Three Months Ended | Years Ended | ||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||
Revenue | $ | 19,685,141 | $ | 13,713,231 | $ | 74,024,073 | $ | 62,483,651 | |||||||
Gross profit | $ | 14,075,377 | $ | 9,432,383 | $ | 52,636,255 | $ | 43,709,483 | |||||||
Gross profit percentage | 71.5 | % | 68.8 | % | 71.1 | % | 70.0 | % | |||||||
Pretax loss | $ | (4,341,201 | ) | $ | (8,495,994 | ) | $ | (14,341,254 | ) | $ | (21,916,952 | ) | |||
Income tax expense (benefit) | $ | 132,071 | $ | 41,422 | $ | 132,071 | $ | (4,498,578 | ) | ||||||
Net loss | $ | (4,473,272 | ) | $ | (8,537,416 | ) | $ | (14,473,325 | ) | $ | (17,418,374 | ) | |||
EBITDA (1) | $ | (2,275,464 | ) | $ | (6,415,808 | ) | $ | (6,148,968 | ) | $ | (15,770,303 | ) | |||
Adjusted EBITDA (1) | $ | (1,595,087 | ) | $ | (5,885,119 | ) | $ | (3,204,455 | ) | $ | (12,254,291 | ) | |||
2021 | 2020 | ||||||||||||||
Cash and cash equivalents | $ | 31,045,935 | $ | 37,978,809 | |||||||||||
Current and Long Term Debt | $ | 45,795,248 | $ | 43,695,249 | |||||||||||
(1) Definitions and disclosures regarding non-GAAP financial information including reconciliations are included at the end of this press release.
Fourth Quarter and Full Year 2021 Operational Highlights:
- On
July 29, 2021 , the Company pre-announced its fourth quarter and fiscal full year 2021 revenue results for the three-month and twelve-month periods endedJune 30, 2021 . - Fiscal 2021 fourth quarter revenue of
$19.7 million increased 43.5%, compared to$13.7 million in the fiscal 2020 fourth quarter.- Domestic surgical revenue increased 97.0%
- Domestic wound revenue increased 7.7%
- International revenue increased 95.7%
- Full year fiscal 2021 revenue of
$74.0 million increased 18.5%, compared to$62.5 million in full year fiscal 2020. On a pro forma basis, assuming that the Company had acquired Solsys Medical for the full year of fiscal 2020, revenue increased 4.5%.- Domestic surgical revenue increased 31.2%
- Domestic wound revenue increased 20.2%. On a pro forma basis, assuming that the Company had acquired Solsys Medical for the full year of fiscal 2020, the domestic wound business declined 7.7%.
- International revenue declined 4.0%
- Gross profit percentage on sales for the fiscal fourth quarter improved to 71.5%, compared with 68.8% in the fiscal 2020 fourth quarter, while full year fiscal 2021 gross margin improved to 71.1%, compared to 70.0% for the prior full year period.
- Operating expenses increased 5.2% during the fiscal 2021 fourth quarter as compared with the fiscal 2020 fourth quarter and increased 0.9% for full fiscal 2021 year, compared to the prior full year period.
- Net loss for the fiscal 2021 fourth quarter narrowed to
$4.5 million , or a loss of$0.26 per diluted share, compared to a net loss of$8.5 million , or a loss of$0.50 per diluted share, in the fiscal 2020 fourth quarter. On a full year basis, net loss was$14.5 million for fiscal 2021, or a loss of$0.84 per diluted share, compared to a net loss of$17.4 million , or a loss of$1.19 per diluted share for fiscal 2020. - Fiscal 2021 fourth quarter Adjusted EBITDA improved to a loss of
$1.6 million , compared to an Adjusted EBITDA loss of$5.9 million in the fiscal 2020 fourth quarter. On a full year basis, Adjusted EBITDA improved to a loss of$3.2 million for fiscal 2021, compared to an Adjusted EBITDA loss of$12.3 million for fiscal 2020. - Following the successful launch of the neXus Ultrasonic Surgical System in select international markets and continued strong demand domestically,
Misonix placed or sold over 250 neXus units in fiscal 2021, exceeding its full year guidance of 200 units.
