Misonix, Inc. (Nasdaq: MSON) (“Misonix” or the “Company”), a
provider of minimally invasive therapeutic ultrasonic medical
devices and regenerative products that enhance clinical outcomes,
today reported financial results for the fiscal 2021 second quarter
ended December 31, 2020 as summarized below:
|
Three Months
Ended |
|
Six Months
Ended |
|
December 31, |
|
December 31, |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
|
|
Revenue |
$ |
18,256,410 |
|
|
$ |
19,721,986 |
|
|
$ |
35,991,752 |
|
|
$ |
30,867,908 |
|
Gross
profit |
$ |
12,991,711 |
|
|
$ |
13,776,878 |
|
|
$ |
25,616,452 |
|
|
$ |
21,686,153 |
|
Gross profit
percentage |
|
71.2 |
% |
|
|
69.9 |
% |
|
|
71.2 |
% |
|
|
70.3 |
% |
Pretax
loss |
$ |
(1,264,597 |
) |
|
$ |
(5,088,973 |
) |
|
$ |
(6,243,249 |
) |
|
$ |
(7,377,481 |
) |
Income tax
benefit |
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
4,085,000 |
|
Net
loss |
$ |
(1,264,597 |
) |
|
$ |
(5,088,973 |
) |
|
$ |
(6,243,249 |
) |
|
$ |
(3,292,481 |
) |
|
|
|
|
|
|
|
EBITDA
(1) |
$ |
802,564 |
|
|
$ |
(3,290,062 |
) |
|
$ |
(2,118,986 |
) |
|
$ |
(5,082,177 |
) |
Adjusted
EBITDA (1) |
$ |
1,555,575 |
|
|
$ |
(1,925,410 |
) |
|
$ |
(599,842 |
) |
|
$ |
(1,617,966 |
) |
|
|
|
|
|
|
|
|
December 31, |
|
June 30, |
|
|
|
|
2020 |
|
2020 |
|
|
|
|
|
|
|
|
|
|
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 million decreased 7.4%, compared to $19.7 million in 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 million bad debt recovery in the fiscal 2021 second quarter,
and $1.0 million contract 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 $0.07 per diluted
share, compared to a net loss of $5.1 million, or a loss of $0.33
per 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 million in the fiscal 2020 second quarter.
- In December 2020, Misonix announced
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.
Stavros Vizirgianakis, President and Chief
Executive Officer of Misonix stated, “While COVID-19 remains a
challenge for the global healthcare industry, our fiscal 2021
second quarter results reflect the ongoing strong execution by our
team in generating sequential growth in total product revenue since
the peak of the pandemic in June, as well as significantly improved
financial performance since that time. Notably, the meaningful
measures we have taken to reduce costs and improve operating
efficiencies over the past nine months, combined with our strong
gross profit margin of approximately 70%, enabled us to achieve
positive second fiscal quarter adjusted EBITDA.
“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 Misonix for the future and remain confident in our
ability to achieve our goals for long-term profitable growth and
enhanced shareholder value.”
Sales Performance Supplemental
Data
|
|
For the three months
ended |
|
|
|
|
|
December 31, |
|
Net change |
|
|
2020 |
|
2019 |
|
$ |
% |
Total |
|
|
|
|
|
|
|
Surgical |
|
$ |
10,119,125 |
|
$ |
9,988,559 |
|
$ |
130,566 |
|
1.3 |
% |
Wound |
|
|
8,137,285 |
|
|
9,733,427 |
|
|
(1,596,142 |
) |
-16.4 |
% |
Total |
|
$ |
18,256,410 |
|
$ |
19,721,986 |
|
$ |
(1,465,576 |
) |
-7.4 |
% |
|
|
|
|
|
|
|
|
Domestic: |
|
|
|
|
|
|
|
Surgical |
|
$ |
6,771,467 |
|
$ |
5,652,381 |
|
$ |
1,119,086 |
|
19.8 |
% |
Wound |
|
|
8,054,039 |
|
|
9,606,332 |
|
|
(1,552,293 |
) |
-16.2 |
% |
Total |
|
$ |
14,825,506 |
|
$ |
15,258,713 |
|
$ |
(433,207 |
) |
-2.8 |
% |
|
|
|
|
|
|
|
|
International: |
|
|
|
|
|
|
|
Surgical |
|
$ |
3,347,658 |
|
$ |
4,336,178 |
|
$ |
(988,520 |
) |
-22.8 |
% |
Wound |
|
|
83,246 |
|
|
127,095 |
|
|
(43,849 |
) |
-34.5 |
% |
Total |
|
$ |
3,430,904 |
|
$ |
4,463,273 |
|
$ |
(1,032,369 |
) |
-23.1 |
% |
|
|
|
|
|
|
|
|
Joe Dwyer, Chief Financial Officer, added, “We
are pleased with the healthy sequential growth in product revenue
from $17.7 million in our fiscal first quarter to $18.3 million in
the current quarter against the backdrop of a difficult operating
environment. Notably, the actions we have taken since the beginning
of the pandemic to streamline our cost structure enabled us to
meaningfully lower cash used in operations to $1.4 million in the
current quarter, and report positive Adjusted EBITDA of $1.6
million in the fiscal 2021 second quarter, compared to an Adjusted
EBITDA loss of $1.9 million in the prior year. In addition, we
continue to lower our cash burn, and have restructured our term
debt to lower our borrowing rate, extend the maturity date, and
extend the debt repayment schedule.
