Cutera, Inc. Announces Third Quarter 2020 Financial Results

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 third quarter ended September 30, 2020.

Third Quarter 2020 Financial and Operational Highlights

  • Revenue was $39.1 million, a 15% decrease from the prior-year period, as COVID-19 disruptions led to a year-over-year decline in capital equipment deals as well as overall energy-based aesthetic procedures during the quarter, compared to a 45% year-on-year decline in 2Q20.
    • Capital Equipment revenue of $24.1 million decline of 31% over prior-year period, compared to a 59% decline in 2Q20.
    • Recurring revenue grew $3.9 million or 35% over prior-year period, compared to 6% in 2Q20, driven primarily by Skin Care revenue growth of 140% over third quarter 2019.
  • Gross Margin was 56%, compared to 57% in the prior-year period, driven by lower production levels and substantially lower overhead absorption during the quarter, offset by reductions in manufacturing overhead, increased manufacturing efficiencies and continued pricing discipline.
  • Operating Expenses were $23.0 million, down $5.7 million or 20% from prior year period, delivering improved leverage in the period.
  • Net loss was $2.3 million, or $0.13 per fully diluted share, as compared to a net loss of $2.6 million, or $0.19 per fully diluted share, in the prior-year period.

“I am pleased with our third quarter financial performance, with faster-than-expected sequential improvement in capital equipment sales and exceptionally strong recurring revenue growth of 35% year-over-year,” commented Dave Mowry, Chief Executive Officer of Cutera, Inc. “Moreover, I am very proud of our team’s continued expense discipline, which led to increased profitability in the period and allowed us to achieve positive cash flow on a non-GAAP basis a quarter earlier than expected. While we continue to anticipate COVID-related headwinds to capital equipment sales in the fourth quarter, our year-to-date operational focus and outlook for sequential growth in both equipment sales and procedure volumes will provide a pathway to stronger results in the near-term and a solid foundation going into fiscal year 2021 and beyond.”

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) that same day. 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: 13711852.

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, 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. The Company has not provided a reconciliation of non-GAAP guidance measures to the corresponding GAAP measures on a forward-looking basis due to the potential significant variability, limited visibility, unpredictability, or unique non-recurring nature of the items. 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, customer relationship management (“CRM”) and enterprise resource planning (“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 costs related to Reduction–in-Force (“RIF”) 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 third quarter ended September 30, 2020, 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,
         

2020

   

2020

   

2019

Assets                    
Current assets:                  
  Cash and cash equivalents   $

29,394

  $

33,659

  $

26,316

  Marketable investments    

13,046

   

12,894

   

7,605

  Accounts receivable, net    

17,597

   

13,826

   

21,556

  Inventories    

29,333

   

31,240

   

33,921

  Other current assets and prepaid expenses    

6,892

   

5,313

   

5,648

    Total current assets    

96,262

   

96,932

   

95,046

                       
Property and equipment, net    

2,391

   

2,417

   

2,817

Deferred tax asset    

500

   

419

   

423

Goodwill    

1,339

   

1,339

   

1,339

Operating lease right-of-use assets    

17,645

   

7,577

   

7,702

Other long-term assets    

5,290

   

4,733

   

6,411

    Total assets   $

123,427

  $

113,417

  $

113,738

                       
Liabilities and Stockholders' Equity                  
Current liabilities:                  
  Accounts payable   $

6,799

  $

11,681

  $

12,685

  Accrued liabilities    

25,644

   

20,423

   

30,307

  Operating leases liabilities    

1,608

   

1,526

   

2,800

  Extended warranty liabilities    

1,497

   

1,660

   

1,999

  Deferred revenue    

9,580

   

9,345

   

10,831

    Total current liabilities    

45,128

   

44,635

   

58,622

                       
Deferred revenue, net of current portion    

2,244

   

2,434

   

3,391

Income tax liability    

93

   

93

   

93

PPP Loan payable    

7,167

   

7,149

   

-

Operating lease liabilities, net of current portion    

16,497

   

6,262

   

5,112

Other long-term liabilities    

292

   

345

   

578

    Total liabilities    

71,421

   

60,918

   

67,796

                       
Stockholders’ equity:                  
  Common stock    

18

   

18

   

14

  Additional paid-in capital    

114,410

   

112,644

   

82,346

  Accumulated deficit    

(62,423)

   

(60,166)

   

(36,358)

  Accumulated other comprehensive loss    

1

   

3

   

(60)

    Total stockholders' equity    

52,006

   

52,499

   

45,942

    Total liabilities and stockholders' equity   $

123,427

  $

113,417

  $

113,738

                       
                       
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,
     

2020

 

2019

 

2020

 

2019

                           
Products $

33,254

   

40,315

   

81,390

  $

113,045

Service    

5,878

   

