MINNEAPOLIS, July 24, 2014 /PRNewswire/ -- Uroplasty, Inc. (NASDAQ: UPI), a medical device company that develops, manufactures and markets innovative proprietary products to treat voiding dysfunctions, today reported financial results for the fiscal 2015 first quarter ended June 30, 2014.
Global revenue for the Company's Urgent® PC Neuromodulation System grew 19% to $4.1 million, as compared to $3.4 million in the first quarter of the prior year. Total revenue for the fiscal first quarter of 2015 was $6.4 million, up 9% from the same quarter in the prior year.
"First quarter results met our overall expectations, and we are reaffirming our full-year guidance today for Fiscal 2015," said Rob Kill, President and Chief Executive Officer of Uroplasty. "Global Urgent PC revenue exceeded our expectations, with stronger than expected growth in our international business. Macroplastique revenue was down slightly in the quarter, yet we continue to expect that for the full year, revenue from this product line will be similar to the past fiscal year. Continued improvement in sales force productivity, the expansion of our clinical support team to twelve individuals from the current six and our development of additional distribution channels are expected to drive Urgent PC sales growth as we look forward. At the same time, we continue to invest in our fecal incontinence clinical development program and are examining strategies to provide our sales organization with additional products that meet the unmet needs of our customer base," continued Mr. Kill.
The Company generated a gross margin of 87.6% in the recent fiscal first quarter compared with 87.2% in the same quarter a year ago. Operating expenses for the period totaled $7.8 million compared to $6.7 million in the same quarter last year. Selling, general and administrative costs increased $0.7 million primarily due to full staffing of the sales team in the current quarter as well as the expense related to the six clinical specialists the Company added throughout the prior fiscal year. R&D costs increased $0.4 million due to higher clinical study activity as well as certain one-time costs related to management changes in the current quarter.
The operating loss of $2.2 million in the fiscal first quarter compares with a $1.6 million operating loss in the same quarter last year. Excluding non-cash charges for share-based compensation and depreciation and amortization expense, the non-GAAP operating loss was $1.8 million in the first quarter of fiscal 2015, compared with a $1.5 million non-GAAP operating loss in the year ago period. At June 30, 2014, cash, cash equivalents and cash investments totaled $10.6 million.
For the full-year Fiscal 2015 the Company continues to expect revenue growth in the range of nine to twelve percent, approximately fifteen percent growth in global Urgent PC sales, and slightly higher gross margins on a year-over-year basis.
Uroplasty will host a conference call and webcast today at 4:30 p.m. Eastern Time (3:30 p.m. Central Time) to discuss these results. Rob Kill, President and Chief Executive Officer, and Brett Reynolds, Chief Financial Officer, will host the call. Individuals wishing to participate in the conference call should dial 888-505-4375. No passcode is necessary. To access a live webcast of the call, go to Uroplasty's website at www.uroplasty.com and click on the Investor Relations section.
An audio replay will be available for 30 days following the call at 888-203-1112 with the passcode 7876225. An archived webcast will also be available at investor.uroplasty.com.
About Uroplasty, Inc.
Uroplasty, Inc., headquartered in Minnetonka, Minnesota, with wholly-owned subsidiaries in The Netherlands and the United Kingdom, is a global medical device company that develops, manufactures and markets innovative proprietary products for the treatment of voiding dysfunctions. Our focus is the continued commercialization of our Urgent® PC Neuromodulation System, which we believe is the only commercially available, FDA-cleared system that delivers percutaneous tibial nerve stimulation (PTNS) for the office-based treatment of overactive bladder (OAB). OAB is a chronic condition that affects approximately 42 million U.S. adults. The symptoms include urinary urgency, frequency and urge incontinence. We also offer Macroplastique®, an injectable urethral bulking agent for the treatment of adult female stress urinary incontinence primarily due to intrinsic sphincter deficiency. For more information on the Company and its products, please visit Uroplasty, Inc. at www.uroplasty.com.
Statements contained in this release that relate to future events are forward-looking statements under the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on current expectations of future events and often can be identified by words such as "continues," "expects," "intends," "should," "will," "may," "believes," "could," "hopes," "objective," "looking ahead," "future," other words of similar meaning or the use of future dates. Uncertainties and risks may cause our actual results to be materially different than those expressed in or implied by our forward-looking statements. Such uncertainties and risks include, among others, that we cannot be certain that we will ever achieve sustained profitability, that the rate of reimbursement for PTNS treatments will be adequate to justify the cost of our product, that other Medicare carriers or private payers will provide coverage for this treatment or that existing carriers and payers will not change their coverage decisions, and that the rate of adoption of our products by new customers will continue. More detailed information on these and other factors that could affect our actual results are described in our filings with the Securities and Exchange Commission, including our most recent annual report on Form 10-K and subsequent quarterly reports on Form 10-Q. We undertake no obligation to update our forward-looking statements.For Further Information: Uroplasty, Inc.
