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 third quarter of fiscal year 2018 ended March 31,
2018 as summarized below:
($ in millions) |
Three Months Ended |
|
Nine Months Ended |
|
March 31, |
|
March 31, |
|
|
2018 |
|
|
2017 |
|
|
|
2018 |
|
|
2017 |
|
|
|
|
|
|
|
Revenue |
$ |
12.4 |
|
$ |
7.2 |
|
|
$ |
28.0 |
|
$ |
19.4 |
|
Gross Profit |
$ |
9.8 |
|
$ |
5.1 |
|
|
$ |
20.8 |
|
$ |
13.5 |
|
GP Percentage - product
revenue |
|
68.8 |
% |
|
70.6 |
% |
|
|
69.7 |
% |
|
69.9 |
% |
Operating income
(loss) |
$ |
2.2 |
|
$ |
(1.5 |
) |
|
$ |
(1.1 |
) |
$ |
(4.6 |
) |
Net income (loss) |
$ |
2.2 |
|
$ |
(0.1 |
) |
|
$ |
(5.8 |
) |
$ |
(1.3 |
) |
|
|
|
|
|
|
EBITDA (1) |
$ |
2.6 |
|
$ |
(0.0 |
) |
|
$ |
0.4 |
|
$ |
(0.8 |
) |
Adjusted EBITDA
(1) |
$ |
4.0 |
|
$ |
0.5 |
|
|
$ |
4.4 |
|
$ |
(0.2 |
) |
|
|
|
|
|
|
|
March 31, |
|
|
June 30, |
|
|
2018 |
|
|
2017 |
|
Long Term Debt |
$ |
- |
|
|
|
$ |
- |
|
|
Cash |
$ |
12.3 |
|
|
|
$ |
11.6 |
|
|
|
|
|
|
|
|
|
|
|
|
(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, “Misonix delivered solid
financial results in the 2018 fiscal third quarter, including our
second consecutive quarter of record revenue. The successful
ongoing execution of our strategies to aggressively grow our
leading ultrasonic medical device platform is providing Misonix
with a solid foundation to continue expanding market share
domestically as well as abroad. Importantly, our strong performance
reflects our ability to achieve top line growth, while preserving
healthy margins and maintaining a strong balance sheet and
liquidity position, which allows us to continue making
return-focused growth investments, including the development of our
next generation of products.
“Our record third quarter revenue of $12.4
million includes $4 million of license revenue related to an
agreement with a Chinese partner. In addition to the license
revenue, we generated continued revenue growth across domestic and
international markets, both on a quarterly and on a nine-month
basis, as well as ongoing growth in both consumables and sales of
our core products. Misonix’s strong revenue growth reflects growing
market demand for our products, resulting in a 17% growth in
product revenue for the quarter and a 24% increase year to date. We
are also very pleased to see our consumables business continue its
double-digit revenue growth trajectory, something the team has been
laser focused on given the high margins and added predictability of
this revenue stream. Excluding license revenue, consumables
accounted for 70% of total sales for the quarter, including 88% of
domestic sales.
“The strategic initiatives we have implemented
through-out the company and the changes we have made are yielding
positive results across our business and have positioned Misonix to
pursue a range of near- and long-term profitable growth
opportunities.
“Nexus, our next generation of products to be
launched later this year, will present a compelling value
proposition to both hospitals and physicians, while allowing
Misonix to further penetrate operating rooms by expanding our
addressable procedures. For the first nine months of fiscal 2018,
over 45,000 surgical procedures have been performed with Misonix
consumables, which positions us well to achieve our goal of 100,000
annual procedures world-wide within the next 3 years.
“Looking ahead, we are excited about the
opportunities to enhance shareholder value by expanding our scale,
growth and profitability. As we bring the next generation of
products to market and complete our transformation to a direct
commercialization platform, we remain confident in our ability to
end fiscal 2018 with double-digit top-line growth and to continue
that growth trend into fiscal 2019.”
