Press Release Details

Cutera, Inc. Announces Third Quarter 2021 Financial Results; Raises Full-year Revenue Guidance

11/03/2021

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 third quarter ended September 30, 2021.

Third Quarter 2021 Financial and Operational Highlights

  • Revenue was $57.4 million, an increase of 47% from the prior-year period, driven by strong performance across the business, with strength occurring in capital equipment and recurring revenue.
    • Capital Equipment revenue of $32.2 million increased 33% over the prior-year period.
    • Recurring revenue, defined as the combination of Skincare, Consumable Products, and Service, was $25.2 million, an increase of 68% over the prior-year period:
      • Skincare revenue of $14.8 million increased 117% over the prior-year period;
      • Consumable Product revenue of $3.7 million grew 60% over prior-year period, reflecting the continued recovery of energy-based treatment volumes; and
      • Service revenue of $6.7 million increased 14% over the prior-year period.
  • Gross Margin was 58.2%, compared to 55.6% in the prior-year period, driven by capital equipment and consumable volumes, reduced fixed overhead expenses and the continual progression of our margin expansion efforts;
  • Net loss was $1.4 million, or ($0.08) per fully diluted share, compared to a net loss of $2.3 million, or ($0.13) per fully diluted share, in the prior-year period; and
  • Adjusted EBITDA more than doubled to $5.1 million in the period as compared to $2.4 million in the prior-year period.

“I am pleased with the strong results achieved by our team during the third quarter, as we expand our commercial team, drive improved profitability, and maintain our laser-focus on our vital few initiatives,” commented Dave Mowry, Chief Executive Officer of Cutera, Inc. “We are encouraged by the positive momentum in capital equipment demand and the continuing improvement in global treatment volumes, despite the anticipated seasonality. Looking to the balance of 2021 and into early 2022, we are confident in the strength of our business as we continue onboarding new members of our commercial team and executing on our robust pipeline of capital equipment deals as patient volumes trend above pre-COVID levels.”

2021 Outlook
Given the strength of our results in the third quarter of 2021 and management’s confidence in our fourth quarter outlook, management is raising full-year 2021 revenue guidance to be in the range of $224 million to $228 million, up from our prior expectation of $215 million to $221 million.

Conference Call
The Company’s management will host a conference call to 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, and Rohan Seth, Chief Financial Officer.

To participate in the conference call, dial 1-877-705-6003 (domestic) or + 1-201-493-6725 (international) and refer to the Conference Code: 13723851.

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 Companys 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 basic and 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. 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.

Company management uses these measurements as aids in monitoring the Companys 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 the Company's employees, the Company continues to evaluate its business performance excluding stock-based compensation expenses. The Company records stock-based compensation expense related to grants of options, employee stock purchase plan, and performance and restricted stock. Depending upon the size, timing and the terms of the grants, this expense may vary significantly but will recur in future periods. The Company believes that excluding stock-based compensation better allows for comparisons to its peer companies;

Depreciation and amortization. The Company has excluded depreciation and amortization expense in calculating its non-GAAP operating expenses and net income measures. Depreciation and amortization are non-cash charges to current operations;

Executive and other non-recurring separation costs. We have excluded costs associated with the resignation of our former Executive Officers in calculating our non-GAAP operating expenses and net income measures. We exclude these and other non-recurring employee separation costs because we believe that these items do not reflect future operating expenses;

Customer Relationship Management. We have excluded CRM system costs related to direct and incremental costs incurred in connection with our multi-phase implementation of a new CRM solution and the related technology infrastructure costs. We exclude these costs because we believe that these items do not reflect future operating expenses and will be inconsistent in amounts and frequency making it difficult to contribute to a meaningful evaluation of our operating performance;

Enterprise Resource Planning. We have excluded ERP system costs related to direct and incremental costs incurred in connection with our multi-phase implementation of a new ERP solution and the related technology infrastructure costs. We exclude these costs because we believe that these items do not reflect future operating expenses and will be inconsistent in amounts and frequency making it difficult to contribute to a meaningful evaluation of our operating performance; and

Non-recurring legal and litigation costs . We have excluded costs incurred related to third party litigation and disputes, that are of a non-recurring nature.

