Full Press Release Details
Healthcare Reports Second Quarter 2023 Financial Results
call begins at 4:30 p.m. Eastern time today
RATON, Fla. (August 3, 2023) - 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, 2023.
from the second quarter of 2023 and recent weeks include the following:
of our customers depend on elective aesthetic procedures as a meaningful source of practice revenue and profit, and we are hearing encouraging
feedback that patient volumes and procedure mix are improving. Our second quarter financial results reflect that dynamic and strengthened
considerably compared with the first quarter," said Joe Sardano, chairman and chief executive officer of Sensus Healthcare. "We
expect to return to profitability in the second half of the year as these trends continue. In preparation, we continued to build inventory
and prepay for components.
expansion is an important strategic goal and we were delighted to enter into a new partnership with MIS Healthcare to distribute SRT
systems in the United Kingdom and British Isles. Prior to that engagement our internal sales staff had been working for several months
with Beacon Hospital in Dublin, and we were delighted to have installed an SRT unit there during recent weeks. We believe Ireland holds
excellent promise for SRT, with 600 people diagnosed with non-melanoma skin cancer each day. We also sold an SRT-100 System to a hospital
in Guatemala as we advance our efforts in Latin America.
plan is to enter three to four new territories over the coming years, and we are advancing this goal with sales to Southeast Asia
and Latin America, in addition to the UK and Ireland. We are regaining momentum in China now that pandemic lockdowns have been
lifted and shipped two SRT systems there during the second quarter, for a total of five shipments to Asia so far this
IT is our HIPAA-compliant software that stores patient data for multiple clinical purposes and will include artificial intelligence to
allow customers to better manage their practices and data. Sentinel IT is expected to play a key role in our growth, and during the quarter
we launched our Sentinel/Sensus Cloud capabilities at the American Academy of Dermatology Annual Meeting. We look forward to showcasing
Sentinel IT and our SRT products at local dermatology trade shows, as well as at the American Society for Radiation Oncology beginning
October 1st. Although the hospital market has a longer sales cycle, radiation oncology is a highly attractive opportunity
as their interest expands to skin cancer."
Sardano concluded, "With an estimated one in five Americans, or 70 million people expected to develop skin cancer during their
lifetime, SRT is the No. 1 choice for the non-invasive treatment of non-melanoma skin cancer. SRT treatments surpassed 480,000 in the
last two years alone and the ROI for our premium SRT system under our fair market value leasing program continues to be compelling, with
breakeven at only 2 to 2.5 patients per month. Surveys of Medicare show that SRT has experienced a 27% treatment growth rate year over
year for the past six years. If this growth utilization rate continues at its current pace, SRT will soon become the treatment of choice
for non-melanoma skin cancer. Accordingly, professional interest in SRT remains high, and we expect to meet our objectives of shipping
at least 60 SRT systems during 2023 and returning to profitability in the second half of the year."
Quarter Financial Results
for the second quarter of 2023 were $4.5 million, compared with $12.1 million for the second quarter of 2022. The decrease was primarily
due to a lower number of SRT units sold as customers continued to defer purchases, as well as to lower sales to a large customer.
of sales was $1.9 million for the second quarter of 2023, compared with $3.8 million for the prior-year quarter. The decrease was primarily
due to lower sales in the second quarter of 2023.
profit for the second quarter of 2023 was $2.6 million, or 57.9% of revenues, compared with $8.3 million, or 68.3% of revenues, for the
second quarter of 2022. The decrease was primarily due to the lower number of units sold and higher costs charged by vendors in the 2023
and marketing expense was $1.6 million for the second quarter of 2023, compared with $1.7 million for the prior-year quarter. The decrease
was primarily attributable to a decrease in marketing initiatives and commissions, partially offset by an increase in headcount costs.
and administrative expense was $1.3 million for the second quarter of 2023, compared with $1.1 million for the second quarter of 2022.
The increase was primarily due to higher professional fees, offset by a reduction in insurance expense.
and development expense was $0.8 million for the second quarter of 2023, unchanged from the comparable 2022 period.
income of $0.2 million for the second quarter of 2023 was related to interest income.
loss for the second quarter of 2023 was $0.4 million, or $0.02 per share, compared with net income of $3.5 million, or $0.21 per diluted
share, for the second quarter of 2022.
