Third Quarter 2021 Financial Results TORONTO, Nov. 04, 2021 (GLOBE NEWSWIRE) -- Profound Medical Corp. (NASDAQ:PROF; TSX:PRN) (“Profound” or the “Company”), a commercial-stage medical device company that develops and markets customizable, incision-free therapies for the ablation of diseased tissue, today reported financial results for the third quarter ended September 30, 2021.
Recent Corporate Highlights
- On July 29, 2021, the Company participated in A.G.P.’s Virtual MedTech Summer Conference.
- On September 15, 2021, Profound Lake Street’s 5th Annual Best Ideas Growth Conference.
- On September 30, 2021, the Company participated in the Cantor Virtual Global Healthcare Conference.
“Despite facing sector-wide headwinds from the COVID-19 Delta variant resurgence, Q3-2021 TULSA procedure volumes in the United States grew 20% sequentially over the second quarter of the year,” said Arun Menawat, Profound’s CEO. “However, the pace of new U.S. TULSA-PRO® system installations, as well as revenues generated in international markets like China and Japan, continued to be negatively impacted by the pandemic. While we are cautious in the short-term, we remain pleased with the high quality of the TULSA-PRO® installed base and the exceptional variety of prostate disease patients being treated. We are also happy to confirm that the planned initiation of the Level 1 “CAPTAIN” trial, which will compare the TULSA procedure head-to-head with radical prostatectomy, remains on track and we expect the study to be recruiting patients before the end of 2021.”
Summary Third Quarter 2021 Results
Effective December 31, 2020, Profound changed its presentation currency from the Canadian dollar to the United States dollar. The comparative figures disclosed in this press release have been retrospectively changed to reflect the change in presentation currency to the U.S. dollar, as if the U.S. dollar had been used as the presentation currency for the period ended September 30, 2020. Unless specified otherwise, all amounts in this press release are expressed in U.S. dollars and are presented in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board.
For the quarter ended September 30, 2021, the Company recorded revenue of approximately $2.5 million, with $1.4 million from the one-time sale of capital equipment and $1.1 million from recurring revenue (non-capital), which consists of the sale of consumables, lease of medical devices, procedures and services associated with extended warranties. Third quarter 2021 revenue increased approximately 13% from $2.2 million in the same three-month period a year ago.
Total operating expenses, which consist of research and development (“R&D”), general and administrative (“G&A”), and selling and distribution expenses, were approximately $8.6 million in the third quarter of 2021, an increase of 30% compared with approximately $6.6 million in third quarter of 2020.
Expenditures for R&D for the three months ended September 30, 2021 were approximately $4.0 million, an increase of 14% compared with approximately $3.6 million in the three months ended September 30, 2020, primarily driven by increased costs associated with new and existing clinical trials, increased spending on MRI usage, consultants to assist with clinical trial initiatives, travel restrictions being lifted, additional lab area rentals in Germany, options awarded to employees and additional headcount.
G&A expenses for the 2021 third quarter increased by 35% to approximately $2.5 million, compared with approximately $1.9 million in the same period in 2020, due to options awarded to employees, increased insurance cost attributed to increased coverage, and an overall increase to general expenses as offices continue to reopen from COVID-19 restrictions.
Third quarter 2021 selling and distribution expenses increased by 72% to approximately $2.0 million, compared with $1.2 million in the third quarter of 2020. While selling and distribution expenses have historically been lower than R&D expenses, Profound continues to expect that, in the future, selling and distribution expenses will exceed R&D expenses as the Company continues to commercialize the TULSA-PRO® system in the United States.
Net finance income for the three months ended September 30, 2021 was approximately $1.7 million, compared with net finance costs of approximately $784,000 in the three months ended September 30, 2020.
Third quarter 2021 net loss was approximately $6.0 million, or $0.29 per common share, compared to approximately $6.1 million, or $0.33 per common share, in the three months ended September 30, 2020.
Liquidity and Outstanding Share Capital
As at September 30, 2021, Profound had cash of approximately $72.2 million.
As at November 4, 2021, Profound had 20,769,251 common shares issued and outstanding.
For complete financial results, please see Profound’s filings at www.sedar.com, www.sec.gov and on the Company’s website at www.profoundmedical.com under “Financial” in the Investors section.
Conference Call Details
Profound Medical is pleased to invite all interested parties to participate in a conference call today, November 4, 2021, at 4:30 pm ET during which time the results will be discussed.
| Live Call: | | 1-800-773-2954 (Canada and the United States) |
| | | 1-847-413-3731 (International) |
| Conference ID: | | 50245581 |
The call will also be broadcast live and archived on the Company's website at www.profoundmedical.com under "Webcasts" in the Investors section.
https://www.globenewswire.com/news-release/2021/11/04/2328005/33471/en/Profound-Medical-Announces-Third-Quarter-2021-Financial-Results.html