AirSculpt Technologies, Inc. (NASDAQ:AIRS)(“AirSculpt” or the
“Company”), a national provider of premium body contouring
procedures, today announced results for the third quarter ended
September 30, 2021.
- Cases increased 60.4% from prior year period to 2,743
cases
- Revenue increased 94.3% from prior year period to $34.7 million
- Same-center revenue per case increased 20.3% from the prior
year period
- Same-center cases increased 29.9% from the prior year
period
- Net income was $8.1 million as compared to the prior year
period of $2.9 million
- Adjusted EBITDA increased to $12.1 million, growth of 127.2%
over the prior year period
- Closed initial public offering and received net proceeds of
$13.5 million after deducting underwriting fees and related
offering expenses
“We are very pleased with our financial performance for the
third quarter as we continue to see strong demand for our dramatic
body contouring services,” said Dr. Aaron Rollins, Chief Executive
Officer of AirSculpt Technologies. “It’s clearly been an exciting
year for the company. We completed our IPO on October 28th and
recently we announced the opening of our two newest centers in
Miami Beach and Salt Lake City bringing our total center count to
18 as of today.”
Ron Zelhof, Chief Operating Officer, commented, “Our revenues
continue to be fueled by both volume increases and higher revenue
per case compared to prior periods. Patients are continuing to have
multiple areas treated at one time which we attribute to a more
knowledgeable patient about what is possible with AirSculpt. We
believe that our dedicated sales team alongside of our marketing
efforts, including AirSculpt TV, are driving much of the rate
growth we are experiencing.”
Third Quarter 2021 Results
Case volume was 2,743 for the third quarter of 2021,
representing growth of 60.4% over the prior year period case volume
of 1,710. Revenue for the third quarter of 2021 increased by 94.3%
to $34.7 million from $17.8 million in the prior year period.
Same-center cases and revenue per case for the third quarter of
2021 were up 29.9% and 20.3%, respectively, over the prior year
period. Net income for the quarter grew to $8.1 compared to $2.9
million in the prior year period and pro forma net income increased
to $6.1 million from $2.4 million. For the third quarter 2021, the
Company’s adjusted EBITDA grew 127.2% to $12.1 million as compared
to $5.3 million for the prior year period.
Year to Date 2021 Results
Case volume was 8,165 for year-to-date 2021, representing growth
of 110.5% over the prior year period case volume of 3,879. Revenue
year-to-date 2021 increased by 139.9% to $95.8 million from $39.9
million in the prior year period. Same-center cases and revenue per
case year-to-date 2021 were up 75.2% and 12.7%, respectively, over
the prior year period. Year-to-date net income grew to $24.7
million compared to $2.0 million from the prior year period and pro
forma net income increased to $18.8 million from $1.5 million over
the prior year period. For year-to-date 2021, the Company’s
adjusted EBITDA grew 283.0% to $35.9 million as compared to $9.4
million for the prior year period.
2021 Outlook
The Company projects full year revenue to be approximately $130
million and full year Adjusted EBITDA to be approximately $46
million.
Liquidity
As of September 30, 2021, the Company had $20.7 million in cash
and cash equivalents and $5.0 million of borrowing capacity under
its revolving credit facility.
The Company had $8.5 million and $5.1 million in operating cash
flows for the third quarter 2021 and 2020, respectively. The
increase is primarily driven by improved income from operations
related to opening three new centers in the 12 months ended
September 30, 2021 and an increase in same center volumes and
revenue which were impacted by the COVID-19 pandemic in the second
and third quarters of 2020.
Conference Call Information
AirSculpt will hold a conference call today, December 3, 2021 at
8:30 am (Eastern Time). The conference call can be accessed live
over the phone by dialing 1-877-407-9716 or for international
callers, 1-201-493-6779. A replay will be available two hours after
the call and can be accessed by dialing 1-844-512-2921, or for
international callers, 1-412-317-6671. The passcode for the live
call and the replay is 13725116. The replay will be available until
December 10, 2021.
Interested investors and other parties may also listen to a
simultaneous webcast of the conference call by logging onto the
Investor Relations section of the Company’s website at
https://investors.elitebodysculpture.com/. The online replay will
be available for one week following the call.
