Summary of SBC Medical Group Holdings Conference Call Company Overview - SBC Medical Group Holdings (SBC) is primarily focused on providing comprehensive management support services to franchise clinics, generating income through franchise fees [4][5] - The company was successfully listed on the Nasdaq in September 2024, marking a significant milestone in its expansion plans [4][5] - SBC's primary area of focus is aesthetic medicine, with ongoing diversification into specialized medical services such as plastic surgery, ophthalmology, hair loss treatment, and infertility treatment [5][6] Market Position and Strategy - SBC serves over 6 million patients annually, making it the largest provider in Japan's aesthetic medical market [6] - The company maintains strong growth despite increasing competition by implementing strategic pricing models and expanding its clinic network [6][7] - A multi-brand strategy is employed to cater to diverse customer needs, with brands like Shonan Beauty Clinic and NeoScan targeting different demographics and service preferences [8][15] Financial Performance - Revenue decreased by 14% year-over-year due to a business restructuring in 2024, but excluding these effects, SBC achieved around 5% growth [9][10] - The EBITDA margin stands at 52%, and annualized ROE is at 41%, indicating strong profitability [10] - SBC has a healthy cash position and minimal debt obligations, providing flexibility for strategic growth opportunities [10][11] Pricing and Franchise Strategy - A major overhaul of pricing was implemented in March 2025 to streamline pricing structures and improve cost efficiency [12] - Adjustments to the franchise fee structure were made to alleviate financial burdens on newly opened clinics, promoting long-term growth and sustainability [13] Growth Strategy Towards 2027 - SBC aims to evolve into a global medical service company by 2027, focusing on aesthetic medicine and expanding service offerings [14] - The Japanese aesthetic medicine market has a penetration rate of around 10%, indicating substantial growth opportunities [15] - The company is enhancing its digital outreach and language support to attract international customers, particularly from China [16] International Expansion - SBC is focusing on the US and Asia for international expansion, with plans to establish med spas and provide management services based on its experience in Japan [19] - A strategic acquisition in Singapore marks a key milestone in SBC's expansion strategy across Asia [20] Employee and B2B Services - The company launched SBC Wellness, a corporate employee benefit program, to meet the growing demand for health-oriented workplace initiatives [21] - SBC is expanding its B2B services by offering consulting and system services to insurance-based clinics facing operational challenges [18][19] Capital Strategy - SBC plans to enhance shareholder value through a $5 million share repurchase program, aimed at improving liquidity and signaling confidence in the company's valuation [22][23] - The company is considering additional liquidity measures, including issuing new shares to increase free float and improve market dynamics [33] Conclusion - SBC Medical Group Holdings is well-positioned for sustainable growth through strategic pricing, diversification of services, and international expansion, while maintaining a strong financial foundation [10][11][14]

Company Overview - SBC Medical Group Holdings Incorporated is a global franchise and provider of services for aesthetic clinics, headquartered in Irvine, California, and Tokyo, Japan [4] - The company focuses on providing comprehensive management services to franchisee clinics, including advertising, staff management, customer booking, employee housing assistance, clinic construction, medical equipment procurement, and IT solutions [4] Upcoming Investor Events - SBC Medical will participate in several upcoming investor events, including: - Lytham Partners Spring 2025 Virtual Investor Conference on May 29, 2025, from 2:00-2:30 PM (ET) [1] - Noble Capital Markets' Emerging Growth Virtual Equity Conference on June 5, 2025 [2] - Sidoti Small-Cap Virtual Conference on June 11, 2025, from 8:30-9:00 AM (ET) [3] - Zacks SCR Life Sciences Virtual Investor Forum on June 12, 2025, from 10:30-11:00 AM (ET) [3] Webcast Access - Webcasts for the investor events can be accessed through specific links provided for each event, with post-event access also available [1][2][3]

