Apyx Medical Corporation Reports First Quarter 2022 Financial Results and Updates Full Year 2022 Financial Outlook
Apyx Medical Corporation (NASDAQ:APYX) reported a strong financial performance for Q1 2022, with total revenue of $12.5 million, marking a 45% increase year-over-year. The Advanced Energy segment contributed $10.8 million in revenue, a growth of 41%, while OEM revenue surged 72% to $1.7 million. Despite this success, the company reported a net loss of $5.9 million. The outlook for 2022 has been revised to forecast total revenue between $52.5 million and $59.0 million, reflecting growth of 8% to 22%.
- Total revenue for Q1 2022 increased 45% year-over-year to $12.5 million.
- Advanced Energy revenue grew 41% year-over-year to $10.8 million, driven by strong handpiece sales.
- OEM revenue rose 72% year-over-year to $1.7 million.
- Updated full-year revenue guidance now projected at $52.5 million to $59 million, indicating growth.
- Net loss attributable to stockholders increased to $5.9 million compared to $4.9 million in Q1 2021.
- Adjusted EBITDA loss for Q1 2022 worsened to $4.0 million from $3.4 million in Q1 2021.
- FDA Safety Communication negatively impacted new customer adoption in the U.S.
Advanced Energy sales increased
First Quarter 2022 Financial Summary:
-
Total revenue of
, up$12.5 million 45% year-over-year.-
Advanced Energy revenue of
, up$10.8 million 41% year-over-year. -
OEM revenue of
, up$1.7 million 72% year-over-year.
-
Advanced Energy revenue of
-
Net loss attributable to stockholders of
, compared to$5.9 million for the first quarter of 2021.$4.9 million -
Adjusted EBITDA loss of
, compared to adjusted EBITDA loss of$4.0 million for the first quarter of 2021.$3.4 million
First Quarter 2022 Operating Summary:
-
On
February 17, 2022 , the Company announced the publication of a peer-reviewed article in the journal, Lasers in Surgery and Medicine, the official journal of theAmerican Society for Laser Medicine & Surgery , featuring the results of itsU.S. IDE clinical study evaluating the Renuvion Dermal Handpiece using Apyx’s Helium Plasma Technology for dermal resurfacing procedures. -
On
February 17, 2022 , the Company announced the submission of a 510(k) premarket notification (“510(k) submission”) to theU.S. Food and Drug Administration , which is intended to obtain a general indication for use of the Renuvion Dermal handpiece in dermatological procedures requiring ablation and resurfacing of the skin. -
On
March 14, 2022 , the Company announced it had been notified by theU.S. Food and Drug Administration (“FDA”; “Agency”) that the Agency intended to post a Medical Device Safety Communication related to the Company’s Advanced Energy products. The Safety Communication was subsequently posted by the FDA onMarch 14, 2022 .
Highlights & Developments Subsequent to Quarter End:
-
On
April 4, 2022 , the Company announced it had submitted a 510(k) premarket notification to theU.S. Food and Drug Administration . The 510(k) submission is intended to expand its general indication for the Renuvion APR Handpiece to include a specific indication for use in subcutaneous dermatological and aesthetic procedures to achieve thermal coagulation/contraction to improve the appearance of lax (loose) skin in the neck and submental region.
Management Comments:
“We are pleased to report total revenue results that exceeded the high-end of the growth expectations we provided on our fourth quarter earnings call,” said
The following tables present revenue by reportable segment and geography:
|
Three Months Ended
|
|
Increase/Decrease |
||||||||||||
(In thousands) |
2022 |
|
2021 |
|
$ Change |
|
% Change |
||||||||
Advanced Energy |
$ |
10,814 |
|
$ |
7,660 |
|
$ |
3,154 |
|
41.2 |
% |
||||
OEM |
|
1,679 |
|
|
978 |
|
|
701 |
|
71.7 |
% |
||||
Total |
$ |
12,493 |
|
$ |
8,638 |
|
$ |
3,855 |
|
44.6 |
% |
|
Three Months Ended
|
|
Increase/Decrease |
||||||||||||
(In thousands) |
2022 |
|
2021 |
|
$ Change |
|
% Change |
||||||||
Domestic |
$ |
7,548 |
|
$ |
5,566 |
|
$ |
1,982 |
|
35.6 |
% |
||||
International |
|
4,945 |
|
|
3,072 |
|
|
1,873 |
|
61.0 |
% |
||||
Total |
$ |
12,493 |
|
$ |
8,638 |
|
$ |
3,855 |
|
44.6 |
% |
First Quarter 2022 Results:
Total revenue for the three months ended
Gross profit for the three months ended
Operating expenses for the three months ended
Income tax expense for the three months ended
Net loss attributable to stockholders for the three months ended
Full Year 2022 Financial Outlook:
The Company is updating financial guidance for the year ending
-
Total revenue in the range of
to$52.5 million , representing growth of$59.0 million 8% to22% year-over-year, compared to total revenue of for the year ended$48.5 million December 31, 2021 . The Company’s prior guidance range for total revenue was to$50.0 million , representing growth of$63.0 million 3% to30% year-over-year.-
Total revenue guidance assumes:
-
Advanced Energy revenue in the range of approximately
to$46.0 million , representing growth of$52.0 million 7% to21% year-over-year, compared to Advanced Energy revenue of for the year ended$43.0 million December 31, 2021 . The Company’s prior guidance range for Advanced Energy revenue was to$43.5 million , representing growth of$56.0 million 1% to30% year-over-year.-
The Advanced Energy revenue range reflects potential negative impacts in the
U.S. on new customer adoption, and on procedure-related demand for handpieces, as a result of the FDA Safety Communication onMarch 14, 2022 . - The Advanced Energy revenue range continues to assume contributions from the initial commercial launches for new specific clinical indications for dermal resurfacing and skin laxity procedures, based on the Company’s target of receiving FDA 510(k) clearances related to these procedures by the end of the third quarter of 2022.
