Apyx Medical Corporation Reports Second Quarter 2024 Financial Results; Updates Full Year 2024 Financial Outlook
Second Quarter 2024 Financial Summary:
-
Total revenue of
$12.1 million , a decrease of 10% year-over-year.-
Advanced Energy revenue of
$9.8 million , a decrease of 17% year-over-year. -
OEM revenue of
$2.4 million , an increase of 29% year-over-year.
-
Advanced Energy revenue of
-
Net loss attributable to stockholders of
$6.6 million , an increase of$5.6 million , or 560%, year-over-year.-
Net loss for the second quarter of 2023 included a
$2.7 million gain on the sale-leaseback the Company’sClearwater, FL facility.
-
Net loss for the second quarter of 2023 included a
-
Adjusted EBITDA loss of
$4.3 million , an increase of$2.7 million , or 166%, year-over-year.
Second Quarter 2024 Operating Summary:
-
On
April 11, 2024 , the Company announced that new data and treatment insights were showcased at the Company’s Renuvion Users’ Summit. -
On
May 9, 2024 , the Company announced the retirement ofAndrew Makrides as Chairman of the Board, after serving the Company in this position since 1982. The Board of Directors appointedStavros Vizirgianakis to serve as Chairman of the Board, effectiveMay 7, 2024 . -
On
June 26, 2024 , the Company announced the launch of the “Renewing Lives” campaign, a nationwide, life-changing give-back program that will provide Renuvion treatments to people who can most benefit from this advanced medical technology to improve their physical appearance and mental health.
“As we had anticipated, our Advanced Energy sales performance in the second quarter continued to reflect the challenging environment in the cosmetic surgery market that our industry has observed in recent quarters,” said
“During our recent strategic review with the Board and management, we identified a number of initiatives to improve stockholder value and create a longer runway for the company to execute our plan to drive profitable growth going forward,” said
The following tables present revenue by reportable segment and geography:
|
Three Months Ended
|
|
Increase/Decrease |
|
Six Months Ended
|
|
Increase/Decrease |
||||||||||||||||||
(In thousands) |
2024 |
|
2023 |
|
$ Change |
|
% Change |
|
2024 |
|
2023 |
|
$ Change |
|
% Change |
||||||||||
Advanced Energy |
$ |
9,766 |
|
$ |
11,722 |
|
$ |
(1,956 |
) |
|
(16.7 |
)% |
|
$ |
17,219 |
|
$ |
21,412 |
|
$ |
(4,193 |
) |
|
(19.6 |
)% |
OEM |
|
2,383 |
|
|
1,847 |
|
|
536 |
|
|
29.0 |
% |
|
|
5,174 |
|
|
4,299 |
|
|
875 |
|
|
20.4 |
% |
Total |
$ |
12,149 |
|
$ |
13,569 |
|
$ |
(1,420 |
) |
|
(10.5 |
)% |
|
$ |
22,393 |
|
$ |
25,711 |
|
$ |
(3,318 |
) |
|
(12.9 |
)% |
|
Three Months Ended
|
|
Increase/Decrease |
|
Six Months Ended
|
|
Increase/Decrease |
||||||||||||||||||
(In thousands) |
2024 |
|
2023 |
|
$ Change |
|
% Change |
|
2024 |
|
2023 |
|
$ Change |
|
% Change |
||||||||||
Domestic |
$ |
8,687 |
|
$ |
10,137 |
|
$ |
(1,450 |
) |
|
(14.3 |
)% |
|
$ |
15,666 |
|
$ |
19,008 |
|
$ |
(3,342 |
) |
|
(17.6 |
)% |
International |
|
3,462 |
|
|
3,432 |
|
|
30 |
|
|
0.9 |
% |
|
|
6,727 |
|
|
6,703 |
|
|
24 |
|
|
0.4 |
% |
Total |
$ |
12,149 |
|
$ |
13,569 |
|
$ |
(1,420 |
) |
|
(10.5 |
)% |
|
$ |
22,393 |
|
$ |
25,711 |
|
$ |
(3,318 |
) |
|
(12.9 |
)% |
Second Quarter 2024 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 was
Net loss attributable to stockholders for the three months ended
Adjusted EBITDA loss for the three months ended
First Six Months of 2024 Results:
Total revenue for the six months ended
Net loss attributable to stockholders for the six months ended
Full Year 2024 Financial Outlook:
The Company is updating its financial guidance for the year ending
-
Total revenue in the range of
$50.6 million to$52.1 million , representing a decrease of approximately 3% to 0% year-over-year, compared to total revenue of$52.3 million for the year endedDecember 31, 2023 . The Company’s prior guidance range for total revenue was$49.7 million to$52.9 million , representing a decrease of approximately 5% to growth of approximately 1% year-over-year.-
Total revenue guidance assumes:
-
Advanced Energy revenue in the range of
$41.6 million to$43.1 million , representing a decrease of approximately 4% to 1% year-over-year, compared to Advanced Energy revenue of$43.4 million for the year endedDecember 31, 2023 . The Company’s prior guidance range for Advanced Energy revenue was$41.6 million to$44.6 million , representing a decrease of approximately 4% to growth of approximately 3% year-over-year. -
OEM revenue of approximately
$9.0 million , representing growth of approximately 1% year-over-year, compared to OEM revenue of$9.0 million for the year endedDecember 31, 2023 . The Company’s prior guidance range for OEM revenue was$8.1 million to$8.3 million , representing a decrease of 10% to 7% year-over-year.
