Apyx Medical Corporation Reports Fourth Quarter and Full Year 2023 Financial Results; Introduces Full Year 2024 Financial Outlook
Advanced Energy Sales increased 15% year-over-year and 23% quarter-over-quarter in the fourth quarter; increased 18% year-over-year in 2023
Fourth Quarter 2023 Financial Summary:
-
Total revenue of
$14.7 million , an increase of 16% year-over-year.-
Advanced Energy revenue of
$12.1 million , an increase of 15% year-over-year. -
OEM revenue of
$2.5 million , an increase of 22% year-over-year.
-
Advanced Energy revenue of
-
Net loss attributable to stockholders of
$9.6 million , an increase of$3.6 million , or 59%, year-over-year. -
Adjusted EBITDA loss of
$4.7 million , an increase of$0.6 million , or 14%, year-over-year.
Full Year 2023 Financial Summary:
-
Total revenue of
$52.3 million , an increase of 18% year-over-year.-
Advanced Energy revenue of
$43.4 million , an increase of 18% year-over-year. -
OEM revenue of
$9.0 million , an increase of 16% year-over-year.
-
Advanced Energy revenue of
-
Net loss attributable to stockholders of
$18.7 million , a decrease of$4.5 million , or 19%, year-over-year. -
Adjusted EBITDA loss of
$13.4 million , a decrease of$2.0 million , or 13%, year-over-year.
Fourth Quarter 2023 Operating Summary:
-
On
November 9, 2023 , the Company announced a new, five-year credit agreement withPerceptive Credit Holdings IV, LP (“Perceptive”), an affiliate ofPerceptive Advisors . The credit agreement provides for a facility of up to$45.0 million consisting of senior, secured term loans. The Perceptive credit facility matures onNovember 8, 2028 and includes an initial loan of$37.5 million and a delayed draw loan of$7.5 million . The initial loan of$37.5 million was fully funded onNovember 8, 2023 , with approximately$11.0 million of the proceeds used to satisfy all obligations under the Company’s MidCap credit agreement, as well as approximately$2.7 million of transaction fees and other expenses related to the transactions. -
On
November 28, 2023 , the Company announced that it had appointedMatthew Hill as its Chief Financial Officer, effectiveDecember 4, 2023 .
Management Comments:
“We generated double-digit growth in sales of our Advanced Energy products in the fourth quarter, driven by growth in global generator and handpiece sales of more than 25% and 10% year-over-year, respectively,” said
The following tables present revenue by reportable segment and geography:
|
Three Months Ended
|
|
Increase/Decrease |
|
Year Ended
|
|
Increase/Decrease |
||||||||||
(In thousands) |
2023 |
|
2022 |
|
$ Change |
|
% Change |
|
2023 |
|
2022 |
|
$ Change |
|
% Change |
||
Advanced Energy |
|
|
|
|
|
|
15.1 |
% |
|
|
|
|
|
|
|
17.9 |
% |
OEM |
2,528 |
|
2,066 |
|
462 |
|
22.4 |
% |
|
8,967 |
|
7,707 |
|
1,260 |
|
16.3 |
% |
Total |
|
|
|
|
|
|
16.3 |
% |
|
|
|
|
|
|
|
17.6 |
% |
|
Three Months Ended
|
Increase/Decrease |
Year Ended
|
Increase/Decrease |
|||||||||||||
(In thousands) |
2023 |
2022 |
$ Change |
% Change |
2023 |
2022 |
$ Change |
% Change |
|||||||||
Domestic |
|
|
|
22.6 |
% |
|
|
|
22.9 |
% |
|||||||
International |
3,977 |
3,895 |
82 |
2.1 |
% |
14,004 |
13,302 |
702 |
5.3 |
% |
|||||||
Total |
|
|
|
16.3 |
% |
|
|
|
17.6 |
% |
|||||||
Fourth Quarter 2023 Results:
Total revenue for the three months ended
Gross profit for the three months ended
Operating expenses for the three months ended
Other (expense) income, net for the three months ended
Income tax expense for the three months ended
Net loss attributable to stockholders for the three months ended
Adjusted EBITDA loss for the three months ended
Full Year 2023 Results:
Total revenue for the year ended
Net loss attributable to stockholders for the year ended
Full Year 2024 Financial Outlook:
The Company is introducing its financial guidance for the year ending
-
Total revenue in the range of
$49.7 million to$52.9 million , representing a decrease of approximately 5% to growth of approximately 1% year-over-year, compared to total revenue of$52.3 million for the year endedDecember 31, 2023 .-
Total revenue guidance assumes:
-
Advanced Energy revenue in the range of
$41.6 million to$44.6 million , representing a decrease of approximately 4% to growth of approximately 3% year-over-year, compared to Advanced Energy revenue of$43.4 million for the year endedDecember 31, 2023 . -
OEM revenue in the range of
$8.1 million to$8.3 million , representing a decrease of 10% to 7% year-over-year, compared to$9.0 million for the year endedDecember 31, 2023 .
