News Releases
Three Months Ended | Nine Months Ended | |||||||||||||
March 31, | March 31, | |||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||
Revenue | $ | 9,556,590 | $ | 12,439,132 | $ | 29,094,208 | $ | 28,043,700 | ||||||
Gross Profit | $ | 6,755,019 | $ | 9,807,239 | $ | 20,494,014 | $ | 20,768,627 | ||||||
GP Percentage - product revenue | 70.7 | % | 68.8 | % | 70.4 | % | 69.7 | % | ||||||
Pretax (loss) income | $ | (1,589,681 | ) | $ | 2,239,115 | $ | (5,040,998 | ) | $ | (587,378 | ) | |||
Net (loss) income | $ | (1,589,681 | ) | $ | 2,239,115 | $ | (5,040,998 | ) | $ | (5,830,800 | ) | |||
EBITDA (1) | $ | (1,176,610 | ) | $ | 2,576,621 | $ | (3,860,792 | ) | $ | 459,133 | ||||
Adjusted EBITDA (1) | $ | (89,638 | ) | $ | 3,983,217 | $ | (193,326 | ) | $ | 4,438,049 | ||||
March 31, | June 30, | |||||||||||||
2019 | 2018 | |||||||||||||
Long Term Debt | $ | - | $ | - | ||||||||||
Cash and cash equivalents | $ | 9,012,220 | $ | 10,979,455 |
(1) Definitions and disclosures regarding non-GAAP financial information including reconciliations are included on page 6 of this press release.
“Robust consumables and equipment sales resulted in product revenue growth of over 13% for the third quarter, when excluding
“During the third quarter, we made further progress in bringing Nexus, our new ultrasonic surgical platform, to market on the back of its unveiling at the
“Last week we announced the acquisition of Solsys Medical in an all-stock transaction that squarely meets our criteria in terms of advancing Misonix’s goals for growth and the enhancement of shareholder value. This merger creates a platform enterprise with meaningful revenue scale and commercial reach. The combined entity will have dedicated wound and surgical sales forces with over 130 resources and is expected to generate pro-forma annual revenues in excess of
“We reiterate our guidance for product revenue growth of 20% for full fiscal year 2019, and for gross profit margins of 70%. Going forward, we believe that the direction we are headed in will enable us to meet our goal of enhancing long-term shareholder value as we move through the balance of fiscal 2019 and beyond.”
Sales Performance Supplemental Data
For the three months ended | ||||||||||||||
March 31, | Net change | |||||||||||||
2019 | 2018 | $ | % | |||||||||||
Total | ||||||||||||||
Consumables | $ | 6,870,398 | $ | 5,898,937 | $ | 971,461 | 16.5 | % | ||||||
Equipment | 2,686,192 | 2,530,195 | 155,997 | 6.2 | % | |||||||||
Total Product | 9,556,590 | 8,429,132 | 1,127,458 | 13.4 | % | |||||||||
License | - | 4,010,000 | (4,010,000 | ) | -100.0 | % | ||||||||
Total | $ | 9,556,590 | $ | 12,439,132 | $ | (2,882,542 | ) | -23.2 | % | |||||
Domestic: | ||||||||||||||
Consumables | $ | 4,862,308 | $ | 4,340,759 | $ | 521,549 | 12.0 | % | ||||||
Equipment | 547,470 | 590,269 | (42,799 | ) | -7.3 | % | ||||||||
Total | $ | 5,409,778 | $ | 4,931,028 | $ | 478,750 | 9.7 | % | ||||||
International: | ||||||||||||||
Consumables | $ | 2,008,090 | $ | 1,558,178 | $ | 449,912 | 28.9 | % | ||||||
Equipment | 2,138,722 | 1,939,926 | 198,796 | 10.2 | % | |||||||||
Total | $ | 4,146,812 | $ | 3,498,104 | $ | 648,708 | 18.5 | % | ||||||
License | $ | - | $ | 4,010,000 | $ | (4,010,000 | ) | 100.0 | % | |||||
“The initiatives we implemented during the first half of the year began to take hold in the fiscal third quarter and are helping us to eliminate inefficiencies across our enterprise-wide operations allowing us to successfully and efficiently meet the increasing demand, particularly in our consumables, and to best position us to fully maximize the potential of our next generation of ultrasonic products. In addition, we are already working with our operating teams to develop a comprehensive integration plan that will ensure a smooth transition of Solsys Medical onto our platform, which will enable us to more quickly realize the value of this compelling combination for our patients and our shareholders.
“Looking ahead, we have the capital flexibility we need on the back of the Solsys Medical acquisition to continue to support and invest in our products and in our people, and to diligently and effectively pursue new opportunities.”
