Advanced Energy Sales of $3.1 million in Q4,
up 219% year-over-year, driven by strong J-Plasma®
sales.
Bovie Medical Corporation (NYSEMKT:BVX) (the “Company”),
a maker of medical devices and supplies and the developer of
J-Plasma®, a patented surgical product, today reported financial
results for its fourth quarter and full year ended
December 31, 2017.
Fourth Quarter 2017 Financial
Summary:
- Total Q4 revenue of approximately $11.3
million, up 20% year-over-year.
- Advanced Energy revenue of $3.1
million, up 219% year-over-year, driven by strong J-Plasma®
sales.
- Core revenue of approximately $7.7
million, up 2% year-over-year.
- OEM revenue of approximately $0.6
million, down 42% year-over-year.
- Total Q4 adjusted EBITDA loss of
approximately $580,000 versus adjusted EBITDA loss of approximately
$589,000 in the fourth quarter of 2016 and excluding the effect of
severance and related expense, the Q4 2017 adjusted EBITDA income
would have been $944,000.
Full Year 2017 Financial
Summary:
- Total revenue of approximately $38.9
million, up 6% year-over-year.
- Advanced Energy revenue of $7.6
million, up 119% year-over-year, driven by strong J-Plasma®
sales.
- Core revenue of approximately $28.6
million, up 3% year-over-year.
- OEM revenue of approximately $2.6
million, down 51% year-over-year.
- Total adjusted EBITDA loss of
approximately $3.7 million versus adjusted EBITDA loss of
approximately $2.2 million for 2016 and excluding the effect of
severance and related expense, the 2017 adjusted EBITDA loss would
have been $2.2 million.
Management
Comments:
“Bovie Medical is pleased to report a strong close to 2017, with
fourth quarter revenue growth of 20% year-over-year driven by
impressive sales of our J-Plasma technology in the cosmetic surgery
market,” said Charlie Goodwin, Chief Executive Officer. “Our sales
performance within the cosmetic surgery market in 2017, combined
with the positive feedback received from our new surgeon customers
this past year, have demonstrated the opportunity that lies in
store for our J-Plasma technology.”
Mr. Goodwin continued: “Looking forward, we are committed to
capitalizing on this opportunity and driving growth by further
enhancing the focus of our organization on the cosmetic surgery
market. In 2018, we will work to increase surgeon adoption while
pursuing additional clinical support to position our J-Plasma
technology for sustainable long-term growth in this market. We
expect this strategy to translate to strong returns for our
shareholders over time and look forward to providing future updates
on our progress.”
Fourth Quarter 2017
Results:
The following tables represent revenue by reportable segment and
by product line:
Three Months EndedDecember
31,
Increase/Decrease
Twelve Months EndedDecember
31,
Increase/Decrease (In thousands)
2017
2016
$Change
%Change
2017 2016
$Change
%Change
Core $ 7,690 $ 7,547 $ 143 1.9 % $ 28,649 $ 27,808 $ 841 3.0 % OEM
568 977 (409 ) (41.9 )% 2,598 5,328 (2,730 ) (51.2 )% Advanced
Energy 3,090 970 2,120 218.6 %
7,636 3,491 4,145 118.7 % Total $ 11,348 $
9,494 $ 1,854 19.5 % $ 38,883 $ 36,627 $ 2,256 6.2 %
Three Months EndedDecember 31,
Increase/Decrease Twelve Months EndedDecember
31, Increase/Decrease (In thousands)
2017
2016
$Change
%Change
2017 2016
$Change
%Change
Electrosurgical $ 7,986 $ 5,881 $ 2,105 35.8 % $ 25,727 $ 20,901 $
4,826 23.1 % Cauteries 1,917 1,684 233 13.8 % 7,141 7,101 40 0.6 %
Lighting 469 664 (195 ) (29.4 )% 2,435 2,710 (275 ) (10.1 )% Other
976 1,265 (289 ) (22.8 )% 3,580
5,915 (2,335 ) (39.5 )% Total $ 11,348 $ 9,494 $ 1,854
19.5 % $ 38,883 $ 36,627 $ 2,256 6.2 %
Total revenue for fourth quarter 2017 increased $1.9 million, or
19.5%, to $11.3 million, compared to $9.5 million in the fourth
quarter of 2016. Advanced Energy segment sales, nearly all of which
are from sales of J-Plasma products, increased approximately $2.1
million, or 218.6% year-over-year, to $3.1 million, compared to
approximately $1.0 million last year. Core segment sales increased
approximately $0.1 million, or 1.9% year-over-year, to $7.7
million, compared to approximately $7.5 million last year. OEM
segment sales decreased $0.4 million, or 41.9% year-over-year, to
$0.6 million, compared to $1.0 million last year.