- On
July 29, 2021 ,Bioventus Inc. (NASDAQ: BVS) (“Bioventus”), a global leader in innovations for active healing, andMisonix entered into a definitive merger agreement by whichBioventus will acquireMisonix in a cash-and-stock transaction for total consideration of approximately$518 million . The transaction will position the combined entity as a leading, pure-play regenerative medicine and orthopedics company serving a$15 billion total addressable market with significant growth opportunities and scale across a range of care settings, geographies, and product categories. - Under the terms of the agreement,
Misonix stockholders will have the right to elect to receive for each share ofMisonix common stock they hold either (i) 1.6839 shares ofBioventus class A common stock or (ii)$28.00 in cash, subject to proration such that the cash amount payable byBioventus in the transaction will be equal to$10.50 per share ofMisonix common stock outstanding shortly prior to the completion of the transaction. The$28.00 per-share value forMisonix represents a 25% premium to Misonix’s 30-day volume weighted average share price as of the close of trading onJuly 27, 2021 . Upon completion of the transaction,Misonix stockholders will own an approximately 25% stake in the combined company, andBioventus stockholders will own an approximately 75% stake in the combined company, each on a fully diluted basis. - The transaction, which has been unanimously approved by the boards of directors of
Bioventus andMisonix , is expected to close in late 2021, subject to the receipt of regulatory and shareholder approvals and other customary closing conditions. Additional information regarding the proposed transaction may be found in the “Investor Relations” section of Misonix’s website and in subsequent Company filings with theSecurities and Exchange Commission (the “SEC”) at www.sec.gov.
“Misonix concluded fiscal 2021 with an outstanding fourth quarter, which enabled us to deliver all-time record annual product revenue that exceeded the high-end of our guidance range for the fiscal year,” stated
“Though our wound business remained challenged throughout most of fiscal 2021, we believe that the value proposition of our ultrasonic wound debridement technology and wound care solutions remains strong and we expect to see a gradual improvement in this business over the coming quarters. We are pleased with the stronger-than-anticipated recovery in our wound business in the fiscal 2021 fourth quarter, with total wound revenue rising 7.9% for the quarter.
“In closing, I am extraordinarily proud of our talented
Sales Performance Supplemental Data (Unaudited)
For the three months ended | ||||||||||||||
Net change | ||||||||||||||
2021 | 2020 | $ | % | |||||||||||
Total | ||||||||||||||
Surgical | $ | 10,809,974 | $ | 5,486,045 | $ | 5,323,929 | 97.0 | % | ||||||
Wound | 8,875,167 | 8,227,186 | 647,981 | 7.9 | % | |||||||||
Total | $ | 19,685,141 | $ | 13,713,231 | $ | 5,971,910 | 43.5 | % | ||||||
Domestic: | ||||||||||||||
Surgical | $ | 7,456,815 | $ | 3,785,450 | $ | 3,671,365 | 97.0 | % | ||||||
Wound | 8,818,578 | 8,185,465 | 633,113 | 7.7 | % | |||||||||
Total | $ | 16,275,393 | $ | 11,970,915 | $ | 4,304,478 | 36.0 | % | ||||||
International: | ||||||||||||||
Surgical | $ | 3,353,159 | $ | 1,700,595 | $ | 1,652,564 | 97.2 | % | ||||||
Wound | 56,589 | 41,721 | 14,868 | 35.6 | % | |||||||||
Total | $ | 3,409,748 | $ | 1,742,316 | $ | 1,667,432 | 95.7 | % | ||||||
For the years ended | ||||||||||||||
Net change | ||||||||||||||
2021 | 2020 | $ | % | |||||||||||
Total | ||||||||||||||
Surgical | $ | 40,379,693 | $ | 34,457,631 | $ | 5,922,062 | 17.2 | % | ||||||
Wound | 33,644,380 | 28,026,020 | 5,618,360 | 20.0 | % | |||||||||
Total | $ | 74,024,073 | $ | 62,483,651 | $ | 11,540,422 | 18.5 | % | ||||||
Domestic: | ||||||||||||||
Surgical | $ | 27,384,277 | $ | 20,874,419 | $ | 6,509,858 | 31.2 | % | ||||||
Wound | 33,272,947 | 27,678,534 | 5,594,413 | 20.2 | % | |||||||||
Total | $ | 60,657,224 | $ | 48,552,953 | $ | 12,104,271 | 24.9 | % | ||||||
International: | ||||||||||||||
