Full Press Release Details
Healthcare Second Quarter Financial Results Feature Continued Strong Revenue Growth
21 systems including 12 SRT-100 Vision systems
call begins at 4:30 p.m. Eastern time today
RATON, Fla. (August 2, 2018) - 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 six months ended June 30, 2018.
from the second quarter of 2018 and recent weeks include:
the second quarter we continued to execute very well on our business plan, once again posting double-digit year-over-year
revenue growth, expanding our distribution network and making further investments in research and development, including for
Intraoperative Radiation Therapy (IORT) development as well as our laser business," said Joe Sardano, Chairman and
Chief Executive Officer of Sensus Healthcare. "The use of image-guided superficial radiation is receiving
increased attention from key opinion leaders, and I am very pleased with our efforts to highlight the non-invasive and
efficacious attributes of SRT systems, in particular the SRT-100 Vision, and note that we now have several multi-center
dermatology practices among our customers."
Sardano added, "In anticipation of growth from new products and new markets, during the second quarter we made some
key leadership hires while reinforcing our focus on international growth. Dr. Isabelle Raymond joined Sensus as Vice
President - Clinical Development to spearhead our new dermatology and aesthetic medicine products and to build and lead
our clinical and scientific programs. We added Rita Gable as Vice President of Sales - Oncology to accelerate the sales
of SRT to the Oncology market and to lead the introduction of IORT into the U.S. market, upon regulatory approval. We hope to
receive clearance from the FDA by the end of the year. We have been preparing the market by commencing discussions with key
opinion leaders. These hires have freed Rick Golin, Executive Vice President of International Sales, to focus on the
worldwide market for our products. We have already signed new distribution agreements for multiple markets in Europe, Asia
and Latin America. In addition, we joined with CellMark Medical to help with global distribution beyond our existing reach,
and have already sold our first system under this agreement."
Sardano added, "We completed manufacturing of the first units of the recently FDA cleared SRT-100 Plus , which expands
the energy range and includes Grenz rays used in the treatment of psoriasis. Our research studies in psoriasis are ongoing, and
the results are expected to form the basis for marketing to physicians.
are very excited about the opportunities ahead of Sensus during the second half of 2018. While we are managing our operating
expenses carefully, our plans call for continued investment in research and development that we expect to drive growth in
2019 and beyond," Mr. Sardano concluded.
Results for the Three Months Ended June 30, 2018
for the second quarter of 2018 increased 22% to $6.1 million, compared with $5.0 million for the second quarter of 2017. The increase
is attributable to a higher number of units sold.
profit for the second quarter of 2018 was $3.9 million, or 65.1% of revenue, compared with $3.4 million, or 68.7% of revenue,
for the second quarter of 2017. The decrease in gross margin percentage was mainly due to lower average selling prices, as well
and marketing expense for the second quarter of 2018 was $2.0 million, compared with $2.1 million for the second quarter of 2017.
and administrative expense for the second quarter of 2018 was $0.9 million, largely unchanged from $0.9 million for the second
and development expense for the second quarter of 2018 was $1.6 million, compared with $1.2 million for the second quarter of
2017. The increase was due to the ongoing IORT project, along with additional product development in the Company's new research
net loss for the second quarter of 2018 was $(0.5) million, or $(0.04) per share, compared with a net loss of $(0.8) million,
or $(0.12) per share, for the second quarter of 2017.
EBITDA for the second quarter of 2018 was $(0.2) million, compared with $(0.6) million for the second quarter of 2017. 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 $8.0 million as of June 30, 2018.
Results for the Six Months Ended June 30, 2018
for the first half of 2018 increased 29% to $12.0 million, compared with $9.3 million for the first half of 2017. Gross profit
for the first half of 2018 was $7.9 million, or 65.6% of revenue, compared with $6.3 million, or 67.2% of revenue, for the first
and marketing expenses were $4.2 million for the first half of 2018, compared with $4.4 million for the first half of 2017. General
and administrative expenses were $2.3 million year-to-date, compared with $2.0 million for the prior-year period. General and
administration expenses for the six months ended June 30, 2018 include $0.4 million stock-based compensation expense related to
stock grants in the first quarter of 2018. Research and development expenses for the first half of 2018 were $3.1 million, compared
with $2.3 million for the first half of 2017.
net loss for the first half of 2018 was $(1.7) million, or $(0.12) per share, compared with a net loss of $(2.3) million, or $(0.18)
per share, for the first half of 2017.
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 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.
GAAP TO NON-GAAP RECONCILIATION
| For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||
| 2018 | 2017 | 2018 | 2017 | |||||||||||||
| Net Income (Loss), as reported | $ | (540,651 | ) | $ | (1,729,072 | ) | $ | (1,666,563 | ) | $ | (2,336,243 | ) | ||||
| Add: | ||||||||||||||||
| Depreciation and amortization | 132,969 | 97,367 | 233,503 | 191,524 | ||||||||||||
| Stock compensation expense | 142,416 | 96,962 | 680,453 | 201,034 | ||||||||||||
| Interest, net | 41,921 | (1,738 | ) | 53,314 | (16,281 | ) | ||||||||||
| Adjusted EBITDA, non GAAP | $ | (223,345 | ) | $ | (1,536,481 | ) | $ | (699,293 | ) | $ | (1,959,966 | ) |
Company 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 2018 second quarter, provide a business update and answer questions. To access the conference
call, the dial-in numbers are 855-940-9473 (U.S. Toll Free), 412-317-5220 (International) and 855-669-9657 (Canada Toll Free).
Please direct the operator to be connected to the Sensus Healthcare call.
the conclusion of the conference call, a replay will be available through August 9, 2018 and can be accessed by dialing 877-344-7529
(U.S. Toll Free), 412-317-0088 (International) and 855-669-9658 (Canada Toll Free). All listeners should provide the following
replay access code: 10122270. The call will also be archived on the Company's website for a period of time at www.sensushealthcare.com.
Healthcare, Inc. is a medical device company that is committed to providing non-invasive and cost-effective treatment for non-melanoma
skin cancers and keloids. Sensus uses a proprietary low energy X-ray technology known as superficial radiation therapy (SRT),
which is a result of over a decade of dedicated research and development. Sensus has successfully incorporated SRT therapy into
its portfolio of treatment devices, the SRT-100 and SRT-100 Vision . To date, SRT technology has been used to effectively
and safely treat oncological and non-oncological skin conditions in thousands of patients. For more information, visit http://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 our product lines; our ability to successfully commercialize our products; 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