Full Press Release Details
Sensus Healthcare Reports First Quarter 2024 Financial
Results With Revenues up More than Three-fold
Conference call begins at 4:30 p.m. Eastern
BOCA RATON, Fla. (May 9, 2024) - 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, 2024.
Highlights from the first quarter of 2024 and recent
weeks include the following (all comparisons are with the first quarter of 2023, unless otherwise noted):
| Sold first SRT-100 Vision System (IG-SRT) in Asia, to Far Eastern Memorial Hospital in Taiwan | ||
| Made first commercial sale of an SRT-100 for veterinary use outside the U.S., to Chavat Da'at, the Veterinary Specialist Referral Center Knowledge Farm at Beit Verl College in Tel Aviv, to provide a gentler radiotherapy option to treat tumors in dogs and cats |
Management Commentary
"Our first quarter financial results were strong
as we more than tripled revenues compared with the 2023 quarter and achieved a substantial profit, reversing last year's net loss
as customers adjust to macroeconomic conditions," said Joe Sardano, Chairman and Chief Executive Officer of Sensus Healthcare. "This
performance reflects continued business momentum as customers recognize the importance to their patients of SRT, a non-invasive and highly
efficacious modality to treat non-melanoma skin cancer, while benefitting from a choice in sales options, including our new Fair Deal
Agreement to complement our proven fair market value lease program.
"We showcased our Fair Deal Agreement program
at three important trade conferences during the quarter, including the Winter Clinical and South Beach Symposium, and the American Academy
of Dermatology Annual Meeting. We enjoyed excellent booth traffic at all three events. The Fair Deal Agreement is a recurring revenue
program that addresses the customer's need to use capital in other areas of growing their business, and facilitates what we believe
is a compelling economic model. This new offering continues to gain traction with more and more interest each and every day. Under this
program, the more patients treated with SRT-100 Vision, the more revenue to the practice. It's that simple. The Fair Deal Agreement
includes the work of CureRays to provide oversight to facilitate the utmost efficiency and effectiveness of the dermatology practice."
Mr. Sardano added, "In addition to launching
the Fair Deal Agreement, at these trade shows we also showcased the state-of-the-art capabilities embedded in the SRT-100 Vision. These
include our newly patented proprietary technology covering 33 individual claims. The patent describes technology that's essentially
a treatment-planning system made possible by fusing a radiation therapy device with high-frequency ultrasound, permitting seamless operation
with the Fair Deal Agreement program.
"Between interest in the new technology and
our new sales offering, we have assembled a significant pipeline of potential customers, so much so that we built further inventory to
satisfy anticipated demand," Mr. Sardano continued. "That said, we highly value our existing customers and continue to work
with them to expand SRT to additional clinics nationwide.
"Our goal is to make SRT the standard of care
for treating non-melanoma skin cancer and keloids. We believe we have barely penetrated this market and see plenty of room for growth,
both in the U.S. and around the world, as evidenced by recent progress in Taiwan," Mr. Sardano concluded.
First Quarter Financial Results
Revenues for the first quarter of 2024 were $10.7
million, compared with $3.4 million for the first quarter of 2023, an increase of $7.3 million, or 215%. The increase was primarily driven
by a higher number of SRT systems sold to a large customer.
Cost of sales was $4.0 million for the first quarter
of 2024, compared with $1.8 million for the prior-year quarter, an increase of $2.2 million, or 122%. The increase was primarily related
to a higher number of units sold.
Gross profit for the first quarter of 2024 was $6.7
million, or 62.5% of revenues, compared with $1.6 million, or 47.5% of revenues, for the first quarter of 2023, an increase of $5.1 million,
or 319%. The increase was primarily driven by the increased number of units sold.
Selling and marketing expense was $1.3 million for
the first quarter of 2024, compared with $2.1 million for the prior-year quarter, a decrease of $0.8 million, or 38%. The decrease was
primarily attributable to a decline in marketing expense, headcount and tradeshow costs.
General and administrative expense was $1.6 million
for the first quarter of 2024, compared with $1.4 million for the first quarter of 2023, an increase of $0.2 million, or 14%. The increase
was primarily due to higher professional fees and compensation.
Research and development expense was $0.9 million
for the first quarter of 2024, compared with $1.1 million for the first quarter of 2023, a decrease of $0.2 million, or 18%. The decrease
reflects the completion of development of a drug delivery system for the aesthetic market.
Other income of $0.2 million for the first quarter
of 2024 was mostly related to interest income, and was unchanged from the prior-year quarter.
Net income for the first quarter of 2024 was $2.3
million, or $0.14 per diluted share, compared with a net loss of $1.9 million, or $0.12 per share, for the first quarter of 2023.
Adjusted EBITDA for the first quarter of 2024 was
$3.0 million, compared with negative $2.7 million for the first quarter of 2023. 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 reasons these non-GAAP financial measures are provided.
Cash and cash equivalents were $14.7 million as of
March 31, 2024, compared with $23.1 million as of December 31, 2023. The Company had no outstanding borrowings under its revolving line
of credit. Accounts receivable were $19.6 million as of March 31, 2024, compared with $10.6 million as of December 31, 2023. Prepaid inventory
was $3.7 million, compared with $3.0 million, and inventories were $14.7 million, compared with $11.9 million, reflecting preparations
for higher expected unit sales and placements in 2024.
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 the Company's 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, | ||||||||
| (in thousands) | 2024 | 2023 | ||||||
| Net income (loss), as reported | $ | 2,274 | $ | (1,894 | ) | |||
| Add: | ||||||||
| Depreciation and amortization | 70 | 72 | ||||||
| Stock compensation expense | 91 | 143 | ||||||
| Income tax expense (benefit) | 827 | (802 | ) | |||||
| Interest income, net | (214 | ) | (243 | ) | ||||
| Adjusted EBITDA, non GAAP | $ | 3,048 | $ | (2,724 | ) |
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 2024 first quarter, provide a business update and answer questions. To access the conference call, dial 844-481-2811
(U.S. and Canada Toll Free) or 412-317-0676 (International). The call will be webcast live and can be accessed at this link,
or in the Investors section of the Company's website at www.sensushealthcare.com.
the conclusion of the conference call, a replay will be available until June 9, 2024 and can be accessed by dialing 877-344-7529 (U.S.
Toll Free), 855-669-9658 (Canada Toll Free) or 412-317-0088 (International), using replay code 9785929. An archived webcast of the call
will also be available in the Investors section of the Company's website.
Healthcare, Inc. is a global pioneer in the development and delivery of non-invasive treatments for skin cancer and keloids. Leveraging
its cutting-edge superficial radiotherapy (SRT and IG-SRT) technology, the company provides healthcare providers with a highly effective,
patient-centric treatment platform. With a dedication to driving innovation in radiation oncology, Sensus Healthcare offers solutions
that are safe, precise, and adaptable to a variety of clinical settings. For more information, please visit www.sensushealthcare.com.
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.
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