By product line, sales of electrosurgical, cauteries, lighting
and other products represented 70% 17%, 4% and 9% of total revenue,
respectively, for the three months ended December 31, 2017.
The largest product line contributor to total revenue growth in the
fourth quarter of 2017 was a 35.8% increase in sales of
electrosurgical products, driven primarily by Advanced Energy
sales.
Three Months EndedDecember
31,
Increase/Decrease
Twelve Months EndedDecember
31,
Increase/Decrease (In thousands)
2017
2016
$Change
%Change
2017 2016
$Change
%Change
Domestic $ 9,469 $ 8,948 $ 521 5.8 % $ 33,147 $ 32,050 $ 1,097 3.4
% International 1,879 546 1,333 244.1 %
5,736 4,577 1,159 25.3 % Total $ 11,348 $ 9,494 $
1,854 19.5 % $ 38,883 $ 36,627 $ 2,256 6.2 %
Revenue in the United States increased $0.5 million, or 5.8%
year-over-year, to $9.5 million, and international revenue
increased approximately $1.3 million, or 244.1% year-over-year, to
$1.9 million. Our international sales growth in the fourth quarter
was primarily driven by strong demand from distributors in our Core
business, fueled in part by additional registrations in
international countries that were obtained during the course of
2017. We also saw strong international sales during the quarter in
our Advanced Energy business.
Gross profit for the fourth quarter of 2017 increased $1.1
million, or 22.1% year-over-year, to $5.9 million, compared to $4.8
million for fourth quarter of 2016. Gross margin increased
approximately 110 basis points year-over-year to 52.0% for the
fourth quarter of 2017, compared to 50.9% last year. The increase
in gross margins was primarily due to higher margins in the
Advanced Energy segment, driven by higher volume and pricing mix on
generator sales.
Operating expenses for the fourth quarter of 2017 increased
approximately $1.1 million, or 18.9% year-over-year, to $7.0
million, compared to $5.9 million for the fourth quarter of 2016.
The increase in operating expenses was driven by $1.5 million of
non-recurring severance and related expense due to the departures
of former members of our executive team and the related closure of
the corporate office in Purchase, New York. Fourth quarter
operating expenses increased $1.2 million driven by selling,
general and administrative expenses, which were partially offset by
a $1.4 million decrease in salaries and related costs.
Loss from operations for the fourth quarter of 2017 was $1.1
million, compared to a loss from operations of $1.0 million for the
comparable period last year.
Net loss attributed to common shareholders for the fourth
quarter of 2017 was $0.8 million, or $0.03 per diluted share,
compared to a net loss of $0.5 million, or $0.02 per diluted share,
for the fourth quarter of 2016.
As of December 31, 2017, the Company had cash and
equivalents of $10.7 million as compared to $15.2 million as of
December 31, 2016. The Company had working capital of $16.6
million as of December 31, 2017 as compared to $21.3 million
as of December 31, 2016.
Full Year 2017
Results:
Total revenue for the full year 2017 increased $2.3 million, or
6.2%, to $38.9 million, compared to $36.6 million in 2016. Total
revenue growth was driven by an 118.7% increase in Advance Energy
sales and a 3.0% increase in Core sales, and was partially offset
by a 51.2% decrease in OEM sales.
Gross profit for 2017 increased $1.8 million, or 10.3%
year-over-year, to $19.8 million, compared to $17.9 million for
2016. Gross margin for 2017 increased approximately 190 basis
points year-over-year to 50.8%, compared to 48.9% last year. The
increase in gross margin was driven by higher margins in the
Company’s Advanced Energy and Core segments. The overall increase
in margins was partially offset by reduced revenue and orders of
lower margin product in the Company’s OEM segment.
Operating expenses for 2017 increased $3.3 million, or 15.3%
year-over-year, to $25.0 million, compared to $21.7 million for
2016. The increase in operating expenses was primarily driven by a
$2.8 million increase in selling, general and administrative
expenses over the prior year.
Loss from operations for 2017 was $5.3 million, compared to a
loss from operations of $3.8 million for 2016.
Net loss attributed to common shareholders for 2017 was $5.1
million, or $0.17 per diluted share, compared to a loss of $4.0
million, or $0.15 per diluted share, for 2016.
2018 Outlook:
- The Company expects total revenue in
the range of $41.0 million to $42.5 million, representing growth of
5% to 9% year-over-year. The Company expects total revenue growth
to be driven by Advanced Energy sales growth in the range of
approximately 40% to 45% year-over-year.
- The Company expects adjusted EBITDA in
a range of $1.0 million to $1.5 million.
