Document


First Quarter

•Cases increased 2.9% over the prior year period to 3,746
•Revenue increased 3.9% over the prior year to $47.6 million

•Net income of $6.0 million for the quarter compared to $(0.0) million in the prior year period


•Diluted income per share for the quarter of $0.10




•Six planned openings in 2024

"We grew revenues about 4% in the quarter driven by the de novo locations we opened in the prior year. These centers continue to outpace our internal projections and give us even greater confidence in our 2024 openings,” said Todd Magazine, Chief Executive Officer of AirSculpt. “Consistent with other companies in aesthetics and high-end retail, we experienced softness due to macro-economic headwinds; which affected our same store performance. Despite this, we continued to invest in customer acquisition and awareness-building initiatives, which drove most of our decline in adjusted EBITDA over the comparable period. As a result of these investments, we are already seeing signs of improved lead traffic and look forward to stronger performance as the year progresses.”

Case volume was 3,746 for the first quarter of 2024, representing growth of 2.9% over the prior year period case volume of 3,640. Revenue for the first quarter of 2024 increased by 3.9% to $47.6 million from $45.8 million in the prior year period. Net income for the quarter was $6.0 million compared to a net loss of $0.0 million in the prior year period. The Company’s adjusted EBITDA for the quarter was $7.3 million compared to $9.5 million for the prior year period. For the three months ended March 31, 2024 and 2023, pre-opening de novo and relocation costs were $0.0 million and $1.3 million, respectively.

As of March 31, 2024, the Company had $11.0 million in cash and cash equivalents and $5.0 million of borrowing capacity under its revolving credit facility. The Company generated $3.4 million in operating cash flow for the three months ended March 31, 2024, compared to $6.2 million for the same period of 2023.

AirSculpt will hold a conference call today, May 10, 2024 at 8:30 am (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 ID 13745132 or by visiting the link below to request a return call for instant telephone access to the event.

To learn more about AirSculpt Technologies, please visit the Company's website at https://investors.elitebodysculpture.com. AirSculpt Technologies uses its website as a channel of distribution for material Company information. Financial and other material information regarding AirSculpt Technologies is routinely posted on the Company's website and is readily accessible.

AirSculpt is a next-generation body contouring treatment designed to optimize both comfort and precision, available exclusively at AirSculpt offices. The minimally invasive procedure removes fat and tightens skin, while sculpting targeted areas of the body, allowing for quick healing with minimal bruising, tighter skin, and precise results.

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, but the absence of these words does not mean that a statement is not forward-looking. 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. You are cautioned that there are important risks and uncertainties, many of which are beyond our control, that could cause our actual results, level of activity, performance, or achievements to differ materially from the projected results, level of activity, performance or achievements that are expressed or implied by such forward-looking statements. We qualify all of our forward-looking statements by these cautionary statements, including those factors discussed in the section titled “Risk Factors” in our Annual Report on Form 10-K.

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; inability to open new centers due to rising interest rates and increased operating expenses due to rising inflation; increased competition in the weight loss and obesity solutions market, including as a result of the recent regulatory approval, increased market acceptance, availability and customer awareness of weight-loss drugs; 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, macroeconomic conditions, including inflation and the threat of recession, 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 “Item 1A. Risk Factors” in our Annual Report on Form 10-K and in other filings we make from time to time with the U.S. Securities and Exchange Commission could cause our results to differ materially from those expressed in the forward-looking statements made in this press release.

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 represent our estimates and assumptions only as of the date they were made, which are inherently subject to change, and we are under no duty and we assume no obligation to update any of these forward-looking statements, or to update the reasons actual results could differ materially from those anticipated after the date of this press release to conform our prior statements to actual results or revised expectations, except as required by law. Given these uncertainties, investors should not place undue reliance on these forward-looking statements.

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, Adjusted EBITDA Margin, Adjusted Net Income and Adjusted Net Income per Share, which are non-GAAP financial measures. Although the Company provides guidance for Adjusted EBITDA, it is not able to provide guidance for net income, the most directly comparable GAAP measure. Certain elements of the composition of net income, including equity-based compensation, are not predictable, making it impractical for us to provide guidance on net income or to reconcile our Adjusted EBITDA guidance to net income without unreasonable efforts. For the same reasons, the Company is unable to address the probable significance of the unavailable information regarding net income, which could be material to future results.

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.


