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, 2022.
- Cases increased 31.1% from prior year
period to 3,156 cases
- Revenue increased 51.3% from prior
year period to $39.5 million
- Same-center cases increased 12.2% from
the prior year period
- Same-center revenue per case increased
14.6% from the prior year period
- Net loss was $(0.7) million
- Adjusted EBITDA increased to $9.8
million
- Cash flow from operations was $7.1
million
“Once again, we were able to produce outstanding year over year
revenue growth of over 51%. The first quarter was the highest
volume and revenue in the history of our company and demand for
AirSculpt has never been higher” said Dr. Aaron Rollins, Chief
Executive Officer of AirSculpt Technologies. “As previously
reported, we opened our newest center in Las Vegas in March, and it
is already exceeding our expectations. We anticipate opening our
next center in Boston late in the second quarter, which is slightly
ahead of plan.
As a result of the demand and the timing acceleration of our
center in Boston, we are increasing our full year revenue outlook
to a range of $175-$179 million. The year is off to an outstanding
start which highlights the demand for our innovative custom body
contouring services and is allowing us to make increased
investments into the business both clinically and in our
administrative infrastructure in preparation for the strong demand
we see in existing centers as well as accelerating our growth into
new markets.”
“We have such a robust pipeline of de novo opportunities in
front of us,” said AirSculpt’s Chief Operating Officer, Ron Zelhof.
“We have opened three centers in the last four months and each
center is performing ahead of our expectation putting us on an
excellent path for strong revenue and adjusted EBITDA growth over
the remainder of the year.”
First Quarter 2022 Results
Case volume was 3,156 for the first quarter of 2022,
representing growth of 31.1% over the prior year period case volume
of 2,408. Revenue for the first quarter of 2022 increased by 51.3%
to $39.5 million from $26.1 million in the prior year period.
Same-center cases and revenue per case for the first quarter of
2022 were up 12.2% and 14.6%, respectively, over the prior year
period. Net loss for the quarter was $(0.7) million compared to net
income of $6.6 million in the prior year period. For the first
quarter of 2022, the Company’s adjusted EBITDA grew 2.3% to $9.8
million as compared to $9.6 million for the prior year period.
Adjusted EBITDA for the current year period was impacted by
approximately $2.3 million of public company costs which did not
exist in the prior year period. Adjusting prior year to include
these costs, our Adjusted EBITDA growth rate would have been
approximately 34%.
2022 Outlook
The Company is increasing its revenue outlook to $175-179
million while maintaining its Adjusted EBITDA guidance in the range
of $58 - $60 million. The Company continues to expect the opening
of four new centers during the year. One center opened in the first
quarter, one center is expected to open in late second quarter, and
the remaining two in the second half of the year.
The updated guidance above is a forward looking statement that
assumes there will be no material negative impact in market
conditions from any new COVID strains. For additional information
on forward-looking statements, see the section titled
"Forward-Looking Statements" below.
Liquidity
As of March 31, 2022, the Company had $27.2 million in cash
and cash equivalents and $5.0 million of borrowing capacity under
its revolving credit facility.
The Company had $7.1 million and $9.2 million in operating cash
flows for the three months ended March 31, 2022 and 2021,
respectively. The decrease is primarily driven by the addition of a
full three months of public company costs in the three months ended
March 31, 2022, which did not exist in the prior year
period.
Conference Call Information
AirSculpt will hold a conference call today, May 13, 2022
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 13728912. The replay will be available until
May 20, 2022.
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
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; 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 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.
AirSculpt Technologies, Inc. and
SubsidiariesSelected Consolidated Financial
Data (Dollars in thousands)
|
Three Months EndedMarch 31, |
|
|
2022 |
|
|
|
2021 |
|
Revenue |
$ |
39,544 |
|
|
$ |
26,141 |
|
Operating expenses: |
|
|
|
Cost of service |
|
14,662 |
|
|
|
8,785 |
|
Selling, general and administrative |
|
24,167 |
|
|
|
8,658 |
|
Depreciation and amortization |
|
1,886 |
|
|
|
1,491 |
|
Total operating expenses |
|
40,715 |
|
|
|
18,934 |
|
(Loss)/Income from operations |
|
(1,171 |
) |
|
|
7,207 |
|
Interest expense, net |
|
