ROCHESTER, N.Y., Oct. 29, 2015 /PRNewswire/
-- VirtualScopics, Inc. (NASDAQ:VSCP), a leading provider of
clinical trial imaging solutions, today reported financial results
for the third quarter and nine months ended September 30, 2015.
Revenues for the third quarter of 2015 increased 18% to
$3,224,407 compared to $2,741,241 for the third quarter of
2014. The company reported positive Adjusted EBITDA in the
third quarter of 2015 of $132,101 as
compared to negative Adjusted EBITDA of $842,772 in the third quarter of
2014. VirtualScopics reported a net loss for the third quarter
of 2015 of $24,779, or $0.02 loss per share, representing a 97%
improvement from a net loss of $955,523, or $0.33
loss per share, reported in the third quarter of 2014.
Revenues for the first nine months of 2015 were $9,057,975, a 17% increase over the $7,742,974 reported for the prior year
period. The company reported a net loss for the first nine
months of 2015 of $1,124,443, or
$0.42 loss per share, representing a
52% improvement from the net loss of $2,333,427, or $0.82 loss per share, for the same period in
2014.
"We are very pleased with the company's strong performance
during the third quarter of 2015," said Eric T. Converse, president and chief executive
officer of VirtualScopics. "This quarter is the first time the
company has achieved positive Adjusted EBITDA since the second
quarter of 2013, a trend we believe will continue to improve for
the remainder of this year and beyond. I am very proud of the
entire VirtualScopics team."
"In addition," Converse continued, "the backlog has grown to
$31.9 million and we believe it will
continue to grow. Our decision to focus on our core
competencies has proven to be the right decision as we continue to
strengthen our relationships with large pharma and develop new
relationships with biotechs. This year we were chosen to be
the sole imaging provider for several of our customers and most
recently we were awarded a phase III oncology trial from yet
another large pharma company."
"We are pleased to have achieved strong margins for both 2015
reporting periods over the prior year's periods," said Jim Groff, VirtualScopics' chief financial
officer. "In the third quarter of 2015, margins improved to
42% as compared to 34% in the third quarter of 2014. For the
first nine months of 2015 margins improved to 37% as compared to
34% achieved last year. The margin improvement thus far in
2015 reflects the increase in the startup of new projects, which
yield higher margins during their startup phase, along with a
continued focus on our core offerings and investment in our
infrastructure and people."
Conference Call and Webcast Information
The company's
management will host a conference and webcast today at 4:30 p.m. ET to discuss the company's 2015 third
quarter and nine months financial results and business
outlook. The conference call dial-in information, webcast URL
and replay information is as follows:
- Domestic Call Dial In: 877-407-8035
- International Call Dial In: 201-689-8035
- Conference Call ID: 13622413
An accompanying slide presentation to enhance managements'
formal remarks, as well as a webcast of the call, can be accessed
at the following links:
http://virtualscopics.investorroom.com/webcasts
or
http://www.investorcalendar.com/IC/CEPage.asp?ID=174428.
A replay and slide presentation will be available one hour after
the conclusion of the conference call for 90 days, and can be
accessed accordingly:
Replay Domestic Dial In:
877-660-6853
Replay International Dial In:
201-612-7415
Replay Conference Call ID: 13622413
The webcast and slide presentation can be accessed at the
following links:
http://virtualscopics.investorroom.com/webcasts
or
http://www.investorcalendar.com/IC/CEPage.asp?ID=174428.
About VirtualScopics, Inc.
VirtualScopics, Inc.
(NASDAQ:VSCP) is a leading provider of clinical trial imaging
solutions to accelerate drug and medical device development. For
risk-averse, time-constrained Clinical Trial Study Teams, Medical
Directors and Imaging Scientists who require quality imaging data
delivered on-time, within budget and on a consistent basis,
VirtualScopics' clinical trial imaging solutions are an inspired
true exception to commonly accepted services provided by other
clinical trial imaging providers. Because of the scientific
and operational flexibility and responsiveness available,
VirtualScopics' clinical trial imaging solutions deliver special
performance advantages compared to other image service providers
that offer common, every day clinical trial imaging
services. For more information about VirtualScopics, Inc.,
please visit www.virtualscopics.com.
