Full Press Release Details
Sensus Healthcare Reports Record Revenue
for 2017 Fourth Quarter and Full Year
Ninth consecutive quarter of double-digit
year-over-year revenue growth
Conference call begins
at 4:30 p.m. Eastern time today
BOCA RATON, Fla. (February 1, 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 and 12 months ended
Highlights from the fourth quarter of 2017
and recent weeks include:
Management Commentary
"I am very pleased with our 2017
financial results and with the momentum that led to a record fourth quarter, our ninth consecutive quarter of double-digit revenue
growth," said Joe Sardano, chairman and chief executive officer of Sensus Healthcare. "We exceeded $20 million in revenues
for the year, an increase of 39% over 2016. This growth demonstrates the success of our sales and marketing team in expanding awareness
of the advantages of treating non-melanoma skin cancer and keloids with SRT. In 2017 we shipped 68 SRT-100 units, half of which
were SRT-100 Vision systems. The increased contribution of SRT- 100 Vision systems has supported our excellent gross
margins, which reached 67% for the year.
"Our research and development team
has developed new applications, products and upgrades to our offerings that are expected to support revenue growth for the foreseeable
future. Of note, we filed a 510(k) application with the FDA covering the use of our new SRT system for Intraoperative Radiation
Therapy (IORT) for breast and other cancers. We also plan to introduce new products during the year that will allow our sales and
marketing professionals to further leverage our installed base of dermatologist customers. Our step up in R&D expense in the
fourth quarter reflects this investment and we expect similar spending levels during 2018. To protect our proprietary technology
we now have four patents issued and 14 pending."
Mr. Sardano continued, "Following
the recent launch of the SRT-100 in China for the treatment and prevention of keloids, we are off to a great start with three units
already sold to our partner Chindex Medical in the fourth quarter. As a reminder, this is in addition to our previous launch in
China for non-melanoma skin cancer. We are excited about the growth opportunity this new indication represents, as the keloid population
in China is very large. We are also planning to expand our presence in Israel as part of an enhanced international strategy.
"Looking forward to 2018, we expect
our installed base of SRT systems to increase to over 400 and we are planning to make modest increases to our sales and marketing
team throughout the year," he added. "While we are open to acquisitions that could provide critical mass and are actively
pursuing this avenue, we are also focused on developing our own products to bring Sensus to the next level."
Financial Results for the Three Months
Ended December 31, 2017
Revenues for the fourth quarter of 2017
increased 33% to $6.5 million, compared with $4.9 million for the fourth quarter of 2016. The increase is attributable to a higher
number of units sold, in particular the SRT-100 Vision , which has a higher average selling price.
Gross profit for the fourth quarter of
2017 was $4.3 million, or 66.7% of revenue, compared with $3.3 million, or 68.5% of revenue, for the fourth quarter of 2016.
Selling and marketing expense for the fourth
quarter of 2017 was $2.1 million, compared with $1.7 million for the fourth quarter of 2016. The increase was primarily attributable
to higher sales headcount, increased participation in tradeshows and other marketing activities.
General and administrative expense for
the fourth quarter of 2017 was $0.9 million in both the fourth quarter of 2017 and 2016.
Research and development expense for the
fourth quarter of 2017 was $1.7 million, compared with $0.7 million for the fourth quarter of 2016. The increase was attributable
to research projects that were accelerated in the fourth quarter of 2017.
The net loss for the fourth quarter of
2017 was $0.4 million, or $0.03 per share, compared with net income of $0.03 million, or $0.00 per share, for the fourth quarter
Adjusted EBITDA for the fourth quarter
of 2017 was $(0.2) million, compared with $0.2 million for the fourth quarter of 2016. 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, cash equivalents and investments
were $11.2 million as of December 31, 2017, compared with $12.6 million at December 31, 2016.
Borrowings under the revolving line of
credit were $2.2 million as of December 31, 2017. On October 31, 2017, the Company increased its line of credit to $5.0 million
from $2.0 million. This new line includes a $2.5 million "non-formula" sublimit that is available even without a borrowing
base from eligible accounts receivable and will support the Company's continued growth.
Financial Results for the 12 Months
Ended December 31, 2017
Revenues for 2017 increased 39% to $20.6
million, compared with $14.8 million for 2016. Gross profit for the year was $13.8 million, or 67.0% of revenue, compared with
$9.8 million, or 66.5% of revenue, for 2016. Selling and marketing expense for 2017 was $8.3 million, compared with $4.9 million
for 2016. General and administrative expense was $3.7 million for 2017, compared with $3.5 million for 2016. Research and development
expense for 2017 was $5.5 million, compared with $1.8 million for 2016. The net loss for 2017 was $3.7 million, or $0.28 per share,
compared with a net loss for 2016 of $0.3 million, or $0.03 per share.
Adjusted EBITDA for 2017 was $(2.9) million,
compared with $0.7 million for 2016.
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 Year Ended December 31, | |||||||||||||||
| 2017 | 2016 | 2017 | 2016 | |||||||||||||
| Net Income (Loss), as reported | $ | (408,583 | ) | $ | 33,184 | $ | (3,710,514 | ) | $ | (346,448 | ) | |||||
| Add: | ||||||||||||||||
| Depreciation and amortization | 93,011 | 84,364 | 387,917 | 337,583 | ||||||||||||
| Stock compensation expense | 102,431 | 100,953 | 405,896 | 726,376 | ||||||||||||
| Interest, net | 9,075 | (12,898 | ) | (6,926 | ) | (16,671 | ) | |||||||||
| Adjusted EBITDA, non GAAP | $ | (204,065 | ) | $ | 205,603 | $ | (2,923,626 | ) | $ | 700,840 |
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 2017
fourth quarter and full year, 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. A live webcast of the conference call also will be available on the Company's
website at www.sensushealthcare.com.
Following the conclusion of the conference
call, a replay will be available through February 8, 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: 10116554.
The webcast will be archived on the Company's website at www.sensushealthcare.com.
About Sensus Healthcare
Sensus Healthcare, Inc. is a medical device