Full Press Release Details
Sensus Healthcare Reports Second Quarter 2021
Revenues of $5.4 million up 358% year-over-year,
Conference call begins at 4:30
p.m. Eastern time today
BOCA RATON, Fla. (August 5, 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 six months ended June 30, 2021.
Highlights from the second quarter of 2021 and
recent weeks include the following (all comparisons are with the second quarter of 2020, unless otherwise indicated):
Management Commentary
"Our second quarter financial results reflect
significant improvement following the impact of COVID-19 on the business during 2020, in particular last year's second quarter,
as overall market conditions continued to improve toward pre-pandemic levels," said Joe Sardano, chairman and chief executive officer
of Sensus Healthcare. "Our business gained momentum throughout the first half of the year and we are cautiously optimistic about
sequential quarterly growth for the rest of 2021. We shipped 17 systems during the second quarter, including seven SRT-100 Vision systems.
We sold six SRT-100 Visions to our corporate account and 11 SRT Systems directly to customers. New CMS reimbursement schedules for
SRT treatments along with new Leasing options provides for a better ROI for our customers as patients continue to request a non-invasive
approach to treating their skin cancer.
"Volumes for SRT Systems installed at customer
sites have continued to improve since the Centers for Medicare & Medicaid Services revalued our main procedure and other codes upward
effective January 1st of this year. In addition, various medical associations such as the American Academy of Dermatology and
the American Society for Radiation Oncology have increased their support for the safety and efficacy of SRT to treat non-melanoma skin
cancer and keloids via conference presentations and papers, and we believe this support is resonating with physicians. The combination
of backing by key opinion leaders and our presence at important trade shows such as the Fall Clinical has generated a solid list of leads
that we expect to convert to sales during the third quarter and beyond. We look forward to attending the Fall Clinical in Las Vegas in
October, which will be held both live and virtually this year.
"We are very pleased with the continued
success of our international business," Mr. Sardano added. "Our new distributor for China (Asia) and Hong Kong has developed
an extensive network of prospects that are converting to sales, with four more systems shipped to China during the second quarter. To
date in 2021 we sold five systems to China, in addition to four sold during the fourth quarter of 2020. We are now expanding our focus
to India for further international growth and are hopeful to record our first sale there later this year.
"The integration of our Sentinel
IT Solutions software into our proprietary lasers is complete and these lasers are now available through Sensus Laser Aesthetic Solutions
(SLAS), our mobile aesthetic laser division serving dermatologists throughout Florida with plans to expand beyond. SLAS offers multiple
lasers with custom rental options. 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 been actively evaluating
an expansion to our mobile aesthetic laser business beyond Florida via strategic transactions in geographies where we have an existing
"Barring any new economic restrictions related
to COVID-19 or inflation in the U.S., we are confident we will deliver higher revenues as well as Adjusted EBITDA throughout the balance
of the year," Mr. Sardano concluded. We are clearly on track to profitability. The entire Sensus Team is committed to realizing
Second Quarter Financial Results
Revenues for the second quarter of 2021 were $5.4
million compared with $1.2 million for the second quarter of 2020. The 358% increase was primarily driven by a higher number of units
sold in 2021, service revenue on installed units and the impact of COVID-19 on the second quarter of 2020.
Cost of sales for the second quarter of 2021 was
$2.1 million compared with $0.5 million for the prior-year quarter. The increase was due to higher sales in the 2021 period.
Gross profit for the second quarter of 2021 was
$3.3 million compared with $0.6 million for the second quarter of 2020. Gross margin for the second quarter of 2021 was 61.7% compared
with 54.1% for the prior-year quarter. The increase in gross margin was primarily driven by the higher number of units sold in 2021, service
revenue on installed units and the impact of COVID-19 on the 2020 quarter
Selling and marketing expense for the second quarter
of 2021 was $1.3 million compared with $1.2 million for the second quarter of 2020. The increase was primarily due to higher commission
expense offset by a reduction in headcount.
General and administrative expense for the second
quarter of 2021 was $1.4 million compared with $0.9 million for the second quarter of 2020. The increase was primarily due to higher legal
and professional fees, public company expenses and insurance costs.
Research and development expense for the second
quarter of 2021 was $0.9 million compared with $1.1 million for the prior-year quarter. The decrease was due to lower spending as the
Sculptura project entered the production phase during 2020.
Net loss for the second quarter of 2021 was $(0.3)
million, or $(0.02) per share, compared with a net loss of $(2.6) million, or $(0.16) per share, for the second quarter of 2020.
Adjusted EBITDA for the second quarter of 2021
was $(0.1) million compared with $(2.3) million in the second quarter of 2020. 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.
Cash and cash equivalents were $15.2 million as
of June 30, 2021, compared with $14.9 million as of December 31, 2020. The company had no long-term debt and no outstanding borrowings
under its revolving line of credit as of June 30, 2021.
Six Month Financial Results
Revenues for the first half of 2021 were $8.5
million compared with $2.9 million for the first half of 2020. The 197% increase was primarily driven by the higher number of units sold
in 2021, service revenue on installed units and the impact of COVID-19 in the six months of 2020.
Cost of sales was 3.6 million for the first half
of 2021, compared to $1.5 million for the six months ended June 30, 2020. The increase was due to higher sales in the 2021 period.
Gross profit for the first half of 2021 was $4.9
million, or 58.1% of revenue, compared with $1.3 million, or 47.1% of revenue, for the first half of 2020. The increase in gross profit
was primarily driven by the higher number of units sold in 2021, service revenue on installed units and the impact of COVID-19 in the
six months ended June 30, 2020.
Selling and marketing expense was $2.3 million
for the first half of 2021 compared with $3.0 million for the first half of 2020. The decrease was primarily attributable to a decrease
in tradeshows expense due to cancellations related to COVID-19, reduced marketing activities including travel and salary and benefit expenses
due to reduced headcount.
General and administrative expense was $2.4 million
year-to-date compared with $2.2 million for the prior-year period. The increase in general and administrative expense was primarily due
to higher legal and professional fees, public company expenses and insurance premium costs.
Research and development expense for the first
half of 2021 was $1.6 million compared with $2.4 million for the first half of 2020. The decrease in research and development spending
reflected lower spending as the Sculptura project entered production phase during 2020.
Net loss for the first half of 2021 was $(1.4)
million, or $(0.08) per share, compared with a net loss of $(6.2) million, or $(0.38) per share, for the first half of 2020.
Adjusted EBITDA for the first half of 2021 was
$(0.9) million compared with $(5.6) million in the first half of 2020.
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