Sensus Healthcare Reports Third Quarter 2024 Financial Results With Revenues More than Doubling Versus 2023 Third Quarter
Sensus Healthcare (SRTS) reported strong Q3 2024 financial results with revenues more than doubling to $8.8 million compared to $3.9 million in Q3 2023. The company achieved net income of $1.2 million ($0.07 per diluted share) versus a net loss of $1.5 million in the prior year. They shipped 27 systems during the quarter and signed a significant Fair Deal Agreement with Platinum Dermatology, a network of 130 dermatology clinics. The company maintained a strong financial position with $22.6 million in cash and no debt. Gross profit margin improved to 59.3% from 51.0% year-over-year.
Sensus Healthcare (SRTS) ha riportato solidi risultati finanziari per il terzo trimestre del 2024, con ricavi più che raddoppiati a 8,8 milioni di dollari rispetto ai 3,9 milioni di dollari del terzo trimestre del 2023. L'azienda ha raggiunto un utile netto di 1,2 milioni di dollari (0,07 dollari per azione diluita) rispetto a una perdita netta di 1,5 milioni di dollari dell'anno precedente. Sono stati spediti 27 sistemi durante il trimestre e firmato un importante Accordo di Fair Deal con Platinum Dermatology, una rete di 130 cliniche dermatologiche. L'azienda ha mantenuto una forte posizione finanziaria con 22,6 milioni di dollari in contante e nessun debito. Il margine di profitto lordo è migliorato al 59,3% rispetto al 51,0% dello scorso anno.
Sensus Healthcare (SRTS) reportó sólidos resultados financieros en el tercer trimestre de 2024, con ingresos que más que se duplicaron a 8,8 millones de dólares en comparación con 3,9 millones de dólares en el tercer trimestre de 2023. La compañía logró un ingreso neto de 1,2 millones de dólares (0,07 dólares por acción diluida) frente a una pérdida neta de 1,5 millones de dólares en el año anterior. Envío 27 sistemas durante el trimestre y firmó un importante Acuerdo de Fair Deal con Platinum Dermatology, una red de 130 clínicas de dermatología. La empresa mantuvo una sólida posición financiera con 22,6 millones de dólares en efectivo y sin deudas. El margen de beneficio bruto mejoró al 59,3% desde el 51,0% del año anterior.
Sensus Healthcare (SRTS)는 2024년 3분기에 390만 달러에서 880만 달러로 수익이 두 배 이상 증가하는 강력한 재무 결과를 보고했습니다. 회사는 150만 달러의 순손실에서 120만 달러의 순이익 (희석주당 0.07달러)를 기록했습니다. 분기 동안 27개의 시스템을 배송했으며, 130개의 피부과 클리닉 네트워크인 Platinum Dermatology와 중요한 공정 거래 계약을 체결했습니다. 회사는 2260만 달러의 현금을 보유하고 있으며 부채가 없습니다. 총 이익률은 전년 동기 대비 51.0%에서 59.3%로 개선되었습니다.
Sensus Healthcare (SRTS) a rapporté des résultats financiers solides pour le troisième trimestre 2024, avec des revenus plus que doublés à 8,8 millions de dollars contre 3,9 millions de dollars au troisième trimestre 2023. L'entreprise a réalisé un bénéfice net de 1,2 million de dollars (0,07 dollar par action diluée) contre une perte nette de 1,5 million de dollars l'année précédente. Elle a expédié 27 systèmes au cours du trimestre et a signé un accord de Fair Deal significatif avec Platinum Dermatology, un réseau de 130 cliniques de dermatologie. L'entreprise a maintenu une position financière solide avec 22,6 millions de dollars en espèces et aucune dette. La marge brute de profit s'est améliorée, passant de 51,0 % à 59,3 % d'une année sur l'autre.
Sensus Healthcare (SRTS) meldete im dritten Quartal 2024 starke finanzielle Ergebnisse, da der Umsatz auf 8,8 Millionen Dollar mehr als verdoppelt wurde im Vergleich zu 3,9 Millionen Dollar im dritten Quartal 2023. Das Unternehmen erzielte einen Nettogewinn von 1,2 Millionen Dollar (0,07 Dollar pro verwässertem Anteil) im Vergleich zu einem Nettoverlust von 1,5 Millionen Dollar im Vorjahr. Im Quartal wurden 27 Systeme verschickt und ein bedeutender Fair Deal Vertrag mit Platinum Dermatology, einem Netzwerk aus 130 Dermatologischen Kliniken, unterzeichnet. Das Unternehmen hielt eine starke finanzielle Position mit 22,6 Millionen Dollar in bar und ohne Schulden. Die Bruttogewinnmarge verbesserte sich im Jahresvergleich von 51,0% auf 59,3%.
