Uroplasty Reports Record Quarterly Revenue
~ U.S. Urgent PC Sales Up 19% in Fiscal Third Quarter
~~ Total Sales Increase by 14% to $6.4 Million
MINNEAPOLIS, Jan. 23, 2014 /PRNewswire/ -- Uroplasty, Inc. (NASDAQ: UPI), a medical device company that develops, manufactures and markets innovative proprietary products to treat voiding dysfunctions, today reported strong financial results for the fiscal 2014 third quarter ended December 31, 2013.
Total revenues for the fiscal third quarter 2014 were $6.4 million, up 14% from the same quarter in the prior year. Sales of the Company's Urgent® PC Neuromodulation System in the United States grew 19% to $3.2 million, as compared to $2.7 million in the third quarter of the prior year. Sales of Macroplastique in the United States grew 11% to $1.5 million in the third quarter of fiscal 2014. Total net sales outside of the U.S. grew 11% to $1.6 million.
"Successful execution of the sales strategies we implemented earlier this fiscal year drove our continued sequential and year-over-year improvement," said Rob Kill, President and Chief Executive Officer of Uroplasty. "We are encouraged with the growth results generated to date for U.S. Urgent PC sales and expect recent trends to continue during the fourth quarter. Our sales force is gaining momentum following our investment in ongoing training during the third quarter and, as a result, we are forecasting 25-30% year-over-year revenue growth for Urgent PC in the U.S. for the fourth quarter of fiscal 2014."
The Company generated a gross margin of 87.8% in the recent fiscal third quarter compared with 86.9% in the same quarter a year ago. Operating expenses for the period totaled $6.3 million compared to $5.5 million in the same quarter last year. The increase was due primarily to higher sales and marketing costs reflecting higher personnel expenses resulting from the expansion and reorganization of the Company's selling and marketing team, costs for increased marketing programs, and the new medical device tax.
The operating loss of $0.7 million in the fiscal third quarter compares with a $0.7 million operating loss in the same quarter last year. Excluding non-cash charges for share-based compensation and depreciation and amortization expense, the non-GAAP operating loss was $0.3 million in the third quarter of fiscal 2014, compared with a $0.1 million non-GAAP operating loss in the third quarter a year ago.
For the nine-month period ended December 31, 2013, sales grew 8% to $18.2 million, reflecting a 9% increase in U.S. sales and a 5% increase in sales outside the U.S. In the U.S., sales of Urgent PC increased 13% to $9.0 million. At December 31, 2103, cash, cash equivalents and cash investments totaled $12.6 million.
Conference Call
Uroplasty will host a conference call and webcast today at 4:30 p.m. Eastern Time (3:30 p.m. Central Time) to discuss these results. Rob Kill, President and Chief Executive Officer, and Brett Reynolds, Chief Financial Officer, will host the call. Individuals wishing to participate in the conference call should dial 877-941-9205. No passcode is necessary. To access a live webcast of the call, go to Uroplasty's website at www.uroplasty.com and click on the Investor Relations section.
An audio replay will be available for 30 days following the call at 800-406-7325 with the passcode 4660925#. An archived webcast will also be available at investor.uroplasty.com.
About Uroplasty, Inc.
Uroplasty, Inc., headquartered in Minnetonka, Minnesota, with wholly-owned subsidiaries in The Netherlands and the United Kingdom, is a global medical company committed to offering transformative treatment options to specialty physicians. Our products are designed to help providers change the lives of their voiding dysfunction patients and strengthen the efficiency of their practices. Our focus is the continued commercialization of our Urgent® PC Neuromodulation System, the only commercially available FDA-cleared system that delivers percutaneous tibial nerve stimulation (PTNS) for the office-based treatment of overactive bladder and associated symptoms of urgency, frequency and urge incontinence. We also offer Macroplastique®, an injectable urethral bulking agent for the treatment of adult female stress urinary incontinence primarily due to intrinsic sphincter deficiency. For more information on the company and its products, please visit Uroplasty, Inc. at www.uroplasty.com.
