Venus Concept Inc. (“Venus Concept” or the “Company”) (NASDAQ:
VERO), a global medical aesthetic technology leader, announced
financial results for the three and nine months ended September 30,
2024.
Summary of Financial Results &
Recent Progress:
- Company continues to execute
against Transformation Plan
- Cash used in operations for the
first nine months of 2024 of $7.3 million, down 40%
year-over-year
- Total revenue for the third quarter
of $15.0 million, down 15% year-over-year, and below third quarter
estimate of at “least $17.0 million”.
- Third quarter operating expenses
declined 10% year-over-year; limiting GAAP operating loss to 6%
year-over-year, despite 15% revenue decline
- Third quarter Adjusted EBITDA loss
of $5.9 million, compared to $4.6 million last year
- On July 29, 2024, the Company
announced that it received a medical device license issued by
Health Canada to market the Venus Bliss MAX system in Canada. The
Venus Bliss MAX is the Company’s flagship platform that offers a
comprehensive, world-class solution for all customers’ body
treatment needs and is currently available in select markets
globally.
- On September 18, 2024, the Company
announced that it received clearance from the Therapeutic Goods
Administration (TGA) in Australia to market the Venus Bliss MAX
system.
- On September 27, 2024, the Company
announced that, on September 26, 2024, the Company exchanged $15.0
million of its senior debt held by affiliates of Madryn Asset
Management, LP (“Madryn”) for 203,583 shares of its Series Y
preferred stock. Following this transaction, the Company had total
debt obligations of approximately $34.6 million, down 25% from
$46.0 million outstanding as of June 30, 2024 and down 54% from
$74.9 million outstanding as of December 31, 2023.
Management Commentary:
“Third quarter revenue results were softer than
the expectations we outlined during our second quarter report,”
said Rajiv De Silva, Chief Executive Officer of Venus Concept.
“Aesthetic capital equipment sales continue to be challenged by
macroeconomic headwinds particularly in the US, as expected.
However, importantly, we continue to see evidence that our efforts
to reposition the business over the last eighteen months have been
proving successful. We are enhancing our cash flow profile – as
evidenced by the 40% reduction year-over-year in cash used in
operations over the first nine months of 2024 -- and remain focused
on enhancing the health of our balance sheet and the Company’s
foundation to support long-term, sustainable, profitability and
growth in the future.”
Third Quarter 2024 Financial Results:
|
|
Three Months Ended September 30, |
|
|
|
|
|
2024 |
|
|
2023 |
|
|
|
|
|
(dollars in thousands) |
|
|
|
Revenues by region: |
|
|
|
|
|
|
|
|
|
|
United States |
|
$ |
8,548 |
|
|
$ |
11,167 |
|
|
|
International |
|
|
6,459 |
|
|
|
6,449 |
|
|
|
Total revenue |
|
$ |
15,007 |
|
|
$ |
17,616 |
|
|
|
|
|
|
Three Months Ended September 30, |
|
|
|
|
|
|
|
|
|
|
|
|
2024 |
|
|
2023 |
|
|
Change |
|
|
(in thousands, except
percentages) |
|
$ |
|
|
% of Total |
|
|
$ |
|
|
% of Total |
|
|
$ |
|
|
% |
|
|
Revenues by product: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Venus Prime /
Subscription—Systems |
|
$ |
2,684 |
|
|
17.9 |
|
|
$ |
4,368 |
|
|
|
24.8 |
|
|
$ |
(1,684 |
) |
|
|
(38.6 |
) |
|
Products—Systems |
|
|
8,898 |
|
|
59.3 |
|
|
|
9,834 |
|
|
|
55.8 |
|
|
|
(936 |
) |
|
|
(9.5 |
) |
|
Products—Other |
|
|
2,741 |
|
|
18.3 |
|
|
|
2,487 |
|
|
|
14.1 |
|
|
|
254 |
|
|
|
10.2 |
|
|
Services |
|
|
684 |
|
|
4.5 |
|
|
|
927 |
|
|
|
5.3 |
|
|
|
(243 |
) |
|
|
(26.2 |
) |
|
Total |
|
$ |
15,007 |
|
|
100.0 |
|
|
$ |
17,616 |
|
|
|
100.0 |
|
|
$ |
(2,609 |
) |
|
|
(14.8 |
) |
|
|
Total revenue for the third quarter of 2024
decreased $2.6 million, or 15%, to $15.0 million, compared to the
third quarter of 2023. The decrease in total revenue, by region,
was driven by a 23% decrease year-over-year in United States
revenue as the change in International revenue year-over-year was
nominal. The decrease in total revenue, by product category, was
driven primarily by a 39% decrease in lease revenue and a 10%
decrease in products – systems revenue. The percentage of total
systems revenue derived from the Company’s internal lease programs
(Venus Prime and our legacy subscription model) was approximately
23% in the third quarter of 2024, compared to 31% in the prior year
period.
