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 third quarter ended March 31, 2019 as
summarized below:
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
March 31, |
|
March 31, |
|
|
|
2019 |
|
|
2018 |
|
|
|
2019 |
|
|
2018 |
|
|
|
|
|
|
|
|
|
Revenue |
$ |
9,556,590 |
|
$ |
12,439,132 |
|
|
$ |
29,094,208 |
|
$ |
28,043,700 |
|
|
Gross Profit |
$ |
6,755,019 |
|
$ |
9,807,239 |
|
|
$ |
20,494,014 |
|
$ |
20,768,627 |
|
|
GP Percentage - product
revenue |
|
70.7 |
% |
|
68.8 |
% |
|
|
70.4 |
% |
|
69.7 |
% |
|
Pretax (loss) income |
$ |
(1,589,681 |
) |
$ |
2,239,115 |
|
|
$ |
(5,040,998 |
) |
$ |
(587,378 |
) |
|
Net (loss) income |
$ |
(1,589,681 |
) |
$ |
2,239,115 |
|
|
$ |
(5,040,998 |
) |
$ |
(5,830,800 |
) |
|
|
|
|
|
|
|
|
EBITDA (1) |
$ |
(1,176,610 |
) |
$ |
2,576,621 |
|
|
$ |
(3,860,792 |
) |
$ |
459,133 |
|
|
Adjusted EBITDA (1) |
$ |
(89,638 |
) |
$ |
3,983,217 |
|
|
$ |
(193,326 |
) |
$ |
4,438,049 |
|
|
|
|
|
|
|
|
|
|
March 31, |
June 30, |
|
|
|
|
|
|
2019 |
|
|
2018 |
|
|
|
|
|
Long Term Debt |
$ |
- |
|
$ |
- |
|
|
|
|
|
Cash and cash equivalents |
$ |
9,012,220 |
|
$ |
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, “We are pleased with the
ongoing momentum across our wound and surgical businesses in the
fiscal third quarter and with the direction in which we are headed.
Excluding non-recurring license fee revenue, product revenue growth
in excess of 21% for the first nine months of fiscal 2019 is pacing
in line with our prior guidance and we continue to maintain a
healthy gross margin on product sales of approximately 70%. The
impact of the success of our strategies regarding our go-to-market,
operations and logistics, new product development, geographic
market penetration and resource utilization initiatives is once
again evidenced in our results and in the progress we are making
towards positioning Misonix for sustainable growth.
“Robust consumables and equipment sales resulted
in product revenue growth of over 13% for the third quarter, when
excluding $4.0 million in license fee revenue from our Chinese
partner recorded in the comparable prior year period. The overall
financial benefits of our initiatives focused on shifting our sales
mix toward higher margin products are becoming more visible as
reflected by the 17% year-over-year increase in third quarter
consumables revenue, including domestic and international
consumables sales growth of 12% and 29%, respectively. While third
quarter domestic equipment sales were challenged, as was expected
given the introduction of Nexus later this year, international
equipment sales continued to grow at over 10% versus the prior year
period.
“During the third quarter, we made further
progress in bringing Nexus, our new ultrasonic surgical platform,
to market on the back of its unveiling at the NASS Conference, and
we expect that we will be able to begin booking sales in mid-2019,
subject to FDA approval of our 510(k) application. We believe Nexus
holds great potential serving as an additional growth engine and
opening cross-selling opportunities and broadening our range of
procedures by presenting surgeons with a powerful tool to remove
hard and soft tissue with greater control, accuracy and
efficiency.
“Last week we announced the acquisition of
Solsys Medical in an all-stock transaction that squarely meets our
criteria in terms of advancing Misonix’s goals for growth and the
enhancement of shareholder value. This merger creates a platform
enterprise with meaningful revenue scale and commercial reach. The
combined entity will have dedicated wound and surgical sales forces
with over 130 resources and is expected to generate pro-forma
annual revenues in excess of $80 million in the first year
following the completion of the transaction. This transformative
transaction is consistent with our prior messaging and furthers our
commitment to provide a compelling value proposition to healthcare
practitioners and patients by offering innovative and highly
complementary products and solutions, which we are confident, will
translate to strong financial results for our shareholders. Upon
closing, we look forward to leveraging the momentum Solsys Medical
has in key markets across wound care and the additional options
TheraSkin provides to address complex wounds.
