MINNEAPOLIS, Oct. 27, 2011 /PRNewswire/ -- Uroplasty, Inc.
(Nasdaq: UPI), a medical device company that develops, manufactures
and markets innovative proprietary products to treat voiding
dysfunctions, today reported financial results for the second
quarter of fiscal 2012 ended September 30,
2011.
Global sales increased 53% to $5.0
million in the fiscal second quarter of 2012, compared with
$3.2 million in the fiscal second
quarter last year. The growth reflects continued strong sales
in the U.S., up 86% in the fiscal second quarter compared with the
prior year. U.S. sales growth was driven by a 95% increase in
sales of the Urgent PC Neuromodulation System and a 75% increase in
sales of Macroplastique.
"This was a strong quarter for Uroplasty, reflecting growth in
both Urgent PC Systems and Macroplastique products, demonstrating
solid execution of our plans to drive sales," said David Kaysen, President and CEO of Uroplasty,
Inc. "The number of active U.S. Urgent PC customers during
the fiscal second quarter increased over the fiscal first quarter
by 108 to a record of 509. We sold 2,579 lead set boxes in
the U.S. during the quarter, an increase of 30% over the fiscal
first quarter of 1,985. The strength in Macroplastique sales was
the result of our focus on this product line to quickly capture
share with the exit of a former competitor from the market."
Urgent PC sales in the U.S. were $2.0
million in the quarter ended September 30, 2011, compared with $1.0 million in the same quarter last year.
The growth in Urgent PC sales is the result of the expanded
sales and marketing efforts the Company has made subsequent to
obtaining the new Category I CPT® code for posterior tibial nerve
stimulation (PTNS) that became effective in January 2011, and the increased reimbursement
coverage by insurance carriers. Reimbursement coverage for PTNS
under the new code has been confirmed by 10 of the 13 regional
Medicare carriers and a growing number of large private payers.
"We have focused on expanding coverage from Medicare carriers
and private payers for PTNS treatments, and today insurers covering
approximately 115 million lives provide coverage for PTNS,"
continued Mr. Kaysen. "In addition to expanding our customer
base, our sales representatives are focused on increasing
utilization by the many new customers we have added over the past
several quarters."
Macroplastique sales also grew significantly during the fiscal
second quarter. Macroplastique sales in the U.S. totaled
$1.4 million in the recent second
quarter compared to $791,000 during
the same quarter last year. Growth of Macroplastique sales
was due to the Company's focus on generating sales with the exit of
a former competitor from the bulking market.
"During the quarter, we made very good progress in growing sales
and our share of the bulking market, particularly in the U.S.
We set another record for Macroplastique sales in the fiscal
second quarter and currently are on a $5.5
million annual run rate, which we do not expect to change
significantly in the coming quarters," Mr. Kaysen commented.
Net sales to customers outside of the U.S. for the fiscal second
quarter ended September 30, 2011
totaled $1.5 million, an increase of
10% from $1.4 million in the same
quarter last year. Excluding the impact of foreign exchange
translation, sales outside the U.S. increased by approximately
2%.
The Company reported an operating loss of $1.3 million in the fiscal second quarter,
compared with $947,000 in the same
quarter last year, primarily due to the investments made to expand
the sales and marketing organization. Excluding non-cash
charges for share-based compensation and depreciation and
amortization expense, the non-GAAP operating loss was $837,000 in the fiscal second quarter, compared
with $591,000 in the fiscal second
quarter a year ago.
For the six month period ended September
30, 2011, sales grew 53% to $9.6
million, reflecting an 82% increase in U.S. sales and a 17%
increase in sales outside the U.S. In the U.S., sales of
Urgent PC increased 85% and Macroplastique sales grew 78%.
The Company ended the quarter with cash, cash equivalents and
cash investments of $17.3
million.
"Our sales staff continues to execute very well. They worked
hard to generate sales of Macroplastique and made excellent
progress in bringing in new physician customers for Urgent PC.
At quarter end, we had a field staff of 40 sales reps.
By early November, based on hiring confirmations, we expect
to have 42 sales reps, five regional sales directors and five
reimbursement managers.
