Full Press Release Details
Healthcare Reports Third Quarter Financial Results Featuring Revenue up 44%
eighth consecutive quarter of double-digit year-over-year revenue growth
call begins at 4:30 p.m. Eastern time today
RATON, Fla. (November 2, 2017) - 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 nine months ended September 30, 2017.
of the third quarter of 2017 and recent weeks include (all comparisons are with the third quarter of 2016, unless otherwise noted):
Sensus team did a wonderful job during the quarter growing our revenues and expanding awareness for the advantages of SRT in treating
non-melanoma skin cancer and prevention of keloids," said Joe Sardano, chairman and chief executive officer of Sensus Healthcare.
"This was our eighth consecutive quarter of double-digit year-over-year revenue increases. We shipped 15 systems during
the quarter, and more than half of them were SRT-100 Vision systems, with its premium price point and additional features. Our
installed base has grown to 311, of which 70 are being used to prevent keloid scar recurrence in addition to treating skin cancer.
expanded presence at important medical conferences and trade shows has broadened awareness of SRT and Sensus and recent research
has garnered additional support. We are very pleased with the reception to poster presentations at both the ASDS Annual Meeting
and the Fall Clinical Dermatology Conference, which illustrated the low recurrence rate of keloids post-keloidectomy in conjunction
with SRT. Our sales clearly reflect the success of these efforts.
week, in conjunction with our partner Chindex Medical and following regulatory approval, we launched the SRT-100 in China for
the treatment and prevention of keloids, which is in addition to our previous Chinese launch for non-melanoma skin cancer. The
formal launch, which included a number of symposia and demonstrations with key opinion leaders and physicians already using our
system for keloids, occurred at the DASIL conference in Shanghai. We have renewed our distribution agreement with Chindex for
three years and look forward to working with our partner to expand our market share in China in the coming months."
Sardano concluded, "As has been the case throughout the year, our financial results reflect an increase in research and
development expenses to accelerate the introduction of new indications and new products during 2018. We expect R&D to continue
to be higher in the fourth quarter and into early 2018, as we continue our development work in intraoperative radiation therapy
for breast and other cancers."
Results for the Three Months Ended September 30, 2017
for the third quarter of 2017 increased 44% to $4.8 million, compared with $3.3 million for the third quarter of 2016. The increase
is attributable to an increase in units sold, in particular the SRT-100 Vision, which has a higher average selling price.
profit for the third quarter of 2017 was $3.2 million, or 67.1% of revenue, compared with $2.3 million, or 67.6% of revenue, for
the third quarter of 2016.
and marketing expense for the third quarter of 2017 was $1.8 million, compared with $1.1 million for the third quarter of 2016.
The increase was primarily attributable to higher sales headcount, increased participation in tradeshows and other marketing activities.
and administrative expense for the third quarter of 2017 was $0.84 million, compared with $0.79 million for the third quarter
of 2016. The increase was due primarily to higher professional fees and headcount.
and development expense for the third quarter of 2017 was $1.5 million, compared with $0.4 million for the third quarter of 2016,
reflecting increased spending on the development of new indications and new products.
net loss for the third quarter of 2017 was $1.0 million, or $0.07 per share, compared with a net loss of $0.03 million, or $0.00
per share, for the third quarter of 2016.
EBITDA for the third quarter of 2017 was a negative $0.8 million, compared with a positive $0.2 million for the third 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 equivalents and investments were $9.9 million as of September 30, 2017.
under the revolving line of credit were $1.6 million as of September 30, 2017. On October 31, we increased our line of credit
from $2 million to $5 million. The increased line includes a $2.5 million "non-formula" sublimit that will be available
even without eligible accounts receivable and will support our continued growth.
