Exhibit 99.1

 

 

 

MISONIX FISCAL 2019 FIRST QUARTER REVENUE

RISES 29% TO RECORD $9.4 MILLION

 

FARMINGDALE, N.Y., (November 8, 2018) – 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 first quarter ended September 30, 2018 as summarized below:

 

   Three Months Ended
September 30,
 
   2018   2017 
         
Revenue  $9,361,164   $7,280,723 
Gross Profit  $6,610,621   $5,103,368 
GP Percentage - product revenue   70.6%   70.1%
Pretax loss  $(2,610,986)  $(1,493,224)
Net loss  $(2,610,986)  $(1,212,224)
           
EBITDA (1)  $(2,244,398)  $(1,166,804)
Adjusted EBITDA (1)  $(644,377)  $(33,878)

 

   September 30,
2018
   June 30,
2018
 
Long Term Debt  $   $ 
Cash and cash equivalents  $9,322,811   $10,979,455 

 

(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, “Our fiscal 2019 first quarter demonstrated accelerating demand for our leading ultrasonic surgical products, reflecting the growing success of our direct sales team and the continued execution of our go-to-market strategies. Misonix generated 29% year-over-year growth in fiscal first quarter revenues to a record $9.4 million, while maintaining a healthy gross margin of approximately 70%. These factors drove a 30% rise in quarterly gross profit to $6.6 million.

 

“First quarter top-line growth reflects an 18% increase in consumables revenue and a 59% rise in equipment revenue. While some supply chain disruptions curtailed our ability to further increase revenue, we believe the growing demand for our products highlights the benefits of our ongoing investments in R&D, personnel and distribution logistics as well as the strong value proposition that our ultrasonic medical devices bring to physicians, hospitals and most importantly, patients.

 

“At September’s NASS Conference, we unveiled our new ultrasonic surgical platform, Nexus, which garnered strong industry feedback, providing us with added confidence in its potential and its ability to help us grow market share by addressing a broader range of procedures beyond those addressed by our current products. Nexus will present a highly compelling value proposition for hospitals and physicians given its ease of use, extensive functionalities and broad capabilities, and we remain on schedule for the commercial launch of the platform during the second half of fiscal 2019. While the development of Nexus led to higher year-over-year R&D expenses, we are confident the platform will be an important contributor to our long-term growth.

 

1

 

 

“In the coming quarters, we look to further leverage the meaningful company-wide investments and growth initiatives of the last several quarters, including expanding our in-house sales team, bringing Nexus to market and strengthening our supply chain and operational systems. With a healthy balance sheet and liquidity position, we are confident in our ability to continue to invest in our future and to leverage opportunities that create new value for our shareholders.”

 

Sales Performance Supplemental Data

 

    For the three months ended
September 30,
   Net change 
    2018   2017   $   % 
Total                 
Consumables   $6,339,108   $5,379,589    959,519    17.8%
Equipment    3,022,056    1,901,134    1,120,922    59.0%
Total   $9,361,164   $7,280,723    2,080,441    28.6%
                      
Domestic:                     
Consumables   $4,825,599   $4,134,918    690,681    16.7%
Equipment    578,919    592,424    (13,505)   -2.3%
Total   $5,404,518   $4,727,342    677,176    14.3%
                      
International:                     
Consumables   $1,513,509   $1,244,671    268,838    21.6%
Equipment    2,443,137    1,308,710    1,134,427    86.7%
Total   $3,956,646   $2,553,381    1,403,265    55.0%

 

Joe Dwyer, Chief Financial Officer, added, “Our fiscal 2019 first quarter results continue to demonstrate our ability to generate healthy revenue growth and improve our overall financial position, while maintaining a disciplined and focused approach that preserves our gross margin.

 

“We have undertaken initiatives to meet growing demand for our products and to reduce inefficiencies in our procurement and supply chain. In this regard, during the first quarter, we transitioned to a more capable and efficient ERP system and adopted new processes and procedures to ensure we have optimal inventory levels that better match with customer demand. We have also been actively working with our manufacturing partners to improve productivity and fill backlog orders.

 

“We are also focused on preserving our strong liquidity position, as we ended the quarter with $9.3 million in cash while continuing to operate debt free. We remain committed to growing the business through investments in both organic and inorganic growth initiatives that bring complementary capabilities to our product portfolio and generate attractive rates of returns for our shareholders. Looking ahead to the balance of fiscal 2019, we reiterate our guidance for product revenue growth that exceeds 20%, along with gross profit margins of approximately 70%.”

