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| 8-K - FORM 8-K FILING DOCUMENT - CAS MEDICAL SYSTEMS INC | document.htm |
EXHIBIT 99.1
CASMED Announces Second Quarter 2013 Financial Results
Launch of Next-Generation Vital Signs Monitor Underway
Conference Call Begins at 10:00 a.m. ET Today
BRANFORD, Conn., Aug. 7, 2013 (GLOBE NEWSWIRE) -- CAS Medical Systems, Inc. (Nasdaq:CASM) (CASMED), a leader in medical devices for non-invasive patient monitoring, today reported financial results for the three months ended June 30, 2013. Net sales were $5.0 million for the second quarter of 2013, compared with $5.2 million for the second quarter of 2012. The net loss applicable to common stockholders for the second quarter of 2013 was $2.9 million, or ($0.22) per common share, compared with a net loss applicable to common stockholders of $1.9 million, or ($0.15) per common share, for the second quarter of 2012.
Highlights of the second quarter of 2013 and recent weeks include (all comparisons are with the second quarter of 2012):
- Growing FORE-SIGHT® sales by 15%, including a 13% increase in FORE-SIGHT disposable sensor sales
- Increasing the installed base of FORE-SIGHT units by 26% to 804 as of June 30, 2013
- Receiving FDA 510(k) clearance for the next-generation FORE-SIGHT ELITE™
- Receiving FDA 510(k) clearance for the 740 SELECT™ vital signs monitor
- Amending the loan agreement with East West Bank on May 10, 2013, providing $1.5 million of expanded term debt funding and extending the maturity date
- Completing a $6.5 million public offering of the Company's equity securities on July 10, 2013
Management Commentary
"The continued momentum of FORE-SIGHT sales and market penetration even just prior to a transition to the next-generation FORE-SIGHT ELITE™ demonstrates the strength of our technology and growing recognition of the importance of cerebral oximetry in surgical settings," said Thomas M. Patton, President and Chief Executive Officer of CASMED. "As planned, we will begin the initial limited rollout of the ELITE by the end of this month at select customer sites, with a full market launch on track for the fourth quarter. With the ELITE's industry-leading accuracy and upgraded feature set, we expect to drive further adoption and market-share gains for CASMED. We believe the ELITE can play an important role in making cerebral oximetry a standard of care.
"We also began deliveries of our new 740 SELECT vital signs monitor to distributors this month following FDA clearance in early June. As the 740 SELECT replaces a 10-year-old product line that had sales of more than 20,000 monitors worldwide, we believe we will be able to capitalize on our brand value and our revitalized distribution channel with this new best-in-class product.
"With the introduction of an entirely new product line and a much-strengthened balance sheet, CASMED is positioned for a successful second half. We now have greater potential for accelerating revenue growth and should soon make progress towards our goal of returning the company to profitability," concluded Mr. Patton.
Financial Results
For the second quarter of 2013, the Company reported net sales of $5.0 million, a decrease of 3% from net sales of $5.2 million reported for the second quarter of 2012. FORE-SIGHT oximetry sales were $2.2 million, an increase of $0.3 million, or 15%, over the second quarter of 2012. FORE-SIGHT disposable sensor sales increased $0.2 million, or 13%, to $1.9 million, compared with the prior-year period. All other sales were $2.8 million, a decrease of $0.5 million, or 13%, from the second quarter of 2012.
For the six months ended both June 30, 2013 and 2012, CASMED reported net sales of $10.6 million. FORE-SIGHT oximetry sales for the first half of 2013 were $4.4 million, an increase of $0.8 million, or 22%, compared with the first half of 2012. All other sales were $6.2 million, a decrease of $0.8 million, or 12%, from the first half of 2012.
The Company recorded a net loss applicable to common stockholders for the second quarter of 2013 of $2.9 million or ($0.22) per common share, compared with a net loss applicable to common stockholders of $1.9 million or ($0.15) per common share for the second quarter of 2012.
The net loss applicable to common stockholders for the first half of 2013 was $4.8 million or ($0.36) per common share, compared with a net loss applicable to common stockholders of $4.1 million or ($0.31) per common share for the first half of 2012.
Cash, cash equivalents, and short-term investments were $6.8 million as of June 30, 2013, compared with $10.5 million as of December 31, 2012.
On July 10, 2013, the Company completed a purchase agreement with Northland Securities related to a public offering of 5,200,000 common shares at $1.25 per share. CASMED executed an underwriting agreement with Northland under which it purchased the 5,200,000 shares at $1.16875 per share. Net proceeds to the Company after transaction costs were $5.9 million.
As of July 31, 2013, the Company's cash, cash equivalents, and short-term investments were approximately $12.2 million.
Conference Call Information
CASMED will host a conference call today at 10:00 a.m. ET to discuss second quarter 2013 results.
Conference call dial-in information is as follows:
- U.S. callers: (877) 664-6134
- International callers: (702) 495-1913
Individuals interested in listening to the live conference call via the Internet may do so by logging on to the Company's website: www.casmed.com.
A telephone replay will be available from 1:00 p.m. ET on August 7, 2013, through 11:59 p.m. ET on August 21, 2013. Replay dial-in information is as follows:
- U.S. callers: (855) 859-2056
- International callers: (404) 537-3406
- Conference ID number (U.S. and international): 25572210
- The replay will also be available at www.casmed.com.