-
Advanced Energy revenue in the range of
-
Total revenue guidance assumes:
-
Net loss attributable to stockholders of approximately
$26.5 million to$24.3 million , compared to$18.7 million for the year endedDecember 31, 2023 .
Conference Call Details:
Management will host a conference call at
https://event.choruscall.com/mediaframe/webcast.html?webcastid=KtFzwD3M
A telephonic replay will be available approximately three hours after the end of the call through the following two weeks. The replay can be accessed by dialing 877-660-6853 for
About
Cautionary Statement on Forward-Looking Statements:
Certain matters discussed in this release and oral statements made from time to time by representatives of the Company may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the Federal securities laws. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved.
All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including but not limited to, projections of net revenue, margins, expenses, net earnings, net earnings per share, or other financial items; projections or assumptions concerning the possible receipt by the Company of any regulatory approvals from any government agency or instrumentality including but not limited to the
Forward-looking statements and information are subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected. Many of these factors are beyond the Company’s ability to control or predict. Important factors that may cause the Company’s actual results to differ materially and that could impact the Company and the statements contained in this release include but are not limited to risks, uncertainties and assumptions relating to the regulatory environment in which the Company is subject to, including the Company’s ability to gain requisite approvals for its products from the FDA and other governmental and regulatory bodies, both domestically and internationally; the impact of the
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) |
|||||||||||||||
|
Three Months Ended
|
|
Year Ended
|
||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Sales |
$ |
14,662 |
|
|
$ |
12,611 |
|
|
$ |
52,349 |
|
|
$ |
44,510 |
|
Cost of sales |
|
5,733 |
|
|
|
4,370 |
|
|
|
18,590 |
|
|
|
15,379 |
|
Gross profit |
|
8,929 |
|
|
|
8,241 |
|
|
|
33,759 |
|
|
|
29,131 |
|
Other costs and expenses: |
|
|
|
|
|
|
|
||||||||
Research and development |
|
1,248 |
|
|
|
1,255 |
|
|
|
4,844 |
|
|
|
4,544 |
|
Professional services |
|
1,866 |
|
|
|
2,433 |
|
|
|
7,031 |
|
|
|
9,044 |
|
Salaries and related costs |
|
4,867 |
|
|
|
4,677 |
|
|
|
19,637 |
|
|
|
18,621 |
|
Selling, general and administrative |
|
6,724 |
|
|
|
5,809 |
|
|
|
22,198 |
|
|
|
20,484 |
|
Total other costs and expenses |
|
14,705 |
|
|
|
14,174 |
|
|
|
53,710 |
|
|
|
52,693 |
|
Gain on sale-leaseback |
|
— |
|
|
|
— |
|
|
|
2,692 |
|
|
|
— |
|
Loss from operations |
|
(5,776 |
) |
|
|
(5,933 |
) |
|
|
(17,259 |
) |
|
|
(23,562 |
) |
Interest income |
|
443 |
|
|
|
64 |
|
|
|
921 |
|
|
|
157 |
|
Interest expense |
|
(1,116 |
) |
|
|
(3 |
) |
|
|
(2,478 |
) |
|
|
(15 |
) |
Other (expense) income, net |
|
— |
|
|
|
(42 |
) |
|
|
622 |
|
|
|
509 |
|
Loss on extinguishment of debt |
|
(3,088 |
) |
|
|
— |
|
|
|
(3,088 |
) |
|
|
— |
|
Total other (expense) income, net |
|
(3,761 |
) |
|
|
19 |
|
|
|
(4,023 |
) |
|
|
651 |
|
Loss before income taxes |
|
(9,537 |
) |
|
|
(5,914 |
) |
|
|
(21,282 |
) |
|
|
(22,911 |
) |
Income tax expense (benefit) |
|
87 |
|
|
|
151 |
|
|
|
(2,432 |
) |
|
|
367 |
|
Net loss |
|
(9,624 |
) |
|
|
(6,065 |
) |
|
|
(18,850 |
) |
|
|
(23,278 |
) |
Net loss attributable to non-controlling interest |
|
(17 |
) |
|
|
(16 |
) |
|
|
(137 |
) |
|
|
(94 |
) |
Net loss attributable to stockholders |
$ |
(9,607 |
) |
|
$ |
(6,049 |
) |
|
$ |
(18,713 |
) |
|
$ |
(23,184 |
) |
|
|
|
|
|
|
|
|
||||||||
Loss per share: |
|
|
|
|
|
|
|
||||||||
Basic and Diluted |
$ |
(0.28 |
) |
|
$ |
(0.17 |
) |
|
$ |
(0.54 |
) |
|
$ |
(0.67 |
) |
|
|
|
|
|
|
|
|
||||||||
Weighted average number of shares outstanding - basic and diluted |
|
34,644 |
|
|
|
34,597 |
|
|
|
34,622 |
|
|
|
34,516 |
|
CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share and per share data) |
|||||||
|
|
|
|||||
ASSETS |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
43,652 |
|
|
$ |
10,192 |
|
Trade accounts receivable, net of allowance of |
|
14,023 |
|
|
|
10,602 |
|
Income tax receivables |
|
— |
|
|
|
7,545 |
|
Other receivables |
|
30 |
|
|
|
99 |
|
Inventories, net of provision for obsolescence of |
|
9,923 |
|
|
|
11,797 |
|
Prepaid expenses and other current assets |
|
2,734 |
|
|
|
2,737 |
|
Total current assets |
|
70,362 |
|
|
|
42,972 |
|
Property and equipment, net |
|
1,915 |
|
|
|
6,761 |
|
Operating lease right-of-use assets |
|
5,162 |
|
|
|
710 |
|
Finance lease right-of-use assets |
|
69 |
|
|
|
115 |
|
Other assets |
|
1,732 |
|
|
|
1,217 |
|
Total assets |
$ |
79,240 |
|
|
$ |
51,775 |
|
|
|
|
|
||||
LIABILITIES AND EQUITY |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
2,712 |
|
|
$ |
2,669 |
|
Accrued expenses and other current liabilities |
|
9,661 |
|
|
|
8,928 |
|
Current portion of operating lease liabilities |
|
347 |
|
|
|
216 |
|
Current portion of finance lease liabilities |
|
20 |
|
|
|
37 |
|
Total current liabilities |
|
12,740 |
|
|
|
11,850 |
|
Long-term debt, net of debt discounts and issuance costs |
|
33,185 |
|
|
|
— |
|
Long-term operating lease liabilities |
|
4,896 |
|
|
|
470 |
|
Long-term finance lease liabilities |
|
53 |
|
|
|
73 |
|
Long-term contract liabilities |
|
1,246 |
|
|
|
1,408 |
|
Other liabilities |
|
198 |
|
|
|
181 |
|
Total liabilities |
|
52,318 |
|
|
|
13,982 |
|
EQUITY |
|
|
|
||||
Preferred Stock, |
|
— |
|
|
|
— |
|
Common stock, |
|
35 |
|
|
|
35 |
|
Additional paid-in capital |
|
81,114 |
|
|
|
73,282 |
|
Accumulated deficit |
|
(54,448 |
) |
|
|
(35,735 |
) |
Total stockholders' equity |
|
26,701 |
|
|
|
37,582 |
|
Non-controlling interest |
|
221 |
|
|
|
211 |
|
Total equity |
|
26,922 |
|
|
|
37,793 |
|
Total liabilities and equity |
$ |
79,240 |
|
|
$ |
51,775 |
|
RECONCILIATION OF GAAP NET LOSS RESULTS TO NON-GAAP ADJUSTED EBITDA
(Unaudited)
Use of Non-GAAP Financial Measure
We present the following non-GAAP measure because we believe such measure is a useful indicator of our operating performance. Our management uses this non-GAAP measure principally as a measure of our operating performance and believes that this measure is useful to investors because it is frequently used by analysts, investors and other interested parties to evaluate companies in our industry. We also believe that this measure is useful to our management and investors as a measure of comparative operating performance from period to period. The non-GAAP financial measure presented in this release should not be considered as a substitute for, or preferable to, the measures of financial performance prepared in accordance with GAAP.
The Company has presented the following non-GAAP financial measure in this press release: adjusted EBITDA. The Company defines adjusted EBITDA as its reported net income (loss) attributable to stockholders (GAAP) plus income tax expense (benefit), interest, depreciation and amortization, stock-based compensation expense and other significant non-recurring items.
(In thousands) |
Three Months Ended
|
|
Year Ended
|
||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Net loss attributable to stockholders |
$ |
(9,607 |
) |
|
$ |
(6,049 |
) |
|
$ |
(18,713 |
) |
|
$ |
(23,184 |
) |
Interest income |
|
(443 |
) |
|
|
(64 |
) |
|
|
(921 |
) |
|
|
(157 |
) |
Interest expense |
|
1,116 |
|
|
|
3 |
|
|
|
2,478 |
|
|
|
15 |
|
Income tax expense (benefit) |
|
87 |
|
|
|
151 |
|
|
|
(2,432 |
) |
|
|
367 |
|
Depreciation and amortization |
|
152 |
|
|
|
202 |
|
|
|
692 |
|
|
|
890 |
|
Stock based compensation |
|
914 |
|
|
|
1,641 |
|
|
|
5,114 |
|
|
|
6,697 |
|
Gain on sale-leaseback |
|
— |
|
|
|
— |
|
|
|
(2,692 |
) |
|
|
— |
|
Loss on extinguishment of debt |
|
3,088 |
|
|
|
— |
|
|
|
3,088 |
|
|
|
— |
|
Adjusted EBITDA |
$ |
(4,693 |
) |
|
$ |
(4,116 |
) |
|
$ |
(13,386 |
) |
|
$ |
(15,372 |
) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240321338979/en/
Investor Relations Contact:
ICR Westwicke on behalf of
investor.relations@apyxmedical.com
Source: