Sensus Healthcare Reports Third Quarter

Sensus Healthcare Reports Third Quarter

2019 Financial Results

Conference call begins

at 4:30 p.m. Eastern time today

BOCA RATON, Fla. (November 6, 2019)

- 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, 2019.

Highlights from the third quarter of 2019

and recent weeks include:

Management Commentary

"The third quarter and recent weeks were

highlighted by our launch of Sculptura at major medical conferences, as we took important initial steps to build awareness for

the capabilities of this important product," said Joe Sardano, Sensus Healthcare's chairman and chief executive officer.

"We had a larger presence at this year's ASTRO trade show, the foremost meeting of radiation oncologists that took

place in September, and were delighted with the interest shown by potential customers. Prior to that, our showcasing of Sculptura

at the AAPM meeting and at the American Brachytherapy Society's Annual Meeting generated excitement among physicians and

physicists for its new features and technology. We are very pleased with the work of our oncology team and the interest being generated

in this recently approved product."

"Our research agreement with the Perelman

School of Medicine at the University of Pennsylvania is moving forward as planned, with patient treatments set to begin by the

first quarter of 2020. This research will support Sculptura marketing and help expand the indications for use in late 2020 and

beyond. We continue to work with leading academic hospitals to place Sculptura and expect up to three more systems to be sold by

the end of the year.

"Earlier this year Sensus was notified

that SRT was added to Premier's group purchasing contracts effective August 1, 2019 for the Oncology market. Premier has

4,000 member hospitals and health systems throughout the U.S., and we have begun making inroads. Premier represents a fruitful

"We continued our efforts to improve

CMS reimbursement for SRT and have been actively engaged to push for a revaluation of our main code, 77401. While CMS has made

public that this code is due for revaluation based on current criteria, the agency is sticking to revalue by 2021 as they have

previously declared. Our expectation is that a new rate will be set for 2021 and we expect to know that rate this time next year.

The anticipated higher rate should accelerate future SRT-100+ and Vision sales in the U.S. as it will provide much needed clarity

"We continued to invest in sales and

marketing, and exhibited our SRT systems for the treatment of keloids and non-melanoma skin cancer at several regional dermatology

trade shows. During the quarter, our SRT-100+ was featured on a popular dermatology cable TV program, where a young woman's

keloids were treated successfully on-air. We expect the SRT-100+ to continue to be featured on this show, which is hosted by Dr.

Sandra Lee. The show should support continued exposure for SRT to treat keloids, particularly given a recent clinical study showing

just a 3% recurrence rate after surgery and SRT.

"We shipped 14 Vision systems and 2 SRT-100s

during the quarter. We also began shipments of SRT-100+ systems to a large dermatology practice in a shared-revenue program,"

"Our international results were mixed.

While we received clearance from Korea and regulatory approvals in new large markets including Brazil and India are in process,

our sales efforts in China have not gone as planned and impacted Q3 revenues. The current geopolitical upheaval with China has

temporarily cooled our expectations for that market, but we are optimistic that the U.S. and China will soon reach an agreement

to resolve the current trade dispute.

"Our fourth quarter revenues have historically

been the highest of the year, and we expect this trend to continue in 2019. While our dermatology market is fairly consistent,

we do expect the oncology market to pick up with a few shipments of Sculptura to key University research hospitals," he

Third Quarter Financial Results

Revenues for the third quarter of 2019 were

$5.8 million, compared with $6.3 million for the third quarter of 2018. The decrease was attributable to fewer unit sales. There

were no international sales in the quarter and there was a delay of Sculptura orders which are forthcoming.

Gross profit for the third quarter of 2019

was $3.8 million, or 65.8% of revenues, compared with $4.2 million, or 65.8 % of revenues, for the third quarter of 2018.

Selling and marketing expense for the third

quarter of 2019 was $2.1 million, up slightly from $2.0 million in the third quarter of 2018. The increase was mostly attributable

to an increase in headcount and marketing to support the launch of Sculptura.

General and administrative expense for

the third quarter of 2019 was $0.96 million, compared with $0.91 million for the third quarter of 2018.

Research and development expense for the

third quarter of 2019 was $1.6 million, compared with $1.7 million for the third quarter of 2018. The decrease was mainly due to

lower expenses related to Sculptura as we are moving from R&D to production.

The net loss for the third quarter of 2019

was $(0.7) million, or $(0.04) per share, compared with a net loss of $(0.5) million, or $(0.03) per share, for the third quarter

Adjusted EBITDA for the third quarter of

2019 was $(0.5) million, compared with $(0.1) million for the third quarter of 2018. Adjusted EBITDA 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 investments were $14.9 million

as of September 30, 2019, compared with $15.4 million as of December 31, 2018. The company had no long-term debt and no outstanding

borrowings on its revolving line of credit as of September 30, 2019.

Nine Month Financial Results

Revenues for the nine months ended September

30, 2019 were $18.8 million, compared with $18.3 million for the nine months ended September 30, 2018. Gross profit for the first

nine months of 2019 was $12.1 million, or 64.5% of revenue, compared with $12.1 million, or 65.7% of revenue, for the same period

Selling and marketing expense was $6.7

million for the nine months ended September 30, 2019, compared with $6.1 million for the year-ago period. General and administrative

expense was $2.9 million year-to-date, compared with $3.2 million for the prior-year period. Research and development expense for

the nine months ended September 30, 2019 was $5.5 million, compared with $4.8 million for the prior-year period.

The net loss for the nine months ended

September 30, 2019 was $(2.7) million, or $(0.17) per share, compared with a net loss of $(2.1) million, or $(0.16) per share,

for the nine months ended September 30, 2018.

Adjusted EBITDA for the first nine months

of 2019 was $(2.1) million, compared with $(0.8) million for the first nine months of 2018.

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 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

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