- The Advanced Energy revenue range continues to assume that international growth is driven by demand in existing international markets.
-
The Advanced Energy revenue range reflects potential negative impacts in the
-
OEM revenue in the range of
to$6.5 million , which is unchanged from the Company's prior guidance, representing growth of$7.0 million 18% to27% year-over-year, compared to for the year ended$5.5 million December 31, 2021 .
-
Advanced Energy revenue in the range of approximately
-
Total revenue guidance assumes:
-
Net loss attributable to stockholders in the range of
to$19.0 million , compared to net loss attributable to stockholders of$14.7 million for the year ended$15.2 million December 31, 2021 . The Company’s prior guidance range for net loss attributable to stockholders was to$21.1 million .$12.1 million -
Adjusted EBITDA loss in the range of
to$10.1 million , compared to adjusted EBITDA loss of$6.4 million for the year ended$8.8 million December 31, 2021 . The Company’s prior guidance range for Adjusted EBITDA loss was to$12.3 million .$3.0 million
Conference Call Details:
Management will host a conference call at
https://services.choruscall.com/mediaframe/webcast.html?webcastid=OHGg8TE0
A telephonic replay will be available approximately two hours after the end of the call through
About
Cautionary Statement on Forward-Looking Statements:
Certain matters discussed in this release and oral statements made from time to time by representatives of the Company may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the Federal securities laws. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved.
All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including but not limited to, any statements regarding the potential impact of the COVID-19 pandemic and the actions by governments, businesses and individuals in response to the situation; projections of net revenue, margins, expenses, net earnings, net earnings per share, or other financial items; projections or assumptions concerning the possible receipt by the Company of any regulatory approvals from any government agency or instrumentality including but not limited to the
Forward-looking statements and information are subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected. Many of these factors are beyond the Company’s ability to control or predict. Important factors that may cause the Company’s actual results to differ materially and that could impact the Company and the statements contained in this release include but are not limited to risks, uncertainties and assumptions relating to the regulatory environment in which the Company is subject to, including the Company’s ability to gain requisite approvals for its products from the
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (Unaudited) |
||||||||
|
Three Months Ended
|
|||||||
|
|
2022 |
|
|
|
2021 |
|
|
Sales |
$ |
12,493 |
|
|
$ |
8,638 |
|
|
Cost of sales |
|
4,274 |
|
|
|
2,778 |
|
|
Gross profit |
|
8,219 |
|
|
|
5,860 |
|
|
Other costs and expenses: |
|
|
|
|||||
Research and development |
|
1,158 |
|
|
|
1,115 |
|
|
Professional services |
|
2,286 |
|
|
|
1,521 |
|
|
Salaries and related costs |
|
5,181 |
|
|
|
4,245 |
|
|
Selling, general and administrative |
|
5,465 |
|
|
|
3,724 |
|
|
Total other costs and expenses |
|
14,090 |
|
|
|
10,605 |
|
|
Loss from operations |
|
(5,871 |
) |
|
|
(4,745 |
) |
|
Interest income |
|
2 |
|
|
|
3 |
|
|
Interest expense |
|
(8 |
) |
|
|
(4 |
) |
|
Other loss, net |
|
(21 |
) |
|
|
(93 |
) |
|
Total other loss, net |
|
(27 |
) |
|
|
(94 |
) |
|
Loss before income taxes |
|
(5,898 |
) |
|
|
(4,839 |
) |
|
Income tax expense |
|
70 |
|
|
|
66 |
|
|
Net loss |
|
(5,968 |
) |
|
|
(4,905 |
) |
|
Net loss attributable to non-controlling interest |
|
(23 |
) |
|
|
(4 |
) |
|
Net loss attributable to stockholders |
$ |
(5,945 |
) |
|
$ |
(4,901 |
) |
|
|
|
|
|
|||||
Loss per share |
|
|
|
|||||
Basic and Diluted |
$ |
(0.17 |
) |
|
$ |
(0.14 |
) |
|
|
|
|
|
|||||
Weighted average number of shares outstanding - basic and diluted |
|
34,429 |
|
|
|
34,302 |
|
CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share and per share data) |
