BOCA RATON, Fla., May 9, 2019 /PRNewswire/ -- Sensus
Healthcare, Inc. (Nasdaq: SRTS), a medical device company
specializing in highly effective, non-invasive treatments for both
oncological and non-oncological conditions, announces financial
results for the three months ended March 31,
2019.
Highlights from the first quarter of 2019 and recent weeks
include:
- Premier, Inc. added superficial radiation therapy (SRT) to its
group purchasing contracts with a network of approximately 4,000
member hospitals and health systems across the U.S., effective
August 1
- U.S. Food and Drug Administration (FDA) cleared Sculptura™, the
company's Modulated Intra Operative Radiation Therapy (M-IORT)
system
- Sold a Sculptura system to the Rabin Medical Center in
Israel
- Signed a Sculptura research and development agreement with the
Perelman School of Medicine at the University
of Pennsylvania
- Signed a new lease in Israel
to increase manufacturing capacity
- Appointed Ziv Karni, Ph.D. as
Chief Scientific Officer for Laser Systems
- Announced results from a five-year retrospective study with SRT
for non-melanoma skin cancer showing a cure rate of 98.9%, which
exceeds the Mohs surgery cure rate
- Shipped 18 systems during the quarter, including eight SRT-100
Vision systems
- Worldwide installed base surpassed 400 systems, with more than
100 being used to treat keloids
- Reported revenues of $5.4
million, compared with $6.0
million for the first quarter of 2018
- Ended the quarter with $11.0
million in cash and investments; after the close of the
quarter, $5.5 million of accounts
receivable were collected
Management Commentary
"The first quarter and recent weeks were highlighted by
Sculptura FDA clearance and selling our second Sculptura system to
Rabin Medical Center, a renowned institution in Israel focused on researching the latest
technologies," said Joe Sardano,
Chairman and Chief Executive Officer. "This sale, along with
the Q4 2018 sale to the Perelman School of Medicine at the
University of Pennsylvania and our
subsequent research and development agreement, is expected to
provide important data for a variety of indications. We are
very encouraged by these purchases from such prestigious
institutions and are gratified they view Sculptura as an important
advancement in cancer treatment. We have staffed up our oncology
sales team, which now numbers seven people, in anticipation of a
measured sales ramp through the year for this innovative
product."
Mr. Sardano continued, "Premier – one of the nation's largest
group purchasing organizations serving approximately 4,000
hospitals and health systems and about 165,000 other providers and
organizations – has added SRT to its list of approved products for
its members, effective August 1. This achievement is the
culmination of more than six months of work on the part of Sensus
and will support our efforts to penetrate the hospital market. We
will now begin work with Premier to secure inclusion of Sculptura
at an appropriate time."
"In recent weeks topline results from a five-year retrospective
study of non-melanoma skin cancer patients treated with SRT were
announced. The study was conducted across four U.S. sites and
showed a 98.9% cure rate among 516 male and female patients with
776 skin cancer lesions. Of note, this cure rate exceeded the
reported cure rate for Mohs surgery. We intend to highlight
this study in our marketing materials and expect that this cure
rate will further strengthen the efficacy discussion for SRT."
"We continue to increase our footprint in Israel, the site of our R&D operations, in
particular for new laser products and for sales outside the
U.S. We plan to expand our manufacturing capacity and have
signed a lease for a factory. We expect to begin production
there by the end of the year," Mr. Sardano added.
Commenting on financial results, Mr. Sardano said, "First
quarter revenues were impacted as a key customer worked to shore up
their capital position to support faster-than-expected growth. We
made the decision to temporarily moderate sales to them and not
extend further credit. Financing now appears to be in place and
subsequent to quarter end they paid down over $5 million of their outstanding accounts
receivables. Although there is strong demand, we made the decision
to recover the Q1 shortfall in sales, numbering seven units, to
this customer over the next few quarters so as not to overwhelm our
infrastructure. We expect to make up all lost sales and we reaffirm
expectations for full-year double-digit revenue growth."
