Biote Reports Fourth Quarter and Full Year 2023 Financial Results
- Revenue increased to $185.4 million in 2023, a 12.4% rise from the previous year.
- Procedure revenue was up by 9.3% to $141.0 million in 2023.
- Gross profit margin improved to 68.8% in 2023.
- Net loss in 2023 was $(2.8) million, with a net loss margin of (1.5)%, compared to a net income of $1.3 million in 2022.
- Adjusted EBITDA for 2023 was $55.3 million, with an EBITDA margin of 29.8%.
- 2024 financial guidance includes revenue of $200-$204 million and adjusted EBITDA of $60-$63 million.
- Biote repurchased 18.4M founders' shares and initiated a $20M share repurchase program.
- The company launched BioteRx products in 2023 and expanded its practitioner network to over 7,100.
- Operating income for 2023 was $28.7 million, compared to an operating loss of $(60.7) million in 2022.
- Adjusted EBITDA margin for 2023 was 29.8%, compared to 30.4% in 2022.
- None.
Insights
The reported revenue growth of 12.4% in 2023, compared to the previous year, indicates a positive trend in Biote's financial performance. The increase in procedure revenue and dietary supplements revenue signifies a robust demand for the company's services. However, the net loss of $(2.8) million for the year, despite an increase in gross profit margin, raises concerns about the company's cost management and operational efficiency.
Investors should note the gross profit margin improvement, which suggests effective cost control in the production and service delivery process. Nevertheless, the reported net loss margin of (1.5)% could impact investor confidence and may require a deeper analysis of the operational costs and one-time expenses that contributed to the loss.
The share repurchase program and the agreement to repurchase founders' shares at an average price of $4.17 per share are strategic moves that could potentially enhance shareholder value by reducing the number of outstanding shares and potentially increasing earnings per share. This repurchase strategy is frequently used to signal confidence in the company's future prospects and to return value to shareholders.
Biote's expansion of its practitioner network and the launch of BioteRx hormone and therapeutic wellness products align with the growing consumer focus on health and wellness. The positive initial feedback from providers for the new product offerings indicates potential market acceptance and could contribute to future revenue growth.
The company's reaffirmation of its 2024 financial guidance, with anticipated acceleration in the second half of the year, reflects management's confidence in their strategy and market position. However, the anticipated low-single-digit revenue growth in the first half of 2024 suggests a cautious outlook that investors should monitor, as it may be indicative of underlying challenges in the market or operational execution.
Biote's strategy to address the underserved market for hormone optimization and its anticipated second-half margin contribution from the acquisition of Asteria Health suggest a long-term growth trajectory. The company's focus on expanding its evidence-based product offerings is likely to resonate well with the current market trends toward personalized and preventive healthcare solutions.
The settlement with the company's founder, Dr. Gary S. Donovitz, to resolve litigation is a significant development that could reduce legal uncertainties and future expenses related to the dispute. Resolving protracted legal battles is often viewed positively by investors, as it allows management to refocus on core business activities without the distraction and financial drain of ongoing litigation.
However, it is important to consider the financial implications of the share repurchase agreement as part of the settlement. The repurchase will have an immediate cash outflow impact and the effectiveness of this action in enhancing shareholder value will depend on the company's future performance and stock price stability.