- Revenue increased 127% year-over-year to $8.8 million
- Achieved net income of $1.2 million vs net loss of $1.5 million in prior year
- Shipped 27 systems vs 11 systems in prior year quarter
- Gross profit margin improved to 59.3% from 51.0%
- Strong cash position of $22.6 million with no debt
- Secured agreement with 130-clinic network Platinum Dermatology
- Accounts receivable increased to $17.0 million from $10.6 million due to extended payment terms
- Higher bad debt expense reported in Q3 2024
Insights
The Q3 2024 results show remarkable financial improvement with
- Gross margin expanded to
59.3% from51% - Achieved
$1.2 million net income versus previous year's loss - Strong balance sheet with
$22.6 million cash and no debt - Fair Deal Agreement program gaining significant traction with 22 units signed
The Platinum Dermatology partnership covering 130 clinics represents a significant growth catalyst. The shift to a recurring revenue model through Fair Deal Agreements should provide more predictable future cash flows. However, increased accounts receivable at
The strategic pivot to a revenue-sharing model through Fair Deal Agreements is transforming Sensus's market penetration strategy. The deployment of 27 systems this quarter, compared to 11 in Q3 2023, indicates strong market acceptance. The proprietary Sentinel IT software provides a competitive moat by enabling usage tracking and billing management.
The addressable market is substantial with 70 million Americans at risk for skin cancer and 1.2 million annual global non-melanoma skin cancer cases. Growing interest at ASTRO and the Providence Swedish Hospital adoption signal increasing acceptance in radiation oncology departments, expanding beyond the traditional dermatology market.
- Revenues of
$8.8 million compare with$3.9 million in the prior-year quarter, adjusted EBITDA (a non-GAAP measure) of$1.6 million compares with negative$1.7 million a year ago - Signed a Fair Deal Agreement with Platinum Dermatology, a leading dermatology network with 130 clinics across the U.S.
Conference call begins at 4:30 p.m. Eastern time today
BOCA RATON, Fla., Nov. 14, 2024 (GLOBE NEWSWIRE) -- Sensus Healthcare, Inc. (Nasdaq: SRTS), a medical device company specializing in highly effective, non-invasive, minimally-invasive and cost-effective treatments for oncological and non-oncological skin conditions, announces financial results for the three and nine months ended September 30, 2024.
Highlights from the third quarter of 2024 and recent weeks include the following:
- Revenues increased
127% over the comparable 2023 quarter to$8.8 million , reflecting higher superficial radiotherapy (SRT and IG-SRT) unit sales - Shipped 27 systems including one SRT-100 unit to an international customer, compared with 11 systems shipped in the 2023 quarter
- Entered into Fair Deal Agreements for seven SRT-100 Vision (IG-SRT) units, bringing the total to 22 units since the program’s introduction in March
- Net income was
$1.2 million , or$0.07 per diluted share, compared with a net loss of$1.5 million , or$0.09 per share, for the 2023 quarter - Exited the quarter with
$22.6 million in cash and cash equivalents, and no debt - Sold an SRT system to the radiation oncology department of Providence Swedish Hospital in Seattle
- Attended the American Society for Radiation Oncology (ASTRO) 66th annual meeting, where non-melanoma skin cancer treatment continues to show increased interest
- Signed a Fair Deal Agreement with Platinum Dermatology Partners, a network of more than 130 dermatology clinics across the U.S.
Management Commentary
“Continued growth in revenues and earnings reflects our success in engaging customers with both existing and new sales options. Our revenues more than doubled year-over-year for the second consecutive quarter, and we maintained profitability despite the summer seasonality of our business,” said Joe Sardano, chairman and chief executive officer of Sensus Healthcare. “Our revenue-sharing Fair Deal Agreement, which allows customers to deploy capital elsewhere in their businesses, continues to attract significant attention. Since our launch at the American Academy of Dermatology meeting in March, we signed 22 agreements as of September 30th. In addition, the signing of an agreement with Platinum Dermatology Partners, a rapidly-growing network of 130 dermatology clinics, is a major step forward. We believe this is the first of many such groups to consider the Fair Deal Agreement.”