First Quarter 2019 Financial Results
Revenues for the first quarter of 2019 were $5.4 million, compared with $6.0 million for the first quarter of 2018. This
was attributable to fewer sales of the higher-priced SRT-100 Vision
product during the quarter.
Gross profit for the first quarter of 2019 was $3.3 million, or 61.0% of revenues, compared with
$3.9 million, or 66.2 % of revenues,
for the first quarter of 2018. This was mainly due to a shift
in product mix.
Selling and marketing expense for the first quarter of 2019 was
$2.5 million, compared with
$2.2 million for the first quarter of
2018. The increase was primarily due to increased
headcount.
General and administrative expense for the first quarter of 2019
was $1.0 million, compared with
$1.3 million for the first quarter of
2018. This was due to a one-time stock-compensation expense of
$0.4 million in the 2018 quarter,
offset by net other increases.
Research and development expense for the first quarter of 2019
was $2.0 million, compared with
$1.5 million for the first quarter of
2018. The increase was mainly due to expenses related to the FDA
clearance of Sculptura in February, as well as the ramp-up in
production.
Net loss for the first quarter of 2019 was $(2.1) million, or ($0.13) per share, compared with a net loss of
$(1.1) million, or $(0.08) per share, for the first quarter of
2018.
Adjusted EBITDA for the first quarter of 2019 was $(1.9) million, compared with $(0.5) million for the first quarter of 2018.
Adjusted EBITDA is defined as earnings before depreciation and
amortization, income taxes, interest and stock-compensation
expense. Please see below for a reconciliation between GAAP and
non-GAAP financial measures, and the specific reasons these
non-GAAP financial measures are provided.
Cash and investments were $11.0
million as of March 31, 2019,
compared with $15.4 million as of
December 31, 2018. The company had no
outstanding borrowings on its revolving line of credit at
March 31, 2019. During the first
quarter of 2019 the company received $2.7
million from the exercise of IPO warrants, which expire on
June 8, 2019. Accounts receivable as
of March 31, 2019 were $16.9 million, compared with $13.1 million at December
31, 2018. Subsequent to the end of the quarter, Sensus
collected $5.5 million in outstanding
receivables.
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 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.
Conference Call and Webcast
SENSUS HEALTHCARE,
INC.
|
|
GAAP TO NON-GAAP
RECONCILIATION
|
|
|
|
|
|
|
|
For the Three
Months Ended March 31,
|
|
|
2019
|
|
2018
|
|
|
|
|
|
|
Net Loss, as
reported
|
$
(2,121,018)
|
|
$
(1,125,913)
|
|
Add:
|
|
|
|
|
Depreciation and
amortization
|
128,435
|
|
100,534
|
|
Stock
compensation expense
|
154,535
|
|
541,608
|
|
Interest,
net
|
(72,020)
|
|
11,393
|
|
Adjusted
EBITDA, non GAAP
|
$
(1,910,068)
|
|
$
(472,378)
|
|
|
|
|
|
|
|
|
|
|
|
The Company 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 2019 first quarter, provide a business update and answer
questions. To access the conference call, the dial-in numbers are
855-940-9473 (U.S. Toll Free),
412-317-5220 (International) and 855-669-9657 (Canada Toll Free).
Please direct the operator to be connected to the Sensus Healthcare
call.
Following the conclusion of the conference call, a replay will
be available through May 16, 2019 and
can be accessed by dialing 877-344-7529 (U.S. Toll Free), 412-317-0088 (International) and
855-669-9658 (Canada Toll Free). All listeners should provide the
operator with the following replay access code: 10130756. An
archived webcast of the call will also be available in the Investor
Relations section of the Company's website for a period of time at
www.sensushealthcare.com.
