MINNEAPOLIS, May 24, 2012 /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
fourth quarter and year ended March 31,
2012.
Global sales increased 39% to $5.6
million for the fourth quarter of fiscal 2012, compared with
$4.0 million in the fiscal fourth
quarter a year ago. Sales in the U.S. grew 63%, driven by a
79% increase in sales of the Urgent® PC Neuromodulation
System. U.S. sales of Macroplastique grew 53% from the prior
year. Outside the U.S., sales rose by 4%.
Fiscal fourth quarter U.S. Urgent PC sales, number of active
customers and number of lead set boxes increased sequentially over
fiscal third quarter. Sales of $2.3
million increased 19% over the fiscal third quarter
sales. There were 538 active Urgent PC customers in the
fiscal fourth quarter compared with 500 in the fiscal third
quarter. The Company sold 3,023 lead set boxes in the fiscal
fourth quarter compared with 2,531 in the fiscal third quarter and
utilization in the fiscal fourth quarter increased to 5.6 lead set
boxes per active customer compared with 5.1 in the third
quarter.
"We demonstrated solid sequential quarterly improvement in the
performance metrics of our U.S. Urgent PC business," said
David Kaysen, President and CEO of
Uroplasty. "Our success is the result of good execution of
the initiatives we put in place in January
2012 to accelerate our growth through increased penetration
of existing physician accounts and increase in active
customers. New processes and tools are beginning to help our
customers to ramp up and incorporate Urgent PC as a key component
in their practices much more quickly. The fiscal fourth
quarter results also benefitted from a streamlined Medicare
reimbursement policy in Florida
that became effective February 1st. We were also pleased with
the growth in the number of active customers during the quarter and
we anticipate continued momentum in fiscal 2013."
"In addition, we had a positive development on reimbursement
recently," Mr. Kaysen continued. "Novitas Solutions (formerly
Highmark Medicare Services) published its decision to provide
coverage for percutaneous tibial nerve stimulation (PTNS)
treatments retroactive to April 9,
2012, and physicians in its network have been able to file
claims for treatments using Urgent PC. Novitas Solutions is
the Medicare Administrative Contractor for Delaware, Maryland, New
Jersey, Pennsylvania and
the District of Columbia and
provides benefits to approximately 4.6 million Medicare
beneficiaries. PTNS treatments are now covered by 11 of the
13 regional Medicare carriers.
Fourth Quarter Fiscal 2012 Results
Urgent PC sales in the U.S. were $2.3
million in the quarter ended March
31, 2012, compared with $1.3
million in the same quarter last year, an increase of
79%. Macroplastique sales in the U.S. totaled $1.6 million in the recent fourth quarter
compared to $1.0 million in the same
quarter last year. Growth of Macroplastique sales was due to
market share gain achieved when a competitor exited the market.
Net sales to customers outside of the U.S. for the fiscal fourth
quarter were $1.6 million, an
increase of 4% from the prior fiscal year's fourth quarter.
Excluding the impact of fluctuations in foreign currency exchange
rates, sales outside the U.S. grew 8%.
The Company reported an operating loss of $589,000 in the fiscal fourth quarter, compared
with a $1.3 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 $122,000 in the fourth quarter of fiscal 2012,
compared with a $928,000 loss in the
fourth quarter a year ago. The decrease was primarily
attributable to the increase in sales, which more than offset the
increase in selling and marketing expense.
Full Year Fiscal 2012 Results
For the full year ended March 31,
2012, global sales grew 49% to $20.6
million, compared with $13.8
million in fiscal 2011. The increase reflected a 75%
increase in U.S. sales to $13.9
million and a 14% increase in sales outside the U.S. to
$6.7 million. In the U.S.,
Urgent PC sales grew 84% to $7.8
million compared with $4.3
million in fiscal 2011. Macroplastique sales were up
69% to $5.9 million. Adjusted
for the fluctuations in foreign currency exchange rates, total
sales grew 47% and sales outside the U.S. increased 10%.
Cash, cash equivalents and cash investments totaled $16.3 million at March 31,
2012, compared with $16.7
million at the end of December. The Company used
$3.1 million of cash for operating
activities in fiscal 2012.
"We made good progress in fiscal 2012. In the U.S., with
the exit of a competitor from the bulking market, we gained a
significant market share with Macroplastique. We have
established Urgent PC, recognized for its efficacy and safety, as a
viable treatment for the symptoms of OAB. We have
strengthened our sales and marketing approach with existing
customers, providing them with additional support to help them
build their PTNS practices and we continue to bring in new
physician accounts based on solid clinical evidence of Urgent PC's
benefits to patients," concluded Mr. Kaysen.
