BeautyHealth Reports Third Quarter 2023 Financial Results
- Net sales increased by 10% year-over-year, driven by double-digit growth in APAC and EMEA.
- The company is addressing provider experience challenges with earlier generation Syndeo devices, incurring restructuring charges of $63.1 million and revising its fiscal year 2023 net sales guidance to a range of $385 to $400 million.
- The company suspended its long-term 2025 financial outlook due to challenges in the U.S. market.
- Gross margin was adversely impacted by $63.1 million associated with the Syndeo Program and higher charges related to other discontinued, excess, and obsolete product costs.
- Net loss was $(73.8) million in Q3 2023 compared to net loss of $(0.1) million in Q3 2022, primarily due to costs associated with the Syndeo Program.
Revises financial guidance on lower-than-expected
Delivers net sales of
As a result, the Company is revising its fiscal year 2023 net sales guidance to a range of
“We are focused on protecting Hydrafacial’s strong brand equity as we address the Syndeo provider experience challenges,” said BeautyHealth Chief Financial Officer Michael Monahan. “We are confident that, with our strategy, we will return Hydrafacial to the reliable standard that our customers have come to expect from us and keep their trust—and, with this, re-accelerate Syndeo adoption in the U.S.”
Key Operational and Business Metrics
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
Unaudited ($ in millions) (2) |
|
2023 |
|
|
2022(1) |
|
|
2023 |
|
|
2022(1) |
||||
Delivery Systems net sales |
$ |
51.0 |
|
|
$ |
49.1 |
|
|
$ |
162.0 |
|
|
$ |
155.5 |
|
Consumables net sales |
|
46.4 |
|
|
|
39.7 |
|
|
|
139.2 |
|
|
|
112.2 |
|
Total net sales |
$ |
97.4 |
|
|
$ |
88.8 |
|
|
$ |
301.2 |
|
|
$ |
267.7 |
|
Gross (loss) profit |
$ |
(12.6 |
) |
|
$ |
61.4 |
|
|
$ |
109.4 |
|
|
$ |
182.3 |
|
Gross margin |
|
(12.9 |
)% |
|
|
69.1 |
% |
|
|
36.3 |
% |
|
|
68.1 |
% |
Adjusted gross profit(3) |
$ |
60.9 |
|
|
$ |
66.4 |
|
|
$ |
197.0 |
|
|
$ |
193.4 |
|
Adjusted gross margin(3) |
|
62.5 |
% |
|
|
74.8 |
% |
|
|
65.4 |
% |
|
|
72.2 |
% |
Net (loss) income |
$ |
(73.8 |
) |
|
$ |
(0.1 |
) |
|
$ |
(90.7 |
) |
|
$ |
37.7 |
|
Adjusted EBITDA(3) |
$ |
9.1 |
|
|
$ |
16.3 |
|
|
$ |
21.0 |
|
|
$ |
28.5 |
|
Adjusted EBITDA margin(3) |
|
9.3 |
% |
|
|
18.4 |
% |
|
|
7.0 |
% |
|
|
10.7 |
% |
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||
Unaudited |
2023 |
|
2022 |
|
2023 |
|
2022 |
New delivery systems sold |
1,778 |
|
1,713 |
|
5,803 |
|
4,817 |
Trade-up delivery systems sold |
362 |
|
147 |
|
933 |
|
1,608 |
Total delivery systems sold |
2,140 |
|
1,860 |
|
6,736 |
|
6,425 |
Active install base |
30,074 |
|
24,473 |
|
30,074 |
|
24,473 |
___________________
(1) Reflects the impact of immaterial revisions to the financial statements.
(2) Amounts may not sum due to rounding.
(3) See "Non-GAAP Financial Measures" below.
Syndeo Program
- To stand behind its commitment to its customers and protect brand reputation, Management decided that, with respect to Syndeo devices, the Company will only market and sell Syndeo 3.0 devices due to provider experience issues with earlier generation Syndeo devices.
- The Company will provide, at no cost to the customer, the option of (i) a technician upgrade to their Syndeo 1.0 or 2.0 devices to 3.0 standards in the field; or (ii) a replacement Syndeo 3.0 device for their existing device.