EBITDA for the second quarter of 2023 was negative $1.0 million, compared with positive $4.7 million for the second quarter of 2022.
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 reasons these non-GAAP financial
measures are provided.
and cash equivalents were $20.1 million as of June 30, 2023, compared with $25.5 million as of December 31, 2022. The Company had no
outstanding borrowings under its revolving line of credit as of June 30, 2023 or December 31, 2022. Prepaid and other current assets
were $8.1 million as of June 30, 2023, compared with $6.9 million as of December 31, 2022. Inventories were $10.1 million as of June
30, 2023, compared with $3.5 million as of December 31, 2022, with the increase reflecting the Company's expectations for higher
unit sales during the second half of the year.
Month Financial Results
were $7.9 million for the first half of 2023, compared with $22.4 million for the first half of 2022, reflecting a lower number of units
of sales was $3.7 million for the first half of 2023, compared with $7.0 million for the first half of 2022. The decrease was primarily
related to lower sales in the first half of 2023.
profit was $4.2 million for the first half of 2023, or 53.4% of revenues, compared with $15.4 million, or 68.7% of revenues, for the
first half of 2022. The decrease in gross profit was primarily driven by the lower number of units sold and higher costs charged by vendors
in the first half of 2023.
and marketing expense was $3.7 million for the first half of 2023, compared with $2.9 million for the first half of 2022. The increase
was primarily attributable to an increase in tradeshow expense and headcount costs, partially offset by a decrease in commissions.
and administrative expense was $2.7 million for the first half of 2023, compared with $2.4 million for the first half of 2022. The increase
was primarily due to higher professional fees, offset by a reduction in insurance expense.
and development expense was $1.9 million for the first half of 2023, compared with $1.6 million for the first half of 2022. The increase
was primarily due to expenses related to a project to develop a drug-delivery system for aesthetic use. The Company expects to complete
this project by the end of 2023.
income of $0.5 million for the first half of 2023 was related to interest income. Other income of $12.8 million for the first half of
2022 was related to the gain on the sale of a non-core asset.
loss for the first half of 2023 was $2.3 million, or $0.14 per share, compared with net income of $19.6 million, or $1.17 per diluted
share, for the first half of 2022. Net income for the 2022 period includes a $12.8 million gain on the sale of a non-core asset.
EBITDA for the first half of 2023 was negative $3.7 million, compared with positive $21.5 million for the first half of 2022.
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 the Company's 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.
TO NON-GAAP RECONCILIATION
| For the Three Months Ended | For the Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| (in thousands) | 2023 | 2022 | 2023 | 2022 | ||||||||||||
| Net income, as reported | $ | (380 | ) | $ | 3,524 | $ | (2,274 | ) | $ | 19,586 | ||||||
| Add: | ||||||||||||||||
| Depreciation and amortization | 84 | 74 | 155 | 166 | ||||||||||||
| Stock compensation expense | 67 | 40 | 209 | 97 | ||||||||||||
| Income tax expense (benefit) | (502 | ) | 1,070 | (1,303 | ) | 1,718 | ||||||||||
| Interest income, net | (245 | ) | (24 | ) | (488 | ) | (27 | ) | ||||||||
| Adjusted EBITDA, non GAAP | $ | (976 | ) | $ | 4,684 | $ | (3,701 | ) | $ | 21,540 |
Healthcare 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 2023 second quarter, provide a business update and answer questions. To access the conference call, dial 844-481-2811
(U.S. and Canada Toll Free) or 412-317-0676 (International). The call will be webcast live and can be accessed at this link, or in the
Investors section of the Company's website at www.sensushealthcare.com.
the conclusion of the conference call, a replay will be available until September 3, 2023 and can be accessed by dialing 877-344-7529
(U.S. Toll Free), 855-669-9658 (Canada Toll Free) or 412-317-0088 (International), using replay code 1356425. An archived webcast of
the call will also be available in the Investors section of the Company's website.
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. Sensus offers its proprietary low-energy X-ray technology known as superficial radiation
therapy (SRT), which is the culmination of more than a decade of research and development, to treat non-melanoma skin cancers and keloids
with its SRT-100 , SRT-100+ and SRT-100 Vision systems. With its portfolio of innovative
medical device products, including aesthetic lasers and its needleless TransDermal Infusion System , Sensus provides