MONTGOMERYVILLE, Pa., March 2 /PRNewswire-FirstCall/ -- PhotoMedex, Inc. today announced the results of its operations for the fourth quarter and year ended December 31, 2005.
Revenues for the fourth quarter ended December 31, 2005 were $7,722,166, an increase of 56 percent over the same period last year. Included in this amount is $2,967,937 from operations of its wholly-owned subsidiary ProCyte Corporation or ProCyte, a company acquired by PhotoMedex on March 18, 2005. This compares to revenues for the fourth quarter ended December 31, 2004 of $4,941,421 which reflects no revenues from ProCyte.
The net loss for the quarter ended December 31, 2005 was $797,381, or $0.02 per fully diluted share, representing an improvement of 37 percent over the loss of $1,258,144, or $0.03 per fully diluted share, for the fourth quarter ended December 31, 2004.
Revenues for the year ended December 31, 2005 were $28,384,506 representing a 60 percent increase over the same period last year. Included in this amount is $10,042,133 from operations of ProCyte. This compares to revenues for the year ended December 31, 2004 of $17,745,181 which reflects no revenues from ProCyte.
The net loss for the year ended December 31, 2005 was $3,936,044, or $0.08 per fully diluted share, representing an improvement of 21 percent over the loss of $4,984,196, or $0.13 per fully diluted share, for the year ended December 31, 2004.
As of December 31, 2005, the Company had cash and cash equivalents of $5,609,967, including restricted cash of $206,931.
Jeffrey O’Donnell, PhotoMedex CEO and President, commented, “2005 was a very successful growth year for PhotoMedex. The private insurer landscape improved for the XTRAC with the positive policy adoptions by United Healthcare and several large Blue Cross Blue Shield insurers. We believe approximately 75 percent of covered psoriasis patients now have the opportunity to have their XTRAC treatments reimbursed and several of our targeted regions have removed the obstacles to reimbursement.
We are also pleased to have the additional sales and marketing resources provided by the ProCyte integration.
2006 is pivotal for PhotoMedex and the management team has never been more energized than it is today. It is becoming clear that a reimbursed region, plus sales coverage, topped with direct-to-consumer advertising equals increased market share.”
The following were among the more notable recent achievements: Reimbursement: * United Healthcare, one of the nation’s largest health plans with over 18 million medical members, adopts XTRAC reimbursement; * Pennsylvania Independence Blue Cross, with 3.5 million medical members, adopts XTRAC reimbursement; * Highmark Blue Cross, with 4.1 million members, adopts XTRAC reimbursement; * Empire of New York Blue Cross and Blue Shield, with 5 million medical members, published a favorable XTRAC reimbursement policy; * CIGNA, with 9 million members, published a favorable reimbursement policy; * Michigan Blue Cross and Blue Shield with 4.7 million members, published a favorable XTRAC reimbursement policy; and * Additional Blue Cross Blue Shield Plans in certain states adopt XTRAC reimbursement. Financial: * Completed Merger of ProCyte Corporation; * Ranked First by Institutional Shareholder Services in Corporate Governance Practices in Philadelphia Region; * Renewed Neutrogena Supply agreement for Copper Peptide for an additional two years; * Included in the Russell Microcap Index; * Included in the Nasdaq Healthcare Index, * Settled litigation with Edwards LifeSciences; * Presenter at multiple Investment Banking Conferences throughout the year. New Product Development: * Two new patents issued for Copper Peptide Technology
Additional notable activities and Company recognition during and following the fourth quarter included:
* PhotoMedex CEO named LifeSciences CEO of the Year by Eastern Technology Council; * Awarded a ranking of number 121 on the 2005 Deloitte Technology Fast 500, a ranking of the 500 fastest growing technology companies in North America.
PhotoMedex will hold a conference call to discuss the Company’s fourth quarter 2005 results today, Thursday, March 2, 2006 at 4:30 p.m. Eastern Time.
To participate in the conference call, dial 877.502-9274 (and confirmation code # 1873446) approximately 5 to 10 minutes prior to the scheduled start time. If you are unable to participate, a digital replay of the call will be available from Thursday, March 2, from 7:30 p.m. ET until midnight on Wednesday, March 15, by dialing 888.203.1112 and using confirmation code # 1873446.