- The Company will also extend all Syndeo warranties by one year, as a thank you to providers.
-
The Company has designated all Syndeo 1.0 and 2.0 devices on-hand as obsolete, resulting in an inventory write-down in cost of sales of
$18.8 million -
The Company incurred costs of
$12.3 million $32.1 million
Financial Highlights
-
Net sales were
$97.4 million 10% compared to the prior year period, with strength in APAC and EMEA offset by challenges in theU.S. -
Gross margin was (12.9)% in Q3 2023 compared to
69.1% in Q3 2022. Gross margin was adversely impacted by$63.1 million -
Adjusted gross margin was
62.5% in Q3 2023 compared to74.8% in Q3 2022. Adjusted gross margin was adversely impacted by higher manufacturing labor and overhead costs. -
Net loss was
$(73.8) million $(0.1) million -
Adjusted EBITDA was
$9.1 million $16.3 million - The Company placed 2,140 delivery systems during the quarter compared to 1,860 in the prior year period. The increase in delivery system placements was primarily due to strength in placements across APAC and EMEA.
Net Sales by Region
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||
Unaudited ($ in millions) (1) |
2023 |
|
2022 |
|
2023 |
|
2022 |
||||
Delivery Systems net sales |
|
|
|
|
|
|
|
||||
|
$ |
20.3 |
|
$ |
30.8 |
|
$ |
73.1 |
|
$ |
102.0 |
|
|
18.0 |
|
|
8.9 |
|
|
46.4 |
|
|
23.6 |
|
|
12.7 |
|
|
9.4 |
|
|
42.4 |
|
|
29.9 |
Total Delivery Systems net sales |
$ |
51.0 |
|
$ |
49.1 |
|
$ |
162.0 |
|
$ |
155.5 |
|
|
|
|
|
|
|
|
||||
Consumables net sales |
|
|
|
|
|
|
|
||||
|
$ |
31.4 |
|
$ |
27.6 |
|
$ |
95.2 |
|
$ |
76.3 |
APAC |
|
6.7 |
|
|
6.2 |
|
|
17.1 |
|
|
14.8 |
EMEA |
|
8.3 |
|
|
5.9 |
|
|
26.9 |
|
|
21.1 |
Total Consumables net sales |
$ |
46.4 |
|
$ |
39.7 |
|
$ |
139.2 |
|
$ |
112.2 |
|
|
|
|
|
|
|
|
||||
Total net sales |
|
|
|
|
|
|
|
||||
|
$ |
51.7 |
|
$ |
58.4 |
|
$ |
168.3 |
|
$ |
178.3 |
APAC |
|
24.7 |
|
|
15.1 |
|
|
63.5 |
|
|
38.4 |
EMEA |
|
21.1 |
|
|
15.3 |
|
|
69.3 |
|
|
51.0 |
Total net sales |
$ |
97.4 |
|
$ |
88.8 |
|
$ |
301.2 |
|
$ |
267.7 |
|
|
|
|
|
|
|
|
||||
Total delivery systems sold |
|
|
|
|
|
|
|
||||
|
|
776 |
|
|
1,065 |
|
|
2,844 |
|
|
4,069 |
APAC |
|
752 |
|
|
371 |
|
|
1,942 |
|
|
1,040 |
EMEA |
|
612 |
|
|
424 |
|
|
1,950 |
|
|
1,316 |
Total delivery systems sold |
|
2,140 |
|
|
1,860 |
|
|
6,736 |
|
|
6,425 |
|
|
|
|
|
|
|
|
||||
Trade-up delivery systems sold |
|
|
|
|
|
|
|
||||
|
|
77 |
|
|
147 |
|
|
267 |
|
|
1,608 |
APAC |
|
225 |
|
|
— |
|
|
412 |
|
|
— |
EMEA |
|
60 |
|
|
— |
|
|
254 |
|
|
— |
Total trade-up delivery systems sold |
|
362 |
|
|
147 |
|
|
933 |
|
|
1,608 |
___________________
(1) Amounts may not sum due to rounding.