The Company believes that excluding all of the items above allows users of its financial statements to better review and assess both current and historical results of operations.

Safe Harbor Statement
Certain statements in this press release, other than purely historical information, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act). These statements include, but are not limited to, Cuteras 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 Companys 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 Companys 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 second quarter ended June 30, 2021, as discussed in this release, is preliminary and unaudited, and subject to adjustment.

 

CUTERA, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

(unaudited)

 

 

 

 

 

September 30,

 

June 30,

 

December 31,

 

2021

 

2021

 

2020

Assets
Current assets:
Cash and cash equivalents

$

162,486

 

$

169,200

 

$

47,047

 

Accounts receivable, net

 

30,760

 

 

25,903

 

 

21,962

 

Inventories

 

35,493

 

 

34,591

 

 

28,508

 

Other current assets and prepaid expenses

 

13,350

 

 

8,856

 

 

8,779

 

Total current assets

 

242,089

 

 

238,550

 

 

106,296

 

 
Property and equipment, net

 

2,205

 

 

2,148

 

 

2,299

 

Deferred tax asset

 

589

 

 

592

 

 

643

 

Goodwill

 

1,339

 

 

1,339

 

 

1,339

 

Operating lease right-of-use assets

 

15,269

 

 

15,919

 

 

17,076

 

Other long-term assets

 

6,955

 

 

5,615

 

 

5,080

 

Total assets

$

268,446

 

$

264,163

 

$

132,733

 

 
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable

$

7,259

 

$

6,210

 

$

6,684

 

Accrued liabilities

 

44,295

 

 

41,995

 

 

32,295

 

Operating leases liabilities

 

2,394

 

 

2,422

 

 

2,260

 

PPP loan payable

 

-

 

 

-

 

 

3,630

 

Deferred revenue

 

9,188

 

 

9,695

 

 

9,489

 

Total current liabilities

 

63,136

 

 

60,322

 

 

54,358

 

 
Deferred revenue, net of current portion

 

1,492

 

 

1,708

 

 

1,748

 

PPP loan payable, net of current portion

 

-

 

 

-

 

 

3,555

 

Operating lease liabilities, net of current portion

 

14,117

 

 

14,705

 

 

15,950

 

Convertible notes, net of unamortized debt issuance costs

 

134,025

 

 

133,800

 

 

-

 

Other long-term liabilities

 

333

 

 

285

 

 

242

 

Total liabilities

 

213,103

 

 

210,820

 

 

75,853

 

 
Stockholders’ equity:
Common stock

 

18

 

 

18

 

 

18

 

Additional paid-in capital

 

109,563

 

 

106,173

 

 

117,097

 

Accumulated deficit

 

(54,238

)

 

(52,848

)

 

(60,235

)

Total stockholders' equity

 

55,343

 

 

53,343

 

 

56,880

 

Total liabilities and stockholders' equity

$

268,446

 

$

264,163

 

$

132,733

 

 

CUTERA, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

September 30,

 

September 30,

 

September 30,

 

September 30,

 

 

2021

 

2020

 

2021

 

2020

 
Products $

50,694

 

$

33,254

 

$

146,056

 

$

81,390

 

Service

6,690

 

5,878

 

19,585

 

16,350

 

Total net revenue

57,384

 

39,132

 

165,641

 

97,740

 

 
Products

20,259

 

14,017

 

59,483

 

40,326

 

Service

3,700

 

3,369

 

11,234

 

9,708

 

Total cost of revenue

23,959

 

17,386

 

70,717

 

50,034

 

Gross margin

33,425

 

21,746

 

94,924

 

47,706

 

Gross margin %

58.2

%

55.6

%

57.3

%

48.8

%

 
Operating expenses:
Sales and marketing

19,190

 

12,286

 

52,668

 

38,109

 

Research and development

5,802

 

3,432

 

14,764

 

10,294

 

General and administrative

7,807

 

7,239

 

23,633

 

23,575

 

Total operating expenses

32,799

 