Conference Call
Uroplasty will host an audio conference call today at
3:30 pm Central, 4:30 pm Eastern, to review the financial results
for the fiscal fourth quarter and full year ended March 31, 2012. David
Kaysen, President and Chief Executive Officer, and
Medi Jiwani, Vice President, Chief
Financial Officer and Treasurer, will host the call. Individuals
wishing to participate in the conference call should dial
877-941-0844. An audio replay will be available for 30 days
following the call at 800-406-7325 (domestic) or 303-590-3030
(international), with the passcode 4531976#.
About Uroplasty, Inc.
Uroplasty, Inc., headquartered in Minnetonka, Minnesota, with wholly-owned
subsidiaries in The Netherlands
and the United Kingdom, is a
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, the only FDA-cleared system
that delivers posterior tibial nerve stimulation for the
office-based treatment of overactive bladder and the associated
symptoms of urgency, frequency and urge incontinence.
We also offer Macroplastique® Implants, 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.
Forward-Looking Information
This press release contains forward-looking statements that
reflect our best estimates regarding future events and financial
performance. These forward-looking statements are subject to risks
and uncertainties that could cause actual results to differ
materially from our anticipated results. We discuss in detail the
factors that may affect the achievement of our forward-looking
statements in our Annual Report on Form 10-K filed with the
SEC. In particular, 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, that the rate of
adoption of our products by new customers will continue, or that
any of the other risks identified in our 10-K will not adversely
affect our expectations as described in these forward-looking
statements.
For
Further Information:
Uroplasty,
Inc.
David
Kaysen, President and CEO, or
Medi
Jiwani, Vice President, CFO, and
Treasurer
952.426.6140
|
EVC
Group
Doug
Sherk/Jenifer Kirtland (Investors)
415.568.4887
Chris Gale
(Media)
646.201.5431
|
UROPLASTY,
INC. AND SUBSIDIARIES
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
|
Three
Months Ended
March
31,
(unaudited)
|
|
Year
Ended
March
31,
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
sales
|
$5,596,782
|
|
$4,014,643
|
|
$20,561,714
|
|
$13,787,032
|
Cost of
goods sold
|
791,527
|
|
676,700
|
|
3,036,967
|
|
2,386,431
|
|
|
|
|
|
|
|
|
Gross
profit
|
4,805,255
|
|
3,337,943
|
|
17,524,747
|
|
11,400,601
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
General and
administrative
|
843,684
|
|
833,892
|
|
3,732,623
|
|
3,442,952
|
Research and
development
|
406,296
|
|
423,101
|
|
1,905,366
|
|
1,719,532
|
Selling and
marketing
|
3,929,248
|
|
3,214,660
|
|
15,296,217
|
|
10,092,062
|
Amortization
|
215,460
|
|
211,094
|
|
856,995
|
|
843,602
|
|
5,394,688
|
|
4,682,747
|
|
21,791,201
|
|
16,098,148
|
|
|
|
|
|
|
|
|
Operating
loss
|
(589,433)
|
|
(1,344,804)
|
|
(4,266,454)
|
|
(4,697,547)
|
|
|
|
|
|
|
|
|
Other
income (expense)
|
|
|
|
|
|
|
|
Interest
income
|
14,254
|
|
19,664
|
|
60,072
|
|
72,426
|
Interest
expense
|
-
|
|
(530)
|
|
(57)
|
|
(5,067)
|
Foreign currency
exchange gain (loss)
|
18,084
|
|
(2,145)
|
|
3,780
|
|
10,722
|
|
32,338
|
|
16,989
|
|
63,795
|
|
78,081
|
|
|
|
|
|
|
|
|
Loss
before income taxes
|
(557,095)
|
|
(1,327,815)
|
|
(4,202,659)
|
|
(4,619,466)
|
|
|
|
|
|
|
|
|
Income tax
expense
|
15,944
|
|
577
|
|
47,712
|
|
28,837
|
|
|
|
|
|
|
|
|
Net
loss
|
$(573,039)
|
|
$(1,328,392)
|
|
$(4,250,371)
|
|
$(4,648,303)
|
|
|
|
|
|
|
|
|
Basic and
diluted loss per common share
|
$(0.03)
|
|
$(0.06)
|
|
$(0.21)
|
|
$(0.25)
|
|
|
|
|
|
|
|
|
Weighted
average common shares outstanding:
|
|
|
|
|
|
|
|
Basic and
diluted
|
20,722,910
|
|
20,584,668
|
|
20,689,819
|
|
18,874,009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UROPLASTY,
INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
March
31,
|
|
|
2012
|
|
2011
|
|
|
|
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash equivalents & short-term
investments
|
$11,854,127
|
|
$14,084,150
|
Accounts receivable, net
|
2,704,434
|
|
2,085,262
|
Inventories