-
Net sales in the
Americas region decreased (11)% to$51.7 million -
Net sales in the APAC region increased +
63% to$24.7 million China .China net sales increased +79% to$16.9 million -
Net sales in the EMEA region increased +
37% to$21.1 million
Operating Expenses
-
Selling and marketing expenses were
$30.7 million $39.8 million -
General and administrative expenses were
$37.0 million $23.8 million
Balance Sheet and Cash Flow Highlights
-
Cash and cash equivalents were approximately
$559.4 million $568.2 million -
The Company had approximately 7.0 million private placement warrants and approximately 132.6 million shares of Class A common stock outstanding as of September 30, 2023. In September 2023, the Company announced a
$100.0 million $4.8 million $5.83
Financial Guidance
Fiscal Year 2023 |
Current as of November 2023 |
Previous |
Net sales |
|
|
Adjusted EBITDA margin(1) |
|
|
___________________
(1) See "Non-GAAP Financial Measures" below.
-
The Company revised its fiscal year 2023 net sales guidance due to provider experience challenges with Syndeo creating lower than expected demand for delivery systems in the
U.S. - The Company revised its fiscal year 2023 adjusted EBITDA margin guidance as a result of slower than expected gross margin recovery and reduced fixed cost operating leverage.
- The Company suspended its long-term fiscal year 2025 outlook.
Financial guidance reflects the following external environment assumptions:
- Assumes no material deterioration in general market conditions or other unforeseen circumstances beyond the Company's control.
- Excludes any unannounced acquisitions, dispositions or financings.
- Assumes a largely re-opened global market, which would be negatively impacted if closures related to COVID-19 or other restrictive measures are reimplemented.
- Assumes no material deterioration in foreign currency exchange rates.
Conference Call
BeautyHealth will host a conference call on Monday, November 13, 2023, at 4:30 p.m. ET to review its third quarter 2023 financial results. The call may be accessed via live webcast through the Events & Presentations page on our Investor Relations website at https://investors.beautyhealth.com. A replay of the conference call will be available approximately three hours after the conclusion of the call and can be accessed online at https://investors.beautyhealth.com.
Non-GAAP Financial Measures
In addition to results determined in accordance with accounting principles generally accepted in
Management believes that these non-GAAP financial measures, when reviewed collectively with the Company’s GAAP financial information, provide useful supplemental information to investors in assessing the Company's operating performance. These non-GAAP financial measures should not be considered as an alternative to GAAP financial information or as an indication of operating performance or any other measure of performance derived in accordance with GAAP, and may not provide information that is directly comparable to that provided by other companies in its industry, as these other companies may calculate non-GAAP financial measures differently, particularly related to unusual items.
Adjusted gross profit is gross profit excluding the effects of depreciation expense, amortization expense, stock-based compensation expense and other items such as write-off of discontinued, excess and obsolete product, Syndeo Program and Syndeo product optimization logistics & service costs.
Adjusted EBITDA is calculated as net (loss) income excluding the effects of expense (benefit) for income taxes; depreciation expense; amortization expense; stock-based compensation expense; interest expense; interest income; other (income) expense, net; change in fair value of warrant liability; foreign currency loss (gain), net; loss on disposal of assets; transaction related costs; write-off of discontinued, excess and obsolete product; litigation related costs; Syndeo Program; Syndeo product optimization logistics & service costs; and severance, restructuring and other.
The Company does not provide a reconciliation of its fiscal 2023 adjusted EBITDA margin guidance to net (loss) income, the most directly comparable forward looking GAAP financial measures, due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation, which cannot be done without unreasonable efforts, including adjustments that could be made for changes in fair value of warrant liabilities, integration and acquisition-related expenses, amortization expenses, non-cash stock-based compensation, gains/losses on foreign currency, and other charges reflected in our reconciliation of historic numbers, the amount of which, based on historical experience, could be significant. The presentation of this financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. The Company's fiscal 2023 adjusted EBITDA margin guidance is merely an outlook and is not a guarantee of future performance. Stockholders should not rely or place an undue reliance on such forward-looking statements. See “Forward-Looking Statements” for additional information.