22,957

 

91,065

 

71,978

 

 
Income (loss) from operations

626

 

(1,211

)

3,859

 

(24,272

)

Interest and other income (expense), net
Amortization of debt issuance costs

(225

)

-

 

(492

)

-

 

Interest on Convertible notes

(768

)

-

 

(1,737

)

-

 

Gain on extinguishment of PPP loan

-

 

-

 

7,185

 

-

 

Other expense, net

(561

)

(382

)

(1,976

)

(586

)

Income (loss) before income taxes

(928

)

(1,593

)

6,839

 

(24,858

)

Income tax expense

462

 

664

 

842

 

1,207

 

Net income (loss) $

(1,390

)

$

(2,257

)

$

5,997

 

$

(26,065

)

 
Net Income (loss) per share:
Basic $

(0.08

)

$

(0.13

)

$

0.34

 

$

(1.59

)

Diluted $

(0.08

)

$

(0.13

)

$

0.33

 

$

(1.59

)

 
Weighted-average number of shares used in per share calculations:
Basic

17,945

 

17,603

 

17,860

 

16,368

 

Diluted

17,945

 

17,603

 

18,327

 

16,368

 

 

CUTERA, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

 

 

 

 

 

 

 

 

September 30,

 

September 30,

 

September 30,

 

September 30,

 

 

2021

 

2020

 

2021

 

2020

Cash flows from operating activities:
Net income (loss)

$

(1,390

)

$

(2,257

)

$

5,997

 

$

(26,065

)

Adjustments to reconcile net income (loss) to net cash used in operating activities:
Stock-based compensation

 

3,742

 

 

1,982

 

 

8,507

 

 

8,057

 

Depreciation and amortization

 

307

 

 

341

 

 

1,014

 

 

1,056

 

Amortization of contract acquisition costs

 

427

 

 

625

 

 

1,430

 

 

2,017

 

Amortization of debt issuance costs

 

225

 

 

-

 

 

492

 

 

-

 

Impairment of capitalized cloud computing costs

 

-

 

 

-

 

 

182

 

 

805

 

Change in deferred tax asset

 

3

 

 

(81

)

 

54

 

 

(77

)

Provision for credit losses

 

(391

)

 

54

 

 

101

 

 

1,750

 

Loss on sale of property and equipment

 

37

 

 

-

 

 

(45

)

 

-

 

PPP loan forgiveness

 

-

 

 

-

 

 

(7,185

)

 

-

 

Change in right-of-use asset

 

1,077

 

 

249

 

 

1,681

 

 

250

 

Other

 

-

 

 

129

 

 

-

 

 

327

 

Changes in assets and liabilities:
Accounts receivable

 

(4,466

)

 

(5,064

)

 

(8,899

)

 

2,209

 

Inventories

 

(968

)

 

1,907

 

 

(6,926

)

 

4,588

 

Other current assets and prepaid expenses

 

(4,494

)

 

(350

)

 

(4,571

)

 

(1,273

)

Other long-term assets

 

(1,767

)

 

(1,182

)

 

(3,487

)

 

(1,701

)

Accounts payable

 

1,049

 

 

(4,882

)

 

575

 

 

(5,886

)

Accrued liabilities

 

2,129

 

 

5,033

 

 

11,782

 

 

(5,061

)

Operating lease liabilities

 

(1,043

)

 

-

 

 

(1,573

)

 

-

 

Deferred revenue

 

(723

)

 

45

 

 

(557

)

 

(2,398

)

Net cash provided by (used in) operating activities

 

(6,246

)

 

(3,451

)

 

(1,428

)

 

(21,402

)

 
Cash flows from investing activities:
Acquisition of property, equipment and software

 

(12

)

 

(339

)

 

(382

)

 

(774

)

Disposal of property and equipment

 

-

 

 

-

 

 

71

 

 

-

 

Proceeds from maturities of marketable investments

 

-

 

 

8,100

 

 

-

 

 

19,000

 

Purchase of marketable investments

 

-

 

 

(8,244

)

 

-

 

 

(24,411

)

