MIAMI BEACH, Fla., April 25, 2025 (GLOBE NEWSWIRE) -- AirSculpt Technologies, Inc. (“AirSculpt”) (NASDAQ: AIRS) an industry leader and provider of premium body contouring procedures, today announced it will report first quarter 2025 financial results before market open on Friday, May 2, 2025, to be followed by a conference call on the same day at 8:00 a.m. 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 I ...

Here are three stocks added to the Zacks Rank #5 (Strong Sell) List today:AirSculpt Technologies, Inc. (AIRS) is a holding company for EBS Intermediate Parent LLC. The Zacks Consensus Estimate for its current year earnings has been revised 121.7% downward over the last 60 days.The Carlyle Group Inc. (CG) is an investment firm. The Zacks Consensus Estimate for its current year earnings has been revised 8.4% downward over the last 60 days.Cars.com Inc. (CARS) provides solutions for the automotive industry. Th ...

Here are three stocks added to the Zacks Rank #5 (Strong Sell) List today:AirSculpt Technologies, Inc. (AIRS) is a holding company for EBS Intermediate Parent LLC. The Zacks Consensus Estimate for its current year earnings has been revised 121.7% downward over the last 60 days.Eagle Bancorp, Inc. (EGBN) is the bank holding company for EagleBank. The Zacks Consensus Estimate for its current year earnings has been revised 5.3% downward over the last 60 days.First Foundation Inc. (FFWM) is a banking services, ...

Here are three stocks added to the Zacks Rank #5 (Strong Sell) List today:Avanos Medical, Inc. (AVNS) is a medical technology company focusing on delivering medical device solutions. The Zacks Consensus Estimate for its current year earnings has been revised 31.8% downward over the last 60 days.AirSculpt Technologies, Inc. (AIRS) is a holding company for EBS Intermediate Parent LLC. The Zacks Consensus Estimate for its current year earnings has been revised 121.7% downward over the last 60 days.Amphastar Ph ...

Financial Data and Key Metrics Changes - For Q4 2024, revenue totaled $39.2 million, a decline of 17.7% from Q4 2023, with case volume down 16.7% year-over-year [13][33] - Adjusted EBITDA was $1.9 million or 4.7% of revenue, compared to $10.1 million or 21.2% of revenue in the same quarter last year [16][38] - For the full year, revenues were $180.4 million, a decline of 7.9% from fiscal 2023, with adjusted EBITDA of $20.7 million and an adjusted EBITDA margin of 11.5% [18][39] Business Line Data and Key Metrics Changes - Same-store revenue declined 22.6% year-over-year in Q4 2024, reflecting challenges in the aesthetics market [13][33] - The percentage of patients using financing for procedures was 50%, down from 53% in previous quarters [34] Market Data and Key Metrics Changes - The company operates in a $11 billion total addressable market in the U.S. [11] - The consumer backdrop remains challenging, impacting sales across the aesthetics space [14] Company Strategy and Development Direction - The company aims to enhance its culture and align on a singular vision while improving its go-to-market strategy to drive consistent revenue growth [20] - Five key priorities include marketing to drive consumer interest, sales to convert leads, new services to tap into demand, customer experience improvements, and technology enhancements [20][28] Management's Comments on Operating Environment and Future Outlook - Management acknowledges that Q4 2024 was a challenging period but remains confident in the strategy to restore growth and profitability [44] - The company expects Q1 same-store revenue performance to mirror Q4 2024 trends, with sequential improvement anticipated as marketing spend increases [30][42] Other Important Information - The company has paused new center openings to focus on improving same-center performance [29] - A revised credit agreement enhances the company's ability to invest in the business during the transformation [31][41] Q&A Session Summary Question: Can you provide more color on sequential growth expectations? - Management expects to see a similar seasonal trend with sequential improvement in same-store performance year-over-year, anticipating Q2 to be higher than Q1 [51] Question: What are the liquidity improvement actions being taken? - The company drew down on its revolving credit facility to maintain marketing efforts while facing challenges in Q4 results [56] Question: Can you elaborate on the marketing spend versus customer acquisition cost (CAC)? - The elevated CAC was driven by lower case volumes and reduced lead volumes due to decreased marketing spend [62] Question: What is the status of the cost savings program? - The company has executed a $3 million annual savings plan primarily from corporate headcount reductions, with benefits expected to start in Q1 [67] Question: Can you provide specifics on new marketing efforts? - The company is utilizing a combination of paid search and social marketing, with a focus on returns-based approaches and testing new channels like online video [72] Question: What are the plans for new services, particularly skin tightening? - The company plans to pilot skin tightening as a standalone service, capitalizing on consumer interest and trends [76]

