Misonix, Inc. (Nasdaq: MSON) (“Misonix” or the “Company”), a
provider of minimally invasive therapeutic ultrasonic medical
devices and regenerative products that enhance clinical outcomes,
today reported unaudited financial results for the fiscal 2021
first quarter ended September 30, 2020 as summarized below:
|
Three Months Ended |
|
September 30, |
|
|
2020 |
|
|
2019 |
|
|
|
|
Revenue |
$ |
17,735,342 |
|
$ |
11,145,922 |
|
Gross profit |
$ |
12,624,741 |
|
$ |
7,909,275 |
|
Gross profit percentage |
|
71.2 |
% |
|
71.0 |
% |
Pretax loss |
$ |
(4,978,652 |
) |
$ |
(2,288,508 |
) |
Income tax benefit |
$ |
- |
|
$ |
(4,085,000 |
) |
Net (loss) income |
$ |
(4,978,652 |
) |
$ |
1,796,492 |
|
|
|
|
EBITDA (1) |
$ |
(2,921,550 |
) |
$ |
(1,792,115 |
) |
Adjusted EBITDA (1) |
$ |
(2,155,417 |
) |
$ |
307,444 |
|
(1) Definitions and disclosures regarding non-GAAP
financial information including reconciliations are included at the
end of this press release.
On September 27, 2019, Misonix acquired
privately held Solsys Medical, LLC (“Solsys”). The actual results
presented for the three months ended September 30, 2020 reflect the
Company’s legacy Misonix operations as well as revenue and expenses
from the acquired Solsys operations. The comparable three-month
period ended September 30, 2019 reflects Misonix’s operations as
well as four days from the acquired Solsys operations.
First Quarter Fiscal 2021
Highlights:
- The novel coronavirus disease (“COVID-19”) continued to
materially impact the industry and Misonix’s business in the first
quarter of fiscal 2021 as elective procedures were delayed in order
to treat patients affected by the COVID-19 pandemic and to allow
health providers to comply with new safety measures.
- Fiscal 2021 first quarter revenue increased 59.1% to $17.7
million, compared to $11.1 million in the fiscal 2020 first
quarter. On a pro forma basis, assuming Misonix had acquired Solsys
for the full fiscal 2020 first quarter, total revenue for the
fiscal 2021 first quarter decreased 9.0%, and:
- Domestic surgical revenue increased 21.5%
- International revenue declined 35.0%
- Wound revenue declined 12.6%
- Gross profit percentage on sales for the fiscal 2021 first
quarter remained relatively flat at 71.2%, compared with 71.0% in
the fiscal 2020 first quarter.
- Operating expenses increased $6.5 million during the fiscal
2021 first quarter as compared with the fiscal 2020 first quarter,
reflecting incremental operating expenses related to Solsys Medical
operations.
- Adjusted EBITDA narrowed to a loss of $2.2 million for the
fiscal 2021 first quarter.
- Net loss for the fiscal 2021 first quarter was $5.0 million, or
a loss of $0.29 per diluted share, compared to net income of $1.8
million, or net income of $0.17 per diluted share, in the fiscal
2020 first quarter.
- In September 2020, Misonix entered into an exclusive supply and
distribution agreement with Gunze Limited for
TheraGenesis® Bilayer Wound Matrix, a proprietary, FDA
cleared, porcine tendon derived collagen wound matrix with a
silicone film layer used to treat trauma, burn and reconstructive
wounds.
Stavros Vizirgianakis, Chief Executive Officer
of Misonix stated, “Misonix’s fiscal 2021 first quarter financial
results reflect ongoing improvements in domestic procedural volumes
and continued robust sales of our next generation Nexus platform,
as highlighted in the preliminary results we announced in early
October. As a result, pro-forma revenues showed a marked sequential
improvement, decreasing 9.0% year-over-year from a 21.6%
year-over-year decline last quarter.
“I am pleased with our ability to rapidly
execute on our various operational initiatives, which has helped
offset many of the challenges brought on by the pandemic across
almost every aspect of our business and the global healthcare
industry at large. The improved results highlight our ability to
continue to grow the business and maintain healthy gross margins
with stronger anticipated gains, as the world reaches some level of
normality through vaccinations and improved therapeutics.
“With a dedicated and talented team, a
collaborative and constructive culture, continued investments in
R&D and innovations, as well as the ability to partner with
other great companies to bring new solutions to market, Misonix has
the strength and resources to grow and enhance shareholder
value.”