"We see an excellent opportunity for continued growth in our
markets. To ensure that we maximize the potential we will be
focused on driving utilization with our existing customers, as well
as seeking new customers. With our significant market
opportunity, a strengthening sales and marketing organization, and
solid financial position, we anticipate continued growth in sales
and improved results throughout fiscal 2012," concluded Mr.
Kaysen.
Conference Call
Uroplasty will host an audio conference call today at
3:30 pm Central, 4:30 pm Eastern, to review the financial results
for the second quarter ended September 30,
2011. David Kaysen, President
and Chief Executive Officer, and Medi
Jiwani, Vice President, Chief Financial Officer and
Treasurer, will host the call. Individuals wishing to participate
in the conference call should dial 888-549-7880. An audio replay
will be available for 30 days following the call at 800-406-7325
(domestic) or 303-590-3030 (international), with the passcode
4481369#.
About Uroplasty, Inc.
Uroplasty, Inc., headquartered in Minnetonka, Minnesota, with wholly-owned
subsidiaries in The Netherlands
and the United Kingdom, is a
medical device company that develops, manufactures and markets
innovative proprietary products for the treatment of voiding
dysfunctions. Our focus is the continued commercialization of
our Urgent PC Neuromodulation System, the only FDA-cleared system
that delivers posterior tibial nerve stimulation for the
office-based treatment of overactive bladder and the associated
symptoms of urgency, frequency and urge incontinence.
We also offer Macroplastique Implants, an injectable urethral
bulking agent for the treatment of adult female stress urinary
incontinence primarily due to intrinsic sphincter deficiency. For
more information on the company and its products, please visit
Uroplasty, Inc. at www.uroplasty.com.
Forward-Looking Information
This press release contains forward-looking statements that
reflect our best estimates regarding future events and financial
performance. These forward-looking statements are subject to risks
and uncertainties that could cause actual results to differ
materially from our anticipated results. We discuss in detail the
factors that may affect the achievement of our forward-looking
statements in our Annual Report on Form 10-K filed with the SEC.
In particular, we cannot be certain that we will ever achieve
sustained profitability, that the rate of reimbursement for PTNS
treatments will be adequate to justify the cost of our product,
that other Medicare carriers or private payers will provide
coverage for this treatment or that existing carriers and payers
will not change their coverage decisions, that the rate of adoption
of our productions by new customers will continue, or that any of
the other risks identified in our 10-K will not adversely affect
our expectations as described in these forward-looking
statements.
CPT is a registered trademark of the American Medical
Association.
For Further
Information:
Uroplasty, Inc.
David Kaysen, President and CEO,
or
Medi Jiwani, Vice President,
CFO, and Treasurer
952.426.6140
|
EVC Group
Doug Sherk/Jenifer Kirtland
(Investors)
415.568.4887
Chris Gale (Media)
646.201.5431
|
|
|
|
|
|
|
|
UROPLASTY,
INC. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
|
|
|
Three Months
Ended
September
30,
|
|
Six Months
Ended
September
30,
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
$4,967,621
|
|
$3,244,823
|
|
$9,620,743
|
|
$6,280,322
|
|
Cost of goods sold
|
759,336
|
|
594,469
|
|
1,468,901
|
|
1,105,165
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
4,208,285
|
|
2,650,354
|
|
8,151,842
|
|
5,175,157
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
General and
administrative
|
942,557
|
|
897,368
|
|
1,964,415
|
|
1,747,877
|
|
Research and
development
|
456,871
|
|
472,008
|
|
912,631
|
|
872,637
|
|
Selling and
marketing
|
3,869,875
|
|
2,017,420
|
|
7,464,017
|
|
4,005,946
|
|
Amortization
|
214,056
|
|
210,682
|
|
426,371
|
|
421,450
|
|
|
5,483,359
|
|
3,597,478
|
|
10,767,434
|
|
7,047,910
|
|
|
|
|
|
|
|
|
|
|
Operating loss
|
(1,275,074)
|
|
(947,124)
|
|
(2,615,592)
|
|
(1,872,753)
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
|
Interest income
|
13,716
|
|
17,999
|
|
31,550
|
|
31,627
|
|
Interest
expense
|
(57)
|
|
(1,938)
|
|
(57)
|
|
(3,885)
|
|
Foreign currency exchange
gain (loss)
|
(8,587)
|
|
10,574
|
|
(3,279)
|
|
12,364
|
|
|
5,072
|
|
26,635
|
|
28,214
|
|
40,106
|
|
|
|
|
|
|
|
|
|
|
Loss before income
taxes
|
(1,270,002)
|
|
(920,489)
|
|
(2,587,378)
|
|
(1,832,647)
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
8,485
|
|
2,183
|
|
22,416
|
|
19,333
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
$(1,278,487)
|
|
$(922,672)
|
|
$(2,609,794)
|
|
$(1,851,980)
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted loss per
common share
|
$(0.06)
|
|
$(0.05)
|
|
$(0.13)
|
|
$(0.11)
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares
outstanding:
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
20,689,000
|
|
19,088,000
|
|
20,659,000
|
|
17,208,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UROPLASTY,
INC. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED BALANCE SHEETS
(Unaudited)
|
|
|
September
30, 2011
|
|
March 31,
2011
|
|
|
|
|
|
|
Assets
|
|
|
|
|
Current assets:
|
|
|
|
|
Cash and cash
equivalents & short-term investments
|
$14,162,296
|
|
$14,084,150
|
|
Accounts
receivable, net
|
2,255,593
|
|
2,085,262
|
|
Inventories
|
738,534
|
|
677,960
|
|
Other
|
489,730
|
|
348,100
|
|
Total current
assets
|
17,646,153
|
|
17,195,472
|
|
|
|
|
|
|
Property, plant, and
equipment, net
|
1,160,008
|
|
1,210,542
|
|
Intangible assets,
net
|
1,365,963
|
|
1,725,136
|
|
Long-term
investments
|
3,160,300
|
|
5,508,701
|
|
Deferred tax
assets
|
86,839
|
|
87,031
|
|
Total assets
|
$23,419,263
|
|
$25,726,882
|
|
|
|
Liabilities and Shareholders'
Equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
$626,650
|
|
$658,107
|
|
Current
portion – deferred rent
|
35,000
|
|
35,000
|
|
Income tax
payable
|
8,193
|
|
6,901
|
|
Accrued
liabilities:
|
|
|
|
|
Compensation
|
1,479,377
|
|
1,597,657
|
|
Other
|
339,299
|
|
247,451
|
|
|
|
|
|
|
Total current
liabilities
|
2,488,519
|
|
2,545,116
|
|
|
|
|
|
|
Deferred rent – less
current portion
|
59,658
|
|
77,272
|
|
Accrued pension
liability
|
396,379
|
|
475,845
|
|
|
|
|
|
|
Total
liabilities
|
2,944,556
|
|
3,098,233
|
|
|
|
|
|
|
Total shareholders'
equity
|
20,474,707
|
|
22,628,649
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$23,419,263
|
|
$25,726,882
|
|
|
|
|
|
|
|
|
|
UROPLASTY,
INC. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
|
|
|
Six Months
Ended
September
30,
|
|
|
2011
|
|
2010
|
|
Cash flows from operating
activities:
|
|
|
|
|
Net loss
|
$(2,609,794)
|
|
$(1,851,980)
|
|
Adjustments to reconcile net
loss to net cash used in operating activities:
|
|
|
|
|
Depreciation and
amortization
|
552,275
|
|
567,576
|
|
Loss on disposal of
equipment
|
6,475
|
|
192
|
|
Amortization of premium on
marketable securities
|
17,039
|
|
-
|
|
Share-based consulting
expense
|
2,787
|
|
8,202
|
|
Share-based compensation
expense
|
288,754
|
|
140,490
|
|
Deferred income
taxes
|
(3,040)
|
|
(4,925)
|
|
Deferred rent
|
(17,614)
|
|
(17,614)
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
