Full Press Release Details
AirSculpt Technologies, Inc. Announces Third
Quarter 2021 Results
MIAMI BEACH, Fla., December 3, 2021 (GLOBE NEWSWIRE) - 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.
"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
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 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.
The Company projects full year revenue to be approximately $130 million
and full year Adjusted EBITDA to be approximately $46 million.
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 Subsidiaries
Selected 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 |
Intermediate Parent, LLC and Subsidiaries
Financial and Operating Data
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.