Cutera, Inc. Announces Fourth Quarter and Full-Year 2020 Financial Results

Feb. 17, 2021 21:01 UTC

 

 
 

BRISBANE, Calif.--(BUSINESS WIRE)-- 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

)

 

Contacts

Cutera, Inc.
Anne Werdan
Director, Investor Relations
415-657-5500
awerdan@cutera.com

 
 

Source: Cutera, Inc.

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