MINNEAPOLIS, Jan. 26, 2012 – 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 third quarter of fiscal
2012 ended December 31, 2011.
Global sales increased 53% to $5.3
million in the third quarter of fiscal 2012, compared with
$3.5 million in the fiscal third
quarter a year ago. Sales in the U.S. grew 78%, with an 89%
increase in sales of the Urgent PC Neuromodulation System and a 71%
increase in sales of Macroplastique. Outside the U.S., sales
rose by 19%.
"Year over year sales growth for both Urgent PC and
Macroplastique remained strong inside and outside the U.S.
Macroplastique continued to gain market acceptance in the
U.S. Although we were not pleased that our sequential
quarterly sales in the U.S. of Urgent PC were relatively flat, we
are confident that by implementing key new initiatives, we will
continue to realize growth in the upcoming quarters," said
David Kaysen, President and CEO of
Uroplasty, Inc.
On a sequential basis, U.S. sales of Urgent PC in the third
quarter of fiscal 2012 were essentially unchanged from the second
quarter of fiscal 2012. There were 500 active U.S. Urgent PC
customers during the fiscal third quarter compared with 509 in the
second quarter. The Company sold 2,531 lead set boxes during
the third quarter compared with 2,579 in the prior quarter.
"To accelerate Urgent PC sequential growth in the U.S., we
intend to help our new customers ramp up and more quickly
incorporate the therapy into their practices," Mr. Kaysen
continued. "To accomplish this, we have aligned our sales
initiatives and incentives, which we believe will shorten the
period between the initial purchase and the scheduling of patients
for treatment. Second, to increase our penetration within our
physician accounts, we are providing physicians with tools focused
on helping them build their Urgent PC practices. We also
continue to focus on adding new customers.
"In addition, the Medicare carrier for Florida has released a formal, specific
reimbursement policy for posterior tibial nerve stimulation (PTNS)
that becomes effective February 1, a
step that we have encouraged and that we believe will now
streamline the processing of insurance claims submitted by our
customers. With this update in the reimbursement policy and
through execution of our initiatives to increase penetration of our
existing accounts, we expect U.S. sales of Urgent PC to
improve."
Urgent PC sales in the U.S. were $2.0
million in the quarter ended December
31, 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 made subsequent to obtaining the new Category I
CPT® code for PTNS that became effective in January 2011, the expansion of the field sales
organization and the increased reimbursement coverage by insurance
carriers.
Macroplastique sales in the U.S. totaled $1.6 million in the recent third quarter compared
to $925,000 during the same quarter
last year. Growth of Macroplastique sales was due to
continued demand from customers of a competitor who has exited the
bulking market.
Net sales to customers outside of the U.S. for the fiscal third
quarter were $1.8 million, a 19%
increase from $1.5 million in the
same quarter last year. Excluding the impact of foreign
exchange translation, sales outside the U.S. increased by
approximately 20%.
The Company reported an operating loss of $1.1 million in the fiscal third quarter,
compared with $1.5 million in the
same quarter last year. Excluding non-cash charges for
share-based compensation, and depreciation and amortization
expense, the non-GAAP operating loss was $570,000 in the fiscal third quarter, compared
with $1.1 million in the year-ago
quarter. The decrease in non-GAAP operating loss is
attributed to the increase in sales and gross profit percent, which
more than offset the increase in spending, primarily in selling and
marketing.
For the nine-month period ended December
31, 2011, sales grew 53% to $15.0
million, reflecting an 81% increase in U.S. sales and an 18%
increase in sales outside the U.S. In the U.S., Urgent PC
sales grew 86% and Macroplastique sales increased 75%.
The Company ended the quarter with cash, cash equivalents and
cash investments of $16.7
million.
"We remain confident about the outlook for Urgent PC.
Doctors continue to report excellent results for their
patients suffering from overactive bladder syndrome, and
reimbursement at this stage of the product launch is working well.
To date, ten regional Medicare carriers representing 35
states, with approximately 31 million covered lives, have indicated
they will provide coverage for PTNS treatments. In addition,
we estimate that private payers providing insurance to
approximately 84 million lives have elected to provide coverage for
PTNS treatments. We believe that Urgent PC is one the most
effective and safe solutions for the treatment of symptoms of
overactive bladder, and we expect to return to sequential quarterly
growth in Urgent PC sales," Mr. Kaysen concluded.
