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 fourth quarter and full year ended December 31, 2020.
Fourth Quarter 2020 Financial and Operational Highlights
-
Revenue was $49.9 million in the fourth quarter, a decrease of 4% from the prior-year period and an increase of 28% sequentially. The year-over-year decline was solely attributed to lower levels of capital equipment purchases due to COVID-related disruptions, while patient traffic and energy-based treatment volumes were estimated to be at pre-COVID-19 levels during the quarter.
- Capital Equipment revenue of $30.1 million declined 26% over the prior-year period, while increasing 25% sequentially over the third quarter of 2020.
-
Recurring revenue, defined as the combination of Service, Skincare and Consumable Product categories, was $19.8 million during the fourth quarter, growing 80% over the prior-year period and 32% sequentially over the third quarter of 2020.
- Skincare revenue was $10.6 million during the quarter, compared to $2.3 million in the prior-year period, growth of 363%.
- Consumable Product revenue was $3.0 million, growing 19% over the prior-year period and 31% sequentially from the third quarter of 2020, reflecting the continued recovery of energy-based treatment volumes.
- Service revenue of $6.2 million was flat versus the prior-year period, despite decreased access to practices from COVID-related restrictions.
- Gross Margin was 56.2% for fourth quarter 2020 compared to 55.6% in the prior-year period. Impacts from lower capital equipment production volumes and product mix shift were offset by reductions in fixed overhead and manufacturing efficiencies.
- Operating Expense improvements provided a year-over-year reduction of $4.1 million in the quarter, driven by lower selling expenses, partially offset by legal expenses.
- Net income was $2.2 million, or $0.12 per fully diluted share, as compared to a net loss of ($2.1) million, or ($0.15) per fully diluted share, in the prior-year period.
Full-Year 2020 Financial and Operational Highlights
-
Revenue was $147.7 million, compared to $181.7 million in 2019.
- Capital Equipment revenue of $90.8 million decreased 35% over 2019.
- Recurring Revenue of $56.9 million increased 38% over 2019, driven by Skincare increase of $16.5M over 2019.
- Gross Margin was 51.3% for full-year 2020, as compared to 54.0% in 2019.
- Operating Expenses decreased $11.6 million to $98.6 million, a decline of 11% over 2019.
- Net loss was $23.9 million, or ($1.43) per fully diluted share, as compared to a net loss of $12.3 million, or ($0.88) per fully diluted share, in 2019.
“I am pleased with our overall results for the fourth quarter and by the efforts our team put forth over the entirety of 2020. Our team’s commitment to execution drove steady improvement during the second half of 2020, posting solid results despite the difficult operating environment,” commented Dave Mowry, Chief Executive Officer of Cutera, Inc. “Our focus and resiliency enabled us to make steady progress on our vital commercial and operational initiatives during 2020. As a result of these efforts, we enter 2021 well-positioned to accelerate growth and expand profitability as the impact of COVID-19 continues to wane. I am particularly excited about what lies ahead for Cutera, as we work to bring truly innovative products to market and continue to fortify our business with greater discipline to sustain our financial performance.”
2021 Outlook
Given the continued uncertainty surrounding the magnitude and duration of the COVID-19 pandemic, the wide range of outcomes for its impact on capital sales, and its potential to delay procedure volumes over the course of the year, the Company will not be providing formal guidance at this time.
Conference Call
The Company’s management will host a conference call to the discuss these results and related matters today at 1:30 p.m. PT (4:30 p.m. ET). Participating on the call will be Dave Mowry, Chief Executive Officer, Rohan Seth, Chief Financial Officer, and, Jason Richey, President.
To participate in the conference call, dial 1-877-705-6003 (domestic) or + 1-201-493-6725 (international) and refer to the Conference Code: 13715746.
