AirSculpt Technologies, Inc. (NASDAQ:AIRS)(“AirSculpt” or the
“Company”), a national provider of premium body contouring
procedures, today announced results for the first quarter ended
March 31, 2023.
- Cases increased 15.3% over the
prior year period to 3,640
- Revenue increased 15.9% over the
prior year to $45.8 million
- Diluted loss per share for the
quarter of $(0.00)
- Diluted adjusted net income per
share for the quarter of $0.10
- Cash flow from operating activities
of $6.2 million
- Net loss of $(14) thousand for the
quarter compared to $(693) thousand in the prior year period
- Adjusted EBITDA increased 9.5% over
prior year period to $10.7 million
“We are pleased with a strong first quarter for
AirSculpt as demonstrated by 15% case growth over the prior year
quarter," said Dr. Aaron Rollins, Executive Chairman of the Board
of AirSculpt Technologies. "We have made great progress on our new
center openings. Orange County started performing cases this past
month and we are excited to announce we have received approval to
open our flagship center in London. We also expect to begin
performing cases this month in Austin. I am excited about the
outlook for the business and the momentum we are carrying into the
remainder of the year.”
Todd Magazine, Chief Executive Officer of
AirSculpt Technologies, stated, "I am pleased with the sustained
momentum in our revenue growth and the demonstrated progress we are
making on our cost management initiatives. I am confident that we
are well-positioned for profitable and sustainable long-term growth
which will allow us to expand our brand and deliver value to our
shareholders.”
First Quarter
2023 Results
Case volume was 3,640 for the first quarter of
2023, representing growth of 15.3% over the prior year period case
volume of 3,156. Revenue for the first quarter of 2023 increased by
15.9% to $45.8 million from $39.5 million in the prior year period.
Net loss for the quarter was $(14.0) thousand. The Company’s
adjusted EBITDA for the quarter was $10.7 million compared to $9.8
million for the prior year period.
2023
Outlook
The Company continues to project full year 2023
revenue and adjusted EBITDA guidance as follows:
- Revenues in a range of $187 to $192
million
- Adjusted EBITDA in a range of $48 to
$50 million
The Company expects to open a total of five new
centers, three in the first half of the year and two in the second
half of the year. For additional information on forward-looking
statements, see the section titled "Forward-Looking Statements"
below.
Liquidity
As of March 31, 2023, the Company had $11.3
million in cash and cash equivalents and $5.0 million of borrowing
capacity under its revolving credit facility. The Company generated
$6.2 million in operating cash flow for the three months ended
March 31, 2023, compared to $7.1 million for the same period
of 2022.
Conference Call Information
AirSculpt will hold a conference call today,
May 12, 2023 at 8:30 am (Eastern Time). The conference call
can be accessed by dialing 1-877-407-9716 (toll-free domestic) or
1-201-493-6779 (international) using the conference ID 13738277 or
by visiting the link below to request a return call for instant
telephone access to the event.
https://callme.viavid.com/viavid/?callme=true&passcode=13725116&h=true&info=company&r=true&B=6
The live webcast may be accessed via the
investor relations section of the AirSculpt Technologies website at
https://investors.elitebodysculpture.com. A replay of the webcast
will be available for approximately 90 days following the call.
To learn more about AirSculpt Technologies,
please visit the Company's website at
https://investors.elitebodysculpture.com. AirSculpt Technologies
uses its website as a channel of distribution for material Company
information. Financial and other material information regarding
AirSculpt Technologies is routinely posted on the Company's website
and is readily accessible.
About AirSculpt
AirSculpt 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
Annual Report on Form 10-K.
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;
inability to open new centers due to rising interest rates and
increased operating expenses due to rising inflation; 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 Annual Report on Form 10-K could cause our results to differ
materially from those expressed in the forward-looking statements
made in this press release.
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, Adjusted EBITDA Margin, Adjusted
Net Income and Adjusted Net Income per Share, which are non-GAAP
financial measures. Although the Company provides guidance for
adjusted EBITDA, it is not able to provide guidance for net income,
the most directly comparable GAAP measure. Certain elements of the
composition of net income, including equity-based compensation, are
not predictable, making it impractical for us to provide guidance
on net income or to reconcile our adjusted EBITDA guidance to net
income without unreasonable efforts. For the same reasons, the
Company is unable to address the probable significance of the
unavailable information regarding net income, which could be
material to future results.
