EX-99.1 4 ex99_1.htm EXHIBIT 99.1
Exhibit 99.1
 
 
Uroplasty Reports Fiscal First Quarter 2014 Financial Results

Total Revenue Sets New Quarterly Record; First Sequential Revenue Growth
 in Three Quarters

Novitas Solutions, Inc. Expands Coverage of PTNS

MINNEAPOLIS, August 1, 2013 /PRNewswire/ -- Uroplasty, Inc. (NASDAQ: UPI), a medical device company that develops, manufactures and markets innovative proprietary products to treat voiding dysfunctions, today reported financial results for the fiscal 2014 first quarter ended June 30, 2013. 

Fiscal First Quarter 2014 Financial Results

Fiscal first quarter 2014 sales in the U.S. increased 6%, driven by a 10% increase in sales of the Urgent® PC Neuromodulation System, compared with fiscal first quarter a year ago.  U.S. Urgent PC Sales in the fiscal first quarter of 2014 were $2.8 million.  Global sales increased 5% to $5.8 million in the first quarter of fiscal 2014, compared with $5.6 million in the fiscal first quarter a year ago.

"Fiscal first quarter sales of Urgent PC grew 11% from the fourth quarter of fiscal 2013, despite the distractions we faced.  This was the first sequential quarterly growth we've achieved in three quarters and is a strong indication that the changes we have made in the sales organization are beginning to gain traction," said Rob Kill, President and Chief Executive Officer of Uroplasty. "As we look ahead into the new fiscal year, we are optimistic about the outlook.  We have innovative and effective product lines combined with favorable reimbursement that continues to improve.  The market is large and remains underpenetrated. With the resolution of our leadership and fiscal 2013 financial statements, we are fully focused on growing sales and driving to profitability as we seek to enhance value for our investors."

Net sales to customers outside the U.S. for the fiscal first quarter totaled $1.6 million, compared to $1.5 million in the fiscal first quarter last year.  Excluding the impact of fluctuations in foreign currency exchange rates, sales outside the U.S. were down 3%. 

The Company reported a gross margin of 87.2% in the recent fiscal first quarter compared with 86.5% in the same quarter a year ago.  The operating loss of $1.6 million in the fiscal first quarter compares with a $1.0 million operating loss in the same quarter last year. Excluding non-cash charges for share-based compensation and depreciation and amortization expense, the non-GAAP operating loss was $1.5 million in the first quarter of fiscal 2014, compared with a $567,000 non-GAAP operating loss in the first quarter a year ago.  The increase in operating loss was primarily attributable to an increase in operating expenses.

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Novitas Solutions, Inc. Expands Coverage of PTNS

Uroplasty also announced that, effective today, August 1, 2013, Novitas Solutions, Inc. has expanded coverage for Posterior Tibial Nerve Stimulation (PTNS) using Urgent PC for treatment of overactive bladder (OAB) and associated symptoms of urinary urgency, urinary frequency and urge incontinence.  This increased coverage includes additional diagnostic codes as well as expansion of on-going therapy from 12 months to up to two years.

Novitas Solutions, Inc., a Medicare Administrative Contractor,  provides medical and drug benefits to approximately  11 million Medicare beneficiaries in the states of Arkansas, Colorado, Delaware, District of Columbia, Louisiana, Maryland, Mississippi, New Jersey, New Mexico, Oklahoma, Pennsylvania and Texas. Novitas has expanded patient access to PTNS by adding diagnosis codes that include frequency, urgency and urge incontinence, the hallmark symptoms of overactive bladder. Uroplasty estimates that PTNS coverage today has been extended to a total of approximately 140 million private coverage and Medicare beneficiaries.

Conference Call

Uroplasty will host a conference call and webcast today at 3:30 pm Central, 4:30 pm Eastern, to review the financial results for the fiscal first quarter of 2014.  Rob Kill, Chief Executive Officer, will host. Individuals wishing to participate in the conference call should dial 877-941-2333.  No passcode is necessary. An audio replay will be available for 30 days following the call at 800-406-7325 with the passcode 4632547#.

To access a live webcast of the call, go to Uroplasty's website at www.uroplasty.com and click on the Investor Relations section. An archived webcast will also be available at investor.uroplasty.com

About Uroplasty, Inc.

Uroplasty, Inc., headquartered in Minnetonka, Minnesota, with wholly-owned subsidiaries in The Netherlands and the United Kingdom, is a global medical company committed to offering transformative treatment options to specialty physicians. Our products are designed to help providers change the lives of their voiding dysfunction patients and strengthen the efficiency of their practices. Our focus is the continued commercialization of our Urgent® PC Neuromodulation System, the only FDA-cleared system that delivers percutaneous tibial nerve stimulation (PTNS) for the office-based treatment of overactive bladder and associated symptoms of urgency, frequency and urge incontinence. We also offer Macroplastique®, an injectable urethral bulking agent for the treatment of adult female stress urinary incontinence primarily due to intrinsic sphincter deficiency. For more information on the company and its products, please visit Uroplasty, Inc. at www.uroplasty.com.
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Forward-Looking Information

This press release contains forward-looking statements that reflect our best estimates regarding future events and financial performance. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from our anticipated results. We discuss in detail the factors that may affect the achievement of our forward-looking statements in our Annual Report on Form 10-K filed with the SEC.  In particular, we cannot be certain that we will ever achieve sustained profitability, that the rate of reimbursement for PTNS treatments will be adequate to justify the cost of our product, that other Medicare carriers or private payers will provide coverage for this treatment or that existing carriers and payers will not change their coverage decisions, that the rate of adoption of our products by new customers will continue, or that any of the other risks identified in our 10-K will not adversely affect our expectations as described in these forward-looking statements.