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 fiscal third quarter ended December
31, 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 877-941-9205. 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 4502445#.
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:
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|
|
Uroplasty, Inc.
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EVC Group
|
|
David Kaysen, President and CEO,
or
|
Doug Sherk/Jenifer Kirtland
(Investors)
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|
Medi Jiwani, Vice President,
CFO,
|
415.568.4887
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|
and Treasurer
|
Chris Gale (Media)
|
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952.426.6140
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646.201.5431
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|
UROPLASTY,
INC. AND SUBSIDIARIES
|
|
|
|
CONDENSED
Consolidated Statements of Operations
|
|
(Unaudited)
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
$5,344,188
|
|
$3,492,067
|
|
$14,964,932
|
|
$9,772,389
|
|
Cost of goods sold
|
776,538
|
|
604,566
|
|
2,245,440
|
|
1,709,731
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
4,567,650
|
|
2,887,501
|
|
12,719,492
|
|
8,062,658
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
General and
administrative
|
924,524
|
|
861,183
|
|
2,888,939
|
|
2,609,060
|
|
Research and
development
|
586,439
|
|
423,794
|
|
1,499,070
|
|
1,296,431
|
|
Selling and marketing
|
3,902,952
|
|
2,871,456
|
|
11,366,969
|
|
6,877,402
|
|
Amortization
|
215,164
|
|
211,058
|
|
641,535
|
|
632,508
|
|
|
5,629,079
|
|
4,367,491
|
|
16,396,513
|
|
11,415,401
|
|
|
|
|
|
|
|
|
|
|
Operating loss
|
(1,061,429)
|
|
(1,479,990)
|
|
(3,677,021)
|
|
(3,352,743)
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
|
Interest income
|
14,268
|
|
21,135
|
|
45,818
|
|
52,762
|
|
Interest expense
|
-
|
|
(652)
|
|
(57)
|
|
(4,537)
|
|
Foreign currency exchange gain
(loss)
|
(11,025)
|
|
503
|
|
(14,304)
|
|
12,867
|
|
|
3,243
|
|
20,986
|
|
31,457
|
|
61,092
|
|
|
|
|
|
|
|
|
|
|
Loss before income
taxes
|
(1,058,186)
|
|
(1,459,004)
|
|
(3,645,564)
|
|
(3,291,651)
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
9,352
|
|
8,927
|
|
31,768
|
|
28,260
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
$
(1,067,538)
|
|
$
(1,467,931)
|
|
$
(3,677,332)
|
|
$
(3,319,911)
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted loss per
common share
|
$(0.05)
|
|
$(0.07)
|
|
$(0.18)
|
|
$(0.18)
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares
outstanding:
|
|
|
|
|
|
|
|
|
Basic and diluted
|
20,718,347
|
|
20,514,530
|
|
20,678,865
|
|
18,314,157
|
|
|
|
|
|
|
|
|
|
UROPLASTY,
INC. AND SUBSIDIARIES
|
|
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
(Unaudited)
|
|
|
|
|
December 31,
2011
|
|
March 31,
2011
|
|
|
|
|
|
|
Assets
|
|
|
|
|
Current assets:
|
|
|
|
|
Cash and cash
equivalents & short-term investments
|
$12,302,995
|
|
$14,084,150
|
|
Accounts
receivable, net
|
2,397,799
|
|
2,085,262
|
|
Inventories
|
810,120
|
|
677,960
|
|
Other
|
450,608
|
|
348,100
|
|
Total current assets
|
15,961,522
|
|
17,195,472
|
|
|
|
|
|
|
Property, plant, and equipment,
net
|
1,180,095
|
|
1,210,542
|
|
Intangible assets,
net
|
1,161,339
|
|
1,725,136
|
|
Long-term investments
|
4,437,070
|
|
5,508,701
|
|
Deferred tax assets
|
84,292
|
|
87,031
|
|
Total assets
|
$22,824,318
|
|
$25,726,882
|
|
|
|
|
|
|
Liabilities and Shareholders’
Equity
|
|
|
|
|
Current liabilities:
|
|
|
|
|
Accounts
payable
|
$565,764
|
|
$658,107
|
