Exhibit 99.1

 

 

 

FOR IMMEDIATE RELEASE

 

Urologix Reports Results for
Fourth Quarter and Fiscal Year 2012

 

  • Fiscal year 2012 revenue increased 35% over the fiscal year 2011 period in line with annual guidance
  • Fourth quarter revenue of $4.5 million up 54% year-over-year and down 5% sequentially
  • Positive cash flow in the fourth quarter of $42,000
  • Completion of secondary offering on August 7, 2012 raised $3.8 million

 

MINNEAPOLIS — August 23, 2012 — Urologix®, Inc. (NASDAQ:ULGX), the leading provider of in-office procedures for the safe, durable and effective treatment of BPH, today reported financial results for its fiscal year fourth quarter and fiscal year ended June 30, 2012.

 

Fourth quarter fiscal year 2012 revenue totaled $4.5 million, up 54.2% year-over-year and down 5.0% sequentially. The fourth quarter year over year increase in revenue was driven by the incremental contribution of Prostiva® Radio Frequency (RF) Therapy product revenue. The sequential decline in total Urologix revenue was due to lower procedure kit sales volume in the Company’s direct channel.

 

As of June 30, 2012, the Company’s cash balance was $1.9 million. The Company generated $42,000 in cash flow in the fourth fiscal quarter ended June 30, 2012 compared to cash utilization of $729,000 in the same period last year. The cash performance is a result, in part, of beneficial payment terms on Prostiva product inventory and the timing of royalty payments. Subsequent to the June 30, 2012 year end, the Company successfully completed a secondary offering that contributed an additional $3.8 million to its cash balances.

 

“Fiscal 2012 was an important year for Urologix. The acquisition of the Prostiva RF Therapy System at the beginning of the year established the Company as the leading provider of in-office technologies for the treatment of BPH,” stated Stryker Warren, Jr., CEO. “In addition to successfully integrating this sizable acquisition, we accomplished a great deal this year including: strengthening our balance sheet, enhancing our sales organization, adding international distribution and implementing our compelling market development programs. While we were not pleased with our top-line performance over the past year, we remain focused on executing our growth strategy and we intend to improve results in fiscal 2013.”

 

 
 

 

 

Gross profit for the fourth quarter of fiscal year 2012 was $2.3 million, or 50.6% of revenue, compared to $1.3 million, or 43.0%, in the fourth quarter of fiscal year 2011. The increase in gross profit compared to the prior year was impacted by an accounting adjustment made in the fourth quarter of fiscal year 2011 to correct over-capitalized manufacturing variances of approximately $158,000. This adjustment negatively impacted fourth quarter fiscal year 2011 gross margin by 540 basis points. Gross margin for the fourth quarter of fiscal year 2012 was flat compared to the third quarter of fiscal year 2012. Gross margin for the fourth quarter was impacted by non-cash items related to Prostiva purchase accounting which lowered gross margin by 110 basis points.

 

Total operating expense of $3.4 million in the fourth quarter of fiscal year 2012 increased 30.9% year-over-year driven primarily by the expansion of the direct sales force that occurred with the acquisition of the Prostiva product line. Total operating expense increased 3.8% on a sequential basis due to incremental investment in sales and marketing compared to the third quarter of fiscal 2012. A gain of $172,000 related to the change in the fair value of the contingent consideration for the Prostiva business was recorded in operating expense for the fourth quarter of fiscal year 2012.

 

For the fourth quarter of fiscal year 2012, Urologix reported a net loss of $1.2 million, or $0.08 per diluted share, compared to a net loss of $1.3 million, or $0.09 per diluted share, in the fourth quarter of fiscal year 2011. The net loss in the fourth quarter of fiscal year 2012 was adversely affected by $205,000 of non-cash imputed interest expense on deferred acquisition payments.

 

For the fiscal year 2012 period ended June 30, 2012, revenues totaled $17.0 million, an increase of 35.4% compared to revenues of $12.6 million in fiscal year 2011. Fiscal year 2012 revenue performance compared to prior year was fueled by the addition of sales of Prostiva product after completion of the acquisition.