For Further Information:
Uroplasty, Inc.
Rob Kill, President and CEO
952.426.6151

EVC Group
Jenifer Kirtland (Investors)
415.568.9349
Chris Gale (Media)
646.201.5431
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UROPLASTY, INC. AND SUBSIDIARIES

CONDENSED Consolidated Statements of Operations
(Unaudited)

 
  
Three Months Ended
  
 
  
June 30,
  
 
  
2013
    
2012
  
 
  
   
 
 
  
   
 
Net sales
  
$
5,840,841
    
$
5,577,123
  
Cost of goods sold
    
748,047
      
755,587
  
 
                
Gross profit
    
5,092,794
      
4,821,536
  
 
                
Operating expenses
                
General and administrative
    
1,580,763
      
1,091,846
  
Research and development
    
479,660
      
563,041
  
Selling and marketing
    
4,627,409
      
3,964,835
  
Amortization
    
6,648
      
215,609
  
 
    
6,694,480
      
5,835,331
  
 
                
Operating loss
    
(1,601,686
)
    
(1,013,795
)
 
                
Other income (expense)
                
Interest income
    
9,264
      
12,578
  
Foreign currency exchange (loss) gain
    
(2,695
)
    
(9,671
)
 
    
6,569
      
2,907
  
 
                
Loss before income taxes
    
(1,595,117
)
    
(1,010,888
)
 
                
Income tax expense
    
14,175
      
8,467
  
 
                
Net loss
  
$
(1,609,292
)
  
$
(1,019,355
)
 
                
Basic and diluted loss per common share
  
$
(0.08
)
  
$
(0.05
)
 
                
Weighted average common shares outstanding:
          
Basic and diluted
    
20,784,900
      
20,743,282
  
 
4
UROPLASTY, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)

 
  
June 30, 2013
    
March 31, 2013
  
 
  
   
 
Assets
  
   
 
Current assets:
  
   
 
Cash and cash equivalents & short-term investments
  
$
13,659,835
    
$
11,470,469
  
Accounts receivable, net
    
2,501,211
      
2,553,447
  
Inventories
    
680,212
      
718,933
  
Other
    
544,017
      
566,536
  
Total current assets
    
17,385,275
      
15,309,385
  
 
                
Property, plant, and equipment, net
    
1,151,218
      
1,033,085
  
Intangible assets, net
    
93,855
      
100,502
  
Long-term investments
    
399,672
      
3,451,711
  
Deferred tax assets
    
145,930
      
146,052
  
 
                
Total assets
  
$
19,175,950
    
$
20,040,735
  
 
                
Liabilities and Shareholders' Equity
                
Current liabilities:
                
Accounts payable
  
$
883,827
    
$
618,916
  
Current portion – deferred rent
    
30,878
      
35,000
  
Income tax payable
    
162
      
7,729
  
Accrued liabilities:
                
Compensation
    
1,572,028
      
1,550,846
  
Other
    
868,938
      
476,287
  
Total current liabilities
    
3,355,833
      
2,688,778
  
 
                
Deferred rent – less current portion
    
0
      
5,141
  
Accrued pension liability
    
709,993
      
660,580
  
 
                
Total liabilities
    
4,065,826
      
3,354,499
  
 
                
Total shareholders' equity
    
15,110,124
      
16,686,236
  
 
                
Total liabilities and shareholders' equity
  
$
19,175,950
    
$
20,040,735
  
 
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UROPLASTY, INC. AND SUBSIDIARIES

CONDENSED Consolidated Statements of Cash Flows
 (Unaudited)

 
  
Three Months Ended
  
 
  
June 30
  
 
  
2013
    
2012
  
Cash flows from operating activities:
  
   
 
Net loss
  
$
(1,609,292
)
  
$
(1,019,355
)
Adjustments to reconcile net loss to net cash used in operating activities:
                
Depreciation and amortization
    
87,013
      
288,548
  
Loss on disposal of  equipment
    
(5,881
)
    
599
  
Amortization of premium on marketable securities
    
3,342
      
8,091
  
Share-based consulting expense
    
0
      
1,623
  
Share-based compensation expense
    
16,044
      
162,435
  
Deferred income tax expense (benefit)
    
2,178
      
(1,117
)
Deferred rent credit
    
(9,263
)
    
(9,111
)
Changes in operating assets and liabilities:
                
