Cutera : Announces Second Quarter 2022 Financial Results - Form 8-K
August 05, 2022 at 11:56 am EDT
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Cutera Announces Second Quarter 2022 Financial Results
Record second-quarter revenue driven by ongoing momentum in Capital Equipment and Consumable Product segments
Over one hundred new patients treated during the first quarter of AviClear's availability
Management reiterates full-year revenue guidance despite $15 million of annual foreign exchange headwinds
BRISBANE, California, August 4, 2022 ─ Cutera, Inc. (NASDAQ: CUTR) ("Cutera" or the "Company"), a leading provider of laser and other energy-based aesthetic systems for practitioners worldwide, today reported financial results for the second quarter ended June 30, 2022.
Second Quarter 2022 Financial and Operational Highlights
•Consolidated revenue was $64.2 million, driven by strength in capital equipment and consumable product demand.
•Over 50 AviClear devices were placed and activated during the first quarter of the product's limited commercial release.
•Gross Margin of 54.6% in the quarter, compared to 57.7% in the prior-year period.
◦Excluding the 190 basis point impact from the AviClear program and foreign exchange headwinds of approximately 180 basis points, the gross margin would have been 58.3%.
•Operating expenses were $45.1 million in the quarter, compared to $31.7 million in the prior-year period. Operating expenses during the period included $7.0 million in AviClear program spending in addition to $2.4 million of ERP implementation expenses.
•GAAP Net loss was $47.3 million, inclusive of an non-recurring charge of $34.4 million for the extinguishment of 50% of the 2026 convertible notes.
•Adjusted EBITDA was a loss of $1.6 million compared to a gain of $6.8 million in the prior-year period.
◦Excluding the non-GAAP AviClear program impacts of $7.5 million in the quarter and foreign exchange headwinds of $2.4 million over the prior year period, comparable adjusted EBITDA would have been $8.3 million.
•Completed $240 million convertible debt financing, ending the quarter with $278.2 million in cash, cash equivalents, and marketable securities on the balance sheet after retiring $69.1 million in convertible notes due 2026.
Key Revenue Metrics
Three Months Ended June 30, 2022
% Change 2022 Vs 2021
Constant Currency
Capital Equipment
$
43.7
23
%
27
%
Skincare
$
9.6
-18
%
-6
%
Consumables
$
5.3
20
%
23
%
Service
$
5.6
-17
%
-13
%
Recurring
$
20.6
-11
%
-2
%
Total Revenue
$
64.2
10
%
15
%
Key Profit Metrics
Three Months Ended June 30, 2022
Constant Currency
GAAP Margin %
54.6%
56.4%
Non-GAAP Margin %
55.6%
57.4%
Adjusted EBITDA
($1.6)
$0.7
% Margin
-2.5
%
1.2%
Key Revenue Metrics
Six Months Ended June 30, 2022
% Change 2022 Vs 2021
Constant Currency
Capital Equipment
$
80.2
25
%
29
%
Skincare
$
21.3
-12
%
-1
%
Consumables
$
9.2
25
%
28
%
Service
$
11.6
-10
%
-7
%
Recurring
$
42.1
-5
%
2
%
Total Revenue
$
122.2
13
%
18
%
Key Profit Metrics
Six Months Ended June 30, 2022
Constant Currency
GAAP Margin %
54.7%
56.3%
Non-GAAP Margin %
55.7%
57.2%
Adjusted EBITDA
($5.4)
($1.5)
% Margin
-4.5%
-1.2%
"I am excited by the momentum we continue to see in our core business, as prior investments in our sales force drove strong results in capital and consumables product segments in North America, Europe, and Australia/New Zealand in particular. Our team is further encouraged by the resiliency and strength of underlying demand trends in the marketplace," commented Dave Mowry, Chief Executive Officer of Cutera, Inc. "During the quarter, our team achieved the successful launch of AviClear, our first-mover product for the treatment of acne. In the first three months of our limited commercial release of AviClear, we were able to validate successful clinical outcomes in the hands of our customers, verify patient satisfaction with AviClear post-treatment patient survey data, and onboard dozens of practices in the use of the AviClear Laser as they look to provide their patients with a drug-free solution for acne while enhancing the profitablilty of their practices. We are looking forward to expanding the footprint of new AviClear practices during the next phase of the limited commercial release and significantly ramping the utilization of the device."