About CASMED® – Monitoring What's Vital
CASMED is a leading developer and manufacturer of medical devices for non-invasive patient monitoring. The Company's FORE-SIGHT Absolute Cerebral Oximeter provides a highly accurate, non-invasive, continuous measurement of absolute cerebral tissue oxygen saturation. Direct monitoring of tissue oxygenation provides a superior and powerful tool to alert clinicians to otherwise unrecognized and dangerously low levels of oxygenation of the brain and other tissues, thereby allowing them to intervene appropriately in the care of their patients. In addition to FORE-SIGHT Oximeters and accessories, the Company provides a line of bedside patient vital signs monitoring products, proprietary non-invasive blood pressure monitoring solutions for OEM use, neonatal intensive care supplies, and service. CASMED products are designed to provide unique monitoring solutions that are vital to patient care. For further information regarding CASMED, visit the Company's website at www.casmed.com.
Statements included in this press release, which are not historical in nature, are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Statements relating to the future performance of the Company are subject to many factors including, but not limited to, the customer acceptance of the products in the market, the introduction of competitive products and product development, the impact of any product liability or other adverse litigation, working capital and availability of capital, commercialization and technological difficulties, the impact of actions and events involving key customers, vendors, lenders, competitors, and other risks detailed in the Company's Form 10-K for the year ended December 31, 2012, and other subsequent Securities and Exchange Commission filings.
Such statements are based upon the current beliefs and expectations of the Company's management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. When used in this press release, the terms "anticipate", "believe", "estimate", "expect", "may", "objective", "plan", "possible", "potential", "project", "will", and similar expressions identify forward-looking statements. The forward-looking statements contained in this press release are made as of the date hereof, and we do not undertake any obligation to update any forward-looking statements, whether as a result of future events, new information, or otherwise.
| CAS MEDICAL SYSTEMS, INC. | ||||
| STATEMENTS OF INCOME | ||||
| Unaudited | ||||
| Three Months Ended | Six Months Ended | |||
| June 30, | June 30, | June 30, | June 30, | |
| 2013 | 2012 | 2013 | 2012 | |
| Net sales | $ 5,042,420 | $ 5,198,300 | $ 10,618,258 | $ 10,607,119 |
| Cost of sales | 3,124,411 | 3,015,656 | 6,475,267 | 6,389,401 |
| Gross profit | 1,918,009 | 2,182,644 | 4,142,991 | 4,217,718 |
| Operating expenses: | ||||
| Research and development | 1,029,533 | 949,704 | 2,082,393 | 1,839,821 |
| Selling, general and administrative | 3,460,829 | 2,897,182 | 6,542,582 | 6,004,703 |
| Total operating expenses | 4,490,362 | 3,846,886 | 8,624,975 | 7,844,524 |
| Operating loss | (2,572,353) | (1,664,242) | (4,481,984) | (3,626,806) |
| Interest expense | 76,824 | 735 | 142,554 | 883 |
| Other expense (income) | (15,308) | (15,368) | (403,487) | (31,988) |
| Net loss | (2,633,869) | (1,649,609) | (4,221,051) | (3,595,701) |
| Preferred stock dividend accretion | 298,333 | 278,332 | 591,534 | 551,877 |
| Net loss applicable to common stockholders | $ (2,932,202) | $ (1,927,941) | $ (4,812,585) | $ (4,147,578) |
| Per share basic and diluted income (loss) applicable to common stockholders: | $ (0.22) | $ (0.15) | $ (0.36) | $ (0.31) |
| Weighted average number of common shares outstanding: | ||||
| Basic and diluted | 13,425,416 | 13,260,345 | 13,408,584 | 13,239,593 |
| CAS MEDICAL SYSTEMS, INC. | ||
| BALANCE SHEETS | ||
| Unaudited | ||
| June 30, | December 31, | |
| 2013 | 2012 | |
| Cash and cash equivalents | $ 6,022,405 | $ 9,245,094 |
| Short-term investments | 757,973 | 1,250,794 |
| Accounts receivable | 2,638,325 | 2,197,513 |
| Inventories | 3,449,327 | 3,543,325 |
| Other current assets | 610,721 | 612,082 |
| Total current assets | 13,478,751 | 16,848,808 |
| Property and equipment | 9,511,806 | 9,158,677 |
| Less accumulated depreciation | (6,854,108) | (6,443,303) |
| 2,657,698 | 2,715,374 | |
| Intangible and other assets, net | 850,804 | 830,245 |
| Total assets | $ 16,987,253 | $ 20,394,427 |
| Accounts payable | $ 1,058,666 | $ 1,906,327 |
| Accrued expenses | 1,327,505 | 1,625,923 |
| Current portion of long-term debt | -- | 697,834 |
| Total current liabilities | 2,386,171 | 4,230,084 |
| Deferred gain on sale and leaseback of property | 562,833 | 630,152 |
| Long-term debt less current portion | 4,884,132 | 2,685,560 |
| Total liabilities | 7,833,136 | 7,545,796 |
| Series A convertible preferred stock | 8,802,000 | 8,802,000 |
| Series A exchangeable preferred stock | 5,135,640 | 5,135,640 |
| Common stock | 55,285 | 55,069 |
| Additional paid-in capital | 12,550,043 | 12,023,721 |
| Treasury stock | (101,480) | (101,480) |
| Accumulated deficit | (17,287,371) | (13,066,319) |
| Total stockholders' equity | 9,154,117 | 12,848,631 |
| Total liabilities & stockholders' equity | $ 16,987,253 | $ 20,394,427 |
CONTACT: Company Contact
CAS Medical Systems, Inc.
Jeffery A. Baird
Chief Financial Officer
(203) 315-6303
ir@casmed.com
Investors
LHA
Don Markley (dmarkley@lhai.com)
(310) 691-7105
Bruce Voss (bvoss@lhai.com)
(310) 691-7100
@LHA_IR_PR