News Releases
Three Months Ended | Six Months Ended | ||||||||||||
December 31, | December 31, | ||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||
Revenue | $ | 10,176,453 | $ | 8,323,845 | $ | 19,537,617 | $ | 15,604,568 | |||||
Gross Profit | $ | 7,128,374 | $ | 5,858,019 | $ | 13,738,995 | $ | 10,961,387 | |||||
GP Percentage - product revenue | 70.0% | 70.4% | 70.3% | 70.2% | |||||||||
Pretax loss | $ | (840,333 | ) | $ | (1,332,352 | ) | $ | (3,451,317 | ) | $ | (2,825,576 | ) | |
Net loss | $ | (840,333 | ) | $ | (6,856,774 | ) | $ | (3,451,317 | ) | $ | (8,068,998 | ) | |
EBITDA (1) | $ | (439,786 | ) | $ | (1,021,648 | ) | $ | (2,684,182 | ) | $ | (2,148,284 | ) | |
Adjusted EBITDA (1) | $ | 380,909 | $ | 421,578 | $ | (195,682 | ) | $ | 424,035 | ||||
December 31, | June 30, | ||||||||||||
2018 | 2018 | ||||||||||||
Long Term Debt | $ | - | $ | - | |||||||||
Cash and cash equivalents | $ | 10,173,286 | $ | 10,979,455 |
(1) Definitions and disclosures regarding non-GAAP financial information including reconciliations are included on page 6 of this press release.
“During the second quarter, we further developed our direct commercialization team while training our international distribution partners. These initiatives will enable
“Since unveiling Nexus at the 2018
“Looking ahead, we are excited about the opportunities to enhance shareholder value as we continue pursuing the Company’s next phase of growth. As we bring the next generation of ultrasonic products to market and complete our transformation to a direct commercialization platform, we remain confident in our ability to generate double-digit top-line growth and improved profitability in the second half of fiscal 2019.”
Sales Performance Supplemental Data
For the three months ended | |||||||||||||
December 31, | Net change | ||||||||||||
2018 | 2017 | $ | % | ||||||||||
Total | |||||||||||||
Consumables | $ | 7,570,395 | $ | 6,162,064 | $ | 1,408,331 | 22.9 | % | |||||
Equipment | 2,606,058 | 2,161,781 | 444,277 | 20.6 | % | ||||||||
Total | $ | 10,176,453 | $ | 8,323,845 | $ | 1,852,608 | 22.3 | % | |||||
Domestic: | |||||||||||||
Consumables | $ | 5,477,995 | $ | 4,623,545 | $ | 854,450 | 18.5 | % | |||||
Equipment | 600,559 | 776,878 | (176,319 | ) | -22.7 | % | |||||||
Total | $ | 6,078,554 | $ | 5,400,423 | $ | 678,131 | 12.6 | % | |||||
International: | |||||||||||||
Consumables | $ | 2,092,400 | $ | 1,538,519 | $ | 553,881 | 36.0 | % | |||||
Equipment | 2,005,499 | 1,384,903 | 620,596 | 44.8 | % | ||||||||
Total | $ | 4,097,899 | $ | 2,923,422 | $ | 1,174,477 | 40.2 | % |
“During the first half of fiscal 2019, we undertook a range of initiatives to eliminate inefficiencies in our procurement and distribution, including bringing new suppliers on board and diversifying our supply chain. We also fully transitioned to a significantly more capable ERP system as well as instituted new policies to ensure optimal inventory levels and fulfillment outcomes. With these initiatives now largely behind us, we are confident in our ability to successfully and efficiently meet the added demand we expect.