Financial Performance - For the year ended December 31, 2024, the company generated $180.4 million in revenue, a decline of approximately 7.9% compared to $195.9 million in 2023[21]. - For the year ended December 31, 2024, the company generated approximately $180 million in revenue, reflecting a 7.9% decline compared to approximately $196 million in 2023[36]. - The company has experienced rapid growth but has limited operating experience at its current scale, which may strain resources and affect financial performance[94]. - The company may face challenges in generating sufficient cash flow from operations to meet debt service obligations, which could adversely affect its financial condition[165]. - Macroeconomic trends, including rising inflation and interest rates, may adversely impact the company's financial condition and results of operations[91]. Operational Highlights - The company performed 14,036 body contouring procedures in 2024, showcasing its operational scale[18]. - The company operates 32 centers across 20 U.S. states, Canada, and the United Kingdom as of March 14, 2025[18]. - As of March 14, 2025, the company operates 32 centers across 20 U.S. states, Canada, and the United Kingdom, with an average revenue per case of $12,849 in 2024[34]. - The company plans to expand its footprint by opening new centers in North America, with over 200 potential locations identified[43]. - The company plans to open five new centers in 2024, focusing on densely populated and affluent metropolitan and suburban regions[104]. Marketing and Customer Acquisition - The company focuses on optimizing marketing investments and improving sales strategies to stabilize revenue growth[22]. - Total advertising costs for the year ended December 31, 2024, were $33.4 million, with approximately 90% allocated to digital advertising[53]. - Customer acquisition costs were approximately $3,130 per customer in 2024[54]. - The company has a catalog of over 250,000 "before and after" photos to showcase treatment outcomes, supporting its marketing efforts[42]. - In 2024, approximately 52% of cases involved patients securing third-party financing, enhancing affordability and driving sales growth[56]. Competitive Landscape - The company competes in the body contouring market against traditional liposuction providers, which typically require longer recovery times[60]. - The body contouring market is highly competitive, with numerous competitors offering alternative solutions that could limit demand for the AirSculpt procedure[111]. - The competitive landscape includes non-surgical fat reduction methods, which are gaining traction in the market[60]. - The company faces risks related to competition, including the potential for competitors to develop safer or more effective solutions[85]. Regulatory and Compliance Issues - Regulatory scrutiny in states like California, Massachusetts, and New York is increasing, potentially impacting the company's structure and operations[70]. - The company emphasizes the importance of maintaining necessary licenses and compliance with healthcare regulations to ensure operational profitability[73]. - The company is subject to various federal and state laws related to healthcare fraud and abuse, and violations could result in significant penalties[88]. - Changes in laws and regulations related to telehealth could adversely affect the company's ability to provide virtual consultations, potentially increasing operational costs[128][129]. Management and Strategy - The company hired a new CEO, Yogi Jashnani, in January 2025, to drive revenue growth through strategic initiatives[23]. - The management team includes experienced leaders with backgrounds in healthcare and private equity, supporting the company's growth strategy[37]. - The company is implementing cost-saving initiatives and revenue growth strategies in response to a decline in revenue during the 2024 fiscal year[90]. - The long-term growth strategy includes opportunistic expansion by opening new centers, although many centers are relatively new and may not generate comparable revenue[96]. Risks and Challenges - The company faces challenges in maintaining profitability levels for newly opened centers, which may not achieve expected sales or profitability[106]. - The ongoing military conflict between Russia and Ukraine has negatively impacted the global economy, potentially affecting the company's financial condition and operations[118]. - Economic downturns could adversely impact consumer spending on discretionary services, including cosmetic procedures, affecting the company's financial condition[146]. - The company may face increased scrutiny and regulation regarding data privacy and security, which could limit its ability to use social media for brand awareness[126]. Intellectual Property and Technology - The patent portfolio includes two issued U.S. utility patents and one pending U.S. utility patent application, with expectations for patents to expire in 2033 or later[57]. - The patent prosecution process is complex and costly, and the company may not be able to maintain or enforce all necessary patents, affecting its ability to commercialize new technologies[200]. - Changes in patent laws or their interpretation could diminish the company's ability to protect its inventions and may lead to increased costs[203]. - The company may become involved in costly intellectual property litigation, which could interfere with its ability to market and perform its services[209]. Financial Obligations and Debt - As of December 31, 2024, total outstanding indebtedness under the senior credit facility was approximately $75.8 million, consisting of $70.8 million in term loans and $5.0 million drawn on the revolving credit facility[155]. - The company is required to maintain a minimum liquidity of $3 million as of March 31, 2025, increasing to $7.5 million thereafter[158]. - The Consolidated Fixed Charge Coverage Ratio must be no less than 0.50x and 1.10x for the fiscal quarters ending March 31, 2025, and June 30, 2025, respectively[158]. - The company has pledged substantially all of its assets as security under the Term Loan and Revolving Credit Facility, which could be at risk if unable to meet debt obligations[162]. Human Resources - As of December 31, 2024, the company employed approximately 389 full-time employees and 33 part-time employees, along with contracts with about 97 surgeons[77]. - The ability to recruit and train qualified surgeons is essential for the successful operation of new centers[108]. - The company faces intense competition for surgeons from other cosmetic treatment centers, which could hinder its ability to implement business strategies successfully[131][132]. Cybersecurity and Data Management - Cybersecurity threats pose significant risks to the company's operations, potentially leading to data breaches and operational disruptions[186]. - The company is highly dependent on information technology networks and systems to securely process sensitive data, including individually identifiable health information (IIHI) and personally identifiable information (PII)[192]. - Security breaches could lead to significant costs for investigation, containment, remediation, and compliance with breach notification laws, potentially harming the company's reputation and financial condition[196]. - The company has implemented administrative, physical, and technological safeguards to address cybersecurity risks, but these measures may not adequately protect against all potential threats[194].