Conference Call
Details:
Management will host a conference call at 4:30 p.m. Eastern Time
on March 12, 2018 to discuss the results of the quarter and to
host a question and answer session. To listen to the call by phone,
interested parties within the U.S. may dial 844-507-6493 (or
647-253-8641 for international callers) and provide access code
8981539. Participants should ask for the Bovie Medical Corporation
Call. A live webcast of the call will be accessible via the
Investor Relations section of the Company’s website and at:
https://event.on24.com/wcc/r/1553553/E526C7643DE03B214A33F4DC804C2746
A telephonic replay will be available approximately two hours
after the end of the call through March 26, 2018. The replay can be
accessed by dialing 800-585-8367 for U.S. callers or 416-621-4642
for International callers and using the replay access code:
8981539. The webcast will be archived on the Investor Relations
section of the Company's website.
About Bovie Medical
Corporation:
Bovie Medical Corporation is a leading maker of medical devices
and supplies as well as the developer of J-Plasma®, a patented
plasma-based surgical product for cutting, coagulation and ablation
of soft tissue. J-Plasma® utilizes a helium ionization process to
produce a stable, focused beam of plasma that provides surgeons
with greater precision, minimal invasiveness and an absence of
conductive currents through the patient during surgery. The
new J-Plasma® handpieces with Cool-Coag™ technology deliver the
precision of helium plasma energy, the power of traditional
monopolar coagulation and the efficiency of plasma beam coagulation
- enabling thin-layer ablation and dissection and fast coagulation
with a single instrument, minimizing instrument exchange and
allowing a surgeon to focus on their patient and their
procedures. With Cool-Coag technology, the new J-Plasma
handpieces can deliver three distinctly different energy
modalities - further increasing the utility and versatility of the
J-Plasma system. Bovie Medical Corporation is also a leader in the
manufacture of a range of electrosurgical products and
technologies, marketed through both private labels and the
Company’s own well-respected brands (Bovie®, IDS™ and DERM™) to
distributors worldwide. The Company also leverages its expertise
through original equipment manufacturing (OEM) agreements with
other medical device manufacturers. For further information about
the Company’s current and new products, please refer to the
Investor Relations section of Bovie Medical Corporation
at www.boviemed.com.
Cautionary Statement on Forward-Looking
Statements:
Certain matters discussed in this release and oral statements
made from time to time by representatives of the Company may
constitute forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995 and the Federal
securities laws. Although the Company believes that the
expectations reflected in such forward-looking statements are based
upon reasonable assumptions, it can give no assurance that its
expectations will be achieved.
Forward-looking information is subject to certain risks, trends
and uncertainties that could cause actual results to differ
materially from those projected. Many of these factors are beyond
the Company's ability to control or predict. Important factors that
may cause actual results to differ materially and that could impact
the Company and the statements contained in this release can be
found in the Company's filings with the Securities and Exchange
Commission including the Company's Report on Form 10-K for the year
ended December 31, 2016 and subsequent Form 10-Q filings. For
forward-looking statements in this release, the Company claims the
protection of the safe harbor for forward-looking statements
contained in the Private Securities Litigation Reform Act of 1995.
The Company assumes no obligation to update or supplement any
forward-looking statements whether as a result of new information,
future events or otherwise.
BOVIE MEDICAL CORPORATION
CONSOLIDATED STATEMENTS OF
OPERATIONS
(Unaudited) (In thousands, except per
share data)
Three Months EndedDecember 31,
Twelve Months EndedDecember 31, 2017
2016 2017 2016 Sales $ 11,348 $ 9,494 $
38,883 $ 36,627 Cost of sales 5,449 4,664
19,122 18,712
Gross
profit 5,899 4,830 19,761 17,915 Other costs and expenses:
Research and development 440 676 2,455 2,618 Professional services
480 441 1,771 1,486 Salaries and related costs 1,123 2,546 7,906
9,038 Selling, general and administrative 3,420 2,211 11,370 8,565
Severance and related expense 1,524 —
1,524 —
Total other costs and
expenses 6,987 5,874 25,026
21,707
Loss from operations (1,088 )
(1,044 ) (5,265 ) (3,792 ) Interest expense, net (33 ) (35 ) (136 )