2022 Outlook
Management is reiterating its 2022 revenue guidance of $255 million to $260 million, entirely absorbing the impact of the unprecedented foreign exchange headwinds of $15 million, implying constant currency growth of 17% to 19%. This guidance does not include revenue from our AviClear device as we continue with its limited commercial release. The company plans to add over 100 new AviClear devices into the market during the course of the third quarter of 2022. Based on current AviClear trends, management expects to move into a full commercial launch by the end of the current calendar year.
Conference Call
The Company's management will host a conference call to discuss these results and related matters today at 1:15 p.m. PT (4:15 p.m. ET). Participating in the call will be Dave Mowry, Chief Executive Officer, and Rohan Seth, Chief Financial Officer.
To participate in the conference call, dial 1-800-319-4610 (domestic) or +1-631-891-4304 (international).
The call will also be a webcast and can be accessed from the Investor Relations section of Cutera's website at http://www.cutera.com/. The webcast replay of the call will be available at the same site approximately one hour after the end of the call.
About Cutera, Inc.
Brisbane, California-based Cutera is a leading provider of aesthetic and dermatology solutions for practitioners worldwide. Since 1998, Cutera has been developing innovative, easy-to-use products that harness the power of science and nature to enable medical practitioners to offer safe and effective treatments to their patients. For more information, call +1 415-657-5500 or 1-888-4CUTERA or visit www.cutera.com.
*Use of Non-GAAP Financial Measures
In this press release, in order to supplement the Company's condensed consolidated financial statements presented in accordance with Generally Accepted Accounting Principles, or GAAP, management has disclosed certain non-GAAP financial measures for the statement of operations and net income (loss) per share. Non-GAAP adjustments include stock-based compensation, depreciation, amortization, executive and other non-recurring separation costs, customer relationship management ("CRM") and enterprise resource planning ("ERP") system costs, non-recurring legal and litigation costs, as well as the net tax impact of excluding these items. From time to time in the future, there may be other items that we may exclude if the Company believes that doing so is consistent with the goal of providing useful information to investors and management. The Company has provided a reconciliation of each non-GAAP financial measure used in this earnings release to the most directly comparable GAAP financial measure. The Company has not provided a reconciliation of non-GAAP guidance measures to the corresponding GAAP measures on a forward-looking basis due to the potential significant variability, limited visibility, unpredictability, or unique non-recurring nature of the items. Forward-looking non-GAAP measures include adjusted EBITDA. The Company defines adjusted EBITDA as earnings before interest, taxes, depreciation and amortization, stock-based
compensation, executive and other non-recurring separation costs, customer relationship management and enterprise resource planning system costs, and non-recurring legal and litigation costs.
Company management uses these measurements as aids in monitoring the Company's ongoing financial performance from quarter to quarter, and year to year, on a regular basis and for benchmarking against other similar companies. Non-GAAP financial measures used by the Company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies. These non-GAAP financial measures should be considered along with, but not as alternatives to, the operating performance measure as prescribed by GAAP. Non-GAAP financial measures for the statement of operations and net income per share exclude the following:
Non-cash expenses for stock-based compensation. The Company has excluded the effect of stock-based compensation expenses in calculating its non-GAAP operating expenses and net income measures. Although stock-based compensation is a key incentive offered to the Company's employees, the Company continues to evaluate its business performance excluding stock-based compensation expenses. The Company records stock-based compensation expense related to grants of options, employee stock purchase plan, and performance and restricted stock. Depending upon the size, timing and the terms of the grants, this expense may vary significantly but will recur in future periods. The Company believes that excluding stock-based compensation better allows for comparisons to its peer companies;
Depreciation and amortization. The Company has excluded depreciation and amortization expense in calculating its non-GAAP operating expenses and net income measures. Depreciation and amortization are non-cash charges to current operations;
Executive and other non-recurring separation costs. We have excluded costs associated with the resignation of our former Executive Officers in calculating our non-GAAP operating expenses and net income measures. We exclude these and other non-recurring employee separation costs because we believe that these items do not reflect future operating expenses;
Customer Relationship Management. We have excluded CRM system costs related to direct and incremental costs incurred in connection with our multi-phase implementation of a new CRM solution and the related technology infrastructure costs. We exclude these costs because we believe that these items do not reflect future operating expenses and will be inconsistent in amounts and frequency making it difficult to contribute to a meaningful evaluation of our operating performance;
Enterprise Resource Planning. We have excluded ERP system costs related to direct and incremental costs incurred in connection with our multi-phase implementation of a new ERP solution and the related technology infrastructure costs. We exclude these costs because we believe that these items do not reflect future operating expenses and will be inconsistent in amounts and frequency making it difficult to contribute to a meaningful evaluation of our operating performance; and
Non-recurring legal and litigation costs. We have excluded costs incurred related to third party litigation and disputes, that are of a non-recurring nature.
