STRATA Skin Sciences Announces Preliminary Fourth Quarter and Full-Year 2018 Revenue Results
Financial results reported in this press release are preliminary. Final financial results and other disclosures will be reported in the Company’s Annual Report on Form 10-K for the year ended
Dr. Dolev Rafaeli, STRATA’s President and Chief Executive Officer, commented, “We are very pleased with the progress of our turnaround strategy and our strong top-line performance this quarter, which underscores that our team is executing effectively on our long-term plan. We continue to set the foundation for further growth and reiterate our expectation for double-digit revenue growth in 2019, as well as accelerating business development activities with the goal to announce at least one tuck-in acquisition during 2019.”
Financial Results for the Fourth Quarter of 2018
Total revenues for the fourth quarter of 2018 were
Equipment revenues for the fourth quarter of 2018 were
Gross margins for the fourth quarter of 2018 were 66.9%, an increase of more than 17 percentage points from 49.2% during the fourth quarter of 2017, driven primarily by the growth in recurring revenue.
Financial Results for Full Year 2018
Total revenues for the year ended
Equipment revenues for the year ended
STRATA ended 2018 with an installed base of 746 XTRAC recurring revenue devices. The Company continues to relocate XTRAC lasers from underperforming clinics to those with greater utilization potential.
STRATA remained focused on its comeback strategy in which the Company targets users of excimer lasers (whether they are XTRAC lasers or otherwise) with an established patient treatment business, enabling STRATA to replace underperforming devices with those that can generate greater returns immediately. The Company had 14 comebacks for the year ended
During the year ended
STRATA ended the year with cash and cash equivalents of
Subsequent to year end, a shareholder converted 3,090 shares of Series C Preferred Stock into 1,148,698 shares of common stock. In addition, in
The Company has experienced delays in the completion of the audit of its financial statements for the year ended December 31, 2018, as it is still evaluating the proper accounting of certain historical contingent and potential liabilities related to state sales and use taxes as well as potential non-cash derivative accounting treatment arising from debentures issued in
The Company’s proprietary XTRAC® excimer laser delivers a highly targeted therapeutic beam of UVB light to treat psoriasis, vitiligo, eczema, atopic dermatitis and leukoderma; diseases which impact over 35 million patients in
STRATA’s unique business model leverages targeted Direct to Consumer (DTC) advertising to generate awareness and utilizes its in-house call center and insurance advocacy teams to increase volume for the Company’s partner dermatology clinics.
The XTRAC business has used this proven DTC model to grow its domestic dermatology partner network to over 740 clinics, with a worldwide installed base of over 2,000 devices. The Company is able to offer 90% of DTC patients an introduction to physicians prescribing a reimbursable solution, using XTRAC, within a 10-mile radius of their house. The Company is a leader in dermatology in-clinic business generation for its partners.
This press release, and oral statements made regarding the subjects of this release contains "forward-looking statements" within the meaning of the Securities Litigation Reform Act of 1995, or the Reform Act, which may include, but are not limited to, statements regarding the Company’s revenue growth estimates, plans, objectives, expectations and intentions and other statements contained in this press release that are not historical facts, including statements identified by words such as “believe,” “plan,” “seek,” “expect,” “intend,” “estimate,” “anticipate,” “will,” and similar expressions. All statements addressing the Company’s ability to generate the anticipated revenue stream, the Company’s ability to generate sufficient cash flow to fund the Company’s ongoing operations and research and development activities beginning at any time in the future, litigation and regulatory proceedings to which the Company might be subject; calculation of sales and use tax accruals and claims for uncollected sales and use tax; the Company’s ability to implement business strategies, including its acquisition, business development and comeback strategies; the Company’s acquisition and business development strategy may not be successful in locating advantageous targets; the Company’s ability to successfully integrate any assets, liabilities, customers, systems and management personnel it acquires into its operations and its ability to realize related revenue synergies, strategic gains and cost savings may be significantly harder to achieve, if at all, or may take longer to achieve; potential goodwill impairment charges, future impairment charges and fluctuations in the fair values of reporting units or of assets in the event projected financial results are not achieved within expected time frames; the Company’s debt and debt service requirements which may restrict its operational and financial flexibility, as well as imposing unfavorable interest and financing costs; the Company’s ability to maintain its existing credit facilities or obtain satisfactory new credit facilities; regulatory and political factors or conditions affecting the Company and/or the medical device industry in general; the public’s reaction to the Company’s new advertisements and marketing campaigns under development, and the Company’s ability to build a leading franchise in dermatology and aesthetics, and the Company’s ability to grow revenues and sustain that growth as well as statements expressing optimism or pessimism about future operating results are forward-looking statements within the meaning of the Reform Act. The forward-looking statements are based on management’s current views and assumptions regarding future events and operating performance, and are inherently subject to significant business, economic, and competitive uncertainties and contingencies and changes in circumstances, many of which are beyond the Company’s control. The statements in this press release are made as of the date of this press release, even if subsequently made available by the Company on its website or otherwise. The Company does not undertake any obligation to update or revise these statements to reflect events or circumstances occurring after the date of this press release.
Although the Company does not make forward-looking statements unless it believes it has a reasonable basis for doing so, the Company cannot guarantee their accuracy. The foregoing factors, among others, could cause actual results to differ materially from those described in these forward-looking statements. For a list of other factors which could affect the Company’s results, including revenue growth estimates, see the Company’s filings with the
|Matthew Hill, Chief Financial Officer||Jeremy Feffer, Managing Director|
|STRATA Skin Sciences, Inc.||LifeSci Advisors, LLC|