|
Current portion – deferred rent
|
35,000
|
|
35,000
|
|
Income tax payable
|
11,865
|
|
6,901
|
|
Accrued
liabilities:
|
|
|
|
|
Compensation
|
1,693,502
|
|
1,597,657
|
|
Other
|
488,344
|
|
247,451
|
|
|
|
|
|
|
Total current
liabilities
|
2,794,475
|
|
2,545,116
|
|
|
|
|
|
|
Deferred rent – less current
portion
|
50,851
|
|
77,272
|
|
Accrued pension
liability
|
416,114
|
|
475,845
|
|
|
|
|
|
|
Total liabilities
|
3,261,440
|
|
3,098,233
|
|
|
|
|
|
|
Total shareholders’
equity
|
19,562,878
|
|
22,628,649
|
|
|
|
|
|
|
Total liabilities and
shareholders’ equity
|
$22,824,318
|
|
$25,726,882
|
|
|
|
|
|
|
|
|
|
|
UROPLASTY,
INC. AND SUBSIDIARIES
|
|
|
|
CONDENSED
Consolidated Statements of Cash Flows
|
|
(Unaudited)
|
|
|
Nine Months
Ended
|
|
December
31,
|
|
|
2011
|
|
2010
|
|
Cash flows from operating
activities:
|
|
|
|
|
Net loss
|
($3,677,332)
|
|
($3,319,911)
|
|
Adjustments to reconcile net
loss to net cash used in operating activities:
|
|
|
|
|
Depreciation and
amortization
|
832,309
|
|
848,385
|
|
Loss on disposal of
equipment
|
6,475
|
|
192
|
|
Amortization of premium on
marketable securities
|
27,210
|
|
7,226
|
|
Share-based consulting
expense
|
4,125
|
|
9,739
|
|
Share-based compensation
expense
|
498,906
|
|
279,083
|
|
Deferred income
taxes
|
(4,698)
|
|
(5,863)
|
|
Deferred rent
|
(26,421)
|
|
(26,421)
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
Accounts receivable,
net
|
(374,068)
|
|
(261,136)
|
|
Inventories
|
(146,058)
|
|
(248,656)
|
|
Other current
assets
|
(106,156)
|
|
(48,492)
|
|
Accounts
payable
|
(82,491)
|
|
4,474
|
|
Accrued
liabilities
|
356,589
|
|
616,036
|
|
Accrued pension liability,
net
|
(25,428)
|
|
(16,109)
|
|
Net cash used in operating
activities
|
(2,717,038)
|
|
(2,161,453)
|
|
|
|
|
|
|
Cash flows from investing
activities:
|
|
|
|
|
Proceeds from maturity of
marketable securities
|
13,018,252
|
|
4,000,000
|
|
Purchases of marketable
securities
|
(10,686,270)
|
|
(16,311,352)
|
|
Purchases of property,
plant and equipment
|
(222,826)
|
|
(128,935)
|
|
Purchase of intangible
assets
|
(77,738)
|
|
(11,300)
|
|
Net cash provided by (used in)
investing activities
|
2,031,418
|
|
(12,451,587)
|
|
|
|
|
|
|
Cash flows from financing
activities:
|
|
|
|
|
Net proceeds from public
offering of common stock
|
-
|
|
14,917,059
|
|
Net proceeds from exercise
of warrants and options
|
208,825
|
|
2,467,007
|
|
Net cash provided by financing
activities
|
208,825
|
|
17,384,066
|
|
|
|
|
|
|
Effect of exchange rate changes
on cash and cash equivalents
|
(26,208)
|
|
(37,554)
|
|
|
|
|
|
|
Net increase in cash and cash
equivalents
|
(503,003)
|
|
2,733,472
|
|
|
|
|
|
|
Cash and cash equivalents at
beginning of period
|
6,063,573
|
|
2,311,269
|
|
|
|
|
|
|
Cash and cash equivalents at end
of period
|
$5,560,570
|
|
$5,044,741
|
|
|
|
|
|
|
Supplemental disclosure of cash
flow information:
|
|
|
|
|
Cash paid during the period for
interest
|
$57
|
|
$-
|
|
Cash paid during the period for
income taxes
|
31,307
|
|
9,633
|
|
|
|
|
|
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
December 31, 2011 and 2010 was
approximately $570,000 and
$1,059,000, respectively. Our
non-GAAP operating loss during the nine months ended December 31, 2011 and 2010 was approximately
$2.3 million and $2.2 million, respectively. The decrease in
non-GAAP operating loss for the three months ended December 31, 2011 over the corresponding period a
year ago is attributed to the increase in sales and gross profit
percent, which more than offset the increase in spending, primarily
in selling and marketing.
