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, 2022.
Highlights from the first quarter of 2022 and
recent weeks include the following (all comparisons are with the
first quarter of 2021, unless otherwise indicated):
- Revenues were $10.3 million, up
237%
- Net income was $16.1 million, or
$0.97 per diluted share, which included a gain on asset sale of
$12.8 million, or $0.77 per diluted share; this compares with a net
loss of $(1.1) million, or $(0.07) per share
- Exited the quarter with $32.8
million in cash and cash equivalents
- Adjusted EBITDA, a non-GAAP
financial measure, was $16.9 million, compared with $(0.8)
million
- Shipped 33 systems, most of which
were SRT-100 Vision™ systems, including one SRT-100™ system to
China and seven Transdermal Infusion Systems.
- Launched TransDermal Infusion
technology replacing needle injections
- Sold non-core asset for $15.0
million in cash
- Instituted a $3.0 million share
repurchase program
- Prepared for future growth with key
promotions, including Vice President & General Counsel Michael
J. Sardano named President & General Counsel
- Affirms expectations for 2022
second quarter and full year profitability
Management Commentary
“Revenues for the first quarter reflect a
sharpened focus on our core dermatology business, and we are
pleased with the revenue growth we continue to achieve,” said Joe
Sardano, chairman and chief executive officer of Sensus Healthcare.
“During the quarter we sold our non-core asset for $15.0 million in
cash and recorded a gain on asset sale of $12.8 million. This cash
will primarily be used to fund future growth of our dermatology
products and services. We launched TransDermal Infusion into the
U.S. market which has tremendous potential in eliminating the need
for needle injections allowing for more procedure to be less
painful for patients. Also, our board of directors has approved a
$3.0 million share repurchase program that we intend to deploy
thoughtfully and in the best interest of our stockholders.”
Mr. Sardano continued, “We established a fair
market value leasing program in January 2021, which continues to be
well received and supported the sales growth of SRT-100 Vision
systems. This product, with its premium functionality and
image-guided ultrasound, now accounts for the vast majority of
domestic SRT system sales. The upward revaluation of reimbursement
codes by the Centers for Medicare and Medicaid Services has made
the return on investment for our systems even more compelling. In
addition, with increased sales of Vision systems we are selling
significantly more service contracts. Approximately one-half of our
customers are now under Extended Warranty Service Agreements,
compared with just 25% a few years ago, providing Sensus with a
growing base of recurring revenues.
“The resumption of in-person trade shows has
been deeply gratifying. These events allow us to reconnect with
customers, showcase our products and build high-caliber sales
leads. We were delighted to highlight our TransDermal Infusion
System™ for non-invasive drug delivery for skin rejuvenation
treatments, pre-laser treatments and pre- and post-plastic surgery
at the Winter Clinical in Hawaii, and at the American Academy of
Dermatology conference in Boston. We are excited about the
potential for this system, in particular for the delivery of
finasteride, commonly known as Propecia, for hair growth. Dr.
Glynis Ablon, a key opinion leading dermatologist with the Ablon
Skin Institute and Research Center, and Associate Clinical
Professor at UCLA is studying the delivery of finasteride with our
TransDermal System. We believe her work will validate the system’s
excellent utility for this indication.”
Mr. Sardano concluded, “During the first quarter
we hired nine sales representatives, returning our sales
organization to pre-pandemic levels. We continue to be confident in
our sales and earnings trajectory as supported by a robust
organization, excellent products backed by rigorous research,
creative methods of financing and a committed management team.
Despite current geopolitical events, we continue to be highly
optimistic about our prospects.”
First Quarter Financial
Results
Revenues for the first quarter of 2022 were
$10.3 million, compared with $3.1 million for the first quarter of
2021. The 237% increase was primarily driven by a higher number of
units sold, increased service revenue, and the impact of COVID-19
on first quarter of 2021 results.
Cost of sales for the first quarter of 2022 was
$3.2 million, compared with $1.5 million for the prior-year
quarter. The increase was due to higher sales in the 2022
period.