The Beauty Health Company
Condensed Consolidated Statements of Comprehensive Income (Loss) (1)
($ in millions, except share and per share amounts)
(Unaudited)
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
|
2023 |
|
|
2022(2) |
|
|
2023 |
|
|
2022(2) |
||||
Net sales |
$ |
97.4 |
|
|
$ |
88.8 |
|
|
$ |
301.2 |
|
|
$ |
267.7 |
|
Cost of sales |
|
110.0 |
|
|
|
27.4 |
|
|
|
191.7 |
|
|
|
85.5 |
|
Gross (loss) profit |
|
(12.6 |
) |
|
|
61.4 |
|
|
|
109.4 |
|
|
|
182.3 |
|
Operating expenses: |
|
|
|
|
|
|
|
||||||||
Selling and marketing |
|
30.7 |
|
|
|
39.8 |
|
|
|
112.5 |
|
|
|
121.1 |
|
Research and development |
|
1.8 |
|
|
|
2.2 |
|
|
|
7.1 |
|
|
|
7.0 |
|
General and administrative |
|
37.0 |
|
|
|
23.8 |
|
|
|
102.5 |
|
|
|
77.6 |
|
Total operating expenses |
|
69.5 |
|
|
|
65.7 |
|
|
|
222.0 |
|
|
|
205.7 |
|
Loss from operations |
|
(82.1 |
) |
|
|
(4.4 |
) |
|
|
(112.6 |
) |
|
|
(23.4 |
) |
Interest expense, net |
|
3.4 |
|
|
|
3.4 |
|
|
|
10.3 |
|
|
|
10.0 |
|
Interest income |
|
(6.8 |
) |
|
|
(2.9 |
) |
|
|
(16.8 |
) |
|
|
(3.6 |
) |
Other (income) expense, net |
|
(4.9 |
) |
|
|
0.4 |
|
|
|
(5.3 |
) |
|
|
0.4 |
|
Change in fair value of warrant liabilities |
|
(5.9 |
) |
|
|
(4.3 |
) |
|
|
(8.4 |
) |
|
|
(71.5 |
) |
Foreign currency transaction loss (gain), net |
|
2.3 |
|
|
|
— |
|
|
|
0.7 |
|
|
|
1.8 |
|
(Loss) income before provision for income taxes |
|
(70.3 |
) |
|
|
(0.9 |
) |
|
|
(93.1 |
) |
|
|
39.6 |
|
Income tax expense (benefit) |
|
3.5 |
|
|
|
(0.8 |
) |
|
|
(2.4 |
) |
|
|
1.9 |
|
Net (loss) income |
|
(73.8 |
) |
|
|
(0.1 |
) |
|
|
(90.7 |
) |
|
|
37.7 |
|
Comprehensive (loss) income, net of tax: |
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustments |
|
(1.1 |
) |
|
|
(1.6 |
) |
|
|
(0.6 |
) |
|
|
(5.5 |
) |
Comprehensive (loss) income |
$ |
(74.9 |
) |
|
$ |
(1.7 |
) |
|
$ |
(91.3 |
) |
|
$ |
32.2 |
|
Net (loss) income per share |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
(0.56 |
) |
|
$ |
— |
|
|
$ |
(0.68 |
) |
|
$ |
0.25 |
|
Diluted |
$ |
(0.56 |
) |
|
$ |
(0.03 |
) |
|
$ |
(0.68 |
) |
|
$ |
(0.22 |
) |
Weighted average common shares outstanding |
|
|
|
|
|
|
|
||||||||
Basic |
|
132,896,626 |
|
|
|
150,788,695 |
|
|
|
132,679,547 |
|
|
|
150,706,795 |
|
Diluted |
|
132,896,626 |
|
|
|
151,417,710 |
|
|
|
132,679,547 |
|
|
|
152,018,246 |
|
___________________
(1) Amounts may not sum due to rounding.
(2) Reflects the impact of immaterial revisions to the financial statements.