“We reiterate our guidance for product revenue
growth of 20% for full fiscal year 2019, and for gross profit
margins of 70%. Going forward, we believe that the direction we are
headed in will enable us to meet our goal of enhancing long-term
shareholder value as we move through the balance of fiscal 2019 and
beyond.”
Sales Performance Supplemental
Data
|
|
|
For the three months ended |
|
|
|
|
|
|
|
March 31, |
|
Net change |
|
|
|
|
2019 |
|
|
2018 |
|
$ |
|
% |
|
Total |
|
|
|
|
|
|
|
|
|
Consumables |
|
$ |
6,870,398 |
|
$ |
5,898,937 |
|
$ |
971,461 |
|
|
16.5 |
% |
|
Equipment |
|
|
2,686,192 |
|
|
2,530,195 |
|
|
155,997 |
|
|
6.2 |
% |
|
Total Product |
|
|
9,556,590 |
|
|
8,429,132 |
|
|
1,127,458 |
|
|
13.4 |
% |
|
License |
|
|
- |
|
|
4,010,000 |
|
|
(4,010,000 |
) |
|
-100.0 |
% |
|
Total |
|
$ |
9,556,590 |
|
$ |
12,439,132 |
|
$ |
(2,882,542 |
) |
|
-23.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
Domestic: |
|
|
|
|
|
|
|
|
|
Consumables |
|
$ |
4,862,308 |
|
$ |
4,340,759 |
|
$ |
521,549 |
|
|
12.0 |
% |
|
Equipment |
|
|
547,470 |
|
|
590,269 |
|
|
(42,799 |
) |
|
-7.3 |
% |
|
Total |
|
$ |
5,409,778 |
|
$ |
4,931,028 |
|
$ |
478,750 |
|
|
9.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
International: |
|
|
|
|
|
|
|
|
|
Consumables |
|
$ |
2,008,090 |
|
$ |
1,558,178 |
|
$ |
449,912 |
|
|
28.9 |
% |
|
Equipment |
|
|
2,138,722 |
|
|
1,939,926 |
|
|
198,796 |
|
|
10.2 |
% |
|
Total |
|
$ |
4,146,812 |
|
$ |
3,498,104 |
|
$ |
648,708 |
|
|
18.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
License |
|
$ |
- |
|
$ |
4,010,000 |
|
$ |
(4,010,000 |
) |
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
Joe Dwyer, Chief Financial Officer, added, “Our
fiscal 2019 third quarter results marked another period of strong
product revenue growth for Misonix, while showcasing our ability to
maintain a healthy gross profit margin, balance sheet and liquidity
position.
“The initiatives we implemented during the first
half of the year began to take hold in the fiscal third quarter and
are helping us to eliminate inefficiencies across our
enterprise-wide operations allowing us to successfully and
efficiently meet the increasing demand, particularly in our
consumables, and to best position us to fully maximize the
potential of our next generation of ultrasonic products. In
addition, we are already working with our operating teams to
develop a comprehensive integration plan that will ensure a smooth
transition of Solsys Medical onto our platform, which will enable
us to more quickly realize the value of this compelling combination
for our patients and our shareholders.
“Looking ahead, we have the capital flexibility
we need on the back of the Solsys Medical acquisition to continue
to support and invest in our products and in our people, and to
diligently and effectively pursue new opportunities.”
Fiscal Third Quarter 2019 Conference Call
Misonix will host a conference call and webcast
today, Wednesday, May 8, 2019, 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
800-458-4121 (domestic) or 323-794-2093 (international), conference
ID 2734632. 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 Statement
With 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 the ability to satisfy the conditions to closing of
the transactions (the “Transactions”) with Solsys Medical, LLC
(“Solsys”), on the expected timing or at all, the occurrence of any
event that could give rise to the termination of the merger
agreement with Solsys, the risk of stockholder litigation relating
to the Transactions, including resulting expense or delay, higher
than expected or unexpected costs associated with or relating to
the Transactions, the risk that expected benefits, synergies and
growth prospects of the Transactions may not be achieved in a
timely manner, or at all, the risk that Solsys’s business may not
be successfully integrated with Misonix following the closing, the
risk that Misonix and Solsys will be unable to retain and hire key
personnel, the risk that disruption from the Transactions may
adversely affect Misonix’s or Solsys’s business and relationships
with their customers, suppliers or employees, 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 and
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 NeumanChief Financial
Officer
JCIRMisonix, Inc.