Non-GAAP Financial Information
VirtualScopics provides
Adjusted EBITDA as a supplemental measure to Generally Accepted
Accounting Principles ("GAAP") regarding the company's operational
performance. The company defines Adjusted EBITDA as earnings less
interest, taxes (if any), depreciation and amortization as further
adjusted to exclude stock-based compensation expense. This
financial measure excludes the impact of certain items and,
therefore, has not been calculated in accordance with GAAP.
VirtualScopics' method of calculating Adjusted EBITDA may differ
from methods used by other companies, and, as a result, Adjusted
EBITDA measures disclosed herein may not be comparable to other
similarly titled measures used by other companies. VirtualScopics
continues to provide information in accordance with GAAP. However,
given the non-cash variable nature of stock-based compensation
expense and its substantial impact on the overall reported net
income/loss, the company believes it is also helpful for investors
to receive additional information relating more specifically to
VirtualScopics' operating results. Accordingly, VirtualScopics has
presented Adjusted EBITDA which excludes the non-cash effects of
stock-based compensation expense on its financial results.
Management uses Adjusted EBITDA (a) to evaluate the company's
financial performance, (b) to set internal spending budgets, and
(c) to measure operational profitability. Pursuant to the rules and
regulations of the Securities and Exchange Commission (the "SEC"),
VirtualScopics has provided a reconciliation of Adjusted EBITDA to
its most directly comparable GAAP financial measure, net
income/(loss), in the financial reconciliation following the
financial statements below, titled "GAAP Reconciliation: Net
Income/Loss and Adjusted EBITDA."
Forward-looking Statements
The statements contained in
this press release that are not purely historical are
forward-looking statements within the meaning of the Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, and are intended to be
covered by the safe harbors created thereby. These forward-looking
statements include, but are not limited to, statements regarding
continued positive Adjusted EBITDA, the expected benefits of the
Company's investment in infrastructure, sales and marketing
efforts, the continued increase in backlog, expectations for the
startup of new projects and the performance of existing projects
and/or statements preceded by, followed by or that include the
words "believes", "could", "expects", "anticipates", "estimates",
"intends", "plans", "projects", "seeks", or similar
expressions. Forward-looking statements deal with the
company's current plans, intentions, beliefs and
expectations. Investors are cautioned that all
forward-looking statements involve risks and uncertainties that
could cause actual results to differ materially from those in the
forward-looking statements. Many of these risks and
uncertainties are discussed in the company's Annual Report on Form
10-K for the fiscal year ended December 31,
2014 filed with the SEC, and in any subsequent reports filed
with the SEC, all of which are available at the SEC's website at
www.sec.gov. These include without limitation: the risk of
cancellation or delay of customer contracts or that contract awards
do not turn into signed contracts. Other risks include the
company's dependence on its largest customers and risk of contract
performance, protection of our intellectual property and the risks
of infringement on the intellectual property rights of
others. All forward-looking statements speak only as of the
date of this press release and the company undertakes no obligation
to update such forward-looking statements.
For More Information, Contact:
Donna N. Stein, APR, Fellow PRSA
Managing Partner
Donna Stein & Partners
315-361-4672
Email: dstein1@twcny.rr.com
Financial Tables
to Follow
|
|
|
|
VirtualScopics, Inc.
