Cutera, Inc. Announces Second Quarter 2021 Financial Results with Record Revenue and Issues 2021 Guidance

BRISBANE, Calif.--(BUSINESS WIRE)--Aug. 4, 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 second quarter ended June 30, 2021.

Second Quarter 2021 Financial and Operational Highlights

• Revenue was $58.6 million, an increase of 122% from the prior-year period, driven by robust performance across the business, with strength in both capital equipment and recurring revenue segments.
  • Capital Equipment revenue of $35.6 million increased 129% over the prior-year period.
  • Recurring revenue was $23.0 million, an increase of 113% over the prior-year period:
    • Skin Care revenue of $11.8 million increased 147% over prior-year period;
    • Consumable Product revenue of $4.4 million grew 211% over prior-year period, and
    • Service revenue of $6.8 million increased 47% over prior-year period.
• Gross Margin was 57.7% for the quarter, an improvement of 13.6 points versus prior-year period, driven by further leverage of manufacturing volumes over a reduced fixed overhead expense base, resulting in the natural progression of our margin expansion efforts.
• Adjusted EBITDA was $6.8 million in the period as compared to ($3.5) million in the prior-year period, a $10.3 million improvement over FY2020.

“I am proud of our team’s performance during the second quarter, as our focus on our Vital Few initiatives and operational execution aligned with improving trends in our end markets, resulting in solid financial performance across the board,” commented Dave Mowry, Chief Executive Officer of Cutera, Inc. “During the quarter, we saw steady global procedure volume growth, and we began to benefit from the early stages of increasing appetite for capital equipment purchases. We expect to deliver strong revenue performance in the latter half of the year, despite some slight and temporary deceleration from patient and practitioner vacations in 3Q21. We view a resumption of the historical practitioner vacation patterns in the third quarter favorably, as it reflects both restored customer confidence in the sustainability of patient traffic and proof of renewed financial health of the practice. Based upon the continuing recovery in our end markets, positive capital trends, and continued execution of our strategic priorities, we anticipate delivering steady performance in second half of 2021, with normal seasonal acceleration in the fourth quarter of 2021.”

2021 Outlook

Given improved volumes through the first half of the year and better visibility into the second half of the year, management is issuing full-year 2021 revenue guidance. Full-year 2021 revenue is expected to be in the range of $215 million to $221 million, an increase of 46% to 50% over 2020 and 18% to 22% over pre-COVID 2019 levels.

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: 13721584.

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, Gain on extinguishment of PPP loan, customer relationship management and enterprise resource planning 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 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 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;

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; and

Other Adjustments. We have excluded certain other amounts that we believe are non-recurring in nature. In the three months ended June 30, 2021, we recorded a gain on the extinguishment of our PPP loan. This gain has been excluded from the calculation of our non-GAAP operating net income.

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 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)
				June 30,			March 31,			December 31,
				2021			2021			2020
	Assets
	Current assets:
		Cash and cash equivalents		$ 169,200			$ 164,932			$ 47,047
		Accounts receivable, net		25,903			24,151			21,962
		Inventories		34,591			34,578			28,508
		Other current assets and prepaid expenses		8,856			10,339			8,779
			Total current assets	238,550			234,000			106,296
	Property and equipment, net			2,148			2,373			2,299
	Deferred tax asset			592			598			643
	Goodwill			1,339			1,339			1,339
	Operating lease right-of-use assets			15,919			16,570			17,076
	Other long-term assets			5,615			4,853			5,080
			Total assets	$ 264,163			$ 259,733			$ 132,733
	Liabilities and Stockholders' Equity
	Current liabilities:
		Accounts payable		$ 6,210			$ 5,031			$ 6,684
		Accrued liabilities		41,346			41,329			31,079
		Operating leases liabilities		2,422			2,351			2,260
		PPP loan payable		-			6,352			3,630
		Extended warranty liabilities		649			1,039			1,216
		Deferred revenue		9,695			10,019			9,489
			Total current liabilities	60,322			66,121			54,358
	Deferred revenue, net of current portion			1,708			1,718			1,748
	PPP loan payable, net of current portion			-			851			3,555
	Operating lease liabilities, net of current portion			14,705			15,394			15,950
	Convertible notes, net of unamortized debt issuance costs			133,800			133,585			-
	Other long-term liabilities			285			434			242
			Total liabilities	210,820			218,103			75,853
	Stockholders’ equity:
		Common stock		18			18			18
		Additional paid-in capital		106,173			102,206			117,097
		Accumulated deficit		(52,848	)		(60,594	)		(60,235	)
			Total stockholders' equity	53,343			41,630			56,880
			Total liabilities and stockholders' equity	$ 264,163			$ 259,733			$ 132,733