The call will also be 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 laser and other energy-based aesthetic systems for practitioners worldwide. Since 1998, Cutera has developed innovative, easy-to-use products that enable physicians and other qualified practitioners to offer safe and effective aesthetic treatments to their patients. For more information, call 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 diluted 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, and 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. 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, CRM and ERP 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 diluted 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 its 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, CFO and other senior leadership searches, 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 fourth quarter and full year ended December 31, 2020, as discussed in this release, is preliminary and unaudited, and subject to adjustment.
The financial data presented for the year ended December 31, 2020 should be considered preliminary and could be subject to change, as the Company’s independent auditor has not completed their audit.
| CUTERA, INC. | ||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
| (in thousands) | ||||||
| (unaudited) | ||||||
December 31, | December 31, | |||||
| Reporting Unit Balance Sheet | 2020 | 2019 | ||||
| Assets | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | $ | 47,047 | $ | 26,316 | ||
| Marketable investments | - | 7,605 | ||||
| Accounts receivable, net | 22,645 | 21,556 | ||||
| Inventories | 28,508 | 33,921 | ||||
| Other current assets and prepaid expenses | 8,096 | 5,648 | ||||
| Total current assets | 106,296 | 95,046 | ||||
| Property and equipment, net | 2,299 | 2,817 | ||||
| Deferred tax asset | 643 | 423 | ||||
| Goodwill | 1,339 | 1,339 | ||||
| Operating lease right-of-use assets | 17,076 | 7,702 | ||||
| Other long-term assets | 5,080 | 6,411 | ||||
| Total assets | $ | 132,733 | $ | 113,738 | ||
| Liabilities and Stockholders' Equity | ||||||
| Current liabilities: | ||||||
| Accounts payable | $ | 6,684 | $ | 12,685 | ||
| Accrued liabilities | 31,079 | 30,307 | ||||
| Operating leases liabilities | 2,260 | 2,800 | ||||
| Extended warranty liabilities | 1,216 | 1,999 | ||||
| Deferred revenue | 9,489 | 10,831 | ||||
| Total current liabilities | 50,728 | 58,622 | ||||
| Deferred revenue, net of current portion | 1,748 | 3,391 | ||||
| Income tax liability | - | 93 | ||||
| PPP Loan payable | 7,185 | - | ||||
| Operating lease liabilities, net of current portion | 15,950 | 5,112 | ||||
| Other long-term liabilities | 242 | 578 | ||||
| Total liabilities | 75,853 | 67,796 | ||||
| Stockholders’ equity: | ||||||
| Common stock | 18 | 14 | ||||
| Additional paid-in capital | 117,097 | 82,346 | ||||
| Accumulated deficit | (60,235) | (36,358) | ||||
| Accumulated other comprehensive loss | - | (60) | ||||
| Total stockholders' equity | 56,880 | 45,942 | ||||
| Total liabilities and stockholders' equity | $ | 132,733 | $ | 113,738 | ||
| CUTERA, INC. | ||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||
| (in thousands, except per share data) | ||||||||||||