Net cash used in investing activities

 

(12

)

 

(483

)

 

(311

)

 

(6,185

)

 
Cash flows from financing activities:
Proceeds from exercise of stock options and employee stock purchase plan

 

158

 

 

8

 

 

2,056

 

 

856

 

Proceeds from PPP loan

 

-

 

 

18

 

 

7,167

 

Proceeds from equity offering

 

-

 

 

(1

)

 

-

 

 

28,798

 

Offering costs on the equity offering

 

-

 

 

-

 

 

-

 

 

(2,303

)

Purchase of capped call

 

-

 

 

-

 

 

(16,134

)

 

-

 

Proceeds from issuance of Convertible notes

 

-

 

 

-

 

 

138,250

 

 

-

 

Payment of issuance costs of Convertible notes

 

-

 

 

-

 

 

(4,717

)

 

-

 

Taxes paid related to net share settlement of equity awards

 

(511

)

 

(223

)

 

(1,963

)

 

(3,340

)

Payments on finance lease obligations

 

(103

)

 

(133

)

 

(314

)

 

(513

)

Net cash provided by (used in) financing activities

 

(456

)

 

(331

)

 

117,178

 

 

30,665

 

 
Net increase / (decrease) in cash and cash equivalents

 

(6,714

)

 

(4,265

)

 

115,439

 

 

3,078

 

Cash and cash equivalents at beginning of period

 

169,200

 

 

33,659

 

 

47,047

 

 

26,316

 

Cash and cash equivalents at end of period

$

162,486

 

$

29,394

 

$

162,486

 

$

29,394

 

 

CUTERA, INC.

CONSOLIDATED FINANCIAL HIGHLIGHTS

(in thousands, except percentage data)

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

% Change

 

Nine Months Ended

 

% Change

 

 

September 30,

 

September 30,

 

2021 Vs

 

September 30,

 

September 30,

 

2021 Vs

 

 

2021

 

2020

 

2020

 

2021

 

2020

 

2020

Revenue By Geography:
North America $

26,710

 

$

18,488

 

+44.5%

$

75,794

 

$

45,483

 

+66.6%

Japan

19,335

 

11,497

 

+68.2%

53,311

 

27,176

 

+96.2%

Rest of World

11,339

 

9,147

 

+24.0%

36,536

 

25,081

 

+45.7%

Total Net Revenue $

57,384

 

$

39,132

 

+46.6%

$

165,641

 

$

97,740

 

+69.5%

International as a percentage of total revenue

53.5

%

52.8

%

 

54.2

%

53.5

%

 

 

 

Revenue By Product Category:

 

 

Systems

 

 

- North America $

20,680

 

$

13,700

 

+50.9%

$

57,353

 

$

32,296

 

+77.6%

- Rest of World (including Japan)

11,511

 

10,421

 

+10.5%

38,726

 

28,325

 

+36.7%

Total Systems

32,191

 

24,121

 

+33.5%

96,079

 

60,621

 

+58.5%

Consumables

3,684

 

2,304

 

+59.9%

11,040

 

6,263

 

+76.3%

Skincare

14,819

 

6,829

 

+117.0%

38,937

 

14,506

 

+168.4%

Total Products

50,694

 

33,254

 

+52.4%

146,056

 

81,390

 

+79.5%

 

 

Service

6,690

 

5,878

 

+13.8%

19,585

 

16,350

 

+19.8%

Total Net Revenue $

57,384

 

$

39,132

 

+46.6%

$

165,641

 

$

97,740

 

+69.5%

 
 
 

Three Months Ended

 

 

 

Nine Months Ended

September 30,

 

September 30,

 

 

 

September 30,

 

September 30,

2021

 

2020

 

 

 

2021

 

2020

Pre-tax Stock-Based Compensation Expense:
Cost of revenue $

330

 

$

326

 

$

908

 

$

1,359

 

Sales and marketing

711

 

648

 

1,954

 

2,617

 

Research and development

1,020

 

254

 

1,628

 

1,344

 

General and administrative

1,681

 

754

 

4,017

 

2,736

 

