Apyx Medical Corporation Reports Third Quarter 2024 Financial Results; Updates Full Year 2024 Financial Outlook and Introduces Full Year 2025 Financial Outlook
Strengthened balance sheet with a common stock registered direct offering with gross proceeds of approximately $7.0 million; and amended revenue covenants for the Company's credit agreement with Perceptive
Announces cost savings restructuring program to better focus, optimize and streamline operations, including a nearly 25% reduction in U.S. workforce
Announces 9% overall growth in single-use handpiece revenue and 15% growth in the U.S.
Management to host a conference call today at 8:00 a.m. ET
CLEARWATER, Fla., Nov. 08, 2024 (GLOBE NEWSWIRE) -- Apyx Medical Corporation (NASDAQ:APYX) ("Apyx Medical;" the "Company"), the manufacturer of a proprietary helium plasma and radiofrequency platform technology marketed and sold as Renuvion®, today reported the financial results for its third quarter ended September 30, 2024, updated its financial expectations for the full year ending December 31, 2024, and introduced its financial expectations for the full year ending December 31, 2025.
Recent Financial and Operating Highlights:
Total revenue of $11.5 million, a decrease of 4% year-over-year, including:
Advanced Energy revenue of $9.3 million, a decrease of 6% year-over-year, and
OEM revenue of $2.2 million, an increase of 3% year-over-year.
Net loss attributable to stockholders of $4.7 million, an increase of $0.1 million, or 2%, year-over-year.
Adjusted EBITDA loss of $2.4 million, a decrease of $0.6 million, or 20%, year-over-year.
Closed a $7.0 million registered direct offering with a healthcare-focused fund.
Amended the Company's credit agreement with Perceptive Credit Holdings IV, LP ("Perceptive") to significantly reduce the trailing twelve-month Advanced Energy revenue covenants. Additionally, a maximum operating expense covenant of $40.0 million and $45.0 million in for 2025 and 2026, respectively was added. Associated with the amendment, Apyx issued 150,000 shares of common stock to Perceptive Advisors.
Implemented a cost saving restructuring program that included an organizational reduction in force to better focus, optimize and streamline operations. Under the organizational changes, the Company will reduce its U,S. workforce by nearly 25%. The annualized future cost savings from the reduction in force is estimated to be approximately $4.3 million. The Company will incur pre-tax charges of approximately $0.6 million in the fourth quarter of 2024, mostly represented as one-time severance expenditures and other employee termination benefits. Identified over $4.0 million of additional cost savings and anticipate operating expenses to be below $40 million in 2025.
Right sized the Company's board of directors to five members down from eight.
"While our Advanced Energy sales decreased year-over-year, we were pleased with the continued resiliency of our disposable handpiece, which grew 9% overall and 15% in the U.S. Looking ahead, we expect the strength of our disposable handpiece sales to continue, and expect to ship a total of nearly 90,000 units for the full year 2024," said Charlie Goodwin, President and Chief Executive Officer. "It has been a busy few months for us, as we initiated a cost reduction program, raised $7.0 million to strengthen the balance sheet, and amended the covenants with our lender and partner, which we believe will extend our cash runway and allow us to execute our growth strategy."
Mr. Goodwin continued, "In addition, the Apyx team is in the final stages of developing the Ayon body contouring system, a new product that we believe will dominate the aesthetic surgical space. This system is an all-in-one platform that seamlessly integrates Renuvion, ultrasound-assisted liposuction, power-assisted liposuction, infiltration, aspiration, electrocoagulation and fat transfer into a single, streamlined device. We currently plan to submit a 510(k) for Ayon to the FDA no later than the end of the first quarter of 2025, and, pending approval, launch the system in the back half of 2025."
In addition, as part of the cost restructuring, Todd Hornsby, Executive Vice President of Sales and Marketing, will be leaving the Company effective immediately.," stated Mr. Goodwin. "I will be stepping into that role, in addition to my other duties. In order to free up my time, I am pleased to announce Shawn Roman has been promoted from his current position of Vice President Research and Development to Chief Operating Officer. Shawn has been with the Company since 2015 and is well qualified for his new role. "
The following tables present revenue by reportable segment and geography:
Three Months Ended
Nine Months Ended
September 30,
September 30,
(In thousands)
2024
2023
$ Change
% Change
2024
2023
$ Change
% Change
Advanced Energy
$
9,288
$
9,836
$
(548
)
(5.6
)%
$
26,507
$
31,248
$
(4,741
)
(15.2
)%
OEM
2,199
2,140
59
2.8
%
7,373
6,439
934
14.5
%
Total
$
11,487
$
11,976
$
(489
)
(4.1
)%
$
33,880
$
37,687
$
(3,807
)
(10.1
)%
Three Months Ended
Nine Months Ended
September 30,
September 30,
(In thousands)
2024
2023
$ Change
% Change
2024
2023
$ Change
% Change
Domestic
$
7,793
$
8,652
$
(859
)
(9.9
)%
$
23,459
$
27,660
$
(4,201
)
(15.2
)%
International
3,694
3,324
370
11.1
%
10,421
10,027
394
3.9
%
Total
$
11,487
$
11,976
$
(489
)
(4.1
)%
$
33,880
$
37,687
$
(3,807
)
(10.1
)%
Third Quarter 2024 Results:
Total revenue for the three months ...