| (unaudited) | ||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||
December 31, | December 31, | December 31, | December 31, | |||||||||
2020 | 2019 | 2020 | 2019 | |||||||||
| Products | $ | 43,723 | $ | 45,593 | 125,113 | $ | 158,638 | |||||
| Service | 6,220 | 6,202 | 22,570 | 23,074 | ||||||||
| Total net revenue | 49,943 | 51,795 | 147,683 | 181,712 | ||||||||
| Products | 17,999 | 18,415 | 58,325 | 64,693 | ||||||||
| Service | 3,878 | 4,590 | 13,586 | 18,856 | ||||||||
| Total cost of revenue | 21,877 | 23,005 | 71,911 | 83,549 | ||||||||
| Gross profit | 28,066 | 28,790 | 75,772 | 98,163 | ||||||||
| Gross margin % | 56% | 56% | 51% | 54% | ||||||||
| Operating expenses: | ||||||||||||
| Sales and marketing | 14,656 | 20,323 | 52,766 | 71,109 | ||||||||
| Research and development | 4,029 | 4,463 | 14,322 | 15,085 | ||||||||
| General and administrative | 7,938 | 5,933 | 31,512 | 24,033 | ||||||||
| Total operating expenses | 26,623 | 30,719 | 98,600 | 110,227 | ||||||||
| Income (Loss) from operations | 1,443 | (1,929) | (22,828) | (12,064) | ||||||||
| Interest and other income (expense), net | 7 | (20) | (579) | (199) | ||||||||
| Income (Loss) before income taxes | 1,450 | (1,949) | (23,407) | (12,263) | ||||||||
| Income tax expense (benefit) | (738) | 139 | 470 | 85 | ||||||||
| Net Income (loss) | $ | 2,188 | $ | (2,088) | $ | (23,877) | $ | (12,348) | ||||
| Net Income (loss) per share: | ||||||||||||
| Basic | $ | 0.12 | $ | (0.15) | $ | (1.43) | $ | (0.88) | ||||
| Diluted | $ | 0.12 | $ | (0.15) | $ | (1.43) | $ | (0.88) | ||||
| Weighted-average number of shares used in per share calculations: | ||||||||||||
| Basic | 17,653 | 14,261 | 16,691 | 14,096 | ||||||||
| Diluted | 17,840 | 14,261 | 16,691 | 14,096 | ||||||||
| CUTERA, INC. | ||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||
| (in thousands) | ||||||||||||
| (unaudited) | ||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||
December 31, | December 31, | December 31, | December 31, | |||||||||
2020 | 2019 | 2020 | 2019 | |||||||||
| Cash flows from operating activities: | ||||||||||||
| Net income (loss) | $ | 2,188 | $ | (2,088) | $ | (23,877) | $ | (12,348) | ||||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||||||
| Stock-based compensation | 2,052 | 2,828 | 10,109 | 9,832 | ||||||||
| Depreciation of tangible assets | 338 | 364 | 1,394 | 1,548 | ||||||||
| Amortization of contract acquisition costs | 579 | 746 | 2,593 | 2,915 | ||||||||
| Impairment of capitalized cloud computing costs | - | - | 805 | - | ||||||||
| Change in deferred tax asset | (143) | 36 | (220) | 34 | ||||||||
| Provision for credit losses | 394 | (57) | 2,144 | 590 | ||||||||
| Loss on sale of marketable investments, net | - | 60 | - | |||||||||
| Change in right-of-use asset/liability due to modification | 705 | - | 955 | - | ||||||||
| Other | 183 | 72 | 453 | 127 | ||||||||
| Changes in assets and liabilities: | ||||||||||||
| Accounts receivable | (5,442) | 1,723 | (3,233) | (2,509) | ||||||||
| Inventories | 825 | 121 | 5,413 | (5,907) | ||||||||
| Other current assets and prepaid expenses | (1,208) | (339) | (2,481) | (1,762) | ||||||||
| Other long-term assets | (1,009) | (747) | (2,067) | (3,355) | ||||||||
