Company Performance - AirSculpt Technologies, Inc. reported a quarterly loss of $0.08 per share, missing the Zacks Consensus Estimate of $0.02, and compared to earnings of $0.01 per share a year ago, representing an earnings surprise of -500% [1] - The company posted revenues of $39.18 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 0.48%, but down from $47.61 million year-over-year [2] - Over the last four quarters, the company has not surpassed consensus EPS estimates, and has topped consensus revenue estimates twice [2] Stock Performance - AirSculpt Technologies shares have declined approximately 43.4% since the beginning of the year, while the S&P 500 has decreased by -6.1% [3] - The current Zacks Rank for AirSculpt Technologies is 5 (Strong Sell), indicating expected underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.06 on revenues of $50.67 million, and for the current fiscal year, it is $0.23 on revenues of $202.18 million [7] - The trend for estimate revisions ahead of the earnings release has been unfavorable, which may impact future stock performance [6] Industry Context - The Technology Services industry, to which AirSculpt Technologies belongs, is currently ranked in the top 27% of over 250 Zacks industries, suggesting a favorable industry outlook [8]

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]

Company Overview - AirSculpt Technologies, Inc. is a leader in the premium body contouring industry, offering next-generation treatments designed for comfort and precision [3] - The company operates 31 centers in North America and one location in the United Kingdom, providing minimally invasive procedures that remove fat and tighten skin [3] Financial Announcement - AirSculpt will report its fourth quarter 2024 financial results before the market opens on March 14, 2025, followed by a conference call at 8:30 a.m. Eastern Time [1] - The conference call can be accessed via a toll-free number or through a live webcast on the company's investor relations website [2]

Core Viewpoint - AirSculpt Technologies, Inc. has updated its fiscal year 2024 guidance, indicating a shift in expected financial performance as the company aims to stabilize revenue and return to growth under new CEO Yogi Jashnani's leadership [1][2][3]. Financial Performance - The company expects revenues of approximately $180 million, a decrease from the previous guidance of $183 million to $189 million [6]. - Adjusted EBITDA is projected to be around $20.5 million, down from the earlier guidance of $23 million to $28 million [6]. Leadership and Strategy - Yogi Jashnani has officially started as CEO and emphasizes leveraging the company's proprietary technology and asset-light business model to drive long-term profitable growth [2]. - The CEO plans to implement business process changes and enhance technology and consumer insights to inform marketing, real estate, and sales decisions [2]. Business Model and Operations - AirSculpt operates 32 centers globally, with a strong foundation based on over 70,000 successful procedures [2]. - The company offers a next-generation body contouring treatment that is minimally invasive, designed for quick healing and precise results [8]. Upcoming Events - AirSculpt will participate in the ICR Conference 2025, where the CEO and CFO will present insights into the company's business model and future strategy [7].

Company Overview - AirSculpt Technologies, Inc. is an industry leader in premium body contouring procedures, offering next-generation treatments designed for comfort and precision [3] - The company operates 31 centers in North America and one location in the United Kingdom, providing minimally invasive procedures that remove fat and tighten skin [3] Upcoming Events - AirSculpt will participate in investor meetings and host a presentation at the ICR Conference 2025 from January 13 to January 14, 2025, in Orlando, Florida [1] - The presentation will be led by CEO Yogi Jashnani and CFO Dennis Dean on January 14, 2025, at 10:00 a.m. Eastern Standard Time, and will be available via live webcast [2] Investor Relations - An archive of the webcast presentation will be accessible for 90 days following the event [2] - The company utilizes its website as a distribution channel for material information, which is routinely updated and readily accessible [4]

Core Viewpoint - AirSculpt Technologies, Inc. has appointed Yogi Jashnani as the new CEO, effective January 7, 2025, succeeding Dennis Dean, who will remain as CFO [1][3]. Company Leadership - Yogi Jashnani brings over two decades of experience in transforming public and private companies across various industries, including aesthetics and finance [2]. - Dr. Aaron Rollins, Executive Chairman, expressed confidence in Jashnani's ability to enhance company value and capitalize on AirSculpt's strengths, including proprietary technology and a large addressable market [3]. Strategic Focus - Jashnani aims to stabilize and accelerate same-center sales growth, enhance operational efficiencies, and unlock the full potential of the AirSculpt method [3]. - The company has a strong foundation with innovative technology and significant market opportunities, which Jashnani plans to leverage for growth [3]. Previous Experience - Prior to joining AirSculpt, Jashnani served as Chief Revenue Officer at Sky Zone and held executive roles at Ideal Image, Advance Auto Parts, and Capital One Financial Services [2][4]. - At Ideal Image, he drove revenue growth through the introduction of new services and a loyalty membership program [2]. Company Overview - AirSculpt offers a next-generation body contouring treatment that is minimally invasive, designed for comfort and precision, and available at 31 centers in North America and one in the UK [5].

