Third Quarter Summary
- Third quarter revenue of $4.1 million
- Quarter-end cash balance of $5.1 million
- Guidance for fiscal year 2013 revenue reaffirmed at $16.0 million to $17.0 million
MINNEAPOLIS, May 1, 2013 (GLOBE NEWSWIRE) -- Urologix®, Inc. (Nasdaq:ULGX), the leading provider of in-office BPH therapy, today reported financial results for its fiscal year third quarter ended March 31, 2013.
Third quarter fiscal year 2013 revenue totaled $4.1 million, down 6.3% sequentially from the second quarter of fiscal year 2013 and down 13.8% compared to the third quarter of fiscal year 2012. The comparative declines in revenue were driven by lower unit sales in both product lines, Cooled ThermoTherapyTM (CTT) and Prostiva Radio Frequency (RF) Therapy.
"The seasonal procedure weakness we typically see in Q3 as a result of resetting of patient deductibles was greater than in past years. Our third fiscal quarter performance does however keep us on track to hit the midpoint of our annual guidance and our team remains focused on improving upon our execution," stated Greg Fluet, Chief Executive Officer. "Our goal is to leverage our leading market share position, sales organization, and innovative market development and patient education programs to drive top-line growth. Within our company there are a number of geographies that are beginning to show growth through execution of our sales plan giving us continued confidence in our ability to grow the business."
As of March 31, 2013, the Company's cash balance was $5.1 million compared to $4.9 million as of December 31, 2012, an increase of $221,000 during the quarter. The Company's cash balance benefited from both the deferral of payments totaling $610,000 for Prostiva disposables purchased during the quarter, and the receipt of proceeds totaling $321,000 from the demutualization of an insurer. Additionally, we continue to defer payments due and accrued in the current and prior periods related to Prostiva which are reflected in accounts payable and short term deferred acquisition payments on the balance sheet.
Gross profit for the third quarter of fiscal year 2013 was $2.0 million, or 49.6% of revenue, compared to $2.4 million, or 50.7% of revenue, in the third quarter of fiscal year 2012. The change in gross margin year-over-year was driven primarily by variability in expenses associated with costs for manufacturing and servicing capital equipment.
Total operating expense for the third quarter of fiscal year 2013 declined 10.2% compared to the third quarter of fiscal year 2012, and 5.1% sequentially compared to the second quarter of fiscal year 2013, to $2.9 million. The decline in total operating expense compared to the prior year was driven primarily by a gain of $321,000 in the third quarter of fiscal year 2013 related to the receipt of proceeds from the demutualization of an insurer. Excluding this gain, total operating expense was flat compared to the prior year and the sequential decline was related to lower sales compensation compared to the previous quarter.
For the third quarter of fiscal year 2013, Urologix reported a net loss of $1.0 million, or $0.05 per diluted share, compared to a net loss of $968,000, or $0.07 per diluted share, in the third quarter of fiscal year 2012. The net loss in the third quarter of fiscal year 2013 was positively impacted by a $321,000 gain for the receipt of proceeds from a demutualization. Third quarter net loss increased slightly from a net loss of $970,000, or $0.05 per share, in the second quarter of fiscal 2013.
Guidance
The Company reaffirms the fiscal year 2013 total revenue guidance range of approximately $16.0 million to $17.0 million.
Earnings Call Information
Urologix will host a conference call with the financial community to discuss fiscal year 2013 third quarter results on Wednesday, May 1, 2013 at 4:00 p.m. Central Daylight Time. To listen to the call, please dial 1-877-299-4454 and enter the Participant Passcode 88115737 at least 10 minutes prior to the call. A live webcast of the call will be available through the investor relations section of the Company's website at www.urologix.com and available for replay approximately two hours after the completion of the call.
About Urologix
Urologix, Inc., based in Minneapolis, develops, manufactures, markets and distributes minimally invasive medical products for the treatment of obstruction and symptoms due to Benign Prostatic Hyperplasia (BPH). Urologix' Cooled ThermoTherapy™ produces targeted microwave energy combined with a unique cooling mechanism to protect healthy tissue and enhance patient comfort. The Prostiva® RF Therapy System delivers radio frequency energy directly into the prostate destroying prostate tissue, reducing constriction of the urethra, and thereby relieving BPH symptoms. Both of these therapies provide safe, effective and lasting relief of the symptoms and obstruction due to BPH. Prostiva® is a registered trademark of Medtronic, Inc., used under license. All other trademarks are the property of Urologix.
If you'd like more information on this topic, please contact Brian Smrdel at (763) 475-7696 or bsmrdel@urologix.com or to learn more about Urologix and its products and services, visit their website at www.urologix.com.
The Urologix, Inc. logo is available at www.urologix.com/clinicians/resource-library.php.
