BOCA RATON, Fla., Nov. 1, 2018 /PRNewswire/ -- Sensus
Healthcare, Inc. (Nasdaq: SRTS), a medical device company
specializing in the non-invasive treatment of non-melanoma skin
cancers and keloids with superficial radiation therapy (SRT),
announces financial results for the three and nine months ended
September 30, 2018.
Highlights from the third quarter of 2018 and recent weeks
include:
- Continued double-digit growth with revenues of $6.3 million, up 32% over the prior-year
period
- Narrowed net loss to $(0.5)
million, or $(0.03) per share,
from $(1.0) million, or $(0.07) per share a year ago
- Adjusted EBITDA, a non-GAAP financial measure, improved to
$(0.1) million from $(0.8) million
- Shipped 18 systems, including 15 feature-rich, premium-priced
SRT-100 Vision™ systems
- Launched the SRT-100+ system following clearance by the U.S.
Food and Drug Administration (FDA) in August
- Shipped SRT-100 Vision™ to third hospital customer in
Israel
- Raised net proceeds of $15.9
million in an underwritten public offering of common
stock
Management Commentary
"Our strong and consistent execution of our business plan
continued during the third quarter, with revenues increasing 32%
year-over-year, and the achievement of double-digit revenue growth
quarter after quarter for three years," said Joe Sardano, Chairman and Chief Executive
Officer of Sensus Healthcare. "We were particularly pleased
with the traction from our oncology sales organization during the
quarter, which we have been building up during the past year. In
addition, a key corporate customer has proven to be reliable and
lucrative for us, with a program to provide turnkey solutions to
physicians.
"During the third quarter we launched the SRT-100+, a
next-generation SRT system that adds several innovative features to
our existing SRT-100 product, including remote diagnostics and
patient medical records integration, as well as core system
enhancements. With this system, we have expanded the energy
range and included Grenz rays for the potential treatment of
psoriasis. Research studies in psoriasis are ongoing, and the
results are expected to form the basis for marketing to physicians.
We are very pleased with the reception this new product has been
receiving, and its launch further strengthens our leadership
position in dermatology innovation."
Mr. Sardano continued, "As previously disclosed, we have been
investing significantly in research and development, which we view
as essential to the long-term prosperity of Sensus. Much of
the investment has been directed to our new Intraoperative
Radiation Therapy (IORT) system for treating breast and other
cancers. We filed a 510(k) application with the FDA at the
end of 2017 and continue to expect clearance before the end of the
year. We have taken a number of steps to prepare for the
anticipated launch of this product early next year, including
manufacturing several beta models being tested in key oncology
centers and starting the expansion of our oncology sales
force. We expect our IORT system, which contains key
technological advances, and with an expected list price in excess
of $1 million, will play an important
role in the growth of Sensus in the coming years.
"Our new office in Tel Aviv is
up and running and we were very pleased to consummate the sale of
an SRT-100 Vision™ to Sheba Medical Center, which represents the
third sale of the product in Israel. Our Tel Aviv base is
also a cutting-edge research and development facility for our new
suite of lasers and offers a foothold for sales in Europe and Asia.
"We continue to work with key opinion leaders to ensure the use
of image-guided superficial radiation is receiving the attention it
deserves among healthcare professionals. In October, we highlighted
the SRT-100 Vision™ at the American Society of Therapeutic
Radiation Oncology (ASTRO) annual meeting and were very pleased
with the traffic at our booth.
"We are optimistic about the prospects for Sensus and we have
never been in a stronger position, both financially and
technologically. Our recent equity fundraise provides
important growth capital. Our research and development is
creating important advances, and we have funds available to expand
our sales organization in a careful and thoughtful way,
particularly in oncology as we await IORT clearance. We look
forward to continued achievements throughout the remainder of this
year, which should provide the base for an excellent 2019," Mr.
Sardano concluded.
Financial Results for the Three Months Ended September 30, 2018
Revenues for the third quarter of 2018 increased 32% to
$6.3 million, compared with
$4.8 million for the third quarter of
2017. The increase was primarily attributable to more units
being sold, including an increase in sales of the higher-priced
SRT-100 Vision™ product.
Gross profit for the third quarter of 2018 was $4.2 million, or 65.8% of revenues, compared with
$3.2 million, or 67.1% of revenues,
for the third quarter of 2017. The decrease in gross margin
percentage was mainly due to lower average selling prices.
Selling and marketing expense for the third quarter of 2018 was
$2.0 million, compared with
$1.8 million for the third quarter of
2017. The increase was primarily due to higher commission
expense directly related to the increase in sales.
General and administrative expense for the second quarter of
2018 was $0.9 million, compared with
$0.8 million for the third quarter of
2017. The increase was primarily due to higher professional
services.
