Full Press Release Details
Healthcare Third Quarter Financial Results Feature Revenue Growth of 32%
18 systems during the quarter including 15 SRT-100 Vision systems
call begins at 4:30 p.m. Eastern time today
RATON, Fla. (November 1, 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 nine months ended September 30, 2018.
from the third quarter of 2018 and recent weeks include:
strong and consistent execution of our business plan continued during the third quarter, with revenues increasing 32% year-over-year,
and the achievement of double-digit revenue growth quarter after quarter for three years," said Joe Sardano, Chairman and
Chief Executive Officer of Sensus Healthcare. "We were particularly pleased with the traction from our oncology sales organization
during the quarter, which we have been building up during the past year. In addition, a key corporate customer has proven to be
reliable and lucrative for us, with a program to provide turnkey solutions to physicians.
the third quarter we launched the SRT-100+, a next-generation SRT system that adds several innovative features to our existing
SRT-100 product, including remote diagnostics and patient medical records integration, as well as core system enhancements. With
this system, we have expanded the energy range and included Grenz rays for the potential treatment of psoriasis. Research studies
in psoriasis are ongoing, and the results are expected to form the basis for marketing to physicians. We are very pleased with
the reception this new product has been receiving, and its launch further strengthens our leadership position in dermatology innovation."
Sardano continued, "As previously disclosed, we have been investing significantly in research and development, which
we view as essential to the long-term prosperity of Sensus. Much of the investment has been directed to our new
Intraoperative Radiation Therapy (IORT) system for treating breast and other cancers. We filed a 510(k) application with the
FDA at the end of 2017 and continue to expect clearance before the end of the year. We have taken a number of steps to
prepare for the anticipated launch of this product early next year, including manufacturing several beta models being tested
in key oncology centers and starting the expansion of our oncology sales force. We expect our IORT system, which contains key
technological advances, and with an expected list price in excess of $1 million will play an important role in the growth of
Sensus in the coming years.
new office in Tel Aviv is up and running and we were very pleased to consummate the sale of an SRT-100 Vision to Sheba
Medical Center, which represents the third sale of the product in Israel. Our Tel Aviv base is also a cutting-edge
research and development facility for our new suite of lasers and offers a foothold for sales in Europe and Asia.
continue to work with key opinion leaders to ensure the use of image-guided superficial radiation is receiving the attention it
deserves among healthcare professionals. In October, we highlighted the SRT-100 Vision at the American Society of Therapeutic
Radiation Oncology (ASTRO) annual meeting and were very pleased with the traffic at our booth.
are optimistic about the prospects for Sensus and we have never been in a stronger position, both financially and technologically.
Our recent equity fundraise provides important growth capital. Our research
and development is creating important advances, and we have funds available to expand our sales organization in a careful and
thoughtful way, particularly in oncology as we await IORT clearance. We look forward to continued achievements throughout the
remainder of this year, which should provide the base for an excellent 2019," Mr. Sardano concluded.
Results for the Three Months Ended September 30, 2018
for the third quarter of 2018 increased 32% to $6.3 million, compared with $4.8 million for the third quarter of 2017. The increase
was primarily attributable to more units being sold, including an increase in sales of the higher-priced SRT-100 Vision product.
profit for the third quarter of 2018 was $4.2 million, or 65.8% of revenues, compared with $3.2 million, or 67.1% of revenues,
for the third quarter of 2017. The decrease in gross margin percentage was mainly due to lower average selling prices.
and marketing expense for the third quarter of 2018 was $2.0 million, compared with $1.8 million for the third quarter of 2017.
The increase was primarily due to higher commission expense directly related to the increase in sales.
and administrative expense for the second quarter of 2018 was $0.9 million, compared with $0.8 million for the third quarter
of 2017. The increase was primarily due to higher professional services.
and development expense for the third quarter of 2018 was $1.7 million, compared with $1.5 million for the third 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 third quarter of 2018 was $(0.5) million, or $(0.03) per share, compared with a net loss of $(1.0) million, or
$(0.07) per share, for the third quarter of 2017.
EBITDA for the third quarter of 2018 was $(0.1) million, compared with $(0.8) million for the third 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.
and cash equivalents were $17.1 million as of September 30, 2018. During the third quarter the Company raised $15.9
million in net proceeds from an underwritten public offering of common stock and repaid outstanding borrowings on the
revolving line of credit.
Results for the Nine Months Ended September 30, 2018
for the nine months ended September 30, 2018 increased 30% to $18.3 million, compared with $14.1 million for the prior year's
nine-month period. Gross profit for the nine months ended September 30, 2018 was $12.0 million, or 65.7% of revenue, compared
with $9.5 million, or 67.2% of revenue, for the prior year's nine-month period.
and marketing expense was $6.1 million for the nine months ended September 30, 2018, compared with $6.2 million for the nine months
ended September 30, 2017. General and administrative expense was $3.2 million year-to-date, compared with $2.8 million for the
prior-year period. General and administration expense for the nine months ended September 30, 2018 includes $0.4 million in stock-based
compensation expense related to stock grants during the first quarter of 2018. Research and development expense for the nine months
ended September 30, 2018 was $4.8 million, compared with $3.8 million for the nine months ended September 30, 2017.
net loss for the nine months ended September 30, 2018 was $(2.1) million, or $(0.16) per share, compared with a net loss of $(3.3)
million, or $(0.25) per share, for the nine months ended September 30, 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.
SENSUS HEALTHCARE, INC.
GAAP TO NON-GAAP RECONCILIATION
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
| 2018 | 2017 | 2018 | 2017 | |||||||||||||
| Net Loss, as reported | $ | (458,108 | ) | $ | (965,687 | ) | $ | (2,124,672 | ) | $ | (3,301,930 | ) | ||||
| Add: | ||||||||||||||||
| Depreciation and amortization | 193,923 | 103,383 | 427,426 | 294,906 | ||||||||||||
| Stock compensation expense | 143,042 | 102,431 | 823,494 | 303,465 | ||||||||||||
| Interest, net | 34,750 | 259 | 88,065 | (17,557 | ) | |||||||||||
| Adjusted EBITDA, non GAAP | $ | (86,393 | ) | $ | (759,614 | ) | $ | (785,687 | ) | $ | (2,721,116 | ) |
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 third 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 November 8, 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 operator
with the following replay access code: 10125607. An archived webcast of the call will also be available in the Investor Relations
section of 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 into its portfolio
of treatment devices, the SRT-100 , 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. Sensus also offers Sensus Laser Systems,
three next-generation devices that showcase the latest in technology and function for the aesthetic dermatology market.
more information, visit 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