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 and 12 months ended December 31, 2020.
Highlights from the fourth quarter of 2020 and
recent weeks include the following (all comparisons are with the
fourth quarter of 2019, unless otherwise indicated):
- Shipped 18 systems during the
quarter, including 12 domestic direct sales and three systems to
China
- Shipped a system to Holy Name
Medical Center in Teaneck, New Jersey to deliver superficial
radiation therapy (SRT) to the lungs of COVID-19 patients with
pneumonia
- The Centers for Medicare and
Medicaid Services (CMS) significantly increased reimbursement for
the main SRT code along with meaningful increases in Evaluation
& Management (E/M) codes
- The Journal of Clinical and
Aesthetic Dermatology published a retrospective study showing
keloidectomy followed by SRT had an approximate 10% recurrence
rate, compared with an expected recurrence rate of more than 80%
following surgical excision alone
- Maintained customer support during
the COVID-19 pandemic via frequent direct outreach and a series of
online programs highlighting the benefits of SRT to treat
non-melanoma skin cancer
- Launched new FDA-cleared aesthetic
lasers via Sensus Laser Aesthetic Services (SLAS), the company’s
mobile aesthetic laser business
- Continued generating recurring
revenue via the Sentinel™ IT Solutions package, now included in
just-launched aesthetic lasers as well as SRT-100 Vision™
systems
- Revenues were $5.1 million,
compared with $8.5 million a year ago and up from $1.6 million in
the third quarter of 2020
- Net income was $1.0 million, or
$0.06 per diluted share, unchanged from the prior year
- Adjusted EBITDA, a non-GAAP
financial measure, was $1.3 million for both fourth quarter of 2020
and 2019
Management Commentary
“Revenues improved significantly during the
fourth quarter compared with the first three quarters of the year.
Reflecting our keen attention to operating expenses. We generated
net income of $1.0 million for the quarter, a positive finish to a
very challenging year,” said Joe Sardano, chairman and chief
executive officer of Sensus Healthcare. “While our business
continues to be impacted by the pandemic, the cautious reopening of
regional economies across the U.S. allowed Sensus to resume sales.
We were delighted to ship 18 SRT systems during the quarter,
including 12 domestic direct sales and three to China. We are
cautiously optimistic that markets will recover during the coming
year, and plan to step up select hiring in our sales
organization.
“During the fourth quarter, two clinical studies
on the use of SRT for the prevention of keloid recurrence were
published. One showed keloidectomy followed by SRT had an
approximate 10% recurrence rate, compared with an expected
recurrence rate of more than 80% following surgical excision alone.
The other showed that a single low dose of SRT following excision
of 14 keloids had an approximate 6.25% recurrence rate at six
months, and for the 10 patients available for follow-up at 24
months none of the keloids had recurred.
“We were delighted that CMS revalued our main
code following years of lobbying, issuing a new, final
reimbursement amount for CPT® code 77401 of approximately $44 per
treatment, effective January 1, 2021. In addition, E/M codes
that CMS directs users of SRT to utilize have increased by 30%.
Other codes were revalued upward for the ultrasound capability in
our SRT-100 Vision systems. Zoom Meetings to present these new
coding values have been scheduled, hosted by Dr. Mark Nestor,
President of the American Cutaneous Oncology Society (ACOS). We are
pleased our physician customers will now be provided with a more
fair and equitable reimbursement for a procedure with favorable
outcomes without the potential complications. While in the midst of
peak Covid – 19 conditions, SRT was proven a valuable tool for our
physicians and their patients and should become part of “best
practices” procedure in the new normal post Covid-19 as well. We
believe new reimbursement amounts will catalyze additional
physician interest in adding SRT to their treatment
armamentarium.
“Although COVID-19 impacted sales, it also
presented an opportunity for Sensus to offer a treatment for
pneumonia in COVID-19 patients by delivering superficial radiation
to the lung. We shipped an SRT system to Holy Name Hospital in
Teaneck, New Jersey, a hospital on the forefront of COVID-19
therapy. We expect to receive data on the efficacy of our system
for this use during the next weeks and note that preliminary data
suggest a positive therapeutic effect. Our SRT systems are
well-suited for COVID-19 as they are portable and allow for bedside
treatment in the intensive care unit, rather than transporting
patients to a cancer treatment center for radiation therapy and
possibly exposing vulnerable patients to the virus.”