	CUTERA, INC.
	CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
	(in thousands, except per share data)
	(unaudited)
				Three Months Ended								Six Months Ended
				June 30,				June 30,				June 30,				June 30,
				2021				2020				2021				2020
	Products			$	51,811			$	21,745			$	95,362			$	48,136
	Service				6,778				4,624				12,895				10,472
	Total net revenue				58,589				26,369				108,257				58,608
	Products				20,892				12,206				39,224				26,309
	Service				3,908				2,539				7,534				6,339
	Total cost of revenue				24,800				14,745				46,758				32,648
			Gross margin		33,789				11,624				61,499				25,960
			Gross margin %		57.7	%			44.1	%			56.8	%			44.3	%
	Operating expenses:
		Sales and marketing			18,410				11,035				33,478				25,823
		Research and development			4,850				2,991				8,962				6,862
		General and administrative			8,461				8,529				15,826				16,336
			Total operating expenses		31,721				22,555				58,266				49,021
	Income (loss) from operations				2,068				(10,931	)			3,233				(23,061	)
	Interest and other income (expense), net
	Amortization of debt issuance costs				(215	)			-				(267	)			-
	Interest on Convertible notes				(778	)			-				(969	)			-
	Gain on extinguishment of PPP loan				7,185				-				7,185				-
	Other income (expense), net				(392	)			3				(1,415	)			(204	)
	Income (loss) before income taxes				7,868				(10,928	)			7,767				(23,265	)
	Income tax expense				122				466				380				543
	Net income (loss)			$	7,746			$	(11,394	)		$	7,387			$	(23,808	)
	Net Income (loss) per share:
		Basic		$	0.43			$	(0.67	)		$	0.41			$	(1.51	)
		Diluted		$	0.39			$	(0.67	)		$	0.40			$	(1.51	)
	Weighted-average number of shares used in per share calculations:
		Basic			17,862				17,055				17,815				15,744
		Diluted			22,453				17,055				20,855				15,744

	CUTERA, INC.
	CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
	(in thousands)
	(unaudited)
				Three Months Ended						Six Months Ended, June 30
				June 30,			June 30,			June 30,			June 30,
				2021			2020			2021			2020
	Cash flows from operating activities:
	Net income (loss)			$ 7,746			$ (11,394	)		$ 7,387			$ (23,808	)
	Adjustments to reconcile net income (loss) to net cash used in operating activities:
		Stock-based compensation		2,919			4,095			4,765			6,075
		Depreciation and amortization		346			355			707			715
		Amortization of contract acquisition costs		458			675			1,003			1,392
		Amortization of debt issuance costs		215			-			267			-
		Impairment of capitalized cloud computing costs		-			805			182			805
		Change in deferred tax asset		6			(11	)		51			4
		Provision for credit losses		274			1,106			492			1,696
		Loss on sale of Property and Equipment		(23	)		-			(82	)		-
		PPP loan forgiveness		(7,185	)		-			(7,185	)
		Change in right-of-use asset		-			-			604			-
		Other		-			163			-			198
	Changes in assets and liabilities:
		Accounts receivable		(2,026	)		728			(4,433	)		6,034
		Inventories		63			5,701			(5,958	)		2,681
		Other current assets and prepaid expenses		1,483			(491	)		(77	)		316
		Other long-term assets		(1,220	)		(312	)		(1,720	)		(519	)
		Accounts payable		1,179			(2,923	)		(474	)		(1,004	)
		Accrued liabilities		21			(3,187	)		10,220			(9,754	)
		Extended warranty liabilities		(390	)		(105	)		(567	)		(339	)
		Operating lease liabilities		33			-			(530	)		-
		Deferred revenue		(334	)		(1,190	)		166			(2,443	)
			Net cash provided by (used in) operating activities	3,565			(5,985	)		4,818			(17,951	)
	Cash flows from investing activities:
	Acquisition of property, equipment and software			(269	)		(205	)		(370	)		(435	)
	Disposal of property and equipment			19			-			71			-
	Proceeds from sales of marketable investments			-			4,100			-			10,900
	Purchase of marketable investments			-			(12,237	)		-			(16,167	)
			Net cash used in investing activities	(250	)		(8,342	)		(299	)		(5,702	)
	Cash flows from financing activities:
	Proceeds from exercise of stock options and employee stock purchase plan			1,501			647			1,897			848
	Proceeds from PPP loan			-			7,149			-			7,149
	Proceeds from equity offering			-			26,496			-			26,496
	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			(452	)		(883	)		(1,451	)		(3,117	)
	Payments on finance lease obligations			(96	)		(197	)		(211	)		(380	)
			Net cash provided by financing activities	953			33,212			117,634			30,996
	Net increase in cash and cash equivalents			4,268			18,885			122,153			7,343
	Cash and cash equivalents at beginning of period			164,932			14,774			47,047			26,316
	Cash and cash equivalents at end of period			$ 169,200			$ 33,659			$ 169,200			$ 33,659

