Misonix Reports Fiscal 2021 Second Quarter Financial Results
|Three Months Ended||Six Months Ended|
|Gross profit percentage||71.2||%||69.9||%||71.2||%||70.3||%|
|Income tax benefit||$||-||$||-||$||-||$||4,085,000|
|Adjusted EBITDA (1)||$||1,555,575||$||(1,925,410||)||$||(599,842||)||$||(1,617,966||)|
|Cash and cash equivalents||$||32,833,836||$||37,978,809|
|Current and Long Term Debt||$||43,895,249||$||43,695,249|
(1) Definitions and disclosures regarding non-GAAP financial information including reconciliations are included at the end of this press release.
Second Quarter Fiscal Year 2021 Highlights:
- The novel coronavirus disease (“COVID-19”) continued to materially impact the industry and Misonix’s business in the first and second quarters of fiscal 2021 as elective procedures were delayed in order to treat patients affected by the COVID-19 pandemic and to allow health providers to comply with new safety measures.
- Fiscal 2021 second quarter revenue of
$18.3 milliondecreased 7.4%, compared to $19.7 millionin the fiscal 2020 second quarter.
- Domestic surgical revenue increased 19.8%
- International revenue declined 23.1%
- Domestic wound revenue declined 16.2%
- Gross profit percentage on sales for the fiscal 2021 second quarter increased approximately 130 basis points to 71.2%, compared with 69.9% in the fiscal 2020 first quarter.
- Operating expenses decreased 26.2% during the fiscal 2021 second quarter as compared with the fiscal 2020 second quarter, reflecting improved cost management, a net
$1.2 millionbad debt recovery in the fiscal 2021 second quarter, and $1.0 millioncontract asset write off in the prior year. Excluding the bad debt and contract asset activity, operating expenses were 15.0% lower during the second quarter compared to the prior year.
- Net loss for the fiscal 2021 second quarter narrowed to
$1.3 million, or a loss of $0.07per diluted share, compared to a net loss of $5.1 million, or a loss of $0.33per diluted share, in the fiscal 2020 second quarter.
- Fiscal 2021 second quarter Adjusted EBITDA improved to positive
$1.6 million, compared to an Adjusted EBITDA loss of $1.9 millionin the fiscal 2020 second quarter.
December 2020, Misonixannounced that the second largest U.S.commercial payer is now covering TheraSkin for the treatment of all lower extremity wounds, expanding TheraSkin’s coverage by approximately 32 million lives.
“During the second fiscal quarter, the continued strength of neXus drove a year-over-year increase in domestic surgical revenue of nearly 20%, which is largely in-line with our historical growth levels, while domestic wound sales and international product sales remain more impacted by COVID-19. With the continued healthy adoption of neXus and a growing footprint from which to expand our business, we expect to return to pre-pandemic top-line growth when we return to a more normalized environment. As such, we remain focused on developing and refining our commercial infrastructure, including acquiring additional sales resources, to ensure that we are in the best position to drive market share gains and further adoption of our surgical and regenerative products as we emerge from the pandemic.
“As we enter the second half of fiscal 2021, we are excited about the opportunities to grow organically by leveraging our proprietary ultrasonic technology and expanding the procedures we participate in, as well as the potential for additional distribution partnerships to further our offering across both surgical and wound. We are actively managing the business to best position
Sales Performance Supplemental Data
|For the three months ended|
“With a strong balance sheet reflecting over
Fiscal Second Quarter 2021 Conference Call and Webcast
Safe Harbor Statement
With the exception of historical information contained in this press release, content herein may contain “forward looking statements” that are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. These statements include projections regarding Misonix’s future operating results, ability to grow revenue, and ability to maintain gross profit margins. These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances. Investors are cautioned that forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from the statements made. These factors include general economic conditions, the impact of COVID-19, or other pandemics, including any increased rates of infection, and the impact of related governmental, individual and business responses. This includes our ability to obtain or forecast accurate surgical procedure volume in the midst of the COVID-19 pandemic; the risk that the COVID-19 pandemic could lead to further material delays and cancellations of, or reduced demand for, surgical procedures; curtailed or delayed capital spending by hospitals and surgical centers; potential closures of our facilities; delays in gathering clinical evidence; diversion of management and other resources to respond to the COVID-19 outbreak; the impact of global and regional economic and credit market conditions on healthcare spending; the risk that the COVID-19 virus disrupts local economies and causes economies in our key