AirSculpt Technologies, Inc. (NASDAQ:AIRS)(“AirSculpt” or the
“Company”), a national provider of premium body contouring
procedures, today announced results for the second quarter ended
June 30, 2022. Additionally, its Board of Directors declared a
$0.41 per share special cash dividend. The dividend will be paid on
September 14, 2022, to shareholders of record at the close of
business on August 26, 2022. The dividend is expected to be funded
through cash from operations with no additional debt being raised.
- Revenue increased 42.0% from prior
year period to $49.7 million
- Strong same-center revenue growth of
20.4%
- Robust cash flow from operations of
$10.4 million
- Expect to open four de novo centers
per year
- Reiterating 2022 outlook
“We are very pleased with the results of the quarter and are
excited to once again report that we achieved our highest volume
and revenue in our history,” said Dr. Aaron Rollins, Chief
Executive Officer of AirSculpt Technologies. “Our revenues grew 42%
over the prior year as demand for AirSculpt continued to
accelerate. We opened our center in Boston in mid-July and
anticipate opening our Philadelphia location late in the third
quarter and Toronto toward the end of the fourth quarter. The first
half of the year has been outstanding, and it highlights the demand
for AirSculpt. We are also announcing that our Board of Directors
has approved a special cash dividend in an aggregate amount of
approximately $25 million.”
“We are pleased to announce this return of capital to
shareholders,” said Adam Feinstein, Chairman of the Board of
Directors. “Our Board’s approval of the special dividend reflects
our confidence in the Company’s long-term growth potential and
strong balance sheet, allowing us to pay a dividend to
shareholders, while maintaining financial and operational
flexibility to continue to grow our business over the long
term.”
“We have a full pipeline of de novo opportunities,” said Chief
Operating Officer, Ron Zelhof. “We have opened two centers so far
this year and expect to open a total of four. In the past seven
months, we have opened four new centers and each center is
performing in-line with our expectations. Additionally, we have now
finished our center relocation efforts whereby all our centers have
at least two procedure rooms.”
Second Quarter 2022 Results
Case volume was 3,691 for the second quarter of 2022,
representing growth of 22.5% over the prior year period case volume
of 3,014. Revenue for the second quarter of 2022 increased by 42.0%
to $49.7 million from $35.0 million in the prior year period.
Same-center cases and revenue per case for the second quarter of
2022 were up 4.7% and 15.0%, respectively, over the prior year
period. Net income for the quarter was $0.6 million compared to net
income of $10.0 million in the prior year period. Net income for
the current quarter was impacted by a $7.2 million increase in
equity-based compensation compared to the prior year period and
approximately $1.9 million of public company related costs which
did not exist in the prior year period. For the second quarter of
2022, the Company’s adjusted EBITDA grew 7.1% to $15.2 million as
compared to $14.2 million for the prior year period. Adjusted
EBITDA for the current year period was impacted by approximately
$1.9 million of public company costs. Adjusting the prior year to
include these costs, our Adjusted EBITDA growth rate would have
been approximately 24%.
Year to Date 2022 Results
Case volume was 6,847 for the first half of 2022, representing
growth of 26.3% over the prior year period case volume of 5,422.
Revenue for 2022 increased by 46.0% to $89.2 million from $61.1
million in the prior year period. Same-center cases and revenue per
case for 2022 were up 7.6% and 15.3%, respectively, over the prior
year period. Year to date net income for 2022 declined to $(0.1)
million compared to $16.6 million from the prior year period. Net
income for the current year period was impacted by a $14.4 million
increase in equity-based compensation and approximately $4.2
million of public company related costs which did not exist in the
prior year period. For year to date 2022, the Company’s adjusted
EBITDA grew 5.2% to $25.0 million as compared to $23.8 million for
the prior year period. Adjusted EBITDA for the current year period
was impacted by approximately $4.2 million of public company costs.
Adjusting the prior year to include these costs, our Adjusted
EBITDA growth rate would have been approximately 28%.
2022 Outlook
The Company is reiterating its revenue outlook of $175-179
million and its Adjusted EBITDA guidance in the range of $58 - $60
million. The Company has opened two centers in 2022 and anticipates
opening two additional centers 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 June 30, 2022, the Company had $35.3 million in cash
and cash equivalents and $5.0 million of borrowing capacity under
its revolving credit facility. The Company generated $17.5 million
in operating cash flows for the six months ended June 30,
2022, compared to $23.8 million for the same period of 2021.