Grew practitioner network to over 7,100 from 6,400 in 2022
Launched BioteRx, our new hormone and therapeutic wellness offerings
Enhancing shareholder value with agreement to repurchase 18.4M founders’ shares in addition to a separate
Reaffirms 2024 financial guidance, with an acceleration in second half growth
Fourth Quarter 2023 Financial Highlights
(All financial result comparisons made are against the prior-year period)
-
Revenue of
$45.7 million 2.7% increase and in line with pre-released financial guidance -
Procedure revenue of
$34.9 million 6.6% -
Gross profit margin of
69.4% , a more than 400-basis point increase -
Net income of
$12.1 million 26.4% , and diluted earnings per share attributable to biote Corp. stockholders of$0.18 $12.8 million 28.8% , and diluted earnings per share attributable to biote Corp. stockholders of$0.18 -
Adjusted EBITDA1 of
$13.6 million 3.5% increase and in line with pre-released financial guidance -
Adjusted EBITDA margin1 of
29.7%
Full Year 2023 Financial Highlights
(All financial result comparisons made are against the prior year)
-
Revenue of
$185.4 million 12.4% increase -
Procedure revenue of
$141.0 million 9.3% -
Gross profit margin of
68.8% , an approximately 190-basis point increase -
Net loss of
$(2.8) million $0.13 $1.3 million 0.8% , and diluted loss per share attributable to biote Corp. shareholders of$(0.12) -
Adjusted EBITDA1 of
$55.3 million 10.2% increase -
Adjusted EBITDA margin1 of
29.8%
“Fourth quarter procedure revenue increased approximately
“This past month, we were pleased to reach a settlement with Dr. Gary S. Donovitz, Biote’s founder, to resolve protracted and costly litigation. Under the terms of the agreement, Biote will repurchase all of his outstanding shares and paired interests over three years at an average price of
Ms. Weber continued, “As consumers prioritize their health and well-being, we continue to effectively address the large and underserved market for hormone optimization. In February, we began the phased launch of our new BioteRx hormone and therapeutic wellness products in the areas of body composition, sexual health and preventive wellness. Initial provider feedback has been positive, strengthening our conviction in the growth opportunity in front of us. We remain focused on accelerating the number of Biote-certified practitioners and further expanding our evidence-based product offerings to promote positive health outcomes for our patients.”
2023 Fourth Quarter Financial Review
(All financial result comparisons made are against the prior-year period unless otherwise noted)
Revenue for the fourth quarter of 2023 was
Gross profit margin for the fourth quarter of 2023 was
Operating income for the fourth quarter of 2023 was
Net income for the fourth quarter of 2023 was
Adjusted EBITDA for the fourth quarter of 2023 was
2023 Full Year Financial Review
(All financial result comparisons made are against the prior year unless otherwise noted)
Revenue for 2023 was
Gross profit margin for 2023 was
Operating income for 2023 was
Net loss for 2023 was
Adjusted EBITDA for 2023 was
2024 Financial Outlook
“As we continue to execute on our strategy, we are forecasting solid financial performance in 2024, with an expectation for stronger revenue growth in the back half of the year,” concluded Ms. Weber.
($ in millions) |
2024 Guidance Ranges |
Revenue |
|
Adjusted EBITDA2 |
|
The Company’s 2024 financial guidance includes: (i) procedure revenue growth in the first half of 2024 similar to that of the second half of 2023 with improved growth in the back half of 2024; (ii) a return to nutraceutical revenue growth in the second half of 2024; (iii) expected modest contributions from new therapeutic wellness products; and (iv) a second-half margin contribution from the anticipated impact of the acquisition of Asteria Health.
First half 2024 consolidated year-on-year revenue growth is expected to be in the low-single digits, with significant improvement expected in the second half of 2024. Total revenue growth in the first half of 2024 is expected to be impacted by the transition in the nutraceutical distribution channel and timing of seasonal promotions.
Conference Call:
Biote management will host a conference call to review these results and provide a business update beginning at 5:00 p.m. ET on Tuesday, March 12, 2024. To access the conference call by telephone, please dial (844) 481-2820 (
Discussion of Non-GAAP Financial Measures
To provide investors with additional information regarding our financial results, Biote has disclosed Adjusted EBITDA, a non-GAAP financial measure that it calculates as net income before interest, taxes and depreciation and amortization, further adjusted to exclude stock-based compensation, litigation expenses, legal settlements, transaction-related expenses, merger and acquisition expenses, fair value adjustments to certain equity instruments classified as liabilities and other expenses. Below we have provided a reconciliation of Adjusted EBITDA to net income, the most directly comparable GAAP financial measure.
We present Adjusted EBITDA and Adjusted EBITDA margin because it is a key measure used by our management to evaluate our operating performance, generate future operating plans and determine payments under compensation programs. Accordingly, we believe that Adjusted EBITDA and Adjusted EBITDA margin provide useful information to investors and others in understanding and evaluating our operating results in the same manner as our management.
Adjusted EBITDA and Adjusted EBITDA margin have limitations as analytical tools, and you should not consider them in isolation or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are as follows:
- Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and Adjusted EBITDA and Adjusted EBITDA margin do not reflect cash capital expenditure requirements for such replacements of our assets;
- Adjusted EBITDA and Adjusted EBITDA margin do not reflect changes in, or cash requirements for, our working capital needs; and
- Adjusted EBITDA and Adjusted EBITDA margin do not reflect tax payments that may represent a reduction in cash available to us.
In addition, Adjusted EBITDA and Adjusted EBITDA margin are subject to inherent limitations as it reflects the exercise of judgment by Biote’s management about which expenses are excluded or included. A reconciliation is provided in the financial statement tables included below in this press release for each non-GAAP financial measure to the most directly comparable financial measure stated in accordance with GAAP. Because of these limitations, you should consider Adjusted EBITDA and Adjusted EBITDA margin alongside other financial performance measures, including net income and our other GAAP results.
Forward-Looking Non-GAAP Financial Measures
The Company does not provide a reconciliation of forward-looking non-GAAP financial measures to their comparable GAAP financial measures because it could not do so without unreasonable effort due to the unavailability of certain information needed to calculate reconciling items. For example, the Company has not included a reconciliation of projected Adjusted EBITDA to GAAP net income (loss), which is the most directly comparable GAAP measure, for the periods presented in reliance on the unreasonable efforts exception provided under Item 10(e)(1)(i)(B) of Regulation S-K. The Company’s projected Adjusted EBITDA excludes certain items that are inherently uncertain and difficult to predict including, but not limited to, share-based compensation expense, income taxes, due diligence expenses and legal expenses. Due to the variability, complexity and limited visibility of the adjusting items that would be excluded from projected Adjusted EBITDA in future periods, management does not forecast them for internal use and therefore cannot create a quantitative projected Adjusted EBITDA to GAAP net income (loss) reconciliation for the periods presented without unreasonable efforts. A quantitative reconciliation of projected Adjusted EBITDA to GAAP net income (loss) for the periods presented would imply a degree of precision and certainty as to these future items that does not exist and could be confusing to investors. From a qualitative perspective, it is anticipated that the differences between projected Adjusted EBITDA to GAAP net income (loss) for the periods presented will consist of items similar to those described in the financial tables later in this release, including, for example and without limitation, share-based compensation expense, income taxes, due diligence expenses and legal expenses. The timing and amount of any of these excluded items could significantly impact the Company’s GAAP net income (loss) for a particular period. When planning, forecasting and analyzing future periods, the Company does so primarily on a non-GAAP basis without preparing a GAAP analysis.
About Biote
Biote is transforming healthy aging through innovative, personalized hormone optimization and therapeutic wellness solutions delivered by Biote-certified medical providers. Biote trains practitioners to identify and treat early indicators of aging conditions, an underserved global market, providing affordable symptom relief for patients and driving clinic success for practitioners.
Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Some of the forward-looking statements can be identified by the use of forward-looking words. Statements that are not historical in nature, including the words “may,” “can,” “should,” “will,” “estimate,” “plan,” “project,” “forecast,” “intend,” “expect,” “hope,” “anticipate,” “believe,” “seek,” “target,” “continue,” “could,” “might,” “ongoing,” “potential,” “predict,” “would” and other similar expressions, are intended to identify forward-looking statements. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual results or developments to differ materially from those expressed or implied by such forward-looking statements, including but not limited to: the potential that our acquisition of Asteria Health is not consummated; the success of our dietary supplements to attain significant market acceptance among clinics, practitioners and their patients; our customers’ reliance on certain third parties to support the manufacturing of bio-identical hormones for prescribers; our and our customers’ sensitivity to regulatory, economic, environmental and competitive conditions in certain geographic regions; our ability to increase the use by practitioners and clinics of the Biote Method at the rate that we anticipate or at all; our ability to grow our business; the significant competition we face in our industry; the impact of strategic acquisitions and the implementation of our growth strategies; our limited operating history; our ability to protect our intellectual property; the heavy regulatory oversight in our industry; changes in applicable laws or regulations; the inability to profitably expand in existing markets and into new markets; the possibility that we may be adversely impacted by other economic, business and/or competitive factors, including recent bank failures; and future exchange and interest rates. The foregoing list of factors is not exhaustive. You should carefully consider the risks and uncertainties described in the “Risk Factors” section of the Biote’s Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2023 and other documents filed by Biote from time to time with the Securities and Exchange Commission. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Biote assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. Biote does not give any assurance that it will achieve its expectations.
_____________________________
1 Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures. Please see “Discussion of non-GAAP Financial Measures” for additional information on non-GAAP financial measures and a reconciliation to the most comparable GAAP measure.
2 Please see “Forward-Looking Non-GAAP Financial Measures" below for additional information about forward-looking Adjusted EBITDA.
Financial Tables
Biote Corp. Consolidated Balance Sheets (In Thousands) (Unaudited) |
||||||||
| December 31, | December 31, | |||||||
|
2023 |
|
|
2022 |
|
|||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ |
89,002 |
|
$ |
79,231 |
|
||
| Accounts receivable, net |
|
6,809 |
|
|
6,948 |
|
||
| Inventory, net |
|
17,307 |
|
|
11,183 |
|
||
| Other current assets |
|
9,225 |
|
|
3,816 |
|
||
| Total current assets |
|
122,343 |
|
|
101,178 |
|
||
| Property and equipment, net |
|
1,218 |
|
|
1,504 |
|
||
| Capitalized software, net |
|
4,973 |
|
|
5,073 |
|
||
| Operating lease right-of-use assets |
|
1,877 |
|
|
2,052 |
|
||
| Deferred tax asset |
|
24,884 |
|
|
1,838 |
|
||
| Total assets | $ |
155,295 |
|
$ |
111,645 |
|
||
| Liabilities and Stockholders’ Deficit | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ |
4,155 |
|
$ |
4,112 |
|
||
| Accrued expenses |
|
8,497 |
|
|
6,274 |
|
||
| Term loan, current |
|
6,250 |
|
|
6,250 |
|
||
| Deferred revenue, current |
|
3,002 |
|
|
1,965 |
|
||
| Operating lease liabilities, current |
|
311 |
|
|
165 |
|
||
| Total current liabilities |
|
22,215 |
|
|
18,766 |
|
||
| Term loan, net of current portion |
|
106,630 |
|
|
112,086 |
|
||
| Deferred revenue, net of current portion |
|
1,322 |
|
|
926 |
|
||
| Operating lease liabilities, net of current portion |
|
1,680 |
|
|
1,927 |
|
||
| TRA liability |
|
18,894 |
|
|
— |
|
||
| Warrant liability |
|
— |
|
|
4,104 |
|
||
| Earnout liability |
|
41,100 |
|
|
32,110 |
|
||
| Total liabilities |
|
191,841 |
|
|
169,919 |
|
||
| Commitments and contingencies | ||||||||
| Stockholders’ Deficit | ||||||||
| Preferred stock, |
|
— |
|
|
— |
|
||
| Class A common stock, |
|
3 |
|
|
1 |
|
||
| Class V voting stock, |
|
3 |
|
|
5 |
|
||
| Additional paid-in capital |
|
— |
|
|
— |
|
||
| Accumulated deficit |
|
(29,391 |
) |
|
(44,460 |
) |
||
| Accumulated other comprehensive loss |
|
(12 |
) |
|
(5 |
) |
||
| biote Corp.’s stockholders’ deficit |
|
(29,397 |
) |
|
(44,459 |
) |
||
| Noncontrolling interest |
|
(7,149 |
) |
|
(13,815 |
) |
||
| Total stockholders’ deficit |
|
(36,546 |
) |
|
(58,274 |
) |
||
| Total liabilities and stockholders’ deficit | $ |
155,295 |
|
$ |
111,645 |
|
||
Biote Corp. Consolidated Statements of Operations (In Thousands, except per share values) (Unaudited) |
||||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
||
| Revenue: | ||||||||||||||||
| Product revenue | $ |
44,935 |
|
$ |
44,012 |
|
$ |
182,573 |
|
$ |
163,133 |
|
||||
| Service revenue |
|
768 |
|
|
473 |
|
|
2,787 |
|
|
1,824 |
|
||||
| Total revenue |
|
45,703 |
|
|
44,485 |
|
|
185,360 |
|
|
164,957 |
|