Gross profit for the third quarter of 2024
decreased $2.3 million, or 19%, to $9.9 million compared to the
third quarter of 2023. The decrease in gross profit is primarily
due to the effects of tighter third-party lending practices which
negatively impacted capital equipment sales in the U.S., and a
decrease in revenue in our international markets driven by the
accelerated exit from unprofitable direct markets, partially offset
by an improvement in third party international distributor
revenues. Gross margin was 66.1% of revenue, compared to 69.2% of
revenue for the third quarter of 2023.
Operating expenses for the third quarter of 2024
decreased $1.9 million, or 10%, to $17.1 million, compared to the
third quarter of 2023. The change in total operating expenses was
driven by a decrease of $1.4 million, or 14%, in general and
administrative expenses, a decrease of $0.3 million, or 4%, in
selling and marketing expenses, and a decrease of $0.2 million, or
12%, in research and development expenses. Third quarter of 2024
general and administrative expenses included approximately $0.1
million of costs related to restructuring activities designed to
improve the Company's operations and cost structure.
Operating loss for the third quarter of 2024 was
$7.2 million, compared to operating loss of $6.8 million for the
third quarter of 2023.
Net loss attributable to stockholders for the
third quarter of 2024 was $9.3 million, or $1.28 per share,
compared to net loss of $9.1 million, or $1.64 per share for the
third quarter of 2023. Third quarter net loss attributable to
stockholders included a pre-tax loss on debt extinguishment of $0.5
million related to the debt-to-equity exchange transaction.
Adjusted EBITDA loss for the third quarter of 2024 was $5.9
million, compared to adjusted EBITDA loss of $4.6 million for the
third quarter of 2023.
As of September 30, 2024, the Company had cash
and cash equivalents of $4.5 million and total debt obligations of
approximately $34.6 million, compared to $5.4 million and $74.9
million, respectively, as of December 31, 2023.
Fiscal Year 2024 Financial Outlook:
The Company expects total revenue for the three
months ending December 31, 2024 of at least $17.0 million,
representing a 6% decline year-over-year and a 13% increase
quarter-over-quarter.
Conference Call Details:
Management will host a conference call at 8:00
a.m. Eastern Time on November 13, 2024 to discuss the results of
the quarter with a question-and-answer session. Those who would
like to participate may dial 877-407-2991 (201-389-0925 for
international callers) and provide access code 13749236. A live
webcast of the call will also be provided on the investor relations
section of the Company's website at ir.venusconcept.com.
For those unable to participate, a replay of the
call will be available for two weeks at: 877-660-6853 (201-612-7415
for international callers); access code 13749236. The webcast will
be archived at ir.venusconcept.com.