Core Viewpoint - Brompton Split Banc Corp. has renewed its at-the-market equity program to issue Class A and Preferred Shares, replacing the previous program established in April 2023 [1][2]. Group 1: ATM Program Details - The renewed ATM Program allows the Fund to issue shares at prevailing market prices through the Toronto Stock Exchange or other Canadian marketplaces, with maximum gross proceeds of $75 million for each share class [2][3]. - The program will be effective until June 22, 2027, unless terminated earlier by the Fund, and the volume and timing of distributions will be at the Fund's discretion [3]. Group 2: Investment Portfolio - The Fund invests in a portfolio consisting of common shares of the six largest Canadian banks, with the option to hold up to 10% of total assets in global financial companies for diversification [4]. Group 3: Investment Objectives - The investment objective for Class A Shares is to provide regular monthly cash distributions targeted at least at $0.10 per share and growth in net asset value [5]. - The investment objective for Preferred Shares is to provide fixed cumulative preferential quarterly cash distributions of $0.15625 per share (6.25% per annum) and return the original issue price by November 29, 2027 [6]. Group 4: Performance Metrics - Over the last 10 years, Class A Shares have delivered a 12.0% per annum total return based on NAV, outperforming the S&P/TSX Composite Total Return Index by 3.7% per annum [7][10]. - Preferred Shares have returned 5.3% per annum over the last 10 years, outperforming the S&P/TSX Preferred Share Total Return Index by 1.7% per annum [7][10].

Revenue Performance - For the three months ended March 31, 2025, the company generated revenues of $47,328,701, a decrease of 13.65% from $54,808,042 in the same period of 2024[204]. - Franchising revenue increased by 4.03% to $15,719,282 for the three months ended March 31, 2025, compared to $15,110,268 in 2024[210]. - Procurement revenue rose by 8.61% to $14,332,783 for the three months ended March 31, 2025, up from $13,195,984 in 2024[211]. - Management services revenue decreased by 44.25% to $8,728,103 for the three months ended March 31, 2025, down from $15,654,670 in 2024[212]. - Rental services revenue increased significantly by 55.90% to $5,640,514 for the three months ended March 31, 2025, compared to $3,617,941 in 2024[213]. - Other revenues decreased by 59.77% to $2,908,019 for the three months ended March 31, 2025, down from $7,229,179 in 2024[214]. Profitability - Net income attributable to SBC Medical Group Holdings Incorporated for the three months ended March 31, 2025 was $21,502,446, representing an increase of 14.63% from $18,757,752 in 2024[204]. - Gross profit for the three months ended March 31, 2025 was $37,733,084, a decrease of 4.52% from $39,519,375 in 2024[216]. - Net income increased by $2,741,734, or 14.62%, to $21,491,950 for the three months ended March 31, 2025, from $18,750,216 for the same period in 2024[225]. Expenses - Cost of revenues decreased to $9,595,617 for the three months ended March 31, 2025, from $15,288,667 in 2024, primarily due to cost reduction efforts[215]. - Operating expenses decreased by $1,527,480, or 10.14%, to $13,531,010 for the three months ended March 31, 2025, compared to $15,058,490 for the same period in 2024[217]. - Recruiting expense decreased by $512,678, or 67.72%, to $244,377 for the three months ended March 31, 2025, from $757,055 for the same period in 2024[218]. - Depreciation and amortization expense decreased by $507,299, or 52.37%, to $461,405 for the three months ended March 31, 2025, from $968,704 for the same period in 2024[219]. Cash Flow and Financial Position - Cash and cash equivalents increased by $7,011,731, or 37.30%, to $132,055,823 as of March 31, 2025, compared to $96,181,550 as of March 31, 2024[233]. - Net cash provided by operating activities decreased by $1,753,554, or 47.62%, to $1,928,621 for the three months ended March 31, 2025, from $3,682,175 for the same period in 2024[233]. - As of March 31, 2025, the company had retained earnings of $210,965,453[204]. Tax and Compliance - The effective tax rate was 31.67% for the three months ended March 31, 2025, compared to 31.07% for the same period in 2024[224]. - The company qualifies as an "emerging growth company," allowing it to take advantage of certain exemptions from reporting requirements[252]. - The company is classified as a "smaller reporting company," which permits reduced disclosure obligations, including providing only two years of audited financial statements[254]. - The company has not experienced material changes to its critical accounting policies and estimates since the last annual report[251]. - The company has elected not to opt out of the extended transition period for new or revised financial accounting standards, aligning its compliance with private companies[253]. Future Outlook and Strategic Initiatives - The Company expects to deploy capital for investment opportunities in the expanding global medical aesthetics market[230]. - A share repurchase program with an aggregate purchase limit of up to $5 million was approved, set to begin on May 20, 2025[242]. - The revised fee structure effective April 1, 2025, aims to support the establishment of new clinics and is expected to stabilize the business foundation[239]. Liabilities and Financial Risks - As of March 31, 2025, total undiscounted lease payments amount to $5,473,817, with total lease liabilities of $5,443,973 after accounting for imputed interest[245]. - Future minimum borrowing payments total $6,864,995, with the largest repayment of $6,750,622 due in 2027[247]. - The company is exposed to foreign currency exchange rate fluctuations, primarily due to operations in Japan and revenues in Japanese yen, while reporting in U.S. dollars[249]. - There are no off-balance sheet arrangements as of March 31, 2025, indicating a straightforward financial position[248]. - The company borrowed loans from various banks and a financial institution for working capital purposes, indicating reliance on external financing[246]. - The company continues to evaluate its accounting estimates and assumptions, which could lead to actual results differing from expectations[250].