Sales Performance Supplemental
Data
|
|
For the three months ended |
|
|
|
|
|
|
March 31, |
|
Net change |
|
|
|
2018 |
|
|
2017 |
|
$ |
|
% |
Total |
|
|
|
|
|
|
|
|
Consumables |
|
$ |
5,898,937 |
|
$ |
5,281,454 |
|
$ |
617,483 |
|
11.7 |
% |
Equipment |
|
|
2,530,195 |
|
|
1,896,309 |
|
|
633,886 |
|
33.4 |
% |
License |
|
|
4,010,000 |
|
|
- |
|
|
4,010,000 |
|
100.0 |
% |
Total |
|
$ |
12,439,132 |
|
$ |
7,177,763 |
|
$ |
5,261,369 |
|
73.3 |
% |
|
|
|
|
|
|
|
|
|
Domestic
product: |
|
|
|
|
|
|
|
|
Consumables |
|
$ |
4,340,759 |
|
$ |
3,736,960 |
|
$ |
603,799 |
|
16.2 |
% |
Equipment |
|
|
590,269 |
|
|
278,348 |
|
|
311,921 |
|
112.1 |
% |
Total |
|
$ |
4,931,028 |
|
$ |
4,015,308 |
|
$ |
915,720 |
|
22.8 |
% |
|
|
|
|
|
|
|
|
|
International product: |
|
|
|
|
|
|
|
|
Consumables |
|
$ |
1,558,178 |
|
$ |
1,544,494 |
|
$ |
13,684 |
|
0.9 |
% |
Equipment |
|
|
1,939,926 |
|
|
1,617,961 |
|
|
321,965 |
|
19.9 |
% |
Total |
|
$ |
3,498,104 |
|
$ |
3,162,455 |
|
$ |
335,649 |
|
10.6 |
% |
|
|
|
|
|
|
|
|
|
License |
|
|
4,010,000 |
|
|
- |
|
|
4,010,000 |
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
Joe Dwyer, Chief Financial Officer, added,
“Misonix generated record revenue and strong results across several
key financial metrics in the 2018 fiscal third quarter, including
net income, earnings per share, cash from operations and adjusted
EBITDA, reflecting the ongoing success we are achieving in
transforming our operations and cost structure to become more
efficient, while implementing effective sales and marketing
strategies focused on expanding our market footprint and creating
added demand for our products.
“In the third quarter, we saw significant
revenue contributions from our agreement with one of our Chinese
partners, as we recognized $4 million in license revenue following
the successful delivery of the SonaStar technology for future
production in China. The license revenue was the main driver of the
over 820 basis point gross margin improvement. Going forward, we
expect gross margin to be in-line with recent results at around
70%.
“We also further strengthened our liquidity
position, ending the fiscal third quarter with over $12.3 million
in cash, while remaining debt free. We believe it is important to
preserve our strong liquidity position while remaining as committed
as ever to profitably growing the business through organic growth
investments and select accretive acquisitions that will add
complementary capabilities to our product portfolio and generate
strong returns for our shareholders.
“With our focus on growth, disciplined expense
management, efforts to drive operational efficiencies, emphasis on
driving consumable sales and ongoing transition towards a direct
sales force model, we are confident we are putting in place an
operational structure that will appropriately position Misonix to
achieve its potential and create significant value for
shareholders.
“Given the strong performance in our fiscal
third quarter and year-to-date results, we are increasing our total
revenue guidance for the year ending June 30, 2018 to between $35
million and $36 million, which implies annual revenue growth of 28%
to
32%.
Fiscal Third Quarter 2018 Conference CallMisonix
will host a conference call at 4:30 p.m. ET today, Monday, May 7,
2018. Senior management will discuss the financial results
and host a question and answer session. The dial in number
for the audio conference call is 800-263-0877 (domestic) or
323-794-2094 (international), conference ID 7937390. Participants
may also listen to a live webcast of the call through the “Events
and Presentations” section under “Investor Relations” on Misonix’s
website at www.misonix.com.
A webcast replay will be available for 30 days
following the live event at www.misonix.com.
About Misonix, Inc.Misonix,
Inc. (Nasdaq:MSON) designs, develops, 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 StatementWith 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 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 Exchange
Commission, and other factors discussed in the Company’s Annual
Report on Form 10-K for the fiscal year ended June 30, 2017,
subsequent Quarterly Reports on Form 10-Q and Current Reports on
Form 8-K. The Company disclaims any obligation to update its
forward-looking relationships.
