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Press Release: Misonix Reports Fiscal 2021 Second Quarter Financial Results

· 02/04/2021 16:39
For the three months ended December 31, Net change ------------------------ ----------------------- 2020 2019 $ % Total --------------- Surgical $10,119,125 $ 9,988,559 $ 130,566 1.3% Wound 8,137,285 9,733,427 (1,596,142) -16.4% ---------- ---------- ---------- ----- Total $18,256,410 $19,721,986 $(1,465,576) -7.4% ---------- ---------- ---------- ----- Domestic: --------------- Surgical $ 6,771,467 $ 5,652,381 $ 1,119,086 19.8% Wound 8,054,039 9,606,332 (1,552,293) -16.2% ----- Total $14,825,506 $15,258,713 $ (433,207) -2.8% ---------- ---------- ---------- ----- International: --------------- Surgical $ 3,347,658 $ 4,336,178 $ (988,520) -22.8% Wound 83,246 127,095 (43,849) -34.5% ----- Total $ 3,430,904 $ 4,463,273 $(1,032,369) -23.1% ---------- ---------- ---------- ------- The novel coronavirus disease ("COVID-19") continued to materially impact the industry and Misonix's business in the first and second quarters of fiscal 2021 as elective procedures were delayed in order to treat patients affected by the COVID-19 pandemic and to allow health providers to comply with new safety measures. -- Fiscal 2021 second quarter revenue of $18.3 million decreased 7.4%, compared to $19.7 million in the fiscal 2020 second quarter. -- Domestic surgical revenue increased 19.8% -- International revenue declined 23.1% -- Domestic wound revenue declined 16.2% -- Gross profit percentage on sales for the fiscal 2021 second quarter increased approximately 130 basis points to 71.2%, compared with 69.9% in the fiscal 2020 first quarter. -- Operating expenses decreased 26.2% during the fiscal 2021 second quarter as compared with the fiscal 2020 second quarter, reflecting improved cost management, a net $1.2 million bad debt recovery in the fiscal 2021 second quarter, and $1.0 million contract asset write off in the prior year. Excluding the bad debt and contract asset activity, operating expenses were 15.0% lower during the second quarter compared to the prior year. -- Net loss for the fiscal 2021 second quarter narrowed to $1.3 million, or a loss of $0.07 per diluted share, compared to a net loss of $5.1 million, or a loss of $0.33 per diluted share, in the fiscal 2020 second quarter. -- Fiscal 2021 second quarter Adjusted EBITDA improved to positive $1.6 million, compared to an Adjusted EBITDA loss of $1.9 million in the fiscal 2020 second quarter. -- In December 2020, Misonix announced that the second largest U.S. commercial payer is now covering TheraSkin for the treatment of all lower extremity wounds, expanding TheraSkin's coverage by approximately 32 million lives.Three Months Ended Six Months Ended December 31, December 31, -------------------------------- -------------------------------- 2020 2019 2020 2019 Revenue $18,256,410 $19,721,986 $35,991,752 $30,867,908 Gross profit $12,991,711 $13,776,878 $25,616,452 $21,686,153 Gross profit percentage 71.2% 69.9% 71.2% 70.3% Pretax loss $(1,264,597) $(5,088,973) $(6,243,249) $(7,377,481) Income tax benefit $ - $ - $ - $ 4,085,000 Net loss $(1,264,597) $(5,088,973) $(6,243,249) $(3,292,481) EBITDA (1) $ 802,564 $(3,290,062) $(2,118,986) $(5,082,177) Adjusted EBITDA (1) $ 1,555,575 $(1,925,410) $ (599,842) $(1,617,966) December 31, June 30, 2020 2020 --------------- --------------- Cash and cash equivalents $32,833,836 $37,978,809 Current and Long Term Debt $43,895,249 $43,695,249

Misonix Reports Fiscal 2021 Second Quarter Financial Results

FARMINGDALE, N.Y., Feb. 04, 2021 (GLOBE NEWSWIRE) -- Misonix, Inc. (Nasdaq: MSON) ("Misonix" or the "Company"), a provider of minimally invasive therapeutic ultrasonic medical devices and regenerative products that enhance clinical outcomes, today reported financial results for the fiscal 2021 second quarter ended December 31, 2020 as summarized below:

(1) Definitions and disclosures regarding non-GAAP financial information including reconciliations are included at the end of this press release.