“As we enter the second half of fiscal 2019, we remain well-positioned to continue to invest in our products and further improve our operations and our position in the market. We are confident that we have the capital flexibility we need, including
Fiscal Second Quarter 2019 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, the impact of the pending investigation by the
Contact:
Chief Financial Officer
631-694-9555
JCIR
212-835-8500 or mson@jcir.com
MISONIX INC. and Subsidiaries | ||||||||||
Consolidated Statements of Operations | ||||||||||
(Unaudited) | ||||||||||
For the three months ended | For the six months ended | |||||||||
December 31, | December 31, | |||||||||
2018 | 2017 | 2018 | 2017 | |||||||
Revenues | ||||||||||
Product | $ 10,176,453 | $ 8,323,845 | $ 19,537,617 | $ 15,604,568 | ||||||
Total revenue | 10,176,453 | 8,323,845 | 19,537,617 | 15,604,568 | ||||||
Cost of goods sold | 3,048,079 | 2,465,826 | 5,798,622 | 4,643,181 | ||||||
Gross profit | 7,128,374 | 5,858,019 | 13,738,995 | 10,961,387 | ||||||
Operating expenses: | ||||||||||
Selling expenses | 4,800,643 | 3,919,515 | 9,535,648 | 7,490,228 | ||||||
General and administrative expenses | 2,347,184 | 2,380,860 | 5,530,568 | 4,953,991 | ||||||
Research and development expenses | 839,219 | 957,204 | 2,143,984 | 1,858,478 | ||||||
Total operating expenses | 7,987,046 | 7,257,579 | 17,210,200 | 14,302,697 | ||||||
Loss from operations | (858,672 | ) | (1,399,560 | ) | (3,471,205 | ) | (3,341,310 | ) | ||
Other income (expense): | ||||||||||
Interest income | 17,242 | 45 | 37,056 | 58 | ||||||
Royalty income | 1,105 | 71,550 | 1,105 | 524,521 | ||||||
Other | (8 | ) | (4,387 | ) | (18,273 | ) | (8,845 | ) | ||
Total other income | 18,339 | 67,208 | 19,888 | 515,734 | ||||||
Loss from operations before income taxes | (840,333 | ) | (1,332,352 | ) | (3,451,317 | ) | (2,825,576 | ) | ||
Income tax expense | - | 5,524,422 | - | 5,243,422 | ||||||
Net loss | $ (840,333 | ) | $ (6,856,774 | ) | $ (3,451,317 | ) | $ (8,068,998 | ) | ||
Net loss per share: | ||||||||||
Basic | $ (0.09 | ) | $ (0.76 | ) | $ (0.37 | ) | $ (0.90 | ) | ||
Diluted | $ (0.09 | ) | $ (0.76 | ) | $ (0.37 | ) | $ (0.90 | ) | ||
Weighted average shares - Basic | 9,322,237 | 8,977,984 | 9,210,031 | 8,968,195 | ||||||
Weighted average shares - Diluted | 9,322,237 | 8,977,984 | 9,210,031 | 8,968,195 | ||||||
Misonix, Inc. and Subsidiaries Condensed Consolidated Balance Sheets |
||||||||
December 31, | June 30, | |||||||
2018 | 2018 | |||||||
(Unaudited) | ||||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 10,173,286 | $ | 10,979,455 | ||||
Accounts receivable, less allowance for doubtful accounts of $250,000 and $200,000, respectively | 5,709,298 | 5,245,549 | ||||||
Inventories, net | 5,711,528 | 5,019,886 | ||||||
Prepaid expenses and other current assets | 601,752 | 611,647 | ||||||
Total current assets | 22,195,864 | 21,856,537 | ||||||
Property, plant and equipment, net of accumulated amortization and depreciation of $9,720,862 and $9,023,235, respectively | 4,473,859 | 4,188,378 | ||||||
Patents, net of accumulated amortization of $1,132,901 and $1,063,393, respectively | 763,044 | 757,447 | ||||||
Goodwill | 1,701,094 | 1,701,094 | ||||||
Contract assets | 960,000 | - | ||||||
Intangible and other assets | 451,315 | 517,295 | ||||||
Total assets | $ | 30,545,176 | $ | 29,020,751 | ||||
Liabilities and shareholders' equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 3,592,287 | $ | 1,794,098 | ||||
Accrued expenses and other current liabilities | 2,264,112 | 2,411,172 | ||||||
Deferred income | 5,993 | 13,303 | ||||||
Total current liabilities | 5,862,392 | 4,218,573 | ||||||
Non current liabilities | 401,000 | 401,000 | ||||||
Total liabilities | $ | 6,263,392 | $ | 4,619,573 | ||||
Commitments and contingencies | ||||||||
Shareholders' equity: | ||||||||
Common stock, $.01 par value-shares authorized 40,000,000; 9,584,178 and 9,430,466 shares issued and outstanding in each period | 95,842 | 94,305 | ||||||
Additional paid-in capital | 42,143,359 | 39,772,973 | ||||||
Accumulated deficit | (17,957,417 | ) | (15,466,100 | ) | ||||
Total shareholders' equity | 24,281,784 | 24,401,178 | ||||||
Total liabilities and shareholders' equity | $ | 30,545,176 | $ | 29,020,751 | ||||
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 engineering costs associated with its development of Nexus, its next generation platform, which will not be a recurring cost when the project is completed in the second half of fiscal 2019.
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 | Six Months Ended | ||||||||
December 31, | December 31, | ||||||||
2018 | 2017 | 2018 | 2017 | ||||||
EBITDA: | |||||||||
Net loss | $ (840,333 | ) | $ (6,856,774 | ) | $ (3,451,317 | ) | $ (8,068,998 | ) | |
Depreciation and amortization | 400,547 | 310,704 | 767,135 | 677,292 | |||||
Income tax benefits | - | 5,524,422 | - | 5,243,422 | |||||
EBITDA | (439,786 | ) | (1,021,648 | ) | (2,684,182 | ) | (2,148,284 | ) | |
Non-cash stock compensation | 500,088 | 844,601 | 1,504,586 | 1,469,894 | |||||
Nexus next generation engineering | 320,607 | 598,625 | 983,914 | 1,102,425 | |||||
Adjusted EBITDA | $ 380,909 | $ 421,578 | $ (195,682 | ) | $ 424,035 |