Accounts receivable,
net
|
(196,435)
|
|
(187,514)
|
|
Inventories
|
(65,281)
|
|
(125,674)
|
|
Other current
assets
|
(143,370)
|
|
(57,949)
|
|
Accounts
payable
|
(27,130)
|
|
1,196
|
|
Accrued
liabilities
|
(20,515)
|
|
94,179
|
|
Accrued pension liability,
net
|
(65,303)
|
|
(48,246)
|
|
Net cash used in operating
activities
|
(2,281,152)
|
|
(1,482,067)
|
|
|
|
|
|
|
Cash flows from investing
activities:
|
|
|
|
|
Proceeds from maturity of
marketable securities
|
11,018,268
|
|
2,500,000
|
|
Purchases of marketable
securities
|
(5,280,042)
|
|
(5,000,000)
|
|
Purchases of property,
plant and equipment
|
(106,325)
|
|
(94,506)
|
|
Purchase of intangible
assets
|
(67,198)
|
|
(11,300)
|
|
Net cash provided by (used in)
investing activities
|
5,564,703
|
|
(2,605,806)
|
|
|
|
|
|
|
Cash flows from financing
activities:
|
|
|
|
|
Net proceeds from public
offering of common stock
|
-
|
|
14,917,059
|
|
Net proceeds from exercise
of warrants and options
|
207,050
|
|
2,275,906
|
|
Net cash provided by financing
activities
|
207,050
|
|
17,192,965
|
|
|
|
|
|
|
Effect of exchange rate changes
on cash and cash equivalents
|
(15,824)
|
|
(28,674)
|
|
|
|
|
|
|
Net increase in cash and cash
equivalents
|
3,474,777
|
|
13,076,418
|
|
|
|
|
|
|
Cash and cash equivalents at
beginning of period
|
6,063,573
|
|
2,311,269
|
|
|
|
|
|
|
Cash and cash equivalents at end
of period
|
$9,538,350
|
|
$15,387,687
|
|
|
|
|
|
|
Supplemental disclosure of cash
flow information:
|
|
|
|
|
Cash paid during the period for
interest
|
$57
|
|
$-
|
|
Cash paid (received) during the
period for income taxes
|
24,074
|
|
(248)
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Financial Measures: The following
table reconciles our operating loss calculated in accordance with
accounting principles generally accepted in the U.S. (GAAP) to
non-GAAP financial measures that exclude non-cash charges for
share-based compensation, and depreciation and amortization
expenses from gross profit, operating expenses and operating loss.
The non-GAAP financial measures used by management and
disclosed by us are not a substitute for, or superior to, financial
measures and consolidated financial results calculated in
accordance with GAAP, and you should carefully evaluate our
reconciliations to non-GAAP. We may calculate our non-GAAP
financial measures differently from similarly titled measures used
by other companies. Therefore, our non-GAAP financial
measures may not be comparable to those used by other companies.
We have described the reconciliations of each of our non-GAAP
financial measures described above to the most directly comparable
GAAP financial measures.
We use these non-GAAP financial measures, and in particular
non-GAAP operating loss, for internal managerial purposes and
incentive compensation for senior management because we believe
such measures are one important indicator of the strength and the
operating performance of our business. Analysts and investors
frequently ask us for this information. We believe that they
use these measures to evaluate the overall operating performance of
companies in our industry, including as a means of comparing
period-to-period results and as a means of evaluating our results
with those of other companies.
Our non-GAAP operating loss during the three months ended
September 30, 2011 and 2010 was
approximately $837,000 and
$591,000, respectively. Our
non-GAAP operating loss during the six months ended September 30, 2011 and 2010 was approximately
$1.8 million and $1.2 million, respectively. The increase in
non-GAAP operating loss is attributed primarily to the increase in
Selling and Marketing expenses.
