News Releases
Three Months Ended | |||||||
September 30, | |||||||
2019 | 2018 | ||||||
(unaudited) | (unaudited) | ||||||
Revenue: | |||||||
Product revenue | $ | 11,145,922 | $ | 9,361,164 | |||
Total revenue | $ | 11,145,922 | $ | 9,361,164 | |||
Gross Profit | $ | 7,909,275 | $ | 6,610,621 | |||
GP Percentage - product revenue | 71.0 | % | 70.6 | % | |||
Pretax loss | $ | (2,288,508 | ) | $ | (2,610,986 | ) | |
Income tax benefit | $ | 4,085,000 | $ | - | |||
Net income (loss) | $ | 1,796,492 | $ | (2,610,986 | ) | ||
EBITDA (1) | $ | (1,792,115 | ) | $ | (2,244,398 | ) | |
Adjusted EBITDA (1) | $ | 307,444 | $ | (644,377 | ) | ||
September 30 | June 30, | ||||||
2019 | 2019 | ||||||
(unaudited) | |||||||
Long Term Debt | $ | 29,050,722 | $ | - | |||
Cash and cash equivalents | $ | 12,860,578 | $ | 7,842,403 |
(1) Definitions and disclosures regarding non-GAAP financial information including reconciliations are included at the end of this press release.
On
First Quarter Fiscal Year 2020 Highlights:
- Fiscal first quarter 2020 revenue increased approximately 19.1% to
$11.1 million , compared to$9.4 million in fiscal first quarter 2019. Total fiscal Q1 2020 product revenue growth reflects a 18.1% increase in surgical revenue and a 25.7% increase in wound revenue as compared to fiscal Q1 2019.
-- Fiscal first quarter 2020 domestic product revenue increased 21.1% to$6.5 million , including a 20.6% increase in surgical and a 22.9% rise in wound.
-- Fiscal first quarter 2020 international product revenue increased 16.3% to$4.6 million , including a 15.3% increase in surgical and an 81.5% rise in wound.
-- In fiscal first quarter 2020,Misonix implemented a limited market release of the Nexus platform.
- Fiscal first quarter 2020 gross profit increased 19.6% to
$7.9 million from the prior year period of$6.6 million , due principally to higher revenue and improved year-over-year gross profit margin.
- Net income was approximately
$1.8 million in the fiscal first quarter, or$0.17 per diluted share, compared to a net loss of approximately$2.6 million , or$0.29 per share, in the prior year. The year-over-year improvement was attributable to a$4.1 million income tax benefit relating to the acquisition of Solsys.
- On
September 27, 2019 ,Misonix completed its previously announced acquisition of privately held Solsys, in an all-stock transaction valued at approximately$109 million , consisting of the issuance byMisonix of approximately 5.7 million common shares to Solsys unitholders.
-- The acquisition of Solsys substantially broadens Misonix’s addressable market through wound care solutions that are complementary to its existing products, primarily SonicOne.
-- The combined company anticipates top line revenue growth in excess of 20% per annum.
“In early June,
“Late in the fiscal first quarter, we completed the acquisition of privately held Solsys Medical, doubling the size of the Company from a revenue and operating perspective, while almost tripling the sales force and strategically creating two separate sales channels to better support each of our two divisions, surgical and wound. Solsys’ leading cellular and tissue-based wound treatment, TheraSkin, is highly complementary to Misonix’s cutting-edge ultrasonic wound debridement solution, SonicOne. The addition of Solsys to our growing platform provides
“In the coming quarters, we will continue to diligently work with the Solsys team to ensure a smooth integration while simultaneously delivering the top-quality products and services to which our growing base of customers has become accustomed. Our team is highly enthusiastic about our growth prospects. We remain committed to actively managing our business to best position
Sales Performance Supplemental Data
For the three months ended | |||||||||||
September 30, | Net change | ||||||||||
2019 | 2018 | $ | % | ||||||||
Total | |||||||||||
Surgical | $ | 9,611,298 | $ | 8,140,395 | $ | 1,470,903 | 18.1 | % | |||
Wound | 1,534,624 | 1,220,769 | 313,855 | 25.7 | % | ||||||
Total | $ | 11,145,922 | $ | 9,361,164 | $ | 1,784,758 | 19.1 | % | |||
Domestic: | |||||||||||
Surgical | $ | 5,115,022 | $ | 4,241,463 | $ | 873,559 | 20.6 | % | |||
Wound | 1,429,886 | 1,163,055 | 266,831 | 22.9 | % | ||||||
Total | $ | 6,544,908 | $ | 5,404,518 | $ | 1,140,390 | 21.1 | % | |||
International: | |||||||||||
Surgical | $ | 4,496,276 | $ | 3,898,932 | $ | 597,344 | 15.3 | % | |||
Wound | 104,738 | 57,714 | 47,024 | 81.5 | % | ||||||
Total | $ | 4,601,014 | $ | 3,956,646 | $ | 644,368 | 16.3 | % | |||
“Total operating expenses increased 10.4% to
“The initiatives we have undertaken to meet growing demand for our products and to reduce inefficiencies in our procurement and supply chain are becoming more visible as we move through fiscal 2020. In this regard, the new processes and procedures that we implemented over the past few quarters to ensure we have optimal inventory levels to match customer demand are now driving improved productivity and a significant reduction in total outstanding backlog orders.
“In summary, we are successfully executing on our integration and operating strategies and will continue to follow the approach we have deployed to grow both the top and bottom line, while preserving a healthy balance sheet and capital structure. We believe that this momentum will continue and result in enhanced long-term shareholder value as we move through the remainder of fiscal 2020 and beyond. Given our high level of confidence in our outlook we reiterate our guidance for product revenue growth that exceeds 20%, along with gross profit margins of approximately 70%.”
