On August 9, 2024, AirSculpt Technologies Inc (AIRS, Financial) released its 8-K filing for the second quarter of fiscal 2024. AirSculpt Technologies Inc is a national provider of body contouring procedures delivering a premium consumer experience under its brand Elite Body Sculpture. The company provides custom body contouring using its proprietary AirSculpt method, which removes unwanted fat in a minimally invasive procedure.
Performance Overview
AirSculpt Technologies Inc reported a revenue of $51.0 million for the second quarter of 2024, an 8.4% decline from $55.7 million in the same period last year. The company also reported a net loss of $3.2 million, compared to a net income of $1.8 million in the second quarter of 2023. Adjusted EBITDA for the quarter was $6.9 million, down from $14.6 million in the previous year.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Revenue | $51.0 million | $55.7 million |
| Net Income | $(3.2) million | $1.8 million |
| Adjusted EBITDA | $6.9 million | $14.6 million |
| Case Volume | 3,949 | 4,186 |
Challenges and Strategic Focus
The company attributed its revenue decline to a challenging consumer spending environment and increased brand awareness spending, which has a longer case conversion cycle. Interim CEO and CFO Dennis Dean commented,
Our revenue performance in the quarter reflected the challenging consumer spending environment with profitability further pressured by brand awareness spend, which has a much longer case conversion cycle."
Despite these challenges, the company noted that its new locations opened in 2023 performed ahead of expectations, indicating strong demand for its procedures. Dean emphasized the company's near-term priorities: returning to core business, reducing costs, stabilizing revenue, and maintaining a strong balance sheet.
Financial Achievements and Industry Impact
For the first six months of 2024, AirSculpt Technologies Inc reported a revenue of $98.6 million, a 2.8% decline from $101.5 million in the same period last year. The company achieved a net income of $2.8 million, down from $1.8 million in the prior year period. Adjusted EBITDA for the first half of 2024 was $14.2 million, compared to $24.1 million in the previous year.
Income Statement and Balance Sheet Highlights
Key details from the income statement include:
- Cost of service: $18.8 million, down from $19.9 million in Q2 2023
- Selling, general, and administrative expenses: $34.3 million, up from $27.9 million in Q2 2023
- Depreciation and amortization: $2.9 million, up from $2.5 million in Q2 2023
Balance sheet highlights as of June 30, 2024, include:
- Cash and cash equivalents: $9.9 million
- Total assets: $210.1 million
- Total liabilities: $125.1 million
- Total stockholders' equity: $85.0 million
Liquidity and Cash Flow
As of June 30, 2024, AirSculpt Technologies Inc had $9.9 million in cash and cash equivalents and $5.0 million of borrowing capacity under its revolving credit facility. The company generated $6.8 million in operating cash flow for the first six months of 2024, compared to $18.5 million for the same period in 2023.
Revised 2024 Guidance
The company has revised its full-year 2024 revenue and adjusted EBITDA guidance as follows:
- Revenues of approximately $180 to $190 million
- Adjusted EBITDA of approximately $23 to $28 million
- Adjusted EBITDA to cash flow from operations conversion ratio of approximately 50%
- Five new centers to open in the second half of 2024
For more detailed information, please refer to the company's 8-K filing.
Explore the complete 8-K earnings release (here) from AirSculpt Technologies Inc for further details.