-
Advanced Energy revenue in the range of
-
Total revenue guidance assumes:
-
Net loss attributable to stockholders of approximately
$24.5 million to$23.5 million , compared to$18.7 million for the year endedDecember 31, 2023 . The Company’s prior guidance range for net loss attributable to stockholders was$26.5 million to$24.3 million .
Conference Call Details:
Management will host a conference call at
https://event.choruscall.com/mediaframe/webcast.html?webcastid=hyyhSyUU
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 (Unaudited) (In thousands, except per share data) |
|||||||||||||||
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Sales |
$ |
12,149 |
|
|
$ |
13,569 |
|
|
$ |
22,393 |
|
|
$ |
25,711 |
|
Cost of sales |
|
4,656 |
|
|
|
4,290 |
|
|
|
8,951 |
|
|
|
8,859 |
|
Gross profit |
|
7,493 |
|
|
|
9,279 |
|
|
|
13,442 |
|
|
|
16,852 |
|
Other costs and expenses: |
|
|
|
|
|
|
|
||||||||
Research and development |
|
1,424 |
|
|
|
1,357 |
|
|
|
2,821 |
|
|
|
2,628 |
|
Professional services |
|
2,096 |
|
|
|
1,594 |
|
|
|
3,670 |
|
|
|
3,334 |
|
Salaries and related costs |
|
4,682 |
|
|
|
4,877 |
|
|
|
9,378 |
|
|
|
9,795 |
|
Selling, general and administrative |
|
4,838 |
|
|
|
5,378 |
|
|
|
9,735 |
|
|
|
10,633 |
|
Total other costs and expenses |
|
13,040 |
|
|
|
13,206 |
|
|
|
25,604 |
|
|
|
26,390 |
|
Gain on sale-leaseback |
|
— |
|
|
|
2,692 |
|
|
|
— |
|
|
|
2,692 |
|
Loss from operations |
|
(5,547 |
) |
|
|
(1,235 |
) |
|
|
(12,162 |
) |
|
|
(6,846 |
) |
Interest income |
|
439 |
|
|
|
179 |
|
|
|
934 |
|
|
|
230 |
|
Interest expense |
|
(1,427 |
) |
|
|
(543 |
) |
|
|
(2,823 |
) |
|
|
(777 |
) |
Other (expense) income, net |
|
(1 |
) |
|
|
646 |
|
|
|
(22 |
) |
|
|
641 |
|
Total other (expense) income, net |
|
(989 |
) |
|
|
282 |
|
|
|
(1,911 |
) |
|
|
94 |
|
Loss before income taxes |
|
(6,536 |
) |
|
|
(953 |
) |
|
|
(14,073 |
) |
|
|
(6,752 |
) |
Income tax expense (benefit) |
|
50 |
|
|
|
66 |
|
|
|
103 |
|
|
|
(2,201 |
) |
Net loss |
|
(6,586 |
) |
|
|
(1,019 |
) |
|
|
(14,176 |
) |
|
|
(4,551 |
) |
Net loss attributable to non-controlling interest |
|
(30 |
) |
|
|
(25 |
) |
|
|
(44 |
) |
|
|
(74 |
) |
Net loss attributable to stockholders |
$ |
(6,556 |
) |
|
$ |
(994 |
) |
|
$ |
(14,132 |
) |
|
$ |
(4,477 |
) |
|
|
|
|
|
|
|
|
||||||||
Loss per share: |
|
|
|
|
|
|
|
||||||||
Basic and diluted |
$ |
(0.19 |
) |
|
$ |
(0.03 |
) |
|
$ |
(0.41 |
) |
|
$ |
(0.13 |
) |
|
|
|
|
|
|
|
|
||||||||
Weighted average number of shares outstanding - basic and diluted |
|
34,644 |
|
|
|
34,603 |
|
|
|
34,644 |
|
|
|
34,600 |
|
CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share and per share data) |
|||||||
|
2024 (Unaudited) |
|
|
||||
ASSETS |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