(158 ) Change in fair value of derivative liabilities 126
620 183 64
Total other income (loss), net 93 585
47 (94 )
Loss before income
taxes (995 ) (459 ) (5,218 ) (3,886 ) Income tax (benefit)
expense (171 ) 64 (156 ) 64
Net loss $ (824 ) $ (523 ) $ (5,062 ) $ (3,950 )
Loss per share Basic $ (0.03 ) $ (0.02 ) $ (0.16 ) $ (0.14 )
Diluted $ (0.03 ) $ (0.02 ) $ (0.17 ) $ (0.15 ) Weighted
average number of shares outstanding - basic 32,864 28,574 31,420
27,433 Weighted average number of shares outstanding - dilutive
32,864 28,618 31,427 27,449
BOVIE MEDICAL CORPORATION
CONSOLIDATED BALANCE SHEETS
(Unaudited) (In thousands, except share
and per share data)
December 31,2017
December 31,2016
ASSETS Current assets: Cash and cash equivalents $
9,949 $ 14,456 Restricted cash 719 779 Trade accounts receivable,
net of allowance of $204 and $118 4,857 4,733 Inventories, net
6,526 6,158 Prepaid expenses and other current assets 496
413
Total current assets 22,547 26,539
Property and equipment, net 6,408 6,449 Brand name and trademark
1,510 1,510 Purchased technology and license rights, net 179 215
Goodwill 185 185 Deposits 92 109 Other assets 67
103
Total assets $ 30,988 $ 35,110
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities: Accounts payable $ 1,583 $ 1,606
Accrued severance and related 1,242 — Accrued payroll 447 419
Accrued vacation 74 404 Current portion of mortgage note payable
239 239 Accrued and other liabilities 2,388
2,604
Total current liabilities 5,973 5,272 Mortgage
note payable, net of current portion 2,455 2,694 Note payable 140
140 Deferred rents — 14 Deferred tax liability 368 564 Derivative
liabilities 20 203
Total
liabilities 8,956 8,887
STOCKHOLDERS' EQUITY Series B
convertible preferred stock, $0.001 par value; 3,588,139 authorized
and zero issued and outstanding as of December 31, 2017 and
3,588,139 authorized and 975,639 issued and outstanding as of
December 31, 2016, respectively — 1 Common stock, $0.001 par value;
75,000,000 shares authorized; 33,021,170 issued and 32,878,091
outstanding as of December 31, 2017 and 40,000,000 shares
authorized; 31,002,832 issued and 30,859,753 outstanding as of
December 31, 2016, respectively 33 31 Additional paid-in capital
50,495 49,625 Accumulated deficit (28,496 ) (23,434 )
Total stockholders' equity 22,032
26,223
Total liabilities and stockholders' equity $
30,988 $ 35,110
BOVIE MEDICAL
CORPORATION RECONCILIATION OF GAAP NET INCOME/(LOSS) RESULTS
TO NON-GAAP ADJUSTED EBITDA/(LOSS)
(Unaudited) (In thousands)
Use of Non-GAAP Financial Measures
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 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.
The Company has presented the following non-GAAP financial
measures in this press release: adjusted EBITDA. The Company
defines adjusted EBITDA as its reported net income/(loss) (GAAP)
plus income tax expense, interest expense, net, depreciation and
amortization, stock-compensation expense, and changes in value of
derivative liabilities.
Three Months EndedDecember 31,
Twelve Months EndedDecember 31, 2017
2016 2017 2016 Net loss GAAP Basis $
(824 ) $ (523 ) $ (5,062 ) $ (3,950 ) Interest expense, net 33 35
136 158 Income tax (benefit) expense (171 ) 64 (156 ) 64
Depreciation and amortization 169 178 696 734 Stock based
compensation 339 277 871 809 Change in fair value of derivative
liabilities (126 ) (620 ) (183 ) (64 )
Adjusted EBITDA (580 ) (589 ) (3,698 )
(2,249 ) Severance and related expense 1,524 —
1,524 — Adjusted EBITDA,
excluding non-recurring items* 944 (589 )
(2,174 ) (2,249 ) *Fourth quarter and fiscal
year 2017 periods include approximately $1.5 million of
non-recurring severance and expenses related to former members of
the Company’s executive management team and related closure of the
corporate office in Purchase, New York.
The following unaudited table presents a reconciliation of net
loss to Adjusted EBITDA for our 2018 guidance:
Year Ended2018
Net loss GAAP Basis $ (300 ) Interest expense, net 150 Income tax
(benefit) expense — Depreciation and amortization 700 Stock based
compensation 700 Change in fair value of derivative liabilities
— Adjusted EBITDA 1,250
The reconciliation assumes the mid-point of the Adjusted EBITDA
loss range and the midpoint of each component of the
reconciliation, corresponding to guidance of $1.0 million to $1.5
million for 2018.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20180312005919/en/
Investor Relations
Contact:Westwicke Partners on behalf of Bovie
Medical CorporationMike Piccinino,
CFA443-213-0500investor.relations@boviemed.com
Bovie (AMEX:BVX)
Historical Stock Chart
From Aug 2024 to Sep 2024
Bovie (AMEX:BVX)
Historical Stock Chart
From Sep 2023 to Sep 2024