The Company believes that excluding all of the items above allows users of its financial statements to better review and assess both current and historical results of operations.
Safe Harbor Statement
Certain statements in this press release, other than purely historical information, are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). These statements include, but are not limited to, Cutera's plans, objectives, strategies, financial performance and outlook, product launches and performance, trends, prospects or future events and involve known and unknown risks that are difficult to predict. As a result, the Company's actual financial results, performance, achievements or prospects may differ materially from those expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by the use of words such as "may,""could,""seek,""guidance,""predict,""potential,""likely,""believe,""will,""should,""expect,""anticipate,""estimate,""plan,""intend,""forecast,""foresee" or variations of these terms and similar expressions, or the negative of these terms or similar expressions. Forward-looking statements are based on management's current, preliminary expectations and are subject to risks and uncertainties, which may cause Cutera's actual results to differ materially from the statements contained herein. These statements are not guarantees of future performance, and stockholders should not place undue reliance on forward-looking statements. There are a number of risks, uncertainties and other important factors, many of which are beyond the Company's control, that could cause its actual results to differ materially from the forward-looking statements contained in this press release, including those described in the "Risk Factors" section of Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, the Registration Statement on Form S-,8 and other documents filed from time to time with the United States Securities and Exchange Commission by Cutera.
All information in this press release is as of the date of its release. Accordingly, undue reliance should not be placed on forward-looking statements. Cutera undertakes no obligation to update publicly any forward-looking statements to reflect new information, events or circumstances after the date they were made, or to reflect the occurrence of unanticipated events. If the Company updates one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those or other forward-looking statements. Cutera's financial performance for the first quarter ended March 31, 2022, as discussed in this release, is preliminary and unaudited, and subject to adjustment.
Cutera, Inc.
Greg Barker
VP, Corporate FP&A
415-657-5500
IR@cutera.com
CUTERA, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
June 30,
2022
December 31,
2021
Assets
Current assets:
Cash and cash equivalents
$
75,050
$
164,164
Marketable investments
203,126
-
Accounts receivable, net
32,148
31,449
Inventories, net
45,410
39,503
Other current assets and prepaid expenses
17,579
14,545
Total current assets
373,313
249,661
Property and equipment, net
24,470
3,019
Deferred tax asset
698
778
Goodwill
1,339
1,339
Operating lease right-of-use assets
13,771
14,627
Other long-term assets
9,801
10,169
Restricted cash
700
700
Total assets
$
424,092
$
280,293
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable
$
25,365
$
7,891
Accrued liabilities
47,539
54,100
Operating leases liabilities
2,714
2,419
Deferred revenue
10,098
9,490
Total current liabilities
85,716
73,900
Deferred revenue, net of current portion
1,429
1,335
Operating lease liabilities, net of current portion
12,368
13,483
Convertible notes, net of unamortized debt issuance costs
299,856
134,243
Other long-term liabilities
849
763
Total liabilities
400,218
223,724