||||
| Cost of revenue | ||||||||||||||||
| Cost of products |
|
13,157 |
|
|
14,599 |
|
|
54,246 |
|
|
51,990 |
|
||||
| Cost of services |
|
848 |
|
|
825 |
|
|
3,631 |
|
|
2,585 |
|
||||
| Cost of revenue |
|
14,005 |
|
|
15,424 |
|
|
57,877 |
|
|
54,575 |
|
||||
| Selling, general and administrative |
|
26,190 |
|
|
21,758 |
|
|
98,826 |
|
|
171,104 |
|
||||
| Income (loss) from operations |
|
5,508 |
|
|
7,303 |
|
|
28,657 |
|
|
(60,722 |
) |
||||
| Other income (expense), net: | ||||||||||||||||
| Interest expense, net |
|
(1,542 |
) |
|
(1,569 |
) |
|
(6,363 |
) |
|
(4,047 |
) |
||||
| Gain (loss) from change in fair value of warrant liability |
|
— |
|
|
575 |
|
|
(13,411 |
) |
|
5,127 |
|
||||
| Gain (loss) from change in fair value of earnout liability |
|
5,370 |
|
|
6,930 |
|
|
(8,990 |
) |
|
61,770 |
|
||||
| Loss from extinguishment of debt |
|
— |
|
|
— |
|
|
— |
|
|
(445 |
) |
||||
| Other income (expense) |
|
(2 |
) |
|
6 |
|
|
(16 |
) |
|
29 |
|
||||
| Total other income (expense), net |
|
3,826 |
|
|
5,942 |
|
|
(28,780 |
) |
|
62,434 |
|
||||
| Income (loss) before provision for income taxes |
|
9,334 |
|
|
13,245 |
|
|
(123 |
) |
|
1,712 |
|
||||
| Income tax (benefit) expense |
|
(2,744 |
) |
|
436 |
|
|
2,682 |
|
|
388 |
|
||||
| Net income (loss) |
|
12,078 |
|
|
12,809 |
|
|
(2,805 |
) |
|
1,324 |
|
||||
| Less: Net income (loss) attributable to noncontrolling interest |
|
4,344 |
|
|
11,187 |
|
|
(6,121 |
) |
|
2,293 |
|
||||
| Net income (loss) attributable to biote Corp. stockholders | $ |
7,734 |
|
$ |
1,622 |
|
$ |
3,316 |
|
$ |
(969 |
) |
||||
| Other comprehensive income (loss): | ||||||||||||||||
| Foreign currency translation adjustments |
|
— |
|
|
(1 |
) |
|
8 |
|
|
(1 |
) |
||||
| Other comprehensive income (loss) |
|
— |
|
|
(1 |
) |
|
8 |
|
|
(1 |
) |
||||
| Comprehensive income (loss) | $ |
12,078 |
|
$ |
12,808 |
|
$ |
(2,797 |
) |
$ |
1,323 |
|
||||
| Net income (loss) per common share | ||||||||||||||||
| Basic | $ |
0.23 |
|
$ |
0.19 |
|
$ |
0.13 |
|
$ |
(0.12 |
) |
||||
| Diluted | $ |
0.18 |
|
$ |
0.18 |
|
$ |
0.13 |
|
$ |
(0.12 |
) |
||||
| Weighted average common shares outstanding | ||||||||||||||||
| Basic |
|
33,982,258 |
|
|
8,703,533 |
|
|
25,709,343 |
|
|
8,059,371 |
|
||||
| Diluted |
|
63,352,513 |
|
|
58,750,051 |
|
|
25,709,343 |
|
|
8,059,371 |
|
||||
Biote Corp. Consolidated Statements of Cash Flows (In Thousands) (Unaudited) |
||||||||
| Year Ended December 31, | ||||||||
|
2023 |
|
|
2022 |
|
|||
| Operating Activities | ||||||||
| Net income (loss) | $ |
(2,805 |
) |
$ |
1,324 |
|
||
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||||||
| Depreciation and amortization |
|
2,994 |
|
|
2,199 |
|
||
| Bad debt expense (recoveries) |
|
663 |
|
|
(155 |
) |
||
| Amortization of debt issuance costs |
|
794 |
|
|
589 |
|
||
| Write-off of capitalized software |
|
313 |
|
|
— |
|
||
| (Benefit from) provision for obsolete inventory |
|
(26 |
) |
|
140 |
|
||
| Non-cash lease expense |
|
499 |
|
|
240 |
|
||
| Shares issued in settlement of litigation |