	Three Months Ended March 31,
	2024		2023
Revenue	$	47,620	$	45,813
Operating expenses:
Cost of service	18,042		18,017
Selling, general and administrative(1)	15,756		23,882

Depreciation and amortization	2,805		2,336
Loss/(gain) on disposal of long-lived assets	5		(184)
Total operating expenses	36,608		44,051
Income from operations	11,012		1,762
Interest expense, net	1,532		1,735
Pre-tax net income	9,480		27
Income tax expense	3,451		41
Net income/(loss)	$	6,029	$	(14)

Income/(loss) per share of common stock
Basic	$	0.10	$	(0.00)
Diluted	$	0.10	$	(0.00)
Weighted average shares outstanding
Basic	57,422,058		56,443,370
Diluted	58,415,163		56,443,370

(1) As of the three months ended March 31, 2024, this amount contains a cumulative reversal of stock compensation expense of $10.4 million related to reassessing the probability of achieving the performance target on certain of the Company's performance-based stock units. For further discussion, see Note 6 to the condensed consolidated financial statements of the Company's Quarterly Report on Form 10-Q for the Quarterly Period ended March 31, 2024.


	March 31, 2024		December 31, 2023
Balance Sheet Data (at period end):
Cash and cash equivalents	$	10,969	$	10,262
Total current assets	14,994		15,961
Total assets	$	202,714	$	204,019

Current portion of long-term debt	$	2,656	$	2,125
Deferred revenue and patient deposits	2,038		1,463
Total current liabilities	21,765		20,315
Long-term debt, net	68,522		69,503
Total liabilities	$	119,211	$	120,027

Total stockholders’ equity	$	83,503	$	83,992


(1) A reconciliation of this non-GAAP financial measure appears below.
(2) Defined as Adjusted EBITDA as a percentage of revenue.
(3) For the three months ended March 31, 2024 and 2023, pre-opening de novo and relocation costs were $0.0 million and $1.3 million, respectively.


(1) For the three months ended March 31, 2024 and 2023, we define same-center case and revenue growth as the growth in each of our cases and revenue at facilities that were owned and operated during the three month period ended March 31, 2024 and 2023, respectively. At facilities that were not owned or operated for the entirety of the prior year period, the current year period has been pro-rated to reflect only growth experienced during the portion of the three months ended March 31, 2024 in which such facilities were owned and operated during the three months ended March 31, 2023. We define same-center facilities and procedure rooms based on if a facility was owned or operated as of March 31, 2023.

We report our financial results in accordance with GAAP, however, management believes the evaluation of our ongoing operating results may be enhanced by a presentation of Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income and Adjusted Net Income per Share, which are non-GAAP financial measures.

We include Adjusted EBITDA and Adjusted Net Income because they are important measures on which our management assesses and believes investors should assess our operating performance. We consider Adjusted EBITDA and Adjusted Net Income each to be an important measure because they help illustrate underlying trends in our business and our historical operating performance on a more consistent basis. Adjusted EBITDA has limitations as an analytical tool including: (i) Adjusted EBITDA does not include results from equity-based compensation and (ii) Adjusted EBITDA does not reflect interest expense on our debt or the cash requirements necessary to service interest or principal payments. Adjusted Net Income has limitations as an analytical tool because it does not include results from equity-based compensation.

We define Adjusted EBITDA Margin as Adjusted EBITDA as a percentage of revenue. We define Adjusted Net Income per Share as Adjusted Net Income divided by weighted average basic and diluted shares. We included Adjusted EBITDA Margin and Adjusted Net Income per Share because they are important measures on which our management assesses and believes investors should assess our operating performance. We consider Adjusted EBITDA Margin and Adjusted Net Income per Share to be important measures because they help illustrate underlying trends in our business and our historical operating performance on a more consistent basis.


	Three Months Ended March 31,
	2024			2023
Net income/(loss)	$	6,029		$	(14)
Plus

Equity-based compensation(1)	(6,781)			4,388


Restructuring and related severance costs	296			1,154
Depreciation and amortization	2,805			2,336
Loss/(gain) on disposal of long-lived assets	5			(184)
Interest expense, net	1,532			1,735
Income tax expense	3,451			41
Adjusted EBITDA	$	7,337		$	9,456
Adjusted EBITDA Margin	15.4		%	20.6		%


	Three Months Ended March 31,
		2023		2022
Net income/(loss)		$	6,029	$	(14)
Plus

Equity-based compensation(1)		(6,781)		4,388


Restructuring and related severance costs		296		1,154
Loss/(gain) on disposal of long-lived assets		5		(184)
Tax effect of adjustments		2,331		(459)
Adjusted net income		$	1,880	$	4,885

Adjusted net income per share of common stock (1)
Basic		$	0.03	$	0.09
Diluted		$	0.03	$	0.09
Weighted average shares outstanding
Basic		57,422,058		56,443,370
Diluted		58,415,163		57,309,392


	Three Months Ended March 31,
	2024		2023
Cash Flow Data:
Net cash provided by (used in):
Operating activities	$	3,365	$	6,219
Investing activities	(1,562)		(3,815)
Financing activities	(1,096)		(737)


	Three Months Ended March 31,
	2024		2023
Same-center Information (1):
Cases	3,268		3,640
Case growth	(10.2)%		N/A
Revenue per case	$	12,637	$	12,586
Revenue per case growth	0.4%		N/A
Number of facilities	23		23
Number of total procedure rooms	49		49