Contact: |
|
Joe Dwyer |
Joseph Jaffoni,
Norberto Aja, Jennifer Neuman |
Chief Financial
Officer |
JCIR |
Misonix, Inc. |
212-835-8500 or
mson@jcir.com |
631-694-9555 |
|
Misonix, Inc. and
SubsidiariesConsolidated Statements of
Operations(unaudited)
|
|
For the three months ended |
For the nine months ended |
|
|
March 31, |
|
March 31, |
|
|
|
|
|
2018 |
|
|
2017 |
|
|
|
2018 |
|
2017 |
|
|
|
|
|
|
|
|
Revenues |
|
|
|
|
|
|
|
|
|
Product |
$ |
|
8,429,132 |
|
$ |
7,177,763 |
|
|
$ |
24,033,700 |
|
$ |
19,379,768 |
|
License |
|
|
4,010,000 |
|
|
- |
|
|
|
4,010,000 |
|
- |
|
Total revenue |
|
|
|
12,439,132 |
|
|
7,177,763 |
|
28,043,700 |
|
19,379,768 |
|
|
|
|
|
|
|
|
Cost of
goods sold, exclusive of depreciation from consigned
product |
|
|
2,631,893 |
|
|
2,112,099 |
|
|
|
7,275,073 |
|
5,842,778 |
|
Gross profit |
|
|
|
9,807,239 |
|
|
5,065,664 |
|
20,768,627 |
|
13,536,990 |
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
Selling expenses |
|
|
4,447,421 |
|
|
3,587,859 |
|
|
|
11,937,649 |
|
10,184,680 |
|
General and administrative expenses |
|
|
1,925,086 |
|
|
2,484,962 |
|
|
|
6,879,077 |
|
6,504,202 |
|
Research and development expenses |
|
|
1,199,895 |
|
|
465,863 |
|
|
|
3,058,374 |
|
1,398,311 |
|
Total operating
expenses |
|
|
|
7,572,402 |
|
|
6,538,684 |
|
|
|
21,875,100 |
|
18,087,193 |
|
Income (loss) from
operations |
|
|
|
2,234,837 |
|
|
(1,473,020 |
) |
(1,106,473) |
|
(4,550,203 |
) |
|
|
|
|
|
|
|
Other income
(expense): |
|
|
|
|
|
|
|
|
|
Interest income |
|
|
|
9,074 |
|
|
18 |
|
|
|
9,131 |
|
56 |
|
Royalty income |
|
|
|
916 |
|
|
953,235 |
|
|
|
525,438 |
|
2,846,351 |
|
Other |
|
|
|
(5,712 |
) |
|
(6,940 |
) |
|
|
(15,474 |
) |
(15,576 |
) |
Total other income |
|
|
|
4,278 |
|
|
946,313 |
|
|
|
519,095 |
|
2,830,831 |
|
|
|
|
|
|
|
|
Income (loss) from
operations before income taxes |
|
|
|
2,239,115 |
|
|
(526,707 |
) |
(587,378 |
) |
(1,719,372 |
) |
|
|
|
|
|
|
|
Income tax expense
(benefit) |
|
|
|
- |
|
|
(219,000 |
) |
|
|
5,243,422 |
|
(275,000 |
) |
Net income (loss) from
continuing operations |
|
|
|
2,239,115 |
|
|
(307,707 |
) |
|
|
(5,830,800 |
) |
(1,444,372 |
) |
Discontinued operations: |
|
|
|
|
Income from discontinued operations net of tax expense
of $0 and $88,139 |
|
|
|
- |
|
|
161,861 |
|
|
|
- |
|
161,861 |
|
Net income from
discontinued operations |
|
|
|
- |
|
|
161,861 |
|
|
|
- |
|
161,861 |
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
|
2,239,115 |
|
$ |
(145,846 |
) |
|
$ |
(5,830,800 |
) |
$ |
(1,282,511 |
) |
|
|
|
|
|
|
|
Net income (loss) per
share: |
|
|
|
|
|
|
Continuing operations: |
|
|
|
|
|
|
Basic |
|
$ |
|
0.24 |
|
$ |
(0.04 |
) |
|
$ |
(0.65 |
) |
$ |
(0.18 |
) |
Diluted |
|
$ |
|
0.23 |
|
$ |
(0.04 |
) |
|
$ |
(0.65 |
) |
$ |
(0.18 |
) |
Discontinued
operations: |
|
|
|
|
|
|
Basic |
|
$ |
|
- |
|
$ |
0.02 |
|
|
$ |
- |
|
$ |
0.02 |
|
Diluted |
|
$ |
|
- |
|
$ |
0.02 |
|
|
$ |
- |
|
$ |
0.02 |
|
Combined |
|
|
|
|
|
|
Basic |
|
$ |
|
0.24 |
|
$ |
(0.02 |
) |
|
$ |
(0.65 |
) |
$ |
(0.16 |
) |
Diluted |
|
$ |
|
0.23 |
|
$ |
(0.02 |
) |
|
$ |
(0.65 |
) |
$ |
(0.16 |
) |
|
|
|
|
|
|
|
Weighted average shares
- Basic |
|
|
|
9,028,506 |
|
|
8,613,354 |
|
8,999,938 |
|
8,263,343 |
|
Weighted average shares
- Diluted |
|
|
|
9,575,944 |
|
|
8,613,354 |
|
8,999,938 |
|
