Full Press Release Details
Sensus Healthcare Second Quarter 2022 Financial
Results Feature Revenue
Diluted EPS of $0.21 compares with $(0.02)
for the year-ago quarter
Affirms expectations for full-year profitability
Conference call begins at 4:30 p.m.
BOCA RATON, Fla. (August 4, 2022) - 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, 2022.
Highlights from the second quarter of 2022 and
recent weeks include the following (all comparisons are with the second quarter of 2021, unless otherwise indicated):
Management Commentary
"I'm delighted with our continued
strong financial performance, with significant year-over-year revenue growth and continued profitability," said Joe Sardano, chairman
and chief executive officer of Sensus Healthcare. "We remain focused on our core dermatology business, building upon the initiatives
we put in place during the past two years, leveraging improved reimbursement for superficial radiation therapy to treat non-melanoma skin
cancers and keloids, offering an attractive fair value lease program to physician customers, maintaining an active presence at dermatology
conferences and trade shows and, most recently, implementing a new marketing campaign that includes both digital and television platforms.
More than half our customers have purchased premium-featured SRT-100 Vision systems under a leasing agreement, while approximately
80% of systems coming off a one-year warranty continue with a service agreement, providing a significant source of recurring revenue.
"The launch of our TransDermal Infusion
System is going very well and generating significant interest among potential customers who recognize its ability to eliminate
injections. The system permits many procedures to be less painful for patients, and interest is particularly high for aesthetic facial
procedures, hair growth and hyperhidrosis treatments. As validation of its utility, we took orders to deliver 10 systems to Hair Enhancement
Centers. HEC currently operates nine centers and we plan to support their expansion plans. Two systems will be delivered in this year's
third quarter with the remainder in the fourth quarter. In addition, work to study the delivery of finasteride is underway by Dr. Glynis
Ablon of the Ablon Skin Institute and Research Center and Associate Clinical Professor at UCLA."
Mr. Sardano concluded, "Of note, we believe
the treatment of non-melanoma skin cancer is not impacted by geopolitical and economic uncertainty. Sensus is executing our business plan
as anticipated, with an organization fully dedicated to the success of Sensus and our customers."
Second Quarter Financial Results
Revenues for the second quarter of 2022 were $12.1
million, compared with $5.4 million for the second quarter of 2021. The 124% increase was primarily driven by a higher number of units
sold, increased service revenue and the impact of COVID-19 on second quarter 2021 results.
Cost of sales for the second quarter of 2022 was
$3.8 million, compared with $2.1 million for the prior-year quarter. The increase was due to higher sales in the 2022 period.
Gross profit for the second quarter of 2022 was
$8.3 million, or 68.6% of revenues, compared with $3.3 million, or 61.1% of revenues, for the second quarter of 2021. The increases were
primarily driven by a higher number of units sold in 2022, service revenue on installed units, and the impact of COVID-19 on second quarter
Selling and marketing expense for the second quarter
of 2022 was $1.7 million, compared with $1.3 million for the second quarter of 2021. The increase was primarily attributable to higher
tradeshow expense and, advertising expense and commissions, offset by a decline in other marketing expenses.
General and administrative expense for the second
quarter of 2022 was $1.1 million, compared with $1.4 million for the second quarter of 2021. The decrease was primarily due to higher
legal and professional fees in 2021.
Research and development expense for the second
quarter of 2022 was $0.8 million, compared with $0.9 million for the prior-year second quarter.
Provision for income taxes was $1.1 million for
the second quarter of 2022, compared with no income tax provision for the prior-year second quarter.
Net income for the second quarter of 2022 was
$3.5 million, or $0.21 per diluted share, compared with a net loss of $(0.3) million, or $(0.02) per share, for the second quarter of
Adjusted EBITDA for the second quarter of 2022
was $4.7 million, compared with $(0.1) million for the second quarter of 2021. 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 $33.7 million
as of June 30, 2022, compared with $14.5 million as of December 31, 2021. The company had no outstanding borrowings under its
revolving line of credit as of June 30, 2022 or December 31, 2021.
During the second quarter of 2022, the Company
repurchased 126,523 shares of common stock at prices ranging from $7.46 to $8.36, for a total of $1.0 million.
Six Month Financial Results
Revenues for the first half of 2022 were $22.4
million, compared with $8.5 million for the first half of 2021. The 164% 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 first half 2021 results.
Cost of sales was $7.0 million for the first half
of 2022, compared with $3.6 million for the first half of 2021. The increase was commensurate with higher sales in the 2022 period.
Gross profit for the first half of 2022 was $15.4
million, or 68.8% of revenue, compared with $4.9 million, or 57.6% of revenue, for the first half of 2021. The increases were primarily
driven by a higher number of units sold in 2022, service revenue on installed units, and the impact of COVID-19 on first half 2021 results.
Selling and marketing expense was $2.9 million
for the first half of 2022, compared with $2.3 million for the first half of 2021. The increase was primarily attributable to higher tradeshow
expense and, advertising expense and commissions, offset by a decline in other marketing expenses.
General and administrative expense was $2.4 million
for the first half of 2022, unchanged from the prior-year period.
Research and development expense for the first
half of 2021 was $1.6 million, unchanged from the first half of 2021.
Net income for the first half of 2022 was $19.6
million, or $1.17 per diluted share, compared with a net loss of $(1.4) million, or $(0.08) per share, for the first half of 2021. Net
income for the 2022 period includes a $12.8 million gain on the sale of a non-core asset during the first quarter of 2022.
Adjusted EBITDA for the first half of 2022 was
$21.5 million, compared with $(0.9) million for the first half of 2021.
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
SENSUS HEALTHCARE, INC.
GAAP TO NON-GAAP RECONCILIATION
| For the Three Months Ended | For the Six MOnths Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| (in thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||||||
| Net income (loss), as reported | $ | 3,524 | $ | (279 | ) | $ | 19,586 | $ | (1,394 | ) | ||||||
| Add: | ||||||||||||||||
| Depreciation and amortization | 74 | 136 | 166 | 345 | ||||||||||||
| Stock compensation expense | 40 | 59 | 97 | 120 | ||||||||||||
| Income Tax | 1,070 | - | 1,718 | - | ||||||||||||
| Interest, net | (24 | ) | - | (27 | ) | - | ||||||||||
| Adjusted EBITDA, non GAAP | $ | 4,684 | $ | (84 | ) | $ | 21,540 | $ | (929 | ) |
Conference Call and Webcast
Sensus 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 second quarter
of 2022, provide a business update and answer questions. To access the conference call, please dial 888-390-3967 (U.S. and Canada) or
862-298-0702 (International). Please direct the operator to be connected to the Sensus Healthcare conference call. The call will be webcast