Sales Performance Supplemental Data
(unaudited)
|
|
For the three months ended |
|
|
|
|
September 30, |
|
Net change |
|
|
2020 |
|
2019 |
|
$ |
% |
Total |
|
|
|
|
|
|
|
Surgical |
|
$ |
9,099,464 |
|
$ |
9,611,298 |
|
$ |
(511,834 |
) |
-5.3 |
% |
Wound |
|
|
8,635,878 |
|
|
1,534,624 |
|
|
7,101,254 |
|
462.7 |
% |
Total |
|
$ |
17,735,342 |
|
$ |
11,145,922 |
|
$ |
6,589,420 |
|
59.1 |
% |
|
|
|
|
|
|
|
|
Domestic: |
|
|
|
|
|
|
|
Surgical |
|
$ |
6,215,171 |
|
$ |
5,115,022 |
|
$ |
1,100,149 |
|
21.5 |
% |
Wound |
|
|
8,528,240 |
|
|
1,429,886 |
|
|
7,098,354 |
|
496.4 |
% |
Total |
|
$ |
14,743,411 |
|
$ |
6,544,908 |
|
$ |
8,198,503 |
|
125.3 |
% |
|
|
|
|
|
|
|
|
International: |
|
|
|
|
|
|
|
Surgical |
|
$ |
2,884,293 |
|
$ |
4,496,276 |
|
$ |
(1,611,983 |
) |
-35.9 |
% |
Wound |
|
|
107,638 |
|
|
104,738 |
|
|
2,900 |
|
2.8 |
% |
Total |
|
$ |
2,991,931 |
|
$ |
4,601,014 |
|
$ |
(1,609,083 |
) |
-35.0 |
% |
Joe Dwyer, Chief Financial Officer, added,
“While we are encouraged by the sequential growth in revenue from
$13.7 million in our fiscal fourth quarter to $17.7 million in the
current quarter, we are also pleased with the results of our
efforts to lower operating expenses and conserve cash. Our cash
used in operations was $3.8 million in the current quarter, down
from approximately $8.0 million in the second and third quarters of
fiscal 2020. This led to an adjusted EBITDA loss of $2.2 million
for the first quarter of fiscal 2021, compared with an average loss
of $4.8 million for each of the two prior quarters, and allowed us
to end the quarter with cash of $34.9 million.
“In addition, we continue to focus on achieving
added cost efficiencies from our acquisition of Solsys Medical, and
to drive incremental cost savings across the Company as a whole,
while not sacrificing our ability to support revenue growth and
bring new products and solutions to market. We believe these
ongoing actions will assist with preserving our strong balance
sheet and help us manage through the pandemic as a more effective
and efficient company.”
Fiscal First Quarter 2021 Conference
CallMisonix will host a conference call and webcast today,
Thursday, November 5, 2020, at 4:30 p.m. ET to discuss its
financial results and operations and host a question and answer
session. To access the conference call, interested parties may dial
866-269-4261 (domestic) or 323-347-3277 (international) conference
ID 6012151. 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) is a provider of minimally invasive
therapeutic ultrasonic medical devices and regenerative tissue
products. Its surgical team markets and sells Nexus, BoneScalpel,
and SonaStar, which facilitate precise bone sculpting and removal
of soft and hard tumors and tissue, primarily in the areas of
neurosurgery, orthopedic, plastic and maxillo-facial surgery. The
Company’s wound team markets and sells TheraSkin, Therion,
TheraGenesis and SonicOne to debride, treat and heal chronic and
traumatic wounds in inpatient, outpatient and physician office
sites of service. At Misonix, Better Matters! That is why
throughout the Company’s history, Misonix has maintained
its commitment to medical technology innovation and the development
of products that radically improve outcomes for patients.
Additional information is available on the Company’s web site at
www.misonix.com.
Safe Harbor Statement With 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 include
projections regarding Misonix’s future operating results, ability
to grow revenue, and ability to maintain gross profit margins.
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, the impact of COVID-19, or other pandemics, including
any increased rates of infection, and the impact of related
governmental, individual and business responses. This includes our
ability to obtain or forecast accurate surgical procedure volume in
the midst of the COVID-19 pandemic; the risk that the COVID-19
pandemic could lead to further material delays and cancellations
of, or reduced demand for, surgical procedures; curtailed or
delayed capital spending by hospitals and surgical centers;
potential closures of our facilities; delays in gathering clinical
evidence; diversion of management and other resources to respond to
the COVID-19 outbreak; the impact of global and regional economic
and credit market conditions on healthcare spending; the risk that
the COVID-19 virus disrupts local economies and causes economies in
our key markets to enter prolonged recessions; the ability of our
staff to travel to work; our ability to maintain adequate
inventories and delivery capabilities; the impact on our customers
and supply chain, and the impact on demand in general. These
forward-looking statements are also subject to uncertainties and
change resulting from 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; the
entry of competitive products into the marketplace; 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 clearance of pending and/or contemplated
510(k) filings; our ability to achieve and maintain profitability
in our business lines; access to capital; and other factors
described from time to time in our filings with the Securities and
Exchange Commission, including our Annual Report on Form 10-K for
the fiscal year ended June 30, 2020, subsequent Quarterly Reports
on Form 10-Q and Current Reports on Form 8-K. The Company disclaims
any obligation to update its forward-looking statements.
