Full Press Release Details
Sensus Healthcare Reports First Quarter
2019 Financial Results
BOCA RATON, Fla. (May 9, 2019) -
Sensus Healthcare, Inc. (Nasdaq: SRTS), a medical device company specializing in highly effective, non-invasive treatments
for both oncological and non-oncological conditions, announces financial results for the three months ended March 31, 2019.
Highlights from the first quarter of 2019
and recent weeks include:
Management Commentary
"The first quarter and recent weeks
were highlighted by Sculptura FDA clearance and selling our second Sculptura system to Rabin Medical Center, a renowned institution
in Israel focused on researching the latest technologies," said Joe Sardano, Chairman and Chief Executive Officer. "This
sale, along with the Q4 2018 sale to the Perelman School of Medicine at the University of Pennsylvania and our subsequent research
and development agreement, is expected to provide important data for a variety of indications. We are very encouraged by these
purchases from such prestigious institutions and are gratified they view Sculptura as an important advancement in cancer treatment.
We have staffed up our oncology sales team, which now numbers seven people, in anticipation of a measured sales ramp through the
year for this innovative product."
Mr. Sardano continued, "Premier -
one of the nation's largest group purchasing organizations serving approximately 4,000 hospitals and health systems and about
165,000 other providers and organizations - has added SRT to its list of approved products for its members, effective August
1. This achievement is the culmination of more than six months of work on the part of Sensus and will support our efforts to penetrate
the hospital market. We will now begin work with Premier to secure inclusion of Sculptura at an appropriate time."
"In recent weeks topline results
from a five-year retrospective study of non-melanoma skin cancer patients treated with SRT were announced. The study was conducted
across four U.S. sites and showed a 98.9% cure rate among 516 male and female patients with 776 skin cancer lesions. Of note, this
cure rate exceeded the reported cure rate for Mohs surgery. We intend to highlight this study in our marketing materials and expect
that this cure rate will further strengthen the efficacy discussion for SRT."
"We continue to increase our footprint
in Israel, the site of our R&D operations, in particular for new laser products and for sales outside the U.S. We plan to expand
our manufacturing capacity and have signed a lease for a factory. We expect to begin production there by the end of the year,"
Commenting on financial results, Mr. Sardano
said, "First quarter revenues were impacted as a key customer worked to shore up their capital position to support faster-than-expected
growth. We made the decision to temporarily moderate sales to them and not extend further credit. Financing now appears to be in
place and subsequent to quarter end they paid down over $5 million of their outstanding accounts receivables. Although there is
strong demand, we made the decision to recover the Q1 shortfall in sales, numbering seven units, to this customer over the next
few quarters so as not to overwhelm our infrastructure. We expect to make up all lost sales and we reaffirm expectations for full-year
double-digit revenue growth."
First Quarter 2019 Financial Results
Revenues for the first quarter of 2019
were $5.4 million, compared with $6.0 million for the first quarter of 2018. This was attributable to fewer sales of the higher-priced
SRT-100 Vision product during the quarter.
Gross profit for the first quarter of 2019
was $3.3 million, or 61.0% of revenues, compared with $3.9 million, or 66.2 % of revenues, for the first quarter of 2018. This
was mainly due to a shift in product mix.
Selling and marketing expense for the first
quarter of 2019 was $2.5 million, compared with $2.2 million for the first quarter of 2018. The increase was primarily due to increased
General and administrative expense for
the first quarter of 2019 was $1.0 million, compared with $1.3 million for the first quarter of 2018. This was due to a one-time
stock-compensation expense of $0.4 million in the 2018 quarter, offset by net other increases.
Research and development expense for the
first quarter of 2019 was $2.0 million, compared with $1.5 million for the first quarter of 2018. The increase was mainly due to
expenses related to the FDA clearance of Sculptura in February, as well as the ramp-up in production.
Net loss for the first quarter of 2019
was $(2.1) million, or ($0.13) per share, compared with a net loss of $(1.1) million, or $(0.08) per share, for the first quarter
Adjusted EBITDA for the first quarter of
2019 was $(1.9) million, compared with $(0.5) million for the first quarter of 2018. 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 investments were $11.0 million
as of March 31, 2019, compared with $15.4 million as of December 31, 2018. The company had no outstanding borrowings on its revolving
line of credit at March 31, 2019. During the first quarter of 2019 the company received $2.7 million from the exercise of IPO warrants,
which expire on June 8, 2019. Accounts receivable as of March 31, 2019 were $16.9 million, compared with $13.1 million at December
31, 2018. Subsequent to the end of the quarter, Sensus collected $5.5 million in outstanding receivables.
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 March 31, | ||||||||
| 2019 | 2018 | |||||||
| Net Loss, as reported | $ | (2,121,018 | ) | $ | (1,125,913 | ) | ||
| Add: | ||||||||
| Depreciation and amortization | 128,435 | 100,534 | ||||||
| Stock compensation expense | 154,535 | 541,608 | ||||||
| Interest, net | (72,020 | ) | 11,393 | |||||
| Adjusted EBITDA, non GAAP | $ | (1,910,068 | ) | $ | (472,378 | ) |
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 2019
first 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 May 16, 2019 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: 10130756. 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 specializing in highly effective, non-invasive, minimally-invasive, and cost-effective treatments for both oncological
and non-oncological conditions. The Sculptura robotic radiation oncology system provides targeted intraoperative triple-modulated
radiotherapy (IORT) 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, with a single dose. 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