| Accounts payable | (148) | (1,455) | (6,034) | 1,406 | ||||||||
| Accrued liabilities | 5,450 | 2,257 | 891 | 7,157 | ||||||||
| Extended warranty liabilities | (281) | (233) | (783) | (1,160) | ||||||||
| Other long-term liabilities | - | - | - | (140) | ||||||||
| Deferred revenue | (587) | 749 | (2,985) | 1,656 | ||||||||
| Income tax liability | (93) | - | (93) | (301) | ||||||||
| Net cash provided by (used in) operating activities | 3,803 | 3,977 | (16,956) | (2,217) | ||||||||
| Cash flows from investing activities: | ||||||||||||
| Acquisition of property, equipment and software | (505) | (467) | (1,279) | (991) | ||||||||
| Disposal of property and equipment | 30 | - | 30 | 45 | ||||||||
| Proceeds from sales of marketable investments | 5,648 | - | 5,648 | - | ||||||||
| Proceeds from maturities of marketable investments | 9,050 | 3,250 | 28,050 | 14,700 | ||||||||
| Purchase of marketable investments | (1,649) | (4,383) | (26,060) | (12,687) | ||||||||
| Net cash provided by (used in) investing activities | 12,574 | (1,600) | 6,389 | 1,067 | ||||||||
| Cash flows from financing activities: | ||||||||||||
| Proceeds from exercise of stock options and employee stock purchase plan | 723 | 1,294 | 1,579 | 2,894 | ||||||||
| Proceeds from long-term debt | - | - | 7,167 | - | ||||||||
| Gross proceeds from equity offering | - | - | 28,798 | - | ||||||||
| Offering costs on the equity offering | - | - | (2,303) | - | ||||||||
| Taxes paid related to net share settlement of equity awards | (88) | (81) | (3,428) | (831) | ||||||||
| Payments on finance lease obligations | (2) | (153) | (515) | (649) | ||||||||
| Net cash provided by financing activities | 633 | 1,060 | 31,298 | 1,414 | ||||||||
| Net increase in cash and cash equivalents | 17,010 | 3,437 | 20,731 | 264 | ||||||||
| Cash and cash equivalents at beginning of period | 29,394 | 22,879 | 26,316 | 26,052 | ||||||||
| Cash and cash equivalents at end of period | $ | 46,404 | $ | 26,316 | $ | 47,047 | $ | 26,316 | ||||
| CUTERA, INC. | ||||||||||||||||
| CONSOLIDATED FINANCIAL HIGHLIGHTS | ||||||||||||||||
| (in thousands, except percentage data) | ||||||||||||||||
| (unaudited) | ||||||||||||||||
Three Months Ended | % Change | Twelve Months Ended | % Change | |||||||||||||
December 31, | December 31, | 2020 Vs | December 31, | December 31, | 2020 Vs | |||||||||||
2020 | 2019 | 2019 | 2020 | 2019 | 2019 | |||||||||||
| Revenue By Geography: | ||||||||||||||||
| United States | $ | 21,060 | $ | 31,271 | -33% | $ | 61,202 | $ | 106,243 | -42% | ||||||
| International | 28,883 | 20,524 | +41% | 86,481 | 75,469 | +15% | ||||||||||
| Total Net Revenue | $ | 49,943 | $ | 51,795 | -4% | $ | 147,683 | $ | 181,712 | -19% | ||||||
| International as a percentage of total revenue | 58% | 40% | 59% | 42% | ||||||||||||
| Revenue By Product Category: | ||||||||||||||||
| Systems | ||||||||||||||||
| - North America | $ | 18,426 | $ | 28,526 | -35% | $ | 50,721 | $ | 96,718 | -48% | ||||||
| - Rest of World | 11,719 | 12,246 | -4% | 40,045 | 43,760 | -8% | ||||||||||
| Total Systems | 30,145 | 40,772 | -26% | 90,766 | 140,478 | -35% | ||||||||||
| Consumables | 3,023 | 2,539 | +19% | 9,286 | 9,648 | -4% | ||||||||||
