Exhibit 99.1

Ra Medical Systems Reports Third Quarter 2018 Results

 

-Revenue increased nearly 60% year-over-year to $2.1 million

-Increased DABRA usage agreements 325% quarter-over-quarter

-Announced approval for long-term revascularization registry of DABRA system

CARLSBAD, Calif., Nov. 13, 2018 -- Ra Medical Systems, Inc. (NYSE: RMED) (the Company), a commercial-stage medical device company leveraging its advanced, minimally-invasive excimer laser-based platform for use in the treatment of vascular and dermatological diseases, today reported its financial results for the three and nine-month period ended September 30, 2018.

 

“The third quarter of 2018 was pivotal in our Company’s history as we commenced trading on the New York Stock Exchange after pricing our initial public offering (IPO). With increased capital, we are focused on growing our business by increasing our direct sales force and ramping up our marketing efforts,” said Dean Irwin, Chief Executive Officer, Ra Medical Systems.

 

“With regulatory clearance in the U.S. and Europe, we are dedicating resources to increase both the awareness and adoption of our DABRA system to treat Peripheral Artery Disease (PAD), a disease affecting approximately 17.6 million people in the United States.” concluded Mr. Irwin.

 

Operational Highlights:

 

Signed 26 new DABRA usage agreements during the quarter increasing the total to 34 agreements as of September 30, 2018

 

Successfully completed IPO, raising net proceeds of approximately $67.3 million

 

Announced approval for the retrospective long-term revascularization study of DABRA titled REvascularization RateS and Clinical OUtcomes with DABRA Laser. A Long-Term 2-year Study (RESULTS). This registry is being conducted to measure the benefit and the safety profile of DABRA over a longer time frame than our pivotal trial. We intend to provide updates on a period basis throughout the study.

 

Financial Results for Third Quarter of 2018

 

For the third quarter of 2018, revenue increased 67% sequentially to $2.1 million, compared with $1.2 million in the previous quarter, and increased 60% from $1.3 million in the third quarter of 2017. Vascular revenue increased to $789,000, compared with $94,000 in the previous quarter, and increased from $43,000 in the third quarter of 2017. Dermatology revenue increased to $1.3 million, from $1.1 million in the previous quarter and from $1.2 million in the third quarter of 2017.

 

Gross profit margin for the third quarter of 2018 was 38.0%, compared with 46.3% in the third quarter of 2017.

 

For the third quarter of 2018, operating expenses were $5.6 million, compared with $2.3 million in the third quarter of 2017.

 

Net loss for the third quarter of 2018 was $4.8 million, compared with a net loss of $1.7 million in third quarter of 2017.


 

 

At September 30, 2018, the Company had cash and cash equivalents of approximately $4.9 million. On October 1, 2018, the Company received net proceeds of approximately $67.3 million from the completion of its IPO.  

 

Conference Call and Webcast Information

The Company will host a conference call with the investment community on Tuesday, November 13th, at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time featuring remarks by Dean Irwin, Chief Executive Officer and Andrew Jackson, Chief Financial Officer. The dial-in numbers for the conference call are +1-877-407-4018 (U.S. Toll Free) or +1-201-689-8471 (International).

 

Please call at least five minutes before the scheduled start time. The conference call will also be available via webcast, which can be accessed through the Investor Relations section of Ra Medical's website, https://ir.ramed.com/. Please allow extra time prior to the call to visit the site and download any necessary software to listen to the live broadcast.

 

For interested individuals unable to join the conference call, a replay of the call will be available through November 27, 2018, at +1-844-512-2921 (U.S. Toll Free) or +1-412-317-6671 (International). Participants must use the following code to access the replay of the call: 13684766. The online archive of the webcast will be available on https://ir.ramed.com/ir-calendar for 30 days following the call.

 

About Ra Medical Systems

Ra Medical Systems was founded in 2002 and is a commercial-stage medical device company leveraging its advanced excimer laser-based platform for use in the treatment of dermatologic and vascular diseases. DABRA, launched in 2017, is used by physicians as a tool in the endovascular treatment of vascular blockages resulting from lower extremity vascular disease. DABRA quickly, photochemically dissolves plaque to its fundamental chemical components. Pharos launched in 2004 and is used as a tool in the treatment of dermatological skin disorders, including psoriasis and vitiligo.