About AirSculpt Technologies
AirSculpt Technologies is an experienced, fast-growing national
provider of body contouring procedures delivering a premium
consumer experience under its brand, Elite Body Sculpture. At Elite
Body Sculpture, we provide custom body contouring using our
proprietary AirSculpt® method that removes unwanted fat in a
minimally invasive procedure, producing dramatic results. It is our
mission to generate the best results for our patients.
Forward-Looking Statements
This press release contains forward-looking statements. In some
cases, you can identify these statements by forward-looking words
such as “may,” “might,” “will,” “should,” “expects,” “plans,”
“anticipates,” “believes,” “estimates,” “predicts,” “potential” or
“continue,” the negative of these terms and other comparable
terminology. These forward-looking statements, which are subject to
risks, uncertainties, and assumptions about us, may include
projections of our future financial performance, our anticipated
growth strategies, and anticipated trends in our business. These
statements are only predictions based on our current expectations
and projections about future events. There are important factors
that could cause our actual results, level of activity,
performance, or achievements to differ materially from the results,
level of activity, performance or achievements expressed or implied
by the forward-looking statements, including those factors
discussed in the section titled “Risk Factors” in our Registration
Statement (Registration No. 333-260067) on Form S-1.
Our future results could be affected by a variety of other
factors, including, but not limited to, failure to open and operate
new centers in a timely and cost-effective manner; shortages or
quality control issues with third-party manufacturers or suppliers;
competition for surgeons; litigation or medical malpractice claims;
inability to protect the confidentiality of our proprietary
information; changes in the laws governing the corporate practice
of medicine or fee-splitting; changes in the regulatory, economic
and other conditions of the states and jurisdictions where our
facilities are located; and business disruption or other losses
from war, pandemic, terrorist acts or political unrest.
The risk factors discussed in “Risk Factors” in our Registration
Statement (Registration No. 333-260067) on Form S-1 and this
Quarterly Report on Form 10-Q could cause our results to differ
materially from those expressed in the forward-looking statements
made in this Quarterly Report on Form 10-Q.
There also may be other risks that are currently unknown to us
or that we are unable to predict at this time.
Although we believe the expectations reflected in the
forward-looking statements are reasonable, we cannot guarantee
future results, level of activity, performance, or achievements.
Moreover, neither we nor any other person assumes responsibility
for the accuracy and completeness of any of these forward-looking
statements. Forward-looking statements speak only as of the date
they were made, and we are under no duty to update any of these
forward-looking statements after the date of this press release to
conform our prior statements to actual results or revised
expectations.
Use of Non-GAAP Financial Measures
The Company reports financial results in accordance with
generally accepted accounting principles in the United States
(“GAAP”), however, the Company believes the evaluation of ongoing
operating results may be enhanced by a presentation of Adjusted
EBITDA and Adjusted EBITDA Margin, which are non-GAAP financial
measures.
These non-GAAP financial measures are not intended to replace
financial performance measures determined in accordance with GAAP.
Rather, they are presented as supplemental measures of the
Company's performance that management believes may enhance the
evaluation of the Company's ongoing operating results. These
non-GAAP financial measures are not presented in accordance with
GAAP, and the Company’s computation of these non-GAAP financial
measures may vary from similar measures used by other companies.
These measures have limitations as an analytical tool and should
not be considered in isolation or as a substitute or alternative to
revenue, net income, operating income, cash flows from operating
activities, total indebtedness or any other measures of operating
performance, liquidity or indebtedness derived in accordance with
GAAP.