| Skincare | 10,555 | 2,282 | +363% | 25,061 | 8,512 | +194% | ||||||||||
| Total Products | 43,723 | 45,593 | -4% | 125,113 | 158,638 | -21% | ||||||||||
| Service | 6,220 | 6,202 | +0% | 22,570 | 23,074 | -2% | ||||||||||
| Total Net Revenue | $ | 49,943 | $ | 51,795 | -4% | $ | 147,683 | $ | 181,712 | -19% | ||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||
December 31, | December 31, | December 31, | December 31, | |||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
| Pre-tax Stock-Based Compensation Expense: | ||||||||||||||||
| Cost of revenue | $ | 306 | $ | 469 | $ | 1,665 | $ | 1,572 | ||||||||
| Sales and marketing | 767 | 1,430 | 3,385 | 4,510 | ||||||||||||
| Research and development | 325 | 460 | 1,669 | 1,536 | ||||||||||||
| General and administrative | 654 | 469 | 3,390 | 2,214 | ||||||||||||
$ | 2,052 | $ | 2,828 | $ | 10,109 | $ | 9,832 | |||||||||
| 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 December 31, 2020 | Three Months Ended December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||
| GAAP | Depreciation and Amortization | Stock-Based Compensation | Legal - Former CFO Settlement/Lutronic | Taxes and Other Adjustments | Non-GAAP | GAAP | Depreciation and Amortization | Stock-Based Compensation | CRM and ERP Implementation/ write-off | Taxes and Other Adjustments | Non-GAAP | |||||||||||||||||||||||||||||||||||||
| Net revenue | $ | 49,943 | - | - | - | - | $ | 49,943 | $ | 51,795 | - | - | - | - | $ | 51,795 | ||||||||||||||||||||||||||||||||
| Cost of revenue | 21,877 | (174 | ) | (306 | ) | - | 275 | 21,672 | 23,005 | (136 | ) | (469 | ) | - | - | 22,400 | ||||||||||||||||||||||||||||||||
| Gross profit | 28,066 | 174 | 306 | - | (275 | ) | 28,271 | 28,790 | 136 | 469 | - | - | 29,395 | |||||||||||||||||||||||||||||||||||
| Gross margin % | 56 | % | 57 | % | 56 | % | 57 | % | ||||||||||||||||||||||||||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||||||||||||||||||||||||||||
| Sales and marketing | 14,656 | (682 | ) | (767 | ) | - | - | 13,207 | 20,323 | (910 | ) | (1,430 | ) | (124 | ) | - | 17,859 | |||||||||||||||||||||||||||||||
| Research and development | 4,029 | (34 | ) | (325 | ) | - | - | 3,670 | 4,463 | (35 | ) | (460 | ) | - | - | 3,968 | ||||||||||||||||||||||||||||||||
| General and administrative | 7,938 | (27 | ) | (654 | ) | (566 | ) | - | 6,691 | 5,933 | (29 | ) | (469 | ) | 41 | - | 5,476 | |||||||||||||||||||||||||||||||
| Total operating expenses | 26,623 | (743 | ) | (1,746 | ) | (566 | ) | - | 23,568 | 30,719 | (974 | ) | (2,359 | ) | (83 | ) | - | 27,303 | ||||||||||||||||||||||||||||||
| Income (loss) from operations | 1,443 | 917 | 2,052 | 566 | (275 | ) | 4,703 | (1,929 | ) | 1,110 | 2,828 | 83 | - | 2,092 | ||||||||||||||||||||||||||||||||||
| Interest and other expense, net | 7 | - | - | - | - | 7 | (20 | ) | - | - | - | - | (20 | ) | ||||||||||||||||||||||||||||||||||
| Income (loss) before income taxes | 1,450 | 917 | 2,052 | 566 | (275 | ) | 4,710 | (1,949 | ) | 1,110 | 2,828 | 83 | - | 2,072 | ||||||||||||||||||||||||||||||||||
| Provision (benefit) for income taxes | (738 | ) | - | - | - | - | (738 | ) | 139 | - | - | - | (201 | ) | (62 | ) | ||||||||||||||||||||||||||||||||