 

Gross profit for fiscal year 2012 was $8.4 million, or 49.2% of revenue. Gross margin declined 280 basis points year-over-year driven primarily by the addition of the Prostiva business to the product mix. The impact of non-cash expenses this fiscal year related to Prostiva purchase accounting negatively impacted gross margin by approximately 140 basis points. Total operating expense of $12.5 million increased 22.0% year-over-year primarily as a result of the previously stated investment in sales and marketing.

 

The Company reported a net loss of $4.7 million, or $0.32 per diluted share, for fiscal year 2012, compared to a net loss of $3.7 million, or $0.26 per diluted share, in the prior fiscal year period.

 

Outlook

 

The Company is introducing a fiscal year 2013 total revenue guidance range of $17.5 million to $19 million.

 

 
 

 

 

Earnings Call Information

 

Urologix will host a conference call with the financial community to discuss fiscal year 2012 fourth quarter results on Thursday, August 23, 2012 at 4:00 p.m. Central Daylight Time. To listen to the call, please dial 1-866-800-8651 and enter the Participant Passcode 49658187 at least 10 minutes prior to the call. A live webcast of the call will be available through the investor relations section of the Company’s website at www.urologix.com and available for replay approximately two hours after the completion of the call.

 

About Urologix

 

Urologix, Inc., based in Minneapolis, develops, manufactures, markets and distributes minimally invasive medical products for the treatment of obstruction and symptoms due to Benign Prostatic Hyperplasia (BPH).  Urologix’ Cooled ThermoTherapy™ produces targeted microwave energy combined with a unique cooling mechanism to protect healthy tissue and enhance patient comfort.  The Cooled ThermoTherapy™ product line includes the CoolWave® and Targis® Control Units and the CTC Advance® and Targis® catheter families.  The Prostiva® RF Therapy System distributed by Urologix delivers radio frequency energy directly into the prostate destroying prostate tissue, reducing constriction of the urethra, and thereby relieving BPH voiding symptoms.  Both of these products provide safe, effective and lasting relief of the symptoms and obstruction due to BPH. Prostiva® is a registered trademark of Medtronic, Inc., used under license.  All other trademarks are the property of Urologix.

 

Forward Looking Statements

 

This press release contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Any statements contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, words such as “may,” “will,” “expect,” “believe,” “anticipate,” “estimate” or “continue” or comparable terminology are intended to identify forward-looking statements. Such forward looking statements include, for example, statements about the effectiveness of the Company’s sales and marketing strategies, the Company’s future revenue and operating performance, or about the development and marketing of new products. The statements made by the Company are based upon management’s current expectations and are subject to certain risks and uncertainties that could cause the actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties include market conditions and other factors beyond the Company’s control and the risk factors and other cautionary statements described in the Company’s Annual Report on Form 10-K for the year ended June 30, 2011 and other documents filed with the Securities and Exchange Commission.

 

Contact: Brian J. Smrdel, Chief Financial Officer, (763) 475-7696

 

 

 
 

 

 

Urologix, Inc.

Statements of Operations

(Unaudited, in thousands, except per share data)

 

   Three Months Ended
June 30,
   Twelve Months Ended
June 30,
 
                 
   2012   2011   2012   2011 
                 
Sales  $4,497   $2,916   $17,027   $12,571 
Cost of goods sold   2,220    1,663    8,645    6,030 
Gross profit   2,277    1,253    8,382    6,541 
                     
Costs and expenses:                    
Sales and marketing   2,113    1,308    7,027    5,197 
General and administrative   820    673    3,393    2,808 
Research and development   577    583    2,189    2,238 
Change in value of contingent consideration   (172)       (172)    
Amortization expense   26    6    90    24 
Total costs and expenses   3,364    2,570    12,527    10,267 
                     
