Sensus Healthcare Reports Second Quarter 2024 Financial Results With Revenues More than Doubling Versus 2023 Second Quarter
Rhea-AI Summary
Sensus Healthcare (SRTS) reported strong Q2 2024 financial results, with revenues doubling to $9.2 million compared to Q4 2023. The company achieved net income of $1.6 million ($0.10 per diluted share) and positive Adjusted EBITDA of $2.1 million. Key highlights include:
- Shipped 23 systems, including 3 SRT-100 units to Asia
- Signed 15 'Fair Deal Agreements' for SRT-100 Vision units
- Ended Q2 with $19 million in cash and no debt
- Accounts receivable increased to $18.3 million
The company's growth was driven by higher superficial radiotherapy unit sales and international expansion efforts, particularly in Asia. Management expects the Fair Deal Agreement program to generate recurring revenue starting in 2025.
Positive
- Revenues increased 104% year-over-year to $9.2 million in Q2 2024
- Net income of $1.6 million ($0.10 per diluted share) compared to a net loss in Q2 2023
- Positive Adjusted EBITDA of $2.1 million, up from negative $1.0 million in Q2 2023
- Shipped 23 systems in Q2 2024, up from 13 systems in Q2 2023
- Signed 15 'Fair Deal Agreements' for SRT-100 Vision units since March 2024
- Strong cash position of $19.0 million with no debt
- Gross profit margin improved to 58.7% in Q2 2024 from 57.9% in Q2 2023
Negative
- Cash and cash equivalents decreased to $19.0 million from $23.1 million at the end of 2023
- Accounts receivable increased to $18.3 million from $10.6 million at the end of 2023
- General and administrative expenses increased to $1.6 million from $1.3 million in Q2 2023
News Market Reaction – SRTS
On the day this news was published, SRTS gained 1.43%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
- Revenues of
$9.2 million compares with$4.5 million in the prior-year quarter, adjusted EBITDA (a non-GAAP measure) of$2.1 million compares with negative$1.0 million a year ago - “Fair Deal Agreement” recurring revenue program gaining momentum with 15 agreements signed to date
Conference call begins at 4:30 p.m. Eastern time today
BOCA RATON, Fla., Aug. 08, 2024 (GLOBE NEWSWIRE) -- 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 skin conditions, announces financial results for the three and six months ended June 30, 2024.
Highlights from the second quarter of 2024 and recent weeks include the following:
- Revenues increased
104% over the comparable 2023 quarter to$9.2 million , reflecting higher superficial radiotherapy (SRT and IG-SRT) unit sales - Shipped 23 systems including three SRT-100 units to Asia, compared with 13 systems in the 2023 quarter
- Entered into “Fair Deal Agreements” for 15 SRT-100 Vision (IG-SRT) units since the program’s introduction in March
- Net income was
$1.6 million , or$0.10 per diluted share, compared with a net loss of$0.4 million , or$0.02 per share, for the 2023 quarter - Ended the quarter with
$19.0 million in cash and cash equivalents, and no debt - Accounts receivable as of June 30, 2024 was
$18.3 million , compared with$10.6 million as of December 31, 2023 - Continued to build inventory to prepare for anticipated customer demand
Management Commentary
“Our sales momentum continued in the second quarter of 2024 with very strong revenue growth over the 2023 second quarter, along with positive net income and positive Adjusted EBITDA,” said Joe Sardano, Chairman and Chief Executive Officer of Sensus Healthcare. “Our Fair Deal Agreement is off to a strong start with 15 agreements signed since our launch at the American Academy of Dermatology meeting in March. We expect to be generating recurring revenue from these SRT-100 Vision (IG-SRT) systems in 2025. This program addresses customer needs to deploy capital to other areas of their business, especially during challenging macroeconomic conditions. Given the growing utilization of SRT to treat non-melanoma skin cancer and keloids, and the interest we have generated to date, we expect this model to contribute to our growth for years to come.
“International efforts, in particular in Asia, are progressing well. During the second quarter we shipped two units to China and one to Taiwan, and are working to establish distribution in South Korea and Japan. Our goal is to make SRT the standard of care for treating non-melanoma skin cancer and keloids, and we are energized by this tremendous global opportunity,” Mr. Sardano concluded.