Research and development expense for the third quarter of 2018
was $1.7 million, compared with
$1.5 million for the third quarter of
2017. The increase was due to the ongoing IORT project, along with
additional product development in the Company's new research
facility in Israel.
The net loss for the third quarter of 2018 was $(0.5) million, or $(0.03) per share, compared with a net loss of
$(1.0) million, or $(0.07) per share, for the third quarter of
2017.
Adjusted EBITDA for the third quarter of 2018 was $(0.1) million, compared with $(0.8) million for the third quarter of 2017.
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 cash equivalents were $17.1
million as of September 30,
2018. During the third quarter the Company raised
$15.9 million in net proceeds from an
underwritten public offering of common stock and repaid outstanding
borrowings on the revolving line of credit.
Financial Results for the Nine Months Ended September 30, 2018
Revenues for the nine months ended September 30, 2018 increased 30% to $18.3 million, compared with $14.1 million for the prior year's nine-month
period. Gross profit for the nine months ended September 30, 2018 was $12.0 million, or 65.7% of revenue, compared with
$9.5 million, or 67.2% of revenue,
for the prior year's nine-month period.
Selling and marketing expense was $6.1
million for the nine months ended September 30, 2018, compared with $6.2 million for the nine months ended
September 30, 2017. General and
administrative expense was $3.2
million year-to-date, compared with $2.8 million for the prior-year period. General
and administration expense for the nine months ended September 30, 2018 includes $0.4 million in stock-based compensation expense
related to stock grants during the first quarter of 2018.
Research and development expense for the nine months ended
September 30, 2018 was $4.8 million, compared with $3.8 million for the nine months ended
September 30, 2017.
The net loss for the nine months ended September 30, 2018 was $(2.1) million, or $(0.16) per share, compared with a net loss of
$(3.3) million, or $(0.25) per share, for the nine months ended
September 30, 2017.
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
September
30,
|
|
For the Nine
Months Ended
September
30,
|
|
|
|
|
2018
|
|
|
2017
|
|
2018
|
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Loss, as
reported
|
|
|
$
(458,108)
|
|
|
$
(965,687)
|
|
$
(2,124,672)
|
|
|
$
(3,301,930)
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
193,923
|
|
|
103,383
|
|
427,426
|
|
|
294,906
|
|
Stock
compensation expense
|
|
|
143,042
|
|
|
102,431
|
|
823,494
|
|
|
303,465
|
|
Interest,
net
|
|
|
34,750
|
|
|
259
|
|
88,065
|
|
|
(17,557)
|
|
Adjusted
EBITDA, non GAAP
|
|
|
$
(86,393)
|
|
|
$
(759,614)
|
|
$
(785,687)
|
|
|
$
(2,721,116)
|
|
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 2018 third 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 November 8, 2018
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: 10125607. 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 that is
committed to providing non-invasive and cost-effective treatment
for non-melanoma skin cancers and keloids. Sensus uses a
proprietary low-energy X-ray technology known as superficial
radiation therapy (SRT), which is a result of over a decade of
dedicated research and development. Sensus has successfully
incorporated SRT into its portfolio of treatment devices, the
SRT-100™, SRT-100+ and SRT-100 Vision™. To date, SRT technology has
been used to effectively and safely treat oncological and
non-oncological skin conditions in thousands of patients. Sensus
also offers Sensus Laser Systems, three next-generation devices
that showcase the latest in technology and function for the
aesthetic dermatology market.