 

Fiscal First Quarter 2019 Conference Call

Misonix will host a conference call and webcast today, Thursday, November 8, 2018, 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 800-458-4148 (domestic) or 323-794-2598 (international), conference ID 93343974. 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.

 

2

 

 

About Misonix, Inc.

Misonix, Inc. (NASDAQ: MSON) designs, manufactures and markets ultrasonic medical devices for the precise removal of hard and soft tissue, including bone removal, wound debridement and ultrasonic aspiration. Misonix is focused on leveraging its proprietary ultrasonic technology to become the standard of care in operating rooms and clinics around the world. Misonix’s proprietary ultrasonic medical devices are used in a growing number of medical procedures, including spine surgery, neurosurgery, orthopedic surgery, cosmetic surgery, laparoscopic surgery, and other surgical and medical applications. At Misonix, Better Matters to us. That is why throughout the Company’s history, Misonix has maintained its commitment to medical technology innovation and the development of ultrasonic surgical products that radically improve patient outcomes. Additional information is available on the Company’s web site at www.misonix.com.

 

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, 2018, subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. The Company disclaims any obligation to update its forward-looking statements.

 

Contact:

Joe Dwyer Joseph Jaffoni, Norberto Aja, Jennifer Neuman

Chief Financial Officer JCIR

Misonix, Inc. 212-835-8500 or mson@jcir.com
631-694-9555  

 

3

 

 

Misonix, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(Unaudited)

 

   For the three months ended
September 30,
 
   2018   2017 
         
Revenues          
Product  $9,361,164   $7,280,723 
Total revenue   9,361,164    7,280,723 
           
Cost of goods sold   2,750,543    2,177,355 
Gross profit   6,610,621    5,103,368 
           
Operating expenses:          
Selling expenses   4,735,005    3,570,713 
General and administrative expenses   3,183,384    2,573,131 
Research and development expenses   1,304,766    901,274 
Total operating expenses   9,223,155    7,045,118 
Loss from operations   (2,612,534)   (1,941,750)
           
Other income (expense):          
Interest income   19,813    13 
Royalty income       452,971 
Other   (18,265)   (4,458)
Total other income   1,548    448,526 
           
Loss from operations before income taxes   (2,610,986)   (1,493,224)
           
Income tax (benefit)       (281,000)
Net loss  $(2,610,986)  $(1,212,224)
           
Net loss per share:          
Basic  $(0.29)  $(0.14)
Diluted  $(0.29)  $(0.14)
           
Weighted average shares - Basic   9,100,123    8,958,405 
Weighted average shares - Diluted   9,100,123    8,958,405 

 

4

 

 

Misonix, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

 

   September 30,
2018
   June 30,
2018
 
   (Unaudited)     
Assets        
Current assets:          
Cash and cash equivalents  $9,322,811   $10,979,455 
Accounts receivable, less allowance for doubtful accounts of $200,000 and $200,000, respectively   5,535,271    5,245,549 
Inventories, net   4,920,350    5,019,886 
Prepaid expenses and other current assets   583,314    611,647 
Total current assets   20,361,746    21,856,537 
           
Property, plant and equipment, net of accumulated amortization and depreciation of $9,355,964 and $9,023,235, respectively   4,346,826    4,188,378 
Patents, net of accumulated amortization of $1,097,252 and $1,063,393, respectively   773,668    757,447 
Goodwill   1,701,094    1,701,094 
Contract assets   960,000     
Intangible and other assets   468,013    517,295 
Total assets  $28,611,347   $29,020,751 
           
Liabilities and shareholders’ equity          
Current liabilities:          
Accounts payable  $2,082,704   $1,794,098 
Accrued expenses and other current liabilities   2,344,903    2,812,172 
Total current liabilities   4,427,607    4,606,270 
           
Deferred income   13,303    13,303 
Total liabilities   4,440,910    4,619,573 
           
Commitments and contingencies          
           
Shareholders’ equity:          
Common stock, $.01 par value-shares authorized 40,000,000; 9,481,251 and 9,430,466 shares issued and outstanding in each period   94,822    94,305 
Additional paid-in capital   41,192,701    39,772,973 
Accumulated deficit   (17,117,086)   (15,466,100)
Total shareholders’ equity   24,170,437    24,401,178 
Total liabilities and shareholders’ equity  $28,611,347   $29,020,751 

 

5

 

 

Use of Non-GAAP Financial Measures

 

The Company has presented the following non-GAAP financial measures in this press release: EBITDA and Adjusted EBITDA. The Company defines EBITDA as the net income (loss) as reported under GAAP, plus depreciation and amortization expense, interest expense and income tax expense (benefit). The Company defines Adjusted EBITDA as EBITDA plus non-cash stock compensation expense and engineering costs associated with its development of Nexus, its next generation platform, which will not be a recurring cost when the project is completed in the second half of fiscal 2019.