|
698,742
|
|
677,960
|
Other
|
363,639
|
|
348,100
|
Total current
assets
|
15,620,942
|
|
17,195,472
|
|
|
|
|
Property, plant,
and equipment, net
|
1,171,979
|
|
1,210,542
|
Intangible
assets, net
|
945,880
|
|
1,725,136
|
Long-term
investments
|
4,429,140
|
|
5,508,701
|
Deferred tax
assets
|
122,872
|
|
87,031
|
Total
assets
|
$22,290,813
|
|
$25,726,882
|
|
|
|
|
Liabilities and Shareholders' Equity
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts payable
|
$593,585
|
|
$658,107
|
Current portion – deferred rent
|
35,000
|
|
35,000
|
Income tax payable
|
17,892
|
|
6,901
|
Accrued liabilities:
|
|
|
|
Compensation
|
1,576,147
|
|
1,597,657
|
Other
|
316,995
|
|
247,451
|
|
|
|
|
Total current
liabilities
|
2,539,619
|
|
2,545,116
|
|
|
|
|
Deferred rent –
less current portion
|
42,043
|
|
77,272
|
Accrued pension
liability
|
474,396
|
|
475,845
|
|
|
|
|
Total
liabilities
|
3,056,058
|
|
3,098,233
|
|
|
|
|
Total
shareholders' equity
|
19,234,755
|
|
22,628,649
|
|
|
|
|
Total
liabilities and shareholders' equity
|
$22,290,813
|
|
$25,726,882
|
UROPLASTY,
INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
Year ended
March 31,
|
|
|
|
|
2012
|
|
2011
|
Cash flows
from operating activities:
|
|
|
|
Net loss
|
$(4,250,371)
|
|
$(4,648,303)
|
Adjustments to reconcile net loss to net cash used in
operations:
|
|
|
|
Depreciation and amortization
|
1,118,243
|
|
1,119,227
|
Loss on disposal of equipment
|
8,447
|
|
5,358
|
Amortization of premium on marketable
securities
|
35,277
|
|
18,910
|
Share-based consulting expense
|
5,448
|
|
11,261
|
Share-based compensation expense
|
679,471
|
|
422,893
|
Deferred income taxes
|
(40,116)
|
|
26,192
|
Deferred rent
|
(35,228)
|
|
(35,228)
|
Changes in operating assets and
liabilities:
|
|
|
|
Accounts receivable, net
|
(653,110)
|
|
(752,970)
|
Inventories
|
(29,719)
|
|
(328,754)
|
Other current assets
|
(17,510)
|
|
(85,529)
|
Accounts payable
|
(59,025)
|
|
170,326
|
Accrued liabilities
|
63,981
|
|
711,832
|
Accrued pension liability, net
|
45,843
|
|
(11,680)
|
Net cash
used in operating activities
|
(3,128,369)
|
|
(3,376,465)
|
|
|
|
|
Cash flows
from investing activities:
|
|
|
|
Proceeds from maturity of available-for-sale
marketable securities
|
10,018,252
|
|
2,261,568
|
Proceeds from maturity of held-to-maturity marketable
securities
|
3,740,000
|
|
5,000,000
|
Purchases of available-for-sale marketable
securities
|
(3,046,270)
|
|
(12,318,915)
|
Purchases of held-to-maturity marketable
securities
|
(8,840,000)
|
|
(5,000,000)
|
Purchases of property, plant and equipment
|
(267,944)
|
|
(229,131)
|
Payments for intangible assets
|
(77,738)
|
|
(35,643)
|
Net cash
provided by (used in) investing activities
|
1,526,300
|
|
(10,322,121)
|
|
|
|
|
Cash flows
from financing activities:
|
|
|
|
Net proceeds from public offering of common
stock
|
-
|
|
14,917,059
|
Net proceeds from exercise of warrants and
options
|
208,825
|
|
2,542,207
|
Net cash
provided by financing activities
|
208,825
|
|
17,459,266
|
|
|
|
|
Effect of
exchange rates on cash and cash equivalents
|
(17,103)
|
|
(8,376)
|
|
|
|
|
Net
increase (decrease) in cash and cash equivalents
|
(1,410,347)
|
|
3,752,304
|
|
|
|
|
Cash and
cash equivalents at beginning of year
|
6,063,573
|
|
2,311,269
|
|
|
|
|
Cash and
cash equivalents at end of year
|
$4,653,226
|
|
$6,063,573
|
|
|
|
|
Supplemental disclosure of cash flow
information:
|
|
|
|
Cash paid during the year for interest
|
$57
|
|
$17
|
Cash paid during the year for income tax
|
39,005
|
|
17,549
|
|
|
|
|
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, and depreciation and amortization
expenses 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 and
incentive compensation for senior management 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 for the three months ended
March 31, 2012 and 2011 was
approximately $122,000 and
$928,000, respectively. Our
non-GAAP operating loss for fiscal 2012 and 2011 was approximately
$2.5 million and $3.1 million, respectively. The fiscal 2012
decrease in non-GAAP operating loss is attributed primarily to an
increase in net sales which more than offset the increase in
non-GAAP spending.