Commenting on the agreement, Anthony Petelin, M.D., president of Platinum Dermatology Partners, said, “I’m incredibly excited for Platinum Dermatology Partners to enter into this expanded services agreement with Sensus Healthcare, with support from Sensus' outstanding team. This agreement enables us to broaden access to SRT for our patients, reinforcing the exceptional, highest-quality dermatologic care that is our hallmark. Over the years, SRT has proven itself to be an integral part of a comprehensive treatment plan, primarily for those diagnosed with non-melanoma skin cancer."
Mr. Sardano added, “With the Platinum Fair Deal Agreement, we have exceeded our goal of having up to 50 Fair Deal Agreements signed by the end of 2024, and we expect to be generating recurring revenue from these SRT-100 Vision (IG-SRT) systems in 2025. Given the growing utilization of SRT to treat non-melanoma skin cancer and keloid scars, and the interest we have generated to date, we expect this model to contribute to our growth for years to come. This model would not be possible without Sentinel IT, our proprietary HIPAA-compliant software with clinical billing and asset management utility that also allows us to track utilization in real time. We believe this intellectual property is a very valuable asset to Sensus.”
Mr. Sardano concluded, “The market for non-melanoma skin cancer treatments is enormous, with an estimated one in five Americans developing skin cancer during their lifetime, representing some 70 million people. Globally, more than 1.2 million people develop non-melanoma skin cancer annually. Clearly SRT is becoming the ‘people’s choice’ on how they wish to be treated.”
Third Quarter Financial Results
Revenues for the third quarter of 2024 were
Cost of sales was
Gross profit was
Selling and marketing expense was
General and administrative expense was
Research and development expense was
Other income of
Net income for the third quarter of 2024 was
Adjusted EBITDA for the third quarter of 2024 was
Cash and cash equivalents were
Nine Month Financial Results
Revenues for the nine months ended September 30, 2024 were
Cost of sales was
Gross profit was
Selling and marketing expense was
General and administrative expense was
Research and development expense was
Other income of
Net income for the nine months ended September 30, 2024 was
Adjusted EBITDA for the nine months ended September 30, was
Use of Non-GAAP Financial Information
This press release contains supplemental financial information determined by methods other than in accordance with accounting principles generally accepted in the United States (GAAP). Sensus Healthcare management uses Adjusted EBITDA, a non-GAAP financial measure, in its analysis of the Company’s performance. Adjusted EBITDA should not be considered a substitute for GAAP basis measures, nor should it be viewed as a substitute for operating results determined in accordance with GAAP. Management believes the presentation of Adjusted EBITDA, which excludes the impact of interest, income taxes, depreciation, amortization and stock-compensation expense, provides useful supplemental information that is essential to a proper understanding of the financial results of Sensus Healthcare. Non-GAAP financial measures are not formally defined by GAAP, and other entities may use calculation methods that differ from those used by Sensus Healthcare. As a complement to GAAP financial measures, management believes that Adjusted EBITDA assists investors who follow the practice of some investment analysts who adjust GAAP financial measures to exclude items that may obscure underlying performance and distort comparability. A reconciliation of the GAAP net loss to Adjusted EBITDA is provided in the schedule below.
| SENSUS HEALTHCARE, INC. | |||||||||||||||||||||
| GAAP TO NON-GAAP RECONCILIATION | |||||||||||||||||||||
| (unaudited) | |||||||||||||||||||||
| For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||
| September 30, | September 30, | ||||||||||||||||||||
| (in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||
| Net income (loss), as reported | $ | 1,215 | $ | (1,451 | ) | $ | 5,101 | $ | (3,725 | ) | |||||||||||
| Add: | |||||||||||||||||||||
| Depreciation and amortization | 53 | 60 | 154 | 216 | |||||||||||||||||
| Stock compensation expense | 45 | 67 | 201 | 276 | |||||||||||||||||
| Income tax expense (benefit) | 559 | (125 | ) | 1,965 | (1,428 | ) | |||||||||||||||
| Interest income, net | (279 | ) | (277 | ) | (702 | ) | (764 | ) | |||||||||||||
| Adjusted EBITDA, non GAAP | $ | 1,593 | $ | (1,726 | ) | $ | 6,719 | $ | (5,425 | ) | |||||||||||
Conference Call and Webcast
Sensus Healthcare will host an investment community conference call today beginning at 4:30 p.m. Eastern time during which management will discuss these financial results, provide a business update and answer questions.
