Full Press Release Details
Sensus Healthcare Reports Third Quarter 2021
Achieves profitability on revenues of $5.5
million, up sharply from $1.6 million a year ago
Affirms expectations for continued growth
in 4Q and full-year profitability
Conference call begins at 4:30
p.m. Eastern time today
BOCA RATON, Fla. (November 4, 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 nine months
ended September 30, 2021.
Highlights from the third quarter of 2021 and
recent weeks include the following (all comparisons are with the third quarter of 2020, unless otherwise indicated):
Management Commentary
"The third quarter and subsequent weeks
featured several encouraging events that bode well for continued sales growth, not only in the fourth quarter but through 2022,"
said Joe Sardano, chairman and chief executive officer of Sensus Healthcare. "We reported our first profitable third quarter in
our company's history, and based on a robust backlog of orders we believe Sensus will report positive net income for 2021.
"Our domestic business is significantly
improved compared with the pandemic-impacted third quarter of 2020, with 14 systems shipped including eight premium SRT-100 Vision
systems. We are highly encouraged by the reception our new fair-market-leasing program has received to date. Our physician customers are
beginning to take advantage of this offering and its ability to provide a positive ROI for the SRT-100 Vision by treating just two patients
per month. In addition, our organization has done an excellent job in articulating the improved CMS reimbursement rates that went into
effect at the start of the year, along with the benefits of SRT to a growing number of physicians. This has led to improved patient volumes
at customer sites, as well.
"Our SRT systems were well received at last
month's Fall Clinical held live in Las Vegas and virtually. This conference provided the opportunity for us to demonstrate our technology
in person for the first time in more than 18 months, and interest in our products and the number of new sales leads both were strong.
In addition, conference presentations on the safety and efficacy of SRT, and discussions of improved reimbursement by key opinion leaders
supported our presence."
Mr. Sardano continued, "International sales
continue to be promising, in particular in China where we engaged a new distribution partner, Ekpac Healthcare, late last year. During
the third quarter we sold an SRT-100 system in China, our sixth of the year. We expect to sell additional systems in China in the coming
months. Importantly, the Chinese Health Authority renewed our license to market the SRT-100 system for an additional five years.
This new license runs through December 2026 and covers the sale of the Company's superficial radiation therapy to treat non-melanoma
skin cancer and keloids.
"Our acquisition of mobile aesthetic laser
companies in Florida last year and the formation of Sensus Laser Aesthetic Solutions (SLAS) were smart steps to increase our customer
base, provide a beachhead for further acquisitions and improve access to laser technology. The integration of our Sentinel IT Solutions
software into our proprietary lasers is complete, and these lasers are now available through SLAS. We implemented creative leasing options
for our lasers and believe the combination of Sentinel technology - which provides asset management and HIPAA-compliant patient
data and storage capability, and also contains the software to support shared service models including direct patient billing -
is an important avenue for growth."
Mr. Sardano concluded, "The resumption of
significant sales following peak pandemic months, along with a keen focus on expenses position Sensus for a profitable fourth quarter
Third Quarter Financial Results
Revenues for the third quarter of 2021 were $5.5
million compared with $1.6 million for the third quarter of 2020. The 244% 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 third quarter of 2020.
Cost of sales for the third quarter of 2021 was
$2.3 million compared with $0.9 million for the prior-year quarter. The increase was due to higher sales in the 2021 period.
Gross profit for the third quarter of 2021 was
$3.2 million, or 57.9% of revenues, compared with $0.7 million, or 41.5% of revenues, for the third quarter 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
on the 2020 quarter.
Selling and marketing expense for the third quarter
of 2021 was $1.2 million compared with $1.0 million for the third quarter of 2020. The increase was primarily due to higher commission
General and administrative expense for the third
quarter of 2021 was $1.1 million compared with $1.0 million for the third quarter of 2020. The increase was primarily due to higher stock-compensation
Research and development expense for the third
quarter of 2021 was $0.7 million compared with $0.9 million for the prior-year quarter. The decrease was due to lower spending as the
Sculptura project entered the production phase during 2020.
No other income was reported for the third quarter
of 2021 compared with other income of $0.6 million for the third quarter of 2020, which was attributable to a bargain purchase gain recorded
as a result of an acquisition.
Net income for the third quarter of 2021 was $0.2
million, or $0.01 per diluted share, compared with a net loss of $(1.7) million, or $(0.10) per share, for the third quarter of 2020.
Adjusted EBITDA for the third quarter of 2021
was $0.5 million compared with $(1.5) million in the third 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 $16.4 million as
of September 30, 2021 compared with $14.9 million as of December 31, 2020. The company had no long-term debt and $0.1 million in outstanding
borrowings under the COVID-19 Paycheck Protection Program as of September 30, 2021.
Nine Month Financial Results
Revenues for the first nine months of 2021 were
$14.0 million compared with $4.5 million for the first nine months of 2020. The 211% 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 first nine months of 2020.
Cost of sales was $5.9 million for the first nine
months of 2021 compared with $2.5 million for the first nine months of 2020. The increase was due to higher sales in the 2021 period.
Gross profit for the first nine months of 2021
was $8.1 million, or 58.0% of revenues, compared with $2.0 million, or 45.1% of revenues, for the first nine months 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 first nine months of 2020.
Selling and marketing expense was $3.5 million
for the first nine months of 2021 compared with $4.0 million for the first nine months of 2020. The decrease was primarily attributable
to lower tradeshow expense due to cancellations related to COVID-19, reduced marketing activities including travel and lower salary and
benefit expenses due to reduced headcount, partially offset by an in increase in commission expense.
General and administrative expense was $3.5 million
year-to-date, compared with $3.2 million for the prior-year period. The increase was primarily due to higher legal and professional fees,
public company expenses and insurance premium costs.
Research and development expense for the first
nine months of 2021 was $2.3 million compared with $3.3 million for the first nine months of 2020. The decrease reflected lower spending
as the Sculptura project entered production phase during 2020.
No other income was reported for the first nine
months of 2021 compared with other income of $0.6 million for the first nine months of 2020, which was attributable to a bargain purchase
gain recorded as a result of an acquisition.
Net loss for the first nine months of 2021 was
$(1.2) million, or $(0.07) per share, compared with a net loss of $(7.9) million, or $(0.48) per share, for the first nine months of 2020.
Adjusted EBITDA for the first nine months of 2021