212-835-8500 or mson@jcir.com631-694-9555
Misonix, Inc. and
SubsidiariesCondensed Consolidated Statements of
Operations(Unaudited)
|
|
For the three months ended |
|
For the nine months ended |
|
|
March 31, |
|
March 31, |
|
|
|
2019 |
|
|
2018 |
|
|
|
2019 |
|
|
2018 |
|
|
|
|
|
|
|
|
Revenues |
|
|
|
|
|
|
Product |
|
$ |
9,556,590 |
|
$ |
8,429,132 |
|
|
$ |
29,094,208 |
|
$ |
24,033,700 |
|
License |
|
|
- |
|
|
4,010,000 |
|
|
|
- |
|
|
4,010,000 |
|
Total revenue |
|
|
9,556,590 |
|
|
12,439,132 |
|
|
|
29,094,208 |
|
|
28,043,700 |
|
|
|
|
|
|
|
|
Cost of goods sold |
|
|
2,801,571 |
|
|
2,631,893 |
|
|
|
8,600,194 |
|
|
7,275,073 |
|
Gross profit |
|
|
6,755,019 |
|
|
9,807,239 |
|
|
|
20,494,014 |
|
|
20,768,627 |
|
Operating expenses: |
|
|
|
|
|
|
Selling expenses |
|
|
4,414,710 |
|
|
4,447,421 |
|
|
|
13,950,357 |
|
|
11,937,649 |
|
General and
administrative expenses |
|
|
2,512,510 |
|
|
1,925,086 |
|
|
|
8,043,078 |
|
|
6,879,077 |
|
Research and development
expenses |
|
|
1,426,483 |
|
|
1,199,895 |
|
|
|
3,570,468 |
|
|
3,058,374 |
|
Total operating expenses |
|
|
8,353,703 |
|
|
7,572,402 |
|
|
|
25,563,903 |
|
|
21,875,100 |
|
(Loss) income from
operations |
|
|
(1,598,684 |
) |
|
2,234,837 |
|
|
|
(5,069,889 |
) |
|
(1,106,473 |
) |
|
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
|
Interest income |
|
|
22,653 |
|
|
9,074 |
|
|
|
59,708 |
|
|
9,131 |
|
Royalty income |
|
|
- |
|
|
916 |
|
|
|
- |
|
|
525,438 |
|
Other |
|
|
(13,650 |
) |
|
(5,712 |
) |
|
|
(30,817 |
) |
|
(15,474 |
) |
Total other income |
|
|
9,003 |
|
|
4,278 |
|
|
|
28,891 |
|
|
519,095 |
|
|
|
|
|
|
|
|
(Loss) income from operations
before income taxes |
|
|
(1,589,681 |
) |
|
2,239,115 |
|
|
|
(5,040,998 |
) |
|
(587,378 |
) |
|
|
|
|
|
|
|
Income tax expense |
|
|
- |
|
|
- |
|
|
|
- |
|
|
5,243,422 |
|
Net (loss) income |
|
$ |
(1,589,681 |
) |
$ |
2,239,115 |
|
|
$ |
(5,040,998 |
) |
$ |
(5,830,800 |
) |
|
|
|
|
|
|
|
Net (loss) income per
share: |
|
|
|
|
|
|
Basic |
|
$ |
(0.17 |
) |
$ |
0.24 |
|
|
$ |
(0.55 |
) |
$ |
(0.65 |
) |
Diluted |
|
$ |
(0.17 |
) |
$ |
0.23 |
|
|
$ |
(0.55 |
) |
$ |
(0.65 |
) |
|
|
|
|
|
|
|
Weighted average shares -
Basic |
|
|
9,390,665 |
|
|
9,028,506 |
|
|
|
9,245,879 |
|
|
8,999,938 |
|
Weighted average shares -
Diluted |
|
|
9,390,665 |
|
|
9,549,144 |
|
|
|
9,245,879 |
|
|
8,999,938 |
|
Misonix, Inc. and
SubsidiariesCondensed Consolidated Balance
Sheets
|
|
March 31, |
|
June 30, |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
(Unaudited) |
|
|
Assets |
|
|
|
|
Current assets: |
|
|
|
|
Cash and cash equivalents |
|
$ |
9,012,220 |
|
|
$ |
10,979,455 |
|
Accounts receivable, less
allowance for doubtful accounts of$160,000 and $200,000,