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, as well as complying with the restrictions our
existing revolving credit facility imposes; our ability to expand,
manage and maintain our direct sales and marketing organizations;
our actual financial results may vary significantly from forecasts
and from period to period; our ability to successfully develop new
products, improve or enhance existing products or acquire
complementary products, technologies, services or businesses; 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; market risks regarding consolidation in the
healthcare industry; 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 reliance on third
party manufacturers and sole- or single-source suppliers; 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; off label use of our products; 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; limited
trading in our shares and the concentration of ownership of our
shares; cyberattacks and other data breaches and the adverse effect
on our reputation; new legislation, administrative rules, or
executive orders, including those that impact taxes and
international trade regulation; the provisions in our certificate
of incorporation, bylaws, or Delaware law that discourage takeovers or that
limit certain disputes to be brought exclusively in the
Delaware Court of Chancery;
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 the Company's 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
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
As of September
30,
|
|
|
As of December
31,
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
Current
Assets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
17,121,319
|
|
|
$
|
10,085,468
|
|
Accounts receivable,
net
|
|
|
10,658,661
|
|
|
|
4,958,255
|
|
Inventories
|
|
|
1,972,046
|
|
|
|
1,171,383
|
|
Investment in debt
securities
|
|
|
—
|
|
|
|
1,104,635
|
|
Prepaid and other
current assets
|
|
|
1,349,635
|
|
|
|
566,972
|
|
Total Current
Assets
|
|
|
31,101,661
|
|
|
|
17,886,713
|
|
Property and
Equipment, Net
|
|
|
959,332
|
|
|
|
394,078
|
|
Patent Rights,
Net
|
|
|
457,833
|
|
|
|
530,123
|
|
Deposits
|
|
|
24,272
|
|
|
|
24,272
|
|
Total
Assets
|
|
$
|
32,543,098
|
|
|
$
|
18,835,186
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
|
|
|
|
Accounts payable and
accrued expenses
|
|
$
|
4,889,874
|
|
|
$
|
4,067,894
|
|
Deferred revenue,
current portion
|
|
|
808,374
|
|
|
|
652,242
|
|
Product
warranties
|
|
|
111,915
|
|
|
|
146,722
|
|
Total Current
Liabilities
|
|
|
5,810,163
|
|
|
|
4,866,858
|
|
Revolving Credit
Facility
|
|
|
—
|
|
|
|
2,214,970
|
|
Deferred Revenue,
Net of Current Portion
|
|
|
533,960
|
|
|
|
73,083
|
|
Total
Liabilities
|
|
|
6,344,123
|
|
|
|
7,154,911
|
|
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; 16,118,915 issued and 16,085,461
outstanding at September 30, 2018; 13,522,168 issued and 13,488,714
outstanding at December 31, 2017
|
|
|
161,189
|
|
|
|
135,221
|
|
Additional paid-in
capital
|
|
|
39,799,045
|
|
|
|
23,181,641
|
|
Treasury stock,
33,454 shares at cost, at September 30, 2018 and December 31, 2017,
respectively
|
|
|
(133,816)
|
|
|
|
(133,816)
|
|
Accumulated
deficit
|
|
|
(13,627,443)
|
|
|
|
(11,502,771)
|
|
Total
Stockholders' Equity
|
|
|
26,198,975
|
|
|
|
11,680,275
|
|
Total Liabilities
and Stockholders' Equity
|
|
$
|
32,543,098
|
|
|
$
|
18,835,186
|
|
SENSUS HEALTHCARE,
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
|
For the Nine
Months Ended
|
|
|
|
September
30,
|
|
|
September
30,
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
6,333,996
|
|
|
$
|
4,795,616
|
|
|
$
|
18,346,193
|
|
|
$
|
14,118,130
|
|
Cost of
Sales
|
|
|
2,165,345
|
|
|
|
1,577,715
|
|
|
|
6,296,653
|
|
|
|
4,631,263
|
|
Gross
Profit
|
|
|
4,168,651
|
|
|
|
3,217,901
|
|
|
|
12,049,540
|
|
|
|
9,486,867
|
|
Operating
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and
marketing
|
|
|
1,971,539
|
|
|
|
1,844,199
|
|
|
|
6,146,759
|
|
|
|
6,211,124
|
|
General and
administrative
|
|
|
907,746
|
|
|
|
837,972
|
|
|
|
3,163,621
|
|
|
|
2,798,198
|
|
Research and
development
|
|
|
1,712,725
|
|
|
|
1,501,157
|
|
|
|
4,775,767
|
|
|
|
3,795,477
|
|
Total Operating
Expenses
|
|
|
4,592,010
|
|
|
|
4,183,328
|
|
|
|
14,086,147
|
|
|
|
12,804,799
|
|
Loss From
Operations
|
|
|
(423,359)
|
|
|
(965,427)
|
|
|
(2,036,607)
|
|
|
(3,317,932)
|
|
Other Income
(Expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
23,010
|
|
|
|
18,642
|
|
|
|
68,620
|
|
|
|
59,318
|
|
Interest
expense
|
|
|
(57,759)
|
|
|
(18,902)
|
|
|
(156,685)
|
|
|
(43,316)
|
|
Other Income
(Expense), net
|
|
|
(34,749)
|
|
|
(260)
|
|
|
(88,065)
|
|
|
16,002
|
|
Net
Loss
|
|
$
|
(458,108)
|
|
$
|
(965,687)
|
|
$
|
(2,124,672)
|
|
$
|
(3,301,930)
|
|
Net Loss per share
– basic and diluted
|
|
$
|
(0.03)
|
|
$
|
(0.07)
|
|
$
|
(0.16)
|
|
$
|
(0.25)
|
|
Weighted average
number of shares used in computing net loss per share – basic and
diluted
|
|
|
13,781,506
|
|
|
|
13,251,714
|
|
|
|
13,498,760
|
|
|
|
13,231,398
|
|
View original
content:http://www.prnewswire.com/news-releases/sensus-healthcare-third-quarter-financial-results-feature-revenue-growth-of-32-300742474.html
SOURCE Sensus Healthcare