Fiscal Third 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 the ability to satisfy the conditions to closing of the transactions (the “Transactions”) with
Contact:
Joe Dwyer
Chief Financial Officer JCIR
631-694-9555
Condensed Consolidated Statements of Operations
(Unaudited)
For the three months ended | For the nine months ended | |||||||||||||
March 31, | March 31, | |||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||
Revenues | ||||||||||||||
Product | $ | 9,556,590 | $ | 8,429,132 | $ | 29,094,208 | $ | 24,033,700 | ||||||
License | - | 4,010,000 | - | 4,010,000 | ||||||||||
Total revenue | 9,556,590 | 12,439,132 | 29,094,208 | 28,043,700 | ||||||||||
Cost of goods sold | 2,801,571 | 2,631,893 | 8,600,194 | 7,275,073 | ||||||||||
Gross profit | 6,755,019 | 9,807,239 | 20,494,014 | 20,768,627 | ||||||||||
Operating expenses: | ||||||||||||||
Selling expenses | 4,414,710 | 4,447,421 | 13,950,357 | 11,937,649 | ||||||||||
General and administrative expenses | 2,512,510 | 1,925,086 | 8,043,078 | 6,879,077 | ||||||||||
Research and development expenses | 1,426,483 | 1,199,895 | 3,570,468 | 3,058,374 | ||||||||||
Total operating expenses | 8,353,703 | 7,572,402 | 25,563,903 | 21,875,100 | ||||||||||
(Loss) income from operations | (1,598,684 | ) | 2,234,837 | (5,069,889 | ) | (1,106,473 | ) | |||||||
Other income (expense): | ||||||||||||||
Interest income | 22,653 | 9,074 | 59,708 | 9,131 | ||||||||||
Royalty income | - | 916 | - | 525,438 | ||||||||||
Other | (13,650 | ) | (5,712 | ) | (30,817 | ) | (15,474 | ) | ||||||
Total other income | 9,003 | 4,278 | 28,891 | 519,095 | ||||||||||
(Loss) income from operations before income taxes | (1,589,681 | ) | 2,239,115 | (5,040,998 | ) | (587,378 | ) | |||||||
Income tax expense | - | - | - | 5,243,422 | ||||||||||
Net (loss) income | $ | (1,589,681 | ) | $ | 2,239,115 | $ | (5,040,998 | ) | $ | (5,830,800 | ) | |||
Net (loss) income per share: | ||||||||||||||
Basic | $ | (0.17 | ) | $ | 0.24 | $ | (0.55 | ) | $ | (0.65 | ) | |||
Diluted | $ | (0.17 | ) | $ | 0.23 | $ | (0.55 | ) | $ | (0.65 | ) | |||
Weighted average shares - Basic | 9,390,665 | 9,028,506 | 9,245,879 | 8,999,938 | ||||||||||
Weighted average shares - Diluted | 9,390,665 | 9,549,144 | 9,245,879 | 8,999,938 |
Condensed Consolidated Balance Sheets
March 31, | June 30, | |||||||
2019 | 2018 | |||||||
(Unaudited) | ||||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 9,012,220 | $ | 10,979,455 | ||||
Accounts receivable, less allowance for doubtful accounts of $160,000 and $200,000, respectively |
5,333,839 | 5,245,549 | ||||||
Inventories, net | 6,332,586 | 5,019,886 | ||||||
Prepaid expenses and other current assets | 864,452 | 611,647 | ||||||
Total current assets | 21,543,097 | 21,856,537 | ||||||
Property, plant and equipment, net of accumulated amortization and depreciation of $10,097,703 and $9,023,235, respectively |
4,394,548 | 4,188,378 | ||||||
Patents, net of accumulated amortization of $1,169,131 and $1,063,393, respectively |
779,621 | 757,447 | ||||||
Goodwill | 1,701,094 | 1,701,094 | ||||||
Contract assets | 960,000 | - | ||||||
Intangible and other assets | 433,842 | 517,295 | ||||||
Total assets | $ | 29,812,202 | $ | 29,020,751 | ||||
Liabilities and shareholders' equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 3,521,657 | $ | 1,794,098 | ||||
Accrued expenses and other current liabilities | 2,325,023 | 2,411,172 | ||||||
Deferred income | 3,995 | 13,303 | ||||||
Total current liabilities | 5,850,675 | 4,218,573 | ||||||
Non current liabilities | 401,000 | 401,000 | ||||||
Total liabilities | $ | 6,251,675 | $ | 4,619,573 | ||||
Commitments and contingencies | ||||||||
Shareholders' equity: | ||||||||
Common stock, $.01 par value-shares authorized 40,000,000; 9,641,103 and 9,430,466 shares issued and outstanding in each period |
96,411 | 94,305 | ||||||
Additional paid-in capital | 43,011,214 | 39,772,973 | ||||||
Accumulated deficit | (19,547,098 | ) | (15,466,100 | ) | ||||
Total shareholders' equity | 23,560,527 | 24,401,178 | ||||||
Total liabilities and shareholders' equity | $ | 29,812,202 | $ | 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.
Misonix, Inc. and Subsidiaries | ||||||||||||
Reconciliation of GAAP Results to Non-GAAP Measures | ||||||||||||
(unaudited) | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
March 31, | March 31, | |||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||
EBITDA: | ||||||||||||
Net (loss) income | $ | (1,589,681 | ) | $ | 2,239,115 | $ | (5,040,998 | ) | $ | (5,830,800 | ) | |
Depreciation and amortization | 413,071 | 337,506 | 1,180,206 | 1,046,511 | ||||||||
Income tax expense | - | - | - | 5,243,422 | ||||||||
EBITDA | (1,176,610 | ) | 2,576,621 | (3,860,792 | ) | 459,133 | ||||||
Non-cash stock compensation | 384,589 | 611,126 | 1,889,175 | 2,081,021 | ||||||||
Nexus next generation engineering | 702,383 | 795,470 | 1,778,291 | 1,897,895 | ||||||||
Adjusted EBITDA | $ | (89,638 | ) | $ | 3,983,217 | $ | (193,326 | ) | $ | 4,438,049 | ||