and Subsidiary
|
Condensed
Consolidated Statements of Operations
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
For the Nine
Months Ended
|
|
September
30,
|
|
September
30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
Revenues
|
$ 3,063,053
|
|
$ 2,502,413
|
|
$ 8,558,865
|
|
$ 7,291,415
|
Reimbursement
revenues
|
161,354
|
|
238,828
|
|
499,110
|
|
451,559
|
Total
revenues
|
3,224,407
|
|
2,741,241
|
|
9,057,975
|
|
7,742,974
|
|
|
|
|
|
|
|
|
Cost of
services
|
1,696,940
|
|
1,573,790
|
|
5,208,813
|
|
4,664,548
|
Cost of reimbursement
revenues
|
161,354
|
|
238,828
|
|
499,110
|
|
451,559
|
Total cost of
services
|
1,858,294
|
|
1,812,618
|
|
5,707,923
|
|
5,116,107
|
Gross
profit
|
1,366,113
|
|
928,623
|
|
3,350,052
|
|
2,626,867
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
Research &
development
|
324,669
|
|
307,470
|
|
972,962
|
|
899,655
|
Sales &
marketing
|
277,190
|
|
545,172
|
|
918,567
|
|
1,373,056
|
General &
administrative
|
673,960
|
|
957,795
|
|
2,252,729
|
|
2,452,438
|
Depreciation &
amortization
|
101,459
|
|
74,106
|
|
304,451
|
|
236,135
|
Total operating
expenses
|
1,377,278
|
|
1,884,543
|
|
4,448,709
|
|
4,961,284
|
|
|
|
|
|
|
|
|
Operating
loss
|
( 11,165 )
|
|
( 955,920 )
|
|
( 1,098,657 )
|
|
( 2,334,417 )
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
Other
income
|
15
|
|
1,030
|
|
935
|
|
3,087
|
Interest
expense
|
( 4,332 )
|
|
-
|
|
( 4,332 )
|
|
-
|
Interest expense -
debt issuance costs
|
( 6,968 )
|
|
-
|
|
( 6,968 )
|
|
-
|
Other
expense
|
( 2,329 )
|
|
( 633 )
|
|
( 15,421 )
|
|
( 2,097 )
|
Total other (expense)
income
|
( 13,614 )
|
|
397
|
|
( 25,786 )
|
|
990
|
|
|
|
|
|
|
|
|
Net loss
|
( 24,779 )
|
|
( 955,523 )
|
|
( 1,124,443 )
|
|
( 2,333,427 )
|
|
|
|
|
|
|
|
|
Preferred stock
dividends
|
42,000
|
|
42,000
|
|
126,000
|
|
126,000
|
Net loss available to
common stockholders
|
$ ( 66,779 )
|
|
$ ( 997,523 )
|
|
$( 1,250,443 )
|
|
$( 2,459,427 )
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
basic and diluted shares outstanding
|
2,994,928
|
|
2,994,590
|
|
2,994,928
|
|
2,993,154
|
Basic and diluted
loss per share
|
$ ( 0.02
)
|
|
$ ( 0.33
)
|
|
$ ( 0.42
)
|
|
$ ( 0.82
)
|
VirtualScopics,
Inc.
|
Condensed
Consolidated Balance Sheets
|
|
|
|
|
|
September
30,
|
|
December
31,
|
|
2015
|
|
2014
|
|
(Unaudited)
|
|
|
Assets
|
Current
assets
|
|
|
|
Cash
|
$ 1,699,579
|
|
$ 4,046,599
|
Accounts receivable, net
|
2,548,082
|
|
1,814,143
|
Prepaid expenses and other current assets
|
477,106
|
|
410,188
|
Total
current assets
|
4,724,767
|
|
6,270,930
|
|
|
|
|
Patents, net
|
1,065,494
|
|
1,211,770
|
Property and equipment, net
|
518,572
|
|
330,873
|
Other assets
|
4,133
|
|
10,661
|
Total
assets
|
$ 6,312,966
|
|
$ 7,824,234
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
Current
liabilities
|
|
|
|
Accounts
payable and accrued expenses
|
$
739,240
|
|
$ 1,289,099
|
Accrued
payroll
|
489,361
|
|
681,964
|
Unearned
revenue
|
688,778
|
|
670,332
|
Dividends payable
|
335,333
|
|
335,333
|
Current
portion of note payable
|
59,968
|
|
-
|
Current