Stockholders' equity:
Common stock
20
18
Additional paid-in capital
144,628
114,724
Accumulated other comprehensive loss
(183)
-
Accumulated deficit
(120,591)
(58,173)
Total stockholders' equity
23,874
56,569
Total liabilities and stockholders' equity
$
424,092
$
280,293
CUTERA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Three Months Ended
Six Months Ended
June 30,
2022
June 30,
2021
June 30,
2022
June 30,
2021
Products
$
58,589
$
51,812
$
110,655
$
95,363
Service
5,635
6,777
11,583
12,894
Total net revenue
64,224
58,589
122,238
108,257
Products
25,899
20,892
48,811
39,224
Service
3,281
3,908
6,595
7,534
Total cost of revenue
29,180
24,800
55,406
46,758
Gross profit
35,044
33,789
66,832
61,499
Gross margin %
54.6
%
57.7
%
54.7
%
56.8
%
Operating expenses:
Sales and marketing
27,001
18,410
51,945
33,478
Research and development
6,859
4,850
13,358
8,962
General and administrative
11,248
8,461
24,750
15,826
Total operating expenses
45,108
31,721
90,053
58,266
(Loss) income from operations
(10,064)
2,068
(23,221)
3,233
Interest and other income expense, net
Amortization of debt issuance costs
(298)
(215)
(517)
(267)
Interest on convertible notes
(1,149)
(778)
(1,927)
(969)
Loss on extinguishment of convertible notes
(34,423)
-
(34,423)
-
Gain on extinguishment of PPP loan
-
7,185
-
7,185
Other expense, net
(1,528)
(392)
(2,283)
(1,415)
Loss before income taxes
(47,462)
7,868
(62,371)
7,767
Income tax expense
(186)
122
47
380
Net loss
$
(47,276)
$
7,746
$
(62,418)
$
7,387
Net income (loss) per share:
Basic
$
(2.53)
$
0.43
$
(3.39)
$
0.41
Diluted
$
(2.53)
$
0.39
$
(3.39)
$
0.40
Weighted-average number of shares used in per share calculations:
Basic
18,700
17,862
18,392
17,815
Diluted
18,700
22,453
18,392
20,855
CUTERA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Three Months Ended
Six Months Ended
June 30, 2022
June 30, 2021
June 30, 2022
June 30, 2021
Cash flows from operating activities:
Net loss
$
(47,276)
$
7,746
$
(62,418)
$
7,387
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Stock-based compensation
4,733
2,919
8,776
4,765
Depreciation and amortization
502
346
929
707
Amortization of contract acquisition costs
567
458
1,219
1,003
Amortization of debt issuance costs
298
215
517
267
Impairment of capitalized cloud computing costs
-
-
-
182
Change in deferred tax asset
39
6
80
51
Provision for excess and obsolete inventories
200
506
558
699
Provision for credit losses
217
274
409
492
Loss (gain) on sale of property and equipment
49
(23)
63
(82)
PPP loan forgiveness
-
(7,185)
-
(7,185)
Change in right-of-use asset
670
-
1,308
604
Loss on extinguishment of convertible notes
34,423
-
34,423
-
Changes in assets and liabilities:
Accounts receivable, net
804
(2,026)
(1,108)
(4,433)
Inventories, net
(5,524)
(443)
(18,059)
(6,657)
Other current assets and prepaid expenses
2,577
1,483
(3,034)
(77)
Other long-term assets
(686)
(1,220)
(1,071)
(1,720)
Accounts payable
9,016
1,179
14,771
(474)
Accrued liabilities
(889)
(369)
(6,878)
9,653
Operating lease liabilities
(664)
33
(1,272)
(530)
Deferred revenue
463
(334)
702
166
Net cash (used in) provided by operating activities
(481)
3,565
(30,085)
4,818
Cash flows from investing activities:
Acquisition of property, equipment and software
(7,917)
(269)
(8,238)
(370)
Disposal of property and equipment
-
19
-
71
Purchase of marketable investments
(129,251)
-
(203,309)
-
Net cash used in investing activities
(137,168)
(250)
(211,547)
(299)
Cash flows from financing activities:
Proceeds from exercise of stock options and employee stock purchase plan
1,288
1,501
1,440
1,897
Purchase of capped call
(31,671)
-
(31,671)
(16,134)
Proceeds from issuance of convertible notes
240,000
-
240,000
138,250
Payment of issuance costs of convertible notes
(6,956)
-
