Misonix Reports Fiscal 2021 Third Quarter Financial Results
|Three Months Ended||Nine Months Ended|
|Gross profit percentage||70.6||%||70.3||%||71.0||%||70.3||%|
|Income tax benefit||$||-||$||(455,000||)||$||-||$||(4,540,000||)|
|Adjusted EBITDA (1)||$||(1,009,524||)||$||(3,787,398||)||$||(1,609,366||)||$||(5,403,621||)|
|Cash and cash equivalents||$||30,913,686||$||37,978,809|
|Current and Long Term Debt||$||43,395,248||$||43,695,249|
(1) Definitions and disclosures regarding non-GAAP financial information including reconciliations are included at the end of this press release.
Third Quarter Fiscal Year 2021 Highlights:
- Fiscal 2021 third quarter revenue of
$18.3 millionincreased 2.5%, compared to $17.9 millionin the fiscal 2020 third quarter.
- Domestic surgical revenue increased 14.7%
- International surgical revenue increased 11.8%
- Domestic wound revenue declined 9.8%
- Gross profit percentage on sales for the fiscal 2021 third quarter increased to 70.6%, compared with 70.3% in the fiscal 2020 third quarter.
- Operating expenses decreased 11.6% during the fiscal 2021 third quarter as compared with the fiscal 2020 third quarter, reflecting improved cost management.
- Net loss for the fiscal 2021 third quarter narrowed to
$3.8 million, or a loss of $0.22per diluted share, compared to a net loss of $5.6 million, or a loss of $0.34per diluted share, in the fiscal 2020 third quarter.
- Fiscal 2021 third quarter Adjusted EBITDA improved to a loss of
$1.0 million, compared to an Adjusted EBITDA loss of $3.8 millionin the fiscal 2020 third quarter.
March 2021, Misonixreceived a Health Canadalicense for the neXus® Ultrasonic Surgical System, allowing the Company to commercialize neXus, along with its various handpieces and disposable products, across Canada.
- Following the successful launch of the neXus Ultrasonic Surgical System in select international markets and continued strong demand domestically, the Company now expects to place 200 neXus units by fiscal 2021 year-end, an increase from its previous guidance of 180 units.
“Accelerating demand for our neXus Ultrasonic Surgical System and record BoneScalpel and SonaStar product sales growth drove a 13.7% year-over-year increase in fiscal third quarter total surgical revenue, including 14.7% growth domestically and 11.8% growth internationally. Recall, we recorded 41% year-over-year domestic surgical revenue growth in the comparable fiscal third quarter of 2020 following the launch of neXus in
“During the fiscal third quarter, we launched neXus in select international markets including
“In summary, we are encouraged by the early signs of a recovery that we are seeing across our business in both surgical and wound. The overall operating environment has continued to improve, though there are some clear differences by geography and procedural focus. Looking ahead, we expect to see an acceleration in our surgical business and a return to growth in our wound segment beginning in the second half of calendar 2021. 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 move deeper into the recovery phase. We are confident this approach will enable
Sales Performance Supplemental Data
|For the three months ended|
“We continued to deliver on our goal of lowering our cash burn and recently restructured our term debt to lower our borrowing rate and extend the maturity date and debt repayment schedule. With a strong balance sheet reflecting approximately
Fiscal Third 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 the potential effects of new strains of the virus and any increased rates of infection, vaccine roll-out globally and the efficacy of such vaccines, 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 or wound care 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 firstname.lastname@example.org|
|Condensed Consolidated Statements of Operations|
|For the three months ended||For the nine months ended|
|Cost of revenue||5,402,754||5,311,565||15,778,053||14,493,321|
|General and administrative expenses||3,631,175||4,463,467||12,002,453||13,820,989|
|Research and development expenses||1,317,036||1,842,837||3,535,587||3,701,697|
|Total operating expenses||15,839,503||17,916,247||45,822,086||46,133,776|
|Loss from operations||(2,895,077||)||(5,325,300||)||(7,261,207||)||(11,856,678||)|
|Other income (expense):|
|Total other expense||(861,727||)||(718,177||)||(2,738,846||)||(1,564,283||)|
|Loss from operations before income taxes||(3,756,804||)||(6,043,477||)||(10,000,053||)||(13,420,961||)|
|Income tax benefit||-||455,000||-||4,540,000|
|Net loss per share:|
|Weighted average shares - Basic||17,226,181||16,619,981||17,219,221||13,841,032|
|Weighted average shares - Diluted||17,226,181||16,619,981||17,219,221||13,841,032|
|Condensed Consolidated Balance Sheets|
|Cash and cash equivalents||$||30,913,686||$||37,978,809|
|Accounts receivable, less allowance for doubtful accounts of
|Prepaid expenses and other current assets||785,859||1,668,244|
|Total current assets||58,147,779||64,722,505|
|Property, plant and equipment, net of accumulated amortization and depreciation of
|Patents, net of accumulated amortization of
|Lease right-of-use assets||1,108,454||1,098,830|
|Liabilities and shareholders' equity|
|Accrued expenses and other current liabilities||7,862,497||7,515,751|
|Current portion of lease liabilities||508,924||414,058|
|Current portion of notes payable||4,621,766||5,099,744|
|Total current liabilities||18,843,984||17,303,121|
|Deferred tax liabilities||33,293||33,293|
|Other non-current liabilities||227,599||516,665|
|Commitments and contingencies|
|Additional paid-in capital||188,321,138||185,961,104|
|Total shareholders' equity||139,011,555||146,651,570|
|Total liabilities and shareholders' equity||$||197,535,717||$||203,823,707|
Use of Non-GAAP Financial Measures
The Company has presented the following non-GAAP financial measures in this press release: EBITDA and Adjusted EBITDA. The Company defines EBITDA as the net income (loss) as reported under GAAP, plus depreciation and amortization expense, interest expense and income tax expense (benefit). The Company defines Adjusted EBITDA as EBITDA plus non-cash stock compensation expense and M&A transaction fees. Historically, the Company excluded bad debt expense from its calculation of Adjusted EBITDA by adding bad debt expense to EBITDA. Beginning with the quarter ended
The Company has also provided below pro-forma revenue, which is also a non-GAAP financial measurement. The Company acquired the operations of Solsys Medical at the end of its first fiscal quarter ended
We present these non-GAAP measures because we believe these measures are useful indicators of our operating performance. Our management uses these non-GAAP measures principally as a measure of our operating performance and believes that these measures are useful to investors because they are frequently used by analysts, investors and other interested parties to evaluate the operating performance of companies in our industry. We also believe that these measures are useful to our management and investors as a measure of comparative operating performance from period to period.
|Nine Months Ended|
|Revenue as reported||$||54,338,932||$||48,770,419||$||5,568,513||11.4||%|
|Pro forma revenue||$||54,338,932||$||57,151,615||$||(2,812,683||)||-4.9||%|
|Three Months Ended||Nine Months Ended|
|Income tax benefit||-||(455,000||)||-||(4,540,000||)|
|Depreciation and amortization||1,135,823||1,018,348||3,377,258||2,447,359|
|Non-cash stock compensation||744,993||482,203||2,264,137||1,231,939|
|Reserve for contract asset||-||-||-||960,000|
|M&A transaction fees||-||-||-||1,753,384|
Source: MISONIX, Inc.