EDAP TMS S.A.
Aug 25, 2016

EDAP Reports 69% Growth in HIFU Revenues and Operating Profit for First Half 2016

LYON, France, Aug. 25, 2016 (GLOBE NEWSWIRE) -- EDAP TMS SA (Nasdaq:EDAP), the global leader in therapeutic ultrasound, announced today financial results for the second quarter and six months ended June 30, 2016, and provided an update on strategic and operational accomplishments. 

Marc Oczachowski, EDAP's Chief Executive Officer, stated, "EDAP has made steady progress in the first half of the year. The FDA clearance of Ablatherm Robotic HIFU in late 2015 has resulted in strong system sales, while the growth in treatment driven revenues continued as a result of the traction and momentum of HIFU globally."

"The solid performance of the HIFU division, in which revenues increased 69% over the first half of 2015, is clear evidence that our market penetration strategy is working and supports the expansion and growth of our global HIFU business. We continue penetrating the U.S. market with our strategy of targeting large and recognized institutions directly, while also providing access to the entire urology community by partnering with mobilizers and service providers.

In April, we submitted a 510(k) application for our next generation Focal One® HIFU system with the FDA. We are closely working on the file through direct interaction with the agency." 

Mr. Oczachowski added, "We are pleased with our business development during the first half of 2016, and with the great traction we are achieving in our HIFU division with a significant increase in our project pipeline, particularly in the U.S. Thanks to this continued growth, the company generated an operating profit for the first half of the year and has a solid cash position that makes EDAP well-funded to further drive its growth and expansion initiatives."

Second Quarter 2016 Results

Total revenue for the second quarter 2016 was EUR 8.2 million (USD 9.2 million), a 4.6% year-over-year increase compared to EUR 7.8 million (USD 8.7 million) for the second quarter 2015.

Total revenue in the HIFU business for this quarter was EUR 3.4 million (USD 3.8 million) compared to EUR 2.3 million (USD 2.6 million) for the second quarter 2015. HIFU revenue included the sale of three Ablatherm systems and one Focal One.

For the three months ended June 30, 2016, total revenue for the Lithotripsy division was EUR 4.8 million (USD 5.4 million), compared to EUR 5.5 million (USD 6.1 million), during the year ago period.

Gross profit for the second quarter 2016 was EUR 3.5 million (USD 3.9 million), compared to EUR 3.3 million (USD 3.7 million) for the year ago period. Gross profit margin on net sales was 42.3% in the second quarter of 2016, compared to 42.5% in the year ago period.

Operating expenses were EUR 3.8 million (USD 4.3 million) for the second quarter 2016, compared to EUR 3.6 million (USD 3.9 million) for the same period in 2015.

Operating loss for the second quarter 2016 was EUR 0.3 million (USD 0.4 million), compared with EUR 0.2 million (USD 0.2 million) in the second quarter of 2015.

Net income for the second quarter 2016 was EUR 2.5 million (USD 2.8 million), or EUR 0.08 per diluted share, as compared to net income of EUR 0.5 million (USD 0.5 million), or EUR 0.02 per diluted share, in the year ago period. Net income in the second quarter of 2016 included non-cash interest income of EUR 2.4 million to adjust the accounting fair value of the outstanding warrants.

First Six Months 2016 Results

Total revenue for the first half of 2016 was EUR 16.9 million (USD 18.9 million), up 20.4% compared to EUR 14.1 million (USD 15.6 million) for the first half of 2015.

Total revenue in the HIFU division for the first six months 2016 was EUR 6.7 million (USD 7.4 million) compared to EUR 3.9 million (USD 4.4 million) for the six months ended June 30, 2015. HIFU revenue included the sale of six Ablatherm systems and two Focal One.

For the six months ended June 30, 2016, total revenue for the Lithotripsy division was EUR 10.2 million (USD 11.4 million), compared to EUR 10.1 million (USD 11.2 million), during the year ago period. 

Gross profit for the first half of 2016 was EUR 7.8 million (USD 8.6 million) and gross profit margin was 45.8%, compared to 42.1% in the year ago period.

Operating expenses were EUR 7.4 million (USD 8.2 million) for the first six months of 2016, compared to EUR 6.8 million (USD 7.5 million) for the same period in 2015.

The Company recorded an operating profit the first half of 2016 of EUR 0.4 million (USD 0.4 million), compared with an operating loss of EUR 0.8 million (USD 0.9 million) in the first six months of 2015.

Net income for the first half of 2016 was EUR 3.9 million (USD 4.3 million), or EUR 0.13 per diluted share, as compared to a net loss of EUR 2.0 million (USD 2.2 million), or EUR 0.08 per diluted share, in the first half of 2015. Net income in the first half of 2016 included a non-cash interest income of EUR 2.9 million to adjust the accounting fair value of the outstanding warrants.