1,492 |
|
|
|
586 |
|
Pre-tax net (loss)/income |
|
(2,663 |
) |
|
|
6,621 |
|
Income tax benefit |
|
(1,970 |
) |
|
|
— |
|
Net (loss)/income |
$ |
(693 |
) |
|
$ |
6,621 |
|
|
|
|
|
(Loss) per share of common
stock |
|
|
|
Basic |
$ |
(0.01 |
) |
|
|
N/A |
|
Diluted |
$ |
(0.01 |
) |
|
|
N/A |
|
Weighted average shares
outstanding |
|
|
|
|
|
Basic |
|
55,640,154 |
|
|
|
N/A |
|
Diluted |
|
55,640,154 |
|
|
|
N/A |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AirSculpt Technologies, Inc. and
SubsidiariesSelected Financial and Operating
Data(Dollars in thousands, except per case
amounts)
|
March 31,2022 |
|
December 31,2021 |
Balance Sheet Data (at
period end): |
|
|
|
Cash and cash equivalents |
$ |
27,229 |
|
|
$ |
25,347 |
|
Total current assets |
|
32,362 |
|
|
|
29,440 |
|
Total assets |
$ |
207,229 |
|
|
$ |
200,554 |
|
|
|
|
|
Current portion of long-term
debt |
$ |
850 |
|
|
$ |
850 |
|
Deferred revenue and patient
deposits |
|
2,406 |
|
|
|
2,810 |
|
Total current liabilities |
|
15,911 |
|
|
|
16,415 |
|
Long-term debt, net |
|
81,750 |
|
|
|
81,755 |
|
Total liabilities |
$ |
117,360 |
|
|
$ |
117,026 |
|
|
|
|
|
Total stockholders’ equity |
$ |
89,869 |
|
|
$ |
83,528 |
|
|
Three Months EndedMarch 31, |
|
|
2022 |
|
|
|
2021 |
|
Cash Flow
Data: |
|
|
|
Net cash provided by (used
in): |
|
|
|
Operating activities |
$ |
7,080 |
|
|
$ |
9,178 |
|
Investing activities |
|
(4,274 |
) |
|
|
(1,592 |
) |
Financing activities |
|
(924 |
) |
|
|
(3,757 |
) |
|
Three Months EndedMarch 31, |
|
|
2022 |
|
|
|
2021 |
|
Other Data: |
|
|
|
Number of centers as of the end
of the period |
|
19 |
|
|
|
14 |
|
Number of procedure rooms as of
the end of the period |
|
36 |
|
|
|
23 |
|
|
|
|
|
Cases |
|
3,156 |
|
|
|
2,408 |
|
Revenue per case |
$ |
12,530 |
|
|
$ |
10,856 |
|
Adjusted EBITDA (1) |
$ |
9,788 |
|
|
$ |
9,570 |
|
Adjusted EBITDA margin (2) |
|
24.8 |
% |
|
|
36.6 |
% |
(1) A reconciliation of this non-GAAP financial measure appears
below.(2) Defined as Adjusted EBITDA as a percentage of
revenue.
AirSculpt Technologies, Inc. and
SubsidiariesSupplemental
Information(Dollars in thousands, except per case
amounts)
|
Three Months EndedMarch 31, |
|
|
2022 |
|
|
|
2021 |
|
Same-center
Information (1): |
|
|
|
Cases |
|
2,702 |
|
|
|
2,408 |
|
Case growth |
|
12.2 |
% |
|
|
N/A |
|
Revenue per case |
$ |
12,436 |
|
|
$ |
10,856 |
|
Revenue per case growth |
|
14.6 |
% |
|
|
N/A |
|
Number of facilities |
|
14 |
|
|
|
14 |
|
Number of total procedure
rooms |
|
26 |
|
|
|
23 |
|
(1) For the three months ended March 31, 2022 and 2021, 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, 2021. We define same-center facilities
and procedure rooms as facilities and procedure rooms that have
been owned or operated since January 1, 2021.
AirSculpt Technologies, Inc. and
SubsidiariesReconciliation of Non-GAAP Financial
Measures(Dollars in thousands)
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 and Adjusted EBITDA Margin, which are non-GAAP
financial measures.
We define Adjusted EBITDA as net income (loss)
excluding initial public offering (“IPO”) related costs, sponsor
management fee, pre-opening de novo and relocation costs,
restructuring and related severance, equity-based compensation,
depreciation and amortization, interest expense, net and income tax
(benefit)/expense.
We include Adjusted EBITDA because it is an
important measure on which our management assesses and believes
investors should assess our operating performance. We consider
Adjusted EBITDA to be an important measure because it helps
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.
We define Adjusted EBITDA Margin as Adjusted
EBITDA as a percentage of revenue. We included Adjusted EBITDA
Margin because it is an important measure on which our management
assesses and believes investors should assess our operating
performance. We consider Adjusted EBITDA Margin to be an important
measure because it helps 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 income (loss), the most directly
comparable GAAP financial measure:
|
Three Months EndedMarch 31, |
|
|
2022 |
|
|
|
2021 |
|
Net income (loss) |
$ |
(693 |
) |
|
$ |
6,621 |
|
Plus |
|
|
|
Sponsor management fee |
|
— |
|
|
|
125 |
|
Equity-based compensation |
|
7,316 |
|
|
|
86 |
|
IPO related costs |
|
731 |
|
|
|
— |
|
Pre-opening de novo and relocation costs |
|
847 |
|
|
|
552 |
|
Restructuring and related severance costs |
|
179 |
|
|
|
109 |
|
Depreciation and amortization |
|
1,886 |
|
|
|
1,491 |
|
Interest expense, net |
|
1,492 |
|
|
|
586 |
|
Income tax benefit |
|
(1,970 |
) |
|
|
— |
|
Adjusted
EBITDA |
$ |
9,788 |
|
|
$ |
9,570 |
|
Adjusted EBITDA
Margin |
|
24.8 |
% |
|
|
36.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor ContactDennis DeanChief Financial
Officerinvestors@elitebodysculpture.com
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