 

For more information please visit https://www.ramed.com.

 

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, among others, statements related to future growth of the Company’s business; business strategy; the Company’s expectation to increase its sales force and marketing efforts; and the allocation of the Company’s resources to increase awareness.  These forward-looking statements involve risks and uncertainties, as well as assumptions which, if they do not fully materialize or prove incorrect, could cause the Company’s results to differ materially from those expressed or implied by such forward-looking statements. The risks and uncertainties that could cause the Company’s results to differ materially from those expressed or implied by such forward-looking statements include successfully marketing and selling DABRA; gaining market acceptance for DABRA by physicians and patients; maintaining relationships with physicians; physicians understanding how to use the Company’s products; the risk of manufacturing delays; the Company’s ability to compete successfully; the Company’s ability to attract and retain highly qualified personnel; risks related to doing business internationally; successful protecting our


 

intellectual property; remediating the material weakness in our internal control over financial reporting and maintaining effective internal controls; and general market, political, economic, and business conditions, as well as those risks and uncertainties included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s prospectus filed with the SEC on September 27, 2018 pursuant to Rule 424(b) under the Securities Act of 1933, as amended, and in its Form 10-Q that will be filed for the quarter ended September 30, 2018, which should be read in conjunction with these financial results. Both documents are or will be available on the Investor Relations section of the Company’s website at www.ir.ramed.com and on the SEC website at www.sec.gov. All forward-looking statements in this press release are based on information available to the Company as of the date hereof, and the Company does not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made, except as required by law.

 

Ra Medical investors and others should note that we announce material information to the public about the Company through a variety of means, including our website (https://www.ramed.com), our investor relations website (https://ir.ramed.com/), press releases, SEC filings, and public conference calls in order to achieve broad, non-exclusionary distribution of information to the public and to comply with our disclosure obligations under Regulation FD. We encourage our investors and others to monitor and review the information we make public in these locations as such information could be deemed to be material information. Please note that this list may be updated from time to time.

 


 

Ra Medical Systems, Inc.

GAAP Condensed Balance Sheets

(in thousands)

 

 

 

September 30,

 

 

December 31,

 

 

 

2018

 

 

2017

 

 

 

(Unaudited)

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

Current Assets

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

4,915

 

 

$

8,237

 

Accounts receivable, net

 

 

1,346

 

 

 

517

 

Inventories, net

 

 

1,281

 

 

 

1,196

 

Prepaid expenses and other current assets

 

 

237

 

 

 

92

 

Total current assets

 

 

7,779

 

 

 

10,042

 

Property and equipment, net

 

 

2,809

 

 

 

1,159

 

Other non-current assets

 

 

3,601

 

 

 

68

 

TOTAL ASSETS

 

$

14,189

 

 

$

11,269

 

LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)

 

 

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

 

 

 

Accounts payable

 

$

3,340

 

 

$

426

 

Accrued expenses

 

 

1,640

 

 

 

324

 

Current portion of deferred revenue

 

 

1,751

 

 

 

1,714

 

Current portion of equipment financing

 

 

30

 

 

 

44

 

Other current liabilities

 

 

72

 

 

 

125

 

Total current liabilities

 

 

6,833

 

 

 

2,633

 

Deferred revenue

 

 

768

 

 

 

775

 

Equipment financing

 

 

 

 

 

19

 

Stock-based compensation liability

 

 

 

 

 

15,376

 

Other liabilities

 

 

107

 

 

 

81

 

Total liabilities

 

 

7,708

 

 

 

18,884

 

Total stockholders’ equity (deficit)

 

 

6,481

 

 

 

(7,615

)

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

   (DEFICIT)

 

$

14,189

 

 

$

11,269

 

 


 

Ra Medical Systems, Inc.

