Sensus Healthcare(US:SRTS)2021-05-09 05:55Financial Data and Key Metrics Changes - The company's Q1 2021 revenues were $3.1 million, an increase of 83% compared to $1.7 million in Q1 2020, reflecting a recovery from the pandemic's impact [5][20] - Gross profit for Q1 2021 was $1.6 million, representing 51.7% of revenue, up from $0.7 million or 42.2% in the prior year [21] - The net loss for Q1 2021 was $1.1 million or $0.07 per share, compared to a net loss of $3.6 million or $0.22 per share in Q1 2020 [22] Business Line Data and Key Metrics Changes - The company shipped 7 SRT systems in Q1 2021, including 6 domestic sales and 1 to China, indicating a positive trend in sales [5][20] - The reimbursement environment improved significantly, with increases of up to 50% over previous years for SRT users due to new coding [7][8] Market Data and Key Metrics Changes - The company has only penetrated about 2% of the U.S. market, indicating substantial growth potential [8] - Business in China is promising, with additional sales expected following the engagement of a new distribution partner [16] Company Strategy and Development Direction - The company is focusing on educating the market about new reimbursement codes and plans to continue this effort throughout 2021 [7][38] - There is an emphasis on expanding the Mobile Aesthetic Laser business beyond Florida, targeting markets like Dallas, Atlanta, and Scottsdale [42] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about continued revenue growth as economic activity improves post-COVID [5][26] - The company is preparing for a significant marketing push for aesthetic lasers, particularly at upcoming industry symposiums [36][27] Other Important Information - The company has developed a fair market value lease program to make higher-priced products more accessible to customers [9] - The Sculptura system received a U.S. patent, which could open new opportunities for radiation therapy applications [17][18] Q&A Session Summary Question: Do you expect any seasonality in terms of sales SRT systems? - Management indicated uncertainty due to economic conditions in China but hopes for additional orders before the license renewal in November [30] Question: What is the current operating capacity of dermatologist offices in the U.S.? - Management estimated that offices are operating at about 80% to 90% of pre-COVID levels, with stronger recovery in states like Florida and Texas [34] Question: Will sales of aesthetic lasers significantly contribute to revenue this year? - Management expects aesthetic lasers to contribute to sales but not significantly, with a marketing push planned for the second quarter [36] Question: What steps have been taken to educate the market about reimbursement changes? - Management conducted Zoom meetings with over 100 physicians to discuss new reimbursement codes and plans to continue these efforts [38][39] Question: What is the status of the sales force and expansion plans? - The sales force is nearly back to pre-COVID levels, with aggressive hiring planned to support growth in the second half of the year [41] Question: What territories are being targeted for the Mobile Aesthetic business expansion? - Management identified Dallas, Atlanta, and Scottsdale as key markets for expansion [42] Question: Any updates on the Sculptura system sales discussions? - Management remains optimistic about future sales, despite the pandemic's impact on hospital operations [47][49]