Financial

Misonix Reports Record Third Quarter Revenue

FARMINGDALE, N.Y., May 07, 2018 (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 third quarter of fiscal year 2018 ended March 31, 2018 as summarized below:

($ in millions) Three Months Ended Nine Months Ended
March 31, March 31,
2018 2017 2018 2017
Revenue $   12.4 $   7.2 $   28.0 $   19.4
Gross Profit $   9.8 $   5.1 $   20.8 $   13.5
GP Percentage – product revenue 68.8 % 70.6 % 69.7 % 69.9 %
Operating income (loss) $   2.2 $   (1.5 ) $   (1.1 ) $   (4.6 )
Net income (loss) $   2.2 $   (0.1 ) $   (5.8 ) $   (1.3 )
EBITDA (1) $   2.6 $   (0.0 ) $   0.4 $   (0.8 )
Adjusted EBITDA (1) $   4.0 $   0.5 $   4.4 $   (0.2 )
March 31, June 30,
 2018  2017
Long Term Debt $   – $   –
Cash $   12.3 $   11.6
(1) Definitions and disclosures regarding non-GAAP financial information including reconciliations are included on page 6 of this press release

Stavros Vizirgianakis, President and Chief Executive Officer of Misonix, stated, “Misonix delivered solid financial results in the 2018 fiscal third quarter, including our second consecutive quarter of record revenue. The successful ongoing execution of our strategies to aggressively grow our leading ultrasonic medical device platform is providing Misonix with a solid foundation to continue expanding market share domestically as well as abroad. Importantly, our strong performance reflects our ability to achieve top line growth, while preserving healthy margins and maintaining a strong balance sheet and liquidity position, which allows us to continue making return-focused growth investments, including the development of our next generation of products.

“Our record third quarter revenue of $12.4 million includes $4 million of license revenue related to an agreement with a Chinese partner. In addition to the license revenue, we generated continued revenue growth across domestic and international markets, both on a quarterly and on a nine-month basis, as well as ongoing growth in both consumables and sales of our core products. Misonix’s strong revenue growth reflects growing market demand for our products, resulting in a 17% growth in product revenue for the quarter and a 24% increase year to date. We are also very pleased to see our consumables business continue its double-digit revenue growth trajectory, something the team has been laser focused on given the high margins and added predictability of this revenue stream. Excluding license revenue, consumables accounted for 70% of total sales for the quarter, including 88% of domestic sales.

“The strategic initiatives we have implemented through-out the company and the changes we have made are yielding positive results across our business and have positioned Misonix to pursue a range of near- and long-term profitable growth opportunities.

“Nexus, our next generation of products to be launched later this year, will present a compelling value proposition to both hospitals and physicians, while allowing Misonix to further penetrate operating rooms by expanding our addressable procedures. For the first nine months of fiscal 2018, over 45,000 surgical procedures have been performed with Misonix consumables, which positions us well to achieve our goal of 100,000 annual procedures world-wide within the next 3 years.

“Looking ahead, we are excited about the opportunities to enhance shareholder value by expanding our scale, growth and profitability. As we bring the next generation of products to market and complete our transformation to a direct commercialization platform, we remain confident in our ability to end fiscal 2018 with double-digit top-line growth and to continue that growth trend into fiscal 2019.”

Sales Performance Supplemental Data

For the three months ended
March 31, Net change
2018 2017 $ %
Total
Consumables $   5,898,937 $   5,281,454 $   617,483 11.7 %
Equipment   2,530,195   1,896,309   633,886 33.4 %
License   4,010,000   –   4,010,000 100.0 %
Total $   12,439,132 $   7,177,763 $   5,261,369 73.3 %
Domestic product:
Consumables $   4,340,759 $   3,736,960 $   603,799 16.2 %
Equipment   590,269   278,348   311,921 112.1 %
Total $   4,931,028 $   4,015,308 $   915,720 22.8 %
International product:
Consumables $   1,558,178 $   1,544,494 $   13,684 0.9 %
Equipment   1,939,926   1,617,961   321,965 19.9 %
Total $   3,498,104 $   3,162,455 $   335,649 10.6 %
License   4,010,000   –   4,010,000 100.0 %

Joe Dwyer, Chief Financial Officer, added, “Misonix generated record revenue and strong results across several key financial metrics in the 2018 fiscal third quarter, including net income, earnings per share, cash from operations and adjusted EBITDA, reflecting the ongoing success we are achieving in transforming our operations and cost structure to become more efficient, while implementing effective sales and marketing strategies focused on expanding our market footprint and creating added demand for our products.

“In the third quarter, we saw significant revenue contributions from our agreement with one of our Chinese partners, as we recognized $4 million in license revenue following the successful delivery of the SonaStar technology for future production in China. The license revenue was the main driver of the over 820 basis point gross margin improvement. Going forward, we expect gross margin to be in-line with recent results at around 70%.

“We also further strengthened our liquidity position, ending the fiscal third quarter with over $12.3 million in cash, while remaining debt free. We believe it is important to preserve our strong liquidity position while remaining as committed as ever to profitably growing the business through organic growth investments and select accretive acquisitions that will add complementary capabilities to our product portfolio and generate strong returns for our shareholders.

“With our focus on growth, disciplined expense management, efforts to drive operational efficiencies, emphasis on driving consumable sales and ongoing transition towards a direct sales force model, we are confident we are putting in place an operational structure that will appropriately position Misonix to achieve its potential and create significant value for shareholders.

“Given the strong performance in our fiscal third quarter and year-to-date results, we are increasing our total revenue guidance for the year ending June 30, 2018 to between $35 million and $36 million, which implies annual revenue growth of 28% to 32%.

Fiscal Third Quarter 2018 Conference Call
Misonix will host a conference call at 4:30 p.m. ET today, Monday, May 7, 2018.  Senior management will discuss the financial results and host a question and answer session.  The dial in number for the audio conference call is 800-263-0877 (domestic) or 323-794-2094 (international), conference ID 7937390. Participants may also listen to a live webcast of the call through the “Events and Presentations” section under “Investor Relations” on Misonix’s website at www.misonix.com.

A webcast replay will be available for 30 days following the live event at www.misonix.com.

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Josh Sandberg

Josh Sandberg is the President of Ortho Sales Partners and Partner for The De Angelis Group. He also serves as Co-Founder and Editor of OrthoSpineNews.

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