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.
|
Three Months EndedMarch 31, |
|
2023 |
|
2022 |
Revenue |
$ |
45,813 |
|
|
$ |
39,544 |
|
Operating expenses: |
|
|
|
Cost of service |
|
18,017 |
|
|
|
14,662 |
|
Selling, general and administrative |
|
23,882 |
|
|
|
24,167 |
|
Depreciation and amortization |
|
2,336 |
|
|
|
1,886 |
|
Gain on disposal of long-lived assets |
|
(184 |
) |
|
|
— |
|
Total operating expenses |
|
44,051 |
|
|
|
40,715 |
|
Income/(loss) from operations |
|
1,762 |
|
|
|
(1,171 |
) |
Interest expense, net |
|
1,735 |
|
|
|
1,492 |
|
Pre-tax net income/(loss) |
|
27 |
|
|
|
(2,663 |
) |
Income tax
expense/(benefit) |
|
41 |
|
|
|
(1,970 |
) |
Net loss |
$ |
(14 |
) |
|
$ |
(693 |
) |
|
|
|
|
Loss per share of common
stock |
|
|
|
Basic |
$ |
(0.00 |
) |
|
$ |
(0.01 |
) |
Diluted |
$ |
(0.00 |
) |
|
$ |
(0.01 |
) |
Weighted average shares
outstanding |
|
|
|
Basic |
|
56,443,370 |
|
|
|
55,640,154 |
|
Diluted |
|
56,443,370 |
|
|
|
55,640,154 |
|
|
March 31,2023 |
|
December 31, 2022 |
Balance Sheet Data (at
period end): |
|
|
|
Cash and cash equivalents |
$ |
11,283 |
|
$ |
9,616 |
Total current assets |
|
17,887 |
|
|
16,676 |
Total assets |
$ |
209,521 |
|
$ |
200,759 |
|
|
|
|
Current portion of long-term
debt |
$ |
2,125 |
|
$ |
2,125 |
Deferred revenue and patient
deposits |
|
3,891 |
|
|
2,358 |
Total current liabilities |
|
21,515 |
|
|
22,318 |
Long-term debt, net |
|
81,148 |
|
|
81,420 |
Total liabilities |
$ |
134,293 |
|
$ |
129,993 |
|
|
|
|
Total stockholders’ equity |
$ |
75,228 |
|
$ |
70,766 |
|
Three Months EndedMarch 31, |
|
2023 |
|
2022 |
Cash Flow
Data: |
|
|
|
Net cash provided by (used
in): |
|
|
|
Operating activities |
$ |
6,219 |
|
|
$ |
7,080 |
|
Investing activities |
|
(3,815 |
) |
|
|
(4,274 |
) |
Financing activities |
|
(737 |
) |
|
|
(924 |
) |
|
Three Months EndedMarch 31, |
|
2023 |
|
2022 |
Other Data: |
|
|
|
Number of facilities |
|
23 |
|
|
|
19 |
|
Number of total procedure
rooms |
|
49 |
|
|
|
36 |
|
|
|
|
|
Cases |
|
3,640 |
|
|
|
3,156 |
|
Revenue per case |
$ |
12,586 |
|
|
$ |
12,530 |
|
Adjusted EBITDA (1) |
$ |
10,721 |
|
|
$ |
9,788 |
|
Adjusted EBITDA margin (2) |
|
23.4 |
% |
|
|
24.8 |
% |
(1) A reconciliation of this non-GAAP financial measure appears
below.(2) Defined as Adjusted EBITDA as a percentage of
revenue.
|
Three Months EndedMarch 31, |
|
2023 |
|
2022 |
Same-center
Information (1): |
|
|
|
Cases |
|
3,155 |
|
|
|
3,127 |
Case growth |
|
0.9 |
% |
|
N/A |
Revenue per case |
$ |
12,676 |
|
|
$ |
12,510 |
Revenue per case growth |
|
1.3 |
% |
|
N/A |
Number of facilities |
|
18 |
|
|
|
18 |
Number of total procedure
rooms |
|
38 |
|
|
|
35 |
(1) For the three months ended
March 31, 2023 and 2022, 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, 2022.
We define same-center facilities and procedure rooms as facilities
and procedure rooms that have been owned or operated since
January 1, 2022.
We report our 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, Adjusted EBITDA Margin, Adjusted Net Income and Adjusted
Net Income per Share, which are non-GAAP financial measures.