Brett Reynolds, SVP and CFO
Doug Sherk (Investors)
Janine McCargo (Media)
646-688-0425 UROPLASTY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)Three Months EndedJune 30,20142013Net sales
$6,384,629$5,840,841Cost of goods sold
5,593,3185,092,794Operating expensesGeneral and administrative
1,577,3681,580,763Research and development
909,444479,660Selling and marketing
(2,174,441)(1,601,686)Other income (expense)Interest income
3,0129,264Foreign currency exchange gain (loss)
911(2,695)3,9236,569Loss before income taxes
(2,170,518)(1,595,117)Income tax expense
$(2,190,332)$(1,609,292)Basic and diluted net loss per common share
$(0.10)$(0.08)Weighted average common shares outstanding:Basic and diluted
21,675,52420,784,900 UROPLASTY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)June 30, 2014 March 31, 2014AssetsCurrent assets:Cash and cash equivalents
400,0003,451,086Accounts receivable, net
536,830507,299Total current assets
14,383,05216,032,486Property, plant, and equipment, net
980,412997,609Intangible assets, net
111,654119,980Prepaid pension assets
-855Deferred tax assets
$15,621,727$17,301,046Liabilities and Shareholders' EquityCurrent liabilities:Accounts payable
$954,832$904,879Current portion – deferred rent
-2,917Income tax payable
423,428479,373Total current liabilities
3,497,5963,409,057Deferred rent – less current portion
25,832171Accrued pension liability
4,239,2354,087,346Total shareholders' equity
11,382,49213,213,700Total liabilities and shareholders' equity
$15,621,727$17,301,046 UROPLASTY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)Three Months EndedJune 30,20142013Cash flows from operating activities:Net loss
$(2,190,332)$(1,609,292)Adjustments to reconcile net loss to net cash used in operating activities:Depreciation and amortization
72,58487,013Loss (gain) on disposal of equipment
1,249(5,881)Amortization of premium on marketable securities
3433,342Share-based compensation expense
323,30416,044Deferred income tax expense
22,744(9,263)Changes in operating assets and liabilities: Accounts receivable, net
(92,649)39,773Other current assets
(65,795)383,436Accrued pension liability
44,08140,073Net cash used in operating activities
(1,505,465)(685,094)Cash flows from investing activities:Proceeds from maturity of available-for-sale marketable investments
3,050,0001,000,000Purchases of held-to-maturity marketable investments
-820,000Purchases of property, plant and equipment
(52,739)(189,789)Proceeds from sale of property, plant and equipment
-6,080Net cash provided by investing activities
2,997,2611,636,291Cash flows from financing activities:Proceeds from exercise of stock options
48,600-Net cash provided by financing activities
48,600-Effect of exchange rates on cash and cash equivalents
(315)9,312Net increase in cash and cash equivalents
1,540,081960,509Cash and cash equivalents at beginning of period
8,681,6093,533,864Cash and cash equivalents at end of period
$10,221,690$4,494,373Supplemental disclosure of cash flow information:Cash paid during the period for income tax
Non-GAAP Financial Measures: The following table reconciles our operating loss calculated in accordance with accounting principles generally accepted in the U.S. ("GAAP") to non-GAAP financial measures that exclude non-cash charges for share-based compensation, depreciation and amortization from gross profit, operating expenses and operating loss. The non-GAAP financial measures used by management and disclosed by us are not a substitute for, or superior to, financial measures and consolidated financial results calculated in accordance with GAAP, and you should carefully evaluate our reconciliations to non-GAAP. We may calculate our non-GAAP financial measures differently from similarly titled measures used by other companies. Therefore, our non-GAAP financial measures may not be comparable to those used by other companies. We have described the reconciliations of each of our non-GAAP financial measures described above to the most directly comparable GAAP financial measures.
We use these non-GAAP financial measures, and in particular non-GAAP operating loss, for internal managerial purposes because we believe such measures are one important indicator of the strength and the operating performance of our business. Analysts and investors frequently ask us for this information. We believe that they use these measures to evaluate the overall operating performance of companies in our industry, including as a means of comparing period-to-period results and as a means of evaluating our results with those of other companies.
Our non-GAAP operating loss during the three months ended June 30, 2014 and 2013 was approximately $1,778,000 and $1,499,000 respectively. The increase in non-GAAP operating loss for the three months ended June 30, 2014 over the corresponding period a year ago is attributed to the increase in operating costs, partially offset by the increase in net sales and gross profit.Expense AdjustmentsGAAPShare-basedExpenseDepreciationAmortizationNon-GAAPThree Months Ended June 30, 2014Gross Profit
$5,611,000% of sales
87.6%87.9%Operating ExpensesGeneral & administrative
1,326,000Research and development
890,000Selling and marketing
$(1,778,000)Three Months Ended June 30, 2013Gross Profit
$5,110,000% of sales
87.2%87.5%Operating ExpensesGeneral & administrative
1,609,000Research and development
465,000Selling and marketing
|SOURCE Uroplasty, Inc.|
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