Second Quarter Fiscal Year 2021 Highlights:

Stavros Vizirgianakis, President and Chief Executive Officer of Misonix stated, "While COVID-19 remains a challenge for the global healthcare industry, our fiscal 2021 second quarter results reflect the ongoing strong execution by our team in generating sequential growth in total product revenue since the peak of the pandemic in June, as well as significantly improved financial performance since that time. Notably, the meaningful measures we have taken to reduce costs and improve operating efficiencies over the past nine months, combined with our strong gross profit margin of approximately 70%, enabled us to achieve positive second fiscal quarter adjusted EBITDA.

"During the second fiscal quarter, the continued strength of neXus drove a year-over-year increase in domestic surgical revenue of nearly 20%, which is largely in-line with our historical growth levels, while domestic wound sales and international product sales remain more impacted by COVID-19. With the continued healthy adoption of neXus and a growing footprint from which to expand our business, we expect to return to pre-pandemic top-line growth when we return to a more normalized environment. As such, we remain focused on developing and refining our commercial infrastructure, including acquiring additional sales resources, to ensure that we are in the best position to drive market share gains and further adoption of our surgical and regenerative products as we emerge from the pandemic.

"As we enter the second half of fiscal 2021, we are excited about the opportunities to grow organically by leveraging our proprietary ultrasonic technology and expanding the procedures we participate in, as well as the potential for additional distribution partnerships to further our offering across both surgical and wound. We are actively managing the business to best position Misonix for the future and remain confident in our ability to achieve our goals for long-term profitable growth and enhanced shareholder value."

Sales Performance Supplemental Data

Joe Dwyer, Chief Financial Officer, added, "We are pleased with the healthy sequential growth in product revenue from $17.7 million in our fiscal first quarter to $18.3 million in the current quarter against the backdrop of a difficult operating environment. Notably, the actions we have taken since the beginning of the pandemic to streamline our cost structure enabled us to meaningfully lower cash used in operations to $1.4 million in the current quarter, and report positive Adjusted EBITDA of $1.6 million in the fiscal 2021 second quarter, compared to an Adjusted EBITDA loss of $1.9 million in the prior year. In addition, we continue to lower our cash burn, and have restructured our term debt to lower our borrowing rate, extend the maturity date, and extend the debt repayment schedule.

"With a strong balance sheet reflecting over $32 million in cash at December 31, 2020, we believe Misonix is well positioned to withstand the near-term challenges related to COVID-19 and remain confident in the long-term prospects of our business. Although it is difficult to predict what the impact of COVID-19 will be in the coming months, we are optimistic that procedural volumes will grow as we move further into the year, following broad vaccine distribution."

Fiscal Second Quarter 2021 Conference Call and Webcast

Misonix will host a conference call and webcast today, February 4, 2021, at 4:30 p.m. ET to discuss its financial results and operations, and host a question and answer session. The dial-in number for the audio conference call is 866-248-8441 (domestic) or 323-289-6576 (international) conference ID: 2793331. Participants may also listen to a live webcast of the call at the Company's website through the "Events and Presentations" section under "Investor Relations" at www.misonix.com. Following its completion, a replay of the webcast will be available for 30 days on the Company's website, www.misonix.com.

About Misonix, Inc.

Misonix, Inc. (Nasdaq: MSON) is a provider of minimally invasive therapeutic ultrasonic medical devices and regenerative tissue products. Its surgical team markets and sells BoneScalpel and SonaStar, which facilitate precise bone sculpting and removal of soft and hard tumors and tissue, primarily in the areas of neurosurgery, orthopedic, plastic and maxillo-facial surgery. The Company's wound team markets and sells TheraSkin, Therion, TheraGenesis and SonicOne to debride, treat and heal chronic and traumatic wounds in inpatient, outpatient and physician office sites of service. At Misonix, Better Matters! That is why throughout the Company's history, Misonix has maintained its commitment to medical technology innovation and the development of products that radically improve outcomes for patients. Additional information is available on the Company's web site at www.misonix.com.

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February 04, 2021 16:39 ET (21:39 GMT)