Forward-Looking Information
This press release contains forward-looking statements that reflect our best estimates regarding future events and financial performance. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from our anticipated results. We discuss in detail the factors that may affect the achievement of our forward-looking statements in our Annual Report on Form 10-K filed with the SEC. In particular, we cannot be certain that we will ever achieve sustained profitability, that the rate of reimbursement for PTNS treatments will be adequate to justify the cost of our product, that other Medicare carriers or private payers will provide coverage for this treatment or that existing carriers and payers will not change their coverage decisions, that the rate of adoption of our products by new customers will continue, or that any of the other risks identified in our 10-K will not adversely affect our expectations as described in these forward-looking statements.
For Further Information:
Uroplasty, Inc.
Brett Reynolds, SVP and CFO
952.426.6152
EVC Group
Leigh Salvo (Investors)
415.568.9348 or
Doug Sherk
415.652.9100
Janine McCargo (Media)
646.688.0425
| UROPLASTY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) |
|||||||
| Three Months Ended |
Nine Months Ended |
||||||
| December 31 |
December 31 |
||||||
| 2013 |
2012 |
2013 |
2012 |
||||
| Net sales |
$6,398,675 |
$5,590,431 |
$18,216,391 |
$16,877,394 |
|||
| Cost of goods sold |
$778,267 |
734,171 |
2,268,156 |
2,264,721 |
|||
| Gross profit |
5,620,408 |
4,856,260 |
15,948,235 |
14,612,673 |
|||
| Operating expenses |
|||||||
| General and administrative |
1,194,882 |
1,058,558 |
5,166,255 |
3,178,239 |
|||
| Research and development |
526,224 |
533,867 |
1,434,647 |
1,695,841 |
|||
| Selling and marketing |
4,546,100 |
3,725,530 |
13,496,593 |
11,424,407 |
|||
| Amortization |
7,873 |
215,681 |
22,347 |
646,971 |
|||
| 6,275,079 |
5,533,636 |
20,119,842 |
16,945,458 |
||||
| Operating loss |
(654,671) |
(677,376) |
(4,171,607) |
(2,332,785) |
|||
| Other income (expense) |
|||||||
| Interest income |
3,836 |
12,327 |
18,576 |
35,836 |
|||
| Interest expense |
- |
(12) |
- |
(12) |
|||
| Foreign currency exchange gain (loss) |
(506) |
445 |
(4,540) |
(3,432) |
|||
| 3,330 |
12,760 |
14,036 |
32,392 |
||||
| Loss before income taxes |
(651,341) |
(664,616) |
(4,157,571) |
(2,300,393) |
|||
| Income tax expense |
19,491 |
12,708 |
50,033 |
35,812 |
|||
| Net loss |
$(670,832) |
$(677,324) |
$(4,207,604) |
$(2,336,205) |
|||
| Basic and diluted net loss per common share |
$(0.03) |
$(0.03) |
$(0.20) |
$(0.11) |
|||
| Weighted average common shares outstanding: |
|||||||
| Basic and diluted |
21,258,736 |
20,798,997 |
21,035,874 |
20,768,632 |
|||
| UROPLASTY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) |
|||
| December 31, 2013 |
March 31, 2013 |
||
| Assets |
|||
| Current assets: |
|||
| Cash and cash equivalents |
$8,164,251 |
$3,533,864 |
|
| Short-term investments |
4,452,234 |
7,936,605 |
|
| Accounts receivable, net |
2,534,929 |
2,553,447 |
|
| Inventories |
469,094 |
718,933 |
|
| Other |
554,412 |
566,536 |
|
| Total current assets |
16,174,920 |
15,309,385 |
|
| Property, plant and equipment, net |
1,051,857 |
1,033,085 |
|
| Intangible assets, net |
119,455 |
100,502 |
|
| Long-term investments |
- |
3,451,711 |
|
| Deferred tax assets |
153,347 |
146,052 |
|
| Total assets |
$ 17,499,579 |
$20,040,735 |
|
| Liabilities and Shareholders' Equity |
|||
| Current liabilities: |
|||
| Accounts payable |
$645,170 |
$618,916 |
|
| Current portion – deferred rent |
12,351 |
35,000 |
|
| Income tax payable |
18,242 |
7,729 |
|
| Accrued liabilities: |
|||
| Compensation |
1,836,589 |
1,550,846 |
|
| Other |
354,719 |
476,287 |
|
| Total current liabilities |
2,867,071 |
2,688,778 |
|
| Deferred rent – less current portion |
- |
5,141 |
|
| Accrued pension liability |
666,818 |
660,580 |
|
| Total liabilities |
3,533,889 |