Gross profit for the first quarter of 2022 was
$7.1 million, or 69.1% of revenues, compared with $1.6 million, or
51.6% of revenues, for the first quarter of 2021. The increases
were primarily driven by the higher number of units sold in 2022,
service revenue on installed units, and the impact of COVID-19 on
first quarter 2021 results.
Selling and marketing expense for the first
quarter of 2022 was $1.2 million, compared with $1.1 million for
the first quarter of 2021. The increase was primarily attributable
to higher tradeshow expenses and commissions.
General and administrative expense for the first
quarter of 2022 was $1.3 million, compared with $1.0 million for
the first quarter of 2021. The increase was primarily due to higher
professional fees and compensation expense.
Research and development expense for the first
quarter of 2022 was $0.7 million, unchanged from the prior-year
first quarter.
Other income was $12.8 million for the first
quarter of 2022, which is related to the gain on the sale of
assets.
Provision for income taxes was $0.6 million for
the first quarter of 2022, compared with no income tax provision
for the prior-year first quarter.
Net income for the first quarter of 2022 was
$16.1 million, or $0.97 per diluted share, compared with a net loss
of $(1.1) million, or $(0.07) per share, for the first quarter of
2021.
Adjusted EBITDA for the first quarter of 2022
was $16.9 million, compared with $(0.8) million for the first
quarter of 2021. 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 specific reasons these non-GAAP financial measures are
provided.
Cash and investments were $32.8 million as of
March 31, 2022, compared with $14.5 million as of December 31,
2021. The company had no outstanding borrowings under its revolving
line of credit as of March 31, 2022 or December 31, 2021.
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.
SENSUS HEALTHCARE,
INC.GAAP TO NON-GAAP
RECONCILIATION(unaudited)
|
|
|
|
|
|
|
|
|
For the
Three Months Ended |
|
|
|
March 31, |
(in thousands) |
|
|
|
2022 |
|
|
|
|
2021 |
|
|
|
|
|
|
|
|
Net
income (loss), as reported |
|
|
$ |
16,062 |
|
|
|
$ |
(1,115 |
) |
Add: |
|
|
|
|
|
|
Depreciation
and amortization |
|
|
|
92 |
|
|
|
|
208 |
|
Stock
compensation expense |
|
|
|
57 |
|
|
|
|
60 |
|
Income
Tax |
|
|
|
648 |
|
|
|
|
- |
|
Interest,
net |
|
|
|
(1 |
) |
|
|
|
- |
|
Adjusted EBITDA, non GAAP |
|
|
$ |
16,858 |
|
|
|
$ |
(847 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 first quarter of 2022, provide a business update and answer
questions. To access the conference call, please dial 888-390-3967
(U.S. and Canada) or 862-298-0702 (International). Please direct
the operator to be connected to the Sensus Healthcare conference
call. The call will be webcast live and can be accessed at the
following link, which also may be found in the Investor Relations
section of the Company’s website at www.sensushealthcare.com.
Following the conclusion of the conference call,
a replay will be available by dialing 888-539-4649 (U.S. and Canada
Toll Free) or 754-333-7735 (International). At the system prompt,
dial the replay code 157081 followed by the # sign. Playback will
begin automatically. 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.
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. Sensus 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, including
aesthetic lasers and its needleless TransDermal Infusion System™,
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 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. 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: the continuation and severity
of the COVID-19 pandemic, including its impact on sales and
marketing; our ability to achieve profitability; 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; 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 our international operations; 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.; 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.
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.