Surgical | $ | 12,995,416 | $ | 13,583,212 | $ | (587,796 | ) | -4.3 | % | |||||
Wound | 371,433 | 347,486 | 23,947 | 6.9 | % | |||||||||
Total | $ | 13,366,849 | $ | 13,930,698 | $ | (563,849 | ) | -4.0 | % | |||||
In light of the Company’s proposed transaction with
About
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 include projections regarding Misonix’s future operating results, ability to grow revenue, and ability to maintain gross profit margins. 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, the impact of COVID-19, or other pandemics, including the potential effects of new strains of the virus and any increased rates of infection, vaccine roll-out globally and the efficacy of such vaccines, and the impact of related governmental, individual and business responses. This includes our ability to obtain or forecast accurate surgical procedure volume in the midst of the COVID-19 pandemic; the risk that the COVID-19 pandemic could lead to further material delays and cancellations of, or reduced demand for, surgical or wound care procedures; curtailed or delayed capital spending by hospitals and surgical centers; potential closures of our facilities; delays in gathering clinical evidence; diversion of management and other resources to respond to the COVID-19 outbreak; the impact of global and regional economic and credit market conditions on healthcare spending; the risk that the COVID-19 virus disrupts local economies and causes economies in our key markets to enter prolonged recessions; the ability of our staff to travel to work; our ability to maintain adequate inventories and delivery capabilities; the impact on our customers and supply chain, and the impact on demand in general. These forward-looking statements are also subject to uncertainties and change resulting from 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; the entry of competitive products into the marketplace; 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 clearance of pending and/or contemplated 510(k) filings; our ability to achieve and maintain profitability in our business lines; access to capital; and other factors described from time to time in our filings with the
Forward-Looking Statements and Information
Certain statements contained in this communication may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the agreement to combine with
Participants in the Solicitation of Proxies
Non-Solicitation
This communication shall not constitute an offer to sell or the solicitation of an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.
Contact: | |
Chief Financial Officer | JCIR |
212-835-8500 or mson@jcir.com | |
631-927-9113 |
Consolidated Statements of Operations
(Unaudited)
For the three months ended | For the years ended | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Revenue | $ | 19,685,141 | $ | 13,713,231 | $ | 74,024,073 | $ | 62,483,651 | ||||||||
Cost of revenue | 5,609,764 | 4,280,848 | 21,387,818 | 18,774,168 | ||||||||||||
Gross profit | 14,075,377 | 9,432,383 | 52,636,255 | 43,709,483 | ||||||||||||
Operating expenses: | ||||||||||||||||
Selling expenses | 11,802,796 | 11,621,461 | 42,086,841 | 40,232,551 | ||||||||||||
General and administrative expenses | 4,553,015 | 4,133,578 | 16,555,468 | 17,954,567 | ||||||||||||
Research and development expenses | 1,493,871 | 1,214,246 | 5,029,458 | 4,915,943 | ||||||||||||
Total operating expenses | 17,849,682 | 16,969,285 | 63,671,767 | 63,103,061 | ||||||||||||
Loss from operations | (3,774,305 | ) | (7,536,902 | ) | (11,035,512 | ) | (19,393,578 | ) | ||||||||
Other income (expense): | ||||||||||||||||
Interest income | 1,821 | 28,830 | 10,352 | 90,785 | ||||||||||||
Interest expense | (870,439 | ) | (995,630 | ) | (3,619,730 | ) | (2,620,290 | ) | ||||||||
Other | 301,722 | 7,708 | 303,636 | 6,131 | ||||||||||||
Total other expense | (566,896 | ) | (959,092 | ) | (3,305,742 | ) | (2,523,374 | ) | ||||||||
Loss from operations before income taxes | (4,341,201 | ) | (8,495,994 | ) | (14,341,254 | ) | (21,916,952 | ) | ||||||||
Income tax (expense) benefit | (132,071 | ) | (41,422 | ) | (132,071 | ) | 4,498,578 | |||||||||