|
1,199 |
|
|
— |
|
||
| Non-cash sponsor share transfers |
|
— |
|
|
7,216 |
|
||
| Non-cash fees under SEPA |
|
— |
|
|
119 |
|
||
| Share-based compensation expense |
|
9,057 |
|
|
82,180 |
|
||
| (Gain) loss from change in fair value of warrant liability |
|
13,411 |
|
|
(5,127 |
) |
||
| (Gain) loss from change in fair value of earnout liability |
|
8,990 |
|
|
(61,770 |
) |
||
| Loss from extinguishment of debt |
|
— |
|
|
445 |
|
||
| Deferred income taxes |
|
721 |
|
|
(743 |
) |
||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable |
|
(505 |
) |
|
(1,562 |
) |
||
| Inventory |
|
(6,098 |
) |
|
(1,708 |
) |
||
| Other current assets |
|
(5,418 |
) |
|
(2,284 |
) |
||
| Accounts payable |
|
(165 |
) |
|
416 |
|
||
| Deferred revenue |
|
1,433 |
|
|
384 |
|
||
| Accrued expenses |
|
2,223 |
|
|
(30,841 |
) |
||
| Operating lease liabilities |
|
(397 |
) |
|
(219 |
) |
||
| Net cash provided by (used in) operating activities |
|
26,883 |
|
|
(9,157 |
) |
||
| Investing Activities | ||||||||
| Purchases of property and equipment |
|
(359 |
) |
|
(333 |
) |
||
| Purchases of capitalized software |
|
(2,354 |
) |
|
(1,505 |
) |
||
| Net cash used in investing activities |
|
(2,713 |
) |
|
(1,838 |
) |
||
| Financing Activities | ||||||||
| Proceeds from the business combination |
|
— |
|
|
12,282 |
|
||
| Principal repayments on term loan |
|
(6,250 |
) |
|
(4,375 |
) |
||
| Borrowings on term loan |
|
— |
|
|
125,000 |
|
||
| Extinguishment of Bank of America term loan |
|
— |
|
|
(36,250 |
) |
||
| Debt issuance costs |
|
— |
|
|
(4,036 |
) |
||
| Settlement of phantom equity rights |
|
— |
|
|
(7,250 |
) |
||
| Settlement of RSUs |
|
— |
|
|
(424 |
) |
||
| Proceeds from exercise of stock options |
|
420 |
|
|
— |
|
||
| Issuance of stock under purchase plan |
|
144 |
|
|
— |
|
||
| Distributions |
|
(8,694 |
) |
|
(12,886 |
) |
||
| Capitalized transaction costs |
|
— |
|
|
(8,341 |
) |
||
| Proceeds from issuance of shares under SEPA |
|
— |
|
|
442 |
|
||
| SEPA transaction costs |
|
— |
|
|
(702 |
) |
||
| Net cash provided by (used in) financing activities |
|
(14,380 |
) |
|
63,460 |
|
||
| Effect of exchange rate changes on cash and cash equivalents |
|
(19 |
) |
|
— |
|
||
| Net increase in cash and cash equivalents |
|
9,771 |
|
|
52,465 |
|
||
| Cash and cash equivalents at beginning of period |
|
79,231 |
|
|
26,766 |
|
||
| Cash and cash equivalents at end of period | $ |
89,002 |
|
$ |
79,231 |
|
||
| Supplemental Disclosure of Cash Flow Information | ||||||||
| Cash paid for interest | $ |
9,476 |
|
$ |
4,426 |
|
||
| Cash paid for income taxes | $ |
4,426 |
|
$ |
282 |
|
||
| Non-cash investing and financing activities | ||||||||
| Capital expenditures and capitalized software included in accounts payable | $ |
208 |
|
$ |
49 |
|
||
| Non-cash SEPA transaction costs | $ |
— |
|
$ |
119 |
|
||
Biote Corp. Reconciliation of Adjusted EBITDA to Net (Loss) Income (In Thousands) (Unaudited) |
||||||||||||||||
