EDAP TMS (NASDAQ:EDAP)
Historical Stock Chart
From Jul 2019 to Jul 2024
EDAP TMS S.A. Reports 2004 First Quarter Financial Results
- Both Operating Divisions Post Operating Profits for the First Time -
VAULX-EN-VELIN, France, May 12 /PRNewswire-FirstCall/ -- EDAP TMS S.A. , a
global leader in the development, marketing and distribution of a portfolio of
minimally-invasive medical devices for the treatment of urological diseases,
today reported financial results for the first quarter ended March 31, 2004.
The Company's revenues for the first quarter of 2004 were EUR 5.8 million
compared to EUR 4.4 million in the same quarter of 2003, a 30% increase from
the prior year same period. This double-digit increase in revenues tracked to
the Company's budgeted expectations for the quarter. Revenues included a higher
total number of machines sold in the first quarter of 2004 versus the first
quarter of 2003 in both of the Company's operating divisions.
The Company's gross margins were 37% for the first quarter of 2004 versus 36%
for the first quarter of 2003 and 17% for the fourth quarter of 2003. The
strong Euro continues to impact margins, but during the quarter the Euro
remained constant and did not strengthen further. However, should the Euro
continue to strengthen it would have an adverse affect on future gross margins.
The Company's operating expenses in the first quarter of 2004 were EUR 2.2
million versus EUR 2.8 million in 2003. The decrease of 21% reflects the
savings generated as a result of the restructuring completed at the end of
2003.
While both divisions generated a cumulative operating profit of EUR 164
thousand in the first quarter, the Company's consolidated operating loss was
EUR 0.2 million in the first quarter of 2004 compared to EUR 1.2 million loss
in the first quarter of 2003. The EUR 1.0 million improvement in operating
loss met the Company's budgeted expectations for the first quarter.
The Company was close to breakeven with a consolidated net loss of EUR 13
thousand in the first quarter of 2004 compared to EUR 1.4 million in the first
quarter of 2003 and further shows that the Company is on track with its 2004
expectations.
CONSOLIDATED COMPANY
The overall performance of the Company in the first quarter 2004 shows that the
restructuring plan put into place at the end of 2003 has begun to provide
immediate results. The most tangible example of this is the 21% reduction in
operating expenses as a direct result of the restructuring. Additionally, the
increased focus by the Company in its core markets proved beneficial with the
30% increase in revenues. This however is only the beginning of the process
and there are still challenges and risks that lay ahead. The Company is
pleased with the progress thus far and is looking to improve upon the results
in the future.
Cash management remains a high priority for the management of the Company and
cash balances remain strong. The Company ended the quarter with EUR 9.3
million cash on hand; the decrease from the previous quarter is from cash used
in operations and from the various severance payments made to former employees
during the quarter. As the Company has previously announced, there are several
severance payments still to be made with the following schedule: EUR 0.7
million in Q2 and EUR 0.3 million in the balance of the year. These future
payments will affect the timing of the Company's turn to cash-flow positive,
but the Company reiterates its belief that it will not drop below EUR 7.0
million cash on hand during 2004.
UROLOGICAL DEVICES AND SERVICES ("UDS") DIVISION
The UDS division returned to operating profitability during the quarter due, in
large part, to the good start in the implementation of its strategy. Revenues
increased significantly with nine lithotripsy units sold. This continued
strength is indicative of the strong demand for the UDS division's products in
each of its key markets and the first sale of a lithotripsy unit to
HealthTronics in the United States. The UDS division ended the quarter with a
backlog of five machines that are expected to be delivered over the course of
the next quarter. Additionally, the UDS division's efforts in reducing
manufacturing costs is beginning to bear fruit with a stabilized gross margin
even in light of the continued strength of the Euro.
The first quarter for the UDS division further validated the strategy of
aggressively taking market share, with competitive pricing, while exercising
continued strong control over the division's cost structure.
HIGH INTENSITY FOCUSED ULTRASOUND ("HIFU") DIVISION
The HIFU division reached a historical milestone in the first quarter of 2004
by achieving its first ever operating profit. Revenues grew significantly in
the quarter with three units sold and the addition of eight new sites with
access to HIFU technology, which brings the total number of sites with access
to HIFU in Europe to 50. The quarter clearly confirmed the strong interest in
HIFU with Ablatherm(R) from both patients and physicians in Europe.
The restructuring generated clear savings in SG&A thus bringing the costs of
the HIFU division more in line with revenue expectations.
In February, the Company announced an agreement with HealthTronics Surgical
Services, Inc. ("HealthTronics") granting HealthTronics the right to begin
clinical trials with the Ablatherm in order to pursue marketing approval for
the device, from the Food and Drug Administration ("FDA"), in the United
States. HealthTronics informs the Company that they anticipate that the
clinical trails and application process could take from three to five years.
HealthTronics is currently in the early planning stages in advance of beginning
clinical trails, which could begin by the end of the year.
Hugues de Bantel, President of the Company's two operating divisions, EDAP S.A.
and TMS S.A., commented, "The performance of the Company during the first
quarter clearly confirms that both operating divisions are on track with the
commitments made at the end of 2003. Strong revenue growth and operating
profit, in the operating divisions, in the first quarter post restructuring is
very encouraging. The overall progress of the business, in the first quarter,
met our expectations. This is the result of a combination of factors including
the continuous implementation of the strategy to reduce the cost structure of
the Company, increase and strengthen the acceptance of the Company's
technologies and a huge commitment from our team."
