AirSculpt Technologies(AIRS)2025-05-02 19:16Financial Performance - Revenue for Q1 2025 was $39.371 million, a decrease of 17% compared to $47.620 million in Q1 2024[18] - The net loss for Q1 2025 was $2.847 million, compared to a net income of $6.029 million in Q1 2024, reflecting a significant decline in profitability[18] - Adjusted net loss for the three months ended March 31, 2025, was $1.1 million, compared to an adjusted net income of $1.9 million for the same period in 2024[123] - For the three months ended March 31, 2025, the company generated approximately $39.4 million in revenue, a decline of approximately 17% compared to $47.6 million for the same period in 2024[101] - The company reported a net loss of $2.847 million for Q1 2025, compared to a net income of $6.029 million in Q1 2024[112] Expenses and Costs - Operating expenses increased to $40.960 million in Q1 2025, up from $36.608 million in Q1 2024, primarily due to a rise in selling, general, and administrative expenses[18] - Selling, general and administrative expenses increased by $6.0 million, or 38.2%, for the three months ended March 31, 2025, with selling expenses decreasing to approximately $9.6 million from $11.2 million[126][127] - Cost of service decreased by $2.1 million, or 11.6%, compared to the same period in 2024, with cost of service as a percentage of revenue at 40.5% for 2025 and 37.9% for 2024[125] - The company incurred rent expenses of $1.8 million for medical office suites in Q1 2025, compared to $1.5 million in Q1 2024[76] Cash and Liquidity - Cash and cash equivalents decreased to $5.553 million as of March 31, 2025, down from $8.235 million at the end of 2024[15] - The Company maintains cash balances that may exceed the amount covered by the Federal Deposit Insurance Corporation, with no losses experienced in such accounts[37] - The company is required to maintain minimum liquidity of $3.0 million as of March 31, 2025, increasing to $7.5 million thereafter[147] Assets and Liabilities - Total assets as of March 31, 2025, were $203.260 million, a decrease from $209.996 million at the end of 2024[15] - Total liabilities decreased to $125.927 million as of March 31, 2025, compared to $130.706 million at the end of 2024[15] - As of March 31, 2025, total debt, net was $68.5 million, down from $69.7 million as of December 31, 2024[74] Tax and Regulatory - The effective tax rate for the three months ended March 31, 2025, was approximately 11.4%, significantly lower than the 36.4% rate for the same period in 2024[59] - The effective tax rate for the three months ended March 31, 2025, was 11.4%, compared to 36.4% for the same period in 2024[131] Operational Metrics - The company performed 3,076 cases in Q1 2025, down from 3,746 cases in Q1 2024, representing a case growth decline of 17.9%[104] - Same-center case growth declined by 24.3% in Q1 2025, with revenue per case slightly increasing by 0.5% to $12,777[107] - The number of facilities increased to 32 in Q1 2025 from 27 in Q1 2024, and the total number of procedure rooms rose to 67 from 57[104] Debt and Financing - The Company voluntarily prepaid $10.0 million of the principal balance of term loans under the Credit Agreement on September 29, 2023[69] - The Company entered into a credit agreement on November 7, 2022, with an original aggregate principal amount of term loans of $85.0 million and a revolving loan facility of up to $5.0 million[144] - As of March 31, 2025, the total indebtedness of the company was $73.5 million, including $5.0 million drawn on the revolving credit facility[143] Equity and Compensation - The Company granted 888,301 restricted stock units (RSUs) in Q1 2025, up from 411,456 RSUs in Q1 2024[79] - The Company recorded equity-based compensation expense of $1.2 million for Q1 2025, compared to a reversal of $(6.8) million in Q1 2024[83] Strategic Initiatives - The company has implemented a cost reduction program expected to eliminate approximately $3.0 million in annual overhead costs and contracted expenses[102] - The company is focusing on new product innovation, including a pilot skin tightening procedure as a standalone offering[105] - The company plans to launch expanded consumer financing offerings across all centers by the end of Q2 2025[105] Miscellaneous - There were no changes in internal control over financial reporting that materially affected the company during the quarter ended March 31, 2025[157] - No relevant financial performance or user data was provided in the documents[169] - There are no future outlook or performance guidance details available in the content[170] - No information regarding new products or technology development was found in the documents[171] - There are no mentions of market expansion or acquisitions in the provided content[172] - No new strategies or initiatives were outlined in the documents[172]