On August 8, 2024, Sensus Healthcare Inc (SRTS, Financial) released its 8-K filing detailing the financial results for the second quarter of 2024. Sensus Healthcare Inc, a company specializing in the manufacturing of superficial radiotherapy systems for treating oncological and non-oncological skin conditions, reported substantial growth in both revenue and net income.
Company Overview
Sensus Healthcare Inc is engaged in manufacturing superficial radiotherapy systems used for treating skin conditions such as basal cell and squamous cell skin cancers, as well as keloids. The company's product lineup includes the SRT-100, SRT-100 Vision, and a sentinel service program. The majority of its revenue is generated from customers in the United States.
Q2 2024 Financial Performance
For the second quarter of 2024, Sensus Healthcare Inc reported revenues of $9.2 million, a significant increase from $4.5 million in the same period of 2023. This 104% growth was primarily driven by a higher number of SRT systems sold to a large customer.
Cost of sales for Q2 2024 was $3.8 million, compared to $1.9 million in Q2 2023. Gross profit for the quarter was $5.4 million, or 58.7% of revenues, up from $2.6 million, or 57.9% of revenues, in the prior-year quarter. The increase in gross profit was primarily driven by the higher number of units sold.
Operating Expenses and Net Income
Selling and marketing expenses decreased to $1.0 million from $1.6 million in Q2 2023, mainly due to lower marketing agency expenses, reduced headcount, and decreased tradeshow costs. General and administrative expenses rose to $1.6 million from $1.3 million, primarily due to higher professional fees and compensation. Research and development expenses increased slightly to $0.9 million from $0.8 million, driven by expenses related to a project to develop a drug delivery system for aesthetic use.
Net income for Q2 2024 was $1.6 million, or $0.10 per diluted share, compared to a net loss of $0.4 million, or $0.02 per share, in Q2 2023. Adjusted EBITDA for the quarter was $2.1 million, compared to negative $1.0 million in the prior-year quarter.
Balance Sheet and Cash Flow
As of June 30, 2024, Sensus Healthcare Inc had cash and cash equivalents of $19.0 million, down from $23.1 million as of December 31, 2023. Accounts receivable increased to $18.3 million from $10.6 million, while inventories rose to $12.8 million from $11.9 million, reflecting preparations for higher expected unit sales in the second half of 2024.
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Revenue | $9.2 million | $4.5 million |
| Cost of Sales | $3.8 million | $1.9 million |
| Gross Profit | $5.4 million | $2.6 million |
| Net Income | $1.6 million | $(0.4) million |
| Adjusted EBITDA | $2.1 million | $(1.0) million |
Management Commentary
"Our sales momentum continued in the second quarter of 2024 with very strong revenue growth over the 2023 second quarter, along with positive net income and positive Adjusted EBITDA," said Joe Sardano, Chairman and Chief Executive Officer of Sensus Healthcare. "Our Fair Deal Agreement is off to a strong start with 15 agreements signed since our launch at the American Academy of Dermatology meeting in March. We expect to be generating recurring revenue from these SRT-100 Vision (IG-SRT) systems in 2025."
Six-Month Financial Results
For the first half of 2024, Sensus Healthcare Inc reported revenues of $20.0 million, up from $8.0 million in the first half of 2023. Net income for the first half of 2024 was $3.9 million, or $0.24 per diluted share, compared to a net loss of $2.3 million, or $0.14 per share, in the first half of 2023. Adjusted EBITDA for the first half of 2024 was $5.1 million, compared to negative $3.7 million in the prior-year period.
Conclusion
Sensus Healthcare Inc's strong financial performance in Q2 2024, marked by significant revenue growth and a return to profitability, underscores the company's successful execution of its strategic initiatives. The positive momentum in sales, particularly with the Fair Deal Agreement, and the expansion into international markets, positions the company well for continued growth. Investors and stakeholders will be keenly watching how these developments unfold in the coming quarters.
Explore the complete 8-K earnings release (here) from Sensus Healthcare Inc for further details.