About Venus Concept
Venus Concept is an innovative global medical
aesthetic technology leader with a broad product portfolio of
minimally invasive and non-invasive medical aesthetic and hair
restoration technologies and reach in over 60 countries and 10
direct markets. Venus Concept's product portfolio consists of
aesthetic device platforms, including Venus Versa, Venus Versa Pro,
Venus Legacy, Venus Velocity, Venus Viva, Venus Glow, Venus Bliss,
Venus Bliss MAX, Venus Epileve, Venus Viva MD and AI.ME. Venus
Concept's hair restoration systems include NeoGraft® and the ARTAS
iX® Robotic Hair Restoration system. Venus Concept has been backed
by leading healthcare industry growth equity investors, including
EW Healthcare Partners (formerly Essex Woodlands), HealthQuest
Capital, Longitude Capital Management and Aperture Venture
Partners.
Cautionary Statement Regarding
Forward-Looking Statements
This communication contains “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. Any statements contained herein that are not
of historical facts may be deemed to be forward-looking statements.
In some cases, you can identify these statements by words such as
such as “anticipates,” “believes,” “plans,” “expects,” “projects,”
“future,” “intends,” “may,” “should,” “could,” “estimates,”
“predicts,” “potential,” “continue,” “guidance,” and other similar
expressions that are predictions of or indicate future events and
future trends. These forward-looking statements include, but are
not limited to, but are not limited to, statements about our
financial performance and metrics; the growth in demand for our
systems and other products; the efficacy of the restructuring plan;
the identification and efficacy of strategic alternatives to
maximize shareholder value; the reduction in our cash burn; and the
continued implementation of turnaround plans, including debt
restructurings and financings. These forward-looking statements are
based on current expectations, estimates, forecasts, and
projections about our business and the industry in which the
Company operates and management's beliefs and assumptions and are
not guarantees of future performance or developments and involve
known and unknown risks, uncertainties, and other factors that are
in some cases beyond our control. As a result, any or all of our
forward-looking statements in this communication may turn out to be
inaccurate. Factors that could materially affect our business
operations and financial performance and condition include, but are
not limited to, those risks and uncertainties described under Part
II Item 1A—“Risk Factors” in our Quarterly Reports on Form 10-Q and
Part I Item 1A—“Risk Factors” in our Annual Report on Form 10-K for
the fiscal year ended December 31, 2023. You are urged to consider
these factors carefully in evaluating the forward-looking
statements and are cautioned not to place undue reliance on the
forward-looking statements. The forward-looking statements are
based on information available to us as of the date of this
communication. Unless required by law, the Company does not intend
to publicly update or revise any forward-looking statements to