A live broadcast of the PhotoMedex, Inc.'s quarterly conference call will be available online with accompanying slide presentation by going to www.photomedex.com and clicking on the link to Investor Relations, and at www.streetevents.com. The online replay will be available shortly after the call at those sites.
About PhotoMedex
PhotoMedex is engaged in the development of proprietary excimer laser and fiber optic systems and techniques directed toward dermatological applications, with FDA approval to market the XTRAC(R) laser system for the treatment of psoriasis, vitiligo, atopic dermatitis and leukoderma. In addition, the Company provides contract medical procedures to hospitals, surgi-centers and doctors’ offices, offering a wide range of products and services across multiple specialty areas, including dermatology, urology, gynecology, orthopedics, and other surgical specialties. The Company is a leader in the development, manufacturing and marketing of medical laser products and services. In addition, as a result of the merger with ProCyte, PhotoMedex now develops and markets products based on its patented, clinically proven Copper Peptide technology for skin health, hair care and wound care. PhotoMedex sells directly to dermatologists, plastic and cosmetic surgeons, spas and salons and through licenses with strategic partners into the consumer market, including a long-term worldwide license agreement with Neutrogena(R), a Johnson & Johnson company. ProCyte brands include Neova(R), Ti-Silc(R), VitalCopper(R), Simple Solutions(R) and AquaSante(R).
SAFE HARBOR STATEMENT
Some paragraphs of this press release, particularly those describing PhotoMedex’ strategies, contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1993, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. While PhotoMedex is working to achieve those goals and strategies, actual results could differ materially from those projected in the forward-looking statements as a result of a number of factors, including difficulties in marketing its products and services, need for capital, competition from other companies and other factors, any of which could have an adverse effect on the business plans of PhotoMedex, its reputation in the industry or its expected financial return from operations. Factors such as these could have an adverse effect on PhotoMedex’ results of operations. In light of significant uncertainties inherent in forward-looking statements included herein, the inclusion of such statements should not be regarded as a representation by PhotoMedex and its subsidiaries that they will achieve such forward-looking statements.
Contacts: Allen & Caron PhotoMedex, Inc. Matt Clawson (investors) Dennis McGrath, CFO 949-474-4300 215-619-3287 matt@allencaron.cominfo@photomedex.com PHOTOMEDEX, INC. CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED) Three Months Ended December 31, Year Ended December 31, 2005 2004** 2005* 2004** Revenues $7,722,166 $4,941,421 $28,384,506 $17,745,181 Cost of Sales 4,517,561 2,736,418 15,675,505 10,363,269 Gross profit 3,204,605 2,205,003 12,709,001 7,381,912 Operating expenses: Selling, general and administrative 4,532,729 2,914,991 16,477,322 10,426,256 Research and development and engineering 308,116 476,039 1,127,961 1,801,438 4,840,845 3,391,030 17,605,283 12,227,694 Loss from operations before interest expense, net (1,636,240) (1,186,027) (4,896,282) (4,845,782) Interest expense, net (130,023) (72,117) (342,299) (138,414) Other income 968,882 -- 1,302,537 -- Net loss (1) $(797,381) $(1,258,144) $(3,936,044) $(4,984,196) Basic and diluted net loss per share $(0.02) $(0.03) $(0.08) $(0.13) Shares used in computing basic and diluted net loss per share 51,322,000 40,059,503 48,786,109 38,835,356 (1) Includes Depreciation and Amortization $988,042 $451,509 $3,217,200 $1,765,944 * PhotoMedex, Inc. acquired ProCyte Corporation (“ProCyte”) on March 18, 2005 and, as such the operating results of ProCyte for the year ended December 31, 2005 include activity from ProCyte from March 19, 2005 through December 31, 2005. ** As a result of purchase accounting rules, the operating results of ProCyte for the three and twelve months ended December 31, 2004 are not included in the above consolidated statement of operations for the period ended December 31, 2004. PHOTOMEDEX, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) December 31, 2005 December 31, 2004 Assets Cash and cash equivalents $5,609,967 $3,997,017 Accounts receivable, net 4,651,080 4,117,399 Inventories 8,047,444 4,585,631 Other current assets 621,372 401,989 Property and equipment, net 7,044,713 4,996,688 Other assets 22,701,030 4,863,202 Total Assets $48,675,606 $22,961,926 Liabilities and Stockholders’ Equity Accounts payable and accrued liabilities $5,159,764 $4,959,678 Other current liabilities 670,740 1,079,701 Bank and Lease Notes Payable 4,416,451 2,342,264 Other liabilities 11,623 -- Stockholders’ equity 38,417,028 14,580,283 Total Liabilities and Stockholders’ Equity $48,675,606 $22,961,926 PHOTOMEDEX, INC. CONDENSED STATEMENTS OF CASH FLOW (UNAUDITED) Three Months Ended Year Ended December 31, December 31, 2005 2004 2005 2004 CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) $(797,381) $(1,258,144) $(3,936,044) $(4,984,196) Adjustments to reconcile net income (loss) to net cash provided by operating activities-- Depreciation and amortization 988,042 451,509 3,217,200 1,765,944 Provision for doubtful accounts 97,840 220,741 373,964 459,861 Other 129,459 51,630 212,336 104,701 Changes in assets and liabilities: (Increase) decrease in-- Accounts Receivables (30,497) (439,668) 229,768 (1,094,230) Inventories (365,139) (375,572) (782,880) (628,257) Prepaid expenses and other assets 465,395 325,669 1,011,340 541,170 Increase (decrease) in-- Accounts payable & other accrued expenses 453,594 1,167,822 (1,789,160) 1,244,536 Deferred revenues (65,296) (246,483) (266,366) (174,750) Net cash provided by (used in) operating activities 876,017 (102,496) (1,729,842) (2,765,221) CASH FLOWS FROM INVESTING ACTIVITIES: (938,216) (973,316) 1,993,412 (2,677,670) CASH FLOWS FROM FINANCING ACTIVITIES: 288,086 (251,352) 1,254,649 2,694,240 NET INCREASE (DECREASE) IN CASH 225,887 (1,327,164) 1,518,219 (2,748,651) CASH, BEGINNING OF PERIOD 5,177,150 5,211,981 3,884,817 6,633,468 CASH, END OF PERIOD 5,403,036 3,884,817 5,403,036 3,884,817 RESTRICTED CASH 206,931 112,200 206,931 112,200 TOTAL CASH $5,609,967 $3,997,017 $5,609,968 $3,997,017
The following table compares unaudited XTRAC domestic treatment activity and revenues for the last eight quarters.
Quarterly Treatments Billed * Unbilled $ tx# Rate/tx $ tx# 4Q05 17,015 $1,020.0 15,264 $66.82 -- 1,751 3Q05 15,690 $916.0 13,876 $66.01 -- 1,814 2Q05 15,503 $901.0 13,811 $65.24 -- 1,692 1Q05 12,418 $750.0 11,304 $66.35 -- 1,114 4Q04 14,499 $846.0 12,640 $66.93 -- 1,859 3Q04 13,841 $840.0 12,672 $66.29 -- 1,169 2Q04 12,688 $821.0 11,878 $69.12 -- 810 1Q04 10,737 $675.0 9,647 $69.97 -- 1,090 Quarterly Treatments Deferred & Other * Recognized * $ tx# $ tx# 4Q05 17,015 $(64.0) (984) $956.0 16,031 3Q05 15,690 $102.7 1,556 $1,018.7 17,246 2Q05 15,503 $(12.0) (187) $889.0 15,316 1Q05 12,418 $(116.0) (1,753) $634.0 10,665 4Q04 14,499 $194.0 2,760 $1,040.0 17,259 3Q04 13,841 $105.0 1,597 $945.0 15,438 2Q04 12,688 $(102.0) 1,472 $719.0 14,160 1Q04 10,737 $(125.0) (1,775) $550.0 8,962 * dollar amounts in thousands
PhotoMedex, Inc.
CONTACT: Investors, Matt Clawson of Allen & Caron, +1-949-474-4300,matt@allencaron.com, for PhotoMedex, Inc.; or Dennis McGrath, CFO ofPhotoMedex, Inc., +1-215-619-3287, info@photomedex.com
Web site: http://www.photomedex.com/