Mr. Sardano added, “We have 510(k) clearance for
four aesthetic lasers equipped with our Sentinel™ IT Solutions
software to be introduced by the end of the first quarter 2021.
Sentinel provides asset management and HIPAA-compliant patient data
and storage capability, and also contains the software necessary to
support shared service models including direct patient billing.
We have integrated these lasers into SLAS, our mobile
aesthetic laser division that we expect will become a meaningful
source of revenue growth, in particular as we roll out two
disruptive rental strategies during the first quarter of 2021.
These strategies are designed to generate consistent revenue for
Sensus, while providing physician customer with access to multiple
lasers. We are also looking at expanding our mobile aesthetic laser
business beyond Florida via strategic transactions.
“Business in China picked up during the fourth
quarter with the sale of three systems. Plus, as of January 1, 2021
we have a new distribution partner for China and Hong Kong. Our new
VP of international sales has developed an extensive network of
prospects in China, and we are optimistic that China represents an
excellent growth opportunity. In addition, we are finalizing a new
distributor in Taiwan and are preparing Sculptura™ for the
regulatory process in China. Sculptura is our Anisotropic Radiation
Therapy with Beam Sculpting™ capabilities and Robotic Respiratory
Tracking for up to 17 different indications.
“I am so very proud of our staff and the way we
kept our focus on customers and patients throughout the pandemic.
We believe the worst is behind us and that we are well positioned
to resume the growth trajectory that was interrupted almost exactly
one year ago,” concluded Mr. Sardano.
Fourth Quarter Financial
Results
Revenues for the fourth quarter of 2020 were
$5.1 million, compared with $8.5 million for the fourth quarter of
2019. The decrease was due to lower number of units sold as a
result of COVID-19.
Gross profit for the fourth quarter of 2020 was
$3.2 million, or 63.4% of revenues, compared with $5.5 million, or
64.1 % of revenues, for the fourth quarter of 2019.
Selling and marketing expense for the fourth
quarter of 2020 was $1.3 million, compared with $2.5 million for
the fourth quarter of 2019. The decrease was primarily due to a
reduction in tradeshow expense and sales commissions.
General and administrative expense for the
fourth quarter of 2020 was $0.8 million, compared with $1.1 million
for the fourth quarter of 2019. The decrease primarily reflects the
impact of bad debt expense in 2019.
Research and development expense for the fourth
quarter of 2020 was $0.8 million, compared with $0.9 million for
the fourth quarter of 2019. The decrease was mainly due to lower
expenses related to Sculptura development, as commercial production
started.
Net income for both the fourth quarter of 2020
and 2019 was $1.0 million, or $0.06 per diluted share.
Adjusted EBITDA for both the fourth quarter of
2020 and 2019 were $1.3 million. 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 $14.9 million as of
December 31, 2020, compared with $15.5 million as of December 31,
2019. The company had a small long-term debt and no outstanding
borrowings under its revolving line of credit both during 2020 and
as of December 31, 2020.
Full Year 2020 Financial
Results
Total revenues for 2020 were $9.6 million,
compared with $27.3 million for 2019. Gross profit for 2020 was
$5.2 million, or 54.8% of revenue, compared with $17.6 million, or
64.4% of revenue, for 2019. The decrease in revenue, gross profit
and gross margin is primarily due to the lower number of units
sold, reflecting the impact of COVID-19.
Selling and marketing expense decreased to $5.3
million for 2020 from $9.1 million in the prior year, primarily due
to cancellations of trade shows due to COVID-19, a decrease in
commission expense due to lower sales, and reduced spending on
marketing activities. General and administrative expense was
unchanged at $4.0 million for both years. Research and development
expense was $4.2 million for 2020, compared with $6.4 million for
2019. The decrease was primarily due to lower spending as the
Sculptura project entered commercial production during 2020.
The net loss for 2020 was $(6.8) million, or
$(0.42) per share, compared with a net loss of $(1.7) million, or
$(0.10) per share, for 2019.