Special Cash Dividend
On August 10, 2022, the Board of Directors approved a special
cash dividend of $0.41 per share to be paid to stockholders of
record as of August 26, 2022 with a payment date of September 14,
2022. The dividend is expected to be funded through excess cash
from operations and not require any additional debt to be
issued.
Conference Call Information
AirSculpt will hold a conference call today, August 12,
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 13731010. The replay will be available until
August 19, 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 EndedJune 30, |
|
Six Months EndedJune 30, |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
|
2021 |
Revenue |
$ |
49,654 |
|
$ |
34,967 |
|
$ |
89,198 |
|
|
$ |
61,108 |
Operating expenses: |
|
|
|
|
|
|
|
Cost of service |
|
17,492 |
|
|
11,223 |
|
|
32,154 |
|
|
|
20,008 |
Selling, general and administrative |
|
26,010 |
|
|
10,332 |
|
|
50,177 |
|
|
|
18,990 |
Loss on debt modification |
|
— |
|
|
682 |
|
|
— |
|
|
|
682 |
Depreciation and amortization |
|
1,962 |
|
|
1,532 |
|
|
3,848 |
|
|
|
3,023 |
Loss on disposal of long-lived assets |
|
227 |
|
|
— |
|
|
227 |
|
|
|
— |
Total operating expenses |
|
45,691 |
|
|
23,769 |
|
|
86,406 |
|
|
|
42,703 |
Income from operations |
|
3,963 |
|
|
11,198 |
|
|
2,792 |
|
|
|
18,405 |
Interest expense, net |
|
1,559 |
|
|
1,171 |
|
|
3,051 |
|
|
|
1,757 |
Pre-tax net income/(loss) |
|
2,404 |
|
|
10,027 |
|
|
(259 |
) |
|
|
16,648 |
Income tax
expense/(benefit) |
|
1,821 |
|
|
— |
|
|
(149 |
) |
|
|
— |
Net income/(loss) |
$ |
583 |
|
$ |
10,027 |
|
$ |
(110 |
) |
|
$ |
16,648 |
|
|
|
|
|
|
|
|
Income per share of common
stock |
|
|
|
|
|
|
|
Basic |
$ |
0.01 |
|
N/A |
|
$ |
— |
|
|
N/A |
Diluted |
$ |
0.01 |
|
N/A |
|
$ |
— |
|
|
N/A |
Weighted average shares
outstanding |
|
|
|
|
|
|
|
Basic |
|
55,640,154 |
|
N/A |
|
|
55,640,154 |
|
|
N/A |
Diluted |
|
58,360,685 |
|
N/A |
|
|
55,640,154 |
|
|
N/A |
AirSculpt Technologies, Inc. and
SubsidiariesSelected Financial and Operating
Data(Dollars in thousands, except per case
amounts)
|
June 30,2022 |
|
December 31, 2021 |
Balance Sheet Data (at
period end): |
|
|
|
Cash and cash equivalents |
$ |
35,253 |
|
$ |
25,347 |
Total current assets |
|
38,710 |
|
|
29,440 |
Total assets |
$ |
218,775 |
|
$ |
200,554 |
|
|
|
|
Current portion of long-term
debt |
$ |
850 |
|
$ |
850 |
Deferred revenue and patient
deposits |
|
2,607 |
|
|
2,810 |
Total current liabilities |
|
17,267 |
|
|
16,415 |
Long-term debt, net |
|
81,812 |
|
|
81,755 |
Total liabilities |
$ |
121,342 |
|
$ |
117,026 |
|
|
|
|
Total stockholders’ equity |
$ |
97,433 |
|
$ |
83,528 |
|
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Cash Flow
Data: |
|
|
|
|
|
|
|
Net cash provided by (used
in): |
|
|
|
|
|
|
|
Operating activities |
$ |
10,398 |
|
|
$ |
14,636 |
|
|
$ |
17,478 |
|
|
$ |
23,814 |
|
Investing activities |
|
(1,865 |
) |
|
|
(1,557 |
) |
|
|
(6,139 |
) |
|
|
(3,149 |
) |
Financing activities |
|
(509 |
) |
|
|
(10,439 |
) |
|
|
(1,433 |