|
|
|
|
Expense
Adjustments
|
|
|
Three-Months
Ended
|
GAAP
|
Share-based
Expense
|
Depreciation
|
Amortization
|
Non-GAAP
|
|
September 30,
2011
|
|
|
|
|
|
|
Gross Profit
|
$4,208,000
|
$6,000
|
$8,000
|
|
$4,222,000
|
|
% of sales
|
84.7%
|
|
|
|
85.0%
|
|
Operating Expenses
|
|
|
|
|
|
|
General and
administrative
|
942,000
|
(90,000)
|
(40,000)
|
|
812,000
|
|
Research and
development
|
457,000
|
(11,000)
|
(3,000)
|
|
443,000
|
|
Selling and
marketing
|
3,870,000
|
(53,000)
|
(13,000)
|
|
3,804,000
|
|
Amortization
|
214,000
|
|
|
$(214,000)
|
-
|
|
|
5,483,000
|
(154,000)
|
(56,000)
|
(214,000)
|
5,059,000
|
|
|
|
|
|
|
|
|
Operating Loss
|
$(1,275,000)
|
$160,000
|
$64,000
|
$214,000
|
$(837,000)
|
|
|
|
|
|
|
|
|
September 30,
2010
|
|
|
|
|
|
|
Gross Profit
|
$2,650,000
|
$4,000
|
$16,000
|
|
$2,670,000
|
|
% of sales
|
81.7%
|
|
|
|
82.3%
|
|
Operating Expenses
|
|
|
|
|
|
|
General and
administrative
|
897,000
|
(43,000)
|
(38,000)
|
|
816,000
|
|
Research and
development
|
472,000
|
(7,000)
|
(2,000)
|
|
463,000
|
|
Selling and
marketing
|
2,017,000
|
(18,000)
|
(17,000)
|
|
1,982,000
|
|
Amortization
|
211,000
|
|
|
$(211,000)
|
-
|
|
|
3,597,000
|
(68,000)
|
(57,000)
|
(211,000)
|
$3,261,000
|
|
|
|
|
|
|
|
|
Operating Loss
|
$(947,000)
|
$72,000
|
$73,000
|
$211,000
|
$(591,000)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expense
Adjustments
|
|
|
Six-Months Ended
|
GAAP
|
Share-based
Expense
|
Depreciation
|
Amortization
|
Non-GAAP
|
|
September 30,
2011
|
|
|
|
|
|
|
Gross Profit
|
$8,152,000
|
$11,000
|
$15,000
|
|
$8,178,000
|
|
% of sales
|
84.7%
|
|
|
|
85.0%
|
|
Operating Expenses
|
|
|
|
|
|
|
General and
administrative
|
1,965,000
|
(164,000)
|
(80,000)
|
|
1,721,000
|
|
Research and
development
|
913,000
|
(19,000)
|
(6,000)
|
|
888,000
|
|
Selling and
marketing
|
7,464,000
|
(98,000)
|
(25,000)
|
|
7,341,000
|
|
Amortization
|
426,000
|
|
|
$(426,000)
|
-
|
|
|
10,768,000
|
(281,000)
|
(111,000)
|
(426,000)
|
9,950,000
|
|
|
|
|
|
|
|
|
Operating Loss
|
$(2,616,000)
|
$292,000
|
$126,000
|
$426,000
|
$(1,772,000)
|
|
|
|
|
|
|
|
|
September 30,
2010
|
|
|
|
|
|
|
Gross Profit
|
$5,175,000
|
$9,000
|
$32,000
|
|
$5,216,000
|
|
% of sales
|
82.4%
|
|
|
|
83.1%
|
|
Operating Expenses
|
|
|
|
|
|
|
General and
administrative
|
1,748,000
|
(68,000)
|
(76,000)
|
|
1,604,000
|
|
Research and
development
|
873,000
|
(13,000)
|
(5,000)
|
|
855,000
|
|
Selling and
marketing
|
4,006,000
|
(59,000)
|
(34,000)
|
|
3,913,000
|
|
Amortization
|
421,000
|
|
|
$(421,000)
|
-
|
|
|
7,048,000
|
(140,000)
|
(115,000)
|
(421,000)
|
6,372,000
|
|
|
|
|
|
|
|
|
Operating Loss
|
$(1,873,000)
|
$149,000
|
$147,000
|
$421,000
|
$(1,156,000)
|
|
|
|
|
|
|
|
|
|
SOURCE Uroplasty, Inc.