Apyx Medical Corporation · NASDAQ:APYX
Apyx Medical — Investor Presentation (November 2021)
27 slides from Apyx Medical's investor presentation, November 2021
Slide 1: November 2021
November 2021
Slide 2: Safe Harbor Statement
Safe Harbor Statement Certain matters discussed in this presentation 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. Alth
Slide 3: Investment Highlights
Investment Highlights Enhanced growth profile and balance sheet fueled by strategic transaction in 2018 $1.5+ Billion potential market opportunity in U.S. cosmetic surgery Renuvion Cosmetic Technology: truly differentiated; unique capabilities in cosmetic surgery procedures Strong commercial tractio
Slide 4: Management Team Overview
Management Team Overview Years of Relevant Representative Mgmt. Team Member Joined Apyx Experience Previous Experience Charlie Goodwin December 25+ Chief Executive Officer 2017 Tara Semb December 25+ Chief Financial Officer 2018 Todd Hornsby August 20+ Executive Vice President 2014 Moshe Citronowicz
Slide 5: Management Team Overview
Management Team Overview Years of Relevant Representative Mgmt. Team Member Joined Apyx Experience Previous Experience Kari Larson July 15+ Senior Director of Clinical Affairs 2019 Priscilla Herpai February 10+ Global Director of Regulatory Affairs 2021 Laura Iversen September 20+ Director of Global
Slide 6: Company Snapshot
Company Snapshot • Medical technology company, formerly known as Bovie Medical Corporation • Two reportable operating segments: • “Advanced Energy” – commercializing the company’s Helium Plasma Technology • A patented technology using helium plasma and proprietary RF waveforms for cutting, coagulati
Slide 7: Enhanced Growth Profile & Balance Sheet Fueled by Strategic Transaction
“Apyx Medical”(1) Enhanced Growth Profile & Balance Sheet Fueled by Strategic Transaction August 30, 2018: Completed divestiture and sale of “Core” operating segment and the Bovie brand to Symmetry Surgical, Inc. for $97M in gross proceeds. • Apyx Medical retained Advanced Energy and OEM operating s
Slide 8: Apyx Medical: Attractive Market Opportunity
Apyx Medical: Attractive Market Opportunity Primary Market Opportunity: Selling Renuvion (powered by J-Plasma Technology) in the U.S. cosmetic surgery market • ~15,000(1) plastic surgeons, cosmetic surgeons & dermatologists Generators: ~$1.3 billion potential market opportunity(2) • Strong annual ad
Slide 9: Revolutionary Technology for the Cosmetic Surgery Market
: Revolutionary Technology for the Cosmetic Surgery Market • Helium plasma and proprietary RF waveform for cutting, coagulating and ablating soft tissue • Offers ability to deliver heat to tissue in a way never before possible: 1. Unique heating with helium plasma and proprietary RF energy and near
Slide 10: Solving the Tissue Temperature Dilemma
: Solving the Tissue Temperature Dilemma • Traditional mono- and bipolar RF technologies: - Rely on full thickness heating, which results in inefficient and slow heat delivery - Difficult to achieve ideal treatment temperature range for subdermal tissue contraction while maintaining safe skin surfac
Slide 11: New Renuvion APR Handpieces
New Renuvion APR Handpieces (“Apyx Plasma/RF Handpiece”) Designed by Physicians, for Physicians • Launched 15cm handpiece in Q1’20 and 27cm handpiece in Q2’20 • Key Benefits: - Designed specifically for percutaneous use - Smaller diameter (3mm vs 5mm) with rounded tip - Improved ergonomics - Improve
Slide 12: Physician Feedback
Physician Feedback “Renuvion has already made such an impact on my business that patients are coming in the door and asking for it by name.” -Paul Ruff, MD Plastic Surgeon “Renuvion is one of the best investments in my practice that I’ve ever made. I’m expanding my usage with it every day and I’ve e
Slide 13: Commercial Strategy
Commercial Strategy U.S. Commercial Strategy: • Marketing and selling Renuvion to “early adopters” in the U.S. cosmetic surgery market • Employing a hybrid selling model comprised of(1): - 31 field-based selling professionals - 5 sales managers - 2 independent sales agencies • Driving growth by expa
Slide 14: Establishing Foundation for Long-term Growth