Revenue and Income - Total revenues for Q1 2025 were $47 million, a 14% year-over-year decrease due to the discontinuation of the staffing business and divestitures [4]. - Total revenues for the three months ended March 31, 2025, were $47,328,701, a decrease of 13.7% compared to $54,808,042 for the same period in 2024 [17]. - Net income attributable to SBC Medical Group increased by 15% year-over-year to $22 million, compared to $19 million in Q1 2024 [6]. - Net income attributable to SBC Medical Group Holdings Incorporated for Q1 2025 was $21,502,446, representing an increase of 14.7% from $18,757,752 in Q1 2024 [17]. EBITDA and Margins - EBITDA for Q1 2025 was $25 million, representing a 3% year-over-year decrease, with an EBITDA margin of 52%, up from 46% in Q1 2024 [4]. - EBITDA for the three months ended March 31, 2025, was $24,830,378, with an EBITDA margin of 52%, compared to an EBITDA of $25,479,362 and a margin of 46% in Q1 2024 [23]. - Operating margin improved from 45% in Q1 2024 to 51% in Q1 2025, showcasing enhanced profitability [3]. Customer Metrics - The total number of customers in the last twelve months ended March 31, 2025, was 6.1 million, reflecting a 14% year-over-year increase [4]. - The repeat customer rate for franchise clinics was 71%, indicating strong customer loyalty [4]. - The number of partner clinics increased to 251 as of March 31, 2025, an increase of 36 clinics from the previous year [4]. Cash and Assets - Cash and cash equivalents as of March 31, 2025, were $132.06 million, an increase from $125.04 million at the end of 2024 [12]. - Cash and cash equivalents at the end of the period increased to $132,055,823, up from $96,181,550 at the end of Q1 2024 [21]. - Total assets increased to $284.61 million as of March 31, 2025, compared to $266.08 million at the end of 2024 [15]. Operating Expenses and Other Income - Operating expenses decreased to $13,531,010 in Q1 2025 from $15,058,490 in Q1 2024, reflecting a reduction of 10.1% [17]. - The company reported a gain on redemption of life insurance policies amounting to $8,746,138 in Q1 2025 [17]. - Interest income increased to $55,333 in Q1 2025, compared to $17,689 in Q1 2024, marking a growth of 212.5% [17]. - The net cash provided by operating activities for Q1 2025 was $1,928,621, down from $3,682,175 in Q1 2024 [21]. - The company experienced a foreign currency translation adjustment resulting in other comprehensive income of $9,808,327 in Q1 2025, compared to a loss of $10,193,852 in Q1 2024 [17]. Share Information - The weighted average shares outstanding for basic and diluted earnings per share increased to 103,276,637 in Q1 2025 from 94,192,433 in Q1 2024 [17]. Strategic Focus - The company is focusing on strategic expansion and optimizing its profitability structure to adapt to changing market dynamics [3].

