Exhibit 99.1

 

 

 

 

February 4, 2014

For Immediate Release

 

Urologix Reports Fiscal Year 2014 Second Quarter Results

·         Second quarter revenue totaled $3.8 million

 

MINNEAPOLIS, Feb. 4, 2014 (GLOBE NEWSWIRE) -- Urologix®, Inc. (OTCQB:ULGX), the leading provider of in-office procedures for the safe, durable and effective treatment of BPH, today reported financial results for its fiscal second quarter ended December 31, 2013.

Operating Results for the Second Quarter of Fiscal Year 2014

Second quarter fiscal year 2014 revenue totaled $3.8 million, up 0.7% sequentially which is relatively flat with the first quarter of fiscal year 2014 and down 12.6% compared to the second quarter of fiscal year 2013. The revenue decline compared to the second quarter of fiscal year 2013 was due to lower volume of units sold in both product lines.

“Second quarter revenue improved slightly sequentially, but did not meet our growth expectations. Our results combined with our assessment of where we can have the most impact in our market led us to implement the restructuring of the organization at the beginning of January. Careful management of our resources in advance of the restructuring helped our ending cash position in the quarter,” stated Greg Fluet, Chief Executive Officer. “Our new organizational structure should allow us to meet our operational goals with improved profitability in the future. We remain intently focused on serving the unmet clinical needs of the large number of men suffering from the symptoms related to BPH. The execution of our market development and patient education programs will continue as we work to expand the market for our in-office BPH treatments.”

As of December 31, 2013, the Company’s cash balance was $1.3 million compared to $1.6 million as of September 30, 2013. Cash utilization in the quarter was $284,000. The Company’s cash utilization benefited from increased collections at the end of the calendar year and reduced operating expenses. The Company’s cash needs will be determined by a number of items including operating performance, accessibility of the Silicon Valley Bank (“SVB”) line of credit and the timing of the payment of annual royalty amounts due and unpaid in the second quarter of the fiscal year totaling $650,000 which are included in short-term deferred acquisition payments on the balance sheet. The Company is pleased to announce today that it entered into an amendment to the line of credit with SVB which extends the line through June 30, 2014. Additional information on this extension is included in a separate press release issued today.

Gross profit for the second quarter of fiscal year 2014 was $1.8 million, or 47.2% of revenue, compared to $2.2 million, or 51.4% of revenue, in the second quarter of fiscal year 2013. Gross margin also declined sequentially compared to 49.3% in the first quarter of fiscal year 2014. The change in gross margin compared to the prior year second quarter and first quarter of fiscal year 2014 was primarily due to lower production volumes to reduce inventory levels in the second quarter of fiscal year 2014 as well as higher costs related to the Prostiva product line. The lower production volumes resulted in increased fixed manufacturing costs on a per-unit basis.

 

 
 

 

Total operating expense was $2.7 million for the second quarter of fiscal year 2014, representing a decline of 12.3% compared to the prior year period and a decline of 11.1% sequentially. The decline as compared to the second quarter of fiscal year 2013 in total operating expense was driven by lower sales and marketing expense as well as lower research and development expense, offset partially by the medical device excise tax which was not assessed in the prior year period. The sequential decline in operating expense was driven by the combination of lower costs in sales and marketing as well as lower legal and audit fees.

For the second quarter of fiscal year 2014, Urologix reported a net loss of $1.1 million, or $0.05 per diluted share, compared to a net loss of $970,000, or $0.05 per diluted share, in the second quarter of fiscal year 2013. The change in net loss in the second quarter of fiscal year 2014 was primarily due to lower sales and gross profit compared to the prior year second quarter. The net loss this quarter represented a modest sequential improvement over the net loss of $1.3 million, or $0.06 per share, in the first quarter of fiscal 2014. The sequential improvement in net loss in the second quarter was driven by lower operating expenses.

Earnings Call Information

Urologix will host a conference call with the financial community to discuss fiscal year 2014 second quarter results on Tuesday, February 4, 2014 at 4:00 p.m. Central Standard Time. To listen to the call, please dial 1-800-688-0836 and enter the Participant Passcode 89504173 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 Prostiva® RF Therapy System delivers radio frequency energy directly into the prostate destroying prostate tissue, reducing constriction of the urethra, and thereby relieving BPH symptoms. Both of these therapies 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.

If you'd like more information on this topic, please contact Brian Smrdel at (763) 475-7696 or bsmrdel@urologix.com or to learn more about Urologix and its products and services, visit their website at www.urologix.com.

The Urologix, Inc. logo is available at www.urologix.com/clinicians/resource-library.php.

 

 
 

 

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, the effectiveness of the Company's sales and marketing strategies and organization, the Company's future revenue and operating performance, the effect on expenses or cash balances as a result of the previously announced strategic restructuring, the development and marketing of new products, the timing or payment of any amounts to Medtronic, or the availability of borrowing under the line of credit with Silicon Valley Bank. 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, 2013 and other documents filed with the Securities and Exchange Commission.

CONTACT:

 

Urologix Investor Relations Contact

Brian Smrdel

(763) 475-7696

Bsmrdel@urologix.com

 

 

 

 

 

 

 

 

 

 

 

 

 
 

 

Urologix, Inc.