EBS Intermediate Parent, LLC and
SubsidiariesSelected Consolidated Financial
Data
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
($000s) |
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
Revenue |
$ |
34,651 |
|
$ |
17,837 |
|
$ |
95,759 |
|
$ |
39,923 |
Operating expenses: |
|
|
|
|
|
|
|
Cost of service (exclusive of depreciation and amortization shown
below) |
|
11,410 |
|
|
6,758 |
|
|
31,462 |
|
|
15,853 |
Selling, general and administrative |
|
11,980 |
|
|
6,199 |
|
|
30,926 |
|
|
16,118 |
Loss on debt modification |
|
- |
|
|
- |
|
|
682 |
|
|
- |
Depreciation and amortization |
|
1,641 |
|
|
1,432 |
|
|
4,664 |
|
|
4,165 |
Total operating expenses |
|
25,031 |
|
|
14,389 |
|
|
67,734 |
|
|
36,136 |
Income from operations |
|
9,620 |
|
|
3,448 |
|
|
28,025 |
|
|
3,787 |
Interest expense, net |
|
1,566 |
|
|
529 |
|
|
3,323 |
|
|
1,776 |
Net income |
|
8,054 |
|
|
2,919 |
|
|
24,702 |
|
|
2,011 |
Pro forma income tax
expense |
|
1,933 |
|
|
496 |
|
|
5,908 |
|
|
496 |
Pro forma net income |
$ |
6,121 |
|
$ |
2,423 |
|
$ |
18,794 |
|
$ |
1,515 |
EBS Intermediate Parent, LLC and
SubsidiariesSelected Financial and Operating
Data(Dollars in thousands, except per case
amounts)
|
September 30,2021 |
|
December 31,2020 |
Balance Sheet Data (at
period end): |
|
|
|
Cash and cash equivalents |
$ |
20,738 |
|
$ |
10,379 |
Total current assets |
|
21,563 |
|
|
11,563 |
Total assets |
|
192,245 |
|
|
179,610 |
|
|
|
|
Current portion of long-term
debt |
|
850 |
|
|
400 |
Deferred revenue and patient
deposits |
|
4,334 |
|
|
3,233 |
Total current liabilities |
|
13,076 |
|
|
9,457 |
Long-term debt, net |
|
82,118 |
|
|
32,119 |
Total liabilities |
|
110,231 |
|
|
55,934 |
|
|
|
|
Member’s equity |
|
82,014 |
|
|
123,676 |
|
Three Months Ended September
30, |
|
Nine Months Ended September 30, |
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
Cash Flow
Data: |
|
|
|
|
|
|
|
Net cash provided by (used
in): |
|
|
|
|
|
|
|
Operating activities |
$ |
8,525 |
|
|
$ |
5,074 |
|
|
$ |
32,339 |
|
|
$ |
6,757 |
|
Investing activities |
|
(1,577 |
) |
|
|
(823 |
) |
|
|
(4,726 |
) |
|
|
(2,543 |
) |
Financing activities |
|
(3,058 |
) |
|
|
(394 |
) |
|
|
(17,254 |
) |
|
|
(2,428 |
) |
|
Three Months Ended September
30, |
|
Nine Months Ended September 30, |
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
Other
Data: |
|
|
|
|
|
|
|
Number of centers as of the
end of the period |
|
16 |
|
|
|
13 |
|
|
|
16 |
|
|
|
13 |
|
Number of procedure rooms as
of the end of the period |
|
27 |
|
|
|
21 |
|
|
|
27 |
|
|
|
21 |
|
|
|
|
|
|
|
|
|
Cases |
|
2,743 |
|
|
|
1,710 |
|
|
|
8,165 |
|
|
|
3,879 |
|
Revenue per case |
$ |
12,632 |
|
|
$ |
10,431 |
|
|
$ |
11,728 |
|
|
$ |
10,292 |
|
Adjusted EBITDA (1) |
$ |
12,116 |
|
|
$ |
5,333 |
|
|
$ |
35,899 |
|
|
$ |
9,373 |
|
Adjusted EBITDA margin
(2) |
|
35.0 |
% |
|
|
29.9 |
% |
|
|
37.5 |
% |
|
|
23.5 |
% |
(1) A reconciliation of this non-GAAP financial measure appears
below.
(2) Defined as Adjusted EBITDA as a percentage of revenue.