reflect new information or future events or otherwise.
Venus Concept Inc.Condensed Consolidated
Balance Sheets(In thousands of U.S. dollars,
except share and per share data) |
|
|
|
September 30, |
|
|
December 31, |
|
|
|
2024 |
|
|
2023 |
|
ASSETS |
|
|
|
|
|
|
|
|
CURRENT ASSETS: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
4,489 |
|
|
$ |
5,396 |
|
Accounts receivable, net of allowance of $4,133 and $7,415 as of
September 30, 2024, and December 31, 2023, respectively |
|
|
21,102 |
|
|
|
29,151 |
|
Inventories |
|
|
18,904 |
|
|
|
23,072 |
|
Prepaid expenses |
|
|
1,002 |
|
|
|
1,298 |
|
Advances to suppliers |
|
|
4,508 |
|
|
|
5,604 |
|
Other current assets |
|
|
1,213 |
|
|
|
1,925 |
|
Total current assets |
|
|
51,218 |
|
|
|
66,446 |
|
LONG-TERM ASSETS: |
|
|
|
|
|
|
|
|
Long-term receivables, net |
|
|
8,865 |
|
|
|
11,318 |
|
Deferred tax assets |
|
|
1,292 |
|
|
|
1,032 |
|
Severance pay funds |
|
|
426 |
|
|
|
573 |
|
Property and equipment, net |
|
|
1,038 |
|
|
|
1,322 |
|
Operating right-of-use assets, net |
|
|
3,591 |
|
|
|
4,517 |
|
Intangible assets |
|
|
5,846 |
|
|
|
8,446 |
|
Total long-term assets |
|
|
21,058 |
|
|
|
27,208 |
|
TOTAL ASSETS |
|
$ |
72,276 |
|
|
$ |
93,654 |
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY (DEFICIT) |
|
|
|
|
|
|
|
|
CURRENT LIABILITIES: |
|
|
|
|
|
|
|
|
Trade payables |
|
$ |
7,120 |
|
|
|
9,038 |
|
Accrued expenses and other current liabilities |
|
|
10,674 |
|
|
|
12,437 |
|
Note payable |
|
|
4,389 |
|
|
|
— |
|
Current portion of long-term debt |
|
|
200 |
|
|
|
4,155 |
|
Income taxes payable |
|
|
663 |
|
|
|
366 |
|
Unearned interest income |
|
|
1,027 |
|
|
|
1,468 |
|
Warranty accrual |
|
|
1,072 |
|
|
|
1,029 |
|
Deferred revenues |
|
|
915 |
|
|
|
1,076 |
|
Operating lease liabilities |
|
|
1,407 |
|
|
|
1,590 |
|
Total current liabilities |
|
|
27,467 |
|
|
|
31,159 |
|
LONG-TERM LIABILITIES: |
|
|
|
|
|
|
|
|
Long-term debt |
|
|
30,025 |
|
|
|
70,790 |
|
Accrued severance pay |
|
|
464 |
|
|
|
634 |
|
Deferred tax liabilities |
|
|
— |
|
|
|
15 |
|
Unearned interest revenue |
|
|
394 |
|
|
|
671 |
|
Warranty accrual |
|
|
269 |
|
|
|
334 |
|
Operating lease liabilities |
|
|
2,333 |
|
|
|
3,162 |
|
Other long-term liabilities |
|
|
696 |
|
|
|
338 |
|
Total long-term liabilities |
|
|
34,181 |
|
|
|
75,944 |
|
TOTAL LIABILITIES |
|
|
61,648 |
|
|
|
107,103 |
|
Commitments and Contingencies
(Note 9) |
|
|
|
|
|
|
|
|
STOCKHOLDERS’ EQUITY (DEFICIT)
(Note 15): |
|
|
|
|
|
|
|
|
Common Stock, $0.0001 par
value: 300,000,000 shares authorized as of September 30, 2024 and
December 31, 2023; 7,255,277 and 5,529,149 issued and outstanding
as of September 30, 2024, and December 31, 2023, respectively |
|
|
30 |
|
|
|
30 |
|
Additional paid-in
capital |
|
|
311,012 |
|
|
|
247,854 |
|
Accumulated deficit |
|
|
(300,934 |
) |
|
|
(261,903 |
) |
TOTAL STOCKHOLDERS’ EQUITY
(DEFICIT) |
|
|
10,108 |
|
|
|
(14,019 |
) |
Non-controlling interests |
|
|
520 |
|
|
|
570 |
|
|
|
|
10,628 |
|
|
|
(13,449 |
) |
TOTAL LIABILITIES AND
STOCKHOLDERS’ EQUITY (DEFICIT) |
|
$ |
72,276 |
|
|
$ |
93,654 |
|
|
Venus Concept Inc.Condensed Consolidated
Statements of Operations(In thousands of U.S.