||||||||
|
|
|
|
|||||
ASSETS |
|
|
|
|||||
Current assets: |
|
|
|
|||||
Cash and cash equivalents |
$ |
26,234 |
|
|
$ |
30,870 |
|
|
Trade accounts receivable, net of allowance of |
|
12,363 |
|
|
|
13,038 |
|
|
Income tax receivables |
|
7,642 |
|
|
|
7,642 |
|
|
Other receivables |
|
112 |
|
|
|
483 |
|
|
Inventories, net of provision for obsolescence of |
|
7,019 |
|
|
|
6,778 |
|
|
Prepaid expenses and other current assets |
|
1,441 |
|
|
|
1,926 |
|
|
Total current assets |
|
54,811 |
|
|
|
60,737 |
|
|
Property and equipment, net |
|
6,655 |
|
|
|
6,575 |
|
|
Operating lease right-of-use assets |
|
90 |
|
|
|
121 |
|
|
Finance lease right-of-use assets |
|
127 |
|
|
|
178 |
|
|
Other assets |
|
1,314 |
|
|
|
1,110 |
|
|
Total assets |
$ |
62,997 |
|
|
$ |
68,721 |
|
|
|
|
|
|
|||||
LIABILITIES AND EQUITY |
|
|
|
|||||
Current liabilities: |
|
|
|
|||||
Accounts payable |
$ |
2,562 |
|
|
$ |
2,631 |
|
|
Accrued expenses and other liabilities |
|
8,837 |
|
|
|
10,287 |
|
|
Current portion of operating lease liabilities |
|
89 |
|
|
|
122 |
|
|
Current portion of finance lease liabilities |
|
116 |
|
|
|
165 |
|
|
Total current liabilities |
|
11,604 |
|
|
|
13,205 |
|
|
Long-term finance lease liabilities |
|
13 |
|
|
|
18 |
|
|
Long-term contract liabilities |
|
1,386 |
|
|
|
1,323 |
|
|
Other liabilities |
|
151 |
|
|
|
166 |
|
|
Total liabilities |
|
13,154 |
|
|
|
14,712 |
|
|
EQUITY |
|
|
|
|||||
Common stock, |
|
34 |
|
|
|
34 |
|
|
Additional paid-in capital |
|
68,023 |
|
|
|
66,221 |
|
|
Accumulated deficit |
|
(18,496 |
) |
|
|
(12,551 |
) |
|
Total stockholders' equity |
|
49,561 |
|
|
|
53,704 |
|
|
Non-controlling interest |
|
282 |
|
|
|
305 |
|
|
Total equity |
|
49,843 |
|
|
|
54,009 |
|
|
Total liabilities and equity |
$ |
62,997 |
|
|
$ |
68,721 |
|
RECONCILIATION OF GAAP NET LOSS RESULTS TO NON-GAAP ADJUSTED EBITDA
(Unaudited)
Use of Non-GAAP Financial Measure
We present the following non-GAAP measure because we believe such measure is a useful indicator of our operating performance. Our management uses this non-GAAP measure principally as a measure of our operating performance and believes that this measure is useful to investors because it is frequently used by analysts, investors and other interested parties to evaluate companies in our industry. We also believe that this measure is useful to our management and investors as a measure of comparative operating performance from period to period. The non-GAAP financial measure presented in this release should not be considered as a substitute for, or preferable to, the measures of financial performance prepared in accordance with GAAP.
The Company has presented the following non-GAAP financial measure in this press release: adjusted EBITDA. The Company defines adjusted EBITDA as its reported net income (loss) attributable to stockholders (GAAP) plus income tax expense (benefit), interest, depreciation and amortization, and stock-based compensation expense.
(In thousands) |
Three Months Ended
|
|||||||
|
|
2022 |
|
|
|
2021 |
|
|
Net loss attributable to stockholders |
$ |
(5,945 |
) |
|
$ |
(4,901 |
) |
|
Interest income |
|
(2 |
) |
|
|
(3 |
) |
|
Interest expense |
|
8 |
|
|
|
4 |
|
|
Income tax expense |
|
70 |
|
|
|
66 |
|
|
Depreciation and amortization |
|
225 |
|
|
|
227 |
|
|
Stock based compensation |
|
1,650 |
|
|
|
1,194 |
|
|
Adjusted EBITDA |
$ |
(3,994 |
) |
|
$ |
(3,413 |
) |
The following unaudited table presents a reconciliation of net loss attributable to stockholders to Adjusted EBITDA loss for the year ending
(In millions) |
Year Ending |
|||
Net loss attributable to stockholders |
$ |
(16.9 |
) |
|
Interest income |
|
— |
|
|
Interest expense |
|
— |
|
|
Income tax expense |
|
0.6 |
|
|
Depreciation and amortization |
|
1.2 |
|
|
Stock based compensation |
|
6.9 |
|
|
Adjusted EBITDA |
$ |
(8.2 |
) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20220512005195/en/
Investor Relations:
ICR Westwicke on behalf of
investor.relations@apyxmedical.com
Source:
FAQ
What were Apyx Medical's total revenues for Q1 2022?
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