(6,956)
(4,717)
Extinguishment of convertible notes
(45,777)
-
(45,777)
-
Taxes paid related to net share settlement of equity awards
(1,784)
(452)
(4,234)
(1,451)
Payments on finance lease obligations
(133)
(96)
(284)
(211)
Net cash (used in) provided by financing activities
154,967
953
152,518
117,634
Net (decrease) increase in cash, cash equivalents and restricted cash
17,318
4,268
(89,114)
122,153
Cash, cash equivalents, and restricted cash at beginning of period
58,432
164,932
164,864
47,047
Cash, cash equivalents, and restricted cash at end of period
$
75,750
$
169,200
$
75,750
$
169,200
CUTERA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(in thousands, except percentage data)
(unaudited)
Three Months Ended
% Change
Six Months Ended
% Change
June 30, 2022
June 30, 2021
2022 Vs
2021
June 30, 2022
June 30, 2021
2022 Vs
2021
Revenue By Geography:
North America
$
32,239
$
26,786
+20.4
%
$
61,092
$
49,084
+24.5
%
Japan
15,174
17,421
(12.9)
%
32,677
33,976
(3.8)
%
Rest of World
16,811
14,382
+16.9
%
28,469
25,197
+13.0
%
Total Net Revenue
$
64,224
$
58,589
+9.6
%
$
122,238
$
108,257
+12.9
%
Rest of World (including Japan) as a percentage of total revenue
49.8
%
54.3
%
50.0
%
54.7
%
Revenue By Product Category:
Systems
-North America
$
25,232
$
19,888
+26.9
%
$
47,939
$
36,673
+30.7
%
-Rest of World (including Japan)
18,421
15,680
+17.5
%
32,228
27,215
+18.4
%
Total Systems
43,653
35,568
+22.7
%
80,167
63,888
+25.5
%
Consumables
5,298
4,432
+19.5
%
9,201
7,357
+25.1
%
Skincare
9,638
11,812
(18.4)
%
21,287
24,118
(11.7)
%
Total Products
58,589
51,812
+13.1
%
110,655
95,363
+16.0
%
Service
5,635
6,777
(16.9)
%
11,583
12,894
(10.2)
%
Total Net Revenue
$
64,224
$
58,589
+9.6
%
$
122,238
$
108,257
+12.9
%
Three Months Ended
Six Months Ended
June 30, 2022
June 30, 2021
June 30, 2022
June 30, 2021
Pre-tax Stock-Based Compensation Expense:
Cost of revenue
$
500
$
434
$
959
$
578
Sales and marketing
1,638
522
2,214
1,243
Research and development
1,067
307
2,047
608
General and administrative
1,528
1,656
3,556
2,336
$
4,733
$
2,919
$
8,776
$
4,765
CUTERA, INC.
RECONCILIATION OF GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
TO NON-GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Three Months Ended June 30, 2022
GAAP
Depreciation
and
Amortization
Stock-Based
Compensation
ERP Implementation
Legal - Lutronic
Loss on Extinguishment of Convertible Notes
Non-GAAP
Net revenue
$
64,224
-
-
-
-
-
$
64,224
Cost of revenue
29,180
(161)
(500)
-
-
-
28,519
Gross profit
35,044
161
500
-
-
-
35,705
Gross margin %
54.6
%
55.6
%
Operating expenses:
Sales and marketing
27,001
(793)
(1,638)
-
-
-
24,570
Research and development
6,859
(68)
(1,067)
-
-
-
5,724
General and administrative
11,248
(46)
(1,528)
(2,385)
(242)
-
7,047
Total operating expenses
45,108
(907)
(4,233)
(2,385)
(242)
-
37,341
(Loss) income from operations
(10,064)
1,068
-
2,385
242
-
(1,636)
Interest and other expense, net
Amortization of debt issuance costs
(298)
-
-
-
-
-
(298)
Interest on convertible notes
(1,149)
-
-
-
-
-
(1,149)
Loss on extinguishment of convertible notes
(34,423)
-
-
-
-
34,423
-
Other expense
(1,528)
-
-
-
-
-
(1,528)
Total interest and other expense, net
(37,398)
-
-
-
-
34,423
(2,975)
(Loss) income before income taxes
(47,462)
1,068
4,733
2,385
242
34,423
(4,611)
Provision for income taxes
(186)
-
-
-
-
-
(186)
Net (loss) income
$
(47,276)
$
1,068
$
4,733
$
2,385
$
242
$
34,423
$
(4,425)
Net (loss) income per share:
Basic
$
(2.53)
$
(0.24)
Weighted-average number of shares used in per share calculations:
Basic
18,700
18,700
Operating expenses as a % of net revenue
GAAP
Non-GAAP
Sales and marketing
42.0
%
38.3
%
Research and development
10.7
%
8.9
%
General and administrative
17.5
%
11.0
%
70.2
%
58.2
%
CUTERA, INC.
