BOCA RATON, Fla., Aug. 4, 2016 /PRNewswire/ -- Sensus Healthcare, Inc. (NASDAQ: SRTS), a medical device company specializing in the treatment of non-melanoma skin cancers and other skin conditions, such as keloids, with superficial radiation therapy, today reported its financial results for the second quarter ended June 30, 2016.
Recent Business Highlights
- Successfully completed Initial Public Offering on June 2, 2016 raising net proceeds of $10.4 million
- Expanded sales team to 12 experienced employees during the quarter, with specializations in dermatology and radiation oncology
- Sold 14 systems during the quarter, increasing worldwide installed base to 247 units as of June 30, 2016
- Recognized by Frost and Sullivan with the 2016 Global Non-Melanoma Skin Cancer Therapy Technology Leadership Award
"In our first reporting period as a public company, we are excited to report strong results. In the second quarter of 2016, revenue increased year-over-year by 49% from $2.4 million to $3.6 million and adjusted EBITDA increased from approximately break-even to approximately $250,000 compared to the same period last year," said Joseph Sardano, President and CEO of Sensus Healthcare. "During the second quarter, we successfully completed our journey of becoming a public company by raising net proceeds of $10.4 million after fees and expenses. One of the major goals for raising additional capital was to bolster our marketing efforts and to increase the size of our sales team in order to raise awareness for our devices. We are also pleased to announce that we almost doubled the size of our Dermatology sales team to 10 professionals during the second quarter, while adding one sales rep to our Oncology team. We intend to continue hiring at similar levels through the end of the year."
Q2 2016 Financial Highlights
Revenues for Q2 2016 increased 49% to $3.57 million, compared to $2.40 million for Q2 2015.
Gross Margin for Q2 2016 was 65.0%, compared to 64.6% for Q2 2015.
Selling and Marketing Expenses for Q2 2016 were $1.18 million, compared to $0.93 million in Q2 2015.
General and Administrative Expenses for Q2 2016 were $1.10 million, compared to $0.37 million in Q2 2015. The increase in Q2 2016 included $0.50 million in stock compensation expense, of which $0.47 million was a one-time expense related to a grant that vested with the completion of the IPO.
Research and Development Expenses for Q2 2016 were $0.41 million, compared to $0.33 million in Q2 2015.
GAAP Net Loss Attributable to Common Stockholders for Q2 2016 was ($0.35) million, or ($0.03) per share, compared to a net loss attributable to common stockholders of ($0.22) million, or ($0.02) per share for Q2 2015. The net loss attributable to common stockholders in Q2 2015 included a non-cash accounting charge of approximately $0.13 million for a preferential distribution attributable to preferred shareholders prior to the IPO.
Adjusted EBITDA for Q2 2016 was $0.25 million, compared to $0.01 million for Q2 2015. Adjusted EBITDA is defined as earnings before depreciation and amortization, taxes, interest expense, stock compensation expense and litigation settlement expense. Please see below for a reconciliation between GAAP and this non-GAAP financial measure and the specific reasons why we provide these non-GAAP financial measures.
Cash and Cash Equivalents were $15.8 million as of June 30, 2016, which included $10.4 million in net proceeds from the IPO.
Net Cash provided by operating activities was $0.3 million for the three months ended June 30, 2016.
Six Month 2016 Financial Highlights
Revenues for the six months ended June 30, 2016 increased 53% to $6.61 million, compared to $4.33 million for same period in 2015.
Gross Margin for the six months ended June 30, 2016 was 64.4%, compared to a gross margin of 63.7% for the same period in 2015.
Selling and Marketing Expenses for the six months ended June 30, 2016 were $2.13 million, compared to $1.85 million for the same period in 2015.
General and Administrative Expenses for six months ended June 30, 2016 were $1.76 million, compared to $0.70 million for the same period in 2015. The increase in 2016 included $0.50 million in stock compensation expense.
Research and Development Expenses for the six months ended June 30, 2016 were $0.71 million, compared to $0.77 million for the same period in 2015.
GAAP Net Loss Attributable to Common Stockholders for the six months ended June 30, 2016 was ($0.35) million, or ($0.03) per share, compared to a net loss attributable to common stockholders of ($0.83) million, or ($0.08) per share for the same period in 2015. The net loss attributable to common stockholders for the six months ended June 30, 2015 included a non-cash accounting charge of approximately $0.26 million for a preferential distribution attributable to preferred shareholders prior to the IPO.
Adjusted EBITDA for the six months ended June 30, 2016 was $0.46 million, compared to adjusted EBITDA of ($0.39) million for the same period in 2015. Adjusted EBITDA is defined as earnings before depreciation and amortization, taxes, interest expense, stock compensation expense and litigation settlement expense. Please see below for a reconciliation between GAAP and this non-GAAP financial measure and the specific reasons why we provide these non-GAAP financial measures.
"While radiation technology has existed for decades, we are thrilled by the initial acceptance and interest in our advanced Superficial Radiation Therapy (SRT) devices. Our proprietary SRT-100 and SRT-100 Vision offer a compelling value proposition to medical professionals and patients and allow Sensus Healthcare to target large, underserved segments of the market. Currently, we're addressing two of the largest and fastest growing segments of the market, non-melanoma skin cancer and keloids, but at the same time we're actively researching and investing in other high-growth market opportunities," concluded Mr. Sardano.
Conference Call and Webcast Information
Sensus Healthcare's second quarter 2016 conference call and webcast will be held at 4:30 pm Eastern Time on Thursday, August 4, 2016 and will feature remarks by Joseph Sardano, President and CEO, and Arthur Levine, CFO.
The dial-in numbers for the conference call are 1-877-870-4263 (Toll Free) and 1-412-317-0790 (International). Ask the operator to join you into the Sensus Healthcare call.
A live webcast of the conference call will be available online which can be accessed through the Investor Relations section of Sensus Healthcare's website, http://investors.sensushealthcare.com/events-and-presentations. Please allow extra time prior to the call to visit the site and download any necessary software to listen to the live broadcast.
For interested individuals unable to join the conference call, a replay of the webcast will remain available on http://investors.sensushealthcare.com/events-and-presentations for 30 days following the call.
About Sensus
Sensus Healthcare, Inc. is a medical device company that is committed to enabling non-invasive and cost-effective treatment of non-melanoma skin cancers and keloids. Sensus uses a proprietary low energy x-ray radiation technology known as superficial radiation therapy (SRT), which is a result of over a decade of dedicated research and development activities. Sensus has successfully incorporated the SRT therapy into its portfolio of treatment devices, the SRT-100 and SRT-100 Vision. To date, the 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.
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 of America ("GAAP"). Sensus Healthcare's 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.
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