Misonix, Inc. (Nasdaq: MSON) (“Misonix” or the “Company”), a
provider of minimally invasive therapeutic ultrasonic medical
devices that enhance clinical outcomes, today reported financial
results for the fiscal 2019 first quarter ended September 30, 2018
as summarized below:
|
|
|
|
|
Three Months Ended |
|
|
September 30, |
|
|
|
2018 |
|
|
2017 |
|
|
|
|
|
|
Revenue |
$ |
9,361,164 |
|
$ |
7,280,723 |
|
|
Gross Profit |
$ |
6,610,621 |
|
$ |
5,103,368 |
|
|
GP Percentage - product
revenue |
|
70.6 |
% |
|
70.1 |
% |
|
Pretax loss |
$ |
(2,610,986 |
) |
$ |
(1,493,224 |
) |
|
Net loss |
$ |
(2,610,986 |
) |
$ |
(1,212,224 |
) |
|
|
|
|
|
EBITDA (1) |
$ |
(2,244,398 |
) |
$ |
(1,166,804 |
) |
|
Adjusted EBITDA
(1) |
$ |
(644,377 |
) |
$ |
(33,878 |
) |
|
|
|
|
|
|
September 30, |
June 30, |
|
|
|
2018 |
|
|
2018 |
|
|
Long Term Debt |
$ |
- |
|
$ |
- |
|
|
Cash and cash
equivalents |
$ |
9,322,811 |
|
$ |
10,979,455 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Definitions and disclosures regarding non-GAAP
financial information including reconciliations are included on
page 6 of this press release.
Stavros Vizirgianakis, President and Chief
Executive Officer of Misonix stated, “Our fiscal 2019 first quarter
demonstrated accelerating demand for our leading ultrasonic
surgical products, reflecting the growing success of our direct
sales team and the continued execution of our go-to-market
strategies. Misonix generated 29% year-over-year growth in fiscal
first quarter revenues to a record $9.4 million, while maintaining
a healthy gross margin of approximately 70%. These factors drove a
30% rise in quarterly gross profit to $6.6 million.
“First quarter top-line growth reflects an 18%
increase in consumables revenue and a 59% rise in equipment
revenue. While some supply chain disruptions curtailed our ability
to further increase revenue, we believe the growing demand for our
products highlights the benefits of our ongoing investments in
R&D, personnel and distribution logistics as well as the strong
value proposition that our ultrasonic medical devices bring to
physicians, hospitals and most importantly, patients.
“At September’s NASS Conference, we unveiled our
new ultrasonic surgical platform, Nexus, which garnered strong
industry feedback, providing us with added confidence in its
potential and its ability to help us grow market share by
addressing a broader range of procedures beyond those addressed by
our current products. Nexus will present a highly compelling value
proposition for hospitals and physicians given its ease of use,
extensive functionalities and broad capabilities, and we remain on
schedule for the commercial launch of the platform during the
second half of fiscal 2019. While the development of Nexus led to
higher year-over-year R&D expenses, we are confident the
platform will be an important contributor to our long-term
growth.
“In the coming quarters, we look to further
leverage the meaningful company-wide investments and growth
initiatives of the last several quarters, including expanding our
in-house sales team, bringing Nexus to market and strengthening our
supply chain and operational systems. With a healthy balance sheet
and liquidity position, we are confident in our ability to continue
to invest in our future and to leverage opportunities that create
new value for our shareholders.”