$

3,742

 

$

1,982

 

$

8,507

 

$

8,057

 

 

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 September 30, 2021

 

Three Months Ended September 30, 2020

 

GAAP

 

Depreciation
and
Amortization

 

Stock-Based
Compensation

 

ERP
Implementation cost

 

Severance (RIF)

 

Legal - Lutronic

 

Other Adjustments

 

Non-GAAP

 

GAAP

 

Depreciation
and
Amortization

 

Stock-Based
Compensation

 

CRM and ERP
Implementation/
write-off

 

Severance (RIF)

 

Legal -Former CFO Settlement/Lutronic

 

Other Adjustments

 

Non-GAAP

 
Net revenue

$

57,384

 

 

-

 

 

-

 

 

-

 

 

-

 

-

 

 

-

 

$

57,384

 

$

39,132

 

 

-

 

 

-

 

 

-

 

-

 

 

-

 

 

-

 

$

39,132

 

Cost of revenue

 

23,959

 

 

(132

)

 

(330

)

 

-

 

 

-

 

-

 

 

445

 

 

23,942

 

 

17,387

 

 

(140

)

 

(326

)

 

-

 

(186

)

 

-

 

 

-

 

 

16,735

 

Gross margin

 

33,425

 

 

132

 

 

330

 

 

-

 

 

-

 

-

 

 

(445

)

 

33,442

 

 

21,746

 

 

140

 

 

326

 

 

-

 

186

 

 

-

 

 

-

 

 

22,398

 

Gross margin %

 

58.2

%

 

58.3

%

 

55.6

%

 

57.2

%

 
Operating expenses:
Sales and marketing

 

19,190

 

 

(549

)

 

(711

)

 

-

 

 

-

 

-

 

 

-

 

 

17,930

 

 

12,286

 

 

(756

)

 

(648

)

 

-

 

(25

)

 

-

 

 

-

 

 

10,857

 

Research and development

 

5,802

 

 

(49

)

 

(1,020

)

 

-

 

 

-

 

-

 

 

-

 

 

4,733

 

 

3,432

 

 

(39

)

 

(254

)

 

-

 

(67

)

 

-

 

 

-

 

 

3,072

 

General and administrative

 

7,807

 

 

(8

)

 

(1,681

)

 

(128

)

 

-

 

(288

)

 

-

 

 

5,702

 

 

7,239

 

 

(28

)

 

(754

)

 

-

 

(27

)

 

(341

)

 

-

 

 

6,089

 

Total operating expenses

 

32,799

 

 

(606

)

 

(3,412

)

 

(128

)

 

-

 

(288

)

 

-

 

 

28,365

 

 

22,957

 

 

(823

)

 

(1,656

)

 

-

 

(119

)

 

(341

)

 

-

 

 

20,018

 

Income (loss) from operations

 

626

 

 

738

 

 

3,742

 

 

128

 

 

-

 

288

 

 

(445

)

 

5,077

 

 

(1,211

)

 

963

 

 

1,982

 

 

-

 

305

 

 

341

 

 

-

 

 

2,380

 

Interest and other income (expense), net
Amortization of debt issuance costs

 

(225

)

 

-

 

 

-

 

 

-

 

 

-

 

-

 

 

-

 

 

(225

)

 

-

 

 

-

 

 

-

 

 

-

 

-

 

 

-

 

 

-

 

 

-

 

Interest on Convertible notes

 

(768

)

 

-

 

 

-

 

 

-

 

 

-

 

-

 

 

-

 

 

(768

)

 

-

 

 

-

 

 

-

 

 

-

 

-

 

 

-

 

 

-

 

 

-

 

Gain on extinguishment of PPP loan

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

-

 

 

-

 

 

-

 

 

-

 

Other expense

 

(561

)

 

-

 

 

-

 

 

-

 

 

-

 

-

 

 

-

 

 

(561

)

 

(382

)

 

-

 

 

-

 

 

-

 

-

 

 

-

 

 

-

 

 

(382

)

Total interest and other income (expense), net

 

(1,554

)

 

-

 

 

-

 

 

-

 

