MINNEAPOLIS, July 24, 2014 /PRNewswire/ -- Uroplasty,
Inc. (NASDAQ: UPI), a medical device company that develops,
manufactures and markets innovative proprietary products to treat
voiding dysfunctions, today reported financial results for the
fiscal 2015 first quarter ended June 30, 2014.
Global revenue for the Company's Urgent® PC
Neuromodulation System grew 19% to $4.1
million, as compared to $3.4
million in the first quarter of the prior year. Total
revenue for the fiscal first quarter of 2015 was $6.4 million, up 9% from the same quarter in the
prior year.
"First quarter results met our overall expectations, and we are
reaffirming our full-year guidance today for Fiscal 2015," said
Rob Kill, President and Chief
Executive Officer of Uroplasty. "Global Urgent PC revenue
exceeded our expectations, with stronger than expected growth in
our international business. Macroplastique revenue was down
slightly in the quarter, yet we continue to expect that for the
full year, revenue from this product line will be similar to the
past fiscal year. Continued improvement in sales force
productivity, the expansion of our clinical support team to twelve
individuals from the current six and our development of additional
distribution channels are expected to drive Urgent PC sales growth
as we look forward. At the same time, we continue to invest
in our fecal incontinence clinical development program and are
examining strategies to provide our sales organization with
additional products that meet the unmet needs of our customer
base," continued Mr. Kill.
The Company generated a gross margin of 87.6% in the recent
fiscal first quarter compared with 87.2% in the same quarter a year
ago. Operating expenses for the period totaled $7.8 million compared to $6.7 million in the same quarter last year.
Selling, general and administrative costs increased
$0.7 million primarily due to full
staffing of the sales team in the current quarter as well as the
expense related to the six clinical specialists the Company added
throughout the prior fiscal year. R&D costs increased
$0.4 million due to higher clinical
study activity as well as certain one-time costs related to
management changes in the current quarter.
The operating loss of $2.2 million in the fiscal first
quarter compares with a $1.6 million operating loss in the
same quarter last year. Excluding non-cash charges for
share-based compensation and depreciation and amortization expense,
the non-GAAP operating loss was $1.8 million in the first
quarter of fiscal 2015, compared with a $1.5 million non-GAAP
operating loss in the year ago period. At June 30, 2014, cash, cash equivalents and cash
investments totaled $10.6
million.
For the full-year Fiscal 2015 the Company continues to expect
revenue growth in the range of nine to twelve percent,
approximately fifteen percent growth in global Urgent PC sales, and
slightly higher gross margins on a year-over-year basis.
Conference Call
Uroplasty will host a conference
call and webcast today at 4:30 p.m. Eastern
Time (3:30 p.m. Central Time)
to discuss these results. Rob Kill,
President and Chief Executive Officer, and Brett Reynolds, Chief Financial Officer, will
host the call. Individuals wishing to participate in the conference
call should dial 888-505-4375. No passcode is necessary. To
access a live webcast of the call, go to Uroplasty's website at
www.uroplasty.com and click on the Investor Relations section.
An audio replay will be available for 30 days following the call
at 888-203-1112 with the passcode 7876225. An archived
webcast will also be available at investor.uroplasty.com.
About Uroplasty, Inc.
Uroplasty, Inc., headquartered
in Minnetonka, Minnesota, with
wholly-owned subsidiaries in The
Netherlands and the United
Kingdom, is a global medical device company that develops,
manufactures and markets innovative proprietary products for the
treatment of voiding dysfunctions. Our focus is the continued
commercialization of our Urgent® PC Neuromodulation System, which
we believe is the only commercially available, FDA-cleared system
that delivers percutaneous tibial nerve stimulation (PTNS) for the
office-based treatment of overactive bladder (OAB). OAB is a
chronic condition that affects approximately 42 million U.S.
adults. The symptoms include urinary urgency, frequency and
urge incontinence. We also offer Macroplastique®, an
injectable urethral bulking agent for the treatment of adult female
stress urinary incontinence primarily due to intrinsic sphincter
deficiency. For more information on the Company and its products,
please visit Uroplasty, Inc. at www.uroplasty.com.
Forward-Looking Information
Statements contained in
this release that relate to future events are forward-looking
statements under the Private Securities Litigation Reform Act of
1995. Forward-looking statements are based on current expectations
of future events and often can be identified by words such as
"continues," "expects," "intends," "should," "will," "may,"
"believes," "could," "hopes," "objective," "looking ahead,"
"future," other words of similar meaning or the use of future
dates. Uncertainties and risks may cause our actual results to be
materially different than those expressed in or implied by our
forward-looking statements. Such uncertainties and risks include,
among others, that we cannot be certain that we will ever achieve
sustained profitability, that the rate of reimbursement for PTNS
treatments will be adequate to justify the cost of our product,
that other Medicare carriers or private payers will provide
coverage for this treatment or that existing carriers and payers
will not change their coverage decisions, and that the rate of
adoption of our products by new customers will continue. More
detailed information on these and other factors that could affect
our actual results are described in our filings with the Securities
and Exchange Commission, including our most recent annual report on
Form 10-K and subsequent quarterly reports on Form 10-Q. We
undertake no obligation to update our forward-looking
statements.