Fiscal First Quarter 2020 Conference Call
About
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 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, 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, 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 approval of pending and/or contemplated 510(k) filings, the ability to achieve and maintain profitability in the Company’s business lines, access to capital, and other factors discussed in the Company’s Annual Report on Form 10-K for the fiscal year ended
Contact: | |
Joe Dwyer | Norberto Aja, Jennifer Neuman |
Chief Financial Officer | JCIR |
Misonix, Inc. | 212-835-8500 or mson@jcir.com |
631-694-9555 | |
Condensed Consolidated Statements of Operations
(Unaudited)
For the three months ended | ||||||||
September 30, | ||||||||
2019 | 2018 | |||||||
Revenues | ||||||||
Product | $ | 11,145,922 | $ | 9,361,164 | ||||
Total revenue | 11,145,922 | 9,361,164 | ||||||
Cost of revenue | 3,236,647 | 2,750,543 | ||||||
Gross profit | 7,909,275 | 6,610,621 | ||||||
Operating expenses: | ||||||||
Selling expenses | 5,200,582 | 4,735,005 | ||||||
General and administrative expenses | 4,207,807 | 3,183,384 | ||||||
Research and development expenses | 771,411 | 1,304,766 | ||||||
Total operating expenses | 10,179,800 | 9,223,155 | ||||||
Loss from operations | (2,270,525 | ) | (2,612,534 | ) | ||||
Other income (expense): | ||||||||
Interest income | 18,877 | 19,813 | ||||||
Interest expense | (36,097 | ) | - | |||||
Other | (763 | ) | (18,265 | ) | ||||
Total other income | (17,983 | ) | 1,548 | |||||
Loss from operations before income taxes | (2,288,508 | ) | (2,610,986 | ) | ||||
Income tax benefit | 4,085,000 | - | ||||||
Net income (loss) | $ | 1,796,492 | $ | (2,610,986 | ) | |||
Net income (loss) per share: | ||||||||
Basic | $ | 0.18 | $ | (0.29 | ) | |||
Diluted | $ | 0.17 | $ | (0.29 | ) | |||
Weighted average shares - Basic | 9,686,402 | 9,100,123 | ||||||
Weighted average shares - Diluted | 10,213,085 | 9,100,123 | ||||||
Condensed Consolidated Balance Sheets
September 30, | June 30, | ||||||||
2019 | 2019 | ||||||||
(Unaudited) | |||||||||
Assets | |||||||||
Current assets: | |||||||||
Cash and cash equivalents | $ | 12,860,578 | $ | 7,842,403 | |||||
Accounts receivable, less allowance for doubtful accounts of $100,000 and $100,000, respectively | 12,727,152 | 5,360,454 | |||||||
Inventories, net | 8,907,354 | 7,353,562 | |||||||
Prepaid expenses and other current assets | 999,710 | 835,044 | |||||||
Total current assets | 35,494,794 | 21,391,463 | |||||||
Property, plant and equipment, net of accumulated amortization and depreciation of $10,973,868 and $10,545,810, respectively | 5,316,691 | 4,198,721 | |||||||
Patents, net of accumulated amortization of $1,236,829 and $1,204,589, respectively | 774,010 | 779,100 | |||||||
Goodwill | 110,787,776 | 1,701,094 | |||||||
Contract assets | 960,000 | 960,000 | |||||||
Intangible assets | 20,400,000 | - | |||||||
Lease right of use and other assets | 1,669,775 | 920,921 | |||||||
Total assets | $ | 175,403,046 | $ | 29,951,299 | |||||
Liabilities and shareholders' equity | |||||||||
Current liabilities: | |||||||||
Accounts payable | $ | 8,596,981 | $ | 5,357,736 | |||||
Accrued expenses and other current liabilities | 4,820,229 | 2,488,514 | |||||||
Current portion of lease liabilities | 448,158 | - | |||||||
Total current liabilities | 13,865,368 | 7,846,250 | |||||||
Non current liabilities: | |||||||||
Notes payable | 29,050,722 | - | |||||||
Lease right of use liabilities | 872,341 | - | |||||||
Other non-current liabilities | 401,000 | 401,000 | |||||||
Total liabilities | 44,189,431 | 8,247,250 | |||||||
Commitments and contingencies | |||||||||
Shareholders' equity: | |||||||||
Common stock, $.0001 and $.01 par value-shares authorized 40,000,000; 15,353,185 and 9,646,728 shares issued and outstanding in each period | 1,535 | 96,468 | |||||||
Additional paid-in capital | 151,308,485 | 43,500,478 | |||||||
Accumulated deficit | (20,096,405 | ) | (21,892,897 | ) | |||||
Total shareholders' equity | 131,213,615 | 21,704,049 | |||||||
Total liabilities and shareholders' equity | $ | 175,403,046 | $ | 29,951,299 | |||||
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, merger and acquisition fees and engineering costs associated with its development of Nexus, its next generation platform.
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.
Three Months Ended | |||||||
September 30, | |||||||
2019 | 2018 | ||||||
EBITDA: | |||||||
Net income (loss) | $ | 1,796,492 | $ | (2,610,986 | ) | ||
Income tax benefit | (4,085,000 | ) | - | ||||
Depreciation and amortization | 460,296 | 366,588 | |||||
Interest expense | 36,097 | - | |||||
EBITDA | (1,792,115 | ) | (2,244,398 | ) | |||
Non-cash stock compensation | 345,084 | 1,004,498 | |||||
M&A transaction fees | 1,754,475 | - | |||||
Nexus next generation engineering | - | 595,523 | |||||
Adjusted EBITDA | $ | 307,444 | $ | (644,377 | ) | ||