Company Overview - AirSculpt® Technologies, Inc. is a leader in premium body contouring procedures and has opened its 32nd clinic in White Plains, New York [1][4] - The company has performed over 60,000 AirSculpt® cases since 2012 across the U.S., Canada, and the United Kingdom [4] New Clinic Details - The new White Plains center features three operating rooms, allowing for simultaneous procedures [2] - The clinic will offer the AirSculpt®+ skin tightening procedure, which enhances the results of the fat removal process [2][3] Strategic Expansion - The opening of the White Plains clinic is part of a strategic expansion into New York, driven by increasing market demand [3] - The AirSculpt®+ procedure combines fat removal with skin tightening using Renuvion®, which utilizes helium gas and radiofrequency energy [3][5]

Financial Performance - Revenue for the three months ended September 30, 2024, was $42.548 million, a decrease of 9.6% compared to $46.793 million for the same period in 2023[8] - Operating expenses for the three months ended September 30, 2024, totaled $46.264 million, an increase of 0.9% from $45.838 million in the prior year[8] - Net loss for the three months ended September 30, 2024, was $6.040 million, compared to a net loss of $1.667 million for the same period in 2023[8] - Basic loss per share for the three months ended September 30, 2024, was $(0.10), compared to $(0.03) for the same period in 2023[8] - Comprehensive loss for the three months ended September 30, 2024, was $5.834 million, compared to a comprehensive loss of $1.773 million for the same period in 2023[11] - For the nine months ended September 30, 2024, the net loss was $3,217,000, while the previous year showed a net income of $95,000[16] - Cash flows from operating activities for the nine months ended September 30, 2024, provided $8,637,000, down from $19,090,000 in the prior year[16] Assets and Liabilities - Total current assets decreased to $12.892 million as of September 30, 2024, from $15.961 million as of December 31, 2023[7] - Total liabilities increased to $125.708 million as of September 30, 2024, compared to $120.027 million as of December 31, 2023[7] - Cash and cash equivalents decreased to $5.972 million as of September 30, 2024, from $10.262 million as of December 31, 2023[7] - Total assets increased to $208.245 million as of September 30, 2024, compared to $204.019 million as of December 31, 2023[7] - Total debt, net as of September 30, 2024, was $70.1 million, a decrease from $71.6 million as of December 31, 2023[53] Equity and Compensation - The company recorded a cumulative reversal of stock compensation expense of $10.4 million during the first quarter of fiscal year 2024[8] - The total equity-based compensation for the nine months ended September 30, 2024, was $1,522,000, significantly lower than $13,483,000 in the prior year[16] - The Company recognized equity-based compensation expenses of $3.4 million for the three months ended September 30, 2024, down from $4.5 million in 2023, and $1.5 million for the nine months ended September 30, 2024, compared to $13.5 million in 2023[63] - The Company granted 515,804 restricted stock units (RSUs) during the nine months ended September 30, 2024, compared to 767,261 RSUs in the same period of 2023, representing a decrease of 32.8%[60] Expenses - Advertising expenses for the three months ended September 30, 2024, were approximately $6.9 million, compared to $6.5 million for the same period in 2023, reflecting a 6.2% increase[39] - The Company incurred rent expenses of $1.8 million and $5.0 million for the three and nine months ended September 30, 2024, respectively, compared to $1.5 million and $4.4 million for the same periods in 2023, indicating a year-over-year increase of 20% and 13.6%[55] - The company reported depreciation and amortization of $8,693,000 for the nine months ended September 30, 2024, compared to $7,479,000 in the previous year[16] - Depreciation expense for the three months ended September 30, 2024, was approximately $1.8 million, compared to $1.4 million for the same period in 2023, representing a 28.6% increase[49] Tax and Compliance - The effective tax rate for the three months ended September 30, 2024, was approximately (13.8)%, a significant improvement from (89.2)% in the same period of 2023[43] - The income tax expense for the three months ended September 30, 2024, was $0.7 million, down from $0.8 million in 2023, while the nine-month tax expense decreased from $2.5 million in 2023 to $0.9 million in 2024[68] - The Company is in compliance with all covenants under its Credit Agreement and has no letters of credit outstanding as of September 30, 2024[54] Future Outlook - The company anticipates potential impacts from rising interest rates and increased competition in the weight loss market[4] - Total future minimum rental payments under non-cancellable operating lease agreements amount to $45.981 million, with $1.777 million due in 2024 and $7.445 million in 2025[59] - Amortization of intangible assets will be $4.8 million per year for each of the next five fiscal years[46]