strategy and once again generated strong growth in revenues and profits,” said Joe Sardano, chairman and chief executive officer of Sensus Healthcare. “We remain focused on our core dermatology business, providing products our customers and their patients need. To that end, we launched important upgrades to our premium SRT-100 Vision system that included new state-of-the-art, solid-state, high-frequency ultrasound, which provides the best view of the epidermis in the market and utilizes a new ergonomically designed probe employing single-use disposables. The Vision model has become our leading SRT product, helped by these design upgrades and our fair market leasing program. That said, higher interest rates are impacting physician ROI, but not demand.”

    Mr. Sardano added, “Our recently acquired TransDermal Infusion System for the needleless and pain-free delivery of aesthetic medicines is generating significant attention at tradeshows and medical conferences. Research by key opinion leaders Dr. Mark Nestor and Dr. Glynis Ablon continues to support our marketing efforts. At the Fall Clinical Dermatology Conference, Dr. Nestor presented his success with the TDI System to deliver onabotulinumtoxinA, better known as Botox, in hyperhidrosis patients, and Dr. Ablon presented on the ability of the TDI System to deliver finasteride, better known as Propecia, for hair growth without pain. During the third quarter we took orders for 10 TDI Systems from Hair Enhancement Centers, delivered one during the quarter and expect to deliver the remaining nine before the end of the year.

    “We continued to see good uptake on our service agreements, with approximately 40% of customers having committed to these agreements following the expiration of the one-year warranty. We expect service agreements to be a growing source of recurring revenue,” Mr. Sardano continued. “Of note, we believe the treatment of non-melanoma skin cancer is not impacted by economic uncertainty, but a recession could affect demand for aesthetic procedures. The devastation from Hurricane Ian to large parts of Florida may impact fourth quarter sales as some of our largest customers have not yet reopened their clinics. However, we are continuing to plan for growth and expect additional hiring in our sales organization.”

    Third Quarter Financial Results

    Revenues for the third quarter of 2022 were $9.0 million, compared with $5.5 million for the third quarter of 2021. The 64% increase was driven by a higher number of units sold, increased service revenue and the impact of COVID-19 on 2021 results.

    Cost of sales for the third quarter of 2022 was $3.1 million, compared with $2.3 million for the prior-year quarter. The increase was due to higher sales in 2022.

    Gross profit for the third quarter of 2022 was $5.9 million, or 65.6% of revenues, compared with $3.2 million, or 57.9% of revenues, for the third quarter of 2021. The increases were driven by a higher number of units sold in 2022, service revenue on installed units and the impact of COVID-19 on 2021 results.

    Selling and marketing expense for the third quarter of 2022 was $1.8 million, compared with $1.2 million for the third quarter of 2021. The increase was attributable to higher tradeshow and advertising expense.

    General and administrative expense for the third quarter of 2022 was $1.2 million, compared with $1.1 million for the third quarter of 2021. The increase was primarily due to higher professional fees.

    Research and development expense for the third quarter of 2022 was $0.7 million, unchanged from the prior-year quarter.

    Provision for income taxes was $0.5 million for the third quarter of 2022, compared with no income tax provision for the prior-year quarter.

    Net income for the third quarter of 2022 was $1.8 million, or $0.11 per diluted share, compared with $0.2 million, or $0.01 per diluted share, for the third quarter of 2021.

    Adjusted EBITDA for the third quarter of 2022 was $2.3 million, compared with $0.5 million for the third quarter of 2021. Adjusted EBITDA, a non-GAAP financial measure, is defined as earnings before interest, taxes, depreciation, amortization and stock-compensation expense. Please see below for a reconciliation between GAAP and non-GAAP financial measures, and the specific reasons these non-GAAP financial measures are provided.

    Cash and cash equivalents were $37.6 million as of September 30, 2022, compared with $14.5 million as of December 31, 2021. The company had no outstanding borrowings under its revolving line of credit as of September 30, 2022 or December 31, 2021.

    Nine Month Financial Results

    Revenues for the first nine months of 2022 were $31.4 million, compared with $14.0 million for the first nine months of 2021. The 124% increase was driven by a higher number of units sold in 2022, service revenue on installed units and the impact of COVID-19 on 2021 results.

    Cost of sales was $10.2 million for the nine months ended September 30, 2022, compared with $5.9 million for the nine months ended September 30, 2021. The increase was due to higher sales in 2022.

    Gross profit for the first nine months of 2022 was $21.3 million, or 67.8% of revenue, compared with $8.1 million, or 58.0% of revenue, for the same period of 2021. The increases were driven by a higher number of units sold in 2022, service revenue on installed units and the impact of COVID-19 on 2021 results.

    Selling and marketing expense was $4.8 million for the nine months ended September 30, 2022, compared with $3.5 million for the nine months ended September 30, 2021. The increase was primarily attributable to higher tradeshow, advertising and commission expense.

    General and administrative expense was $3.6 million for the first nine months of 2022, compared with 3.5 million in the prior-year period. The increase was primarily due to higher professional fees.

