Sensus Healthcare(US:SRTS)2022-05-08 13:23Financial Data and Key Metrics Changes - Revenues for Q1 2022 were $10.3 million, more than three times the $3.1 million reported in Q1 2021 [6][28] - Net income for Q1 2022 was $16.1 million or $0.97 per diluted share, compared to a net loss of $1.1 million or $0.07 per share in Q1 2021 [31] - Gross profit for Q1 2022 was $7.1 million, representing 69.1% of revenues, up from $1.6 million or 51.6% of revenues in Q1 2021 [29] Business Line Data and Key Metrics Changes - A total of 33 units were shipped in Q1 2022, including 26 SRT systems and 7 TransDermal Infusion Systems [9][28] - Approximately 50% of customers purchased extended warranty service agreements, up from 25% a few years ago [14] Market Data and Key Metrics Changes - One SRT unit was delivered to China, and regulatory approval was received to treat non-melanoma skin cancer and keloids with SRT in Taiwan [23] - The company hired nine sales representatives and two service engineers, returning the sales organization to pre-pandemic levels [24] Company Strategy and Development Direction - The company is focusing on expanding its product portfolio and has initiated a $3 million share repurchase program [15][34] - An exclusive US distribution agreement for a non-invasive drug delivery system, branded as Transdermal Infusion Systems, was established [17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued profitability for the year, citing a robust backlog of orders and effective expense management [27] - The company is aware of potential threats such as inflation and geopolitical turmoil but remains confident in its sales and earnings trajectory [26] Other Important Information - The company emphasized the importance of in-person meetings for solidifying customer relationships and generating sales leads [22] - The management highlighted the positive impact of improved CMS reimbursement codes on patient access to care [9] Q&A Session Summary Question: What contributed to the acceleration in demand for SRT? - Management indicated that the increase was due to a combination of better reimbursement, fair market value leasing, and best practice conversion [41][42][43] Question: How aware are sales reps of the reimbursement changes? - Management stated that all salespeople are thoroughly trained on reimbursement changes and are actively educating doctors [44][45] Question: What additional products are being considered for expansion? - Management mentioned that targets for new products will be those that can be easily integrated into existing sales discussions with dermatology practices [46][47] Question: Can the growth from the Transdermal System be quantified? - Management noted that seven units shipped in Q1 represented about 20-22% of overall shipments, indicating strategic placement with key opinion leaders [48][49] Question: What is the business model for the Transdermal System? - Management confirmed that the selling price is expected to be around $32,000 to $35,000, with consumables available for patient-specific use [53][54] Question: How was the traffic and interest at recent conferences? - Management reported high interest and positive feedback from attendees at the AAD and ASLMS conferences, with many customers looking to purchase additional units [55][56] Question: When were the new hires made? - Most of the hiring occurred after Q1, with a focus on expanding the sales force throughout the year [59]