3,354,499 |
|
| Total shareholders' equity |
13,965,690 |
16,686,236 |
|
| Total liabilities and shareholders' equity |
$17,499,579 |
$20,040,735 |
|
| UROPLASTY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) |
|||
| Nine Months Ended |
|||
| December 31 |
|||
| 2013 |
2012 |
||
| Cash flows from operating activities: |
|||
| Net loss |
$(4,207,604) |
$(2,336,205) |
|
| Adjustments to reconcile net loss to net cash used in operating activities: |
|||
| Depreciation and amortization |
267,369 |
864,227 |
|
| (Gain) loss on disposal of equipment |
(5,000) |
3,035 |
|
| Amortization of premium on marketable securities |
7,562 |
39,551 |
|
| Share-based consulting expense |
- |
1,623 |
|
| Share-based compensation expense |
1,210,201 |
608,953 |
|
| Deferred income tax expense |
3,245 |
5,473 |
|
| Deferred rent |
(27,790) |
(27,638) |
|
| Changes in operating assets and liabilities: |
|||
| Accounts receivable, net |
79,428 |
228,768 |
|
| Inventories |
255,207 |
(138,862) |
|
| Other current assets |
16,868 |
(70,401) |
|
| Accounts payable |
21,724 |
(82,514) |
|
| Accrued compensation |
274,139 |
199,936 |
|
| Accrued liabilities, other |
(120,881) |
67,147 |
|
| Accrued pension liability, net |
(39,011) |
5,074 |
|
| Net cash used in operating activities |
(2,264,543) |
(631,833) |
|
| Cash flows from investing activities: |
|||
| Proceeds from maturity of available-for-sale investments |
2,750,000 |
3,200,000 |
|
| Proceeds from maturity of held-to-maturity investments |
4,180,000 |
5,000,000 |
|
| Purchases of available-for-sale investments |
- |
(4,921,036) |
|
| Purchases of held-to-maturity investments |
- |
(2,500,000) |
|
| Purchases of property, plant and equipment |
(221,769) |
(137,101) |
|
| Proceeds from sale of property, plant and equipment |
6,773 |
7,038 |
|
| Payments for intangible assets |
(41,300) |
(4,440) |
|
| Net cash provided by investing activities |
6,673,704 |
644,461 |
|
| Cash flows from financing activities: |
|||
| Proceeds from exercise of options |
172,485 |
150,000 |
|
| Net cash provided by financing activities |
172,485 |
150,000 |
|
| Effect of exchange rate changes on cash and cash equivalents |
48,741 |
(6,313) |
|
| Net increase in cash and cash equivalents |
4,630,387 |
156,315 |
|
| Cash and cash equivalents at beginning of period |
3,533,864 |
4,653,226 |
|
| Cash and cash equivalents at end of period |
$8,164,251 |
$4,809,541 |
|
Non-GAAP Financial Measures: The following table reconciles our operating loss calculated in accordance with accounting principles generally accepted in the U.S. (GAAP) to non-GAAP financial measures that exclude non-cash charges for share-based compensation, depreciation and amortization expenses from gross profit, operating expenses and operating loss. The non-GAAP financial measures used by management and disclosed by us are not a substitute for, nor superior to, financial measures and consolidated financial results calculated in accordance with GAAP, and you should carefully evaluate our reconciliations to non-GAAP. We may calculate our non-GAAP financial measures differently from similarly titled measures used by other companies. Therefore, our non-GAAP financial measures may not be comparable to those used by other companies. We have described the reconciliations of each of our non-GAAP financial measures described above to the most directly comparable GAAP financial measures.
We use these non-GAAP financial measures, and in particular non-GAAP operating loss, for internal managerial purposes because we believe such measures are important indicators of the strength and the operating performance of our business. Analysts and investors frequently ask us for this information. We believe that they use these measures to evaluate the overall operating performance of companies in our industry, including as a means of comparing period-to-period results and as a means of evaluating our results with those of other companies.
