On November 14, 2024, Sensus Healthcare Inc (SRTS, Financial) released its 8-K filing detailing its financial results for the third quarter of 2024. The company, known for its superficial radiotherapy systems used in treating skin conditions, reported significant growth in both revenue and net income, exceeding analyst expectations.
Company Overview
Sensus Healthcare Inc is a medical device company that manufactures superficial radiotherapy systems for treating oncological and non-oncological skin conditions, including basal cell and squamous cell skin cancers and keloids. Its product lineup includes the SRT-100, SRT-100 Vision, and a sentinel service program, with a primary customer base in the United States.
Financial Performance and Challenges
For the third quarter of 2024, Sensus Healthcare reported revenues of $8.8 million, a 127% increase from $3.9 million in the same quarter of 2023. This growth was primarily driven by higher sales of superficial radiotherapy systems. The company shipped 27 systems, including one SRT-100 unit to an international customer, compared to 11 systems in the previous year. Net income reached $1.2 million, or $0.07 per diluted share, compared to a net loss of $1.5 million, or $0.09 per share, in the third quarter of 2023.
Key Financial Achievements
Sensus Healthcare's financial achievements are noteworthy in the medical devices and instruments industry, where innovation and market penetration are crucial. The company's adjusted EBITDA was $1.6 million, a significant improvement from a negative $1.7 million in the prior year. This reflects the company's ability to maintain profitability and manage costs effectively.
Income Statement and Balance Sheet Highlights
The gross profit for the third quarter of 2024 was $5.2 million, representing 59.3% of revenues, up from $2.0 million, or 51.0% of revenues, in the third quarter of 2023. Selling and marketing expenses remained stable at $1.3 million, while general and administrative expenses slightly increased to $1.6 million. Research and development expenses decreased to $0.9 million, reflecting a shift in project focus.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Revenue | $8.8 million | $3.9 million |
| Net Income | $1.2 million | -$1.5 million |
| Adjusted EBITDA | $1.6 million | -$1.7 million |
Management Commentary
“Continued growth in revenues and earnings reflects our success in engaging customers with both existing and new sales options. Our revenue-sharing Fair Deal Agreement, which allows customers to deploy capital elsewhere in their businesses, continues to attract significant attention,” said Joe Sardano, chairman and chief executive officer of Sensus Healthcare.
Analysis and Outlook
Sensus Healthcare's performance in the third quarter of 2024 highlights its strong market position and ability to capitalize on growing demand for non-invasive skin treatment solutions. The company's strategic initiatives, such as the Fair Deal Agreement, have contributed to its revenue growth and profitability. With a robust cash position of $22.6 million and no debt, Sensus Healthcare is well-positioned to continue its growth trajectory.
Overall, Sensus Healthcare's third-quarter results demonstrate its capacity to exceed market expectations and deliver value to its stakeholders, making it an attractive consideration for value investors and potential members of GuruFocus.com.
Explore the complete 8-K earnings release (here) from Sensus Healthcare Inc for further details.