| Net income (loss) | $ | 2,188 | $ | 917 | $ | 2,052 | $ | 566 | $ | (275 | ) | $ | 5,448 | $ | (2,088 | ) | $ | 1,110 | $ | 2,828 | $ | 83 | $ | 201 | $ | 2,134 | ||||||||||||||||||||||
| Net income (loss) per share: | ||||||||||||||||||||||||||||||||||||||||||||||||
| Basic | $ | 0.12 | $ | 0.31 | $ | (0.15 | ) | $ | 0.15 | |||||||||||||||||||||||||||||||||||||||
| Diluted | $ | 0.12 | $ | 0.31 | $ | (0.15 | ) | $ | 0.14 | |||||||||||||||||||||||||||||||||||||||
| Weighted-average number of shares used in per share calculations: | ||||||||||||||||||||||||||||||||||||||||||||||||
| Basic | 17,653 | 17,653 | 14,261 | 14,261 | ||||||||||||||||||||||||||||||||||||||||||||
| Diluted | 17,840 | 17,840 | 14,261 | 14,904 | ||||||||||||||||||||||||||||||||||||||||||||
| Operating expenses as a % of net revenue | GAAP | Non-GAAP | GAAP | Non-GAAP | ||||||||||||||||||||||||||||||||||||||||||||
| Sales and marketing | 29.2 | % | 26.4 | % | 39.2 | % | 34.5 | % | ||||||||||||||||||||||||||||||||||||||||
| Research and development | 8.1 | % | 7.2 | % | 8.6 | % | 7.7 | % | ||||||||||||||||||||||||||||||||||||||||
| General and administrative | 15.9 | % | 13.4 | % | 11.5 | % | 10.6 | % | ||||||||||||||||||||||||||||||||||||||||
53.3 | % | 47.2 | % | 59.3 | % | 52.7 | % | |||||||||||||||||||||||||||||||||||||||||
| 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) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Twelve Months Ended December 31, 2020 | Twelve Months Ended December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| GAAP | Depreciation and Amortization | Stock-Based Compensation | CRM and ERP Implementation/write-off | Severance (RIF) | Legal -Former CFO Settlement/Lutronic | Taxes and Other Adjustments | Non-GAAP | GAAP | Depreciation and Amortization | Stock-Based Compensation | CRM and ERP Implementation/ write-off | Taxes and Other Adjustments | Non-GAAP | |||||||||||||||||||||||||||||||||||||||||||
| Net revenue | $ | 147,683 | - | - | - | - | $ | 147,683 | $ | 181,712 | $ | - | $ | - | $ | - | $ | - | $ | 181,712 | ||||||||||||||||||||||||||||||||||||
| Cost of revenue | 71,911 | (591 | ) | (1,665 | ) | - | (318 | ) | - | 275 | 69,612 | 83,549 | (522 | ) | (1,572 | ) | - | - | 81,455 | |||||||||||||||||||||||||||||||||||||
| Gross profit | 75,772 | 591 | 1,665 | - | 318 | - | (275 | ) | 78,071 | 98,163 | 522 | 1,572 | - | - | 100,257 | |||||||||||||||||||||||||||||||||||||||||
| Gross margin % | 51 | % | 53 | % | 54 | % | 55 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sales and marketing | 52,766 | (3,136 | ) | (3,384 | ) | - | (274 | ) | - | - | $ | 45,972 | 71,109 | (3,627 | ) | (4,510 | ) | (325 | ) | - | 62,647 | |||||||||||||||||||||||||||||||||||
| Research and development | 14,322 | (149 | ) | (1,670 | ) | - | (130 | ) | - | - | 12,373 | 15,085 | (109 | ) | (1,536 | ) | - | - | 13,440 | |||||||||||||||||||||||||||||||||||||
| General and administrative | 31,512 | (111 | ) | (3,390 | ) | (1,139 | ) | (101 | ) | (1,925 | ) | (324 | ) | 24,522 | 24,033 | (205 | ) | (2,214 | ) | (1,089 | ) | (614 | ) | 19,911 | ||||||||||||||||||||||||||||||||
| Total operating expenses | 98,600 | (3,396 | ) | (8,444 | ) | (1,139 | ) | (505 | ) | (1,925 | ) | (324 | ) | 82,867 | 110,227 | (3,941 | ) | (8,260 | ) | (1,414 | ) | (614 | ) | 95,998 | ||||||||||||||||||||||||||||||||