portion of capital lease obligation
|
23,830
|
|
-
|
Total current
liabilities
|
2,336,510
|
|
2,976,728
|
|
|
|
|
Note
payable, net of current portion
|
140,392
|
|
-
|
Capital
lease obligation, net of current portion
|
120,945
|
|
-
|
Total
liabilities
|
$ 2,597,847
|
|
$ 2,976,728
|
|
|
|
|
|
|
|
|
Commitments and
Contingencies
|
|
|
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
Convertible preferred
stock, $0.001 par value; 1,000,000 shares
|
|
|
|
authorized at
September 30, 2015 and December 31, 2014;
|
|
|
|
Series C-1 3,000
shares authorized; issued and outstanding,
|
3
|
|
3
|
3,000 shares at
September 30, 2015 and December 31, 2014;
|
|
|
|
liquidation
preference $1,000 per share
|
|
|
|
Series B 6,000 shares
authorized; issued and outstanding, 600
|
1
|
|
1
|
shares at September
30, 2015 and December 31, 2014;
|
|
|
|
liquidation
preference $1,000 per share
|
|
|
|
Series A 8,400 shares
authorized; issued and outstanding,
|
2
|
|
2
|
2,165 shares at
September 30, 2015 and December 31, 2014;
|
|
|
|
liquidation
preference $1,000 per share
|
|
|
|
Series C-2 3,000
shares authorized; issued and outstanding, 0
|
-
|
|
-
|
shares at September
30, 2015 and December 31, 2014;
|
|
|
|
liquidation
preference $1,000 per share
|
|
|
|
Common stock, $0.001
par value; 20,000,000 shares authorized;
|
|
|
|
issued and
outstanding, 2,994,928 shares at September 30,
|
|
|
|
2015 and December 31,
2014
|
2,995
|
|
2,995
|
|
Additional paid in
capital
|
21,967,125
|
|
21,975,069
|
|
Accumulated
deficit
|
( 18,255,007 )
|
|
( 17,130,564 )
|
|
|
Total stockholders'
equity
|
3,715,119
|
|
4,847,506
|
|
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
$ 6,312,966
|
|
$ 7,824,234
|
GAAP
RECONCILIATION:
|
Net Income/Loss and
Adjusted EBITDA
|
|
|
|
|
|
|
Three Months
Ended
|
Three Months
Ended
|
Adjusted EBITDA
(non-GAAP measurement):
|
|
September 30,
2015
|
September 30,
2014
|
|
|
(unaudited)
|
(unaudited)
|
|
|
|
|
Net loss
|
|
$
|
(24,779)
|
$
|
(955,523)
|
Interest income and
other expenses
|
|
|
13,614
|
|
(397)
|
Depreciation and
amortization
|
|
|
101,459
|
|
74,106
|
Stock-based
compensation expense
|
|
|
41,807
|
|
39,042
|
Adjusted
EBITDA
|
|
$
|
132,101
|
$
|
(842,772)
|
Basic and
diluted Adjusted EBITDA per common share, non-GAAP
|
|
$
|
0.04
|
$
|
(0.28)
|
|
|
|
|
|
|
Nine Months
Ended
|
Nine Months
Ended
|
Adjusted EBITDA
(non-GAAP measurement):
|
|
September 30,
2015
|
September 30,
2014
|
|
|
(unaudited)
|
(unaudited)
|
|
|
|
|
Net loss
|
|
$
|
(1,124,443)
|
$
|
(2,333,427)
|
Interest income and
other expenses
|
|
|
25,786
|
|
(990)
|
Depreciation and
amortization
|
|
|
304,451
|
|
236,135
|
Stock-based
compensation expense
|
|
|
118,056
|
|
103,660
|
Adjusted
EBITDA
|
|
$
|
(676,150)
|
$
|
(1,994,622)
|
Basic and
diluted Adjusted EBITDA per common share, non-GAAP
|
|
$
|
(0.23)
|
$
|
(0.67)
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/virtualscopics-inc-reports-2015-third-quarter-revenues-increase-18-from-prior-year-period-and-company-achieves-positive-adjusted-ebitda-300168431.html
SOURCE VirtualScopics, Inc.