At June 30, 2016, cash and cash equivalents, including short-term treasury investments, were EUR 21.9 million (USD 24.2 million).

Conference Call
EDAP will hold a conference call on Thursday, August 25th, 2016 at 8:30 a.m. EDT to discuss the results and provide an update on recent business developments. The dial-in numbers are 1-888-348-6419 in the U.S., and 1-412-902-4235 for international callers.  The conference ID number for both is 10091258. A live webcast of the conference call will be available online from the investor relations page of the Company's corporate website at www.edap-tms.com.

After the live event, the webcast will remain available on EDAP's website, www.edap-tms.com, through September 27, 2016.  In addition, a dial-in replay of the call will be available.  The replay dial-in numbers are 1-877-870-5176 for domestic callers and 1-858-384-5517 for international callers.  Please use event passcode 10091258.

About EDAP TMS SA

EDAP TMS SA markets today Ablatherm® for high-intensity focused ultrasound (HIFU) for prostate tissue ablation in the U.S. and for treatment of localized prostate cancer in the rest of the world. HIFU treatment is shown to be a minimally invasive and effective option for prostatic tissue ablation with a low occurrence of side effects. Ablatherm-HIFU is generally recommended for patients with localized prostate cancer (stages T1-T2) who are not candidates for surgery or who prefer an alternative option, or for patients who failed radiotherapy treatment. Ablatherm-HIFU is approved for commercial distribution in Europe and some other countries including Mexico and Canada, and has received 510(k) clearance by the U.S. FDA. The Company also markets an innovative robot-assisted HIFU device, the Focal One®, dedicated to focal therapy of prostate cancer. Focal One® is CE marked but is not FDA approved. The Company also develops its HIFU technology for the potential treatment of certain other types of tumors. EDAP TMS SA also produces and distributes medical equipment (the Sonolith® lithotripters' range) for the treatment of urinary tract stones using extra-corporeal shockwave lithotripsy (ESWL) in most countries including Canada and the U.S. For more information on the Company, please visit http://www.edap-tms.com, and http://www.hifu-planet.com.

Forward-Looking Statements

In addition to historical information, this press release may contain forward-looking statements. Such statements are based on management's current expectations and are subject to a number of risks and uncertainties, including matters not yet known to us or not currently considered material by us, and there can be no assurance that anticipated events will occur or that the objectives set out will actually be achieved. Important factors that could cause actual results to differ materially from the results anticipated in the forward-looking statements include, among others, the clinical status and market acceptance of our HIFU devices and the continued market potential for our lithotripsy device. Factors that may cause such a difference also may include, but are not limited to, those described in the Company's filings with the Securities and Exchange Commission and in particular, in the sections "Cautionary Statement on Forward-Looking Information" and "Risk Factors" in the Company's Annual Report on Form 20-F.

EDAP TMS S.A. 
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) 
(Amounts in thousands of Euros and U.S. Dollars, except per share data) 
 
 Three Months Ended:   Three Months Ended: 
  June 30,   June 30,   June 30,   June 30,  
  2016  2015  2016  2015 
   Euros  Euros  $US  $US 
Sales of goods 5,262  5,357  5,896  5,948 
Net Sales of RPP and Leases 1,316  1,090  1,474  1,210 
Sales of spare parts and            
Services  1,611  1,388  1,805  1,541 
TOTAL NET SALES 8,189  7,834  9,174  8,699 
Other revenues 8  2  9  2 
TOTAL REVENUES 8,197  7,836  9,183  8,701 
Cost of goods (2,768 (2,996 (3,101) (3,327
Cost of RPP and Leases (805 (648 (902 (720
Cost of spare parts & services (1,162 (861 (1,302 (956
Cost of sales (4,736 (4,505 (5,305 (5,002
             
GROSS PROFIT 3,461  3,331  3,878  3,699 
Research & development expenses (887 (739 (993 (820
Marketing & Sales expenses  (2,147 (1,859 (2,406 (2,064
G & A expenses  (772 (950 (865 (1,055
Total operating expenses (3,806 (3,548 (4,264 (3,940
             
OPERATING PROFIT (LOSS) (345 (217 (386 (241
Interest (expense) income, net 2,412  1,005   2,702  1,116 
Currency exchange gains (loss), net 483  (262 541   (291
Other income (loss), net -  -  -  - 
              
INCOME (LOSS) BEFORE TAXES AND MINORITY INTEREST 2,550  526  2,857  584 
Income tax (expense) credit (52 (39 (58 (43
 
NET INCOME (LOSS)  2,498  487   2,799  541 
Earning per share - Basic 0.09  0.02  0.109  0.02 
             
Average number of shares used in computation of Basic EPS 28,288,307  24,958,174  28,288,307  24,958,174 
             
Earning per share - Diluted 0.08  0.02  0.09  0.02 
             
Average number of shares used in computation of Diluted EPS 29,826,117  27,016,460  29,826,117  27,016,460 
           
NOTE:  Translated for convenience of the reader to U.S. dollars at the 2016 average three months' noon buying rate of 1 Euro =
1.1203 USD, and 2015 average three months' noon buying rate of 1 Euro = 1.1104 USD.

 



EDAP TMS S.A. 
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) 
(Amounts in thousands of Euros and U.S. Dollars, except per share data) 
 
 Six Months Ended:  Six Months Ended: 
  June 30,    June 30,   June 30,   June 30, 
  2016  2015  2016  2015 
  Euros   Euros  $US  $US 
Sales of goods  11,261  9,103  12,518  10,095 
Net Sales of RPP and Leases 2,578  2,119  2,865 2,350
Sales of spare parts and            
Services  3,078  2,830  3,421  3,138 
TOTAL NET SALES 16,917  14,052   18,805  15,584 
Other revenues 8  2  9  2 
TOTAL REVENUES 16,925  14,054  18,814  15,586 
Cost of goods (5,561 (5,042 (6,182 (5,591
Cost of RPP and Leases (1,513 (1,292 (1,681 (1,433
Cost of spare parts & services (2,097 (1,809 (2,332 (2,006
Cost of sales (9,171 (8,143 (10,195 (9,030
             
GROSS PROFIT 7,753  5,911   8,619  6,556 
Research & development expenses (1,701 (1,512 (1,890 (1,677
Marketing & Sales expenses  (4,013 (3,408 (4,460 (3,780
G & A expenses  (1,652 (1,830 (1,836 (2,030
Total operating expenses (7,365 (6,750 (8,187 (7,486
             
OPERATING PROFIT (LOSS) 388  (839 432  (931
Interest (expense) income, net 2,891  (1,344 3,213  (1,491
Currency exchange gains (loss), net  671  303  746  336 
Other income (loss), net -  (3 -  (3
              
INCOME (LOSS) BEFORE TAXES AND MINORITY INTEREST 3,950  (1,884)  4,391  (2,089
Income tax (expense) credit (91 (69 (101 (77)
 
NET INCOME (LOSS)  3,859  (1,953 4,289  (2,166
             
Earning per share - Basic 0.14  (0.08 0.16  (0.09
             
Average number of shares used in computation of Basic EPS 26,844,696  24,926,627  26,844,696  24,926,627 
             
Earning per share - Diluted 0.13  (0.08 0.15  (0.09
             
Average number of shares used in computation of Diluted EPS 28,615,172  24,926,627  28,615,172  24,926,627 
             
NOTE:  Translated for convenience of the reader to U.S. dollars at the 2016 average six months' noon buying rate of 1 Euro =
1.1116 USD, and 2015 average six months' noon buying rate of 1 Euro = 1. 1090 USD.

 



EDAP TMS S.A. 
CONSOLIDATED BALANCE SHEETS HIGHLIGHTS (Amounts in thousands of Euros and U.S. Dollars) 
 
  June 30,  Mar.  31,  June 30,  Mar.  31,  
  2016 2016 2016 2016 
   Euros Euros $US $US 
 
Cash, cash equivalents and short term investments  21,940 14,533 24,203 16,552 
Total current assets 40,963 33,019  45,188 37,607 
Total current liabilities 14,817 16,529 16,345 18,826 
Shareholders' Equity  24,358 15,901 26,870 18,111 
 
NOTE:  Translated for convenience of the reader to U.S. dollars at the noon buying rate of 1 Euro = 1.1031 USD, on June 30, 2016
and at the noon buying rate of 1 Euro = 1.1390 USD, on March 31, 2016.
 

 



EDAP TMS S.A.  
CONDENSED STATEMENTS OF OPERATIONS BY DIVISION 
SIX MONTHS ENDED JUNE 30, 2016 
(Amounts in thousands of Euros) 
                
 HIFU Division  UDS Division  FDA Trials  Corporate   Total After
Consolidation
  
                       
Sales of goods4,536    6,725          11,261    
Sales of RPPs & Leases1,811    766          2,578    
Sales of spare parts & services328    2,750           3,078    
TOTAL NET SALES6,676    10,241          16,917    
                      
Other revenues6    2          8    
                      
TOTAL REVENUES6,682    10,243          16,925    
                        
GROSS PROFIT4,081 61% 3,672 36%       7,753 46% 
 (% of Total Revenues)                     
                       
Research & Development(1,048   (653  -      (1,701)   
Total SG&A plus depreciation(1,979   (2,996     (689  (5,664)   
           -           
OPERATING PROFIT (LOSS)1,054    23      (689  388    
                      

 

 

 

Contact:

Blandine Confort

Investor Relations / Legal Affairs

EDAP TMS SA

+33 4 72 15 31 72

bconfort@edap-tms.com





Investors:

Lee Roth

The Ruth Group

646-536-7012

lroth@theruthgroup.com

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Source: EDAP TMS SA

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