GAAP Condensed Statements of Operations

(in thousands, except per share data)

(Unaudited)

 

 

 

Three months ended

September 30,

 

 

Nine months ended

September 30,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Net revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product sales

 

$

1,248

 

 

$

587

 

 

$

1,958

 

 

$

1,888

 

Service and other

 

 

816

 

 

 

704

 

 

 

2,311

 

 

 

2,045

 

Total net revenue

 

 

2,064

 

 

 

1,291

 

 

 

4,269

 

 

 

3,933

 

Cost of revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product sales

 

 

886

 

 

 

358

 

 

 

1,875

 

 

 

1,533

 

Service and other

 

 

394

 

 

 

335

 

 

 

1,131

 

 

 

974

 

Total cost of revenue

 

 

1,280

 

 

 

693

 

 

 

3,006

 

 

 

2,507

 

Gross profit

 

 

784

 

 

 

598

 

 

 

1,263

 

 

 

1,426

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative

 

 

5,366

 

 

 

1,904

 

 

 

15,621

 

 

 

11,932

 

Research and development

 

 

224

 

 

 

413

 

 

 

1,532

 

 

 

4,159

 

Total operating expenses

 

 

5,590

 

 

 

2,317

 

 

 

17,153

 

 

 

16,091

 

Operating loss

 

 

(4,806

)

 

 

(1,719

)

 

 

(15,890

)

 

 

(14,665

)

Other expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

1

 

 

 

1

 

 

 

2

 

 

 

3

 

Total other expense

 

 

1

 

 

 

1

 

 

 

2

 

 

 

3

 

Loss before income tax expense

 

 

(4,807

)

 

 

(1,720

)

 

 

(15,892

)

 

 

(14,668

)

Income tax expense

 

 

 

 

 

 

 

 

3

 

 

 

1

 

Net loss

 

 

(4,807

)

 

 

(1,720

)

 

 

(15,895

)

 

 

(14,669

)

Basic and diluted net loss per share

 

$

(0.59

)

 

$

(0.23

)

 

$

(1.97

)

 

$

(1.96

)

Basic and diluted weighted average common shares

   outstanding

 

 

8,204

 

 

 

7,479

 

 

 

8,081

 

 

 

7,469

 

 

EBITDA and Adjusted EBITDA are performance measures that provide supplemental information we believe useful to analysts and investors to evaluate our ongoing results of operations, when considered alongside other GAAP measures.  These measures are intended to aid investors in better understanding our current financial performance and prospects for the future as seen through the eyes of management. EBITDA excludes certain recurring non-cash charges, such as depreciation and amortization. Adjusted EBITDA further excludes stock-based compensation expense. We believe that these non-GAAP financial measures facilitate comparisons with our historical results and with the results of peer companies who present similar measures (although other companies may define non-GAAP measures differently than we define them, even when similar terms are used to identify such measures). However, these non-GAAP financial measures are not intended to be a substitute for those reported in accordance with U.S. GAAP. However, these non-GAAP financial measures are not intended to be a substitute for those reported in accordance with U.S. GAAP.  The following table presents a reconciliation of Adjusted EBITDA to net loss, the most comparable GAAP financial measure, for each of the periods presented:


 

 

 

 

Three months ended

September 30,

 

 

Nine months ended

September 30,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

 

 

(in thousands)

 

Statement of Operations Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(4,807

)

 

$

(1,720

)

 

$

(15,895

)

 

$

(14,669

)

Depreciation and amortization

 

 

157

 

 

 

62

 

 

 

388

 

 

 

147

 

Interest expense

 

 

1

 

 

 

1

 

 

 

2

 

 

 

3

 

Income tax expense

 

 

0

 

 

 

 

 

 

3

 

 

 

1

 

EBITDA

 

 

(4,649

)

 

 

(1,657

)

 

 

(15,502

)

 

 

(14,518

)

Stock-based compensation

 

 

1,510

 

 

 

627

 

 

 

6,714

 

 

 

11,528

 

Adjusted EBITDA

 

$

(3,139

)

 

$

(1,030

)

 

$

(8,788

)

 

$

(2,990

)

 

For more information, please contact:

 

Company Contact
Ra Medical Systems, Inc.
Jeffrey Kraws
760-707-7516

 

Investor Contact
KCSA Strategic Communications
Allison Soss / David Hanover
212-896-1267 / 212-896-1220
ramedir@kcsa.com

Source: Ra Medical Systems, Inc.