Statements of Operations

(Unaudited, in thousands, except per share data)

 

    Three Months Ended
December 31,
    Six Months Ended
December 31,
 
    2013     2012     2013     2012  
                         
Sales   $ 3,806     $ 4,354     $ 7,585     $ 8,324  
Cost of goods sold     2,008       2,117       3,923       4,072  
Gross profit     1,798       2,237       3,662       4,252  
                                 
Costs and expenses:                                
Sales and marketing     1,681       2,007       3,527       3,724  
General and administrative     561       646       1,246       1,383  
Research and development     452       602       874       1,218  
Change in value of acquisition consideration     (85 )     (215 )     (93 )     (369 )
Medical device tax     59             119        
Amortization expense     22       26       44       52  
Total costs and expenses     2,690       3,066       5,717       6,008  
                                 
Operating loss     (892 )     (829 )     (2,055 )     (1,756 )
Interest expense     (178 )     (127 )     (338 )     (249 )
Foreign currency exchange gain/(loss)     1       2       2       (3 )
Loss before income taxes     (1,069 )     (954 )     (2,391 )     (2,008 )
                                 
Income tax expense     16       16       28       32  
Net loss   $ (1,085 )   $ (970 )   $ (2,419 )   $ (2,040 )
                                 
Net loss per common share--basic   $ (0.05 )   $ (0.05 )   $ (0.11 )   $ (0.10 )
                                 
Net loss per common share--diluted   $ (0.05 )   $ (0.05 )   $ (0.11 )   $ (0.10 )
                                 
Weighted average number of common shares outstanding--basic     21,245       20,835       21,132       20,507  
                                 
Weighted average number of common shares outstanding--diluted     21,245       20,835       21,132       20,507  

 

 

 

 

 
 

 

 

Urologix, Inc.

Balance Sheets

(Unaudited, in thousands)

 

    December 31,
2013
    June 30,
2013
 
ASSETS                
Current assets:                
Cash   $ 1,267     $ 2,290  
Accounts receivable, net     1,856       2,132  
Inventories     1,357       1,571  
Prepaids and other current assets     264       128  
Total current assets     4,744       6,121  
Property and equipment:                
Property and equipment     12,158       12,165  
Less accumulated depreciation     (11,569 )     (11,430 )
Property and equipment, net     589       735  
Other intangible assets, net     1,483       1,587  
Goodwill     3,036       3,036  
Long-term inventories     959       1,043  
Other assets     5       5  
Total assets   $ 10,816     $ 12,527  
                 
LIABILITIES AND SHAREHOLDERS’ EQUITY/(DEFICIT)                
Current liabilities:                
Accounts payable   $ 1,054     $ 628  
Accrued compensation     677       721  
Deferred income     7       5  
Short-term deferred acquisition payment     1,270       681  
Other accrued expenses     525       602  
Total current liabilities     3,533       2,637  
                 
Deferred tax liability     54       36  
Long-term deferred acquisition payment     3,552       4,026  
Long-term debt     5,333       5,333  
Other accrued liabilities     56       75  
Interest payable     165        
Total liabilities     12,693       12,107  
                 
Shareholders’ equity/(deficit):                
Common stock     209       208  
Additional paid-in capital     119,351       119,230  
Accumulated deficit     (121,437 )     (119,018 )
Total shareholders’ equity/(deficit)     (1,877 )     420  
Total liabilities and shareholders’ equity/(deficit)   $ 10,816     $ 12,527  
                 

 

 

 

 
 

 

Urologix, Inc.

Condensed Statements of Cash Flows

(Unaudited, in thousands)

 

    Six Months Ended
December 31,
 
    2013     2012  
Operating Activities:                
Net loss   $ (2,419 )   $ (2,040 )
Adjustments to reconcile net loss to net cash used for operating activities:                
Depreciation and amortization     302       339  
Employee stock-based compensation expense     122       151  
Provision for bad debts     29       23  
Loss on disposal of assets     3       7  
Accretion expense on deferred acquisition payments     209       284  
Net adjustment to acquisition consideration     (93 )     (369 )
Deferred income taxes     18       22  
Change in operating items, net of acquisition:                
Accounts receivable     247       (92 )
Inventories     276       (577 )
Prepaids and other assets     (136 )     44  
Accounts payable     426       1,599  
Accrued expenses and deferred income     (139 )     (177 )
Interest payable     165        
Net cash used for operating activities     (990 )     (786 )
                 
Investing Activities:                
Purchase of property and equipment     (27 )     (36 )
Purchases of intellectual property     (6 )     (12 )
Net cash used for investing activities     (33 )     (48 )
                 
Financing Activities:                
   Issuance of common stock           3,814  
Net cash provided by financing activities           3,814  
                 
Net decrease in cash and cash equivalents     (1,023 )     2,980  
Cash and cash equivalents:                
Beginning of period     2,290       1,899  
End of period   $ 1,267     $ 4,879  
                 
Supplemental cash-flow information                
Income taxes paid during the period   $ 12     $ 15  
Net amount of inventory transferred to property and equipment   $ 22     $ 56  

 

 

 

The following information was filed by Urologix Inc (ULGX) on Wednesday, February 5, 2014 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.

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