For Further
Information:
Uroplasty,
Inc.
Brett Reynolds, SVP
and CFO
952-426-6152
EVC Group
Doug Sherk
(Investors)
415-652-9100
Janine McCargo
(Media)
646-688-0425
|
UROPLASTY, INC. AND
SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
|
|
Three Months
Ended
June
30,
|
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
$6,384,629
|
|
$5,840,841
|
|
|
|
|
Cost of goods
sold
|
791,311
|
|
748,047
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
5,593,318
|
|
5,092,794
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
General and
administrative
|
1,577,368
|
|
1,580,763
|
|
|
|
|
Research and
development
|
909,444
|
|
479,660
|
|
|
|
|
Selling and
marketing
|
5,272,621
|
|
4,627,409
|
|
|
|
|
Amortization
|
8,326
|
|
6,648
|
|
|
|
|
|
7,767,759
|
|
6,694,480
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
loss
|
(2,174,441)
|
|
(1,601,686)
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
Interest
income
|
3,012
|
|
9,264
|
|
|
|
|
Foreign currency
exchange gain (loss)
|
911
|
|
(2,695)
|
|
|
|
|
|
3,923
|
|
6,569
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before income
taxes
|
(2,170,518)
|
|
(1,595,117)
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
19,814
|
|
14,175
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
$(2,190,332)
|
|
$(1,609,292)
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net
loss per common share
|
$(0.10)
|
|
$(0.08)
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
Basic and
diluted
|
21,675,524
|
|
20,784,900
|
|
|
|
|
|
|
|
|
|
|
|
|
UROPLASTY, INC. AND
SUBSIDIARIES
CONDENSED
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
|
|
June 30,
2014
|
|
March 31,
2014
|
|
|
|
|
|
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash equivalents
|
$10,221,690
|
|
$8,681,609
|
|
Short-term investments
|
400,000
|
|
3,451,086
|
|
Accounts receivable, net
|
2,614,655
|
|
2,875,275
|
|
Inventories
|
609,877
|
|
517,217
|
|
Other
|
536,830
|
|
507,299
|
|
Total current
assets
|
14,383,052
|
|
16,032,486
|
|
|
|
|
|
|
Property, plant,
and equipment, net
|
980,412
|
|
997,609
|
|
Intangible
assets, net
|
111,654
|
|
119,980
|
|
Prepaid pension
assets
|
-
|
|
855
|
|
Deferred tax
assets
|
146,609
|
|
150,116
|
|
Total
assets
|
$15,621,727
|
|
$17,301,046
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts payable
|
$954,832
|
|
$904,879
|
Current portion – deferred rent
|
-
|
|
2,917
|
Income tax payable
|
24,429
|
|
21,922
|
Accrued liabilities:
|
|
|
|
Compensation
|
2,094,907
|
|
1,999,966
|
Other
|
423,428
|
|
479,373
|
|
|
|
|
Total current
liabilities
|
3,497,596
|
|
3,409,057
|
|
|
|
|
Deferred rent –
less current portion
|
25,832
|
|
171
|
Accrued pension
liability
|
715,807
|
|
678,118
|
|
|
|
|
Total
liabilities
|
4,239,235
|
|
4,087,346
|
|
|
|
|
Total
shareholders' equity
|
11,382,492
|
|
13,213,700
|
|
|
|
|
Total
liabilities and shareholders' equity
|
$15,621,727
|
|
$17,301,046
|
UROPLASTY, INC. AND
SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
|
|
Three Months
Ended
|
|
June
30,
|
|
2014
|
|
2013
|
Cash flows from
operating activities:
|
|
|
|
Net loss
|
$(2,190,332)
|
|
$(1,609,292)
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
Depreciation and
amortization
|
72,584
|
|
87,013
|
Loss (gain) on
disposal of equipment
|
1,249
|
|
(5,881)
|
Amortization of
premium on marketable securities
|
343
|
|
3,342
|
Share-based
compensation expense
|
323,304
|
|
16,044
|
Deferred income tax
expense
|
2,205
|
|
2,178
|
Deferred
rent
|
22,744
|
|
(9,263)
|
Changes in operating
assets and liabilities:
|
|
|
|
Accounts receivable,
net
|
263,078
|
|
60,458
|
Inventories
|
(92,649)
|
|
39,773
|
Other current
assets
|
(30,323)
|
|
23,110
|
Accounts
payable
|
49,797
|
|
264,500
|
Accrued
compensation
|
94,249
|
|
19,415
|
Accrued
liabilities
|
(65,795)
|
|
383,436
|
Accrued pension
liability
|
44,081
|
|
40,073
|
Net cash used in
operating activities
|
(1,505,465)
|
|
(685,094)
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
Proceeds from maturity
of available-for-sale marketable investments
|
3,050,000
|
|
1,000,000
|
Purchases of