About Sensus Healthcare
Sensus Healthcare, Inc. is a medical device company specializing
in highly effective, non-invasive, minimally-invasive, and
cost-effective treatments for both oncological and non-oncological
conditions. The Sculptura™ robotic radiation oncology system
provides targeted intraoperative triple-modulated radiotherapy
(IORT) and Brachytherapy utilizing our proprietary,
state-of-the-art 3D Beam Sculpting™ to treat patients undergoing
cancer treatment during surgery, or at the tumor site, with a
single dose. Sensus also offers its proprietary low-energy X-ray
technology known as superficial radiation therapy (SRT), which is
the culmination of more than a decade of research and development,
to treat non-melanoma skin cancers and keloids with its SRT-100™,
SRT-100+™ and SRT-100 Vision™ systems. With its portfolio of
innovative medical device products, Sensus provides revolutionary
treatment options to enhance the quality of life of patients around
the world.
For more information, 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
forward-looking statements can be identified by the use of
forward-looking terminology, including the terms "believes,"
"estimates," "anticipates," "expects," "plans," "intends," "may,"
"could," "might," "will," "should," "approximately," "potential"
or, in each case, their negative or other variations thereon or
comparable terminology, although not all forward-looking statements
contain these words.
By their nature, forward-looking statements involve risks and
uncertainties because they relate to events, competitive dynamics,
and healthcare, regulatory and scientific developments and depend
on the economic circumstances that may or may not occur in the
future or may occur on longer or shorter timelines than
anticipated. Although we believe that we have a reasonable basis
for each forward-looking statement contained in this press release,
we caution you that forward-looking statements are not guarantees
of future performance and that 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,
among other factors: our ability to achieve and sustain
profitability; market acceptance of our product lines; our ability
to successfully commercialize our products; our ability to compete
effectively in selling our products and services, including
responding to technological change and cost containment efforts of
our customers; our need and ability to obtain additional financing
in the future; our ability to expand, manage and maintain our
direct sales and marketing organizations; our ability to obtain and
maintain intellectual property of sufficient scope to adequately
protect our products, and our ability to avoid infringing or
otherwise violating the intellectual property rights of third
parties; the willingness of healthcare providers to purchase our
products if coverage, reimbursement and pricing from third party
payors for procedures using our products declines; the level and
availability of government and third party payor reimbursement for
clinical procedures using our products; our ability to effectively
manage our anticipated growth, including hiring and retaining
qualified personnel; the regulatory requirements applicable to us
and our competitors; our ability to manufacture our products to
meet demand; our current reliance on third party manufacturers and
sole- or single-source suppliers, as well as our ability to
successfully transition manufacturing of our products in-house; our
ability to reduce the per unit manufacturing costs; our ability to
efficiently manage our manufacturing processes; the regulatory and
legal risks, and certain operating risks, that our international
operations subject us to; the fact that product quality issues or
product defects may harm our business; the accuracy of our
financial statements and accounting estimates, including allowances
for accounts receivable and inventory obsolescence; any product
liability claims; new legislation, administrative rules, or
executive orders, including those that impact taxes and
international trade regulation; concentration of our customers in
the U.S. and China, including the
concentration of sales to one particular customer in the U.S.; and
other risks described from time to time in Sensus Healthcare's
filings with the Securities and Exchange Commission, including our
Annual Report on Form 10-K.