Establishing Foundation for Long-term Growth Focused on building support to facilitate broad-based adoption of Renuvion by: 1. Enhancing physician and practice support for cosmetic surgery customers 2. Expanding clinical support for Renuvion in cosmetic surgery procedures 3. Formulizing regulatory s
Slide 15: Enhancing physician and practice support
Establishing Foundation for Long-term Growth 1. Enhancing physician and practice support for cosmetic surgery customers Establishing “Renuvion Cosmetic Technology” brand: • Channel-specific branding for the cosmetic surgery market • Created for physicians, with their input • Designed to: - Enhance p
Slide 16: Expanding clinical support for Renuvion
Establishing Foundation for Long-term Growth 2. Expanding clinical support for Renuvion in cosmetic surgery procedures • Total Clinical Publications – • 17 published manuscripts and book chapters supporting the use of Renuvion in subdermal procedures • 11 published manuscripts supporting the use of
Slide 17: Formulizing regulatory strategy in the cosmetic surgery market
Establishing Foundation for Long-term Growth 3. Formulizing regulatory strategy in the cosmetic surgery market • Current focus areas: • US: Pursue specific clinical indications for the use of Renuvion in target procedures - Initial U.S. target: dermal resurfacing procedures - May, 2021: submitted 51
Slide 18: Improving manufacturing capabilities and efficiencies
Establishing Foundation for Long-term Growth 4. Improving manufacturing capabilities and efficiencies • Focused on identifying new ways to improve manufacturing capabilities and implement lean initiatives - Appointed Craig Swandal to the Board of Directors and Laura Iversen as Director of Global Ope
Slide 19: Financial Results Summary
Financial Results Summary ($ in 000's) Q3 FY 2021 2020 2020 2019 Revenue $11,831 $6,954 $27,711 $28,235 Revenue Growth (Y/Y) 70.1% -1.9% Cost of Goods Sold 3,766 2,229 10,207 9,141 Gross Profit $8,065 $4,725 $17,504 $19,094 Gross Margin 68.2% 67.9% 63.2% 67.6% Total Other Costs and Expenses 12,024 9
Slide 20: FY'21 Financial Guidance
FY’21 Financial Guidance On November 11, 2021, the Company updated its fiscal year 2021 financial guidance: • Total revenue in the range of $44 million to $45 million, representing growth of 59% to 62% year-over-year. The Company’s prior guidance range for total revenue was $40.6 million to $42.6 mi
Slide 21: Appendix
Appendix
Slide 22: Balance Sheet (Slide 1 of 2)
Balance Sheet (Slide 1 of 2) (In thousands) September 30, 2021 December (Unaudited) 31, 2020 ASSETS Current assets: Cash and cash equivalents $ 30,898 $ 41,915 Trade accounts receivable, net of allowance of $360 and $300 11,444 8,399 Income tax receivables 7,654 7,654 Other receivables 873 1,275 Inv
Slide 23: Balance Sheet (Slide 2 of 2)
Balance Sheet (Slide 2 of 2) September (In thousands) 30, 2021 December (Unaudited) 31, 2020 LIABILITIES AND EQUITY Current liabilities: Accounts payable $ 3,044 $ 1,511 Accrued expenses and other liabilities 8,324 7,278 Current portion of operating lease liabilities 125 126 Current portion of finan
Slide 24: Income Statement
Income Statement Three Months Ended September 30, Nine months ended September 30, (In thousands) 2021 2020 2021 2020 Sales $ 11,831 $ 6,954 $ 31,693 $ 16,247 Cost of sales 3,775 2,229 10,243 6,444 Gross profit 8,056 4,725 21,450 9,803 Other costs and expenses: Research and development 1,175 1,047 3,
Slide 25: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation: Net Loss to Adjusted EBITDA (Unaudited) (In thousands) Three Months Ended Nine months ended (In thousands) September 30, September 30, 2021 2020 2021 2020 Net loss attributable to stockholders $ (4,222) $ (3,728) $ (13,169) $ (10,369) Interest income (2) (10) (9) (23
Slide 26: GAAP to Non-GAAP Reconciliation: FY'21 Financial Guidance
GAAP to Non-GAAP Reconciliation: FY’21 Financial Guidance (Unaudited) (In thousands) The following unaudited table presents a reconciliation of net loss to Adjusted EBITDA for the Company’s 2021 guidance: Year Ending (In millions) December 31, 2021 Net loss attributable to stockholders $ (17.5) Inte
Slide 27: MEDICAL
MEDICAL