Sensus Healthcare(US:SRTS)2022-02-11 03:14Financial Data and Key Metrics Changes - Revenues for 2021 were $27 million, up 182% from $9.6 million in 2020, with Q4 2021 revenues reaching a record $13 million compared to $5.1 million in Q4 2020 [5][21][24] - Net income for 2021 was $4.1 million or $0.25 per diluted share, compared to a net loss of $6.8 million or a loss of $0.42 per share in 2020 [26] - Gross profit for Q4 2021 was $8.9 million or 68% of revenue, compared to $3.2 million or 63.4% of revenue in Q4 2020 [22][24] Business Line Data and Key Metrics Changes - In Q4 2021, the company shipped a record 35 units, including three to China, contributing to the overall revenue growth [5][21] - The introduction of the fair market value leasing program has encouraged physician customers to adopt the SRT Vision system, which provides a positive ROI by treating just two patients per month [10][58] - The Transdermal Infusion System, a new product, is being marketed for various applications, including skin rejuvenation and pre-plastic surgery treatments [11][12] Market Data and Key Metrics Changes - Sales in China showed promise, with three systems sold in Q4 2021 and a total of nine for the year, supported by a renewed license from the Ministry of Health [14][70] - The company is also exploring opportunities in Taiwan, anticipating orders from that market as well [70] Company Strategy and Development Direction - The company plans to leverage its sales organization to introduce new products, including the Transdermal Infusion System, which is expected to generate recurring revenue [11][18] - The focus on expanding the aesthetic laser business through Sensus Laser Aesthetic Solutions aims to improve access to laser technology and enhance customer relationships [16][18] - The management is optimistic about maintaining profitability and revenue growth in 2022, supported by a robust backlog of orders and a focus on expense management [19][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued year-over-year revenue growth and positive net income, attributing this to increased CMS reimbursement for superficial radiation therapy [6][19] - The impact of COVID-19 on the business is seen as largely behind, with growing patient volumes at customer sites contributing to the positive outlook [21][22] - The management highlighted the importance of face-to-face interactions and trade shows in driving sales momentum moving forward [39] Other Important Information - The company has a strong market presence with approximately 14,000 dermatologists and 1,000 Mohs surgeons in the U.S. [29] - The retirement of co-founder Steve Cohen was noted, with two regional managers promoted to vice presidents to ensure continuity in leadership [30] Q&A Session Summary Question: Growth expectations for 2022 and backlog comparison - Management is hopeful for continued momentum in 2022, with a strong backlog of orders expected to drive growth [35] Question: Acceleration in demand for SRT systems - Demand is attributed to both increased CMS reimbursement and a shift in treatment practices due to COVID-19 [36][38] Question: Commercialization plan for the Transdermal Infusion System - The primary model will be capital sales, with potential for recurring revenue through consumables [40][41] Question: Frequency of orders from the Chinese market - Orders may be volatile due to the ongoing pandemic, but management expects to surpass previous sales figures in 2022 [69][70] Question: Supply chain issues and mitigation strategies - The company has proactively engaged with suppliers to ensure availability of components, with 95% of components sourced domestically [59][60] Question: Efforts to secure CMS reimbursement boost - Management utilized existing contacts in government to advocate for reimbursement increases, with expectations for further improvements [73][78] Question: Breakdown of sales between Vision and SRT-100 systems - Approximately 80% of sales in Q4 were for the Vision product, driven by favorable reimbursement and leasing options [81][82]