Sales Performance Supplemental
Data
|
|
|
|
|
|
|
|
|
|
|
For the three months ended |
|
|
|
|
|
|
September 30, |
|
Net change |
|
|
|
2018 |
|
|
2017 |
|
$ |
|
% |
Total |
|
|
|
|
|
|
|
|
Consumables |
|
$ |
6,339,108 |
|
$ |
5,379,589 |
|
$ |
959,519 |
|
|
17.8 |
% |
Equipment |
|
|
3,022,056 |
|
|
1,901,134 |
|
|
1,120,922 |
|
|
59.0 |
% |
Total |
|
$ |
9,361,164 |
|
$ |
7,280,723 |
|
$ |
2,080,441 |
|
|
28.6 |
% |
|
|
|
|
|
|
|
|
|
Domestic: |
|
|
|
|
|
|
|
|
Consumables |
|
$ |
4,825,599 |
|
$ |
4,134,918 |
|
$ |
690,681 |
|
|
16.7 |
% |
Equipment |
|
|
578,919 |
|
|
592,424 |
|
|
(13,505 |
) |
|
-2.3 |
% |
Total |
|
$ |
5,404,518 |
|
$ |
4,727,342 |
|
$ |
677,176 |
|
|
14.3 |
% |
|
|
|
|
|
|
|
|
|
International: |
|
|
|
|
|
|
|
|
Consumables |
|
$ |
1,513,509 |
|
$ |
1,244,671 |
|
$ |
268,838 |
|
|
21.6 |
% |
Equipment |
|
|
2,443,137 |
|
|
1,308,710 |
|
|
1,134,427 |
|
|
86.7 |
% |
Total |
|
$ |
3,956,646 |
|
$ |
2,553,381 |
|
$ |
1,403,265 |
|
|
55.0 |
% |
|
|
|
|
|
|
|
|
|
Joe Dwyer, Chief Financial Officer, added, “Our
fiscal 2019 first quarter results continue to demonstrate our
ability to generate healthy revenue growth and improve our overall
financial position, while maintaining a disciplined and focused
approach that preserves our gross margin.
“We have undertaken initiatives to meet growing
demand for our products and to reduce inefficiencies in our
procurement and supply chain. In this regard, during the first
quarter, we transitioned to a more capable and efficient ERP system
and adopted new processes and procedures to ensure we have optimal
inventory levels that better match with customer demand. We have
also been actively working with our manufacturing partners to
improve productivity and fill backlog orders.
“We are also focused on preserving our strong
liquidity position, as we ended the quarter with $9.3 million in
cash while continuing to operate debt free. We remain committed to
growing the business through investments in both organic and
inorganic growth initiatives that bring complementary capabilities
to our product portfolio and generate attractive rates of returns
for our shareholders. Looking ahead to the balance of fiscal 2019,
we reiterate our guidance for product revenue growth that exceeds
20%, along with gross profit margins of approximately 70%.”
Fiscal First Quarter 2019 Conference
CallMisonix will host a conference call and webcast today,
Thursday, November 8, 2018, at 4:30 p.m. ET to discuss its
financial results and operations and host a question and answer
session. The dial in number for the audio conference call is
800-458-4148 (domestic) or 323-794-2598 (international), conference
ID 93343974. Participants may also listen to a live webcast of the
call at the Company’s website through the “Events and
Presentations” section under “Investor Relations” at
www.misonix.com. Following its completion, a replay of the
webcast will be available for 30 days on the Company’s website,
www.misonix.com.
About Misonix, Inc.Misonix, Inc. (NASDAQ: MSON)
designs, manufactures and markets ultrasonic medical devices for
the precise removal of hard and soft tissue, including bone
removal, wound debridement and ultrasonic aspiration. Misonix is
focused on leveraging its proprietary ultrasonic technology to
become the standard of care in operating rooms and clinics around
the world. Misonix's proprietary ultrasonic medical devices are
used in a growing number of medical procedures, including spine
surgery, neurosurgery, orthopedic surgery, cosmetic surgery,
laparoscopic surgery, and other surgical and medical applications.
At Misonix, Better Matters to us. That is why throughout the
Company’s history, Misonix has maintained its commitment to medical
technology innovation and the development of ultrasonic surgical
products that radically improve patient outcomes. Additional
information is available on the Company's web site at
www.misonix.com.
Safe Harbor StatementWith the exception of
historical information contained in this press release, content
herein may contain “forward looking statements” that are made
pursuant to the Safe Harbor Provisions of the Private Securities
Litigation Reform Act of 1995. These statements are based on
management’s current expectations and are subject to uncertainty
and changes in circumstances. Investors are cautioned that
forward-looking statements involve risks and uncertainties that
could cause actual results to differ materially from the statements
made. These factors include general economic conditions, delays and
risks associated with the performance of contracts, risks
associated with international sales and currency fluctuations,
uncertainties as a result of research and development, acceptable
results from clinical studies, including publication of results and
patient/procedure data with varying levels of statistical
relevancy, risks involved in introducing and marketing new
products, potential acquisitions, consumer and industry acceptance,
litigation and/or court proceedings, including the timing and
monetary requirements of such activities, the timing of finding
strategic partners and implementing such relationships, regulatory
risks including approval of pending and/or contemplated 510(k)
filings, the ability to achieve and maintain profitability in the
Company’s business lines, the impact of the pending investigation
by the Department of Justice and Securities Exchange Commission,
and other factors discussed in the Company’s Annual Report on Form
10-K for the fiscal year ended June 30, 2018, subsequent Quarterly
Reports on Form 10-Q and Current Reports on Form 8-K. The Company
disclaims any obligation to update its forward-looking
statements.
Contact: |
|
|
Joe
Dwyer |
|
Joseph
Jaffoni, Norberto Aja, Jennifer Neuman |
Chief
Financial Officer |
|
JCIR |
Misonix,
Inc. |
|
212-835-8500 or mson@jcir.com |
631-694-9555 |
|
|
Misonix, Inc. and
SubsidiariesCondensed Consolidated Statements of
Operations(Unaudited) |
|
|
|
|
|
For the three months ended |
|
|
September 30, |
|
|
|
2018 |
|
|
2017 |
|
|
|
|
|
Revenues |
|
|
|
Product |
|
$ |
9,361,164 |
|
$ |
7,280,723 |
|
Total revenue |
|
|
9,361,164 |
|
|
7,280,723 |
|
|
|
|
|
Cost of goods sold |
|
|
2,750,543 |
|
|
2,177,355 |
|
Gross profit |
|
|
6,610,621 |
|
|
5,103,368 |
|
|
|
|
|
Operating
expenses: |
|
|
|
Selling
expenses |
|
|
4,735,005 |
|
|
3,570,713 |
|
General
and administrative expenses |
|
|
3,183,384 |
|
|
2,573,131 |
|
Research
and development expenses |
|
|
1,304,766 |
|
|
901,274 |
|
Total operating
expenses |
|
|
9,223,155 |
|
|
7,045,118 |
|
Loss from
operations |
|
|
(2,612,534 |
) |
|
(1,941,750 |
) |
|
|
|
|
Other income
(expense): |
|
|
|
Interest
income |
|
|
19,813 |
|
|
13 |
|
Royalty
income |
|
|
- |
|
|
452,971 |
|
Other |
|
|
(18,265 |
) |
|
(4,458 |
) |
Total other income |
|
|
1,548 |
|
|
448,526 |
|
|
|
|
|
Loss from operations
before income taxes |
|
|
(2,610,986 |
) |
|
(1,493,224 |
) |
|
|
|
|
Income tax
(benefit) |
|
|
- |
|
|
(281,000 |
) |
Net loss |
|
$ |
(2,610,986 |
) |
$ |
(1,212,224 |
) |
|
|
|
|
Net loss per
share: |
|
|
|
Basic |
|
$ |
(0.29 |
) |
$ |
(0.14 |
) |
Diluted |
|
$ |
(0.29 |
) |
$ |
(0.14 |
) |
|
|
|
|
Weighted average shares
- Basic |
|
|
9,100,123 |
|
|
8,958,405 |
|
Weighted average shares
- Diluted |
|
|
9,100,123 |
|
|
8,958,405 |
|
Misonix, Inc. and
SubsidiariesCondensed Consolidated Balance
Sheets |
|
|
|
|
|
|
|
|
September 30, |
|
June 30, |
|
|
|
|
2018 |
|
|
|
2018 |
|
|
|
|
(Unaudited) |
|
|
|
Assets |
|
|
|
|
|
Current assets: |
|
|
|
|
|
Cash and cash
equivalents |
|
$ |
9,322,811 |
|
|
$ |
10,979,455 |
|
|