 

We present these non-GAAP measures because we believe these measures are useful indicators of our operating performance. Our management uses these non-GAAP measures principally as a measure of our operating performance and believes that these measures are useful to investors because they are frequently used by analysts, investors and other interested parties to evaluate the operating performance of companies in our industry. We also believe that these measures are useful to our management and investors as a measure of comparative operating performance from period to period.

 

Misonix, Inc. and Subsidiaries

Reconciliation of GAAP Results to Non-GAAP Measures
(unaudited)

 

   Three Months Ended
September 30,
 
   2018   2017 
EBITDA:        
Net loss  $(2,610,986)  $(1,212,224)
Depreciation and amortization   366,588    326,420 
Income tax benefits       (281,000)
EBITDA   (2,244,398)   (1,166,804)
           
Non-cash stock compensation   1,004,498    625,293 
Nexus next generation engineering   595,523    507,633 
Adjusted EBITDA  $(644,377)  $(33,878)

 

6


The following information was filed by Misonix Inc (MSON) on Thursday, November 8, 2018 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

View differences made from one quarter to another to evaluate Misonix Inc's financial trajectory

Compare SEC Filings Year-over-Year (YoY) and Quarter-over-Quarter (QoQ)
Sample 10-K Year-over-Year (YoY) Comparison

Compare this 10-Q Quarterly Report to its predecessor by reading our highlights to see what text and tables were  removed  ,   added    and   changed   by Misonix Inc.

Continue

Never Miss A New SEC Filing Again


Real-Time SEC Filing Notifications
Screenshot taken from Gmail for a new 10-K Annual Report
Last10K.com Member Feature

Receive an e-mail as soon as a company files an Annual Report, Quarterly Report or has new 8-K corporate news.

Continue

We Highlighted This SEC Filing For You


SEC Filing Sentiment Analysis - Bullish, Bearish, Neutral
Screenshot taken from Wynn's 2018 10-K Annual Report
Last10K.com Member Feature

Read positive and negative remarks made by management in their entirety without having to find them in a 10-K/Q.

Continue

Widen Your SEC Filing Reading Experience


Increased Reading Area for SEC Filings
Screenshot taken from Adobe Inc.'s 10-Q Quarterly Report
Last10K.com Member Feature

Remove data columns and navigations in order to see much more filing content and tables in one view

Continue

Uncover Actionable Information Inside SEC Filings


SEC Filing Disclosures
Screenshot taken from Lumber Liquidators 10-K Annual Report
Last10K.com Member Feature

Read both hidden opportunities and early signs of potential problems without having to find them in a 10-K/Q

Continue

Adobe PDF, Microsoft Word and Excel Downloads


Download Annual and Quarterly Reports as PDF, Word and Excel Documents
Screenshots of actual 10-K and 10-Q SEC Filings in PDF, Word and Excel formats
Last10K.com Member Feature

Export Annual and Quarterly Reports to Adobe PDF, Microsoft Word and Excel for offline viewing, annotations and analysis

Continue

FREE Financial Statements


Download Annual and Quarterly Reports as PDF, Word and Excel Documents
Screenshot of actual balance sheet from company 10-K Annual Report
Last10K.com Member Feature

Get one-click access to balance sheets, income, operations and cash flow statements without having to find them in Annual and Quarterly Reports

Continue for FREE

Intrinsic Value Calculator


Intrinsic Value Calculator
Screenshot of intrinsic value for AT&T (2019)
Last10K.com Member Feature

Our Intrinsic Value calculator estimates what an entire company is worth using up to 10 years of financial ratios to determine if a stock is overvalued or not

Continue

Financial Stability Report


Financial Stability Report
Screenshot of financial stability report for Coco-Cola (2019)
Last10K.com Member Feature

Our Financial Stability reports uses up to 10 years of financial ratios to determine the health of a company's EPS, Dividends, Book Value, Return on Equity, Current Ratio and Debt-to-Equity

Continue

Get a Better Picture of a Company's Performance


Financial Ratios
Available Financial Ratios
Last10K.com Member Feature

See how over 70 Growth, Profitability and Financial Ratios perform over 10 Years

Continue

Log in with your credentials

or    

Forgot your details?

Create Account