5,802

   

16,350

   

16,872

Total net revenue  

39,132

   

46,117

   

97,740

   

129,917

                           
Products  

14,018

   

16,343

   

40,326

   

50,278

Service    

3,369

   

3,541

   

9,708

   

10,266

Total cost of revenue  

17,387

   

19,884

   

50,034

   

60,544

    Gross profit  

21,745

   

26,233

   

47,706

   

69,373

    Gross margin %  

56%

   

57%

   

49%

   

53%

                           
Operating expenses:                      
  Sales and marketing  

12,286

   

17,691

   

38,109

   

50,786

  Research and development  

3,432

   

3,643

   

10,294

   

10,622

  General and administrative  

7,239

   

7,308

   

23,575

   

18,100

    Total operating expenses  

22,957

   

28,642

   

71,978

   

79,508

Loss from operations  

(1,211)

   

(2,409)

   

(24,272)

   

(10,135)

Interest and other expense, net  

(382)

   

(146)

   

(586)

   

(180)

Loss before income taxes  

(1,593)

   

(2,555)

   

(24,858)

   

(10,315)

Income tax expense (benefit)  

664

   

73

   

1,207

   

(55)

Net loss $

(2,257)

  $

(2,628)

  $

(26,065)

  $

(10,260)

                           
Net loss per share:                      
  Basic $

(0.13)

  $

(0.19)

  $

(1.59)

  $

(0.73)

  Diluted $

(0.13)

  $

(0.19)

  $

(1.59)

  $

(0.73)

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

17,603

   

14,182

   

16,368

   

14,095

  Diluted  

17,603

   

14,182

   

16,368

   

14,095

                           
CUTERA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(in thousands, except percentage data)
(unaudited)
                     
        Three Months Ended   % Change   Nine Months Ended   % Change
        September 30,   September 30,   2019 Vs   September 30,   September 30,   2020 Vs
       

2020

 

2019

 

2018

 

2020

 

2019

 

2019

Revenue By Geography:                                
    United States   $

15,442

  $

26,425

 

-42%

  $

40,142

  $

74,972

 

-46%

    International    

23,690

   

19,692

  +20%    

57,598

   

54,945

  +5%
    Total Net Revenue   $

39,132

  $

46,117

 

-15%

  $

97,740

  $

129,917

 

-25%

    International as a percentage of total revenue    

61%

   

43%

       

59%

   

42%

   
                                     
Revenue By Product Category:                                
  Systems                                
    - North America   $

13,700

  $

24,121

 

-43%

  $

32,296

  $

68,192

 

-53%

    - Rest of World    

10,421

   

10,837

 

-4%

   

28,325

   

31,514

 

-10%

    Total Systems    

24,121

   

34,958

 

-31%

   

60,621

   

99,706

 

-39%

  Consumables    

2,305

   

2,510

 

-8%

   

6,263

   

7,109

 

-12%

  Skincare    

6,828

   

2,847

  +140%    

14,506

   

6,230

  +133%
    Total Products    

33,254

   

40,315

 

-18%

   

81,390

   

113,045

 

-28%

                                     
  Service    

5,878

   

5,802

  +1%    

16,350

   

16,872

 

-3%

    Total Net Revenue   $

39,132

  $

46,117

 

-15%

  $

97,740

  $

129,917

 

-25%

                                     
                                     
                                     
        Three Months Ended       Nine Months Ended    
        September 30,   September 30,       September 30,   September 30,    
       

2020

 

2019

     

2020

 

2019

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

326

  $

430

      $

1,359

  $

1103

   
    Sales and marketing    

648

   

1,365

       

2,617

   

3080

   
    Research and development    

254

   

443

       

1,344

   

1076

   
    General and administrative    

754

   

940

       

2,736

   

1745

   
        $

1,982

  $

3,178

      $

8,057

  $

7,004

   
                                     
                                     
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,
       

2020

 

2019

   

2020

   

2019

Cash flows from operating activities:                            
Net loss   $

(2,257)

  $

(2,628)

    $

(26,065)

    $

(10,260)

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

1,982

   

3,178

     

8,057

     

7,004

  Depreciation of tangible assets    

341

   

369

     

1,056

     

1,184

  Amortization of contract acquisition costs    

625

   

757

     

2,017

     

2,169

  Impairment of intangible assets    

-

   

-

     

805

     

-

  Change in deferred tax asset    

(81)

   

(1)

     

(77)

     

(2)

  Provision for doubtful accounts receivable    

54

   

666

     

1,750

     

647

  Change in right-of-use asset/liability    

249

           

250

     

-

  Other    

129

   

(96)

     

327

     

55

Changes in assets and liabilities:                            
  Accounts receivable    

(5,064)

   

1,031

     

2,209

     

(4,232)