Second Quarter Financial Results
Revenues for the second quarter of 2024 were
Cost of sales was
Gross profit was
Selling and marketing expense was
General and administrative expense was
Research and development expense was
Other income of
Net income for the second quarter of 2024 was
Adjusted EBITDA for the second quarter of 2024 was
Cash and cash equivalents were
Six Month Financial Results
Revenues for the first half of 2024 were
Cost of sales was
Gross profit was
Selling and marketing expense was
General and administrative expense was
Research and development expense was
Other income of
Net income for the first half of 2024 was
Adjusted EBITDA for the first half of 2024 was
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 the Company’s 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 | ||||||||||||||||||||||
| (unaudited) | ||||||||||||||||||||||
| For the Three Months Ended | For the Six Months Ended | |||||||||||||||||||||
| June 30, | June 30, | |||||||||||||||||||||
| (in thousands) | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||
| Net income (loss), as reported | $ | 1,612 | $ | (380) | $ | 3,886 | $ | (2,274) | ||||||||||||||
| Add: | ||||||||||||||||||||||
| Depreciation and amortization | 31 | 83 | 101 | 156 | ||||||||||||||||||
| Stock compensation expense | 65 | 66 | 156 | 209 | ||||||||||||||||||
| Income tax expense (benefit) | 579 | (502) | 1,406 | (1,303) | ||||||||||||||||||
| Interest income, net | (209) | (245) | (423) | (488) | ||||||||||||||||||
| Adjusted EBITDA, non GAAP | $ | 2,078 | $ | (978) | $ | 5,126 | $ | (3,700) | ||||||||||||||
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 these financial results, provide a business update and answer questions. To access the conference call, dial 844-481-2811 (U.S. and Canada Toll Free) or 412-317-0676 (International). The call will be webcast live and can be accessed at this link, or in the Investors section of the Company’s website at www.sensushealthcare.com.
Following the conclusion of the conference call, a replay will be available until September 8, 2024 and can be accessed by dialing 877-344-7529 (U.S. Toll Free), 855-669-9658 (Canada Toll Free) or 412-317-0088 (International), using replay code 2699495. An archived webcast of the call will also be available in the Investors section of the Company’s website.
About Sensus Healthcare
Sensus Healthcare, Inc. is a global pioneer in the development and delivery of non-invasive treatments for skin cancer and keloids. Leveraging its cutting-edge superficial radiotherapy (SRT and IG-SRT) technology, the company provides healthcare providers with a highly effective, patient-centric treatment platform. With a dedication to driving innovation in radiation oncology, Sensus Healthcare offers solutions that are safe, precise, and adaptable to a variety of clinical settings. For more information, please visit www.sensushealthcare.com.
Forward-Looking Statements
This press release includes statements that are, or may be deemed, ''forward-looking statements.'' In some cases, these statements can be identified by the use of forward-looking terminology such as "believes," "estimates," "anticipates," "expects," "plans," "intends," "may," "could," "might," "will," "should," “approximately,” "potential" or negative or other variations of those terms or comparable terminology, although not all forward-looking statements contain these words.
Forward-looking statements involve risks and uncertainties because they relate to events, developments, and circumstances relating to Sensus, our industry, and/or general economic or other conditions that may or may not occur in the future or may occur on longer or shorter timelines or to a greater or lesser degree than anticipated. In addition, even if future events, developments, and circumstances are consistent with the forward-looking statements contained in this press release, they may not be predictive of results or developments in future periods. Although we believe that we have a reasonable basis for each forward-looking statement contained in this press release, forward-looking statements are not guarantees of future performance, and 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 the following factors, among others: our ability to maintain profitability; our ability to sell the number of SRT units we anticipate for the balance of 2024; the possibility that inflationary pressures continue to impact our sales; the level and availability of government and/or third party payor reimbursement for clinical procedures using our products, and the willingness of healthcare providers to purchase our products if the level of reimbursement declines; the regulatory requirements applicable to us and our competitors; our ability to efficiently manage our manufacturing processes and costs; the risks arising from doing business in China and other foreign countries; legislation, regulation, or other governmental action that affects our products, taxes, international trade regulation, or other aspects of our business; concentration of our customers in the U.S. and China, including the concentration of sales to one particular customer in the U.S.; the performance of the Company’s information technology systems and its ability to maintain data security; our ability to obtain and maintain the intellectual property needed to adequately protect our products, and our ability to avoid infringing or otherwise violating the intellectual property rights of third parties; and other risks described from time to time in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.
To date, we do not expect that the Middle East conflict, the Russian invasion of Ukraine and global geopolitical uncertainties have had any particular impact on our business, but we continue to monitor developments and will address them in future disclosures, if applicable.
Any forward-looking statements that we make in this press release speak only as of the date of such statement, and we undertake no obligation to update such statements to reflect events or circumstances after the date of this press release, except as may be required by applicable law. You should read carefully our "Introductory Note Regarding Forward-Looking Information" and the factors described in the "Risk Factors" section of our periodic reports filed with the Securities and Exchange Commission to better understand the risks and uncertainties inherent in our business.