Contact: |
|
Joe Dwyer |
Norberto Aja, Jennifer Neuman |
Chief Financial Officer |
JCIR |
Misonix, Inc. |
212-835-8500 or mson@jcir.com |
631-694-9555 |
|
Misonix, Inc. and
SubsidiariesCondensed Consolidated Statements of
Operations(Unaudited)
|
|
For the three months ended |
|
|
September 30, |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
|
|
|
Revenue |
|
$ |
17,735,342 |
|
|
$ |
11,145,922 |
|
Cost of revenue |
|
|
5,110,601 |
|
|
|
3,236,647 |
|
Gross profit |
|
|
12,624,741 |
|
|
|
7,909,275 |
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
Selling expenses |
|
|
10,969,678 |
|
|
|
5,200,582 |
|
General and administrative expenses |
|
|
4,452,328 |
|
|
|
4,207,807 |
|
Research and development expenses |
|
|
1,250,174 |
|
|
|
771,411 |
|
Total operating expenses |
|
|
16,672,180 |
|
|
|
10,179,800 |
|
Loss from operations |
|
|
(4,047,439 |
) |
|
|
(2,270,525 |
) |
|
|
|
|
|
Other income (expense): |
|
|
|
|
Interest income |
|
|
1,092 |
|
|
|
18,877 |
|
Interest expense |
|
|
(933,722 |
) |
|
|
(36,097 |
) |
Other |
|
|
1,417 |
|
|
|
(763 |
) |
Total other income
(expense) |
|
|
(931,213 |
) |
|
|
(17,983 |
) |
|
|
|
|
|
Loss from operations before
income taxes |
|
|
(4,978,652 |
) |
|
|
(2,288,508 |
) |
|
|
|
|
|
Income tax benefit |
|
|
- |
|
|
|
4,085,000 |
|
|
|
|
|
|
Net (loss) income |
|
$ |
(4,978,652 |
) |
|
$ |
1,796,492 |
|
|
|
|
|
|
Net (loss) income per
share: |
|
|
|
|
Basic |
|
$ |
(0.29 |
) |
|
$ |
0.18 |
|
Diluted |
|
$ |
(0.29 |
) |
|
$ |
0.17 |
|
|
|
|
|
|
Weighted average shares -
Basic |
|
|
17,213,686 |
|
|
|
9,686,402 |
|
Weighted average shares -
Diluted |
|
|
17,213,686 |
|
|
|
10,213,085 |
|
|
|
|
|
|
Misonix, Inc. and
SubsidiariesCondensed Consolidated Balance
Sheets
|
|
|
September 30, |
|
|
June 30, |
|
|
|
2020 |
|
|
|
2020 |
|
|
|
|
(Unaudited) |
|
|
|
Assets |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
34,942,484 |
|
|
$ |
37,978,809 |
|
Accounts receivable, less
allowance for doubtful accounts of $4,204,537 and $2,573,968,
respectively |
|
|
11,727,089 |
|
|
|
11,064,768 |
|
Inventories, net |
|
|
13,794,719 |
|
|
|
14,010,684 |
|
Prepaid expenses and other
current assets |
|
|
1,291,281 |
|
|
|
1,668,244 |
|
Total current assets |
|
|
61,755,573 |
|
|
|
64,722,505 |
|
|
|
|
|
|
|
|
Property, plant and equipment,
net of accumulated amortization and depreciation of $13,380,599 and
$12,715,917, respectively |
|
|
7,710,870 |
|
|
|
7,304,258 |
|
Patents, net of accumulated
amortization of $1,377,417 and $1,341,976, respectively |
|
|
764,968 |
|
|
|
784,318 |
|
Goodwill |
|
|
108,234,664 |
|
|
|
108,310,350 |
|
Intangible assets |
|
|
20,857,879 |
|
|
|
21,281,136 |
|
Lease right-of-use assets |
|
|
1,322,497 |
|
|
|
1,098,830 |
|
Other assets |
|
|
316,817 |
|
|
|
322,310 |
|
Total assets |
|
$ |
200,963,268 |
|
|
$ |
203,823,707 |
|
|
|
|
|
|
|
|
Liabilities and
shareholders’ equity |
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
Accounts payable |
|
$ |
4,904,715 |
|
|
$ |
4,273,568 |
|
Accrued expenses and other
current liabilities |
|
|
7,129,089 |
|
|
|
7,515,751 |
|
Current portion of lease
liabilities |
|
|
509,105 |
|