Results for the Nine Months Ended September 30, 2017
for the nine months ended September 30, 2017 increased 42% to $14.1 million, compared with $9.9 million for nine months ended
September 30, 2016. Gross profit for the nine months ended September 30, 2017 was $9.5 million, or 67.2% of revenue, compared
with $6.5 million, or 65.5% of revenue, for the nine months ended September 30, 2016. Selling and marketing expense was $6.2 million
for nine months ended September 30, 2017, compared with $3.2 million for the nine months ended September 30, 2016. General and
administrative expense was $2.8 million for nine months ended September 30, 2017, compared with $2.5 million for the nine months
ended September 30, 2016. Research and development expense for the nine months ended September 30, 2017 was $3.8 million, compared
with $1.1 million for the nine months ended September 30, 2016. The net loss for the nine months ended September 30, 2017 was
$3.3 million, or $0.25 per share, compared with a net loss of $0.4 million, or $0.03 per share, for the nine months ended September
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's 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
| SENSUS HEALTHCARE, INC. | ||||||||||||||||
| GAAP TO NON-GAAP RECONCILIATION | ||||||||||||||||
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
| 2017 | 2016 | 2017 | 2016 | |||||||||||||
| Net Loss, as reported | $ | (965,687 | ) | $ | (30,414 | ) | $ | (3,301,930 | ) | $ | (379,632 | ) | ||||
| Add: | ||||||||||||||||
| Depreciation and amortization | 103,383 | 84,282 | 294,906 | 253,219 | ||||||||||||
| Stock compensation expense | 102,431 | 123,083 | 303,465 | 625,422 | ||||||||||||
| Interest, net | 259 | (13,806 | ) | (16,001 | ) | (3,773 | ) | |||||||||
| Adjusted EBITDA, non GAAP | $ | (759,614 | ) | $ | 163,145 | $ | (2,719,560 | ) | $ | 495,236 |
Company will host an investment community conference call today at 4:30 p.m. Eastern time, during which management will discuss
financial results for the third quarter ended September 30, 2017, provide a business update and answer questions. To access the
conference call, the dial-in numbers are (844) 666-7589 (U.S. Toll Free) and (443) 961-0433 (International). All listeners should
provide the operator with the following conference ID: 1678917.
the conclusion of the conference call, a replay will be available through November 8, 2017 and can be accessed by dialing (855)
859-2056 (U.S. Toll Free) or (404) 537-3406 (International). All listeners should provide the operator with the following conference
ID: 1678917. The call will also be archived on the Company's website for a period of time at www.sensushealthcare.com.
press release includes statements that are, or may be deemed, forward-looking statements.'' In some
cases, these forward-looking statements can be identified by the use of forward-looking terminology, including the terms "believes,"
"estimates," "anticipates," "expects," "plans," "intends," "may,"
"could," "might," "will," "should," "approximately," "potential"
or, in each case, their negative or other variations thereon or comparable terminology, although not all forward-looking statements
contain these words.
their nature, forward-looking statements involve risks and uncertainties because they relate to events, competitive dynamics,
and healthcare, regulatory and scientific developments and depend on the economic circumstances that may or may not occur in the
future or may occur on longer or shorter timelines than anticipated. Although we believe that we have a reasonable basis for each
forward-looking statement contained in this press release, we caution you that forward-looking statements are not guarantees of
future performance and that our actual results of operations, financial condition and liquidity, and the development of the industry
in which we operate may differ materially from the forward looking statements contained in this press release, as a result of,
among other factors: our ability to achieve and sustain profitability; market acceptance of the SRT-100 product line; our ability
to successfully commercialize our products, including the SRT-100; our ability to compete effectively in selling our products
and services, including responding to technological change and cost containment efforts of our customers; our need and ability
to obtain additional financing in the future, as well as complying with the restrictions our existing revolving credit facility
imposes; our ability to expand, manage and maintain our direct sales and marketing organizations; our actual financial results
may vary significantly from forecasts and from period to period; our ability to successfully develop new products, improve or
enhance existing products or acquire complementary products, technologies, services or businesses; our ability to obtain and maintain
intellectual property of sufficient scope to adequately protect our products, including the SRT-100, and our ability to avoid
infringing or otherwise violating the intellectual property rights of third parties; market risks regarding consolidation in the
healthcare industry; the willingness of healthcare providers to purchase our products if coverage, reimbursement and pricing from
third party payors for procedures using our products significantly declines; the level and availability of government and third
party payor reimbursement for clinical procedures using our products; our ability to effectively manage our anticipated growth,
including hiring and retaining qualified personnel; the regulatory requirements applicable to us and our competitors; our ability
to manufacture our products to meet demand; our reliance on third party manufacturers and sole- or single-source suppliers; our