RECONCILIATION OF GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
TO NON-GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Three Months Ended June 30, 2021
GAAP
Depreciation
and
Amortization
Stock-Based
Compensation
CRM and ERP Implementation
Severance (RIF)
Legal - Lutronic
Other Adjustments
Non-GAAP
Net revenue
$
58,589
-
-
-
-
-
-
$
58,589
Cost of revenue
24,800
(138)
(434)
-
-
-
346
24,574
Gross profit
33,789
138
434
-
-
-
(346)
34,015
Gross margin %
57.7
%
58.1
%
Operating expenses:
Sales and marketing
18,410
(600)
(522)
-
(638)
-
-
16,650
Research and development
4,850
(45)
(307)
-
-
-
-
4,498
General and administrative
8,461
(21)
(1,656)
(407)
-
(290)
-
6,087
Total operating expenses
31,721
(666)
(2,485)
(407)
(638)
(290)
-
27,235
(Loss) income from operations
2,068
804
2,919
407
638
290
(346)
6,780
Interest and other expense, net
Amortization of debt issuance costs
(215)
-
-
-
-
-
-
(215)
Interest on Convertible notes
(778)
-
-
-
-
-
-
(778)
Gain on extinguishment of PPP loan
7,185
-
-
-
-
-
(7,185)
-
Other expense
(392)
-
-
-
-
-
-
(392)
Total interest and other expense, net
5,800
-
-
-
-
(7,185)
(1,385)
(Loss) income before income taxes
7,868
804
2,919
407
638
290
(7,531)
5,395
Provision for income taxes
122
-
-
-
-
-
-
122
Net (loss) income
$
7,746
$
804
$
2,919
$
407
$
638
$
290
$
(7,531)
$
5,273
Net (loss) income per share:
Basic
$
0.43
$
0.30
Weighted-average number of shares used in per share calculations:
Basic
17,862
17,862
Operating expenses as a % of net revenue
GAAP
Non-GAAP
Sales and marketing
31.4
%
28.4
%
Research and development
8.3
%
7.7
%
General and administrative
14.4
%
10.4
%
54.1
%
46.5
%
CUTERA, INC.
RECONCILIATION OF GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
TO NON-GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Six Months Ended June 30, 2022
GAAP
Depreciation
and
Amortization
Stock-Based
Compensation
ERP Implementation
Legal - Lutronic
Loss on Extinguishment of Convertible Notes
Non-GAAP
Net revenue
$
122,238
-
-
-
-
-
$
122,238
Cost of revenue
55,406
(237)
(959)
-
-
-
54,210
Gross profit
66,832
237
959
-
-
-
68,028
Gross margin %
54.7
%
55.7
%
Operating expenses:
Sales and marketing
51,945
(1,613)
(2,214)
-
-
-
48,118
Research and development
13,358
(113)
(2,047)
-
-
-
11,198
General and administrative
24,750
(184)
(3,556)
(6,361)
(496)
-
14,153
Total operating expenses
90,053
(1,910)
(7,817)
(6,361)
(496)
-
73,469
(Loss) income from operations
(23,221)
2,147
8,776
6,361
496
-
(5,441)
Interest and other expense, net
Amortization of debt issuance costs
(517)
-
-
-
-
-
(517)
Interest on Convertible notes
(1,927)
-
-
-
-
-
(1,927)
Loss on extinguishment of convertible notes
(34,423)
-
-
-
-
-
34,423
-
Other expense
(2,283)
-
-
-
-
-
(2,283)
Total interest and other expense, net
(39,150)
-
-
-
-
34,423
(4,727)
(Loss) income before income taxes
(62,371)
2,147
8,776
6,361
496
34,423
(10,168)
Provision for income taxes
47
-
-
-
-
-
47
Net (loss) income
$(62,418)
$2,147
$8,776
$6,361
$496
$34,423
$(10,215)
Net (loss) income per share:
Basic
$(3.39)
$(0.56)
Weighted-average number of shares used in per share calculations:
Basic
18,392
18,392
Operating expenses as a % of net revenue
GAAP
Non-GAAP
Sales and marketing
42.5
%
39.4
%
Research and development
10.9
%
9.2
%
General and administrative
20.2
%
11.6
%
73.6
%
60.2
%
CUTERA, INC.