Our non-GAAP operating loss during the three months ended December 31, 2013 and 2012 was approximately $277,000 and $135,000, respectively. The increase in non-GAAP operating loss for the three months ended December 31, 2013 over the corresponding period a year ago is attributed to the increase in operating spending, offset slightly by the increase in net sales and gross profit percent. Our non-GAAP operating loss during the nine months ended December 31, 2013 and 2012 was approximately $2.7 million and $858,000, respectively. The increase in non-GAAP operating loss for the nine months ended December 31, 2013 over the corresponding period a year ago is attributed to the increase in operating spending (including $1.4 million of cash costs related to our review of internal control over financial reporting and executive management changes), offset slightly by the increase in net sales and gross profit percent.
| Expense Adjustments |
|||||
| Three-Months Ended |
GAAP |
Share-based |
Depreciation |
Amortization |
Non-GAAP |
| December 31, 2013 |
|||||
| Gross profit |
$5,620,000 |
$6,000 |
$8,000 |
$5,634,000 |
|
| % of net sales |
87.8% |
88.1% |
|||
| Operating expenses |
|||||
| General and administrative |
1,195,000 |
(197,000) |
(50,000) |
948,000 |
|
| Research and development |
526,000 |
(11,000) |
(1,000) |
514,000 |
|
| Selling and marketing |
4,546,000 |
(75,000) |
(22,000) |
4,449,000 |
|
| Amortization |
8,000 |
(8,000) |
- |
||
| 6,275,000 |
(283,000) |
(73,000) |
(8,000) |
5,911,000 |
|
| Operating loss |
$(655,000) |
$289,000 |
$81,000 |
$8,000 |
$(277,000) |
| December 31, 2012 |
|||||
| Gross profit |
$4,856,000 |
$8,000 |
$8,000 |
$4,872,000 |
|
| % of net sales |
86.9% |
87.2% |
|||
| Operating expenses |
|||||
| General and administrative |
1,059,000 |
(146,000) |
(50,000) |
863,000 |
|
| Research and development |
534,000 |
(14,000) |
(1,000) |
519,000 |
|
| Selling and marketing |
3,725,000 |
(87,000) |
(13,000) |
3,625,000 |
|
| Amortization |
216,000 |
$(216,000) |
- |
||
| 5,534,000 |
(247,000) |
(64,000) |
(216,000) |
5,007,000 |
|
| Operating loss |
$(678,000) |
$255,000 |
$72,000 |
$216,000 |
$(135,000) |
| Expense Adjustments |
|||||
| Nine-Months Ended |
GAAP |
Share-based |
Depreciation |
Amortization |
Non-GAAP |
| December 31, 2013 |
|||||
| Gross profit |
$15,948,000 |
$20,000 |
$26,000 |
$15,994,000 |
|
| % of net sales |
87.5% |
87.8% |
|||
| Operating expenses |
|||||
| General and administrative |
5,166,000 |
(952,000) |
(153,000) |
4,061,000 |
|
| Research and development |
1,435,000 |
(36,000) |
(3,000) |
1,396,000 |
|
| Selling and marketing |
13,497,000 |
(202,000) |
(63,000) |
13,232,000 |
|
| Amortization |
22,000 |
$(22,000) |
- |
||
| 20,120,000 |
(1,190,000) |
(219,000) |
(22,000) |
18,689,000 |
|
| Operating loss |
$(4,172,000) |
$1,210,000 |
$245,000 |
$22,000 |
$(2,695,000) |
| December 31, 2012 |
|||||
| Gross profit |
$14,613,000 |
$23,000 |
$26,000 |
$14,662,000 |
|
| % of net sales |
86.6% |
86.9% |
|||
| Operating expenses |
|||||
| General and administrative |
3,178,000 |
(340,000) |
(146,000) |
2,692,000 |
|
| Research and development |
1,696,000 |
(40,000) |
(2,000) |
1,654,000 |
|
| Selling and marketing |
11,425,000 |
(208,000) |
(43,000) |
11,174,000 |
|
| Amortization |
647,000 |
$(647,000) |
- |
||
| 16,946,000 |
(588,000) |
(191,000) |
(647,000) |
15,520,000 |
|
| Operating loss |
$(2,333,000) |
$611,000 |
$217,000 |
$647,000 |
$(858,000) |
SOURCE Uroplasty, Inc.
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