Contact:
LHA Investor Relations
Kim Sutton Golodetz
212-838-3777
kgolodetz@lhai.com
(Tables to follow)
| SENSUS HEALTHCARE, INC. | |||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||
| For the Three Months Ended | For the Six Months Ended | ||||||||||||||||
| June 30, | June 30, | ||||||||||||||||
| (in thousands, except share and per share data) | 2024 | 2023 | 2024 | 2023 | |||||||||||||
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||||||||||
| Revenues | $ | 9,239 | $ | 4,527 | $ | 19,902 | $ | 7,941 | |||||||||
| Cost of sales | 3,816 | 1,908 | 7,817 | 3,700 | |||||||||||||
| Gross profit | 5,423 | 2,619 | 12,085 | 4,241 | |||||||||||||
| Operating expenses: | |||||||||||||||||
| Selling and marketing | 996 | 1,595 | 2,266 | 3,693 | |||||||||||||
| General and administrative | 1,579 | 1,329 | 3,158 | 2,693 | |||||||||||||
| Research and development | 866 | 822 | 1,792 | 1,920 | |||||||||||||
| Total operating expenses | 3,441 | 3,746 | 7,216 | 8,306 | |||||||||||||
| Income (loss) from operations | 1,982 | (1,127) | 4,869 | (4,065) | |||||||||||||
| Other income: | |||||||||||||||||
| Interest income, net | 209 | 245 | 423 | 488 | |||||||||||||
| Other income, net | 209 | 245 | 423 | 488 | |||||||||||||
| Income (loss) before income tax | 2,191 | (882) | 5,292 | (3,577) | |||||||||||||
| Provision for (benefit from) income tax | 579 | (502) | 1,406 | (1,303) | |||||||||||||
| Net Income (loss) | $ | 1,612 | $ | (380) | $ | 3,886 | $ | (2,274) | |||||||||
| Net income (loss) per share basic | $ | 0.10 | $ | (0.02) | $ | 0.24 | $ | (0.14) | |||||||||
| diluted | $ | 0.10 | $ | (0.02) | $ | 0.24 | $ | (0.14) | |||||||||
| Weighted average number of shares used in computing net income (loss) per share � basic | 16,298,459 | 16,249,766 | 16,296,715 | 16,247,567 | |||||||||||||
| diluted | 16,333,481 | 16,249,766 | 16,325,764 | 16,247,567 | |||||||||||||
| SENSUS HEALTHCARE, INC. | |||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||
| As of June 30, | As of December 31, | ||||||||
| (in thousands, except shares and per share data) | 2024 | 2023 | |||||||
| (unaudited) | |||||||||
| Assets | |||||||||
| Current assets | |||||||||
| Cash and cash equivalents | $ | 18,972 | $ | 23,148 | |||||
| Accounts receivable, net | 18,293 | 10,645 | |||||||
| Inventories | 12,769 | 11,861 | |||||||
| Prepaid inventory | 3,333 | 2,986 | |||||||
| Other current assets | 1,106 | 888 | |||||||
| Total current assets | 54,473 | 49,528 | |||||||
| Property and equipment, net | 712 | 464 | |||||||
| Deferred tax asset | 1,644 | 2,140 | |||||||
| Operating lease right-of-use assets, net | 679 | 774 | |||||||
| Other noncurrent assets | 655 | 804 | |||||||
| Total assets | $ | 58,163 | $ | 53,710 | |||||
| Liabilities and stockholders equity | |||||||||
| Current liabilities | |||||||||
| Accounts payable and accrued expenses | $ | 3,284 | $ | 2,793 | |||||
| Product warranties | 517 | 538 | |||||||
| Operating lease liabilities, current portion | 195 | 187 | |||||||
| Income tax payable | - | 37 | |||||||
| Deferred revenue, current portion | 686 | 657 | |||||||
| Total current Liabilities | 4,682 | 4,212 | |||||||
| Operating lease liabilities, net of current portion | 503 | 596 | |||||||
| Deferred revenue, net of current portion | 77 | 60 | |||||||
| Total liabilities | 5,262 | 4,868 | |||||||
| Commitments and contingencies | |||||||||
| Stockholders equity | |||||||||
| Preferred stock, 5,000,000 shares authorized and none issued and outstanding | - | - | |||||||
| Common stock, | 169 | 169 | |||||||
| Additional paid-in capital | 45,578 | 45,405 | |||||||
| Treasury stock, 532,924 shares at cost, at June 30, 2024 and December 31, 2023 | (3,519) | (3,519) | |||||||
| Retained earnings | 10,673 | 6,787 | |||||||
| Total stockholders equity | 52,901 | 48,842 | |||||||
| Total liabilities and stockholders equity | $ | 58,163 | $ | 53,710 | |||||
FAQ
What was Sensus Healthcare's (SRTS) revenue in Q2 2024?
How many SRT systems did Sensus Healthcare (SRTS) ship in Q2 2024?
What was Sensus Healthcare's (SRTS) net income in Q2 2024?
How many 'Fair Deal Agreements' has Sensus Healthcare (SRTS) signed since March 2024?
What was Sensus Healthcare's (SRTS) cash position at the end of Q2 2024?