    Research and development expense of $2.3 million for the first nine months of 2022 was unchanged from the first nine months of 2021.

    The Company reported other income of $12.9 million during the first nine months of 2022, which was mostly related to the gain on sale of a non-core asset. There was no other income in 2021.

    Net income for the first nine months of 2022 was $21.4, or $1.28 per diluted share, compared with a net loss of $(1.2) million, or $(0.07) per share, for the prior-year period.   Net income for the nine months ended September 30, 2022 excluding gain on sale of assets was $8.6 million, or $0.52 per diluted share.

    Adjusted EBITDA for the first nine months of 2022 was $23.8 million, compared with $(0.4) million for the first nine months of 2021.

    Use of Non-GAAP Financial Information

    This press release contains supplemental financial information determined by methods other than in accordance with accounting principles generally accepted in the United States (GAAP). Sensus Healthcare management uses Adjusted EBITDA, a non-GAAP financial measure, in its analysis of performance. Adjusted EBITDA should not be considered a substitute for GAAP basis measures, nor should it be viewed as a substitute for operating results determined in accordance with GAAP. Management believes the presentation of Adjusted EBITDA, which excludes the impact of interest, income taxes, depreciation, amortization and stock-compensation expense, provides useful supplemental information that is essential to a proper understanding of the financial results of Sensus Healthcare. Non-GAAP financial measures are not formally defined by GAAP, and other entities may use calculation methods that differ from those used by Sensus Healthcare. As a complement to GAAP financial measures, management believes that Adjusted EBITDA assists investors who follow the practice of some investment analysts who adjust GAAP financial measures to exclude items that may obscure underlying performance and distort comparability. A reconciliation of the GAAP net loss to Adjusted EBITDA is provided in the schedule below.

         
    SENSUS HEALTHCARE, INC.        
    GAAP TO NON-GAAP RECONCILIATION        
    (unaudited)        
             
      For the Three Months Ended For the Nine Months Ended
      September 30, September 30,
    (in thousands)  2022   2021  2022   2021 
             
    Net income (loss), as reported $1,829  $195 $21,415  $(1,199)
    Add:        
          Depreciation and amortization  75   127  241   472 
          Stock compensation expense  40   204  137   324 
          Income Tax  450   -  2,168   - 
          Interest, net  (118)  -  (145)  - 
    Adjusted EBITDA, non GAAP $2,276  $526 $23,816  $(403)
             

    Conference Call and Webcast

    Sensus Healthcare will host an investment community conference call today beginning at 4:30 p.m. Eastern time during which management will discuss financial results for the third quarter of 2022, provide a business update and answer questions. To access the conference call, dial 866-777-2509 (U.S. and Canada Toll Free) or 412-317-5413 (International). The call will be webcast live and can be accessed at this link, or in the Investors section of the Company’s website at www.sensushealthcare.com.

    Following the conclusion of the conference call, a replay will be available until December 3rd and can be accessed by dialing 877-344-7529 (U.S. Toll Free), 855-669-9658 (Canada Toll Free) or 412-317-0088 (International), using replay code 4619519. An archived webcast of the call will also be available in the Investors section of the Company’s website.

    About Sensus Healthcare

    Sensus Healthcare, Inc. is a medical device company specializing in highly effective, non-invasive, minimally invasive and cost-effective treatments for both oncological and non-oncological conditions. Sensus offers its proprietary low-energy X-ray technology known as superficial radiation therapy (SRT), which is the culmination of more than a decade of research and development, to treat non-melanoma skin cancers and keloids with its SRT-100, SRT-100+ and SRT-100 Vision systems. With its portfolio of innovative medical device products, including aesthetic lasers and its needleless TransDermal Infusion System, Sensus provides revolutionary treatment options to enhance the quality of life of patients around the world.

    For more information, visit www.sensushealthcare.com.

    Forward-Looking Statements

    This press release includes statements that are, or may be deemed, ''forward-looking statements.'' In some cases, these statements can be identified by the use of forward-looking terminology such as "believes," "estimates," "anticipates," "expects," "plans," "intends," "may," "could," "might," "will," "should," “approximately,” "potential" or negative or other variations of those terms or comparable terminology, although not all forward-looking statements contain these words.

    Forward-looking statements involve risks and uncertainties because they relate to events, developments, and circumstances relating to Sensus, our industry, and/or general economic or other conditions that may or may not occur in the future or may occur on longer or shorter timelines or to a greater or lesser degree than anticipated. Although we believe that we have a reasonable basis for each forward-looking statement contained in this press release, forward-looking statements are not guarantees of future performance, and our actual results of operations, financial condition and liquidity, and the development of the industry in which we operate may differ materially from the forward looking statements contained in this press release, as a result of the following factors, among others: the continuation and severity of the COVID-19 pandemic, including its impact on sales and marketing; our ability to achieve profitability; our ability to obtain and maintain the intellectual property needed to adequately protect our products, and our ability to avoid infringing or otherwise violating the intellectual property rights of third parties; the level and availability of government and/or third party payor reimbursement for clinical procedures using our products, and the willingness of healthcare providers to purchase our products if the level of reimbursement declines; the regulatory requirements applicable to us and our competitors; our ability to efficiently manage our manufacturing processes and costs; the risks arising from doing business in China and other foreign countries; legislation, regulation, or other governmental action that affects our products, taxes, international trade regulation, or other aspects of our business; concentration of our customers in the U.S. and China, including the concentration of sales to one particular customer in the U.S.; and other risks described from time to time in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.