Core Viewpoint - The company has announced a share repurchase program, believing its current share price does not reflect its business performance and growth potential in the aesthetic-medical market [2][3]. Share Repurchase Program - The company will repurchase shares starting May 20, 2025, with a maximum aggregate amount of US$5 million, funded by surplus cash and future free cash flow [7]. - The repurchase will be conducted in the open market at prevailing prices, including through Rule 10b5-1 plans [2]. - The company plans to issue shares as future stock-based compensation in proportion to the number of repurchased shares [2]. Financial Strategy - The company aims to balance growth investment with shareholder returns, considering dividend distributions to enhance total shareholder return [3]. - To allocate funds for the repurchase, the company will defer further purchases under its Bitcoin purchase plan, which targeted JPY1 billion [3]. Acquisition Plans - The company is reviewing the acquisition of all shares of Risenet Co., Ltd., which provides management-support services to its clinics [4]. - The acquisition details, including price and impact on consolidated financials, are yet to be determined [4]. Company Overview - SBC Medical, headquartered in Irvine, California, and Tokyo, Japan, provides management services and products to cosmetic treatment centers, focusing on franchise clinics [5]. - Services include advertising, staff management, customer booking, facility rentals, medical equipment procurement, and IT solutions [5].

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Core Insights - SBC Medical Group Holdings has completed the purchase of 5 Bitcoin (BTC) as part of its strategic financial policy aimed at enhancing long-term corporate value and responding to macroeconomic fluctuations [1][2] - The acquisition of Bitcoin is viewed as a means to preserve asset value, particularly during inflationary periods, and to improve financial stability through diversified investments [1] - The company emphasizes adherence to asset diversification and prudent financial management within a robust risk management framework [1] Details of BTC Purchase - Purchased Cryptocurrency: Bitcoin (BTC) [2] - Purchase Amount: 5 BTC (approximately ¥60 million / US$0.4 million) [2] - Purchase Date: April 14, 2025 [2] Company Overview - SBC Medical is headquartered in Irvine, California, and Tokyo, Japan, focusing on providing management services and products to cosmetic treatment centers [3] - The company offers comprehensive management services to franchise clinics, including advertising, staff management, customer booking, housing assistance, construction, medical equipment procurement, and IT solutions [3]

Company Overview - SBC Medical Group Holdings Incorporated is a global franchise and provider of services for aesthetic clinics, headquartered in Irvine, California, and Tokyo, Japan [7] - The company focuses on providing comprehensive management services to franchisee clinics, including advertising, staff management, booking reservations, employee housing assistance, clinic construction, medical equipment procurement, and IT software solutions [7] Upcoming Event - SBC Medical has been invited to present at the Emerging Growth Conference on April 17, 2025, at 9:05 AM Eastern time for a duration of 30 minutes [1][3] - The event will allow existing shareholders and the investment community to interact with the Company's CFO, Yuya Yoshida, in real time [2][3] - Attendees can submit questions in advance or ask during the event, with the CFO aiming to address as many as possible [3] Conference Details - The Emerging Growth Conference is designed for public companies to present new products, services, and major announcements efficiently [5] - The conference will cover a wide range of growth sectors and is expected to attract tens of thousands of individual and institutional investors, as well as investment advisors and analysts [6] - All sessions will be conducted through video webcasts, and an archived version will be available for those unable to attend live [4][6]

Core Insights - Shonan Beauty Clinic, supported by SBC Medical Group Holdings, is expanding its multi-brand strategy with the launch of "SBC NEO Skin Clinic" on April 2, 2025, as part of its long-term growth plan [2][3] Company Strategy - The new "SBC NEO Skin Clinic" brand focuses on non-invasive aesthetic dermatology, utilizing advanced laser devices and treatments recognized in South Korea and Western markets, aiming to make cutting-edge aesthetic treatments more accessible [3][4] - The brand represents a strategic shift from traditional surgical procedures to non-invasive treatments, targeting consumers who previously sought aesthetic services abroad, particularly in South Korea [4] - SBC Medical aims to enhance its competitive advantage by integrating the latest technological advancements and adapting its business model to meet evolving market needs [4][5] Market Positioning - Celebrating its 25th anniversary, Shonan Beauty Clinic operates Japan's largest aesthetic medical network, setting industry benchmarks through high-cost performance and advanced medical expertise [3] - The introduction of "SBC NEO Skin Clinic" is expected to strengthen SBC's market position and diversify its revenue base by offering tailored solutions to a broader customer demographic [3][4] Business Development - Following its Nasdaq listing in September 2024, SBC Medical is accelerating its global expansion through new brand development and diversified business portfolios, committed to enhancing shareholder value and leading the global aesthetic medical industry [5][6]