Sensus Healthcare, Inc. Q3 FY2024 earnings call

• Accidental early disclosure of earnings news release occurred, with expectation to return to normal timing next quarter.
• Continued revenue and earnings growth with revenues doubling year-over-year for the second consecutive quarter. Shipped 27 SRT systems, including one to Israel.
• Fair Deal Agreement (FDA) signed 7 contracts in the third quarter, totaling 22 by September 30th, with a significant deal with Platinum Dermatology Partners covering 130 clinical sites.
• SRT expansion into radiation oncology market, with a system shipped to Swedish Hospital and attendance at ASTRO conference.
• Transdermal Infusion Product (TBI) development ongoing, with expectation to submit 510(k) application to FDA by end of 2024.
• International and veterinary market progress, including shipping systems to Israel and a veterinary center, and speaking with potential veterinary customers.

In the third quarter of 2024, revenues more than doubled to $8.8 million, up 127% from $3.9 million in the third quarter of 2023, driven by shipping 27 SRT units compared to 11 in the year-ago quarter. Gross profit for Q3 2024 was $5.2 million, or 59.3% of revenues. For the first nine months of 2024, revenues reached $28.7 million, a 143% increase from $11.8 million in the same period of 2023. Gross profit for the first nine months was $17.3 million, or 60.3% of revenue.

• Expect continued growth from FDA agreements, with significant volumes projected in the second half of 2025 as installations and patient volumes increase.
• No specific targets for units shipped or Fair Deal Agreements stated, but aiming to maximize growth opportunities.

• Accidental early disclosure of earnings news release was noted as a one-time issue.
• Forward-looking statements subject to risks and uncertainties as described in the company's Forms 10-K and 10-Q.

Q: With the Fair Deal Agreement with Platinum Dermatology Partners, what about the remaining 130 clinics and 2025 impact?

A: The contract covers all 130 sites, and it's an ongoing process to fulfill requests for installations, likely continuing well into 2025 with consistent requests for additional products.

Q: On the international front and other large dermatology practices?

A: The Fair Deal Agreement is not offered internationally for now. There are 12 to 15 private equity-backed dermatology companies, and several are reviewing the contracts.

Q: Concern about production capacity for Platinum deal?

A: Capable of manufacturing, current inventory covers 2025, and preparing for 2026 orders, with a systematic approach to installations involving training and construction.

Q: 2025 targets and fourth quarter sales?

A: No specific unit or agreement number targets, but FDA agreements contribute recurring revenue starting in 2025. The fourth quarter sales expected but FDA agreements don't impact Q3/Q4 sales immediately as they are recurring revenue related to patient treatments