Full Press Release Details
Healthcare Reports Fourth Quarter and Full Year 2020 Financial Results
fourth quarter net income of $1.0 million on revenues of $5.1 million
call begins at 4:30 p.m. Eastern time today
RATON, Fla. (February 25, 2021) - 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, 2020.
from the fourth quarter of 2020 and recent weeks include the following (all comparisons are with the fourth quarter of 2019, unless
otherwise indicated):
improved significantly during the fourth quarter compared with the first three quarters of the year. Reflecting our keen attention
to operating expenses. We generated net income of $1.0 million for the quarter, a positive finish to a very challenging year,"
said Joe Sardano, chairman and chief executive officer of Sensus Healthcare. "While our business continues to be impacted
by the pandemic, the cautious reopening of regional economies across the U.S. allowed Sensus to resume sales. We were delighted
to ship 18 SRT systems during the quarter, including 12 domestic direct sales and three to China. We are cautiously optimistic
that markets will recover during the coming year, and plan to step up select hiring in our sales organization.
the fourth quarter, two clinical studies on the use of SRT for the prevention of keloid recurrence were published. One showed
keloidectomy followed by SRT had an approximate 10% recurrence rate, compared with an expected recurrence rate of more than 80%
following surgical excision alone. The other showed that a single low dose of SRT following excision of 14 keloids had an approximate
6.25% recurrence rate at six months, and for the 10 patients available for follow-up at 24 months none of the keloids had recurred.
were delighted that CMS revalued our main code following years of lobbying, issuing a new, final reimbursement amount for CPT
code 77401 of approximately $44 per treatment, effective January 1, 2021. In addition, E/M codes that CMS directs users
of SRT to utilize have increased by 30%. Other codes were revalued upward for the ultrasound capability in our SRT-100 Vision
systems. Zoom Meetings to present these new coding values have been scheduled, hosted by Dr. Mark Nestor, President of the American
Cutaneous Oncology Society (ACOS). We are pleased our physician customers will now be provided with a more fair and equitable
reimbursement for a procedure with favorable outcomes without the potential complications. While in the midst of peak Covid -
19 conditions, SRT was proven a valuable tool for our physicians and their patients and should become part of "best practices"
procedure in the new normal post Covid-19 as well. We believe new reimbursement amounts will catalyze additional physician interest
in adding SRT to their treatment armamentarium.
COVID-19 impacted sales, it also presented an opportunity for Sensus to offer a treatment for pneumonia in COVID-19 patients by
delivering superficial radiation to the lung. We shipped an SRT system to Holy Name Hospital in Teaneck, New Jersey, a hospital
on the forefront of COVID-19 therapy. We expect to receive data on the efficacy of our system for this use during the next weeks
and note that preliminary data suggest a positive therapeutic effect. Our SRT systems are well-suited for COVID-19 as they are
portable and allow for bedside treatment in the intensive care unit, rather than transporting patients to a cancer treatment center
for radiation therapy and possibly exposing vulnerable patients to the virus."
Sardano added, "We have 510(k) clearance for four aesthetic lasers equipped with our Sentinel IT Solutions software
to be introduced by the end of the first quarter 2021. Sentinel provides asset management and HIPAA-compliant patient data and
storage capability, and also contains the software necessary to support shared service models including direct patient billing.
We have integrated these lasers into SLAS, our mobile aesthetic laser division that we expect will become a meaningful source
of revenue growth, in particular as we roll out two disruptive rental strategies during the first quarter of 2021. These strategies
are designed to generate consistent revenue for Sensus, while providing physician customer with access to multiple lasers. We
are also looking at expanding our mobile aesthetic laser business beyond Florida via strategic transactions.
in China picked up during the fourth quarter with the sale of three systems. Plus, as of January 1, 2021 we have a new distribution
partner for China and Hong Kong. Our new VP of international sales has developed an extensive network of prospects in China, and
we are optimistic that China represents an excellent growth opportunity. In addition, we are finalizing a new distributor in Taiwan
and are preparing Sculptura for the regulatory process in China. Sculptura is our Anisotropic Radiation Therapy with Beam
Sculpting capabilities and Robotic Respiratory Tracking for up to 17 different indications.
am so very proud of our staff and the way we kept our focus on customers and patients throughout the pandemic. We believe the
worst is behind us and that we are well positioned to resume the growth trajectory that was interrupted almost exactly one year
ago," concluded Mr. Sardano.
