Full Press Release Details
Sensus Healthcare Reports Third Quarter 2024
Financial Results With Revenues More than Doubling Versus 2023 Third Quarter
call begins at 4:30 p.m. Eastern time today
RATON, Fla. (November 14, 2024) - 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 skin conditions, announces financial
results for the three and nine months ended September 30, 2024.
from the third quarter of 2024 and recent weeks include the following:
"Continued growth in revenues and earnings
reflects our success in engaging customers with both existing and new sales options. Our revenues more than doubled year-over-year for
the second consecutive quarter, and we maintained profitability despite the summer seasonality of our business," said Joe Sardano,
chairman and chief executive officer of Sensus Healthcare. "Our revenue-sharing Fair Deal Agreement, which allows customers to deploy
capital elsewhere in their businesses, continues to attract significant attention. Since our launch at the American Academy of Dermatology
meeting in March, we signed 22 agreements as of September 30th. In addition, the signing of an agreement with Platinum Dermatology
Partners, a rapidly-growing network of 130 dermatology clinics, is a major step forward. We believe this is the first of many such groups
to consider the Fair Deal Agreement."
Commenting on the agreement, Anthony Petelin,
M.D., president of Platinum Dermatology Partners, said, "I'm incredibly excited for Platinum Dermatology Partners to enter
into this expanded services agreement with Sensus Healthcare, with support from Sensus' outstanding team. This agreement enables us to
broaden access to SRT for our patients, reinforcing the exceptional, highest-quality dermatologic care that is our hallmark. Over the
years, SRT has proven itself to be an integral part of a comprehensive treatment plan, primarily for those diagnosed with non-melanoma
Mr. Sardano added, "With the Platinum Fair
Deal Agreement, we have exceeded our goal of having up to 50 Fair Deal Agreements signed by the end of 2024, and we expect to be generating
recurring revenue from these SRT-100 Vision (IG-SRT) systems in 2025. Given the growing utilization of SRT to treat non-melanoma skin
cancer and keloid scars, and the interest we have generated to date, we expect this model to contribute to our growth for years to come.
This model would not be possible without Sentinel IT, our proprietary HIPAA-compliant software with clinical billing and asset management
utility that also allows us to track utilization in real time. We believe this intellectual property is a very valuable asset to Sensus."
Mr. Sardano concluded, "The market for non-melanoma
skin cancer treatments is enormous, with an estimated one in five Americans developing skin cancer during their lifetime, representing
some 70 million people. Globally, more than 1.2 million people develop non-melanoma skin cancer annually. Clearly SRT is becoming the
people's choice' on how they wish to be treated."
Third Quarter Financial Results
Revenues for the third quarter of 2024 were $8.8
million, compared with $3.9 million for the third quarter of 2023, an increase of $4.9 million, or 127%. The increase was primarily driven
by a higher number of SRT systems sold to a large customer.
Cost of sales was $3.6 million for the third quarter
of 2024, compared with $1.9 million for the prior-year quarter. The increase was primarily related to a higher number of units sold in
Gross profit was $5.2 million for the third quarter
of 2024, or 59.3% of revenues, compared with $2.0 million, or 51.0% of revenues, for the third quarter of 2023. The increase was primarily
driven by the higher number of units sold in the 2024 quarter.
Selling and marketing expense was $1.3 million
for the third quarter of 2024, unchanged from the third quarter of 2023.
General and administrative expense was $1.6 million
for the third quarter of 2024, compared with $1.5 million for the third quarter of 2023. The increase was primarily due to higher compensation
and bad debt expense, which were offset by a reduction in bank fees.
Research and development expense was $0.9 million
for the third quarter of 2024, compared with $1.1 million for the third quarter of 2023. The decrease was primarily due to expenses, mostly
incurred in the 2023 quarter, related to a project to develop a drug delivery system for aesthetic use.
Other income of $0.3 million for the third quarter
of 2024 was mostly related to interest income, and was unchanged from the prior-year quarter.
Net income for the third quarter of 2024 was $1.2
million, or $0.07 per diluted share, compared with a net loss of $1.5 million, or $0.09 per share, for the third quarter of 2023.
Adjusted EBITDA for the third quarter of 2024
was $1.6 million, compared with negative $1.7 million for the third quarter of 2023. 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.
Cash and cash equivalents were $22.6 million as
of September 30, 2024, compared with $23.1 million as of December 31, 2023. The Company had no outstanding borrowings under its revolving
line of credit. Accounts receivable were $17.0 million as of September 30, 2024, compared with $10.6 million as of December 31, 2023,
with the increase reflecting the increase in sales and concentration of sales to a large customer that is subject to extended payment
Nine Month Financial Results
Revenues for the nine months ended September 30,
2024 were $28.7 million, compared with $11.8 million for the nine months ended September 30, 2023, an increase of $16.9 million, or 143%.
The increase was primarily driven by a higher number of units sold to a large customer.
Cost of sales was $11.4 million for the nine months
ended September 30, 2024, compared with $5.6 million for the nine months ended September 30, 2023. The increase was primarily related
to higher sales in the 2024 period.
Gross profit was $17.3 million, or 60.3% of revenues,
for the nine months ended September 30, 2024, compared with $6.2 million, or 52.6% of revenues, for the nine months ended September 30,
2023. The increase was primarily driven by a higher number of units sold in the 2024 period.
Selling and marketing expense was $3.6 million
for the nine months ended September 30, 2024, compared with $5.0 million for the nine months ended September 30, 2023. The decrease was
primarily attributable to a decline in marketing agency expense, travel expense and lower headcount.
General and administrative expense was $4.7 million
for the nine months ended September 30, 2024, compared with $4.2 million for the nine months ended September 30, 2023. The increase was
primarily due to higher compensation and bad debt expense, which were offset by a reduction in bank fees and insurance expense.
Research and development expense was $2.7 million
for the nine months ended September 30, 2024, compared with $3.0 million for the nine months ended September 30, 2023. The decrease was
primarily due to a project to develop a drug delivery system for aesthetic use.
Other income of $0.7 million and $0.8 million
for the nine months ended September 30, 2024 and 2023, respectively, relates primarily to interest income.
Net income for the nine months ended September
30, 2024 was $5.1 million, or $0.31 per diluted share, compared with a net loss of $3.7 million, or $0.23 per share, for the nine months
ended September 30, 2023.
Adjusted EBITDA for the nine months ended September
30, was $6.7 million, compared with negative $5.4 million for the nine months ended September 30, 2023.
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 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.
SENSUS HEALTHCARE, INC.
GAAP TO NON-GAAP RECONCILIATION
| For the Three Months Ended | For the Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| (in thousands) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net income (loss), as reported | $ | 1,215 | $ | (1,451 | ) | $ | 5,101 | $ | (3,725 | ) | ||||||
| Add: | ||||||||||||||||
| Depreciation and amortization | 53 | 60 | 154 | 216 | ||||||||||||
| Stock compensation expense | 45 | 67 | 201 | 276 | ||||||||||||
| Income tax expense (benefit) | 559 | (125 | ) | 1,965 | (1,428 | ) | ||||||||||
| Interest income, net | (279 | ) | (277 | ) | (702 | ) | (764 | ) | ||||||||
| Adjusted EBITDA, non GAAP | $ | 1,593 | $ | (1,726 | ) | $ | 6,719 | $ | (5,425 | ) |