RECONCILIATION OF GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
TO NON-GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Six Months Ended June 30, 2021
GAAP
Depreciation
and
Amortization
Stock-Based
Compensation
CRM and ERP
Implementation
Severance (RIF)
Legal - Lutronic
Other Adjustments
Non-GAAP
Net revenue
$
108,257
-
-
-
-
-
-
$
108,257
Cost of revenue
46,758
(300)
(578)
-
-
-
346
46,226
Gross profit
61,499
300
578
-
-
-
(346)
62,031
Gross margin %
56.8
%
57.3
%
Operating expenses:
Sales and marketing
33,478
(1,278)
(1,243)
(182)
(638)
-
-
30,137
Research and development
8,962
(84)
(608)
-
-
-
-
8,270
General and administrative
15,826
(48)
(2,336)
(477)
-
(691)
-
12,274
Total operating expenses
58,266
(1,410)
(4,187)
(659)
(638)
(691)
-
50,681
(Loss) income from operations
3,233
1,710
4,765
659
638
691
(346)
11,350
Interest and other expense, net
Amortization of debt issuance costs
(267)
-
-
-
-
-
-
(267)
Interest on Convertible notes
(969)
-
-
-
-
-
-
(969)
Gain on extinguishment of PPP loan
7,185
-
-
-
-
-
(7,185)
-
Other expense
(1,415)
-
-
-
-
-
-
(1,415)
Total interest and other expense, net
4,534
-
-
-
-
-
(7,185)
(2,651)
(Loss) income before income taxes
7,767
1,710
4,765
659
638
691
(7,531)
8,699
Provision for income taxes
380
-
-
-
-
-
-
380
Net (loss) income
$
7,387
$
1,710
$
4,765
$
659
$
638
$
691
$
(7,531)
$
8,319
Net (loss) income per share:
Basic
$
0.41
$
0.47
Weighted-average number of shares used in per share calculations:
17,815
17,815
Operating expenses as a % of net revenue
GAAP
Non-GAAP
Sales and marketing
30.9
%
27.8
%
Research and development
8.3
%
7.6
%
General and administrative
14.6
%
11.3
%
53.8
%
46.8
%
CUTERA, INC.
RECONCILIATION OF LOSS TO ADJUSTED EBITDA
(in thousands)
(unaudited)
Three Months Ended
Six Months Ended
June 30, 2022
Net Income
$
(47,276)
$
(62,418)
Adjustments:
Stock-based compensation
4,733
8,776
ERP implementation cost
2,385
6,361
Interest and other expense, net
37,398
39,150
Depreciation and amortization
1,068
2,147
Legal -Lutronic
242
496
Income tax (benefit) expense
(186)
47
Total adjustments
45,640
56,977
Adjusted EBITDA
$
(1,636)
$
(5,441)
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Cutera Inc. published this content on 05 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 August 2022 15:55:04 UTC.
Cutera, Inc. is a provider of aesthetic and dermatology solutions for practitioners. The Company develops, manufactures, distributes, and markets energy-based product platforms for use by physicians and other practitioners, enabling them to offer aesthetic treatments to their customers. The Company offers easy-to-use products based on the product platforms, such as enlighten, enlighten SR, excel HR, excel V, excel V+, truSculpt iD, truSculpt flex, Secret PRO, Secret RF, and xeo, each of which enables physicians and other practitioners to perform aesthetic procedures, including treatment for body contouring, skin resurfacing and revitalization, tattoo removal, removal of benign pigmented lesions, vascular conditions, hair removal, and toenail fungus. Its platforms allow for the delivery of laser light and/or RF energy for aesthetic applications from a single system. It also offers products, such as ProWave 770, AcuTip 500, Titan XL, LimeLight, Pearl, Pearl Fractional and ProWave LX.