Participants are encouraged to pre-register for the conference call here to receive a unique dial-in number that will permit them to bypass the live operator. Participants may pre-register at any time, including up to and after the call start time. Alternatively, participants can access the conference call by dialing 844-481-2811 (U.S. and Canada Toll Free) or 412-317-0676 (International). Please direct the operator to be connected to the Sensus Healthcare conference call. The call will be webcast live and can be accessed here or in the Investor Relations section of the Company’s website at www.sensushealthcare.com.
Following the conclusion of the conference call, a replay will be available until December 14, 2024 and can be accessed by dialing 877-344-7529 (U.S. Toll Free), 855-669-9658 (Canada Toll Free) or 412-317-0088 (International), using replay code 3932512. An archived webcast of the call will also be available in the Investors section of the Company’s website.
About Sensus Healthcare
Sensus Healthcare, Inc. is a global pioneer in the development and delivery of non-invasive treatments for skin cancer and keloids. Leveraging its cutting-edge superficial radiotherapy (SRT and IG-SRT) technology, the company provides healthcare providers with a highly effective, patient-centric treatment platform. With a dedication to driving innovation in radiation oncology, Sensus Healthcare offers solutions that are safe, precise, and adaptable to a variety of clinical settings. For more information, please visit www.sensushealthcare.com.
Forward-Looking Statements
This press release includes statements that are, or may be deemed, ''forward-looking statements.'' In some cases, these statements can be identified by the use of forward-looking terminology such as "believes," "estimates," "anticipates," "expects," "plans," "intends," "may," "could," "might," "will," "should," “approximately,” "potential" or negative or other variations of those terms or comparable terminology, although not all forward-looking statements contain these words.
Forward-looking statements involve risks and uncertainties because they relate to events, developments, and circumstances relating to Sensus, our industry, and/or general economic or other conditions that may or may not occur in the future or may occur on longer or shorter timelines or to a greater or lesser degree than anticipated. In addition, even if future events, developments, and circumstances are consistent with the forward-looking statements contained in this press release, they may not be predictive of results or developments in future periods. Although we believe that we have a reasonable basis for each forward-looking statement contained in this press release, forward-looking statements are not guarantees of future performance, and our actual results of operations, financial condition and liquidity, and the development of the industry in which we operate may differ materially from the forward-looking statements contained in this press release, as a result of the following factors, among others: our ability to maintain profitability; our ability to sell the number of SRT units we anticipate for the balance of 2024; the possibility that inflationary pressures continue to impact our sales; the level and availability of government and/or third party payor reimbursement for clinical procedures using our products, and the willingness of healthcare providers to purchase our products if the level of reimbursement declines; the regulatory requirements applicable to us and our competitors; our ability to efficiently manage our manufacturing processes and costs; the risks arising from doing business in China and other foreign countries; legislation, regulation, or other governmental action that affects our products, taxes, international trade regulation, or other aspects of our business; concentration of our customers in the U.S. and China, including the concentration of sales to one particular customer in the U.S.; the performance of the Company’s information technology systems and its ability to maintain data security; our ability to obtain and maintain the intellectual property needed to adequately protect our products, and our ability to avoid infringing or otherwise violating the intellectual property rights of third parties; and other risks described from time to time in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.
To date, we do not expect that the Middle East conflict, the Russian invasion of Ukraine and global geopolitical uncertainties have had any particular impact on our business, but we continue to monitor developments and will address them in future disclosures, if applicable.
Any forward-looking statements that we make in this press release speak only as of the date of such statement, and we undertake no obligation to update such statements to reflect events or circumstances after the date of this press release, except as may be required by applicable law. You should read carefully our "Introductory Note Regarding Forward-Looking Information" and the factors described in the "Risk Factors" section of our periodic reports filed with the Securities and Exchange Commission to better understand the risks and uncertainties inherent in our business.