 

-

 

-

 

 

-

 

 

(1,554

)

 

(382

)

 

-

 

 

-

 

 

-

 

-

 

 

-

 

 

-

 

 

(382

)

Income (loss) before income taxes

 

(928

)

 

738

 

 

3,742

 

 

128

 

 

-

 

288

 

 

(445

)

 

3,523

 

 

(1,593

)

 

963

 

 

1,982

 

 

-

 

305

 

 

341

 

 

-

 

 

1,998

 

Provision for income taxes

 

462

 

 

-

 

 

-

 

 

-

 

 

-

 

-

 

 

-

 

 

462

 

 

664

 

 

-

 

 

-

 

 

-

 

-

 

 

-

 

 

2

 

 

666

 

Net income (loss)

$

(1,390

)

$

738

 

$

3,742

 

$

128

 

$

-

$

288

 

$

(445

)

$

3,061

 

$

(2,257

)

$

963

 

$

1,982

 

$

-

$

305

 

$

341

 

$

(2

)

$

1,332

 

 
Net income (loss) per share:
Basic

$

(0.08

)

$

0.17

 

$

(0.13

)

$

0.08

 

 
Weighted-average number of shares used in per share calculations:
Basic

 

17,945

 

 

17,945

 

 

17,603

 

 

17,603

 

 
 
Operating expenses as a % of net revenue

GAAP

Non-GAAP

GAAP

Non-GAAP

Sales and marketing

 

33.4

%

 

31.2

%

 

31.4

%

 

27.7

%

Research and development

 

10.1

%

 

8.2

%

 

8.8

%

 

7.9

%

General and administrative

 

13.6

%

 

9.9

%

 

18.5

%

 

15.6

%

 

57.2

%

 

49.4

%

 

58.7

%

 

51.2

%

 
 
 

CUTERA, INC.

RECONCILIATION OF GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

TO NON-GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

(unaudited)

 

Nine Months Ended September 30, 2021

 

Nine Months Ended September 30, 2020

GAAP

 

Depreciation
and
Amortization

 

Stock-Based
Compensation

 

CRM and ERP
Implementation cost

 

Severance (RIF)

 

Legal - Lutronic

 

Other Adjustments

 

Non-GAAP

 

GAAP

 

Depreciation
and
Amortization

 

Stock-Based
Compensation

 

CRM and ERP
Implementation/
write-off

 

Severance (RIF)

 

Legal -Former CFO Settlement/Lutronic

 

Other Adjustments

 

Non-GAAP

 
Net revenue

$

165,641

 

-

 

-

 

-

 

-

 

$

165,641

 

$

97,740

 

-

 

-

 

-

 

-

 

-

 

-

 

$

97,740

 

Cost of revenue

 

70,717

 

(432

)

(908

)

-

 

-

 

-

 

791

 

 

70,168

 

 

50,034

 

(417

)

(1,359

)

-

 

(318

)

-

 

-

 

 

47,940

 

Gross margin

 

94,924

 

432

 

908

 

-

 

-

 

-

 

(791

)

 

95,473

 

 

47,706

 

417

 

1,359

 

-

 

318

 

-

 

-

 

 

49,800

 

Gross margin %

 

57.3

%

 

57.6

%

 

48.8

%

 

51.0

%

 
Operating expenses:
Sales and marketing

 

52,668

 

(1,827

)

(1,954

)

(182

)

(638

)

-

 

-

 

 

48,067

 

 

38,109

 

(2,454

)

(2,617

)

-

 

(274

)

-

 

-

 

 

32,764

 

Research and development

 

14,764

 

(133

)

(1,628

)

-

 

-

 

-

 

-

 

 

13,003

 

 

10,294

 

(115

)

(1,344

)

-

 

(130

)

-

 

-

 

 

8,705

 

General and administrative

 

23,633

 

(56

)

(4,017

)

(605

)

-

 

(979

)

-

 

 

17,976

 

 

23,575

 

(84

)

(2,736

)

(1,139

)

(101

)

(1,359

)

(324

)

 

17,832

 

Total operating expenses

 