EDAP TMS S.A. is the global leader in the development, production, marketing
and distribution of a portfolio of minimally invasive medical devices primarily
for the treatment of urological diseases. The Company currently develops and
markets devices for the minimally invasive treatment of localized prostate
cancer, using High Intensity Focused Ultrasound (HIFU), through its EDAP SA
subsidiary; it is also developing this technology for the treatment of certain
other types of tumors. EDAP TMS S.A. also produces and commercializes medical
equipment for treatment of urinary tract stones using Extra-corporeal Shockwave
Lithotripsy (ESWL), via its TMS SA subsidiary. In addition, the Company markets
in Japan and Italy devices for the non-surgical treatment of benign Prostate
Hyperplasia (BPH) using Microwave Thermotherapy (TUMT). For more information,
in the U.S., contact EDAP Technomed Inc., the Company's U.S. subsidiary located
in Atlanta, GA, by phone at (770) 446-9950. For additional information on the
Company, please see the Company's web site at: http://www.edap-tms.com/.
This press release contains, in addition to historical information,
forward-looking statements that involve risks and uncertainties. These include
statements regarding the Company's growth and expansion plans. Such statements
are based on management's current expectations and are subject to a number of
uncertainties and risks that could cause actual results to differ materially
from those described in the forward-looking statements. Factors that may cause
such a difference include, but are not limited to, those described in the
Company's filings with the Securities and Exchange Commission.
EDAP TMS S.A.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(Amounts in thousands of Euro's and U.S. Dollars, except per share data)
Three Months Ended: Three Months Ended:
March 31, March 31, March 31, March 31,
2004 2003 2004 2003
Euros Euros $US $US
Net sales of medical equipment 3,190 1,873 3,954 2,024
Net sales of spare parts,
supplies and Services 2,431 2,481 3,014 2,681
NET SALES 5,621 4,354 6,968 4,705
Other revenues 152 80 188 86
TOTAL REVENUES 5,773 4,434 7,156 4,791
Cost of sales (3,719) (2,849) (4,610) (3,079)
GROSS PROFIT 2,054 1,585 2,546 1,712
Research & development expenses (391) (732) (484) (791)
S, G & A expenses (1,854) (2,093) (2,299) (2,262)
Total operating expenses (2,245) (2,825) (2,783) (3,053)
OPERATING PROFIT (LOSS) (191) (1,240) (237) (1,341)
Interest (expense) income, net (28) 12 (34) 13
Currency exchange
gains (loss), net 272 (184) 337 (199)
Other income (loss), net (3) (57) (4) (62)
INCOME (LOSS) BEFORE TAXES
AND MINORITY INTEREST 50 (1,469) 62 (1,589)
Income tax (expense) credit (63) 36 (78) 39
NET INCOME (LOSS) (13) (1,433) (16) (1,550)
Earning per share - Basic 0.00 (0.18) 0.00 (0.20)
Average number of shares
used in computation of EPS 7,782 7,782 7,782 7,782
Earning per share - Diluted 0.00 (0.18) 0.00 (0.20)
Average number of shares
used in computation of EPS 7,823 7,821 7,823 7,821
NOTE: Translated for convenience of the reader to U.S. dollars at the
2004 average three months noon buying rate of 1 Euro = 1.2395 USD, and
2003 average three months noon buying rate of 1 Euro = 1.0806 USD.
EDAP TMS S.A.
CONSOLIDATED BALANCE SHEETS HIGHLIGHTS (UNAUDITED)
(Amounts in thousands of Euro's and U.S. Dollars)
March 31, December 31, March 31, December 31,
2004 2003 2004 2003
Euros Euros $US $US
Cash, cash equivalents and
short term investments 9,342 10,429 11,483 13,137
Total current assets 26,140 25,870 32,132 32,588
Total current liabilities 10,571 10,819 12,994 13,629
Shareholders' Equity 19,027 18,961 23,388 23,885
NOTE: Translated for convenience of the reader to U.S. dollars at the
noon buying rate of 1 Euro = 1.2292 USD, on March 31, 2004 and at the
noon buying rate of 1 Euro = 1.2597 USD, on December 31, 2003.
EDAP TMS S.A.
CONDENSED STATEMENTS OF OPERATIONS BY DIVISION
THREE MONTHS ENDED MARCH 31, 2004
(Amounts in thousands of Euro's )
Total
EDAP S.A. TMS S.A. EDAP TMS Consolida- After
HIFU UDS HQ tion Consolida-
Division Division Impact tion
Net sales of
medical devices 1,191 2,448 - (449) 3,190
Net sales of
spare parts,
supplies & services 635 1,970 - (174) 2,431
Other revenues 14 138 - 152
TOTAL REVENUES 1,840 4,556 - (623) 5,773
GROSS PROFIT 730 40% 1,324 30% 0 0 2,054 37%
Research &
Development (205) (186) - - (391)
Total SG&A plus
depreciation (453) (1,046) (355) - (1,854)
OPERATING
PROFIT (LOSS) 72 92 (355) 0 (191)
CONTACT: Philippe Chauveau / Blandine Confort
33.4.72.15.31.50
Ian Vawter - EDAP Technomed Inc.
1.770.446.9950
DATASOURCE: EDAP TMS S.A.
CONTACT: Philippe Chauveau or Blandine Confort, both of EDAP TMS S.A.,
+33-4-72-15-31-50; or Ian Vawter of EDAP Technomed Inc., +1-770-446-9950
Web site: http://www.edap-tms.com/