Adjusted EBITDA for 2020 was $(5.8) million,
compared with $(0.8) million for 2019.
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 |
|
|
|
|
|
For the Three Months Ended December 31, |
|
For the Years Ended December 31, |
|
|
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss, as reported |
|
$ |
1,018,413 |
|
|
$ |
1,039,102 |
|
|
$ |
(6,835,526 |
) |
|
$ |
(1,700,003 |
) |
|
Add: |
|
|
|
|
|
|
|
|
|
Depreciation and
amortization |
|
|
238,077 |
|
|
|
130,591 |
|
|
|
721,865 |
|
|
|
545,717 |
|
|
Stock-compensation expense |
|
|
62,564 |
|
|
|
158,145 |
|
|
|
386,483 |
|
|
|
620,925 |
|
|
Interest, net |
|
|
(3,273 |
) |
|
|
(54,711 |
) |
|
|
(52,555 |
) |
|
|
(268,290 |
) |
|
Adjusted EBITDA, non-GAAP |
|
$ |
1,315,781 |
|
|
$ |
1,273,127 |
|
|
$ |
(5,779,733 |
) |
|
$ |
(801,651 |
) |
|
|
|
|
|
|
|
|
|
|
|
Conference Call and Webcast
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 2020 fourth
quarter, provide a business update and answer questions. To access
the conference call, the dial-in numbers are 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 here or in the Investors
section of the Company’s website here.
Following the conclusion of the conference call,
a replay will be available and can be accessed by dialing
888-539-4649 (U.S. and Canada) or 754-333-7735 (International). At
the prompt, enter replay code 155222 followed by the # sign. An
archived webcast of the call will also be available in the
Investors 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. The Sculptura™
modulated robotic brachytherapy radiation oncology system provides
targeted directional anisotropic radiation therapy (ART) 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, fast and efficiently. 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 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 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
"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 Golodetz212-838-3777kgolodetz@lhai.com
(Tables to follow)
SENSUS
HEALTHCARE, INC. |
|
CONDENSED
CONSOLIDATED BALANCE SHEETS |
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
14,906,976 |
|
|
|
$ |
8,100,288 |
|
|
Investment
in debt securities |
|
|
- |
|
|
|
|
7,389,407 |
|
|
Accounts
receivable, net |
|
|
3,775,937 |
|
|
|
|
14,011,180 |
|
|
Inventories |
|
|
4,427,109 |
|
|
|
|
2,997,120 |
|
|
Prepaid and
other current assets |
|
|
2,061,039 |
|
|
|
|
1,505,175 |
|
|
Total current assets |
|
|
25,171,061 |
|
|
|
|
34,003,170 |
|
|
Property and equipment, net |
|
|
1,355,831 |
|
|
|
|
1,082,428 |
|
|
Intangibles, net |
|
|
337,882 |
|
|
|
|
337,351 |
|
|
Deposits |
|
|
69,393 |
|
|
|
|
101,561 |
|
|
Operating lease right-of-use assets, net |
|
|
1,075,728 |
|
|
|
|
1,400,037 |
|
|
Total assets |
|
$ |
28,009,895 |
|
|
|
$ |
36,924,547 |
|
|
Liabilities and stockholders' equity |
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
Accounts
payable and accrued expenses |
|
$ |
2,873,720 |
|
|
|
$ |
4,779,435 |
|
|
Deferred
revenue, current portion |
|
|
1,491,916 |
|
|
|
|
1,191,898 |
|
|
Operating
lease liabilities, current portion |
|
|
303,405 |
|
|
|
|
309,524 |
|
|
Product
