Full Press Release Details
Healthcare Reports First Quarter Financial Results Featuring 37% Revenue Growth
21 systems with SRT-100 Vision systems sales continuing to rise
call begins at 4:30 p.m. Eastern time today
RATON, Fla. (May 3, 2018) - 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 months ended March 31, 2018.
from the first quarter of 2018 and recent weeks include:
business momentum continued during the first quarter of 2018, and I am very pleased to report our 10th consecutive
quarter of double-digit revenue growth," said Joe Sardano, chairman and chief executive officer of Sensus Healthcare. "Revenues
of $6.0 million were up 37% over last year's first quarter and included strong sales of our feature-rich, premium-priced
SRT-100-Vision system for the treatment of non-melanoma skin cancer and keloids. We also had a month's contribution
from our new line of three lasers launched on March 1 under the Sensus Laser Systems brand. These lasers provide a wide range
of aesthetic and clinical solutions, including tissue ablation, acne treatment, and hair and tattoo removal, among other uses,
while providing our dedicated sales force with additional products as they call on dermatologists and Mohs surgeons."
Sardano added, "The growing contribution of SRT-100 Vision systems, which accounted for more than half of the units
sold during the quarter, contributed to a year over year increase in gross margin to 66.2%, up from 65.6% in the prior-year's
opened a subsidiary in Tel Aviv during the quarter with a two-pronged goal," Mr. Sardano continued. "With SRT-100
Vision systems already installed in Israel, we see opportunity to expand sales there while using this office as a springboard
to the rest of the Middle East and Europe. Also, we are mindful of the wealth of aesthetic technology being developed in Israel,
and believe there are multiple opportunities for collaboration to expand our product portfolio. We recently announced the further
expansion of our reach with new distribution agreements in Mexico, Korea, Germany, Thailand, and Costa Rica.
continue to invest in research and development in the U.S., and are developing new applications, products and upgrades to our
offerings that are expected to support revenue growth for the foreseeable future. We filed a 510(k) application with the U.S.
FDA for our new SRT system for Intraoperative Radiation Therapy (IORT) for breast and other cancers. Our application is progressing
through the Agency, and we are optimistic we will be in a position to launch this system by the end of the year. With this in
mind, we are dividing our sales responsibilities for the International and Domestic Oncology Markets. Last week, we announced
that Rick Golin, EVP and co-founder of the company, will focus on our expanding International business. Consequently, we are very
pleased to announce the hiring of Ms. Rita Gable, a seasoned and well-respected sales professional who has spent the last 15 years
of her career in the Oncology market and specifically, the past 8 years in Proton Therapy with the leader in that market, IBA.
Rita will lead our sales team as Vice President of Sales - Oncology and will lead the introduction of IORT into the US market
when it becomes available to the market."
Sardano continued, "I am pleased with the progress in China following the recent launch of the SRT-100 for the treatment
and prevention of keloids. Along with our distributor in China, Chindex Medical, we are excited about the growth opportunity
this new indication represents, as the number of Chinese with keloid scars is very large. We hope to receive clearance from the
China Food and Drug Administration for the SRT-100 Vision system by the end of the year.
expect our installed base of SRT systems to increase to more than 400 by the end of 2018, and our confidence is supported by the
excellent start to the year. While we are open to gaining mass through a strategic acquisition, we continue to invest in research
and development and in sales and marketing to grow Sensus organically."
Results for the Three Months Ended March 31, 2018
for the first quarter of 2018 increased 37% to $6.0 million, compared with $4.4 million for the first quarter of 2017. The increase
is attributable to a higher number of units sold, in particular the SRT-100 Vision , which has a higher average selling
profit for the first quarter of 2018 was $3.9 million, or 66.2% of revenue, compared with $2.9 million, or 65.6% of revenue, for
the first quarter of 2017. The higher gross profit margin was mainly due to a sales mix favoring the SRT-100 Vision .
and marketing expense for the first quarter of 2018 was $2.2 million, compared with $2.3 million for the first quarter of 2017.
and administrative expense for the first quarter of 2018 was $1.3 million, compared with $1.0 million for the first quarter of
2017. The increase was due to stock compensation expense of over $0.4 million during the 2018 quarter. Excluding this non-cash
expense, general and administrative expense decreased by over $0.1 million.
and development expense for the first quarter of 2018 was $1.5 million, compared with $1.1 million for the first quarter of 2017.
The increase is due to the ongoing IORT project, along with additional development of new products.
net loss for the first quarter of 2018 was $1.1 million, or $0.08 per share, compared with a net loss of $1.6 million, or $0.12
per share, for the first quarter of 2017.
EBITDA for the first quarter of 2018 was $(0.5) million, compared with $(1.4) million for the first 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 equivalents and investments were $9.5 million as of March 31, 2018, compared with $10.1 million as of December 31, 2017.
of Non-GAAP Financial Information
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, | ||||||||
| 2018 | 2017 | |||||||
| Net loss, as reported | $ | (1,125,913 | ) | $ | (1,572,133 | ) | ||
| Add: | ||||||||
| Depreciation and amortization | 100,533 | 94,157 | ||||||
| Stock compensation expense | 538,037 | 104,072 | ||||||
| Interest, net | 11,393 | (16,100 | ) | |||||
| Adjusted EBITDA, non GAAP | $ | (475,950 | ) | $ | (1,390,004 | ) |
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 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.
the conclusion of the conference call, a replay will be available through May 10, 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 following
replay access code: 10119889. The call will also be archived on the Company's website for a period of time at www.sensushealthcare.com.
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 therapy into
its portfolio of treatment devices, the 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. For more information, visit http://www.sensushealthcare.com.
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.
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 the SRT-100 product line; our ability
to successfully commercialize our products, including the SRT-100; 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