The following table presents a reconciliation of net income to Adjusted EBITDA, as well as the calculation of net income (loss) margin and Adjusted EBITDA margin, for each of the periods indicated. |
||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| (in thousands) |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
| Net income (loss) | $ |
12,078 |
|
$ |
12,809 |
|
$ |
(2,805 |
) |
$ |
1,324 |
|
||||
| Interest expense, net |
|
1,542 |
|
|
1,569 |
|
|
6,363 |
|
|
4,047 |
|
||||
| Income tax (benefit) expense |
|
(2,744 |
) |
|
436 |
|
|
2,682 |
|
|
388 |
|
||||
| Depreciation and amortization |
|
1,510 |
|
|
555 |
|
|
2,994 |
|
|
2,199 |
|
||||
| Loss from extinguishment of debt(1) |
|
— |
|
|
— |
|
|
— |
|
|
445 |
|
||||
| Share-based compensation expense(2) |
|
1,997 |
|
|
2,164 |
|
` |
|
9,057 |
|
|
82,180 |
|
|||
| Litigation expenses-former owner(3) |
|
1,963 |
|
|
1,819 |
|
|
6,770 |
|
|
3,603 |
|
||||
| Litigation-other(4) |
|
153 |
|
|
— |
|
|
633 |
|
|
477 |
|
||||
| Legal settlement (gain) loss(5) |
|
(200 |
) |
|
— |
|
|
1,048 |
|
|
88 |
|
||||
| Transaction-related expenses(6) |
|
32 |
|
|
978 |
|
|
2,118 |
|
|
21,627 |
|
||||
| Other expenses(7) |
|
525 |
|
|
293 |
|
|
1,174 |
|
|
646 |
|
||||
| Merger and acquisition expenses(8) |
|
2,088 |
|
|
— |
|
|
2,821 |
|
|
— |
|
||||
| (Gain) loss from change in fair value of warrant liability |
|
— |
|
|
(575 |
) |
|
13,411 |
|
|
(5,127 |
) |
||||
| (Gain) loss from change in fair value of earnout liability |
|
(5,370 |
) |
|
(6,930 |
) |
|
8,990 |
|
|
(61,770 |
) |
||||
| Adjusted EBITDA | $ |
13,574 |
|
$ |
13,118 |
|
$ |
55,256 |
|
$ |
50,127 |
|
||||
| Total revenue | $ |
45,703 |
|
$ |
44,485 |
|
$ |
185,360 |
|
$ |
164,957 |
|
||||
| Net income (loss) margin(9) |
|
26.4 |
% |
|
28.8 |
% |
|
-1.5 |
% |
|
0.8 |
% |
||||
| Adjusted EBITDA margin(10) |
|
29.7 |
% |
|
29.5 |
% |
|
29.8 |
% |
|
30.4 |
% |
||||
(1) Represents unamortized debt issuance costs of
(2) Represents employee compensation expense associated with equity-based stock awards. This includes expense associated with equity incentive instruments including phantom stock awards, stock options and restricted stock units.
(3) Represents legal expenses to defend the Company against claims asserted by the Company’s former owner.
(4) Represents litigation expenses other than those incurred in connection with claims asserted by the Company’s former owner that are not related to the Company’s ongoing business.
(5) Represents settlements of legal matters.
(6) Represents transaction costs including professional services fees of
(7) Represents executive severance costs of
(8) Represents professional fees of
(9) Net income (loss) margin is defined as net income (loss) divided by total revenue.
(10) Adjusted EBITDA margin is defined as adjusted EBITDA divided by total revenue.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240312447911/en/
Investor Relations:
Eric Prouty
AdvisIRy Partners
eric.prouty@advisiry.com
Media:
Press@biote.com
Source: Biote
FAQ
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