EDAP TMS S.A.
Nov 17, 2016

EDAP Achieves 79% Growth in HIFU Revenue for First Nine Months of 2016

Highlights at the end of September 30, 2016:

LYON, France, Nov. 17, 2016 (GLOBE NEWSWIRE) -- EDAP TMS SA (Nasdaq:EDAP), the global leader in therapeutic ultrasound, announced today financial results for the third quarter and nine months ended September 30, 2016, and provided an update on strategic and operational accomplishments. 

Marc Oczachowski, EDAP's Chief Executive Officer, stated, "We performed extremely well through the first nine months of 2016, with total revenues up 22% versus a year ago and, more importantly, HIFU division revenues up 79% from the year-ago period."

"As recently announced, we achieved new installations in prestigious academic centers in the US such as Duke University Hospital, and we continue to actively work in building a strong academic and scientific presence in the US. This is part of our strategy to penetrate the US market with HIFU on a strong clinical basis with leading institutions around the country."

Mr. Oczachowski concluded, "Recent publications in both the New England Journal of Medicine and European Urology are providing extremely encouraging indications that further position HIFU as a modern standard of care therapy for the treatment of prostate cancer. We will be pleased to further discuss these excellent results during our quarterly conference call on Thursday the 17th of November."

Third Quarter 2016 Results

Total revenue for the third quarter 2016 was EUR 8.0 million (USD 8.9 million), a 24.7% year-over-year increase compared to EUR 6.4 million (USD 7.1 million) for the third quarter 2015.

Total revenue in the HIFU business for this quarter was EUR 2.5 million (USD 2.8 million) compared to EUR 1.2 million (USD 1.3 million) for the third quarter 2015.

For the three months ended September 30, 2016, total revenue for the Lithotripsy division was EUR 5.4 million (USD 6.1 million), compared to EUR 5.2 million (USD 5.8 million), during the year ago period.

Gross profit for the third quarter 2016 was EUR 3.5 million (USD 3.9 million), compared to EUR 2.6 million (USD 2.9 million) for the year ago period. Gross profit margin on net sales was 43.2% in the third quarter of 2016, compared to 40.2% in the year ago period.

Operating expenses were EUR 3.8 million (USD 4.2 million) for the third quarter 2016, compared to EUR 2.8 million (USD 3.2 million) for the same period in 2015.

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

Net income for the third quarter 2016 was EUR 1.3 million (USD 1.4 million), or EUR 0.04 per diluted share, as compared to net loss of EUR 4.8 million (USD 5.4 million), or EUR 0.19 per diluted share, in the year ago period. Net income in the third quarter of 2016 included non-cash interest income of EUR 1.5 million to adjust the accounting fair value of the outstanding warrants.

First Nine Months 2016 Results

Total revenue for the first nine months of 2016 was EUR 24.9 million (USD 27.8 million), up 21.8% compared to EUR 20.5 million (USD 22.7 million) for the first nine months of 2015.

Gross profit for the first nine months of 2016 was EUR 11.2 million (USD 12.5 million) and gross profit margin on net sales was 45.0%, compared to 41.5 % in the year ago period.

The Company recorded an operating profit for the first nine months of 2016 of EUR 0.1 million (USD 0.1 million), compared with an operating loss of EUR 1.1 million (USD 1.2 million) in the first nine months of 2015.

Net income for the first nine months of 2016 was EUR 5.1 million (USD 5.7 million), or EUR 0.19 per diluted share, as compared to a net loss of EUR 6.8 million (USD 7.5 million), or EUR 0.27 per diluted share, in the first nine months of 2015. Net loss in the first nine months of 2016 included non-cash interest income of EUR 4.4 million to adjust the accounting fair value of the outstanding warrants.

At September 30, 2016, cash and cash equivalents, including short-term treasury investments, were EUR 18.8 million (USD 21.2 million).

Conference Call

EDAP will hold a conference call on Thursday, November 17th, 2016 at 8:30 a.m. EST 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 10095751. 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 December 19, 2016.  In addition, a dial-in replay of the call will be available.  The replay dial-in numbers are 1-844-512-2921 for domestic callers and 1-412-317-6671 for international callers.  Please use event passcode 10095751.

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:
 September 30
2016 
Euros
 September 30
2015
Euros
 September 30
2016 
$US
 September 30
2015 
$US
Sales of goods 5,218   3,754   5,836   4,178 
Net Sales of RPP and Leases 1,098   1,138   1,228   1,266 
Sales of spare parts and Services  1,674   1,514   1,873   1,685 
TOTAL NET SALES 7,990   6,406   8,936   7,129 
Other revenues 2   1   2   1 
TOTAL REVENUES 7,992   6,407   8,938   7,130 
Cost of goods (3,099)  (2,262)  (3,466)  (2,517)
Cost of RPP and Leases  (459)  (648)  (514)   (721)
Cost of spare parts & services (979)   (921)  (1,095)  (1,025)
Cost of sales (4,537)  (3,830)  (5,075)   (4,262)
        
GROSS PROFIT 3,454   2,578   3,864   2,868 
Research & development expenses (1,032)  (612)  (1,154)  (682 )
Marketing & Sales expenses (2,028)  (1,518)  (2,269)  (1,689)
G & A expenses (725)  (704)  (811)  (783)
Total operating expenses (3,786)  (2,834)  (4,234)  (3,154)
        