Forward-Looking Statements
This press release contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Any statements contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, words such as "may," "will," "expect," "believe," "anticipate," "estimate" or "continue" or comparable terminology are intended to identify forward-looking statements. Such forward looking statements include, for example, the effectiveness of the Company's sales and marketing strategies and organization, the Company's future revenue and operating performance, or about the development and marketing of new products. The statements made by the Company are based upon management's current expectations and are subject to certain risks and uncertainties that could cause the actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties include market conditions and other factors beyond the Company's control and the risk factors and other cautionary statements described in the Company's Annual Report on Form 10-K for the year ended June 30, 2012 and other documents filed with the Securities and Exchange Commission.
| Urologix, Inc. | ||||
| Statements of Operations | ||||
| (Unaudited, in thousands, except per share data) | ||||
|
Three Months Ended March 31, |
Nine Months Ended March 31, |
|||
| 2013 | 2012 | 2013 | 2012 | |
| Sales | $4,082 | $4,735 | $12,405 | $12,530 |
| Cost of goods sold | 2,056 | 2,334 | 6,127 | 6,425 |
| Gross profit | 2,026 | 2,401 | 6,278 | 6,105 |
| Costs and expenses: | ||||
| Sales and marketing | 1,915 | 1,875 | 5,639 | 4,914 |
| General and administrative | 711 | 797 | 2,094 | 2,573 |
| Research and development | 538 | 543 | 1,756 | 1,612 |
| Change in value of acquisition consideration | -- | -- | (369) | -- |
| Gain on demutualization | (321) | -- | (321) | -- |
| Medical device tax | 41 | -- | 41 | -- |
| Amortization expense | 26 | 26 | 78 | 65 |
| Total costs and expenses | 2,910 | 3,241 | 8,918 | 9,164 |
| Operating loss | (884) | (840) | (2,640) | (3,059) |
| Interest expense | (98) | (102) | (348) | (371) |
| Foreign currency exchange gain/(loss) | (6) | 1 | (9) | (3) |
| Loss before income taxes | (988) | (941) | (2,997) | (3,433) |
| Income tax expense | 17 | 27 | 48 | 38 |
| Net loss | $ (1,005) | $ (968) | $ (3,045) | $ (3,471) |
| Net loss per common share---basic | $ (0.05) | $ (0.07) | $ (0.15) | $ (0.24) |
| Net loss per common share---diluted | $ (0.05) | $ (0.07) | $ (0.15) | $ (0.24) |
| Weighted average number of common shares outstanding---basic | 20,902 | 14,778 | 20,637 | 14,723 |
| Weighted average number of common shares outstanding---diluted | 20,902 | 14,778 | 20,637 | 14,723 |
| Urologix, Inc. | ||
| Balance Sheets | ||
| (Unaudited, in thousands) | ||
|
March 31, 2013 |
June 30, 2012 |
|
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $5,100 | $1,899 |
| Accounts receivable, net | 2,059 | 2,132 |
| Inventories, net | 2,461 | 1,448 |
| Prepaids and other current assets | 197 | 290 |
| Total current assets | 9,817 | 5,769 |
| Property and equipment: | ||
| Property and equipment | 12,053 | 12,006 |
| Less accumulated depreciation | (11,370) | (11,144) |
| Property and equipment, net | 683 | 862 |
| Other intangible assets, net | 2,081 | 2,262 |
| Goodwill | 3,036 | 3,115 |
| Long-term inventories | 673 | 663 |
| Other assets | 5 | 5 |
| Total assets | $16,295 | $12,676 |
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||
| Current liabilities: | ||
| Accounts payable | $5,983 | $3,376 |
| Accrued compensation | 791 | 732 |
| Deferred income | 13 | 7 |
| Short-term deferred acquisition payment | 2,971 | 2,395 |
| Other accrued expenses | 668 | 779 |
| Total current liabilities | 10,426 | 7,289 |
| Deferred tax liability | 67 | 35 |
| Long-term deferred acquisition payment | 4,107 | 4,613 |
| Other accrued liabilities | 84 | 113 |
| Total liabilities | 14,684 | 12,050 |
| Shareholders' equity: | ||
| Common stock | 208 | 147 |
| Additional paid-in capital | 119,174 | 115,205 |
| Accumulated deficit | (117,771) | (114,726) |
| Total shareholders' equity | 1,611 | 626 |
| Total liabilities and shareholders' equity | $16,295 | $12,676 |
| Urologix, Inc. | ||
| Condensed Statements of Cash Flows | ||
| (Unaudited, in thousands) | ||
|
Nine Months Ended March 31, |
||
| 2013 | 2012 | |
| Operating Activities: | ||
| Net loss | $ (3,045) | $ (3,471) |
| Adjustments to reconcile net loss to net cash used for operating activities: | ||
| Depreciation and amortization | 505 | 518 |
| Employee stock-based compensation expense | 200 | 277 |
| Provision for bad debts | 29 | 26 |
| Loss on disposal of assets | 7 | 15 |
| Accretion expense on deferred acquisition payments | 439 | 438 |
| Net adjustment to acquisition consideration | (369) | -- |
| Deferred income taxes | 32 | 25 |
| Change in operating items, net of acquisition: | ||
| Accounts receivable | 44 | (1,043) |
| Inventories, net | (1,017) | 6 |
| Prepaids and other assets | 93 | (6) |
| Accounts payable | 2,607 | 1,999 |
| Accrued expenses and deferred income | (75) | 460 |
| Net cash used for operating activities | (550) | (756) |
| Investing Activities: | ||
| Purchase of property and equipment | (55) | (40) |
| Acquisition of business | -- | (500) |
| Purchases of intellectual property | (24) | (8) |
| Net cash used for investing activities | (79) | (548) |
| Financing Activities: | ||
| Proceeds from stock option exercises | 16 | 100 |
| Issuance of common stock | 3,814 | -- |
| Net cash provided by financing activities | 3,830 | 100 |
| Net increase/(decrease) in cash and cash equivalents | 3,201 | (1,204) |
| Cash and cash equivalents: | ||
| Beginning of period | 1,899 | 3,061 |
| End of period | $5,100 | $1,857 |
| Supplemental cash-flow information | ||
| Income taxes paid during the period | $15 | $12 |
| Net amount of inventory transferred to property and equipment | $73 | $242 |
| Non-cash consideration for acquisition | $ -- | $6,532 |