Misonix Reports Fourth Quarter and Fiscal Year 2019 Results
FARMINGDALE, N.Y., Aug. 14, 2019 (GLOBE NEWSWIRE) -- Misonix, Inc. (Nasdaq: MSON) (“Misonix” or the “Company”), a provider of minimally invasive therapeutic ultrasonic medical devices that enhance clinical outcomes, today reported financial results for the fiscal 2019 fourth quarter and year ended June 30, 2019 as summarized below:
Three Months Ended | Year Ended | ||||||||||||||
June 30 | June 30 | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(unaudited) | (unaudited) | (unaudited) | |||||||||||||
Revenue: | |||||||||||||||
Product revenue | $ | 9,754,284 | $ | 8,636,126 | $ | 38,848,491 | $ | 32,669,826 | |||||||
Total revenue | $ | 9,754,284 | $ | 8,636,126 | $ | 38,848,491 | $ | 36,679,826 | |||||||
Gross Profit | $ | 6,786,138 | $ | 6,116,302 | $ | 27,280,152 | $ | 26,884,928 | |||||||
GP Percentage - product revenue | 69.6 | % | 70.8 | % | 70.2 | % | 70.0 | % | |||||||
Pretax loss | $ | (2,317,250 | ) | $ | (1,800,445 | ) | $ | (7,358,250 | ) | $ | (2,386,906 | ) | |||
Net loss | $ | (2,345,797 | ) | $ | (1,782,552 | ) | $ | (7,386,797 | ) | $ | (7,612,435 | ) | |||
EBITDA (1) | $ | (1,833,685 | ) | $ | (1,228,614 | ) | $ | (5,694,479 | ) | $ | (768,564 | ) | |||
Adjusted EBITDA (1) | $ | 228,112 | $ | (269,495 | ) | $ | 132,783 | $ | 4,169,471 | ||||||
June 30, | June 30, | ||||||||||||||
2019 | 2018 | ||||||||||||||
(unaudited) | |||||||||||||||
Long Term Debt | $ | - | $ | - | |||||||||||
Cash and cash equivalents | $ | 7,842,403 | $ | 10,979,455 | |||||||||||
- Definitions and disclosures regarding non-GAAP financial information including reconciliations are included at the end of this press release.
Fourth Quarter and Full Year 2019 Highlights:
- Fiscal fourth quarter 2019 revenue increased approximately 12.9% to $9.8 million, compared to $8.6 million in fiscal fourth quarter 2018. Total fiscal Q4 2019 product revenue growth reflects a 23.3% increase in consumables revenue and a 12.8% decline in equipment revenue as compared to fiscal Q4 2018.
- Fiscal fourth quarter 2019 domestic product revenue increased 22.0% to $6.1 million, including a 16.4% increase in recurring consumables revenue and a 97.0% rise in equipment revenue.
- Fiscal fourth quarter 2019 international product revenue increased 0.6% to $3.7 million, reflecting a 44.6% increase in consumables, partially offset by a 30.8% decrease in equipment revenue related to approximately $800,000 of orders placed by customers but unfilled by Misonix as of quarter end.
- Fiscal fourth quarter 2019 domestic product revenue increased 22.0% to $6.1 million, including a 16.4% increase in recurring consumables revenue and a 97.0% rise in equipment revenue.
- Full fiscal year 2019 revenue increased approximately 5.9% to 38.8 million, comprising a product revenue increase of approximately 18.9% to $38.8 million, compared to $32.7 million in fiscal 2018, offset by no license revenue in fiscal 2019 compared with $4 million in fiscal 2018. Total fiscal 2019 product revenue growth reflects a 20.2% increase in consumables revenue and a 15.5% rise in equipment revenue. Full year consumables revenue growth was in line with expectations, while equipment revenue growth was slightly impacted by previously disclosed supply disruptions related to critical parts for BoneScalpel consoles.
- Fiscal 2019 domestic product revenue increased 14.6% to $23.0 million, including a 15.9% increase in recurring consumables revenue and a 4.6% rise in equipment revenue.
- Fiscal 2019 international product revenue increased 25.7% to $15.9 million, reflecting a 33.3% increase in consumables and a 19.2% rise in equipment revenue.
- Fiscal 2019 domestic product revenue increased 14.6% to $23.0 million, including a 15.9% increase in recurring consumables revenue and a 4.6% rise in equipment revenue.
- In May 2019, Misonix announced it has entered into a definitive agreement to acquire Solsys Medical, LLC (“Solsys”), a privately held regenerative medical company, in an all-stock transaction valued at approximately $97 million.
- The planned acquisition of Solsys substantially broadens Misonix’s addressable market through wound care solutions that are complementary to its existing products.
- The combined company anticipates top line revenue growth in excess of 25% per annum over the next several years.
- On August 13, 2019, the Company’s S-4 registration statement with the U.S. Securities and Exchange Commission (“SEC”) relating to the Solsys acquisition was declared effective. A meeting of Misonix’s shareholders to vote on the transaction, among other related matters, has been set for September 26, 2019 at 10:00 a.m. at the Company’s headquarters.
- The planned acquisition of Solsys substantially broadens Misonix’s addressable market through wound care solutions that are complementary to its existing products.
- In June 2019, Misonix announced that it had received 510(k) clearance by the U.S. Food and Drug Administration (FDA) for Nexus, its new revolutionary ultrasonic surgical platform. The Company has launched Nexus in a limited market release in the United States.