  Inventories    

1,907

   

(7,153)

     

4,588

     

(6,028)

  Other current assets and prepaid expenses    

(350)

   

(809)

     

(1,273)

     

(1,423)

  Other long-term assets    

(1,182)

   

(856)

     

(1,701)

     

(2,608)

  Accounts payable    

(4,882)

   

2,699

     

(5,886)

     

2,861

  Accrued liabilities    

5,196

   

1,121

     

(4,559)

     

4,900

  Extended warranty liabilities    

(163)

   

(167)

     

(502)

     

(927)

  Other long-term liabilities    

-

   

-

     

-

     

(140)

  Deferred revenue    

45

   

(386)

     

(2,398)

     

907

  Income tax liability    

(0)

   

-

     

-

     

(301)

    Net cash used in operating activities    

(3,451)

   

(2,275)

     

(21,402)

     

(6,194)

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

(339)

   

(208)

     

(774)

     

(524)

Disposal of property and equipment    

-

   

25

     

-

     

45

Proceeds from maturities of marketable investments    

8,100

   

1,850

     

19,000

     

11,450

Purchase of marketable investments    

(8,244)

   

(4,284)

     

(24,411)

     

(8,304)

    Net cash provided by (used in) investing activities    

(483)

   

(2,617)

     

(6,185)

     

2,667

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

8

   

437

     

856

     

1,600

Proceeds from long-term debt    

18

   

-

     

7,167

     

-

Gross proceeds from equity offering    

(1)

   

-

     

28,798

     

-

Offering costs on the equity offering    

-

   

-

     

(2,303)

     

-

Taxes paid related to net share settlement of equity awards    

(223)

   

(180)

     

(3,340)

     

(750)

Payments on finance lease obligations    

(133)

   

(154)

     

(513)

     

(496)

    Net cash (used) provided by financing activities    

(331)

   

103

     

30,665

     

354

                                 
Net increase (decrease) in cash and cash equivalents    

(4,265)

   

(4,789)

     

3,078

     

(3,173)

Cash and cash equivalents at beginning of period    

33,659

   

27,668

     

26,316

     

26,052

Cash and cash equivalents at end of period   $

29,394

  $

22,879

    $

29,394

    $

22,879

                                 
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, 2020   Three Months Ended September 30, 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
Taxes and
Other Adjustments
  Non-GAAP
                                               
Net revenue  

$ 39,132

 

-

-

-

-

-

-

   

$ 39,132

 

$ 46,117

 

-

-

-

-

 

$ 46,117

Cost of revenue  

17,387

 

(140)

(326)

-

(186)

-

-

   

16,735

 

19,884

 

(134)

(430)

-

-

 

19,320

Gross profit  

21,746

 

140

326

-

186

-

-

   

22,398

 

26,233

 

134

430

-

-

 

26,797

Gross margin %  

56%

                 

57.2%

 

57%

           

58%

                                               
Operating expenses:                                          
Sales and marketing  

12,286

 

(756)

(648)

-

(25)

-

-

   

10,857

 

17,691

 

(936)

(1,365)

(90)

-

 

15,300

Research and development  

3,432

 

(39)

(254)

-

(67)

-

-

   

3,072

 

3,643

 

(27)

(443)

-

-

 

3,173

General and administrative  

7,239

 

(28)

(754)

-

(27)

(341)

-

   

6,089

 

7,308

 

(29)

(940)

(430)

-

 

5,909

Total operating expenses  

22,957

 

(823)

(1,656)

-

(119)

(341)

-

   

20,018

 

28,642

 

(992)

(2,748)

(520)

-

 

24,382

Income (loss) from operations  

(1,211)

 

963

1,982

-

305

341

-

   

2,380

 

(2,409)

 

1,126

3,178

520

-

 

2,415

Interest and other expense, net  

(382)

 

-

-

-

-

-

-

   

(382)

 

(146)

 

-

-

-

-

 

(146)

Income (loss) before income taxes  

(1,593)

 

963

1,982

-

305

341

-

   

1,998

 

(2,555)

 

1,126

3,178

520

-

 

2,269

Provision (benefit) for income taxes  

664

 

-

-

-

-

-

2

   

666

 

73

 

-

-

-

6

 

79

Net income (loss)  

$ (2,257)

 

963

1,982

-

305

341

(2)

   

$ 1,332

 

$ (2,628)

 

1,126

3,178

520

(6)

 

$ 2,190

                                               
Net income (loss) per share:                                          
Basic  

$ (0.13)

                 

$ 0.08

 

$ (0.19)

           

$ 0.15

Diluted  

$ (0.13)

                 

$ 0.08

 

$ (0.19)

           

$ 0.15

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

17,603

                 

17,603

 

14,182

           

14,182

Diluted  

17,603

                 