32,678 |
|
|
$ |
43,652 |
|
Trade accounts receivable, net of allowance of |
|
12,709 |
|
|
|
14,023 |
|
Inventories, net of provision for obsolescence of |
|
9,324 |
|
|
|
9,923 |
|
Prepaid expenses and other current assets |
|
1,960 |
|
|
|
2,764 |
|
Total current assets |
|
56,671 |
|
|
|
70,362 |
|
Property and equipment, net of accumulated depreciation and amortization of |
|
1,918 |
|
|
|
1,915 |
|
Operating lease right-of-use assets |
|
4,935 |
|
|
|
5,162 |
|
Finance lease right-of-use assets |
|
59 |
|
|
|
69 |
|
Other assets |
|
1,811 |
|
|
|
1,732 |
|
Total assets |
$ |
65,394 |
|
|
$ |
79,240 |
|
|
|
|
|
||||
LIABILITIES AND EQUITY |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
2,348 |
|
|
$ |
2,712 |
|
Accrued expenses and other current liabilities |
|
7,958 |
|
|
|
9,661 |
|
Current portion of operating lease liabilities |
|
313 |
|
|
|
347 |
|
Current portion of finance lease liabilities |
|
20 |
|
|
|
20 |
|
Total current liabilities |
|
10,639 |
|
|
|
12,740 |
|
Long-term debt, net of debt discounts and issuance costs |
|
33,628 |
|
|
|
33,185 |
|
Long-term operating lease liabilities |
|
4,697 |
|
|
|
4,896 |
|
Long-term finance lease liabilities |
|
43 |
|
|
|
53 |
|
Long-term contract liabilities |
|
1,271 |
|
|
|
1,246 |
|
Other liabilities |
|
192 |
|
|
|
198 |
|
Total liabilities |
|
50,470 |
|
|
|
52,318 |
|
EQUITY |
|
|
|
||||
Preferred Stock, |
|
— |
|
|
|
— |
|
Common stock, |
|
35 |
|
|
|
35 |
|
Additional paid-in capital |
|
83,292 |
|
|
|
81,114 |
|
Accumulated deficit |
|
(68,580 |
) |
|
|
(54,448 |
) |
Total stockholders' equity |
|
14,747 |
|
|
|
26,701 |
|
Non-controlling interest |
|
177 |
|
|
|
221 |
|
Total equity |
|
14,924 |
|
|
|
26,922 |
|
Total liabilities and equity |
$ |
65,394 |
|
|
$ |
79,240 |
|
RECONCILIATION OF GAAP NET LOSS 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
|
|
Six Months Ended
|
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Net loss attributable to stockholders |
$ |
(6,556 |
) |
|
$ |
(994 |
) |
|
$ |
(14,132 |
) |
|
$ |
(4,477 |
) |
Interest income |
|
(439 |
) |
|
|
(179 |
) |
|
|
(934 |
) |
|
|
(230 |
) |
Interest expense |
|
1,427 |
|
|
|
543 |
|
|
|
2,823 |
|
|
|
777 |
|
Income tax expense (benefit) |
|
50 |
|
|
|
66 |
|
|
|
103 |
|
|
|
(2,201 |
) |
Depreciation and amortization |
|
156 |
|
|
|
151 |
|
|
|
313 |
|
|
|
354 |
|
Stock based compensation |
|
1,050 |
|
|
|
1,482 |
|
|
|
2,178 |
|
|
|
2,849 |
|
Gain on sale-leaseback |
|
— |
|
|
|
(2,692 |
) |
|
|
— |
|
|
|
(2,692 |
) |
Adjusted EBITDA |
$ |
(4,312 |
) |
|
$ |
(1,623 |
) |
|
$ |
(9,649 |
) |
|
$ |
(5,620 |
) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240808543069/en/
Investor Relations Contact:
ICR Westwicke on behalf of
investor.relations@apyxmedical.com
Source: