0000711665-12-000004.txt : 20120313 0000711665-12-000004.hdr.sgml : 20120313 20120313160858 ACCESSION NUMBER: 0000711665-12-000004 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20120312 ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20120313 DATE AS OF CHANGE: 20120313 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PHOTOMEDEX INC CENTRAL INDEX KEY: 0000711665 STANDARD INDUSTRIAL CLASSIFICATION: ELECTROMEDICAL & ELECTROTHERAPEUTIC APPARATUS [3845] IRS NUMBER: 592858100 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-11635 FILM NUMBER: 12687249 BUSINESS ADDRESS: STREET 1: 147 KEYSTONE DRIVE CITY: MONTGOMERYVILLE STATE: PA ZIP: 18936 BUSINESS PHONE: 2156193600 MAIL ADDRESS: STREET 1: 147 KEYSTONE DRIVE CITY: MONTGOMERYVILLE STATE: PA ZIP: 18936 FORMER COMPANY: FORMER CONFORMED NAME: LASER PHOTONICS INC DATE OF NAME CHANGE: 19920703 8-K 1 form_8k.htm EARNINGS 8 K FORM form_8k.htm
 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

_____________

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of report (Date of earliest event reported): March 8, 2012
 
PhotoMedex, Inc.
(Exact Name of Registrant Specified in Charter)
 
Nevada
0-11635
59-2058100
(State or Other
(Commission File
(I.R.S. Employer
Jurisdiction of
Number)
Identification No.)
Incorporation)
    
 
 
147 Keystone Drive, Montgomeryville, Pennsylvania
18936
(Address of Principal Executive Offices)
(Zip Code)

Registrant’s telephone number, including area code:   215-619-3600

Not Applicable
(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o      Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o      Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o      Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o      Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))


 
 
 

Item 2.02.                      Results of Operations and Financial Condition.

On March 8, 2012, PhotoMedex, Inc. (the “Company”) issued a press release announcing its results of operations for the fourth fiscal quarter and full fiscal year ended December 31, 2011.  The full text of such press release is furnished as Exhibit 99.1 to this report.

The Company makes reference to non-GAAP financial information in the press release furnished herewith.  Specifically, these non-GAAP measures include non-GAAP adjusted net loss and non-GAAP adjusted loss per share.  There are limitations in using these non-GAAP financial measures because they are not prepared in accordance with GAAP and may be different from non-GAAP financial measures used by other companies.  The Company’s reference to these non-GAAP measures should be considered in addition to results prepared under current accounting standards, but are not a substitute for, nor superior to, GAAP results.  These non-GAAP measures are provided to enhance investors’ overall understanding of the Company’s current financial performance and to provide further information for comparative purposes.

Specifically, the Company believes the non-GAAP measures provide useful information to both management and investors by isolating certain expenses, gains and losses that may not be indicative of the Company’s core operating results and business outlook.  In addition, the Company believes non-GAAP measures that exclude stock-based compensation expense and other non-cash or non-recurring expenses enhance the comparability of results against prior periods.  A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures is contained in the press release.

The information set forth under this Item 2.02, including Exhibit 99.1, is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of such section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in any such filing.

Item 9.01.                      Financial Statements and Exhibits.

(d)           Exhibits.

The following press release is furnished as an exhibit to this Current Report on Form 8-K pursuant to Item 2.02 and shall not be deemed to be “filed”:

99.1           Press Release dated March 8, 2012 issued by PhotoMedex, Inc.


SIGNATURE
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this current report to be signed on its behalf by the undersigned hereunto duly authorized.

 
 
PHOTOMEDEX, INC.
   
   
Date:  March 13, 2012
By:  /s/ Dolev Rafaeli                  
 
Dolev Rafaeli
Chief Executive Officer
 
 
 
 
 
 

 
 
 

EXHIBIT INDEX


Exhibit No.
Description of Exhibit
99.1
Press Release dated March 8, 2012 issued by PhotoMedex, Inc.
 



 
 
 

 EX-99.1 2 ex_99-1.htm EARNINGS PRESS RELEASE ex_99-1.htm
EXHIBIT 99.1
 
 

logo
 
Contacts:
LHA
Kim Sutton Golodetz
212-838-3777
Kgolodetz@lhai.com
Bruce Voss, 310-691-7100
Bvoss@lhai.com
  
PhotoMedex, Inc.
Dennis McGrath, Chief Financial Officer
215-619-3287
info@photomedex.com
 
@LHA_IR_PR
    


PHOTOMEDEX REPORTS 2011 FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS

For the year revenues increase 89%, gross profit increases 97%, adjusted net income increases 95%


MONTGOMERYVILLE, Pa. (March 8, 2012) – PhotoMedex, Inc. (NASDAQ: PHMD) today reported financial results for the three and 12 months ended December 31, 2011.

On December 13, 2011 Radiancy, Inc. became a majority owned subsidiary of PhotoMedex in a reverse merger.  In accordance with generally accepted accounting principles (GAAP), Radiancy is deemed to be the financial acquirer for financial statement purposes and  therefore the related consolidated statements of operations for the three and 12 month periods ended December 31, 2011 and for the year ended December 31, 2010, include activity from the pre-merged PhotoMedex only from the date of merger, December 13, 2011 through December 31, 2011.

Reported Financial Results

Revenues for the fourth quarter of 2011 were $28.8 million, which included $1.5 million in revenues from pre-merged PhotoMedex from the merger date through December 31, 2011.  This represents an increase of 26% from revenues for the fourth quarter of 2010 of $22.9 million, which included no revenues from pre-merged PhotoMedex. Fourth quarter seasonal fluctuations – both positive and negative – for certain international markets are normal and expected for the Company’s consumer business, as compared with the balance of the year.

The net loss for the fourth quarter of 2011 was $3.0 million, or $0.22 per share, which included $5.2 million in stock-based compensation expense, $1.0 million in other merger-related expenses and $1.7 in litigation expenses.  This compares with net income for the fourth quarter of 2010 of $2.9 million, or $0.25 per diluted share, which included $0.07 million in stock-based compensation expense and $0.3 million in litigation expenses.

Revenues for 2011 were $132.1 million, which included $1.5 million in revenues from pre-merged PhotoMedex from the merger date through December 31, 2011.  This represents an increase of 89% from revenues for 2010 of $70.1 million, which included no revenues from pre-merged PhotoMedex.

 
 
 



The net loss for 2011 was $0.7 million, or $0.06 per share, which included $34.0 million in stock-based compensation expense and related gross-up, $2.1 million in other merger-related expenses and $3.0 in litigation expenses. This compares with net income for 2010 of $11.6 million, or $0.99 per diluted share, which included $0.4 million in stock-based compensation expense and $0.3 in litigation expenses.

As of December 31, 2011, the Company had cash and cash equivalents of $16.5 million.

On a pro forma basis, had the merger been completed on January 1, 2011, revenues for 2011 were $162.3 million.

Management expects revenues for the first quarter of 2012 to exceed $45 million, and expects cash and cash equivalents to exceed $23 million as of March 31, 2012.

Dr. Dolev Rafaeli, PhotoMedex CEO, commented, “We are pleased to report our first financial results as a merged company and to deliver yet another year of substantial revenue growth. We have been able to expand our gross margin to 80% from 77% in the previous year, and improve our profitability performance, as measured by adjusted net income to revenue, to 28% from 27%.”

Dr. Rafaeli added, “Our consumer brands continue to build sizeable sales momentum.  I am proud of my global team’s operational and business achievements, especially considering that they were also fully engaged for most of the year in completing the merger between Radiancy and PhotoMedex.  We’re looking forward to seeing the impact of Radiancy’s marketing methodologies and expertise on the XTRAC® and Neova® brands.  In addition, we expect to continue to realize organic and geographic growth of our no!no!™, Omnilux™, Lumiere™ and LHE™ brands.”

A reconciliation of non-GAAP financial measures to GAAP financial measures, and a presentation of the most directly comparable GAAP financial measures are included below.

Non-GAAP Measures

To supplement PhotoMedex’s consolidated financial statements presented in accordance with GAAP, PhotoMedex provides certain non-GAAP measures of financial performance. These non-GAAP measures include non-GAAP adjusted net income and non-GAAP adjusted net income per share.

PhotoMedex’s reference to these non-GAAP measures should be considered in addition to results prepared under current accounting standards, but are not a substitute for, nor superior to, GAAP results.  These non-GAAP measures are provided to enhance investors' overall understanding of PhotoMedex’s current financial performance and to provide further information for comparative purposes.

Specifically, the Company believes the non-GAAP measures provide useful information to both management and investors by isolating certain expenses, gains and losses that may not be indicative of the Company’s core operating results and business outlook. In addition, PhotoMedex believes non-GAAP measures enhance the comparability of results against prior periods. Reconciliation to the most directly comparable GAAP measure of all non-GAAP measures included in this press release is as follows:

 
 
 


 
(Unaudited)
 

   
Three Months Ended December, 31
    
Year Ended December, 31
  
(ooo's) except per share amounts
     2011 *     2010 **     2011 *     2010 **
                                 
Net (Loss) Income as reported
   $ (2,984 )   $ 2,929     $ (693 )   $ 11,601  
                                 
Adjustments:
Stock-based compensation expense
     5,201       68       34,001       392  
Depreciation and amortization expense
     316       94       590       388  
Other merger related expense
     1,010       -       2,110       -  
Litigation expense
     1,700       300       3,000       300  
Interest expense, net
     24       -       24       -  
Income tax expense
     (629 )     681       (2,022 )     6,287  
    $ 4,638     $ 4,072     $ 37,010     $ 18,968  
Non-GAAP adjusted income
Primary shares post merger and outstanding Dec 31, 2011
     18,822       18,822       18,822       18,822  
                                 
Non-GAAP adjusted income per share
   $ 0.25     $ 0.22     $ 1.97     $ 1.01  


*PhotoMedex, Inc. merged with Radiancy, Inc. in a reverse acquisition on December 13, 2011.  Therefore, the operating results of PhotoMedex for the three- and 12-month periods ended December 31, 2011 include activity from the pre-merged PhotoMedex from December 13, 2011 through December 31, 2011.

**As a result of purchase accounting rules, the operating results of the pre-merged PhotoMedex for the three- and 12-month periods ended December 31, 2010 are not included in the consolidated statements of operations for the periods ended December 31, 2010.


Conference Call

PhotoMedex will hold a conference call to discuss the Company's fourth quarter and full year 2011 results and answer questions today, March 8, 2012 beginning at 4:30 p.m. Eastern time.

To participate in the conference call, dial toll free 888-812-8589 or International/toll 913-312-0408 (and confirmation code # 2150441). If you are unable to participate, a digital replay of the call will be available from 7:30 p.m. ET Thursday, March 8 until 7:30 p.m. ET Thursday, March 22, 2012 by dialing toll free 888-203-1112 or International/toll 719-457-0820 and using confirmation code # 2150441.

The live broadcast of PhotoMedex, Inc.'s quarterly conference call will be available online by going to www.photomedex.com and clicking on the link to Investor Relations, and at www.streetevents.com. The online replay will be available shortly after the call ends at those sites.

 
 
 




About PhotoMedex

PhotoMedex is a global skin health company providing integrated disease management and aesthetic solutions to dermatologists, professional aestheticians and consumers. The company provides proprietary products and services that address skin diseases and conditions including psoriasis, vitiligo, acne, actinic keratosis (a precursor to certain types of skin cancer) and photo damage. Its experience in the physician market provides the platform to expand its skin health solutions to spa markets, as well as traditional retail, online and infomercial outlets for home-use products. As a result of its December 2011 merger with Radiancy Inc., PhotoMedex has added a range of home-use devices under the no!no!™ brand, for various indications including hair removal, acne treatment and skin rejuvenation. The company also offers a professional product line for acne clearance, skin tightening, psoriasis care and hair removal sold to physician clinics and spas.


SAFE HARBOR STATEMENT

Some portions of the conference call, particularly those describing PhotoMedex' strategies, operating expense reductions and business plans will contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks, uncertainties and other factors.   All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including any statements of the plans, strategies and objectives of management for future operations; any statements regarding product development, product extensions, product integration or product marketing; any statements regarding continued compliance with government regulations, changing legislation or regulatory environments; any statements of expectation or belief and any statements of assumptions underlying any of the foregoing. In addition, there are risks and uncertainties related to successfully integrating the products and employees of the Company and Radiancy, as well as the ability to ensure continued regulatory compliance, performance and/or market growth.  These risks, uncertainties and other factors, and the general risks associated with the businesses of the Company described in the reports and other documents filed with the SEC, could cause actual results to differ materially from those referred to, implied or expressed in the forward-looking statements.  The Company cautions readers not to rely on these forward-looking statements.  All forward-looking statements are based on information currently available to the Company and are qualified in their entirety by this cautionary statement.  The Company anticipates that subsequent events and developments will cause its views to change.  The information contained in this conference call speaks as of the date hereof and the Company has or undertakes no obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise.
.
 

 
-- Financial Statements follow --




 
 
 

PHOTOMEDEX, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNADUDITED)


                                     
                                     
         
Three Months Ended December 31,
          
Year Ended December 31,
  
(ooo's) except per share amounts
           2011 *     2010 **           2011 *     2010 **
                                             
Revenues
         $ 28,749     $ 22,889           $ 132,082     $ 70,071  
                                             
Cost of Revenues
           6,242       3,479             26,296       16,465  
 Gross profit
         $ 22,507     $ 19,410           $ 105,786     $ 53,606  
                                             
Operating expenses:
                                            
Selling, general and administrative
           25,593       15,539             107,376       34,596  
Research and development and engineering
           357       270             1,057       839  
            25,950       15,809             108,433       35,435  
Operating Income (Loss)
                                            
refinancing charge and interest expense, net
           (3,443 )     3,601             (2,647 )     18,171  
                                             
Interest (expense), net
           (24 )     -             (24 )     -  
Other income (expense)
           (146 )     9             (44 )     (283 )
                                             
Income (loss) before taxes
           (3,613 )     3,610             (2,715 )     17,888  
                                             
   Income tax expense (benefit)
           (629 )     681             (2,022 )     6,287  
                                             
Net income (loss)
       1   $ (2,984 )   $ 2,929         1   $ (693 )   $ 11,601  
                                                 
Net income (loss) per share:
                                                
     Basic
           $ (0.22 )   $ 0.29             $ (0.06 )   $ 1.13  
     Diluted
           $ (0.22 )   $ 0.25             $ (0.06 )   $ 0.99  
                                                 
Shares used in computing net income (loss) per share:
                                                
     Basic
             13,614       10,256               11,628       10,256  
     Diluted
             13,614       11,725               11,628       11,725  
                                                 
1 Includes: depreciation and amortization
             316       94               590       388  
  Includes merger related expense
             1,010       -               2,110       -  
  Share-based compensation expense
             5,201       68               34,001       392  
 

 

*PhotoMedex, Inc. merged with Radiancy, Inc. in a reverse acquisition on December 13, 2011.  Therefore, the operating results of PhotoMedex for the three- and 12-month periods ended December 31, 2011 include activity from the pre-merged PhotoMedex from December 13, 2011 through December 31, 2011.

**As a result of purchase accounting rules, the operating results of the pre-merged PhotoMedex for the three- and 12-month periods ended December 31, 2010 are not included in the above consolidated statements of operations for the periods ended December 31, 2010.

 
 
 





PHOTOMEDEX, INC.
  
CONDENSED CONSOLIDATED BALANCE SHEETS
  
(UNAUDITED)
  
             
             
   
Dec 31, 2011
    
Dec 31, 2010
  
     Assets
            
Cash and cash equivalents
   $ 16,549     $ 7,581  
Short-term deposits
     -       14,500  
Accounts receivable, net
     12,393       6,980  
Inventories
     19,208       11,113  
Property and equipment, net
     5,324       759  
Other assets
     92,089       5,454  
     Total Assets
   $ 145,563     $ 46,387  
                 
     Liabilities and Stockholders' Equity
                
Accounts payable and accrued liabilities
   $ 26,900     $ 16,447  
Other current liabilities
     1,948       203  
Bank and Lease Notes Payable
     2,232       -  
Other liabilities
     2,405       837  
Stockholders' equity
     112,078       28,900  
     Total Liabilities and Stockholders' Equity
   $ 145,563     $ 46,387  
                 
                 
                 




 
 
 


PHOTOMEDEX, INC.
CONDENSED STATEMENTS OF CASH FLOWS
(UNAUDITED)

   
For the year ended December 31,
  
      2011 *     2010 **
CASH FLOWS FROM OPERATING ACTIVITIES:
                
Net income (loss)
   $ (694 )   $ 11,601  
Adjustments to reconcile net income (loss) to
                
  net cash provided by operating activities--
                
Depreciation and amortization
     590       388  
Provision for doubtful accounts
     2,595       1,509  
Provision for sales returns
     6,999       3,723  
Stock based compensation
     21,637       392  
Deferred income taxes
     (5,751 )     2,018  
Other
     -       96  
Changes in assets and liabilities:
                
(Increase) decrease in--
                
Current assets
     (7,769 )     (13,622 )
Current liabilities
     (4,148 )     7,762  
     Net cash provided by operating activities
     13,459       13,867  
                 
CASH FLOWS FROM INVESTING ACTIVITIES:
                
Sale of short term deposits
     14,500       (14,500 )
Lasers placed into service
     15       -  
Purchases of PP&E, net
     (358 )     (93 )
Acquisition costs, net of cash received
     (18,729 )     -  
Other
     (81 )     (122 )
     Net cash provided by (used in) investing activities
     (4,653 )     (14,715 )
                 
CASH FLOWS FROM FINANCING ACTIVITIES:
                
Purchase of Company shares
     (250 )     -  
Proceeds from exercise of options
     410       -  
Repayment of stockholders' loan
     -       (2,020 )
     Net cash provided by (used in) financing activities
     160       (2,020 )
                 
                 
EFFECT OF EXCHANGE RATE CHANGES ON CASH
     2       -  
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
     8,968       (2,868 )
                 
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
     7,581       10,449  
                 
CASH AND CASH EQUIVALENTS, END OF PERIOD
   $ 16,549     $ 7,581  
                 


*PhotoMedex, Inc. merged with Radiancy, Inc. in a reverse acquisition on December 13, 2011.  Therefore, the operating  results of PhotoMedex for the year  ended December 31, 2011 include activity from the pre-merged PhotoMedex from December 13, 2011 through December 31, 2011.

**As a result of purchase accounting rules, the operating results of the pre-merged PhotoMedex for year ended December 31, 2010 are not included in the above condensed statements of cash flows for the period ended December 31, 2010.


 
 

 
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