- First quarter revenue of $4.0 million, up 26.3% year-over-year
- Cash balance increases to $5.3 million after completion of follow-on offering
- Cooled ThermoTherapy reimbursement code supported in Medicare review
- The Company revises fiscal year 2013 total revenue guidance range to $16.0 million to $17.0 million
MINNEAPOLIS, Nov. 14, 2012 (GLOBE NEWSWIRE) -- Urologix®, Inc. (Nasdaq:ULGX), the leading provider of in-office procedures for the safe, durable and effective treatment of BPH, today reported financial results for its fiscal year first quarter ended September 30, 2012.
First quarter fiscal year 2013 revenue totaled $4.0 million, up 26.3% year-over-year and down 11.7% sequentially. The first quarter year over year increase in revenue was driven by the incremental contribution of Prostiva® Radio Frequency (RF) Therapy product revenue. The sequential decline in total Urologix revenue was due to lower procedure kit sales volume in the Company's direct channel, approximately half of which was driven by a decline in Prostiva product sales.
As of September 30, 2012, the Company's cash balance was $5.3 million compared to $1.9 million as of June 30, 2012. The change in cash balance was driven primarily by the contributions from the Company's completed follow-on offering in the period which added approximately $3.9 million to cash balances in the fiscal year 2013 first quarter. The Company's cash flow benefitted from the delayed timing of payments for Prostiva product, royalties and license fees.
"The first quarter of fiscal year 2013 started off slower than expected and our revised guidance reflects our cautiousness with respect to healthcare procedure trends for the balance of the fiscal year," stated Stryker Warren, Jr., CEO. "We remain intently focused on leveraging our leading market share position, our expanded sales organization and our innovative market development and patient education programs to drive top-line growth going forward."
Gross profit for the first quarter of fiscal year 2013 was $2.0 million, or 50.8% of revenue, compared to $1.4 million, or 45.0% of revenue, in the first quarter of fiscal year 2012. The increase in the percentage of gross profit compared to the prior year was due to the negative impact of lower production volumes in the prior year as part of a plan to reduce inventory levels that reduced gross margin by 450 basis points in that period.
Total operating expense of $2.9 million in the first quarter of fiscal year 2013 increased 7.5% year-over-year, driven primarily by the investment in the direct sales force and our seminar program that resulted from the acquisition of the Prostiva product line. Total operating expense declined 12.5% on a sequential basis due to: (i) expenses related to the Annual AUA meeting that were incurred in the fourth quarter of fiscal year 2012; and (ii) lower sales compensation expense as a result of the decrease in sales compared to the last quarter. First quarter fiscal year 2013 operating expense included a gain of $154,000 due to a change in the fair value of the acquisition consideration for the Prostiva business.
For the first quarter of fiscal year 2013, Urologix reported a net loss of $1.1 million, or $0.05 per diluted share, compared to a net loss of $1.4 million, or $0.09 per diluted share, in the first quarter of fiscal year 2012. The net loss in the first quarter of fiscal year 2013 was positively impacted by the gain of $154,000 due to a change in the fair value of the acquisition consideration.
Recent Developments
On November 1, 2012, the Centers for Medicare and Medicaid Services (CMS), in the Final Rule for the Medicare Physician Fee Schedule for 2013, updated payment rates for Urologix's Cooled ThermoTherapy technology as part of a broad re-evaluation of 70 codes across multiple specialties. The AMA recommended the physician work "relative value units" (RVUs) for Urologix's Cooled ThermoTherapy (CTT) remain at current levels. CMS accepted the AMA recommendation and made no material adjustments to either physician time, or to overall practice expense for CTT's Current Procedural Terminology (CPT®) code (53850).
Guidance
The Company is revising the fiscal year 2013 total revenue guidance range to approximately $16.0 million to $17.0 million compared to $17.5 to $19.0 million previously.
Earnings Call Information
Urologix will host a conference call with the financial community to discuss fiscal year 2013 first quarter results on Wednesday, November 14, 2012 at 4:00 p.m. Central Standard Time. To listen to the call, please dial 1-866-202-1971 and enter the Participant Passcode 75425848 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 Cooled ThermoTherapy™ product line includes the CoolWave® and Targis® Control Units and the CTC Advance® and Targis® catheter families. The Prostiva® RF Therapy System distributed by Urologix delivers radio frequency energy directly into the prostate destroying prostate tissue, reducing constriction of the urethra, and thereby relieving BPH voiding symptoms. Both of these products 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.
