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 months ended March 31, 2024.
Highlights from the first quarter of 2024 and
recent weeks include the following (all comparisons are with the
first quarter of 2023, unless otherwise noted):
- Revenues were $10.7 million,
compared with $3.4 million, an increase of 214%, reflecting higher
superficial radiotherapy (SRT and IG-SRT) unit sales
- Shipped 26 systems, compared with
10 systems
- Net income was $2.3 million, or
$0.14 per diluted share, compared with a net loss of $1.9 million,
or $0.12 per share
- Ended the quarter with $14.7
million in cash and cash equivalents, and no debt
- Accounts receivable as of March 31,
2024 were $19.6 million, compared with $10.6 million as of December
31, 2023
- Continued to build inventories to
prepare for anticipated customer demand
- Launched “Fair Deal Agreement”
recurring revenue program for the SRT-100 Vision™ (IG-SRT)
- Showcased all products and services
at the Winter Clinical and South Beach Symposium, and at the
American Academy of Dermatology Annual Meeting
- Engaged CureRays to provide
oversight and supervision for customers involved with the recurring
revenue program and to enhance patient safety; CureRays will also
conduct clinical studies to expand indications for SRT, beginning
with inflammatory diseases
- Issued a U.S. patent for SRT-100
Vision System (IG-SRT) treatment planning capabilities
- Sold first SRT-100 Vision System
(IG-SRT) in Asia, to Far Eastern Memorial Hospital in Taiwan
- Made first commercial sale of an
SRT-100 for veterinary use outside the U.S., to Chavat Da’at, the
Veterinary Specialist Referral Center Knowledge Farm at Beit Verl
College in Tel Aviv, to provide a gentler radiotherapy option to
treat tumors in dogs and cats
Management Commentary
“Our first quarter financial results were strong
as we more than tripled revenues compared with the 2023 quarter and
achieved a substantial profit, reversing last year’s net loss as
customers adjust to macroeconomic conditions,” said Joe Sardano,
Chairman and Chief Executive Officer of Sensus Healthcare. “This
performance reflects continued business momentum as customers
recognize the importance to their patients of SRT, a non-invasive
and highly efficacious modality to treat non-melanoma skin cancer,
while benefitting from a choice in sales options, including our new
Fair Deal Agreement to complement our proven fair market value
lease program.
“We showcased our Fair Deal Agreement program at
three important trade conferences during the quarter, including the
Winter Clinical and South Beach Symposium, and the American Academy
of Dermatology Annual Meeting. We enjoyed excellent booth traffic
at all three events. The Fair Deal Agreement is a recurring revenue
program that addresses the customer’s need to use capital in other
areas of growing their business, and facilitates what we believe is
a compelling economic model. This new offering continues to gain
traction with more and more interest each and every day. Under this
program, the more patients treated with SRT-100 Vision, the more
revenue to the practice. It’s that simple. The Fair Deal Agreement
includes the work of CureRays to provide oversight to facilitate
the utmost efficiency and effectiveness of the dermatology
practice.”
Mr. Sardano added, “In addition to launching the
Fair Deal Agreement, at these trade shows we also showcased the
state-of-the-art capabilities embedded in the SRT-100 Vision. These
include our newly patented proprietary technology covering 33
individual claims. The patent describes technology that’s
essentially a treatment-planning system made possible by fusing a
radiation therapy device with high-frequency ultrasound, permitting
seamless operation with the Fair Deal Agreement program.
“Between interest in the new technology and our
new sales offering, we have assembled a significant pipeline of
potential customers, so much so that we built further inventory to
satisfy anticipated demand,” Mr. Sardano continued. “That said, we
highly value our existing customers and continue to work with them
to expand SRT to additional clinics nationwide.
“Our goal is to make SRT the standard of care
for treating non-melanoma skin cancer and keloids. We believe we
have barely penetrated this market and see plenty of room for
growth, both in the U.S. and around the world, as evidenced by
recent progress in Taiwan,” Mr. Sardano concluded.
First
Quarter Financial Results
Revenues for the first quarter of 2024 were
$10.7 million, compared with $3.4 million for the first quarter of
2023, an increase of $7.3 million, or 215%. The increase was
primarily driven by a higher number of SRT systems sold to a large
customer.