8,263,343 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Misonix, Inc. and
SubsidiariesConsolidated Balance
Sheets
|
|
March 31, |
|
June 30, |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
(unaudited) |
|
|
Assets |
|
|
|
|
Current assets: |
|
|
|
|
Cash and cash
equivalents |
|
$ |
12,309,631 |
|
|
$ |
11,557,071 |
|
Accounts receivable,
less allowance for doubtful accounts of $96,868 and $96,868,
respectively |
|
|
4,478,779 |
|
|
|
5,133,389 |
|
Inventories, net |
|
|
5,164,501 |
|
|
|
4,992,434 |
|
Prepaid expenses and
other current assets |
|
|
861,369 |
|
|
|
918,899 |
|
Total current
assets |
|
|
22,814,280 |
|
|
|
22,601,793 |
|
|
|
|
|
|
Property, plant and
equipment, net of accumulated amortization and depreciation of
$8,686,372 and $7,794,580, respectively |
|
|
4,019,410 |
|
|
|
3,730,203 |
|
Patents, net of
accumulated amortization of $1,030,313 and $995,568,
respectively |
|
|
745,777 |
|
|
|
719,136 |
|
Goodwill |
|
|
1,701,094 |
|
|
|
1,701,094 |
|
Intangible and other
assets |
|
|
433,393 |
|
|
|
282,876 |
|
Deferred income
tax |
|
|
- |
|
|
|
4,334,547 |
|
Total assets |
|
$ |
29,713,954 |
|
|
$ |
33,369,649 |
|
|
|
|
|
|
Liabilities and
shareholders' equity |
|
|
|
|
Current
liabilities: |
|
|
|
|
Accounts payable |
|
$ |
1,421,719 |
|
|
$ |
1,861,228 |
|
Accrued expenses and
other current liabilities |
|
|
2,744,134 |
|
|
|
3,346,138 |
|
Total current
liabilities |
|
|
4,165,853 |
|
|
|
5,207,366 |
|
|
|
|
|
|
Deferred lease
liability |
|
|
2,339 |
|
|
|
9,354 |
|
Deferred income |
|
|
18,601 |
|
|
|
13,087 |
|
Total liabilities |
|
|
4,186,793 |
|
|
|
5,229,807 |
|
|
|
|
|
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
|
Shareholders'
equity: |
|
|
|
|
Common stock, $.01 par
value-shares authorized 20,000,000; 9,402,466 and 9,357,166 shares
issued and outstanding, respectively |
|
|
94,025 |
|
|
|
93,572 |
|
Additional paid-in
capital |
|
|
39,117,601 |
|
|
|
36,808,810 |
|
Accumulated
deficit |
|
|
(13,684,465 |
) |
|
|
(8,762,540 |
) |
Total shareholders'
equity |
|
|
25,527,161 |
|
|
|
28,139,842 |
|
Total liabilities and
shareholders' equity |
|
$ |
29,713,954 |
|
|
$ |
33,369,649 |
|
|
|
|
|
|
Use of Non-GAAP Financial MeasuresThe 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 its next generation
platform, which will not be a recurring cost when the project is
completed in late 2018.
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
SubsidiariesReconciliation of GAAP Results to
Non-GAAP Measures(unaudited)
|
|
|
|
|
|
|
(in millions) |
Three Months Ended |
|
Nine Months Ended |
|
March 31, |
|
March 31, |
|
|
2018 |
|
2017 |
|
|
|
2018 |
|
|
2017 |
|
|
|
|
|
|
|
EBITDA: |
|
|
|
|
|
Net income (loss) |
$ |
2.2 |
$ |
(0.1 |
) |
|
$ |
(5.8 |
) |
$ |
(1.3 |
) |
Depreciation and
amortization |
|
0.4 |
|
0.3 |
|
|
$ |
1.0 |
|
|
0.8 |
|
Income taxes |
|
- |
|
(0.2 |
) |
|
$ |
5.2 |
|
|
(0.3 |
) |
EBITDA |
|
2.6 |
|
(0.0 |
) |
|
$ |
0.4 |
|
|
(0.8 |
) |
|
|
|
|
|
|
Non-cash
compensation |
|
0.6 |
|
0.5 |
|
|
$ |
2.1 |
|
|
0.6 |
|
Next generation
engineering |
|
0.8 |
|
- |
|
|
$ |
1.9 |
|
|
- |
|
Adjusted EBITDA |
$ |
4.0 |
$ |
0.5 |
|
|
$ |
4.4 |
|
$ |
(0.2 |
) |
Misonix (NASDAQ:MSON)
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From Mar 2024 to Apr 2024
Misonix (NASDAQ:MSON)
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From Apr 2023 to Apr 2024