- In June 2019, the Company received notice from the SEC that it had concluded its investigation regarding Misonix’s potential breaches of the Foreign Corrupt Practices Act that the Company had self-reported to the SEC and U.S. Department of Justice. The SEC stated that, based on the information it had as of the date of the letter, it did not intend to recommend an enforcement action by the SEC against the Company.
- In July 2019, the Company favorably settled its shareholder derivative litigation brought in connection with alleged violations by the Company of the Foreign Corrupt Practices Act. Under the terms of the settlement, the Company agreed to enact a six-year plan to implement certain corporate governance measures and pay $500,000 of legal fees, which was paid by the Company’s insurance carrier.
Stavros Vizirgianakis, President and Chief Executive Officer of Misonix, stated, “Our fourth quarter of fiscal 2019 marks two years of continued improvements across the entire organization, including double-digit top-line growth for eight consecutive quarters, as well as significant and continuous improvements across most of our key financial and operational metrics. Equally important, the close of fiscal 2019 highlights the success of various strategic initiatives we have undertaken to improve and grow the business in a sustained manner. From significantly revamping our go-to-market strategy, including our sales and marketing department, to back office systems supporting inventory procurement and bringing onboard more capable production partners, Misonix has created a stable and robust foundation for the future.
“Of course, none of this would be possible without having both great products and great people. While the demonstrated clinical benefits of Misonix’s ultrasonic surgical devices are clear, the opportunity ahead of us as we look to grow our business across both applications and markets is largely based on the evolution of our product offering. To that end, we have continued to invest in R&D to support the development of new ultrasonic surgical solutions and products, including our next generation Nexus platform. We are energized by our success to bring Nexus to market. The time, effort and knowhow that was involved in this achievement was significant and we are very pleased with the outcome as well as the enthusiastic market reception we have received. We have begun a controlled market launch of Nexus and have begun to transition our business to this unique and extremely capable platform.
“We are equally excited about our planned acquisition of Solsys and the opportunities that the combination will create by bringing together a direct sales team of over 80 professionals on wound and 55 on the surgical side. We are confident this will help drive increased sales productivity and broaden the market penetration of the combined company’s wound and surgical products in operating rooms and hospital outpatient facilities. Together, we plan to combine our expertise and customer relationships with demonstrated clinical benefits and improving patient outcomes to drive sales.”
“With the positive operating momentum across our business, Misonix has a solid foundation to continue pursuing a range of near- and long-term growth opportunities to deliver enhanced returns for our shareholders. As we enter fiscal 2020, we continue to focus on prudently managing our capital resources, growing sales, improving productivity and operational efficiencies and successfully integrating Solsys under the Misonix umbrella.”
Sales Performance Supplemental Data (unaudited)
For the three months ended | For the year ended | ||||||||||||||||||||||
June 30, | Net change | June 30, | Net change | ||||||||||||||||||||
2019 | 2018 | $ | % | 2019 | 2018 | $ | % | ||||||||||||||||
Total | |||||||||||||||||||||||
Consumables | $ | 7,591,616 | $ | 6,155,886 | $ | 1,435,730 | 23.3 | % | $ | 28,371,517 | $ | 23,596,476 | $ | 4,775,041 | 20.2 | % | |||||||
Equipment | 2,162,668 | 2,480,240 | (317,572 | ) | -12.8 | % | 10,476,974 | 9,073,350 | 1,403,624 | 15.5 | % | ||||||||||||
Total Product | 9,754,284 | 8,636,126 | 1,118,158 | 12.9 | % | 38,848,491 | 32,669,826 | 6,178,665 | 18.9 | % | |||||||||||||
License | - | - | - | - | - | 4,010,000 | (4,010,000 | ) | -100.0 | % | |||||||||||||
Total | $ | 9,754,284 | $ | 8,636,126 | $ | 1,118,158 | 12.9 | % | $ | 38,848,491 | $ | 36,679,826 | $ | 2,168,665 | 5.9 | % | |||||||
Domestic: | |||||||||||||||||||||||
Consumables | $ | 5,395,371 | $ | 4,636,527 | $ | 758,844 | 16.4 | % | $ | 20,561,273 | $ | 17,735,749 | $ | 2,825,524 | 15.9 | % | |||||||
Equipment | 687,487 | 349,043 | 338,444 | 97.0 | % | 2,414,435 | 2,308,614 | 105,821 | 4.6 | % | |||||||||||||
Total | $ | 6,082,858 | $ | 4,985,570 | $ | 1,097,288 | 22.0 | % | $ | 22,975,708 | $ | 20,044,363 | $ | 2,931,345 | 14.6 | % | |||||||
International: | |||||||||||||||||||||||
Consumables | $ | 2,196,245 | $ | 1,519,359 | $ | 676,886 | 44.6 | % | $ | 7,810,244 | $ | 5,860,727 | $ | 1,949,517 | 33.3 | % | |||||||
Equipment | 1,475,181 | 2,131,197 | (656,016 | ) | -30.8 | % | 8,062,539 | 6,764,736 | 1,297,803 | 19.2 | % | ||||||||||||
Total | $ | 3,671,426 | $ | 3,650,556 | $ | 20,870 | 0.6 | % | $ | 15,872,783 | $ | 12,625,463 | $ | 3,247,320 | 25.7 | % | |||||||
License | $ | - | $ | - | $ | - | - | $ |
By: Nasdaq / GlobeNewswire
- 14 Aug 2019
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