) |
|
|
(14,196 |
) |
|
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Other
Data: |
|
|
|
|
|
|
|
Number of centers as of the
end of the period |
|
19 |
|
|
|
15 |
|
|
|
19 |
|
|
|
15 |
|
Number of procedure rooms as
of the end of the period |
|
38 |
|
|
|
25 |
|
|
|
38 |
|
|
|
25 |
|
|
|
|
|
|
|
|
|
Cases |
|
3,691 |
|
|
|
3,014 |
|
|
|
6,847 |
|
|
|
5,422 |
|
Revenue per case |
$ |
13,453 |
|
|
$ |
11,602 |
|
|
$ |
13,027 |
|
|
$ |
11,270 |
|
Adjusted EBITDA(1) |
$ |
15,226 |
|
|
$ |
14,214 |
|
|
$ |
25,015 |
|
|
$ |
23,784 |
|
Adjusted EBITDA margin(2) |
|
30.7 |
% |
|
|
40.6 |
% |
|
|
28.0 |
% |
|
|
38.9 |
% |
(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 EndedJune 30, |
|
Six Months EndedJune 30, |
|
|
2022 |
|
|
|
2021 |
|
|
2022 |
|
|
|
2021 |
Same-center
Information(1): |
|
|
|
|
|
|
|
Cases |
|
3,155 |
|
|
|
3,014 |
|
|
5,710 |
|
|
|
5,308 |
Case growth |
|
4.7 |
% |
|
N/A |
|
|
7.6 |
% |
|
N/A |
Revenue per case |
$ |
13,343 |
|
|
$ |
11,602 |
|
$ |
12,975 |
|
|
$ |
11,258 |
Revenue per case growth |
|
15.0 |
% |
|
N/A |
|
|
15.3 |
% |
|
N/A |
Number of facilities |
|
15 |
|
|
|
15 |
|
|
14 |
|
|
|
14 |
Number of total procedure
rooms |
|
30 |
|
|
|
25 |
|
|
28 |
|
|
|
23 |
(1) For
the three months ended June 30, 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 April 1, 2021. We define same-center facilities and procedure
rooms as facilities and procedure rooms that have been owned or
operated since April 1, 2021.For the six months ended
June 30, 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,
loss on debt modification, depreciation and amortization, loss on
disposal of long-lived assets, interest expense, net and income tax
expense/(benefit).
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 EndedJune 30, |
|
Six Months EndedJune 30, |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Net income/(loss) |
$ |
583 |
|
|
$ |
10,027 |
|
|
$ |
(110 |
) |
|
$ |
16,648 |
|
Plus |
|
|
|
|
|
|
|
Sponsor management fee |
|
— |
|
|
|
125 |
|
|
|
— |
|
|
|
250 |
|
Equity-based compensation |
|
7,275 |
|
|
|
86 |
|
|
|
14,591 |
|
|
|
172 |
|
Loss on debt modification |
|
— |
|
|
|
682 |
|
|
|
— |
|
|
|
682 |
|
IPO related costs |
|
— |
|
|
|
— |
|
|
|
731 |
|
|
|
— |
|
Pre-opening de novo and relocation costs |
|
1,249 |
|
|
|
430 |
|
|
|
2,096 |
|
|
|
982 |
|
Restructuring and related severance costs |
|
550 |
|
|
|
161 |
|
|
|
730 |
|
|
|
270 |
|
Depreciation and amortization |
|
1,962 |
|
|
|
1,532 |
|
|
|
3,848 |
|
|
|
3,023 |
|
Loss on disposal of long-lived assets |
|
227 |
|
|
|
— |
|
|
|
227 |
|
|
|
— |
|
Interest expense, net |
|
1,559 |
|
|
|
1,171 |
|
|
|
3,051 |
|
|
|
1,757 |
|
Income tax expense/(benefit) |
|
1,821 |
|
|
|
— |
|
|
|
(149 |
) |
|
|
— |
|
Adjusted
EBITDA |
$ |
15,226 |
|
|
$ |
14,214 |
|
|
$ |
25,015 |
|
|
$ |
23,784 |
|
Adjusted EBITDA
Margin |
|
30.7 |
% |
|
|
40.6 |
% |
|
|
28.0 |
% |
|
|
38.9 |
% |
Investor ContactDennis DeanChief Financial
Officerinvestors@elitebodysculpture.com
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