Operating loss   (1,087)   (1,317)   (4,145)   (3,726)
Interest income/(expense)   (111)       (482)   1 
Foreign currency exchange gain/(loss)   (10)       (13)    
Loss before income taxes   (1,208)   (1,317)   (4,640)   (3,725)
                     
Income tax expense (benefit)   17    13    55    8 
Net loss  $(1,225)  $(1,330)  $(4,695)  $(3,733)
                     
Net loss per common share--basic  $(0.08)  $(0.09)  $(0.32)  $(0.26)
                     
Net loss per common share--diluted  $(0.08)  $(0.09)  $(0.32)  $(0.26)
                     
Weighted average number of common shares outstanding--basic   14,797    14,588    14,741    14,556 
                     
Weighted average number of common shares outstanding--diluted   14,797    14,588    14,741    14,556 

 

 
 

 

 

Urologix, Inc.

Balance Sheets

(Unaudited, in thousands)

 

   June 30,
2012
   June 30,
2011
 
ASSETS          
Current assets:          
Cash and cash equivalents  $1,899   $3,061 
Accounts receivable, net   2,132    1,358 
Inventories   1,448    1,127 
Prepaids and other current assets   290    249 
Total current assets   5,769    5,795 
Property and equipment:          
Property and equipment   12,006    11,691 
Less accumulated depreciation   (11,144)   (10,830)
Property and equipment, net   862    861 
Identifiable intangible assets, net   2,262    102 
Goodwill   3,115     
Long-term inventories   663     
Other assets   5    5 
Total assets  $12,676   $6,763 
           
LIABILITIES AND SHAREHOLDERS’ EQUITY          
Current liabilities:          
Accounts payable  $3,376   $741 
Accrued compensation   732    454 
Deferred income   7    21 
Other accrued expenses   779    541 
Short-term deferred acquisition payments   2,395      
Total current liabilities   7,289    1,757 
           
Deferred income       9 
Deferred tax liability   35     
Long-term deferred acquisition payments   4,613     
Other accrued liabilities   113    151 
Total liabilities   12,050    1,917 
           
Shareholders’ equity:          
Common stock   147    145 
Additional paid-in capital   115,205    114,732 
Accumulated deficit   (114,726)   (110,031)
Total shareholders’ equity   626    4,846 
Total liabilities and shareholders’ equity  $12,676   $6,763 
           

 

 
 

 

 

Urologix, Inc.

Condensed Statements of Cash Flows

(Unaudited, in thousands)

 

   Twelve Months Ended
June 30,
 
   2012   2011 
Operating Activities:          
Net loss  $(4,695)  $(3,733)
Adjustments to reconcile net loss to net cash used for operating activities:          
Depreciation and amortization   695    565 
Employee stock-based compensation expense   359    369 
Provision for bad debts   (34)   (46)
Loss on disposal of assets   15    12 
Implied interest on deferred acquisition payments   644     
Adjustment to contingent consideration   (172)    
Deferred income taxes   35     
Change in operating items:          
       Accounts receivable   (740)   66 
       Inventories   131    243 
       Prepaids and other assets   (41)   234 
       Accounts payable   2,635    307 
       Accrued expenses and deferred income   455    (387)
Net cash used for operating activities   (713)   (2,370)
           
Investing Activities:          
Purchase of property and equipment   (57)   (272)
Purchases of intellectual property   (8)   (3)
Acquisition of business   (500)    
Net cash used for investing activities   (565)   (275)
           
Financing Activities:          
  Proceeds from stock option exercises   116    4 
Net cash provided by financing activities   116    4 
           
Net decrease in cash and cash equivalents   (1,162)   (2,641)
Cash and cash equivalents:          
Beginning of period   3,061    5,702 
End of period  $1,899   $3,061 
           
Supplemental cash-flow information          
Income taxes paid during the period  $12   $17 
Net amount of inventory transferred to property and equipment  $293   $128 
Non-cash consideration for acquisition  $6,532   $ 

 

 

 

 


The following information was filed by Urologix Inc (ULGX) on Monday, August 27, 2012 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-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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