dollars, except per share data) |
|
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Leases |
|
$ |
2,684 |
|
|
$ |
4,368 |
|
|
$ |
10,732 |
|
|
$ |
14,440 |
|
Products and services |
|
|
12,323 |
|
|
|
13,248 |
|
|
|
38,336 |
|
|
|
43,782 |
|
|
|
|
15,007 |
|
|
|
17,616 |
|
|
|
49,068 |
|
|
|
58,222 |
|
Cost of goods sold: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Leases |
|
|
651 |
|
|
|
1,183 |
|
|
|
2,538 |
|
|
|
3,633 |
|
Products and services |
|
|
4,435 |
|
|
|
4,248 |
|
|
|
13,113 |
|
|
|
14,485 |
|
|
|
|
5,086 |
|
|
|
5,431 |
|
|
|
15,651 |
|
|
|
18,118 |
|
Gross profit |
|
|
9,921 |
|
|
|
12,185 |
|
|
|
33,417 |
|
|
|
40,104 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and marketing |
|
|
6,654 |
|
|
|
6,907 |
|
|
|
21,076 |
|
|
|
23,319 |
|
General and
administrative |
|
|
8,732 |
|
|
|
10,115 |
|
|
|
27,640 |
|
|
|
30,933 |
|
Research and development |
|
|
1,692 |
|
|
|
1,925 |
|
|
|
5,214 |
|
|
|
6,527 |
|
Total operating expenses |
|
|
17,078 |
|
|
|
18,947 |
|
|
|
53,930 |
|
|
|
60,779 |
|
Loss from operations |
|
|
(7,157 |
) |
|
|
(6,762 |
) |
|
|
(20,513 |
) |
|
|
(20,675 |
) |
Other expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign exchange loss |
|
|
57 |
|
|
|
909 |
|
|
|
1,155 |
|
|
|
379 |
|
Finance expenses |
|
|
1,665 |
|
|
|
1,605 |
|
|
|
5,785 |
|
|
|
4,666 |
|
Loss on disposal of
subsidiaries |
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
77 |
|
Loss on debt
extinguishment |
|
|
454 |
|
|
|
— |
|
|
|
11,355 |
|
|
|
— |
|
Loss before income taxes |
|
|
(9,333 |
) |
|
|
(9,277 |
) |
|
|
(38,808 |
) |
|
|
(25,797 |
) |
Income tax (benefit)
expense |
|
|
(31 |
) |
|
|
(321 |
) |
|
|
147 |
|
|
|
103 |
|
Net loss |
|
$ |
(9,302 |
) |
|
$ |
(8,956 |
) |
|
$ |
(38,955 |
) |
|
$ |
(25,900 |
) |
Net loss attributable to
stockholders of the Company |
|
$ |
(9,286 |
) |
|
$ |
(9,068 |
) |
|
$ |
(39,031 |
) |
|
$ |
(26,134 |
) |
Net (loss) income attributable
to non-controlling interest |
|
$ |
(16 |
) |
|
$ |
112 |
|
|
$ |
76 |
|
|
$ |
234 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(1.28 |
) |
|
$ |
(1.64 |
) |
|
$ |
(5.96 |
) |
|
$ |
(4.83 |
) |
Diluted |
|
$ |
(1.28 |
) |
|
$ |
(1.64 |
) |
|
$ |
(5.96 |
) |
|
$ |
(4.83 |
) |
Weighted-average number of
shares used in per share calculation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
7,255 |
|
|
|
5,527 |
|
|
|
6,547 |
|
|
|
5,413 |
|
Diluted |
|
|
7,255 |
|
|
|
5,527 |
|
|
|
6,547 |
|
|
|
5,413 |
|
|
Venus Concept Inc.Condensed Consolidated
Statements of Cash Flows(in
thousands) |
|
|
|
Nine Months Ended September 30, |
|
|
|
2024 |
|
|
2023 |
|
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(38,955 |
) |
|
$ |
(25,900 |
) |
Adjustments to reconcile net
loss to net cash used in operating activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
2,924 |
|
|
|
3,042 |
|
Stock-based compensation |
|
|
817 |
|
|
|
1,214 |
|
Provision for expected credit losses |
|
|
869 |
|
|
|
1,263 |
|
Provision for inventory obsolescence |
|
|
950 |
|
|
|
760 |
|
Finance expenses and accretion |
|
|
4,150 |
|
|
|
1,310 |
|
Deferred tax expense (recovery) |
|
|
(275 |
) |
|
|
14 |
|
Loss on sale of subsidiary |
|
|
— |
|
|
|
77 |
|
Loss on extinguishment of debt |
|
|
11,355 |
|
|
|
— |
|
Loss (gain) on disposal of property and equipment |
|
|
2 |
|
|
|
(1 |
) |
Changes in operating assets
and liabilities: |
|
|
|
|
|
|
|
|
Accounts receivable short-term and long-term |
|
|
9,914 |
|
|
|
11,146 |
|
Inventories |
|
|
3,218 |
|
|
|
(246 |
) |
Prepaid expenses |
|
|
296 |
|
|
|
527 |
|
Advances to suppliers |
|
|
1,096 |
|
|
|
128 |
|
Other current assets |
|
|
712 |