Cost of sales was $4.0 million for the first
quarter of 2024, compared with $1.8 million for the prior-year
quarter, an increase of $2.2 million, or 122%. The increase was
primarily related to a higher number of units sold.
Gross profit for the first quarter of 2024 was
$6.7 million, or 62.5% of revenues, compared with $1.6 million, or
47.5% of revenues, for the first quarter of 2023, an increase of
$5.1 million, or 319%. The increase was primarily driven by the
increased number of units sold.
Selling and marketing expense was $1.3 million
for the first quarter of 2024, compared with $2.1 million for the
prior-year quarter, a decrease of $0.8 million, or 38%. The
decrease was primarily attributable to a decline in marketing
expense, headcount and tradeshow costs.
General and administrative expense was $1.6
million for the first quarter of 2024, compared with $1.4 million
for the first quarter of 2023, an increase of $0.2 million, or 14%.
The increase was primarily due to higher professional fees and
compensation.
Research and development expense was $0.9
million for the first quarter of 2024, compared with $1.1 million
for the first quarter of 2023, a decrease of $0.2 million, or 18%.
The decrease reflects the completion of development of a drug
delivery system for the aesthetic market.
Other income of $0.2 million for the first
quarter of 2024 was mostly related to interest income, and was
unchanged from the prior-year quarter.
Net income for the first quarter of 2024 was
$2.3 million, or $0.14 per diluted share, compared with a net loss
of $1.9 million, or $0.12 per share, for the first quarter of
2023.
Adjusted EBITDA for the first quarter of 2024
was $3.0 million, compared with negative $2.7 million for the first
quarter of 2023. 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 reasons these non-GAAP financial measures are provided.
Cash and cash equivalents were $14.7 million as
of March 31, 2024, compared with $23.1 million as of December 31,
2023. The Company had no outstanding borrowings under its revolving
line of credit. Accounts receivable were $19.6 million as of March
31, 2024, compared with $10.6 million as of December 31, 2023.
Prepaid inventory was $3.7 million, compared with $3.0 million, and
inventories were $14.7 million, compared with $11.9 million,
reflecting preparations for higher expected unit sales and
placements in 2024.
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 the
Company’s 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 |
|
|
March 31, |
(in
thousands) |
|
2024 |
|
2023 |
Net income (loss), as reported |
|
$ |
2,274 |
|
|
$ |
(1,894 |
) |
Add: |
|
|
|
|
|
|
Depreciation and amortization |
|
70 |
|
|
72 |
|
Stock compensation expense |
|
91 |
|
|
143 |
|
Income tax expense (benefit) |
|
827 |
|
|
(802 |
) |
Interest income, net |
|
(214 |
) |
|
(243 |
) |
Adjusted EBITDA, non
GAAP |
|
$ |
3,048 |
|
|
$ |
(2,724 |
) |
|
|
|
|
|
|
|
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 2024
first quarter, provide a business update and answer questions. To
access the conference call, dial 844-481-2811 (U.S. and Canada Toll
Free) or 412-317-0676 (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 June 9, 2024 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 9785929.
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 global pioneer in
the development and delivery of non-invasive treatments for skin
cancer and keloids. Leveraging its cutting-edge superficial
radiotherapy (SRT and IG-SRT) technology, the company provides
healthcare providers with a highly effective, patient-centric
treatment platform. With a dedication to driving innovation in
radiation oncology, Sensus Healthcare offers solutions that are
safe, precise, and adaptable to a variety of clinical settings. For
more information, please 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. 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.
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: our ability to maintain
profitability; our ability to sell the number of SRT units we
anticipate for the balance of 2024; the possibility that
inflationary pressures continue to impact our sales; 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.; the performance of the Company’s information technology
systems and its ability to maintain data security; 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; 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.
To date, we do not expect that the Middle East
conflict, the Russian invasion of Ukraine and global geopolitical
uncertainty have had any particular impact on our business, but we
continue to monitor developments and will address them in future
disclosures, if applicable.
