Misonix Reports First Quarter Fiscal Year 2018 Financial Results

Misonix Reports First Quarter Fiscal Year 2018 Financial Results

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FARMINGDALE, N.Y.Nov. 7, 2017 /PRNewswire/ — Misonix, Inc. (Nasdaq: MSON), a provider of minimally invasive therapeutic ultrasonic medical devices that enhance clinical outcomes, announced today financial results for the first quarter of fiscal year 2018, ended September 30, 2017.

Financial Highlights for the First Quarter:

  • Revenue for the first quarter of fiscal year 2018 was $7.3 million, an increase of 18% compared with $6.2 million in the previous year’s first quarter.
  • Consumables sales in the United States increased 25% to $4.1 million in the first quarter of the new fiscal year compared to $3.3 million in the comparable quarter of fiscal 2017.
  • The gross profit percentage for the quarter was 70.1% primarily from a strong mix of higher margin consumables, compared to 69.0% in last year’s first quarter.
  • For the first quarter of fiscal year 2018, the Company reported a net loss of $(1.2) million, or $(0.14) per diluted share, compared to a net loss of $(0.5) million, or $(0.07) per diluted share, in the first quarter of fiscal year 2017.
  • At September 30, 2017, the Company maintained cash of $10.5 million with no long-term debt.

Stavros Vizirgianakis, President and Chief Executive Officer of Misonix, said, “Sales orders continued to be strong in the first quarter of fiscal year 2018, with double-digit revenue growth, picking up where we left off in fiscal 2017. Total revenue increased 18% in the first quarter of the new year primarily attributable to a 25% increase in domestic consumables sales. A significant contribution to the increase in domestic sales was made by the addition of new clinical sales specialists to support the sales activities of our distribution channel. The channel, coupled with our team of 28 clinical sales specialists, was successful in driving a 35% increase in BoneScalpel revenue in the U.S. over the prior year. We are making steady progress with the surgical community, and the hospitals where they practice, to further embed our technology in their respective surgical suites.”

“At the recent 32nd Annual Meeting of the North American Spine Society,” Mr. Vizirgianakis continued, “Dr. Wade Jensenof the Center for Neurosciences, Orthopaedics & Spine (“CNOS”) presented data showing a significant reduction in the use of bone grafting material when the Misonix BoneScalpel is employed compared to the use of standard power drill instruments. An estimated $1.9 billion is spent annually on bone graft substitutes. This is valuable data as we are able to show that our products contribute significant value to the overall healthcare system by reducing costs in spinal fusion procedures.”

The Company also recently entered into its most significant license, royalty and manufacturing agreement with Hunan Xing Hang Rui Kang Bio-Technologies Co., Ltd., a Chinese corporation, where Misonix will receive at least $11 million in revenue and royalties over the next four years, and further strengthen its balance sheet.

Conference Call
The Company has scheduled a conference call for Tuesday, November 7, 2017, at 4:30 pm ET to review the results.

Interested parties can access the conference call by dialing (844) 861-5497 or (412) 317-6579 or can listen via a live Internet webcast, which is available in the Investor Relations section of the Company’s website at www.misonix.com.

A teleconference replay of the call will be available for three days at (877) 344-7529 or (412) 317-0088, confirmation # 10113569. A webcast replay will be available in the Investor Relations section of the Company’s website at www.misonix.com for 30 days.

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 general economic conditions, 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, 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 approval of pending and/or contemplated 510(k) filings, the ability to achieve and maintain profitability in the Company’s business lines, the impact of the pending investigation by the Department of Justice and Securities Exchange Commission, and other factors discussed in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2017, subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. The Company disclaims any obligation to update its forward-looking relationships.

Financial Tables to Follow

MISONIX INC. and Subsidiaries

Consolidated Statements of Operations

(Unaudited)

For the three months ended

September 30,

2017

2016

Net sales

$    7,280,723

$   6,171,625

Cost of goods sold

2,177,355

1,912,007

Gross profit

5,103,368

4,259,618

Operating expenses:

 Selling expenses

3,570,713

3,325,687

 General and administrative expenses

2,573,131

1,931,821

 Research and development expenses

901,274

492,084

Total operating expenses

7,045,118

5,749,592

Loss from operations

(1,941,750)

(1,489,974)

Other income (expense):

 Interest income

13

19

 Royalty income and license fees

452,971

944,068

 Other

(4,458)

(1,996)

Total other income

448,526

942,091

Loss from operations before income taxes

(1,493,224)

(547,883)

Income tax benefit

(281,000)

(26,000)

Net loss

$   (1,212,224)

$    (521,883)

Net loss per share – Basic

$            (0.14)

$          (0.07)

Net loss per share – Diluted

$            (0.14)

$          (0.07)

Weighted average shares – Basic

8,958,405

7,809,385

Weighted average shares – Diluted

8,958,405

7,809,385

MISONIX INC. and Subsidiaries

Consolidated Balance Sheets

September 30,

June 30,

2017

2017

(unaudited)

Assets

Current assets:

Cash and cash equivalents

$    10,528,041

$ 11,557,071

Accounts receivable, less allowance for doubtful accounts of $96,868 and $96,868, respectively

4,153,511

5,133,389

Inventories, net

5,206,025

4,992,434

Prepaid expenses and other current assets

504,653

918,899

Total current assets

20,392,230

22,601,793

Property, plant and equipment, net of accumulated amortization and depreciation of $8,134,134 and $7,794,580, respectively

3,842,419

3,730,203

Patents, net of accumulated amortization of $1,025,930 and $995,568, respectively

715,177

719,136

Goodwill

1,701,094

1,701,094

Intangible and other assets

280,684

282,876

Deferred income tax 

5,524,422

4,334,547

Total assets

$    32,456,026

$ 33,369,649

Liabilities and shareholders’ equity

Current liabilities:

Accounts payable

$      2,106,506

$  1,861,228

Accrued expenses and other current liabilities

1,815,527

3,346,138

Total current liabilities

3,922,033

5,207,366

Deferred lease liability

7,016

9,354

Deferred income

8,989

13,087

Total liabilities

3,938,038

5,229,807

Commitments and contingencies 

Shareholders’ equity:

Common stock, $.01 par value-shares authorized 20,000,000; 9,365,666 and 9,357,166 shares issued and outstanding in each period, respectively

93,657

93,572

Additional paid-in capital

37,490,220

36,808,810

Accumulated deficit

(9,065,889)

(8,762,540)

Total shareholders’ equity

28,517,988

28,139,842

Total liabilities and shareholders’ equity

$    32,456,026

$ 33,369,649

Corporate Contact

Investor Contact

Joe Dwyer

Joe Diaz

Misonix, Inc.

Lytham Partners

631-927-9113

602-889-9700

jdwyer@misonix.com

mson@lythampartners.com

 

SOURCE Misonix, Inc.

Related Links

http://www.misonix.com

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