The Beauty Health Company
Condensed Consolidated Balance Sheets (1)
($ in millions)
(Unaudited)
|
September 30, 2023 |
|
December 31, 2022 (2) |
||||
ASSETS |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
559.4 |
|
|
$ |
568.2 |
|
Accounts receivable, net |
|
66.8 |
|
|
|
76.5 |
|
Inventories |
|
74.9 |
|
|
|
109.7 |
|
Income tax receivable |
|
1.0 |
|
|
|
1.3 |
|
Prepaid expenses and other current assets |
|
35.9 |
|
|
|
27.6 |
|
Total current assets |
|
738.0 |
|
|
|
783.3 |
|
Property and equipment, net |
|
16.1 |
|
|
|
18.2 |
|
Right-of-use assets, net |
|
13.3 |
|
|
|
15.6 |
|
Intangible assets, net |
|
64.6 |
|
|
|
46.4 |
|
Goodwill |
|
124.7 |
|
|
|
124.6 |
|
Deferred income tax assets, net |
|
0.8 |
|
|
|
0.8 |
|
Other assets |
|
15.5 |
|
|
|
14.2 |
|
TOTAL ASSETS |
$ |
973.1 |
|
|
$ |
1,003.1 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
35.9 |
|
|
$ |
28.5 |
|
Accrued payroll-related expenses |
|
20.8 |
|
|
|
21.7 |
|
Syndeo Program reserves |
|
32.1 |
|
|
|
— |
|
Lease liabilities, current |
|
4.7 |
|
|
|
5.0 |
|
Income tax payable |
|
2.0 |
|
|
|
1.4 |
|
Other accrued expenses |
|
30.5 |
|
|
|
15.2 |
|
Total current liabilities |
|
125.9 |
|
|
|
71.7 |
|
Lease liabilities, non-current |
|
10.1 |
|
|
|
12.7 |
|
Deferred income tax liabilities, net |
|
2.3 |
|
|
|
2.0 |
|
Warrant liabilities |
|
7.1 |
|
|
|
15.5 |
|
Convertible senior notes, net |
|
737.3 |
|
|
|
734.1 |
|
Other long-term liabilities |
|
0.4 |
|
|
|
— |
|
TOTAL LIABILITIES |
$ |
883.1 |
|
|
$ |
836.0 |
|
|
|
|
|
||||
Stockholders’ equity: |
|
|
|
||||
Class A Common Stock |
$ |
— |
|
|
$ |
— |
|
Additional paid-in capital |
|
564.5 |
|
|
|
550.3 |
|
Accumulated other comprehensive loss |
|
(5.1 |
) |
|
|
(4.5 |
) |
Accumulated deficit |
|
(469.5 |
) |
|
|
(378.8 |
) |
Total stockholders’ equity |
$ |
90.0 |
|
|
$ |
167.1 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
$ |
973.1 |
|
|
$ |
1,003.1 |
|
___________________
(1) Amounts may not sum due to rounding.
(2) Reflects the impact of immaterial revisions to the financial statements.
The Beauty Health Company
Condensed Consolidated Statement of Cash Flows (1)
($ in millions)
(Unaudited)
|
Nine Months Ended September 30, |
||||||
|
|
2023 |
|
|
2022 (2) |
||
Cash and cash equivalents at beginning of period |
$ |
568.2 |
|
|
$ |
901.9 |
|
Operating activities: |
|
|
|
||||
Net (loss) income |
|
(90.7 |
) |
|
|
37.7 |
|
Non-cash adjustments |
|
82.2 |
|
|
|
(13.2 |
) |
Change in operating assets and liabilities: |
|
|
|
||||
Accounts receivable |
|
6.0 |
|
|
|
(40.6 |
) |
Inventories |
|
3.4 |
|
|
|
(72.1 |
) |
Prepaid expenses, other current assets, and income tax receivable |
|
(16.2 |
) |
|
|
(6.7 |
) |
Accounts payable, other accrued expenses, and income tax payable |
|
50.1 |
|
|
|
2.0 |
|
Other, net |
|
(7.9 |
) |
|
|
(8.2 |
) |
Net cash provided by (used for) operating activities |
|
26.9 |
|
|
|
(101.2 |
) |
Net cash used for investing activities |
|
(29.3 |
) |
|
|
(16.0 |
) |
Net cash used for financing activities |
|
(6.1 |
) |
|
|
(102.8 |
) |
Net decrease in cash and cash equivalents |
|
(8.5 |
) |
|
|
(220.0 |
) |
Effect of foreign currency translation |
|
(0.2 |
) |
|
|
2.3 |
|
Cash and cash equivalents at end of period |
$ |
559.4 |
|
|
$ |
684.2 |
|
___________________
(1) Amounts may not sum due to rounding.