|
|
|
1,268 |
|
Operating right-of-use assets, net |
|
|
926 |
|
|
|
1,215 |
|
Other long-term assets |
|
|
(281 |
) |
|
|
(380 |
) |
Trade payables |
|
|
(1,607 |
) |
|
|
(913 |
) |
Accrued expenses and other current liabilities |
|
|
(1,583 |
) |
|
|
(4,483 |
) |
Current operating lease liabilities |
|
|
(183 |
) |
|
|
(292 |
) |
Severance pay funds |
|
|
147 |
|
|
|
148 |
|
Unearned interest income |
|
|
(718 |
) |
|
|
(960 |
) |
Long-term operating lease liabilities |
|
|
(829 |
) |
|
|
(917 |
) |
Other long-term liabilities |
|
|
(204 |
) |
|
|
(105 |
) |
Net cash used in operating activities |
|
|
(7,259 |
) |
|
|
(12,085 |
) |
CASH FLOWS FROM
INVESTING ACTIVITIES: |
|
|
|
|
|
|
|
|
Purchases of property and equipment |
|
|
(43 |
) |
|
|
(89 |
) |
Net cash used in investing activities |
|
|
(43 |
) |
|
|
(89 |
) |
CASH FLOWS FROM
FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
|
Proceeds from issuance of common stock |
|
|
10 |
|
|
|
1,109 |
|
2023 Multi-Tranche Private Placement, net of costs of $491 |
|
|
— |
|
|
|
4,509 |
|
2024 Registered Direct Offering shares and warrants, net of costs
of $222 |
|
|
976 |
|
|
|
— |
|
Dividends from subsidiaries paid to non-controlling interest |
|
|
(126 |
) |
|
|
(87 |
) |
Proceeds from Short-Term Bridge Financing from Madryn, net of costs
of $310 |
|
|
3,928 |
|
|
|
— |
|
2024 Convertible Notes issued to EW, net of costs of $393 |
|
|
1,607 |
|
|
|
— |
|
Net cash provided by financing activities |
|
|
6,395 |
|
|
|
5,531 |
|
NET DECREASE IN CASH AND CASH
EQUIVALENTS AND RESTRICTED CASH |
|
|
(907 |
) |
|
|
(6,643 |
) |
CASH AND CASH EQUIVALENTS AND
RESTRICTED CASH — Beginning of period |
|
|
5,396 |
|
|
|
11,569 |
|
CASH AND CASH EQUIVALENTS AND
RESTRICTED CASH — End of period |
|
$ |
4,489 |
|
|
$ |
4,926 |
|
SUPPLEMENTAL
DISCLOSURES OF CASH FLOW INFORMATION: |
|
|
|
|
|
|
|
|
Cash paid for income taxes |
|
$ |
98 |
|
|
$ |
90 |
|
Cash paid for interest |
|
$ |
1,633 |
|
|
$ |
3,356 |
|
|
|
|
|
|
|
|
|
|
Use of Non-GAAP Financial Measures
Adjusted EBITDA is a non-GAAP measure defined as
net income (loss) before foreign exchange (gain) loss, financial
expenses, income tax expense (benefit), depreciation and
amortization, stock-based compensation and non-recurring items for
a given period. Adjusted EBITDA is not a measure of our financial
performance under U.S. GAAP and should not be considered an
alternative to net income or any other performance measures derived
in accordance with U.S. GAAP. Accordingly, you should consider
Adjusted EBITDA along with other financial performance measures,
including net income, and our financial results presented in
accordance with U.S. GAAP. Other companies, including companies in
our industry, may calculate Adjusted EBITDA differently or not at
all, which reduces its usefulness as a comparative measure. We
understand that although Adjusted EBITDA is frequently used by
securities analysts, lenders and others in their evaluation of
companies, Adjusted EBITDA has limitations as an analytical tool,
and you should not consider it in isolation, or as a substitute for
analysis of our results as reported under U.S. GAAP. Some of these
limitations are: Adjusted EBITDA does not reflect our cash
expenditures or future requirements for capital expenditures or
contractual commitments; Adjusted EBITDA does not reflect changes
in, or cash requirements for, our working capital needs; and
although depreciation and amortization are non-cash charges, the
assets being depreciated will often have to be replaced in the
future, and Adjusted EBITDA does not reflect any cash requirements
for such replacements.