We define Adjusted EBITDA as net income/(loss)
excluding depreciation and amortization, net interest expense,
income tax expense/(benefit), pre-opening de novo and relocation
costs, restructuring and related severance costs, IPO related
costs, (gain)/loss on disposal of long-lived assets, and
equity-based compensation.
We define Adjusted Net Income as net
income/(loss) excluding pre-opening de novo and relocation costs,
restructuring and related severance costs, IPO related costs,
(gain)/loss on disposal of long-lived assets, and equity-based
compensation.
We include Adjusted EBITDA and Adjusted Net
Income because they are important measures on which our management
assesses and believes investors should assess our operating
performance. We consider Adjusted EBITDA and Adjusted Net Income to
be an important measure because they help illustrate underlying
trends in our business and our 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 equity-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. Adjusted Net Income has limitations as an
analytical tool because it does not include results from
equity-based compensation.
We define Adjusted EBITDA Margin as Adjusted
EBITDA as a percentage of revenue. We define Adjusted Net Income
per Share as Adjusted Net Income divided by weighted average basic
and diluted shares. We included Adjusted EBITDA Margin and Adjusted
Net Income per Share because they are important measures on which
our management assesses and believes investors should assess our
operating performance. We consider Adjusted EBITDA Margin and
Adjusted Net Income per Share to be important measures because they
help illustrate underlying trends in our business and our
historical operating performance on a more consistent basis.
The following table reconciles Adjusted EBITDA
and Adjusted EBITDA Margin to net (loss)/income, the most directly
comparable GAAP financial measure:
|
Three Months EndedMarch 31, |
|
2023 |
|
2022 |
Net loss |
$ |
(14 |
) |
|
$ |
(693 |
) |
Plus |
|
|
|
Equity-based compensation |
|
4,388 |
|
|
|
7,316 |
|
IPO related costs |
|
— |
|
|
|
731 |
|
Pre-opening de novo and relocation costs |
|
1,265 |
|
|
|
847 |
|
Restructuring and related severance costs |
|
1,154 |
|
|
|
179 |
|
Depreciation and amortization |
|
2,336 |
|
|
|
1,886 |
|
Gain on disposal of long-lived assets |
|
(184 |
) |
|
|
— |
|
Interest expense, net |
|
1,735 |
|
|
|
1,492 |
|
Income tax expense/(benefit) |
|
41 |
|
|
|
(1,970 |
) |
Adjusted
EBITDA |
$ |
10,721 |
|
|
$ |
9,788 |
|
Adjusted EBITDA
Margin |
|
23.4 |
% |
|
|
24.8 |
% |
The following table reconciles Adjusted Net
Income and Adjusted Net Income per Share to net loss, the most
directly comparable GAAP financial measure:
|
Three Months EndedMarch 31, |
|
2023 |
|
2022 |
Net loss |
$ |
(14 |
) |
|
$ |
(693 |
) |
Plus |
|
|
|
Equity-based compensation |
|
4,181 |
|
|
|
7,045 |
|
IPO related costs |
|
— |
|
|
|
541 |
|
Pre-opening de novo and relocation costs |
|
936 |
|
|
|
627 |
|
Restructuring and related severance costs |
|
854 |
|
|
|
132 |
|
Gain on disposal of long-lived assets |
|
(136 |
) |
|
|
— |
|
Adjusted net
income |
$ |
5,821 |
|
|
$ |
7,652 |
|
|
|
|
|
Adjusted net income per share
of common stock (1) |
|
|
|
Basic |
$ |
0.10 |
|
|
$ |
0.14 |
|
Diluted |
$ |
0.10 |
|
|
$ |
0.14 |
|
Weighted average shares
outstanding |
|
|
|
Basic |
|
56,443,370 |
|
|
|
55,640,154 |
|
Diluted |
|
57,309,392 |
|
|
|
56,244,711 |
|
(1) Diluted Adjusted Net Income Per Share is
computed by dividing adjusted net income by the weighted-average
number of shares of common stock outstanding adjusted for the
dilutive effect of all potential shares of common stock.
Investor ContactSteven Halper/Caroline
PaulManaging Directors, LifeSci
Advisorsinvestors@elitebodysculpture.com
Media ContactStephanie Evans GreeneChief
Marketing OfficerAirSculpt Technologies,
Inc.sevansgreene@elitebodysculpture.com
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