held-to-maturity marketable investments
|
-
|
|
820,000
|
Purchases of property,
plant and equipment
|
(52,739)
|
|
(189,789)
|
Proceeds from sale of
property, plant and equipment
|
-
|
|
6,080
|
Net cash provided by
investing activities
|
2,997,261
|
|
1,636,291
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
Proceeds from exercise
of stock options
|
48,600
|
|
-
|
Net cash provided by
financing activities
|
48,600
|
|
-
|
|
|
|
|
Effect of exchange
rates on cash and cash equivalents
|
(315)
|
|
9,312
|
|
|
|
|
Net increase in cash
and cash equivalents
|
1,540,081
|
|
960,509
|
|
|
|
|
Cash and cash
equivalents at beginning of period
|
8,681,609
|
|
3,533,864
|
|
|
|
|
Cash and cash
equivalents at end of period
|
$10,221,690
|
|
$4,494,373
|
|
|
|
|
Supplemental
disclosure of cash flow information:
|
|
|
|
Cash paid during the
period for income tax
|
$38,700
|
|
$17,770
|
|
|
|
|
Non-GAAP Financial Measures: The following table
reconciles our operating loss calculated in accordance with
accounting principles generally accepted in the U.S. ("GAAP") to
non-GAAP financial measures that exclude non-cash charges for
share-based compensation, depreciation and amortization from gross
profit, operating expenses and operating loss. The non-GAAP
financial measures used by management and disclosed by us are not a
substitute for, or superior to, financial measures and consolidated
financial results calculated in accordance with GAAP, and you
should carefully evaluate our reconciliations to non-GAAP. We
may calculate our non-GAAP financial measures differently from
similarly titled measures used by other companies. Therefore,
our non-GAAP financial measures may not be comparable to those used
by other companies. We have described the reconciliations of
each of our non-GAAP financial measures described above to the most
directly comparable GAAP financial measures.
We use these non-GAAP financial measures, and in particular
non-GAAP operating loss, for internal managerial purposes because
we believe such measures are one important indicator of the
strength and the operating performance of our business.
Analysts and investors frequently ask us for this
information. We believe that they use these measures to
evaluate the overall operating performance of companies in our
industry, including as a means of comparing period-to-period
results and as a means of evaluating our results with those of
other companies.
Our non-GAAP operating loss during the three months ended
June 30, 2014 and 2013 was
approximately $1,778,000 and
$1,499,000 respectively. The
increase in non-GAAP operating loss for the three months ended
June 30, 2014 over the corresponding
period a year ago is attributed to the increase in operating costs,
partially offset by the increase in net sales and gross profit.
|
|
Expense
Adjustments
|
|
|
GAAP
|
Share-based
Expense
|
Depreciation
|
Amortization
|
Non-GAAP
|
Three Months Ended
June 30, 2014
|
|
|
|
|
Gross
Profit
|
$5,593,000
|
$13,000
|
$5,000
|
$-
|
$5,611,000
|
% of sales
|
87.6%
|
|
|
|
87.9%
|
Operating
Expenses
|
|
|
|
|
|
General & administrative
|
1,577,000
|
(212,000)
|
(39,000)
|
-
|
1,326,000
|
Research and development
|
909,000
|
(18,000)
|
(1,000)
|
-
|
890,000
|
Selling and marketing
|
5,273,000
|
(80,000)
|
(20,000)
|
-
|
5,173,000
|
Amortization
|
8,000
|
-
|
-
|
(8,000)
|
-
|
|
7,767,000
|
(310,000)
|
(60,000)
|
(8,000)
|
7,389,000
|
Operating
Loss
|
$(2,174,000)
|
$323,000
|
$65,000
|
$8,000
|
$(1,778,000)
|
|
|
|
|
|
|
Three Months Ended
June 30, 2013
|
|
|
|
|
Gross
Profit
|
$5,093,000
|
$8,000
|
$9,000
|
$-
|
$5,110,000
|
% of sales
|
87.2%
|
|
|
|
87.5%
|
Operating
Expenses
|
|
|
|
|
|
General & administrative
|
1,581,000
|
79,000
|
(51,000)
|
-
|
1,609,000
|
Research and development
|
480,000
|
(14,000)
|
(1,000)
|
-
|
465,000
|
Selling and marketing
|
4,627,000
|
(73,000)
|
(19,000)
|
-
|
4,535,000
|
Amortization
|
7,000
|
-
|
-
|
(7,000)
|
-
|
|
6,695,000
|
(8,000)
|
(71,000)
|
(7,000)
|
6,609,000
|
Operating
Loss
|
$(1,602,000)
|
$16,000
|
$80,000
|
$7,000
|
$(1,499,000)
|
SOURCE Uroplasty, Inc.