Quarter Financial Results
for the fourth quarter of 2020 were $5.1 million, compared with $8.5 million for the fourth quarter of 2019. The decrease was
due to lower number of units sold as a result of COVID-19.
profit for the fourth quarter of 2020 was $3.2 million, or 63.4% of revenues, compared with $5.5 million, or 64.1 % of revenues,
for the fourth quarter of 2019.
and marketing expense for the fourth quarter of 2020 was $1.3 million, compared with $2.5 million for the fourth quarter of 2019.
The decrease was primarily due to a reduction in tradeshow expense and sales commissions.
and administrative expense for the fourth quarter of 2020 was $0.8 million, compared with $1.1 million for the fourth quarter
of 2019. The decrease primarily reflects the impact of bad debt expense in 2019.
and development expense for the fourth quarter of 2020 was $0.8 million, compared with $0.9 million for the fourth quarter of
2019. The decrease was mainly due to lower expenses related to Sculptura development, as commercial production started.
income for both the fourth quarter of 2020 and 2019 was $1.0 million, or $0.06 per diluted share.
EBITDA for both the fourth quarter of 2020 and 2019 were $1.3 million. 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 specific reasons these non-GAAP financial measures are provided.
and investments were $14.9 million as of December 31, 2020, compared with $15.5 million as of December 31, 2019. The company had
a small long-term debt and no outstanding borrowings under its revolving line of credit both during 2020 and as of December 31,
Year 2020 Financial Results
revenues for 2020 were $9.6 million, compared with $27.3 million for 2019. Gross profit for 2020 was $5.2 million, or 54.8% of
revenue, compared with $17.6 million, or 64.4% of revenue, for 2019. The decrease in revenue, gross profit and gross margin is
primarily due to the lower number of units sold, reflecting the impact of COVID-19.
and marketing expense decreased to $5.3 million for 2020 from $9.1 million in the prior year, primarily due to cancellations of
trade shows due to COVID-19, a decrease in commission expense due to lower sales, and reduced spending on marketing activities.
General and administrative expense was unchanged at $4.0 million for both years. Research and development expense was $4.2 million
for 2020, compared with $6.4 million for 2019. The decrease was primarily due to lower spending as the Sculptura project entered
commercial production during 2020.
net loss for 2020 was $(6.8) million, or $(0.42) per share, compared with a net loss of $(1.7) million, or $(0.10) per share,
EBITDA for 2020 was $(5.8) million, compared with $(0.8) million for 2019.
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 December 31, | For the Years Ended December 31, | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| Net loss, as reported | $ | 1,018,413 | $ | 1,039,102 | $ | (6,835,526 | ) | $ | (1,700,003 | ) | ||||||
| Add: | ||||||||||||||||
| Depreciation and amortization | 238,077 | 130,591 | 721,865 | 545,717 | ||||||||||||
| Stock-compensation expense | 62,564 | 158,145 | 386,483 | 620,925 | ||||||||||||
| Interest, net | (3,274 | ) | (54,711 | ) | (52,555 | ) | (268,290 | ) | ||||||||
| Adjusted EBITDA, non-GAAP | $ | 1,315,780 | $ | 1,273,127 | $ | (5,779,733 | ) | $ | (801,651 | ) |
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 2020 fourth quarter, provide a business update and answer questions. To access the conference
call, the dial-in numbers are 888-390-3967 (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 or in the Investors
section of the Company's website here.
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 155222 followed by the # sign. An archived webcast of the call
will also be available in the Investors section of the Company's website for a period of time.
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 modulated robotic brachytherapy radiation