|
|
414,058 |
|
Current portion of notes
payable |
|
|
7,216,324 |
|
|
|
5,099,744 |
|
Total current liabilities |
|
|
19,759,233 |
|
|
|
17,303,121 |
|
|
|
|
|
|
|
|
Non-current liabilities: |
|
|
|
|
|
|
Notes payable |
|
|
37,278,924 |
|
|
|
38,595,505 |
|
Lease liabilities |
|
|
858,526 |
|
|
|
723,553 |
|
Deferred tax liabilities |
|
|
33,293 |
|
|
|
33,293 |
|
Other non-current
liabilities |
|
|
570,299 |
|
|
|
516,665 |
|
Total liabilities |
|
|
58,500,275 |
|
|
|
57,172,137 |
|
|
|
|
|
|
|
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders’
equity |
|
|
|
|
|
|
Common stock, $.0001 par value; shares authorized 40,000,000;
17,377,748 and 17,369,435 shares issued and outstanding in each
period |
|
|
1,738 |
|
|
|
1,737 |
|
Additional paid-in
capital |
|
|
186,751,178 |
|
|
|
185,961,104 |
|
Accumulated deficit |
|
|
(44,289,923 |
) |
|
|
(39,311,271 |
) |
Total shareholders’
equity |
|
|
142,462,993 |
|
|
|
146,651,570 |
|
|
|
|
|
|
|
|
Total liabilities and
shareholders’ equity |
|
$ |
200,963,268 |
|
|
$ |
203,823,707 |
|
|
|
|
|
|
|
|
Use of Non-GAAP Financial
MeasuresThe Company has presented the following non-GAAP
financial measures in this press release: Pro-forma revenue, EBITDA
and Adjusted EBITDA. The Company has presented pro forma revenue in
this press release, which is a non-GAAP financial measurement. The
Company acquired the operations of Solsys Medical at the end of its
first quarter ended September 30, 2019. The Company has presented
pro forma revenue to show revenue on a comparable basis as if
Solsys had been acquired at the beginning of the comparative
periods presented. 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 M&A transaction fees. Historically,
the Company excluded bad debt expense from its calculation of
Adjusted EBITDA by adding bad debt expense to EBITDA. Beginning
with the quarter ended September 30, 2020, the Company will no
longer exclude bad debt expense from the calculation Adjusted
EBITDA, and prior comparative periods will be adjusted
accordingly.
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)
|
|
|
Three Months Ended |
|
|
|
|
|
|
September 30, |
|
Net Change |
|
|
|
|
2020 |
|
|
2019 |
|
$ |
% |
|
|
|
|
|
|
|
|
|
Revenue as reported |
|
$ |
17,735,342 |
|
$ |
11,145,922 |
|
$ |
6,589,420 |
|
59.1 |
% |
Solsys revenue |
|
|
|
|
8,344,795 |
|
|
|
|
|
|
|
|
|
|
|
|
Pro
forma revenue |
|
$ |
17,735,342 |
|
$ |
19,490,717 |
|
$ |
(1,755,375 |
) |
-9.0 |
% |
|
|
Three Months Ended |
|
|
September 30, |
|
|
|
2020 |
|
|
2019 |
|
|
|
|
|
EBITDA: |
|
|
|
Net
(loss) income |
|
$ |
(4,978,652 |
) |
$ |
1,796,492 |
|
Income tax benefit |
|
|
- |
|
|
(4,085,000 |
) |
Depreciation and amortization |
|
|
1,123,380 |
|
|
460,296 |
|
Interest expense |
|
|
933,722 |
|
|
36,097 |
|
EBITDA |
|
|
(2,921,550 |
) |
|
(1,792,115 |
) |
|
|
|
|
Non-cash stock compensation |
|
|
766,133 |
|
|
345,084 |
|
M&A transaction fees |
|
|
- |
|
|
1,754,475 |
|
|
|
|
|
Adjusted EBITDA |
|
$ |
(2,155,417 |
) |
$ |
307,444 |
|
Misonix (NASDAQ:MSON)
Historical Stock Chart
From Mar 2024 to Apr 2024
Misonix (NASDAQ:MSON)
Historical Stock Chart
From Apr 2023 to Apr 2024