AirSculpt Technologies, Inc. (AIRS) came out with a quarterly loss of $0.08 per share versus the Zacks Consensus Estimate of $0.02. This compares to earnings of $0.01 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -500%. A quarter ago, it was expected that this company would post earnings of $0.04 per share when it actually produced a loss of $0.02, delivering a surprise of -150%.Over the last four quarters, the company has n ...

Revenue Guidance - AirSculpt Technologies, Inc. updated its full year 2024 revenue guidance, indicating a significant increase compared to previous estimates[5] Adjusted EBITDA Guidance - The company also provided Adjusted EBITDA guidance for 2024, reflecting improved operational efficiency and profitability[5] Transparency Commitment - The press release detailing these updates was issued on January 13, 2025, highlighting the company's commitment to transparency[5]

Core Insights - AirSculpt Technologies, Inc. reported a challenging year in 2024, with a focus on stabilizing same-center sales performance and implementing strategic changes to enhance shareholder value [2][4]. Financial Performance - For Q4 2024, case volume decreased by 16.7% to 3,064 from 3,680 in Q4 2023, while revenue fell by 17.7% to $39.2 million from $47.6 million [6][17]. - The net loss for Q4 2024 was $5.0 million, compared to a net loss of $4.6 million in Q4 2023, and adjusted EBITDA dropped to $1.9 million from $10.1 million [6][17]. - For the full year 2024, case volume declined by 6.0% to 14,036 from 14,932 in 2023, with revenue decreasing by 7.9% to $180.4 million from $195.9 million [6][17]. - The net loss for the full year 2024 was $8.3 million, compared to a net loss of $4.5 million in 2023, and adjusted EBITDA was $20.7 million, down from $43.2 million [6][17]. Liquidity and Cash Flow - As of December 31, 2024, the company had $8.2 million in cash and cash equivalents, with no availability on its revolving credit facility [4][19]. - Operating cash flow for the year was $11.4 million, a significant decrease from $24.0 million in 2023 [4][19]. Strategic Initiatives - The CEO emphasized the importance of utilizing data to optimize marketing investments, improving the go-to-market strategy, and expanding financing options for consumers [2][4]. - A cost reduction program is expected to yield approximately $3 million in annualized savings, and the company has paused new procedure room openings to focus on existing operations [2][4]. Operational Metrics - The company operated 32 centers as of December 31, 2024, an increase from 27 centers in the previous year [19]. - Revenue per case for Q4 2024 was $12,787, slightly down from $12,937 in Q4 2023 [19][21].

Core Viewpoint - Three stocks have been added to the Zacks Rank 5 (Strong Sell) List, indicating a negative outlook for these companies based on recent earnings estimate revisions. Group 1: Company Specifics - ATS Corporation (ATS) is an automation solutions provider, with the Zacks Consensus Estimate for its current year earnings revised downward by 8.1% over the last 60 days [1] - AirSculpt Technologies, Inc. (AIRS) is a body contouring services provider, with the Zacks Consensus Estimate for its current year earnings revised downward by 14.3% over the last 60 days [1] - Dine Brands Global, Inc. (DIN) is a restaurant chain operator, with the Zacks Consensus Estimate for its current year earnings revised downward by 13.4% over the last 60 days [2]