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 |
|
|
|
March 31, |
(in thousands, except share and per share data) |
|
2024 |
|
2023 |
|
|
|
(unaudited) |
|
(unaudited) |
Revenues |
|
$ |
10,663 |
|
|
$ |
3,414 |
|
Cost of
sales |
|
4,001 |
|
|
1,792 |
|
Gross
profit |
|
6,662 |
|
|
1,622 |
|
Operating
expenses: |
|
|
|
|
|
|
Selling and marketing |
|
1,270 |
|
|
2,099 |
|
General and administrative |
|
1,579 |
|
|
1,364 |
|
Research and
development |
|
926 |
|
|
1,098 |
|
Total operating
expenses |
|
3,775 |
|
|
4,561 |
|
Income (loss)
from operations |
|
2,887 |
|
|
(2,939 |
) |
Other
income: |
|
|
|
|
|
|
Interest income, net |
|
214 |
|
|
243 |
|
Other income,
net |
|
214 |
|
|
243 |
|
Income (loss)
before income tax |
|
3,101 |
|
|
(2,696 |
) |
Provision for
(benefit from) income tax |
|
827 |
|
|
(802 |
) |
Net Income
(loss) |
|
$ |
2,274 |
|
|
$ |
(1,894 |
) |
Net income (loss) per share |
– basic |
|
$ |
0.14 |
|
|
$ |
(0.12 |
) |
|
– diluted |
|
$ |
0.14 |
|
|
$ |
(0.12 |
) |
Weighted average number of
shares used in computing net income (loss) per
share |
– basic |
|
16,294,970 |
|
|
16,245,343 |
|
|
– diluted |
|
16,318,047 |
|
|
16,245,343 |
|
|
|
|
|
|
|
|
|
SENSUS HEALTHCARE, INC. |
CONDENSED CONSOLIDATED BALANCE SHEETS |
|
|
|
|
|
|
|
|
|
|
|
As of March 31, |
|
As of December 31, |
(in
thousands, except shares and per share data) |
|
2024 |
|
2023 |
|
|
(unaudited) |
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
14,728 |
|
|
$ |
23,148 |
|
Accounts receivable, net |
|
|
19,625 |
|
|
|
10,645 |
|
Inventories |
|
|
14,720 |
|
|
|
11,861 |
|
Prepaid inventory |
|
|
3,671 |
|
|
|
2,986 |
|
Other current assets |
|
|
1,169 |
|
|
|
888 |
|
Total current assets |
|
|
53,913 |
|
|
|
49,528 |
|
Property and equipment, net |
|
|
633 |
|
|
|
464 |
|
Deferred tax asset |
|
|
1,313 |
|
|
|
2,140 |
|
Operating lease right-of-use assets, net |
|
|
726 |
|
|
|
774 |
|
Other noncurrent assets |
|
|
688 |
|
|
|
804 |
|
Total assets |
|
$ |
57,273 |
|
|
$ |
53,710 |
|
Liabilities and stockholders’ equity |
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
Accounts payable and accrued expenses |
|
$ |
3,703 |
|
|
$ |
2,793 |
|
Product warranties |
|
|
594 |
|
|
|
538 |
|
Operating lease liabilities, current portion |
|
|
191 |
|
|
|
187 |
|
Income tax payable |
|
|
37 |
|
|
|
37 |
|
Deferred revenue, current portion |
|
|
948 |
|
|
|
657 |
|
Total current Liabilities |
|
|
5,473 |
|
|
|
4,212 |
|
Operating lease liabilities, net of current portion |
|
|
553 |
|
|
|
596 |
|
Deferred revenue, net of current portion |
|
|
40 |
|
|
|
60 |
|
Total liabilities |
|
|
6,066 |
|
|
|
4,868 |
|
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; 16,925,595
issued and 16,392,671 outstanding at March 31, 2024; 16,907,095
issued and 16,374,171 outstanding at December 31, 2023 |
|
|
169 |
|
|
|
169 |
|
Additional paid-in capital |
|
|
45,496 |
|
|
|
45,405 |
|
Treasury stock, 532,924 shares at cost, at March 31, 2024 and
December 31, 2023 |
|
|
(3,519 |
) |
|
|
(3,519 |
) |
Retained earnings |
|
|
9,061 |
|
|
|
6,787 |
|
Total stockholders’ equity |
|
|
51,207 |
|
|
|
48,842 |
|
Total liabilities and stockholders’ equity |
|
$ |
57,273 |
|
|
$ |
53,710 |
|
|
|
|
|
|
|
|
|
|
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