Sensus Healthcare, Inc. (NASDAQ:SRTS) Q4 2022 Earnings Call Transcript

Alexander Nowak: That’s very helpful. I mean — and it still sounds like it’s still building. So I mean it kind of leads into my second question here. You committed to growth this year on the top line and also on the bottom line. But on the top line, how do we think about that growth? You’ve got ramping on the dermatology side. You’ve got this radiation oncology piece started to flow through, new products coming in the second half. Just how do we start to think about growth for this year?

Joseph Sardano: Well, again, we haven’t provided any kind of guidance, and I don’t know if we’re going to get to the guidance piece because I think sometimes there’s levels of expectation that — I don’t know how they’re derived, but there’s levels of expectation for us that might not be as accurate as they should be. But I can assure you this, and I think that you’ve been around for a long time, Alex, and you know what kind of a company we are. We’re ultra conservative, but we work very, very hard, and we try to make the right decisions all the time to grow our business, and we’re always thinking of the future. So how do I think of future business? I have to look at it, and I have to look at my team and we have to challenge ourselves to how do we do better the previous year.

And I think that we’ll do better than the previous year. We keep adding products that will add revenue. We know that, that revenue based on our FDA submissions are going to probably happen around the fourth quarter of this year where we’re going to have any kind of impact whatsoever. So I would say that our SRT business will continue to grow organically, and we’ll continue to grow our top line as well as our bottom line as we continue to pursue these technologies that we’ll add to our portfolio. And again, we want to add technologies that are different, that are better than what anybody else has and that provides what we think is the same theme, and that is a noninvasive way of a treatment that provides the patient with no pain in their treatment, a much better experience and with better results.

So that’s what we’re looking for. That’s our goal.

Alexander Nowak: That’s helpful. And then priorities for capital allocation, obviously, you did the share buyback here, but you reinvested cash back into the business. It goes more towards M&A on the go forward, just the current thoughts?

Joseph Sardano: The M&A is always something that’s on our minds, and we’ve had the opportunity to evaluate a lot of companies this year. We’ve talked to a lot of principles in those companies, and you still have a lot of people that believe their company is worth probably a little more than what we’re willing to pay. And one of the things that we’re committed to is, we do not want to go into debt. We do not want to dilute our existing shareholders. So with that in mind, we’re looking for an opportunity that’s going to add to our portfolio while at the same time adding revenue to what we’re trying to accomplish with exceptional products. And so rather than biting off more than we can chew, we’re looking at technologies that could add to our portfolio that we can get fairly reasonably, that we can find a payback or an ROI in a very rapid succession.

And so what we look for is something that we can pay back within 6 to 12 months, and that’s being very, very aggressive for what we’re trying to do.

Alexander Nowak: And then just real quick, can you maybe comment on the accounts receivable balance? It did spike up here in Q4. The days sales outstanding did increase. So just curious if there’s any onetime items in that number there?