“With a strong balance sheet reflecting over $32
million in cash at December 31, 2020, we
believe Misonix is well positioned to withstand the
near-term challenges related to COVID-19 and remain confident in
the long-term prospects of our business. Although it is difficult
to predict what the impact of COVID-19 will be in the coming
months, we are optimistic that procedural volumes will grow as we
move further into the year, following broad vaccine
distribution.”
Fiscal Second Quarter 2021 Conference
Call and WebcastMisonix will host a conference call and
webcast today, February 4, 2021, at 4:30 p.m. ET to discuss its
financial results and operations, and host a question and answer
session. The dial-in number for the audio conference call is
866-248-8441 (domestic) or 323-289-6576 (international) conference
ID: 2793331. Participants may also listen to a live webcast of the
call at the Company’s website through the “Events and
Presentations” section under “Investor Relations” at
www.misonix.com. Following its completion, a replay of the webcast
will be available for 30 days on the Company’s website,
www.misonix.com.
About Misonix, Inc.Misonix,
Inc. (Nasdaq: MSON) is a provider of minimally invasive therapeutic
ultrasonic medical devices and regenerative tissue products. Its
surgical team markets and sells BoneScalpel and SonaStar, which
facilitate precise bone sculpting and removal of soft and hard
tumors and tissue, primarily in the areas of neurosurgery,
orthopedic, plastic and maxillo-facial surgery. The Company's wound
team markets and sells TheraSkin, Therion, TheraGenesis and
SonicOne to debride, treat and heal chronic and traumatic wounds in
inpatient, outpatient and physician office sites of service. At
Misonix, Better Matters! That is why throughout the Company’s
history, Misonix has maintained its commitment to medical
technology innovation and the development of products that
radically improve outcomes for patients. Additional information is
available on the Company's web site at www.misonix.com.
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 Securities and
Exchange Commission, including our Annual Report on Form 10-K for
the fiscal year ended June 30, 2020, subsequent Quarterly Reports
on Form 10-Q and Current Reports on Form 8-K. The Company disclaims
any obligation to update its forward-looking statements.
Contact: |
|
Joe
Dwyer |
Norberto
Aja, Jennifer Neuman |
Chief
Financial Officer |
JCIR |
Misonix,
Inc. |
212-835-8500
or mson@jcir.com |
631-694-9555 |
|
Misonix, Inc. and
SubsidiariesCondensed Consolidated Statements of
Operations(Unaudited)
|
For the three months
ended |
|
For the six months
ended |
|
December 31, |
|
December 31, |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
Revenue |
$ |
18,256,410 |
|
|
$ |
19,721,986 |
|
|
$ |
35,991,752 |
|
|
$ |
30,867,908 |
|
Cost of
revenue |
|
5,264,699 |
|
|
|
5,945,108 |
|
|
|
10,375,300 |
|
|
|
9,181,755 |
|
Gross
profit |
|
12,991,711 |
|
|
|
13,776,878 |
|
|
|
25,616,452 |
|
|
|
21,686,153 |
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
Selling expenses |
|
8,423,075 |
|
|
|
11,800,565 |
|
|
|
19,392,753 |
|
|
|
17,001,147 |
|
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): |
|
|
|
|
|
|
|
Interest income |
|
2,920 |
|
|
|
5,293 |
|
|
|
4,012 |
|
|
|
24,170 |
|
Interest expense |
|
(949,105 |
) |
|
|
(833,035 |
) |
|
|
(1,882,828 |
) |
|
|
(869,132 |
) |
Other |
|
279 |
|
|
|
(380 |
) |
|
|
1,696 |
|
|
|
(1,143 |
) |
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 |
$ |
(1,264,597 |
) |
|
$ |
(5,088,973 |
) |
|
$ |
(6,243,249 |
) |
|
$ |
(3,292,481 |
) |
|
|
|
|
|
|
|
|
Net loss per
share: |
|
|
|
|
|
|
|
Basic |
$ |
(0.07 |
) |
|
$ |
(0.33 |
) |
|
$ |
(0.36 |
) |
|
$ |
(0.26 |
) |
Diluted |
$ |
(0.07 |
) |
|
$ |
(0.33 |
) |
|
$ |
(0.36 |
) |
|
$ |
(0.26 |
) |
|
|
|
|
|
|
|
|