(2) Reflects the impact of immaterial revisions to the financial statements.
The following table reconciles gross (loss) profit to adjusted gross profit for the periods presented:
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
Unaudited ($ in millions) (2) |
|
2023 |
|
|
2022(1) |
|
2023(3) |
|
2022(1) |
||||||
Net sales |
$ |
97.4 |
|
|
$ |
88.8 |
|
|
$ |
301.2 |
|
|
$ |
267.7 |
|
|
|
|
|
|
|
|
|
||||||||
Gross (loss) profit |
$ |
(12.6 |
) |
|
$ |
61.4 |
|
|
$ |
109.4 |
|
|
$ |
182.3 |
|
Gross margin |
|
(12.9 |
)% |
|
|
69.1 |
% |
|
|
36.3 |
% |
|
|
68.1 |
% |
|
|
|
|
|
|
|
|
||||||||
Adjusted to exclude the following: |
|
|
|
|
|
|
|
||||||||
Depreciation expense |
|
0.7 |
|
|
|
0.6 |
|
|
|
1.8 |
|
|
|
1.6 |
|
Amortization expense |
|
2.7 |
|
|
|
2.2 |
|
|
|
9.7 |
|
|
|
6.9 |
|
Stock-based compensation expense |
|
0.5 |
|
|
|
0.2 |
|
|
|
1.2 |
|
|
|
0.6 |
|
Write-off of discontinued, excess and obsolete product |
|
6.4 |
|
|
|
2.0 |
|
|
|
10.4 |
|
|
|
2.0 |
|
Syndeo Program |
|
63.1 |
|
|
|
— |
|
|
|
63.1 |
|
|
|
— |
|
Syndeo product optimization logistics & service costs |
|
— |
|
|
|
— |
|
|
|
1.4 |
|
|
|
— |
|
Adjusted gross profit |
$ |
60.9 |
|
|
$ |
66.4 |
|
|
$ |
197.0 |
|
|
$ |
193.4 |
|
Adjusted gross margin |
|
62.5 |
% |
|
|
74.8 |
% |
|
|
65.4 |
% |
|
|
72.2 |
% |
___________________
(1) Reflects the impact of immaterial revisions to the financial statements.
(2) Amounts may not sum due to rounding.
(3) Reflects the removal of the accrual for annual cash incentives in prior periods for comparability purposes.
The following table reconciles net (loss) income to adjusted EBITDA for the periods presented:
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
Unaudited ($ in millions) (2) |
|
2023 |
|
|
2022(1) |
|
2023(3) |
|
2022(1) |
||||||
Net sales |
$ |
97.4 |
|
|
$ |
88.8 |
|
|
$ |
301.2 |
|
|
$ |
267.7 |
|
|
|
|
|
|
|
|
|
||||||||
Net (loss) income |
$ |
(73.8 |
) |
|
$ |
(0.1 |
) |
|
$ |
(90.7 |
) |
|
$ |
37.7 |
|
Adjusted to exclude the following: |
|
|
|
|
|
|
|
||||||||
Expense (benefit) for income taxes |
|
3.5 |
|
|
|
(0.8 |
) |
|
|
(2.4 |
) |
|
|
1.9 |
|
Depreciation expense |
|
2.5 |
|
|
|
2.0 |
|
|
|
7.0 |
|
|
|
5.3 |
|
Amortization expense |
|
5.5 |
|
|
|
3.9 |
|
|
|
17.7 |
|
|
|
11.6 |
|
Stock-based compensation expense |
|
8.2 |
|
|
|
7.4 |
|
|
|
20.3 |
|
|
|
20.9 |
|
Interest expense |
|
3.4 |
|
|
|
3.4 |
|
|
|
10.3 |
|
|
|
10.0 |
|
Interest income |
|
(6.8 |
) |
|
|
(2.9 |
) |
|
|
(16.8 |
) |
|
|
(3.6 |
) |
Other (income) expense, net |
|
(4.9 |
) |
|
|
0.4 |
|
|
|
(5.3 |
) |
|
|
0.4 |
|
Change in fair value of warrant liability |
|
(5.9 |
) |
|
|
(4.3 |
) |
|
|
(8.4 |
) |
|
|
(71.5 |
) |
Foreign currency loss (gain), net |
|
2.3 |
|
|
|
— |
|
|
|
0.7 |
|
|
|
1.8 |
|
Loss on disposal of assets |
|
— |
|
|
|
3.7 |
|
|
|
0.1 |
|
|
|
4.7 |
|
Transaction related costs |
|
— |
|
|
|
— |
|
|
|
0.8 |
|
|
|
3.0 |
|
Write-off of discontinued, excess and obsolete product |
|
6.4 |
|
|
|
2.0 |
|
|
|
10.4 |
|
|
|
2.0 |
|
Litigation related costs |
|
— |
|
|
|
1.0 |
|
|
|
1.5 |
|
|
|
1.0 |
|
Syndeo Program |
|
63.1 |