| Income (loss) from operations | (22,828 | ) | 3,987 | 10,109 | 1,139 | 823 | 1,925 | 49 | (4,796 | ) | (12,064 | ) | 4,463 | 9,832 | 1,414 | 614 | 4,259 | |||||||||||||||||||||||||||||||||||||||
| Interest and other expense, net | (579 | ) | - | - | - | - | - | (579 | ) | (199 | ) | - | - | - | - | (199 | ) | |||||||||||||||||||||||||||||||||||||||
| Income (loss) before income taxes | (23,407 | ) | 3,987 | 10,109 | 1,139 | 823 | 1,925 | 49 | (5,375 | ) | (12,263 | ) | 4,463 | 9,832 | 1,414 | 614 | 4,060 | |||||||||||||||||||||||||||||||||||||||
| Provision (benefit) for income taxes | 470 | - | - | - | - | - | 9 | 479 | 85 | - | - | - | 87 | 172 | ||||||||||||||||||||||||||||||||||||||||||
| Net income (loss) | $ | (23,877 | ) | $ | 3,987 | $ | 10,109 | $ | 1,139 | $ | 823 | $ | 1,925 | $ | 40 | $ | (5,854 | ) | $ | (12,348 | ) | $ | 4,463 | $ | 9,832 | $ | 1,414 | $ | 527 | $ | 3,888 | |||||||||||||||||||||||||
| Net income (loss) per share: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Basic | $ | (1.43 | ) | $ | (0.35 | ) | $ | (0.88 | ) | $ | 0.28 | |||||||||||||||||||||||||||||||||||||||||||||
| Diluted | $ | (1.43 | ) | $ | (0.35 | ) | $ | (0.88 | ) | $ | 0.27 | |||||||||||||||||||||||||||||||||||||||||||||
| Weighted-average number of shares used in per share calculations: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Basic | 16,691 | 16,691 | 14,096 | 14,096 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Diluted | 16,691 | 16,691 | 14,096 | 14,512 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Operating expenses as a % of net revenue | GAAP | Non-GAAP | GAAP | Non-GAAP | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sales and marketing | 35.7 | % | 31.1 | % | 39.1 | % | 34.5 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
| Research and development | 9.6 | % | 8.3 | % | 8.3 | % | 7.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
| General and administrative | 21.3 | % | 16.6 | % | 13.2 | % | 11.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
66.8 | % | 56.1 | % | 60.7 | % | 52.8 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
| CUTERA, INC. | ||||||||
| RECONCILIATION OF LOSS TO ADJUSTED EBITDA | ||||||||
| (in thousands) | ||||||||
| (unaudited) | ||||||||
| Three Months Ended | Twelve Months Ended | |||||||
| December 31, 2020 | ||||||||
| Net income (loss) | $ | 2,188 | $ | (23,877 | ) | |||
| Adjustments: | ||||||||
| Stock-based compensation | 2,052 | 10,109 | ||||||
| Depreciation and amortization | 917 | 3,987 | ||||||
| CRM and ERP implementation costs | - | 1,139 | ||||||
| Severance (RIF) | - | 823 | ||||||
| Legal -Former CFO Settlement/Lutronic | 566 | 1,925 | ||||||
| Other adjustments | (275 | ) | 49 | |||||
| Interest and other expense, net | (7 | ) | 23,407 | |||||
| Provision (benefit) for income taxes | (738 | ) | (23,407 | ) | ||||
| Total adjustments | $ | 2,515 | $ | 18,032 | ||||
| Adjusted EBITDA | $ | 4,703 | $ | (5,845 | ) | |||
View source version on businesswire.com: https://www.businesswire.com/news/home/20210217005757/en/
Contacts:
Anne Werdan
Director, Investor Relations
415-657-5500
awerdan@cutera.com