17,603

 

14,182

           

14,751

                                               
                                               
                                               
                                               
Operating expenses as a % of net revenue   GAAP                   Non-GAAP   GAAP             Non-GAAP
Sales and marketing  

31.4%

                 

27.7%

 

38.4%

           

33.2%

Research and development  

8.8%

                 

7.9%

 

7.9%

           

6.9%

General and administrative  

18.5%

                 

15.6%

 

15.8%

           

12.8%

       

58.7%

                 

51.2%

 

62.1%

           

52.9%

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, 2020   Nine Months Ended September 30, 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
Taxes and
Other
Adjustments
  Non-GAAP
                                               
Net revenue  

$ 97,740

 

-

-

-

   

-

   

$ 97,740

 

$ 129,917

 

-

-

-

-

 

$ 129,917

Cost of revenue  

50,034

 

(417)

(1,359)

-

(318)

-

-

   

47,940

 

60,544

 

(385)

(1,103)

-

-

 

59,056

Gross profit  

47,706

 

417

1,359

-

318

-

-

   

49,800

 

69,373

 

385

1,103

-

-

 

70,861

Gross margin %  

49%

                 

51%

 

53%

           

55%

                                               
Operating expenses:                                          
Sales and marketing  

38,109

 

(2,454)

(2,617)

-

(274)

-

-

   

32,764

 

50,786

 

(2,718)

(3,080)

(201)

-

 

44,787

Research and development  

10,294

 

(115)

(1,344)

-

(130)

-

-

   

8,705

 

10,622

 

(74)

(1,076)

-

-

 

9,472

General and administrative  

23,575

 

(84)

(2,736)

(1,139)

(101)

(1,359)

(324)

   

17,832

 

18,100

 

(176)

(1,745)

(1,129)

(614)

 

14,435

Total operating expenses  

71,978

 

(2,653)

(6,698)

(1,139)

(505)

(1,359)

(324)

   

59,300

 

79,508

 

(2,968)

(5,901)

(1,331)

(614)

 

68,694

Income (loss) from operations    

(24,272)

 

3,070

8,057

1,139

823

1,359

324

   

(9,500)

 

(10,135)

 

3,353

7,004

1,331

614

 

2,167

Interest and other expense, net  

(586)

 

-

-

-

-

 

-

   

(586)

 

(180)

 

-

-

-

-

 

(180)

Income (loss) before income taxes  

(24,858)

 

3,070

8,057

1,139

823

1,359

324

   

(10,086)

 

(10,315)

 

3,353

7,004

1,331

614

 

1,987

Provision (benefit) for income taxes  

1,207

 

-

-

-

-

-

9

   

1,216

 

(55)

 

-

-

-

288

 

233

Net income (loss)  

$ (26,065)

 

3,070

8,057

1,139

823

1,359

315

   

$ (11,302)

 

$ (10,260)

 

3,353

7,004

1,331

326

 

$ 1,754

                                               
Net income (loss) per share:                                          
Basic  

$ (1.59)

                 

$ (0.69)

 

$ (0.73)

           

$ 0.12

Diluted  

$ (1.59)

                 

$ (0.69)

 

$ (0.73)

           

$ 0.12

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

16,368

                 

16,368

 

14,095

           

14,095

Diluted  

16,368

                 

16,368

 

14,095

           

14,417

                                               

a) Other adjustment of $614 related to Executive separation costs.

                                       
                                               
                                               
Operating expenses as a % of net revenue     GAAP                   Non-GAAP   GAAP             Non-GAAP
  Sales and marketing    

39.0%

                 

33.5%

 

39.1%

           

34.5%

  Research and development    

10.5%

                 

8.9%

 

8.2%

           

7.3%

  General and administrative    

24.1%

                 

18.2%

 

13.9%

           

11.1%

       

73.6%

                 

60.7%

 

61.2%

           

52.9%

                                               
CUTERA, INC.
RECONCILIATION OF LOSS TO ADJUSTED EBITDA
(in thousands)
(unaudited)
             
             
      Three Months
Ended
  Nine Months
Ended
      September 30, 2020
             
Net loss  

$ (2,257)

   

$ (26,065)

Adjustments:          
  Stock-based compensation

1,982

   

8,057

  Depreciation and amortization

963

   

3,070

  CRM and ERP implementation costs

-

   

1,139

  Severance (RIF)

305

   

823

  Legal -Former CFO Settlement/Lutronic

341

   

1,359

  Other adjustments

-

   

324

  Interest and other expense, net

382

   

586

  Provision (benefit) for income taxes

664

   

1,207

    Total adjustments

$ 4,637

   

$ 16,565

             
Adjusted EBITDA

$ 2,380

   

$ (9,500)

 

Contacts

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

 
 

Source: Cutera, Inc.

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