|
|
|
— |
|
|
|
63.1 |
|
|
|
— |
|
Syndeo product optimization logistics & service costs |
|
— |
|
|
|
— |
|
|
|
1.4 |
|
|
|
— |
|
Severance, restructuring and other |
|
5.5 |
|
|
|
0.6 |
|
|
|
11.3 |
|
|
|
3.4 |
|
Adjusted EBITDA |
$ |
9.1 |
|
|
$ |
16.3 |
|
|
$ |
21.0 |
|
|
$ |
28.5 |
|
Adjusted EBITDA margin |
|
9.3 |
% |
|
|
18.4 |
% |
|
|
7.0 |
% |
|
|
10.7 |
% |
___________________
(1) Reflects the impact of immaterial revisions to the financial statements.
(2) Amounts may not sum due to rounding.
(3) Reflects the removal of the accrual for annual cash incentives in prior periods for comparability purposes.
About The Beauty Health Company
The Beauty Health Company (NASDAQ: SKIN) is a global category-creating company delivering millions of skin health experiences every year that help consumers reinvent their relationship with their skin, bodies and self-confidence. Our brands are pioneers: Hydrafacial™ in hydradermabrasion, SkinStylus™ in microneedling, and Keravive™ in scalp health. Together, with our powerful community of estheticians, partners and consumers, we are personalizing skin health for all ages, genders, skin tones, and skin types in more than 90 countries. We are committed to being ever more mindful in how we conduct our business to positively impact our communities and the planet. Find a local provider at https://hydrafacial.com/find-a-provider/, and learn more at beautyhealth.com or LinkedIn.
Forward-Looking Statements
Certain statements made in this release are “forward looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995, including statements regarding The Beauty Health Company’s strategy, plans, objectives, initiatives and financial outlook. When used in this press release, the words “estimates,” “projected,” “expects,” “anticipates,” “forecasts,” “plans,” “intends,” “believes,” “seeks,” “may,” “will,” “should,” “future,” “propose” and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements.
These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside The Beauty Health Company’s control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. As such, readers are cautioned not to place undue reliance on any forward-looking statements.
Important factors that may affect actual results or outcomes include, among others: The Beauty Health Company’s ability to manage growth; The Beauty Health Company’s ability to execute its business plan; potential litigation involving The Beauty Health Company; changes in applicable laws or regulations; the possibility that The Beauty Health Company may be adversely affected by other economic, business, and/or competitive factors; the impact of the continuing COVID-19 pandemic on the Company’s business; and other risks and uncertainties set forth in the sections entitled “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 filed with the
View source version on businesswire.com: https://www.businesswire.com/news/home/20231113581193/en/
Investors: IR@beautyhealth.com
Press: Press@beautyhealth.com
Source: The Beauty Health Company
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