Market Overview

Bovie Medical Corporation Updates Fiscal Year 2018 Financial Outlook

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Now Expect Advanced Energy Sales Growth of 55% to 60%
year-over-year

Bovie Medical Corporation (NYSE:BVX) (the "Company"), a maker
of medical devices and supplies and the developer of J-Plasma®,
a patented surgical product marketed and sold under the Renuvion™
Cosmetic Technology brand in the cosmetic surgery market, today updated
financial guidance expectations for the twelve months ending December
31, 2018.

2018 Financial Outlook:

The Company is introducing fiscal year 2018 financial guidance on a
continuing operations basis as adjusted, which reflects the consummation
of the Core segment sale transaction which closed on August 30, 2018.

For the fiscal year 2018, the Company expects:

  • Total revenue from continuing operations in the range of $15.2 million
    to $15.6 million, representing growth of 49% to 53% year-over-year,
    compared to total revenue from continuing operations of $10.2 million
    in fiscal year 2017.
    • Total revenue from continuing operations assumes:
      • Advanced Energy revenue in the range of approximately $11.8
        million to $12.2 million, representing growth of 55% to 60%
        year-over-year, compared to Advanced Energy revenue of $7.6
        million in fiscal year 2017.
      • OEM revenue of approximately $3.4 million, representing growth
        of 31% year-over-year, compared to $2.6 million for fiscal
        year 2017.
  • GAAP Net loss from continuing operations in the range of $12.7 million
    to $12.3 million, compared to GAAP net loss from continuing operations
    of $11.9 million in fiscal year 2017.
  • Adjusted EBITDA loss from continuing operations in the range of $11.7
    million to $11.3 million, compared to adjusted EBITDA loss from
    continuing operations of $12.0 million in fiscal year 2017.
  • Net after tax proceeds from the sale of the Core business of
    approximately $68 million.

The Company's prior fiscal year 2018 guidance ranges for total revenue,
GAAP net loss and adjusted EBITDA were on an ‘as reported' basis and
included contributions from the Core segment of:

  • Total revenue in the range of approximately $27.8 million to $28.8
    million,
  • GAAP net income in the range of approximately $7.5 million to $8.0
    million,
  • Adjusted EBITDA income in the range of approximately $9.0 million to
    $9.5 million

Conference Call Details:

Management will host a conference call at 8:00 a.m. Eastern Time on
September 5, 2018 to discuss the transaction and to host a question and
answer session. To listen to the call by phone, interested parties
within the U.S. may dial 844-507-6493 (or 647-253-8641 for international
callers) and provide access code 9489957. Participants should ask for
the Bovie Medical Corporation Call.

A live webcast of the call will be accessible via the Investor Relations
section of the Company's website and at: https://event.on24.com/wcc/r/1827722/8DFD3979EA9FB417E4AABFF7565F5AE6.

A telephonic replay will be available approximately two hours after the
end of the call through 11:59pm ET on Wednesday 9/19. The replay can be
accessed by dialing 800-585-8367 for U.S. callers or 416-621-4642 for
International callers and using the replay access code: 9489957. The
webcast will be archived on the Investor Relations section of the
Company's website.

About Bovie Medical Corporation:

Bovie Medical Corporation is a leading maker of medical devices and
supplies as well as the developer of J-Plasma® (marketed and
sold under the Renuvion™ Cosmetic Technology brand in the cosmetic
surgery market), a patented plasma-based surgical product for cutting,
coagulation and ablation of soft tissue. J-Plasma technology utilizes a
helium ionization process to produce a stable, focused beam of plasma
that provides surgeons with greater precision, and minimal invasiveness.
The Company also leverages its expertise through original equipment
manufacturing (OEM) agreements with other medical device manufacturers.
For further information about the Company and its products, please refer
to the Bovie Medical Corporation website at www.boviemedical.com.

Cautionary Statement on Forward-Looking
Statements
:

Certain matters discussed in this release and oral statements made from
time to time by representatives of the Company may constitute
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995 and the Federal securities laws. Although
the Company believes that the expectations reflected in such
forward-looking statements are based upon reasonable assumptions, it can
give no assurance that its expectations will be achieved.

Forward-looking information is subject to certain risks, trends and
uncertainties that could cause actual results to differ materially from
those projected. Many of these factors are beyond the Company's ability
to control or predict. Important factors that may cause actual results
to differ materially and that could impact the Company and the
statements contained in this release can be found in the Company's
filings with the Securities and Exchange Commission including the
Company's Report on Form 10-K for the year ended December 31, 2017 and
subsequent Form 10-Q filings. For forward-looking statements in this
release, the Company claims the protection of the safe harbor for
forward-looking statements contained in the Private Securities
Litigation Reform Act of 1995. The Company assumes no obligation to
update or supplement any forward-looking statements whether as a result
of new information, future events or otherwise.

Use of Non-GAAP Financial Measures

We present these non-GAAP measures because we believe these measures are
useful indicators of our operating performance. Our management uses
these non-GAAP measures principally as a measure of our operating
performance and believes that these measures are useful to investors
because they are frequently used by analysts, investors and other
interested parties to evaluate companies in our industry. We also
believe that these measures are useful to our management and investors
as a measure of comparative operating performance from period to period.

The Company has presented the following non-GAAP financial measures in
this press release: adjusted EBITDA from continuing operations. The
Company defines adjusted EBITDA from continuing operations as its
reported net income/(loss) (GAAP), from continuing operations plus
income tax expense, interest expense, net, depreciation and
amortization, stock-compensation expense, and changes in value of
derivative liabilities.

The following unaudited table presents a reconciliation of net loss to
Adjusted EBITDA for our 2018 guidance:

 

BOVIE MEDICAL CORPORATION

RECONCILIATION OF GAAP NET INCOME/(LOSS) FROM CONTINUING
OPERATIONS RESULTS TO NON-GAAP ADJUSTED EBITDA/(LOSS) FROM
CONTINUING OPERATIONS

 
 
  Year Ended
2018
GAAP Net loss from continuing operations $ (12,500

)

 

Interest, net (400 )
Income tax expense (900 )
Depreciation and amortization 750
Stock based compensation 1,550
Change in fair value of derivative liabilities    
Adjusted EBITDA, from continuing operations (11,500 )  
 

The reconciliation assumes the mid-point of the Adjusted EBITDA loss,
from continuing operations range and the midpoint of each component of
the reconciliation, corresponding to guidance of $11.7 million to $11.3
million for 2018.

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