EBS Intermediate Parent, LLC and
SubsidiariesSupplemental
Information(Dollars in thousands, except per case
amounts)
|
Three Months Ended September
30, |
|
Nine Months Ended September
30, |
|
|
2021 |
|
|
|
2020 |
|
|
2021 |
|
|
|
2020 |
Same-center
Information (1): |
|
|
|
|
|
|
|
Cases |
|
2,174 |
|
|
|
1,674 |
|
|
6,733 |
|
|
|
3,843 |
Case growth |
|
29.9 |
% |
|
N/A |
|
|
75.2 |
% |
|
N/A |
Revenue per case |
$ |
12,519 |
|
|
$ |
10,408 |
|
$ |
11,591 |
|
|
$ |
10,281 |
Revenue per case growth |
|
20.3 |
% |
|
N/A |
|
|
12.7 |
% |
|
N/A |
Number of facilities |
|
11 |
|
|
|
11 |
|
|
11 |
|
|
|
11 |
Number of total procedure
rooms |
|
18 |
|
|
|
18 |
|
|
18 |
|
|
|
18 |
(1): |
For the three months ended September 30, 2021 and 2020, we define
same-center case and revenue growth as the growth in each of our
cases and revenue at facilities that have been owned and operated
since July 1, 2020. We define same-center facilities and procedure
rooms as facilities and procedure rooms that have been owned or
operated since July 1, 2020.For the nine months ended
September 30, 2021 and 2020, we define same-center case and
revenue growth as the growth in each of our cases and revenue at
facilities that have been owned and operated since January 1, 2020.
We define same-center facilities and procedure rooms as facilities
and procedure rooms that have been owned or operated since
January 1, 2020. |
EBS Intermediate Parent, LLC and
SubsidiariesReconciliation of Non-GAAP Financial
Measures(Dollars in thousands)
The Company reports financial results in
accordance with GAAP, however, management believes the evaluation
of our ongoing operating results may be enhanced by a presentation
of Adjusted EBITDA and Adjusted EBITDA Margin, which are non-GAAP
financial measures.
The Company defines Adjusted EBITDA as net
income excluding depreciation and amortization, net interest
expense, loss on debt modification, sponsor management fee,
pre-opening de novo and relocation costs, restructuring and related
severance costs, and unit-based compensation. The Company includes
Adjusted EBITDA because it is an important measure on which
management assesses and believes investors should assess the
Company’s operating performance. The Company considers Adjusted
EBITDA to be an important measure because it helps illustrate
underlying trends in the Company’s business and historical
operating performance on a more consistent basis. Adjusted EBITDA
has limitations as an analytical tool including: (i) Adjusted
EBITDA does not include results from unit-based compensation and
(ii) Adjusted EBITDA does not reflect interest expense on our
debt or the cash requirements necessary to service interest or
principal payments.
The Company defines Adjusted EBITDA Margin as
Adjusted EBITDA as a percentage of revenue. The Company includes
Adjusted EBITDA Margin because it is an important measure on which
management assesses and believes investors should assess operating
performance. The Company considers Adjusted EBITDA Margin to be an
important measure because it helps illustrate underlying trends in
the Company’s business and historical operating performance on a
more consistent basis.
|
Three Months EndedSeptember 30, |
|
Nine Months EndedSeptember 30, |
($ in thousands) |
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
Net income |
$ |
8,054 |
|
|
$ |
2,919 |
|
|
$ |
24,702 |
|
|
$ |
2,011 |
|
Plus |
|
|
|
|
|
|
|
Depreciation and amortization |
|
1,641 |
|
|
|
1,432 |
|
|
|
4,664 |
|
|
|
4,165 |
|
Interest expense, net |
|
1,566 |
|
|
|
529 |
|
|
|
3,323 |
|
|
|
1,776 |
|
Loss on debt modification |
|
- |
|
|
|
- |
|
|
|
682 |
|
|
|
- |
|
Pre-opening de novo and relocation costs |
|
307 |
|
|
|
247 |
|
|
|
1,289 |
|
|
|
687 |
|
Restructuring and related severance costs |
|
45 |
|
|
|
- |
|
|
|
314 |
|
|
|
115 |
|
Sponsor management fee |
|
417 |
|
|
|
125 |
|
|
|
667 |
|
|
|
375 |
|
Unit-based compensation |
|
86 |
|
|
|
81 |
|
|
|
258 |
|
|
|
244 |
|
Adjusted EBITDA |
$ |
12,116 |
|
|
$ |
5,333 |
|
|
$ |
35,899 |
|
|
$ |
9,373 |
|
Adjusted EBITDA Margin |
|
35.0 |
% |
|
|
29.9 |
% |
|
|
37.5 |
% |
|
|
23.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor ContactDennis DeanChief Financial
Officerinvestors@elitebodysculpture.com
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