91,065

 

(2,016

)

(7,599

)

(787

)

(638

)

(979

)

-

 

 

79,046

 

 

71,978

 

(2,653

)

(6,698

)

(1,139

)

(505

)

(1,359

)

(324

)

 

59,300

 

Income (loss) from operations

 

3,859

 

2,448

 

8,507

 

787

 

638

 

979

 

(791

)

 

16,427

 

 

(24,272

)

3,070

 

8,057

 

1,139

 

823

 

1,359

 

324

 

 

(9,500

)

Interest and other income (expense), net
Amortization of debt issuance costs

 

(492

)

-

 

-

 

-

 

-

 

-

 

-

 

 

(492

)

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

 

-

 

Interest on Convertible notes

 

(1,737

)

-

 

-

 

-

 

-

 

-

 

-

 

 

(1,737

)

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

 

-

 

Gain on extinguishment of PPP loan

 

7,185

 

-

 

-

 

-

 

-

 

-

 

(7,185

)

 

-

 

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

 

-

 

Other expense

 

(1,976

)

-

 

-

 

-

 

-

 

-

 

-

 

 

(1,976

)

 

(586

)

-

 

-

 

-

 

-

 

-

 

-

 

 

(586

)

Total interest and other income (expense), net

 

2,980

 

-

 

-

 

-

 

-

 

-

 

(7,185

)

 

(4,205

)

 

(586

)

-

 

-

 

-

 

-

 

-

 

-

 

 

(586

)

Income (loss) before income taxes

 

6,839

 

2,448

 

8,507

 

787

 

638

 

979

 

(7,976

)

 

12,222

 

 

(24,858

)

3,070

 

8,057

 

1,139

 

823

 

1,359

 

324

 

 

(10,086

)

Provision for income taxes

 

842

 

-

 

-

 

-

 

-

 

-

 

-

 

 

842

 

 

1,207

 

-

 

-

 

-

 

-

 

-

 

9

 

 

1,216

 

Net income (loss)

$

5,997

 

2,448

 

8,507

 

787

 

638

 

979

 

(7,976

)

$

11,380

 

$

(26,065

)

3,070

 

8,057

 

1,139

 

823

 

1,359

 

315

 

$

(11,302

)

 
Net income (loss) per share:
Basic

$

0.34

 

$

0.64

 

$

(1.59

)

$

(0.69

)

 
Weighted-average number of shares used in per share calculations:
Basic

 

17,860

 

 

17,860

 

 

16,368

 

 

16,368

 

 
 
Operating expenses as a % of net revenue

GAAP

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP

 

GAAP

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP

Sales and marketing

 

31.8

%

 

29.0

%

 

39.0

%

 

33.5

%

Research and development

 

8.9

%

 

7.9

%

 

10.5

%

 

8.9

%

General and administrative

 

14.3

%

 

10.9

%

 

24.1

%

 

18.2

%

 

55.0

%

 

47.7

%

 

73.6

%

 

60.7

%

 
 
 

CUTERA, INC.

RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA

(in thousands)

(unaudited)

 

 

 

 

 

 

 

Three Months
Ended

 

Nine Months
Ended

 

 

September 30, 2021

 
Net income (loss)

$

(1,390

)

$

5,997

 

Adjustments:
Stock-based compensation

 

3,742

 

 

8,507

 

Depreciation and amortization

 

738

 

 

2,448

 

ERP implementation Cost

 

128

 

 

787

 

Severance (RIF)

 

-

 

 

638

 

Legal -Lutronic

 

288

 

 

979

 

Other adjustments

 

(445

)

 

(791

)

Gain on extinguishment of PPP loan

 

-

 

 

(7,185

)

Interest and other expense, net

 

1,554

 

 

4,205

 

Provision for income taxes

 

462

 

 

842

 

Total adjustments

 

6,467

 

 

10,430

 

Adjusted EBITDA

$

5,077

 

$

16,427

 

 

Cutera, Inc.
Anne Werdan
Director, Corporate Communications
415-657-5500
awerdan@cutera.com

Source: Cutera, Inc.