|
|
Expense
Adjustments
|
|
|
Three-Months
Ended
|
GAAP
|
Share-based
Expense
|
Depreciation
|
Amortization
|
Non-GAAP
|
|
December 31, 2011
|
|
|
|
|
|
|
Gross Profit
|
$4,568,000
|
$6,000
|
$9,000
|
|
$4,583,000
|
|
% of sales
|
85.5%
|
|
|
|
85.8%
|
|
Operating Expenses
|
|
|
|
|
|
|
General &
administrative
|
925,000
|
(132,000)
|
(40,000)
|
|
753,000
|
|
Research and
development
|
586,000
|
(11,000)
|
(2,000)
|
|
573,000
|
|
Selling and
marketing
|
3,903,000
|
(62,000)
|
(14,000)
|
|
3,827,000
|
|
Amortization
|
215,000
|
|
|
(215,000)
|
-
|
|
|
5,629,000
|
(205,000)
|
(56,000)
|
(215,000)
|
5,153,000
|
|
Operating Loss
|
($1,061,000)
|
$211,000
|
$65,000
|
$215,000
|
($570,000)
|
|
|
|
|
|
|
|
|
December 31, 2010
|
|
|
|
|
|
|
Gross Profit
|
$2,888,000
|
$4,000
|
$12,000
|
|
$2,904,000
|
|
% of sales
|
82.7%
|
|
|
|
83.2%
|
|
Operating Expenses
|
|
|
|
|
|
|
General &
administrative
|
861,000
|
(100,000)
|
(38,000)
|
|
723,000
|
|
Research and
development
|
424,000
|
(7,000)
|
(3,000)
|
|
414,000
|
|
Selling and
marketing
|
2,872,000
|
(29,000)
|
(17,000)
|
|
2,826,000
|
|
Amortization
|
211,000
|
|
|
(211,000)
|
-
|
|
|
4,368,000
|
(136,000)
|
(58,000)
|
(211,000)
|
3,963,000
|
|
Operating Loss
|
($1,480,000)
|
$140,000
|
$70,000
|
$211,000
|
($1,059,000)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expense
Adjustments
|
|
|
Nine-Months Ended
|
GAAP
|
Share-based
Expense
|
Depreciation
|
Amortization
|
Non-GAAP
|
|
December 31, 2011
|
|
|
|
|
|
|
Gross Profit
|
$12,720,000
|
$16,000
|
$25,000
|
|
$12,761,000
|
|
% of sales
|
85.0%
|
|
|
|
85.3%
|
|
Operating Expenses
|
|
|
|
|
|
|
General &
administrative
|
2,889,000
|
(296,000)
|
(119,000)
|
|
2,474,000
|
|
Research and
development
|
1,499,000
|
(30,000)
|
(8,000)
|
|
1,461,000
|
|
Selling and
marketing
|
11,367,000
|
(161,000)
|
(39,000)
|
|
11,167,000
|
|
Amortization
|
642,000
|
|
|
(642,000)
|
-
|
|
|
16,397,000
|
(487,000)
|
(166,000)
|
(642,000)
|
15,102,000
|
|
Operating Loss
|
($3,677,000)
|
$503,000
|
$191,000
|
$642,000
|
($2,341,000)
|
|
|
|
|
|
|
|
|
December 31, 2010
|
|
|
|
|
|
|
Gross Profit
|
$8,063,000
|
$13,000
|
$43,000
|
|
$8,119,000
|
|
% of sales
|
82.5%
|
|
|
|
83.1%
|
|
Operating Expenses
|
|
|
|
|
|
|
General &
administrative
|
2,609,000
|
(168,000)
|
(114,000)
|
|
2,327,000
|
|
Research and
development
|
1,297,000
|
(20,000)
|
(8,000)
|
|
1,269,000
|
|
Selling and
marketing
|
6,877,000
|
(88,000)
|
(51,000)
|
|
6,738,000
|
|
Amortization
|
633,000
|
|
|
(633,000)
|
-
|
|
|
11,416,000
|
(276,000)
|
(173,000)
|
(633,000)
|
10,334,000
|
|
Operating Loss
|
($3,353,000)
|
$289,000
|
$216,000
|
$633,000
|
($2,215,000)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE Uroplasty, Inc.