|
|
Expense
Adjustments
|
|
|
GAAP
|
Share-based Compensation
|
Depreciation
|
Amortization
|
Non-GAAP
|
Three
Months Ended March 31, 2012
|
|
|
|
|
Gross
Profit
|
$4,805,000
|
$6,000
|
$9,000
|
|
$4,820,000
|
% of sales
|
85.9%
|
|
|
|
86.1%
|
Operating
Expenses
|
|
|
|
|
|
General &
administrative
|
844,000
|
(116,000)
|
(44,000)
|
|
684,000
|
Research and
development
|
406,000
|
(9,000)
|
(1,000)
|
|
396,000
|
Selling and marketing
|
3,929,000
|
(51,000)
|
(16,000)
|
|
3,862,000
|
Amortization
|
215,000
|
|
|
(215,000)
|
-
|
|
5,394,000
|
(176,000)
|
(61,000)
|
(215,000)
|
4,942,000
|
Operating
Loss
|
$(589,000)
|
$182,000
|
$70,000
|
$215,000
|
$(122,000)
|
|
|
|
|
|
|
Three
Months Ended March 31, 2011
|
|
|
|
|
Gross
Profit
|
$3,338,000
|
$4,000
|
$9,000
|
|
$3,351,000
|
% of sales
|
83.1%
|
|
|
|
83.5%
|
Operating
Expenses
|
|
|
|
|
|
General &
administrative
|
834,000
|
(101,000)
|
(37,000)
|
|
696,000
|
Research and
development
|
423,000
|
(7,000)
|
(3,000)
|
|
413,000
|
Selling and marketing
|
3,215,000
|
(33,000)
|
(12,000)
|
|
3,170,000
|
Amortization
|
211,000
|
|
|
(211,000)
|
-
|
|
4,683,000
|
(141,000)
|
(52,000)
|
(211,000)
|
4,279,000
|
Operating
Loss
|
$(1,345,000)
|
$145,000
|
$61,000
|
$211,000
|
$(928,000)
|
|
|
Expense
Adjustments
|
|
|
GAAP
|
Share-based Compensation
|
Depreciation
|
Amortization
|
Non-GAAP
|
Year
Ended March 31, 2012
|
|
|
|
|
|
Gross
Profit
|
$17,525,000
|
$22,000
|
$34,000
|
|
$17,581,000
|
% of sales
|
85.2%
|
|
|
|
85.5%
|
Operating
Expenses
|
|
|
|
|
|
General &
administrative
|
3,733,000
|
(412,000)
|
(163,000)
|
|
3,158,000
|
Research and
development
|
1,905,000
|
(39,000)
|
(9,000)
|
|
1,857,000
|
Selling and marketing
|
15,296,000
|
(212,000)
|
(55,000)
|
|
15,029,000
|
Amortization
|
857,000
|
|
|
$(857,000)
|
-
|
|
21,791,000
|
(663,000)
|
(227,000)
|
(857,000)
|
20,044,000
|
Operating
Loss
|
$(4,266,000)
|
$685,000
|
$261,000
|
$857,000
|
$(2,463,000)
|
|
|
|
|
|
|
Year
Ended March 31, 2011
|
|
|
|
|
|
Gross
Profit
|
$11,401,000
|
$17,000
|
$52,000
|
|
$11,470,000
|
% of sales
|
82.7%
|
|
|
|
83.2%
|
Operating
Expenses
|
|
|
|
|
|
General &
administrative
|
3,443,000
|
(269,000)
|
(150,000)
|
|
3,024,000
|
Research and
development
|
1,720,000
|
(27,000)
|
(10,000)
|
|
1,683,000
|
Selling and marketing
|
10,092,000
|
(121,000)
|
(63,000)
|
|
9,908,000
|
Amortization
|
844,000
|
|
|
$(844,000)
|
-
|
|
16,099,000
|
(417,000)
|
(223,000)
|
(844,000)
|
14,615,000
|
Operating
Loss
|
$(4,698,000)
|
$434,000
|
$275,000
|
$844,000
|
$(3,145,000)
|
SOURCE Uroplasty, Inc.