Accounts receivable,
less allowance for doubtful accounts of $200,000 and $200,000,
respectively |
|
|
5,535,271 |
|
|
|
5,245,549 |
|
|
Inventories, net |
|
|
4,920,350 |
|
|
|
5,019,886 |
|
|
Prepaid expenses and
other current assets |
|
|
583,314 |
|
|
|
611,647 |
|
|
Total current
assets |
|
|
20,361,746 |
|
|
|
21,856,537 |
|
|
|
|
|
|
|
|
Property, plant and
equipment, net of accumulated amortization and depreciation of
$9,355,964 and $9,023,235, respectively |
|
|
4,346,826 |
|
|
|
4,188,378 |
|
|
Patents, net of
accumulated amortization of $1,097,252 and $1,063,393,
respectively |
|
|
773,668 |
|
|
|
757,447 |
|
|
Goodwill |
|
|
1,701,094 |
|
|
|
1,701,094 |
|
|
Contract assets |
|
|
960,000 |
|
|
|
- |
|
|
Intangible and other
assets |
|
|
468,013 |
|
|
|
517,295 |
|
|
Total assets |
|
$ |
28,611,347 |
|
|
$ |
29,020,751 |
|
|
|
|
|
|
|
|
Liabilities and
shareholders' equity |
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
Accounts payable |
|
$ |
2,082,704 |
|
|
$ |
1,794,098 |
|
|
Accrued expenses and
other current liabilities |
|
|
2,344,903 |
|
|
|
2,812,172 |
|
|
Total current
liabilities |
|
|
4,427,607 |
|
|
|
4,606,270 |
|
|
|
|
|
|
|
|
Deferred income |
|
|
13,303 |
|
|
|
13,303 |
|
|
Total liabilities |
|
|
4,440,910 |
|
|
|
4,619,573 |
|
|
|
|
|
|
|
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity: |
|
|
|
|
|
Common stock, $.01 par
value-shares authorized 40,000,000; 9,481,251 and 9,430,466 shares
issued and outstanding in each period |
|
|
94,822 |
|
|
|
94,305 |
|
|
Additional paid-in
capital |
|
|
41,192,701 |
|
|
|
39,772,973 |
|
|
Accumulated
deficit |
|
|
(17,117,086 |
) |
|
|
(15,466,100 |
) |
|
Total shareholders'
equity |
|
|
24,170,437 |
|
|
|
24,401,178 |
|
|
Total liabilities and
shareholders' equity |
|
$ |
28,611,347 |
|
|
$ |
29,020,751 |
|
|
|
|
|
|
|
|
Use of Non-GAAP Financial
Measures
The Company has presented the following non-GAAP
financial measures in this press release: EBITDA and Adjusted
EBITDA. The Company defines EBITDA as the net income (loss) as
reported under GAAP, plus depreciation and amortization expense,
interest expense and income tax expense (benefit). The Company
defines Adjusted EBITDA as EBITDA plus non-cash stock compensation
expense and engineering costs associated with its development of
Nexus, its next generation platform, which will not be a recurring
cost when the project is completed in the second half of fiscal
2019.
We present these non-GAAP measures because we
believe these measures are useful indicators of our operating
performance. Our management uses these non-GAAP measures
principally as a measure of our operating performance and believes
that these measures are useful to investors because they are
frequently used by analysts, investors and other interested parties
to evaluate the operating performance of companies in our industry.
We also believe that these measures are useful to our management
and investors as a measure of comparative operating performance
from period to period.
|
|
|
|
Misonix, Inc. and Subsidiaries |
|
Reconciliation of GAAP Results to Non-GAAP
Measures |
|
(unaudited) |
|
|
|
|
|
|
Three Months Ended |
|
|
September 30, |
|
|
|
2018 |
|
|
2017 |
|
|
|
|
|
|
EBITDA: |
|
|
|
Net loss |
$ |
(2,610,986 |
) |
$ |
(1,212,224 |
) |
|
Depreciation and
amortization |
|
366,588 |
|
|
326,420 |
|
|
Income tax
benefits |
|
- |
|
|
(281,000 |
) |
|
EBITDA |
|
(2,244,398 |
) |
|
(1,166,804 |
) |
|
|
|
|
|
Non-cash stock
compensation |
|
1,004,498 |
|
|
625,293 |
|
|
Nexus next generation
engineering |
|
595,523 |
|
|
507,633 |
|
|
Adjusted EBITDA |
$ |
(644,377 |
) |
$ |
(33,878 |
) |
|
|
|
|
|
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