Full Press Release Details
Sensus Healthcare Reports Fourth Quarter
and Full Year 2019 Financial Results
Fourth quarter net income up 10-fold to $1.0
million, diluted EPS of $0.06
Conference call begins at 4:30
p.m. Eastern time today
BOCA RATON, Fla. (February 13, 2020) -
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 and 12
months ended December 31, 2019.
Highlights from the fourth quarter of 2019
and recent weeks include (all comparisons are with the fourth quarter of 2018, unless otherwise indicated):
Management Commentary
"We closed 2019 with an excellent fourth
quarter featuring a 5% increase in revenue over a strong prior-year comparison, while generating meaningful profitability,"
said Joe Sardano, Sensus Healthcare's chairman and chief executive officer. "When Sensus came public almost five years
ago, we projected profitability in 2020. With much of the research and development that supported new products including Sculptura
and Sentinel now behind us, we are determined to be profitable for the year.
"During the quarter we shipped 26
systems, including 16 SRT-100 Vision systems, nine SRT-100 and SRT-100+ systems and one Sculptura system. Our Sentinel software is
embedded in our SRT-100+ units and allows the practice to better manage the system with billing and real-time alerts, among
other capabilities, while we provide remote service and monitoring. The SRT-100+ helps us provide more efficient service to
our customers, while making a shared revenue program, which began in the third quarter of 2019, possible. Currently 34% of
the systems we have sold have associated recurring service revenues, up from 26% a year ago. While the bulk of premium-priced
SRT-100 Vision systems were sold to a key customer, we also sold a Vision system to a dermatology practice in Idaho during
the quarter. We are pleased with our relationship with this key customer and are working with them to refine our
"We recently announced the sale of our
third Sculptura system, this one to a leading California-based medical center. This follows sales to the Perelman Center for Advanced
Medicine at the University of Pennsylvania, with which we have a research agreement, and to Beilinson Hospital of the Rabin Medical
Center in Tel Aviv. We are in discussions with several more key institutions and expect these sales to occur in the first half
of the year. Penn is gearing up for research work with Sculptura in the very near future.
Mr. Sardano continued, "We believe our
international sales are poised for a rebound following the geopolitical upheaval in China during 2019. We look forward to resuming
sales there as the U.S./China trade war appears to be resolving, noting the recent coronavirus outbreak has added unexpected uncertainty.
In addition, we received regulatory clearance in Korea during the fourth quarter and sold an SRT-100 unit to Vietnam. Overall,
we believe the entire Asia market holds promise.
"During the fourth quarter we promoted
several professionals from within our organization to new executive positions. These individuals have impressive qualifications,
discipline, dedication, and a focus on profitability. As we approach the 10-year anniversary of the founding of Sensus Healthcare
this June, we expect to have placed our 500th unit and to be well on our way to sustained profitability," Mr.
Fourth Quarter Financial Results
Revenues for the fourth quarter of 2019 were
$8.5 million, compared with $8.1 million for the fourth quarter of 2018. The increase was primarily due to higher average selling
Gross profit for the fourth quarter of 2019
was $5.5 million, or 64.1% of revenues, compared with $4.9 million, or 60.2 % of revenues, for the fourth quarter of 2018.
Selling and marketing expense for the fourth
quarter of 2019 was $2.5 million, compared with $2.4 million for the fourth quarter of 2018. The increase was primarily due to
General and administrative expense for the
fourth quarter of 2019 was $1.1 million, compared with $1.0 million for the fourth quarter of 2018. The increase was primarily
due to bad debt expense of $0.4 million, largely offset by a decline in payroll expense.
Research and development expense for the fourth
quarter of 2019 was $0.9 million, compared with $1.5 million for the fourth quarter of 2018. The decrease was mainly due to lower
expenses related to Sculptura development, as commercial production begins.
Net income for the fourth quarter of 2019 was
1.0 million, or $0.06 per diluted share, compared with net income of $0.1 million, or $0.01 per diluted share, for the fourth quarter
Adjusted EBITDA for the fourth quarter of
2019 was $1.3 million, compared with $0.4 million for the fourth quarter of 2018. Adjusted EBITDA 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 specific reasons these non-GAAP financial measures are provided.
Cash and investments were $15.5 million as
of December 31, 2019, compared with $15.4 million as of December 31, 2018. The company had no long-term debt and no outstanding
borrowings on its revolving line of credit as of December 31, 2019.
Full Year 2019 Financial Results
Total revenues for 2019 were $27.3 million,
compared with $26.4 million for 2018. Gross profit for 2019 was $17.6 million, or 64.4% of revenue, compared with $16.9 million,
or 64.0% of revenue, for 2018.
Selling and marketing expense increased
to $9.1 million for 2019 from $8.5 million in the prior year, primarily due to higher headcount. General and administrative
expense decrease to $4.0 million for 2019 from $4.1 million for 2018, mostly due to lower payroll expense. Research and
development expense was $6.4 million for 2019, compared with $6.3 million for 2018. The increase was primarily attributable
to the FDA clearance of Sculptura as well the Company's ramp-up to production.
The net loss for 2019 was $(1.7) million, or
$(0.10) per share, compared with a net loss of $(2.0) million, or $(0.14) per share, for 2018.
Adjusted EBITDA for 2019 was $(0.8) million,
compared with $(0.4) million for 2018.
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 December 31, | For the Years Ended December 31, | |||||||||||||||
| 2019 | 2018 | 2019 | 2018 | |||||||||||||
| Net Loss, as reported | $ | 1,039,102 | $ | 101,912 | $ | (1,700,003 | ) | $ | (2,022,761 | ) | ||||||
| Add: | ||||||||||||||||
| Depreciation and amortization | 130,591 | 230,829 | 545,717 | 658,255 | ||||||||||||
| Stock compensation expense | 150,101 | 159,129 | 620,925 | 982,624 | ||||||||||||
| Interest, net | (54,711 | ) | (70,658 | ) | (268,289 | ) | 17,406 | |||||||||
| Adjusted EBITDA, non GAAP | $ | 1,265,083 | $ | 421,212 | $ | (801,650 | ) | $ | (364,476 | ) |
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
fourth quarter and year, provide a business update and answer questions. To access the conference call, the dial-in numbers are
888-567-1603 (U.S. and Canada) or 862-298-0702 (International). Please direct the operator to be connected to the Sensus Healthcare
conference call. The call will be webcast live and can be accessed here, and may also be found in the Investor Relations section
of the Company's website at www.sensushealthcare.com.
Following the conclusion of the conference
call, a replay will be available and can be accessed by dialing 888-539-4649 (U.S. and Canada), or 754-333-7735 (International).
At the prompt, enter replay code 150864 followed by the # sign. An archived webcast of the call will also be available in the Investor