In addition, even if our results of operations, financial
condition and liquidity, and the development of the industry in
which we operate are consistent with the forward-looking statements
contained in this press release, they may not be predictive of
results or developments in future periods. 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. You should read carefully our "Cautionary
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 BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of
March 31,
|
|
|
As of
December 31,
|
|
|
|
|
2019
|
|
|
2018
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
Current
Assets
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
6,251,884
|
|
|
$
|
12,484,256
|
|
|
Accounts receivable,
net
|
|
|
16,881,672
|
|
|
|
13,145,934
|
|
|
Inventories
|
|
|
1,551,419
|
|
|
|
1,628,817
|
|
|
Investment in debt
securities
|
|
|
4,699,954
|
|
|
|
2,892,190
|
|
|
Prepaid and other
current assets
|
|
|
2,252,755
|
|
|
|
1,750,994
|
|
|
Total Current
Assets
|
|
|
31,637,684
|
|
|
|
31,902,191
|
|
|
Property and
Equipment, Net
|
|
|
899,792
|
|
|
|
891,029
|
|
|
Patent Rights,
Net
|
|
|
409,640
|
|
|
|
433,737
|
|
|
Deposits
|
|
|
24,272
|
|
|
|
24,272
|
|
|
Operating Lease
Right-of-Use Assets, Net
|
|
|
749,114
|
|
|
|
—
|
|
|
Total
Assets
|
|
$
|
33,720,502
|
|
|
$
|
33,251,229
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
|
|
|
|
|
Accounts payable and
accrued expenses
|
|
$
|
4,075,214
|
|
|
$
|
5,166,239
|
|
|
Deferred revenue,
current portion
|
|
|
744,996
|
|
|
|
722,025
|
|
|
Operating lease
liabilities, current portion
|
|
|
240,972
|
|
|
|
—
|
|
|
Product
warranties
|
|
|
137,942
|
|
|
|
136,217
|
|
|
Total Current
Liabilities
|
|
|
5,199,124
|
|
|
|
6,024,481
|
|
|
Operating lease
liabilities, Net of Current Portion
|
|
|
510,784
|
|
|
|
—
|
|
|
Deferred Revenue,
Net of Current Portion
|
|
|
815,164
|
|
|
|
766,732
|
|
|
Total
Liabilities
|
|
|
6,525,072
|
|
|
|
6,791,213
|
|
|
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; 16,546,196 issued and 16,512,742
outstanding at March 31, 2019; 16,145,915 issued and 16,112,461
outstanding at December 31, 2018
|
|
|
165,461
|
|
|
|
161,459
|
|
|
Additional paid-in
capital
|
|
|
42,810,335
|
|
|
|
39,957,905
|
|
|
Treasury stock,
33,454 shares at cost, at March 31, 2019 and December 31, 2018,
respectively
|
|
|
(133,816)
|
|
|
|
(133,816)
|
|
|
Accumulated
deficit
|
|
|
(15,646,550)
|
|
|
|
(13,525,532)
|
|
|
Total
Stockholders' Equity
|
|
|
27,195,430
|
|
|
|
26,460,016
|
|
|
Total Liabilities
and Stockholders' Equity
|
|
$
|
33,720,502
|
|
|
$
|
33,251,229
|
|
|
|
|
|
|
|
|
|
|
|
|
SENSUS HEALTHCARE,
INC.
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
|
|
March
31,
|
|
|
|
|
2019
|
|
|
2018
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
5,436,599
|
|
$
|
5,955,462
|
|
Cost of
Sales
|
|
|
2,120,621
|
|
|
2,015,200
|
|
Gross
Profit
|
|
|
3,315,978
|
|
|
3,940,262
|
|
Operating
Expenses
|
|
|
|
|
|
|
|
Selling and
marketing
|
|
|
2,530,346
|
|
|
2,214,911
|
|
General and
administrative
|
|
|
1,013,162
|
|
|
1,342,253
|
|
Research and
development
|
|
|
1,965,507
|
|
|
1,497,618
|
|
Total Operating
Expenses
|
|
|
5,509,015
|
|
|
5,054,782
|
|
Loss From
Operations
|
|
|
(2,193,037)
|
|
|
(1,114,520)
|
|
Other Income
(Expense)
|
|
|
|
|
|
|
|
Interest
income
|
|
|
72,020
|
|
|
22,022
|
|
Interest
expense
|
|
|
—
|
|
|
(33,415)
|
|
Other Income
(Expense), net
|
|
|
72,020
|
|
|
(11,393)
|
|
Net
Loss
|
|
$
|
(2,121,018)
|
|
$
|
(1,125,913)
|
|
Net Loss per share
– basic and diluted
|
|
$
|
(0.13)
|
|
$
|
(0.08)
|
|
Weighted average
number of shares used in
computing net loss per share – basic and diluted
|
|
|
16,119,726
|
|
|
13,331,553
|
|
View original
content:http://www.prnewswire.com/news-releases/sensus-healthcare-reports-first-quarter-2019-financial-results-300847576.html
SOURCE Sensus Healthcare, Inc.