Hydrafacial Results Presentation Deck slide image

Hydrafacial Results Presentation Deck

Reconciliation of Gross Profit to Adjusted Gross Profit and Adjusted Gross Margin ($mm) Net sales Less: cost of sales Gross profit Gross margin RECONCILIATION OF NON-GAAP MEASURES Adjusted to exclude the following: Stock-based compensation expense Depreciation and amortization expense Adjusted gross profit Adjusted gross margin Three months ended March 31, 2022 $75.4 23.5 $51.9 68.9% 0.2 2.7 $54.8 72.7% 2021 $47.5 15.8 $31.7 66.8% 2.6 $34.3 72.2% Reconciliation of Net Income (Loss) to Adjusted EBITDA and Adjusted EBITDA Margin Three months ended March 31, 2022 $75.4 32.5 ($mm) Net sales Net income (loss) Adjusted to exclude the following: Change in fair value of warrant liability Amortization expense Stock-based compensation expense Other expense (income) Management fees¹ Transaction related costs² Other non-recurring and one-time fees³ Aggregate adjustment for income taxes Adjusted net income (loss) Depreciation expense Interest expense Income tax benefit (expense) Foreign currency (gain) loss, net Remaining benefit for income taxes Adjusted EBITDA Adjusted EBITDA margin (52.1) 3.7 7.0 0.9 1.0 2.0 (3.6) ($8.5) 1.4 3.4 (0.4) 6.2 $2.2 2.9% 2021 $47.5 (3.3) 2.9 0.0 0.0 0.1 0.7 0.1 (0.8) ($0.1) 0.7 5.7 0.3 0.5 $7.0 14.8% 1 Represents quarterly management fees paid to the former majority shareholder of HydraFacial based on a pre-determined formula. Following the Business Combination, these fees are no longer paid 2 For the three months ended March 31, 2022, such amounts primarily represent direct costs incurred in relation to potential acquisitions. For the three moths ended March 31, 2021, such amounts represent direct costs incurred with the Business Combination and to prepare HydraFacial to be marketed for sale by HydraFacial's shareholders in previous periods. These costs do not have a continuing impact 3 For the three months ended March 31, 2022, such costs represent one-time personnel costs related to executive recruiting, executive severance, and a CEO sign-on bonus. Such costs for the three months ended March 31, 2021 primarily represent personnel costs associated with restructuring HydraFacial's sales force and costs associated with a former warehouse and assembly facility during the transition period, offset by a legal settlement received in favor of HydraFacial 22
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