AirSculpt Technologies, Inc. (NASDAQ:AIRS)(“AirSculpt” or the
“Company”), a national provider of premium body contouring
procedures, today announced selected unaudited preliminary
financial results for its second quarter ended June 30, 2023.
For the second quarter, revenue is expected to be approximately
$55.7 million, an increase of 12.2% over the prior year. “The
results for the second quarter for both revenue and Adjusted EBITDA
are ahead of our expectations and speak to the continued demand for
AirSculpt,” said Todd Magazine, Chief Executive Officer of
AirSculpt Technologies, Inc. “We are very pleased with our
performance through the first half of 2023. We continue to focus
our attention on strengthening the organization focusing on revenue
growth, which includes ramping up our de novo expansion program,
and right sizing our cost structure.”
The Company’s 2023 revenue guidance remains unchanged at $187
million to $192 million with the expectation of achieving the upper
end of this range. The Company is also reaffirming opening five new
centers in 2023. Three centers have opened in the first half of the
year and are off to very strong starts and two more are expected to
open in July, which is ahead of the original plan. The Company
expects to report its complete second quarter results on August 11,
2023.
Also, in response to comments from the staff of the U.S.
Securities and Exchange Commission (the “SEC”) pursuant to the
SEC’s interpretations for non-GAAP financial reporting, the Company
will no longer include pre-opening de novo and relocation costs as
an adjustment to calculate Adjusted EBITDA in future filings. As a
result, the Company is revising its full year guidance for Adjusted
EBITDA to reflect this change. This adjustment does not change
historical income from operations or future expected income from
operations or cash flow and the Company will continue to disclose
total pre-opening de novo and relocation costs supplementally in
future filings. Additionally, this change will have no impact on
the Company’s leverage ratio as calculated under its credit
agreement as adjustments for pre-opening de novo and relocation
costs are allowed under the existing agreement.
The Company’s 2023 Adjusted EBITDA outlook, as reported on May
12, 2023, was $48 to $50 million. For the full year 2023, total de
novo and relocation costs are expected to be approximately $5.0
million. After adjusting for pre-opening de novo and relocation
costs, the 2023 Adjusted EBITDA outlook is now $43 to $45 million,
and the Company expects to perform at the upper end of this
range.
To help investors more easily compare future results against
prior period performance based on its revised non-GAAP Adjusted
EBITDA and Adjusted EBITDA Margin definitions, the Company is
providing the following tables reflecting the Company's revised
presentation of Adjusted EBITDA and Adjusted EBITDA Margin for 2022
and the quarter ended March 31, 2023.
|
|
|
|
|
Three Months Ended March 31, |
|
|
|
|
|
|
2023 |
|
|
|
2022 |
|
Net
loss |
|
|
|
|
$ |
(14 |
) |
|
$ |
(693 |
) |
Plus |
|
|
|
|
|
|
|
Equity-based compensation |
|
|
|
|
|
4,388 |
|
|
|
7,316 |
|
IPO related costs |
|
|
|
|
|
- |
|
|
|
731 |
|
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 (1) |
|
|
|
|
$ |
9,456 |
|
|
$ |
8,941 |
|
Adjusted EBITDA Margin |
|
|
|
|
|
20.6 |
% |
|
|
22.6 |
% |
(1) Previously reported Adjusted EBITDA was $10.7 million and
$9.8 million for the three months ended March 31, 2023 and 2022,
respectively. Previously reported Adjusted EBITDA included an
adjustment of $1.3 million and $0.8 million for pre-opening de novo
and relocation costs for the three months ended March 31, 2023 and
2022, respectively.
|
|
|
|
|
Twelve Months Ended December
31, |
|
|
|
|
|
|
2022 |
|
|
|
2021 |
|
Net
(loss)/Income |
|
|
|
|
$ |
(14,679 |
) |
|
$ |
10,551 |
|
Plus |
|
|
|
|
|
|
|
Sponsor management fee |
|
|
|
|
|
- |
|
|
|
1,636 |
|
Equity-based compensation |
|
|
|
|
|
29,457 |
|
|
|
7,185 |
|
Loss on debt modification |
|
|
|
|
|
932 |
|
|
|
682 |
|
IPO related costs |
|
|
|
|
|
731 |
|
|
|
11,837 |
|
Restructuring and related severance costs |
|
|
|
|
|
4,111 |
|
|
|
850 |
|
Depreciation and amortization |
|
|
|
|
|
8,061 |
|
|
|
6,597 |
|
Loss on disposal of long-lived assets |
|
|
|
|
|
147 |
|
|
|
- |
|
Interest expense, net |
|
|
|
|
|
6,751 |
|
|
|
4,888 |
|
Income tax expense |
|
|
|
|
|
3,383 |
|
|
|
329 |
|
Adjusted EBITDA (2)(3) |
|
|
|
|
$ |
38,894 |
|
|
$ |
44,555 |
|
Adjusted EBITDA Margin |
|
|
|
|
|
23.0 |
% |
|
|
33.4 |
% |
(2) Previously reported Adjusted EBITDA was $43.2 million and
$46.1 million for the twelve months ended December 31, 2022 and
2021, respectively. Previously reported Adjusted EBITDA included an
adjustment of $4.3 million and $1.6 million for pre-opening de novo
and relocation costs for the twelve months ended December 31, 2022
and 2021, respectively.
(3) The Company went public on October 28, 2021. The Company’s
Adjusted EBITDA was impacted by a full year's worth of public
company costs during 2022, which added an additional $6.7 million
of incremental public company costs in 2022. If the Company were to
assume these same incremental public company costs were incurred in
the 2021 period, our Adjusted EBITDA would have been $37.9 million
and Adjusted EBITDA margin would have been 28.4%.The preliminary
results described in this press release are estimates only and are
subject to revision until the Company reports its financial results
for the second quarter ended June 30, 2023. There can be no
assurance that the Company’s final results for this period will not
be materially affected by these changes.
About AirSculpt
AirSculpt® is a next-generation body contouring treatment
designed to optimize both comfort and precision, available
exclusively at AirSculpt offices. The minimally invasive procedure
removes fat and tightens skin, while sculpting targeted areas of
the body, allowing for quick healing with minimal bruising, tighter
skin, and precise results.
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.
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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