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Misonix Reports Record Fourth Quarter and Fiscal Year 2018 Revenue
Fiscal Year 2018 Revenue Rises 35% to $36.7 Million
FARMINGDALE, N.Y., Sept. 05, 2018 (GLOBE NEWSWIRE) -- Misonix, Inc. (Nasdaq: MSON) ("Misonix" or the "Company"), a provider of minimally invasive therapeutic ultrasonic medical devices that enhance clinical outcomes, today reported financial results for the fiscal 2018 fourth quarter and year ended June 30, 2018 as summarized below:
($ in millions) Three Months Ended Year Ended June 30, June 30, 2018 2017 2018 2017 ---------- ------ --------- ------ Revenue $ 8.6 $ 7.9 $ 36.7 $ 27.3 Gross Profit $ 6.1 $ 5.5 $ 26.9 $ 19.1 GP Percentage - product revenue 70.8% 69.9% 70.0% 69.9% Pretax loss from continuing operations $ (1.8) $ (1.1) $ (2.4) $ (2.9) Net loss $ (1.8) $ (0.4) $ (7.6) $ (1.7) EBITDA (1) $ (1.1) $ (0.9) $ (0.8) $ (1.6) Adjusted EBITDA (1) $ (0.2) $ (0.3) $ 4.2 $ (0.5) June 30, June 30, 2018 2017 Long Term Debt $ - $ - Cash $ 11.0 $ 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, "Our fourth quarter and fiscal 2018 top-line financial results mark the conclusion of another year of significant company-wide improvements and growth for Misonix. The ongoing and successful execution of our strategies to aggressively expand our leading ultrasonic medical device platform resulted in a 35% rise in annual revenues to a record $36.7 million, exceeding the high-end of our fiscal 2018 guidance. Record top-line growth drove a 41% increase in annual gross profit, while maintaining our healthy gross margin on product sales of 70%. The significant improvement in our fiscal 2018 top- and bottom-line financial performance reflects the added value we are generating from our growth investments and our continued progress in positioning Misonix for ongoing sustainable growth and future profitability. With the positive operating momentum across our business and a strong balance sheet, Misonix has a solid foundation to continue pursuing a range of near- and long-term growth opportunities that we are confident will deliver enhanced returns for our shareholders.
"The demonstrated clinical benefits of Misonix's ultrasonic surgical devices are a key driver behind the strong demand for our products and improved competitive position across our domestic and international markets. Robust growth in both consumables and equipment sales drove a 20% increase in product revenue for fiscal 2018. We are also very pleased to see continued double-digit revenue growth in our consumables business, a high-margin recurring revenue stream that brings added predictability to our results. Excluding license revenue, consumables accounted for 81% of total sales for the fiscal fourth quarter and 75% of sales for the full year. And, with over 62,000 surgical procedures performed with Misonix consumables, we exceeded our goal for fiscal 2018 and remain on track to meet or exceed our goal of 100,000 annual procedures world-wide within three years.
"In line with our commitment to radically improve patient outcomes through medical technology innovation, we continued to invest in R&D to support the development of new ultrasonic surgical solutions and products, including our next generation Nexus platform product. We have received an overwhelmingly positive response from physicians who tested early prototypes and have incorporated their feedback to make further enhancements to the Nexus product line, which will be unveiled at the NASS conference in September. Nexus presents a compelling value proposition to hospitals and physicians, allowing Misonix to further penetrate operating rooms by expanding our addressable markets.
"As we pursue the next phase of growth for Misonix, we will continue to focus on actively managing our capital structure, driving sales, improving productivity and increasing efficiencies. We are confident that the direction we are headed in will enable us to meet our goal of enhancing long-term shareholder value as we move through fiscal 2019 and beyond."
Sales Performance Supplemental Data
For the Quarter For the Year ($ in millions) Ended Ended Net June 30, Change June 30, Net Change 2018 2017 $ % 2018 2017 $ % ----- -------- ------ ----- ------ --------- ----- ----- Total Consumables $ 7.0 $ 5.6 $ 1.4 25.5% $ 24.5 $ 20.4 $ 4.1 20.5% Equipment 1.6 2.3 (0.7) -29.6% 8.2 6.9 1.3 17.7% License - - - - 4.0 - 4.0 100.0% Total $ 8.6 $ 7.9 $ 0.7 9.5% $ 36.7 $ 27.3 $ 9.4 34.5% Domestic Consumables $ 4.6 $ 4.0 $ 0.6 16.9% $ 17.7 $ 14.9 $ 2.8 19.1% Equipment 0.3 0.5 (0.2) -26.4% 2.3 1.6 0.7 42.4% Total 4.9 4.5 0.4 12.2% 20.0 16.5 3.5 21.3% International Consumables $ 2.4 $ 1.6 $ 0.8 46.5% $ 6.8 $ 5.5 $ 1.3 24.5% Equipment 1.3 1.8 (0.5) -30.4% 5.9 5.3 0.6 10.4% Total 3.7 3.4 0.3 5.9% 12.7 10.8 1.9 17.5% License $ - $ - $ -$ - $ 4.0 $ - $ 4.0 100.0%
Joe Dwyer, Chief Financial Officer, added, "Our strong fourth quarter and fiscal 2018 financial performance marked continued progress against our strategic initiatives, which led to record revenue as well as positive adjusted EBITDA and cash generated from operations. As a result, we ended the quarter with $11 million in cash while continuing to operate debt free. We remain focused on preserving our strong liquidity position and remain committed to profitably growing the business through investments in organic growth initiatives and select accretive acquisitions that bring complementary capabilities to our product portfolio and generate strong returns for our shareholders."
"Looking ahead, we expect double-digit top-line growth to continue in fiscal 2019 as we continue to follow the approach we've successfully deployed to build the top line, maintain close control of fixed and variable costs and optimize the balance sheet and capital structure. As it relates to revenue guidance, we anticipate product revenue growth in fiscal 2019 to exceed 20%, with gross profit margins of approximately 70%."
Fiscal Fourth Quarter 2018 Conference Call
Misonix will host a conference call at 4:30 p.m. ET today, Wednesday, September 5, 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 888-204-4368 (domestic) or 323-794-2423 (international), conference ID 3913387. 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.
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
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