warranties |
|
|
187,051 |
|
|
|
|
187,454 |
|
|
Total current liabilities |
|
|
4,856,092 |
|
|
|
|
6,468,311 |
|
|
Loan
payable |
|
|
266,777 |
|
|
|
|
- |
|
|
Operating lease liabilities, net of current
portion |
|
|
812,124 |
|
|
|
|
1,115,529 |
|
|
Deferred revenue, net of current portion |
|
|
579,292 |
|
|
|
|
1,339,285 |
|
|
Total liabilities |
|
|
6,514,285 |
|
|
|
|
8,923,125 |
|
|
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; 16,564,311 issued
and 16,491,103 outstanding at December 31,
2020; 16,540,478 and 16,485,780 issued and outstanding at
December 31, 2019. |
|
|
165,643 |
|
|
|
|
165,404 |
|
|
Additional
paid-in capital |
|
|
43,700,929 |
|
|
|
|
43,314,123 |
|
|
Treasury
stock, 73,208 and 54,698 shares at cost, at September 30, 2020 and
December 31, 2019, respectively. |
|
|
(309,901 |
) |
|
|
|
(252,570 |
) |
|
Accumulated
deficit |
|
|
(22,061,061 |
) |
|
|
|
(15,225,535 |
) |
|
Total stockholders' equity |
|
|
21,495,610 |
|
|
|
|
28,001,422 |
|
|
Total liabilities and stockholders' equity |
|
$ |
28,009,895 |
|
|
|
$ |
36,924,547 |
|
|
|
|
|
|
|
|
|
|
|
SENSUS
HEALTHCARE, INC. |
|
CONDENSED
STATEMENTS OF OPERATIONS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended December 31, |
|
For the Years Ended December 31, |
|
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
$ |
5,094,374 |
|
$ |
8,509,409 |
|
$ |
9,576,932 |
|
|
$ |
27,263,248 |
|
|
Cost of sales |
|
1,865,815 |
|
|
3,051,269 |
|
|
4,327,839 |
|
|
|
9,706,104 |
|
|
Gross profit |
|
3,228,559 |
|
|
5,458,140 |
|
|
5,249,093 |
|
|
|
17,557,144 |
|
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and
marketing |
|
1,349,443 |
|
|
2,453,383 |
|
|
5,336,427 |
|
|
|
9,103,136 |
|
|
General and
administrative |
|
779,573 |
|
|
1,070,695 |
|
|
3,989,110 |
|
|
|
4,004,682 |
|
|
Research and development |
|
842,185 |
|
|
949,671 |
|
|
4,157,430 |
|
|
|
6,417,619 |
|
|
Total operating expenses |
|
2,971,201 |
|
|
4,473,749 |
|
|
13,482,967 |
|
|
|
19,525,437 |
|
|
Income (loss) from operations |
|
257,358 |
|
|
984,391 |
|
|
(8,233,874 |
) |
|
|
(1,968,293 |
) |
|
Other income (expense) |
|
|
|
|
|
|
|
|
|
|
|
|
Gain on
acquisition |
|
- |
|
|
- |
|
|
588,011 |
|
|
|
- |
|
|
Gain on
extinguishment of the PPP loan |
|
757,782 |
|
|
- |
|
|
757,782 |
|
|
|
- |
|
|
Interest,
net |
|
3,273 |
|
|
54,711 |
|
|
52,555 |
|
|
|
268,290 |
|
|
Other income (expense), net |
|
761,055 |
|
|
54,711 |
|
|
1,398,348 |
|
|
|
268,290 |
|
|
Net income (loss) |
|
1,018,413 |
|
|
1,039,102 |
|
|
(6,835,526 |
) |
|
|
(1,700,003 |
) |
|
Net
income (loss) per share - Basic |
$ |
0.06 |
|
$ |
0.06 |
|
$ |
(0.42 |
) |
|
$ |
(0.10 |
) |
|
Diluted |
$ |
0.06 |
|
$ |
0.06 |
|
$ |
(0.42 |
) |
|
$ |
(0.10 |
) |
|
Weighted average number of shares used in computing
net loss per share - Basic |
|
16,453,603 |
|
|
16,405,281 |
|
|
16,434,079 |
|
|
|
16,323,748 |
|
|
Diluted |
|
16,434,079 |
|
|
16,428,207 |
|
|
16,434,079 |
|
|
|
16,323,748 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sensus Healthcare (NASDAQ:SRTS)
Historical Stock Chart
From Apr 2024 to May 2024
Sensus Healthcare (NASDAQ:SRTS)
Historical Stock Chart
From May 2023 to May 2024