Contact:
Alliance Advisors IR
Kim Sutton Golodetz
212-838-3777
kgolodetz@allianceadvisors.com
(Tables to follow)
| SENSUS HEALTHCARE, INC. | |||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||
| For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||
| September 30, | September 30, | ||||||||||||||||
| (in thousands, except share and per share data) | 2024 | 2023 | 2024 | 2023 | |||||||||||||
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||||||||||
| Revenues | $ | 8,839 | $ | 3,898 | $ | 28,741 | $ | 11,838 | |||||||||
| Cost of sales | 3,599 | 1,909 | 11,416 | 5,609 | |||||||||||||
| Gross profit | 5,240 | 1,989 | 17,325 | 6,229 | |||||||||||||
| Operating expenses: | |||||||||||||||||
| Selling and marketing | 1,309 | 1,290 | 3,575 | 4,983 | |||||||||||||
| General and administrative | 1,573 | 1,511 | 4,731 | 4,204 | |||||||||||||
| Research and development | 863 | 1,083 | 2,655 | 3,001 | |||||||||||||
| Total operating expenses | 3,745 | 3,884 | 10,961 | 12,188 | |||||||||||||
| Income (loss) from operations | 1,495 | (1,895 | ) | 6,364 | (5,959 | ) | |||||||||||
| Other income: | |||||||||||||||||
| Gain on sale of assets | - | 42 | - | 42 | |||||||||||||
| Interest income, net | 279 | 277 | 702 | 764 | |||||||||||||
| Other income, net | 279 | 319 | 702 | 806 | |||||||||||||
| Income (loss) before income tax | 1,774 | (1,576 | ) | 7,066 | (5,153 | ) | |||||||||||
| Provision for (benefit from) income tax | 559 | (125 | ) | 1,965 | (1,428 | ) | |||||||||||
| Net Income (loss) | $ | 1,215 | $ | (1,451 | ) | $ | 5,101 | $ | (3,725 | ) | |||||||
| Net income (loss) per share – basic | $ | 0.07 | $ | (0.09 | ) | $ | 0.31 | $ | (0.23 | ) | |||||||
| – diluted | $ | 0.07 | $ | (0.09 | ) | $ | 0.31 | $ | (0.23 | ) | |||||||
| Weighted average number of shares used in computing net income (loss) per share – basic | 16,321,131 | 16,270,403 | 16,304,913 | 16,255,263 | |||||||||||||
| – diluted | 16,345,749 | 16,270,403 | 16,332,485 | 16,255,263 | |||||||||||||
| SENSUS HEALTHCARE, INC. | |||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||
| As of September 30, | As of December 31, | ||||||||
| (in thousands, except shares and per share data) | 2024 | 2023 | |||||||
| (unaudited) | |||||||||
| Assets | |||||||||
| Current assets | |||||||||
| Cash and cash equivalents | $ | 22,558 | $ | 23,148 | |||||
| Accounts receivable, net | 16,961 | 10,645 | |||||||
| Inventories | 11,968 | 11,861 | |||||||
| Prepaid inventory | 1,723 | 2,986 | |||||||
| Other current assets | 1,596 | 888 | |||||||
| Total current assets | 54,806 | 49,528 | |||||||
| Property and equipment, net | 1,635 | 464 | |||||||
| Deferred tax asset | 2,197 | 2,140 | |||||||
| Operating lease right-of-use assets, net | 630 | 774 | |||||||
| Other noncurrent assets | 590 | 804 | |||||||
| Total assets | $ | 59,858 | $ | 53,710 | |||||
| Liabilities and stockholders’ equity | |||||||||
| Current liabilities | |||||||||
| Accounts payable and accrued expenses | $ | 3,973 | $ | 2,793 | |||||
| Product warranties | 351 | 538 | |||||||
| Operating lease liabilities, current portion | 200 | 187 | |||||||
| Income tax payable | - | 37 | |||||||
| Deferred revenue, current portion | 686 | 657 | |||||||
| Total current Liabilities | 5,210 | 4,212 | |||||||
| Operating lease liabilities, net of current portion | 451 | 596 | |||||||
| Deferred revenue, net of current portion | 66 | 60 | |||||||
| Total liabilities | 5,727 | 4,868 | |||||||
| Commitments and contingencies | |||||||||
| Stockholders’ equity | |||||||||
| Preferred stock, 5,000,000 shares authorized and none issued and outstanding | - | - | |||||||
| Common stock, | 169 | 169 | |||||||
| Additional paid-in capital | 45,640 | 45,405 | |||||||
| Treasury stock, 540,794 and 532,924 shares at cost, at September 30, 2024 and December 31, 2023, respectively | (3,566 | ) | (3,519 | ) | |||||
| Retained earnings | 11,888 | 6,787 | |||||||
| Total stockholders’ equity | 54,131 | 48,842 | |||||||
| Total liabilities and stockholders’ equity | $ | 59,858 | $ | 53,710 | |||||
FAQ
What was Sensus Healthcare's (SRTS) revenue in Q3 2024?
How many SRT systems did Sensus Healthcare (SRTS) ship in Q3 2024?
What was Sensus Healthcare's (SRTS) net income for Q3 2024?
How many Fair Deal Agreements has Sensus Healthcare (SRTS) signed as of Q3 2024?