The Urologix, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=7867
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, statements about the effectiveness of the Company's sales and marketing strategies, 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 September 30, | ||
| 2012 | 2011 | |
| Sales | $ 3,970 | $ 3,142 |
| Cost of goods sold | 1,954 | 1,727 |
| Gross profit | 2,016 | 1,415 |
| Costs and expenses: | ||
| Sales and marketing | 1,717 | 1,365 |
| General and administrative | 738 | 880 |
| Research and development | 615 | 481 |
| Change in value of acquisition consideration | (154) | -- |
| Amortization expense | 26 | 12 |
| Total costs and expenses | 2,942 | 2,738 |
| Operating loss | (926) | (1,323) |
| Interest expense | (123) | (56) |
| Foreign currency exchange loss | (4) | -- |
| Loss before income taxes | (1,053) | (1,379) |
| Income tax expense | 16 | 5 |
| Net loss | $ (1,069) | $ (1,384) |
| Net loss per common share---basic | $ (0.05) | $ (0.09) |
| Net loss per common share---diluted | $ (0.05) | $ (0.09) |
| Weighted average number of common shares outstanding---basic | 20,180 | 14,646 |
| Weighted average number of common shares outstanding---diluted | 20,180 | 14,646 |
| Urologix, Inc. | ||
| Balance Sheets | ||
| (Unaudited, in thousands) | ||
|
September 30, 2012 |
June 30, 2012 |
|
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $ 5,349 | $ 1,899 |
| Accounts receivable, net | 2,096 | 2,132 |
| Inventories | 2,060 | 1,448 |
| Prepaids and other current assets | 313 | 290 |
| Total current assets | 9,818 | 5,769 |
| Property and equipment: | ||
| Property and equipment | 12,023 | 12,006 |
| Less accumulated depreciation | (11,205) | (11,144) |
| Property and equipment, net | 818 | 862 |
| Other intangible assets, net | 2,199 | 2,262 |
| Goodwill | 3,036 | 3,115 |
| Long-term inventories | 698 | 663 |
| Other assets | 5 | 5 |
| Total assets | $ 16,574 | $ 12,676 |
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||
| Current liabilities: | ||
| Accounts payable | $ 4,535 | $ 3,376 |
| Accrued compensation | 606 | 732 |
| Deferred income | 13 | 7 |
| Short-term deferred acquisition payment | 2,457 | 2,395 |
| Other accrued expenses | 759 | 779 |
| Total current liabilities | 8,370 | 7,289 |
| Deferred tax liability | 46 | 35 |
| Long-term deferred acquisition payment | 4,567 | 4,613 |
| Other accrued liabilities | 103 | 113 |
| Total liabilities | 13,086 | 12,050 |
| Shareholders' equity: | ||
| Common stock | 207 | 147 |
| Additional paid-in capital | 119,076 | 115,205 |
| Accumulated deficit | (115,795) | (114,726) |
| Total shareholders' equity | 3,488 | 626 |
| Total liabilities and shareholders' equity | $ 16,574 | $ 12,676 |
| Urologix, Inc. | ||
| Condensed Statements of Cash Flows | ||
| (Unaudited, in thousands) | ||
|
Three Months Ended September 30, |
||
| 2012 | 2011 | |
| Operating Activities: | ||
| Net loss | $ (1,069) | $ (1,384) |
| Adjustments to reconcile net loss to net cash used for operating activities: | ||
| Depreciation and amortization | 172 | 139 |
| Employee stock-based compensation expense | 58 | 87 |
| Provision for bad debts | (12) | -- |
| Loss on disposal of assets | -- | 10 |
| Implied interest on deferred acquisition payments | 170 | 56 |
| Net adjustment to acquisition consideration | (154) | -- |
| Deferred income taxes | 11 | -- |
| Change in operating items, net of acquisition: | ||
| Accounts receivable | 48 | (433) |
| Inventories | (624) | 348 |
| Prepaids and other assets | (23) | (105) |
| Accounts payable | 1,159 | (75) |
| Accrued expenses and deferred income | (150) | 277 |
| Net cash used for operating activities | (414) | (1,080) |
| Investing Activities: | ||
| Purchase of property and equipment | (4) | (5) |
| Acquisition of business | -- | (500) |
| Purchases of intellectual property | (5) | -- |
| Net cash used for investing activities | (9) | (505) |
| Financing Activities: | ||
| Proceeds from stock option exercises | -- | 79 |
| Issuance of common stock | 3,873 | -- |
| Net cash provided by financing activities | 3,873 | 79 |
| Net increase/(decrease) in cash and cash equivalents | 3,450 | (1,506) |
| Cash and cash equivalents: | ||
| Beginning of period | 1,899 | 3,061 |
| End of period | 5,349 | 1,555 |
| Supplemental cash-flow information | ||
| Income taxes paid during the period | $ 15 | 11 |
| Net amount of inventory transferred to property and equipment | $ 56 | $ 36 |
| Non-cash consideration for acquisition | $ -- | $ 6,532 |