OPERATING PROFIT (LOSS) (332 )  (257)  (371)   (286)
Interest (expense) income, net 1,502   (4,460)  1,680   (4,963)
Currency exchange gains (loss), net 130   (80)  145   (89)
Other income (loss), net -   (2)  -   (2)
         
INCOME (LOSS) BEFORE TAXES AND MINORITY INTEREST 1,301   (4,798)  1,455   (5,340)
Income tax (expense) credit (40)  (31)  (44)  (35)
        
NET INCOME (LOSS) 1,261    (4,830)  1,411   (5,375)
Earnings per share - Basic 0.04   (0.19)  0.05   (0.22)
Average number of shares used in computation of Basic EPS 28,727,616   24,972,752   28,727,616   24,972,752 
Earnings per share - Diluted 0.04   (0.19)  0.05   (0.22)
Average number of shares used in computation of Diluted EPS 30,251,966   24,972,752   30,251,966   24,972,752 
        

NOTE: Translated for convenience of the reader to U.S. dollars at the 2016 average three months' noon buying rate of 1 Euro = 1.1184 USD, and 2015 average three months' noon buying rate of 1 Euro = 1.1128 USD.

EDAP TMS S.A. 
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) 
(Amounts in thousands of Euros and U.S. Dollars, except per share data)
        
 Nine Months Ended: Nine Months Ended:
 September 30,
2016 
Euros
 September 30
2015 
Euros
 September 30
2016 
$US
 September 30
2015 
$US
Sales of goods 16,480   12,857   18,356   14,275 
Net Sales of RPP and Leases 3,675   3,258   4,094   3,617 
Sales of spare parts and Services  4,752   4,344   5,293   4,822 
TOTAL NET SALES 24,907   20,458   27,742   22,714 
Other revenues 10   3   11   4 
TOTAL REVENUES 24,917   20,461   27,753   22,717 
Cost of goods (8,660)  (7,303)  (9,646)  (8,108)
Cost of RPP and Leases (1,972)  (1,940)  (2,197)  (2,154)
Cost of spare parts & services (3,076)  (2,730)  (3,427)  (3,030)
Cost of sales (13,709)  (11,972)  (15,269)  (13,292)
        
GROSS PROFIT 11,208   8,489   12,484   9,425 
Research & development expenses (2,733)  (2,125)  (3,044)  (2,359)
Marketing & Sales expenses (6,041)  (4,926)  (6,728)  (5,469)
G & A expenses (2,377)  (2,534)  (2,648)  (2,813)
Total operating expenses (11,151)  (9,585)  (12,420)  (10,641)
        
OPERATING PROFIT (LOSS) 57   (1,096)  63   (1,217)
Interest (expense) income, net 4,393   (5,804)  4,893   (6,444)
Currency exchange gains (loss), net 801   223   892   247 
Other income (loss), net(0)-    (5)  (1)  (5)
        
INCOME (LOSS) BEFORE TAXES AND MINORITY INTEREST 5,250   (6,682)   5,848   (7,419)
Income tax (expense) credit (130)  (100)  (145)  (112)
        
NET INCOME (LOSS) 5,120   (6,783)  5,703   (7,530)
Earnings per share - Basic 0.19   (0.27)  0.21   (0.30)
Average number of shares used in computation of Basic EPS 27,497,107   24,942,689   27,497,107   24,942,689 
Earnings per share - Diluted 0.19    (0.27)  0.21   (0.30)
Average number of shares used in computation of Diluted EPS 29,045,939   24,942,689   29,045,939   24,942,689 
        

NOTE:  Translated for convenience of the reader to U.S. dollars at the 2016 average nine months' noon buying rate of 1 Euro = 1.1138 USD, and 2015 average nine months' noon buying rate of 1 Euro = 1.1102 USD.

EDAP TMS S.A. 
CONSOLIDATED BALANCE SHEETS HIGHLIGHTS
(Amounts in thousands of Euros and U.S. Dollars)
     
 Sept. 30
2016
Euros
June 30,
2016 
Euros
Sept. 30,
2016 
$US
June 30,
2016 
$US
     
Cash, cash equivalents and short term investments18,83721,94021,17024,203
Total current assets40,69440,96345,73445,188
Total current liabilities14,54714,81716,34916,345
Shareholders' Equity25,73924,35828,92626,870
     

NOTE:  Translated for convenience of the reader to U.S. dollars at the noon buying rate of 1 Euro = 1.1238 USD on September 30, 2016 and at the noon buying rate of 1 Euro = 1.1031 USD, on June 30, 2016

EDAP TMS S.A. 
CONDENSED STATEMENTS OF OPERATIONS BY DIVISION 
NINE MONTHS ENDED SEPTEMBER 30, 2016 
(Amounts in thousands of Euros)
           
 
HIFU Division
 
UDS Division
 
FDA
 
Corporate
 Total After
Consolidation
 
           
Sales of goods  6,047   10,433       16,480  
Sales of RPPs & Leases 2,633   1,042        3,675  
Sales of spare parts & services 543   4,209       4,752  
TOTAL NET SALES  9,223   15,684       24,907  
           
Other revenues 6   4       10  
           
TOTAL REVENUES 9,229   15,688       24,917  
            
GROSS PROFIT (% of Total Revenues) 5,337  58% 5,871  37%      11,208  45%
           
Research & Development (1,781)  (952) -  -   (2,733) 
Total SG&A plus depreciation (3,027)  (4,440) -  (951)  (8,418) 
           
OPERATING PROFIT (LOSS)  529   479  -  (951)  57  
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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