Accounts receivable, net
    
60,458
      
24,329
  
Inventories
    
39,773
      
(122,672
)
Other current assets
    
23,110
      
(107,267
)
Accounts payable
    
264,500
      
137,599
  
Accrued compensation
    
19,415
      
(202,540
)
Accrued liabilities
    
383,436
      
96,108
  
Accrued pension liability, net
    
40,073
      
41,029
  
Net cash used in operating activities
    
(685,094
)
    
(701,701
)
 
                
Cash flows from investing activities:
                
Proceeds from maturity of available-for-sale investments
    
1,000,000
      
-
  
Proceeds from maturity of held-to-maturity investments
    
820,000
      
3,320,000
  
Purchases of available-for-sale investments
    
-
      
(3,218,286
)
Purchases of property, plant and equipment
    
(189,789
)
    
(73,902
)
Proceeds from sale of property, plant and equipment
    
6,080
      
-
  
Purchases of intangible assets
    
-
      
(4,440
)
Net cash provided by investing activities
    
1,636,291
      
23,372
  
 
                
Cash flows from financing activities:
                
Net cash provided by financing activities
    
-
      
-
  
 
                
Effect of exchange rate changes on cash and cash equivalents
    
9,312
      
(18,642
)
 
                
Net decrease in cash and cash equivalents
    
960,509
      
(696,971
)
 
                
Cash and cash equivalents at beginning of period
    
3,533,864
      
4,653,226
  
 
                
Cash and cash equivalents at end of period
  
$
4,494,373
    
$
3,956,255
  
 
                
Cash paid during the period for income taxes
  
$
17,770
    
$
18,592
  
 
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Non-GAAP Financial Measures:  The following table reconciles our operating loss calculated in accordance with accounting principles generally accepted in the U.S. (GAAP) to non-GAAP financial measures that exclude non-cash charges for share-based compensation, and depreciation and amortization expenses from gross profit, operating expenses and operating loss.  The non-GAAP financial measures used by management and disclosed by us are not a substitute for, or superior to, financial measures and consolidated financial results calculated in accordance with GAAP, and you should carefully evaluate our reconciliations to non-GAAP.  We may calculate our non-GAAP financial measures differently from similarly titled measures used by other companies.  Therefore, our non-GAAP financial measures may not be comparable to those used by other companies.  We have described the reconciliations of each of our non-GAAP financial measures described above to the most directly comparable GAAP financial measures.

We use these Non-GAAP financial measures, and in particular non-GAAP operating loss, for internal managerial purposes because we believe such measures are one important indicator of the strength and the operating performance of our business.  Analysts and investors frequently ask us for this information.  We believe that they use these measures to evaluate the overall operating performance of companies in our industry, including as a means of comparing period-to-period results and as a means of evaluating our results with those of other companies.

Our non-GAAP operating loss during the three months ended June 30, 2013 and 2012 was approximately $1.5 million and $561,000, respectively.  The increase in non-GAAP operating loss for the three months ended June 30, 2013 over the corresponding period a year ago is attributed to the increase in operating spending, offset slightly by the increase in net sales and gross profit percent.
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Expense Adjustments
    
 
Three-Months Ended
  
GAAP
    
Share-based Expense
    
Depreciation
    
Amortization
of Intangibles
    
Non-GAAP
  
30-Jun-13
  
   
   
   
   
 
Gross Profit
  
$
5,093,000
    
$
8,000
    
$
9,000
      
0
    
$
5,110,000
  
% of net sales
    
87.2
%
                            
87.5
%
Operating Expenses
                                        
General and administrative
    
1,581,000
      
79,000
      
(51,000
)
    
-
      
1,609,000
  
Research and development
    
480,000
      
(14,000
)
    
(1,000
)
    
-
      
465,000
  
Selling and marketing
    
4,627,000
      
(73,000
)
    
(19,000
)
    
-
      
4,535,000
  
Amortization
    
7,000
      
-
      
-
      
(7,000
)
    
-
  
 
    
6,695,000
      
(8,000
)
    
(71,000
)
    
(7,000
)
    
6,609,000
  
Operating Loss
  
$
(1,602,000
)
  
$
16,000
    
$
80,000
    
$
7,000
    
$
(1,499,000
)
 
                                        
30-Jun-12
                                        
Gross Profit
  
$
4,822,000
    
$
6,000
    
$
9,000
      
0
    
$
4,837,000
  
% of net sales
    
86.5
%
                            
86.7
%
Operating Expenses
                                        
General and administrative
    
1,092,000
      
(86,000
)
    
(47,000
)
    
-
      
959,000
  
Research and development
    
563,000
      
(12,000
)
    
(1,000
)
    
-
      
550,000
  
Selling and marketing
    
3,965,000
      
(60,000
)
    
(16,000
)
    
-
      
3,889,000
  
Amortization
    
216,000
      
-
      
-
      
(216,000
)
    
-
  
 
    
5,836,000
      
(158,000
)
    
(64,000
)
    
(216,000
)
    
5,398,000
  
Operating Loss
  
$
(1,014,000
)
  
$
164,000
    
$
73,000
    
$
216,000
    
$
(561,000
)

 
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