    At the present time, we do not expect that the Russian invasion of Ukraine and global geopolitical uncertainty will have any particular impact on our business, but we continue to monitor developments and will address them in future disclosures, if applicable.

    In addition, even if future events, developments, and circumstances are consistent with the forward-looking statements contained in this press release, they may not be predictive of results or developments in future periods. Any forward-looking statements that we make in this press release speak only as of the date of such statement, and we undertake no obligation to update such statements to reflect events or circumstances after the date of this press release, except as may be required by applicable law. You should read carefully our "Introductory Note Regarding Forward-Looking Information" and the factors described in the "Risk Factors" section of our periodic reports filed with the Securities and Exchange Commission to better understand the risks and uncertainties inherent in our business.

    Contact:
    LHA Investor Relations
    Kim Sutton Golodetz
    212-838-3777
    kgolodetz@lhai.com

    (Tables to follow)

    SENSUS HEALTHCARE, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
             
             
      For the Three Months Ended For the Nine Months Ended
    (in thousands, except share and per share data) September 30, September 30,
       2022   2021   2022   2021 
      (unaudited) (unaudited) (unaudited) (unaudited)
    Revenues $9,010  $5,525  $31,428  $14,017 
    Cost of sales  3,136   2,324   10,150   5,885 
    Gross profit  5,874   3,201   21,278   8,132 
    Operating expenses:        
    Selling and marketing  1,807   1,180   4,753   3,502 
    General and administrative  1,160   1,082   3,564   3,499 
    Research and development  746   744   2,302   2,330 
    Total operating expenses  3,713   3,006   10,619   9,331 
    Income (loss) from operations  2,161   195   10,659   (1,199)
    Other income (expense):        
    Gain on sale of assets  -   -   12,779   - 
    Interest income  119   -   147   1 
    Interest expense  (1)  -   (2)  (1)
    Other income (expense), net  118   -   12,924   - 
    Net Income (loss) before income tax  2,279   195   23,583   (1,199)
    Provision for income tax  450   -   2,168   - 
    Net income (loss) $1,829  $195  $21,415  $(1,199)
    Net income (loss) per share     - basic $0.11  $0.01  $1.30  $(0.07)
                                                        - diluted $0.11  $0.01  $1.28  $(0.07)
    Weighted average number of shares used in computing net income (loss)
    per share                                    - basic
      16,478,742   16,486,969   16,498,557   16,470,258 
                                                        - diluted   16,648,229   16,498,832   16,689,548   16,470,258 
             


    SENSUS HEALTHCARE, INC.
    CONDENSED CONSOLIDATED BALANCE SHEETS
           
       As of September 30,
      As of December 31,
    (in thousands, except shares and per share data) 2022 2021
      (unaudited)   
    Assets      
    Current assets      
    Cash and cash equivalents $37,577  $14,519 
    Accounts receivable, net  7,396   12,130 
    Inventories  2,350   1,759 
    Prepaid and other current assets  4,207   2,837 
    Total current assets  51,530   31,245 
    Property and equipment, net  474   605 
    Intangibles, net  74   146 
    Deposits  36   75 
    Deferred tax asset  1,602   - 
    Operating lease right-of-use assets, net  1,043   169 
    Total assets $54,759  $32,240 
    Liabilities and stockholders' equity      
    Current liabilities      
    Accounts payable and accrued expenses $4,883  $4,058 
    Product warranties  302   508 
    Operating lease liabilities, current portion  220   174 
    Loan payable  -   51 
    Income tax payable  233   - 
    Deferred revenue, current portion  1,012   1,172 
    Total current Liabilities  6,650   5,963 
    Operating lease liabilities, net of current portion  846   - 
    Deferred revenue, net of current portion  139   262 
    Total liabilities  7,635   6,225 
    Commitments and contingencies      
    Stockholders' equity      
    Preferred stock, 5,000,000 shares authorized and none issued and outstanding  -   - 
    Common stock, $0.01 par value - 50,000,000 authorized; 16,815,011 issued and 16,601,355 outstanding at September 30, 2022; 16,694,311
     issued and 16,617,274 outstanding at December 31, 2021
      169   167 
    Additional paid-in capital  44,921   44,115 
    Treasury stock, 213,656 and 77,037 shares at cost, at September 30, 2022 and December 31, 2021, respectively  (1,439)  (325)
    Retained earnings (Accumulated deficit)  3,473   (17,942)
    Total stockholders' equity  47,124   26,015 
    Total liabilities and stockholders' equity $54,759  $32,240 
           

    Primary Logo

シェアする