Net loss | $ | (4,473,272 | ) | $ | (8,537,416 | ) | $ | (14,473,325 | ) | $ | (17,418,374 | ) | ||||
Net loss per share: | ||||||||||||||||
Basic | $ | (0.26 | ) | $ | (0.50 | ) | $ | (0.84 | ) | $ | (1.19 | ) | ||||
Diluted | $ | (0.26 | ) | $ | (0.50 | ) | $ | (0.84 | ) | $ | (1.19 | ) | ||||
Weighted average shares - Basic | 17,247,172 | 17,177,791 | 17,226,190 | 14,670,663 | ||||||||||||
Weighted average shares - Diluted | 17,247,172 | 17,177,791 | 17,226,190 | 14,670,663 | ||||||||||||
Consolidated Balance Sheets
(Unaudited)
2021 | 2020 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 31,045,935 | $ | 37,978,809 | |||
Accounts receivable, less allowance for doubtful accounts of | 11,349,976 | 11,064,768 | |||||
Inventories, net | 15,752,155 | 14,010,684 | |||||
Prepaid expenses and other current assets | 1,118,492 | 1,668,244 | |||||
Total current assets | 59,266,558 | 64,722,505 | |||||
Property, plant and equipment, net of accumulated amortization and depreciation of | 9,253,479 | 7,304,258 | |||||
Patents, net of accumulated amortization of | 789,800 | 784,318 | |||||
108,234,664 | 108,310,350 | ||||||
Intangible assets | 19,740,492 | 21,281,136 | |||||
Lease right-of-use assets | 1,288,812 | 1,098,830 | |||||
Other assets | 286,413 | 322,310 | |||||
Total assets | $ | 198,860,218 | $ | 203,823,707 | |||
Liabilities and shareholders' equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 4,486,737 | $ | 4,273,568 | |||
Accrued expenses and other current liabilities | 11,184,656 | 7,515,751 | |||||
Current portion of lease liabilities | 571,227 | 414,058 | |||||
Current portion of notes payable | 6,449,487 | 5,099,744 | |||||
Total current liabilities | 22,692,107 | 17,303,121 | |||||
Non-current liabilities: | |||||||
Notes payable | 39,345,761 | 38,595,505 | |||||
Lease liabilities | 762,894 | 723,553 | |||||
Deferred tax liabilities | 72,812 | 33,293 | |||||
Other non-current liabilities | 787,015 | 516,665 | |||||
Total liabilities | 63,660,589 | 57,172,137 | |||||
Commitments and contingencies | |||||||
Shareholders' equity | |||||||
Common stock, | 1,741 | 1,737 | |||||
Additional paid-in capital | 188,982,484 | 185,961,104 | |||||
Accumulated deficit | (53,784,596 | ) | (39,311,271 | ) | |||
Total shareholders' equity | 135,199,629 | 146,651,570 | |||||
Total liabilities and shareholders' equity | $ | 198,860,218 | $ | 203,823,707 | |||
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 M&A transaction fees. Historically, the Company excluded bad debt expense from its calculation of Adjusted EBITDA by adding bad debt expense to EBITDA. Beginning with the quarter ended
The Company has also provided below pro-forma revenue, which is also a non-GAAP financial measurement. The Company acquired the operations of Solsys Medical at the end of its first fiscal quarter ended
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.
Reconciliation of GAAP Results to Non-GAAP Measures
(Unaudited)
Three Months Ended | Years Ended | ||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||
EBITDA: | |||||||||||||||
Net loss | $ | (4,473,272 | ) | $ | (8,537,416 | ) | $ | (14,473,325 | ) | $ | (17,418,374 | ) | |||
Income tax expense (benefit) | 132,071 | 41,422 | 132,071 | (4,498,578 | ) | ||||||||||
Depreciation and amortization | 1,195,298 | 1,084,556 | 4,572,556 | 3,526,359 | |||||||||||
Interest expense | 870,439 | 995,630 | 3,619,730 | 2,620,290 | |||||||||||
EBITDA | (2,275,464 | ) | (6,415,808 | ) | (6,148,968 | ) | (15,770,303 | ) | |||||||
Non-cash stock compensation | 646,541 | 530,689 | 2,910,677 | 1,762,628 | |||||||||||
M&A transaction fees | 33,836 | - | 33,836 | 1,753,384 | |||||||||||
Adjusted EBITDA | $ | (1,595,087 | ) | $ | (5,885,119 | ) | $ | (3,204,455 | ) | $ | (12,254,291 | ) | |||
Years Ended | |||||||||||||||
Net Change | |||||||||||||||
2021 | 2020 | $ | % | ||||||||||||
Revenue as reported | $ | 74,024,073 | $ | 62,483,651 | $ | 11,540,422 | 18.5 | % | |||||||
Solsys revenue | - | 8,381,196 | |||||||||||||
Pro forma revenue | $ | 74,024,073 | $ | 70,864,847 | $ | 3,159,226 | 4.5 | % | |||||||
Source:
2021 GlobeNewswire, Inc., source