respectively |
|
|
5,333,839 |
|
|
|
5,245,549 |
|
Inventories, net |
|
|
6,332,586 |
|
|
|
5,019,886 |
|
Prepaid expenses and other
current assets |
|
|
864,452 |
|
|
|
611,647 |
|
Total current assets |
|
|
21,543,097 |
|
|
|
21,856,537 |
|
|
|
|
|
|
Property, plant and equipment,
net of accumulated amortizationand depreciation of $10,097,703 and
$9,023,235, respectively |
|
|
4,394,548 |
|
|
|
4,188,378 |
|
Patents, net of accumulated
amortization of $1,169,131 and$1,063,393, respectively |
|
|
779,621 |
|
|
|
757,447 |
|
Goodwill |
|
|
1,701,094 |
|
|
|
1,701,094 |
|
Contract assets |
|
|
960,000 |
|
|
|
- |
|
Intangible and other
assets |
|
|
433,842 |
|
|
|
517,295 |
|
Total assets |
|
$ |
29,812,202 |
|
|
$ |
29,020,751 |
|
|
|
|
|
|
Liabilities and
shareholders' equity |
|
|
|
|
Current liabilities: |
|
|
|
|
Accounts payable |
|
$ |
3,521,657 |
|
|
$ |
1,794,098 |
|
Accrued expenses and other
current liabilities |
|
|
2,325,023 |
|
|
|
2,411,172 |
|
Deferred income |
|
|
3,995 |
|
|
|
13,303 |
|
Total current liabilities |
|
|
5,850,675 |
|
|
|
4,218,573 |
|
|
|
|
|
|
Non current liabilities |
|
|
401,000 |
|
|
|
401,000 |
|
Total liabilities |
|
$ |
6,251,675 |
|
|
$ |
4,619,573 |
|
|
|
|
|
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
|
Shareholders'
equity: |
|
|
|
|
Common stock, $.01 par
value-shares authorized 40,000,000;9,641,103 and 9,430,466 shares
issued and outstanding in eachperiod |
|
|
96,411 |
|
|
|
94,305 |
|
Additional paid-in
capital |
|
|
43,011,214 |
|
|
|
39,772,973 |
|
Accumulated deficit |
|
|
(19,547,098 |
) |
|
|
(15,466,100 |
) |
Total shareholders'
equity |
|
|
23,560,527 |
|
|
|
24,401,178 |
|
|
|
|
|
|
Total liabilities and
shareholders' equity |
|
$ |
29,812,202 |
|
|
$ |
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 |
|
Nine Months Ended |
|
March 31, |
|
March 31, |
|
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
|
|
|
|
|
|
EBITDA: |
|
|
|
|
|
Net (loss) income |
$ |
(1,589,681 |
) |
$ |
2,239,115 |
|
$ |
(5,040,998 |
) |
$ |
(5,830,800 |
) |
Depreciation and
amortization |
|
413,071 |
|
|
337,506 |
|
|
1,180,206 |
|
|
1,046,511 |
|
Income tax expense |
|
- |
|
|
- |
|
|
- |
|
|
5,243,422 |
|
EBITDA |
|
(1,176,610 |
) |
|
2,576,621 |
|
|
(3,860,792 |
) |
|
459,133 |
|
|
|
|
|
|
|
Non-cash stock compensation |
|
384,589 |
|
|
611,126 |
|
|
1,889,175 |
|
|
2,081,021 |
|
Nexus next generation
engineering |
|
702,383 |
|
|
795,470 |
|
|
1,778,291 |
|
|
1,897,895 |
|
Adjusted EBITDA |
$ |
(89,638 |
) |
$ |
3,983,217 |
|
$ |
(193,326 |
) |
$ |
4,438,049 |
|
|
|
|
|
|
|
Misonix (NASDAQ:MSON)
Historical Stock Chart
From Mar 2024 to Apr 2024
Misonix (NASDAQ:MSON)
Historical Stock Chart
From Apr 2023 to Apr 2024