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 |
|
|
|
|
|
|
|
|
|
Misonix, Inc. and
SubsidiariesCondensed Consolidated Balance
Sheets
|
|
|
|
|
|
|
|
December 31, |
|
|
June 30, |
|
|
2020 |
|
|
2020 |
|
|
(Unaudited) |
|
|
|
Assets |
|
|
|
|
|
Current
assets: |
|
|
|
|
|
Cash and cash equivalents |
$ |
32,833,836 |
|
|
$ |
37,978,809 |
|
Accounts
receivable, less allowance for doubtful accounts of $2,202,392 and
$2,573,968, respectively |
|
11,077,214 |
|
|
|
11,064,768 |
|
Inventories,
net |
|
13,222,262 |
|
|
|
14,010,684 |
|
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 $14,089,699 and $12,715,917, respectively |
|
8,023,305 |
|
|
|
7,304,258 |
|
Patents, net
of accumulated amortization of $1,413,910 and $1,341,976,
respectively |
|
786,007 |
|
|
|
784,318 |
|
Goodwill |
|
108,234,664 |
|
|
|
108,310,350 |
|
Intangible
assets |
|
20,485,417 |
|
|
|
21,281,136 |
|
Lease
right-of-use assets |
|
1,202,017 |
|
|
|
1,098,830 |
|
Other
assets |
|
246,230 |
|
|
|
322,310 |
|
Total
assets |
$ |
197,359,122 |
|
|
$ |
203,823,707 |
|
|
|
|
|
|
|
Liabilities and shareholders' equity |
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
Accounts
payable |
$ |
2,656,252 |
|
|
$ |
4,273,568 |
|
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 |
|
|
|
|
|
|
|
Non-current
liabilities: |
|
|
|
|
|
Notes
payable |
|
41,006,645 |
|
|
|
38,595,505 |
|
Lease
liabilities |
|
739,714 |
|
|
|
723,553 |
|
Deferred tax
liabilities |
|
33,293 |
|
|
|
33,293 |
|
Other
non-current liabilities |
|
498,938 |
|
|
|
516,665 |
|
Total
liabilities |
|
55,407,715 |
|
|
|
57,172,137 |
|
|
|
|
|
|
|
Commitments
and contingencies |
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity |
|
|
|
|
|
Common
stock, $.0001 par value; shares authorized 40,000,000; 17,377,748
and 17,369,435 shares issued and outstanding in each period |
|
1,738 |
|
|
|
1,737 |
|
Additional
paid-in capital |
|
187,504,189 |
|
|
|
185,961,104 |
|
Accumulated
deficit |
|
(45,554,520 |
) |
|
|
(39,311,271 |
) |
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
MeasuresThe 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 September 30, 2020, the Company will no longer exclude bad
debt expense from the calculation Adjusted EBITDA, and prior
comparative periods will be adjusted accordingly.
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 September 30, 2019. The Company has
presented pro forma revenue to show revenue on a comparable basis
as if Solsys had been acquired at the beginning of the comparative
periods presented.
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 |
|
|
|
|
December 31, |
|
Net Change |
|
2020 |
|
2019 |
|
$ |
% |
|
|
|
|
|
|
|
Revenue as reported |
$ |
35,991,752 |
|
|
$ |
30,867,908 |
|
|
$ |
5,123,844 |
|
|
16.6 |
% |
Solsys
revenue |
|
- |
|
|
|
8,344,795 |
|
|
|
|
|
|
|
|
|
|
|
Pro forma
revenue |
$ |
35,991,752 |
|
|
$ |
39,212,703 |
|
|
$ |
(3,220,951 |
) |
|
-8.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Six Months
Ended |
|
December 31, |
|
December 31, |
|
2020 |
|
2019 |
|
2020 |
2019 |
|
|
|
|
|
|
|
EBITDA: |
|
|
|
|
|
|
Net
loss |
$ |
(1,264,597 |
) |
|
$ |
(5,088,973 |
) |
|
$ |
(6,243,249 |
) |
$ |
(3,292,481 |
) |
Income tax
benefit |
|
- |
|
|
|
- |
|
|
|
- |
|
|
(4,085,000 |
) |
Depreciation
and amortization |
|
1,118,056 |
|
|
|
965,876 |
|
|
|
2,241,435 |
|
|
1,426,172 |
|
Interest
expense |
|
949,105 |
|
|
|
833,035 |
|
|
|
1,882,828 |
|
|
869,132 |
|
EBITDA |
|
802,564 |
|
|
|
(3,290,062 |
) |
|
|
(2,118,986 |
) |
|
(5,082,177 |
) |
|
|
|
|
|
|
|
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 |
|
Adjusted
EBITDA |
$ |
1,555,575 |
|
|
$ |
(1,925,410 |
) |
|
$ |
(599,842 |
) |
$ |
(1,617,966 |
) |
|
|
|
|
|
|
|
Misonix (NASDAQ:MSON)
Gráfica de Acción Histórica
De May 2024 a Jun 2024
Misonix (NASDAQ:MSON)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024