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 Golodetz212-838-3777kgolodetz@lhai.com
(Tables to follow)
|
SENSUS
HEALTHCARE, INC. |
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS |
|
|
|
|
|
|
|
|
|
For the
Three Months Ended |
(in
thousands, except share and per share data) |
March 31, |
|
|
2022 |
|
|
|
2021 |
|
|
(unaudited) |
|
(unaudited) |
Revenues |
$ |
10,338 |
|
|
$ |
3,070 |
|
Cost
of sales |
|
3,189 |
|
|
|
1,484 |
|
Gross profit |
|
7,149 |
|
|
|
1,586 |
|
Operating expenses: |
|
|
|
Selling and
marketing |
|
1,218 |
|
|
|
1,068 |
|
General and
administrative |
|
1,273 |
|
|
|
972 |
|
Research and
development |
|
728 |
|
|
|
661 |
|
Total operating expenses |
|
3,219 |
|
|
|
2,701 |
|
Income (loss) from operations |
|
3,930 |
|
|
|
(1,115 |
) |
Other income (expense): |
|
|
|
Gain on
asset sale |
|
12,779 |
|
|
|
- |
|
Interest
income |
|
1 |
|
|
|
- |
|
Other income (expense), net |
|
12,780 |
|
|
|
- |
|
Income (loss) before income tax |
|
16,710 |
|
|
|
(1,115 |
) |
Provision
for income tax |
|
648 |
|
|
|
- |
|
Net
income (loss) |
|
16,062 |
|
|
|
(1,115 |
) |
Net
income (loss) per share – basic |
$ |
0.97 |
|
|
$ |
(0.07 |
) |
– diluted |
$ |
0.97 |
|
|
$ |
(0.07 |
) |
Weighted average number of shares used in computing net
income (loss) per share – basic |
|
16,497,801 |
|
|
|
16,461,311 |
|
– diluted |
|
16,641,654 |
|
|
|
16,461,311 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SENSUS
HEALTHCARE, INC. |
CONDENSED
CONSOLIDATED BALANCE SHEETS |
|
|
|
|
|
|
|
As ofMarch
31, |
|
As
ofDecember 31, |
(in
thousands, except shares and per share data) |
2022 |
|
2021 |
|
(unaudited) |
|
|
|
Assets |
|
|
|
|
|
Current assets |
|
|
|
|
|
Cash and cash equivalents |
$ |
32,830 |
|
|
$ |
14,519 |
|
Accounts
receivable, net |
|
10,540 |
|
|
|
12,130 |
|
Inventories |
|
2,326 |
|
|
|
1,759 |
|
Prepaid and
other current assets |
|
2,766 |
|
|
|
2,837 |
|
Total current assets |
|
48,462 |
|
|
|
31,245 |
|
Property and equipment, net |
|
426 |
|
|
|
605 |
|
Intangibles, net |
|
122 |
|
|
|
146 |
|
Deposits |
|
37 |
|
|
|
75 |
|
Deferred tax asset |
|
3,744 |
|
|
|
- |
|
Operating lease right-of-use assets, net |
|
1,138 |
|
|
|
169 |
|
Total assets |
$ |
53,929 |
|
|
$ |
32,240 |
|
Liabilities and stockholders’ equity |
|
|
|
|
|
Current liabilities |
|
|
|
|
|
Accounts
payable and accrued expenses |
$ |
4,349 |
|
|
$ |
4,058 |
|
Income tax
payable |
|
4,393 |
|
|
|
- |
|
Deferred
revenue, current portion |
|
939 |
|
|
|
1,172 |
|
Operating
lease liabilities, current portion |
|
185 |
|
|
|
174 |
|
Product
warranties |
|
328 |
|
|
|
508 |
|
Loan
payable |
|
- |
|
|
|
51 |
|
Total current Liabilities |
|
10,194 |
|
|
|
5,963 |
|
Operating lease liabilities, net of current
portion |
|
973 |
|
|
|
- |
|
Deferred revenue, net of current portion |
|
236 |
|
|
|
262 |
|
Total liabilities |
|
11,403 |
|
|
|
6,225 |
|
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; 16,756,811 issued
and 16,677,548 outstanding at March 31, 2022; 16,694,311 and
16,617,274 issued and outstanding at December 31, 2021 |
|
168 |
|
|
|
167 |
|
Additional
paid-in capital |
|
44,586 |
|
|
|
44,115 |
|
Treasury
stock, 79,263 and 77,037 shares at cost, at March 31, 2022 and
December 31, 2021, respectively |
|
(348 |
) |
|
|
(325 |
) |
Accumulated
deficit |
|
(1,880 |
) |
|
|
(17,942 |
) |
Total stockholders’ equity |
|
42,526 |
|
|
|
26,015 |
|
Total liabilities and stockholders’ equity |
$ |
53,929 |
|
|
$ |
32,240 |
|
|
|
|
|
|
|
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