markets to enter prolonged recessions; the ability of our staff to travel to work; our ability to maintain adequate inventories and delivery capabilities; the impact on our customers and supply chain, and the impact on demand in general. These forward-looking statements are also subject to uncertainties and change resulting from delays and risks associated with the performance of contracts; risks associated with international sales and currency fluctuations; uncertainties as a result of research and development; acceptable results from clinical studies, including publication of results and patient/procedure data with varying levels of statistical relevancy; risks involved in introducing and marketing new products; potential acquisitions; the entry of competitive products into the marketplace; consumer and industry acceptance; litigation and/or court proceedings, including the timing and monetary requirements of such activities; the timing of finding strategic partners and implementing such relationships; regulatory risks including clearance of pending and/or contemplated 510(k) filings; our ability to achieve and maintain profitability in our business lines; access to capital; and other factors described from time to time in our filings with the
|Chief Financial Officer||JCIR|
|212-835-8500 or email@example.com|
Condensed Consolidated Statements of Operations
|For the three months ended||For the six months ended|
|Cost of revenue||5,264,699||5,945,108||10,375,300||9,181,755|
|General and administrative expenses||3,918,950||5,149,715||8,371,277||9,357,522|
|Research and development expenses||968,377||1,087,449||2,218,551||1,858,860|
|Total operating expenses||13,310,402||18,037,729||29,982,581||28,217,529|
|Loss from operations||(318,691||)||(4,260,851||)||(4,366,129||)||(6,531,376||)|
|Other income (expense):|
|Total other expense||(945,906||)||(828,122||)||(1,877,120||)||(846,105||)|
|Loss from operations before income taxes||(1,264,597||)||(5,088,973||)||(6,243,249||)||(7,377,481||)|
|Income tax benefit||-||-||-||4,085,000|
|Net loss per share:|
|Weighted average shares - Basic||17,217,948||15,222,870||17,215,817||12,439,860|
|Weighted average shares - Diluted||17,217,948||15,222,870||17,215,817||12,439,860|
Condensed Consolidated Balance Sheets
|Cash and cash equivalents||$||32,833,836||$||37,978,809|
|Accounts receivable, less allowance for doubtful accounts of
|Prepaid expenses and other current assets||1,248,170||1,668,244|
|Total current assets||58,381,482||64,722,505|
|Property, plant and equipment, net of accumulated amortization and depreciation of
|Patents, net of accumulated amortization of
|Lease right-of-use assets||1,202,017||1,098,830|
|Liabilities and shareholders' equity|
|Accrued expenses and other current liabilities||7,075,399||7,515,751|
|Current portion of lease liabilities||508,870||414,058|
|Current portion of notes payable||2,888,604||5,099,744|
|Total current liabilities||13,129,125||17,303,121|
|Deferred tax liabilities||33,293||33,293|
|Other non-current liabilities||498,938||516,665|
|Commitments and contingencies|
|Additional paid-in capital||187,504,189||185,961,104|
|Total shareholders' equity||141,951,407||146,651,570|
|Total liabilities and shareholders' equity||$||197,359,122||$||203,823,707|
Use of Non-GAAP Financial Measures
The Company has presented the following non-GAAP financial measures in this press release: EBITDA and Adjusted EBITDA. The Company defines EBITDA as the net income (loss) as reported under GAAP, plus depreciation and amortization expense, interest expense and income tax expense (benefit). The Company defines Adjusted EBITDA as EBITDA plus non-cash stock compensation expense and M&A transaction fees. Historically, the Company excluded bad debt expense from its calculation of Adjusted EBITDA by adding bad debt expense to EBITDA. Beginning with the quarter ended
The Company has also provided below pro-forma revenue, which is also a non-GAAP financial measurement. The Company acquired the operations of Solsys Medical at the end of its first fiscal quarter ended
We present these non-GAAP measures because we believe these measures are useful indicators of our operating performance. Our management uses these non-GAAP measures principally as a measure of our operating performance and believes that these measures are useful to investors because they are frequently used by analysts, investors and other interested parties to evaluate the operating performance of companies in our industry. We also believe that these measures are useful to our management and investors as a measure of comparative operating performance from period to period.
|Six Months Ended|
|Revenue as reported||$||35,991,752||$||30,867,908||$||5,123,844||16.6||%|
|Pro forma revenue||$||35,991,752||$||39,212,703||$||(3,220,951||)||-8.2||%|
|Three Months Ended||Six Months Ended|
|Income tax benefit||-||-||-||(4,085,000||)|
|Depreciation and amortization||1,118,056||965,876||2,241,435||1,426,172|
|Non-cash stock compensation||753,011||404,652||1,519,144||749,736|
|Reserve for contract asset||-||960,000||-||960,000|
|M&A transaction fees||-||-||-||1,754,475|
Source: MISONIX, Inc.