We believe that Adjusted EBITDA is a useful
measure for analyzing the performance of our core business because
it facilitates operating performance comparisons from period to
period and company to company by backing out potential differences
caused by changes in foreign exchange rates that impact financial
assets and liabilities denominated in currencies other than the
U.S. dollar, tax positions (such as the impact on periods or
companies of changes in effective tax rates), the age and book
depreciation of fixed assets (affecting relative depreciation
expense), amortization of intangible assets, stock-based
compensation expense (because it is a non-cash expense) and
non-recurring items as explained below.
The following is a reconciliation of net loss to Adjusted EBITDA
for the periods presented:
Venus Concept Inc.Reconciliation of Net
loss to Non-GAAP Adjusted EBITDA |
|
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
Reconciliation of net
loss to adjusted EBITDA |
|
(in thousands) |
|
|
(in thousands) |
Net loss |
|
$ |
(9,302 |
) |
|
$ |
(8,956 |
) |
|
$ |
(38,955 |
) |
|
$ |
(25,900 |
) |
Foreign exchange loss |
|
|
57 |
|
|
|
909 |
|
|
|
1,155 |
|
|
|
379 |
|
Loss on disposal of
subsidiaries |
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
77 |
|
Loss on debt
extinguishment |
|
|
454 |
|
|
|
— |
|
|
|
11,355 |
|
|
|
— |
|
Finance expenses |
|
|
1,665 |
|
|
|
1,605 |
|
|
|
5,785 |
|
|
|
4,666 |
|
Income tax (benefit)
expense |
|
|
(31 |
) |
|
|
(321 |
) |
|
|
147 |
|
|
|
103 |
|
Depreciation and
amortization |
|
|
971 |
|
|
|
1,010 |
|
|
|
2,924 |
|
|
|
3,042 |
|
Stock-based compensation
expense |
|
|
239 |
|
|
|
364 |
|
|
|
817 |
|
|
|
1,214 |
|
CEWS (1) |
|
|
— |
|
|
|
— |
|
|
|
418 |
|
|
|
— |
|
Other adjustments (2) |
|
|
73 |
|
|
|
752 |
|
|
|
1,220 |
|
|
|
2,082 |
|
Adjusted EBITDA |
|
$ |
(5,874 |
) |
|
$ |
(4,636 |
) |
|
$ |
(15,134 |
) |
|
$ |
(14,337 |
) |
|
(1) In April
2022, the Canada Revenue Agency (“CRA”) initiated an audit of the
Canada Emergency Wage Subsidy Claim (“CEWS”) that the Company filed
between 2020-2021. The CRA has currently assessed a denial of CEWS
claims made by the Company in 2020 and requesting repayment of
$418. The Company disputes the CRA assessment and intends to
challenge this matter through the Tax Court or Judicial
Review. |
|
(2) For the three
and nine months ended September 30, 2024 and September 30, 2023 the
other adjustments are represented by restructuring activities
designed to improve the Company's operations and cost
structure. |
Investor Relations Contact:
ICR Westwicke on behalf of Venus Concept:
Mike Piccinino, CFA
VenusConceptIR@westwicke.com
Venus Concept (NASDAQ:VERO)
過去 株価チャート
から 11 2024 まで 12 2024
Venus Concept (NASDAQ:VERO)
過去 株価チャート
から 12 2023 まで 12 2024