CUTERA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(in thousands, except percentage data)
(unaudited)
				Three Months Ended								% Change		Six Months Ended								% Change
				June 30,				June 30,				2021 Vs		June 30,				June 30,				2021 Vs
				2021				2020				2020		2021				2020				2020
Revenue By Geography:
		North America		$	26,786			$	11,622			+130.5%		$	49,084			$	26,995			+81.8%
		Japan			17,421				8,517			+104.5%			33,976				15,679			+116.7%
		Rest of World			14,382				6,230			+130.9%			25,197				15,934			+58.1%
		Total Net Revenue		$	58,589			$	26,369			+122.2%		$	108,257			$	58,608			+84.7%
		International as a percentage of total revenue			54.3	%			55.9	%					54.7	%			53.9	%
Revenue By Product Category:
	Systems
		- North America		$	19,888			$	8,214			+142.1%		$	36,673			$	18,596			+97.2%
		- Rest of World (including Japan)			15,680				7,328			+114.0%			27,215				17,904			+52.0%
		Total Systems			35,568				15,542			+128.9%			63,888				36,500			+75.0%
	Consumables				4,432				1,425			+211.0%			7,357				3,958			+85.9%
	Skincare				11,812				4,778			+147.2%			24,118				7,678			+214.1%
		Total Products			51,812				21,745			+138.3%			95,363				48,136			+98.1%
	Service				6,777				4,624			+46.6%			12,894				10,472			+23.1%
		Total Net Revenue		$	58,589			$	26,369			+122.2%		$	108,257			$	58,608			+84.7%

					Three Months Ended								Six Months Ended
					June 30,			June 30,					June 30,			June 30
					2021			2020					2021			2020
	Pre-tax Stock-Based Compensation Expense:
			Cost of revenue		$	434		$	743				$	578		$	1,033
			Sales and marketing			522			1,251					1,243			1,970
			Research and development			307			769					608			1,090
			General and administrative			1,656			1,332					2,336			1,982
					$	2,919		$	4,095				$	4,765		$	6,075

	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 June 30, 2021																				Three Months Ended June 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				$ 58,589			-		-		-		-		-		-				$ 58,589			$ 26,369			-		-		-		-		-		-			$ 26,369
	Cost of revenue				24,800			(138	)	(434	)	-		-		-		346				24,574			14,745			(136	)	(743	)	-		(132	)	-		-			13,734
	Gross margin				33,789			138		434		-		-		-		(346	)			34,015			11,624			136		743		-		132		-		-			12,635
	Gross margin %				57.7	%																58.1	%		44.1	%															47.9	%
	Operating expenses:
	Sales and marketing				18,410			(600	)	(522	)	-		(638	)	-		-				16,650			11,035			(827	)	(1,251	)	-		(249	)	-		-			8,708
	Research and development				4,850			(45	)	(307	)	-		-		-		-				4,498			2,991			(38	)	(769	)	-		(63	)	-		-			2,121
	General and administrative				8,461			(21	)	(1,656	)	(407	)	-		(290	)	-				6,087			8,529			(29	)	(1,332	)	(729	)	(74	)	(1,018	)	-			5,347
	Total operating expenses				31,721			(666	)	(2,485	)	(407	)	(638	)	(290	)	-				27,235			22,555			(894	)	(3,352	)	(729	)	(386	)	(1,018	)	-			16,176
	Income (loss) from operations				2,068			804		2,919		407		638		290		(346	)			6,780			(10,931	)		1,030		4,095		729		518		1,018		-			(3,541	)
	Interest and other income (expense), net
	Amortization of debt issuance costs				(215	)		-		-		-		-		-		-				(215	)		-			-		-		-		-		-		-			-
	Interest on Convertible notes				(778	)		-		-		-		-		-		-				(778	)		-			-		-		-		-		-		-			-
	Gain on extinguishment of PPP loan				7,185			-		-		-		-		-		(7,185	)			-			-			-		-		-		-		-		-			-
	Other expense				(392	)		-		-		-		-		-		-				(392	)		3																3
	Total interest and other income (expense), net				5,800			-		-		-		-		-		(7,185	)			(1,385	)		3			-		-		-		-		-		-			3
	Income (loss) before income taxes				7,868			804		2,919		407		638		290		(7,531	)			5,395			(10,928	)		1,030		4,095		729		518		1,018		-			(3,538	)
	Provision for income taxes				122			-		-		-		-		-		-				122			466			-		-		-		-		-		2			468
	Net income (loss)				$ 7,746			804		2,919		407		638		290		(7,531	)			$ 5,273			$ (11,394	)		1,030		4,095		729		518		1,018		(2	)		$ (4,006	)
	Net income (loss) per share:
	Basic				$ 0.43																	$ 0.30			$ (0.67	)															$ (0.23	)
	Diluted				$ 0.39																	$ 0.28			$ (0.67	)															$ (0.23	)
	Weighted-average number of shares used in per share calculations:
	Basic				17,862																	17,862			17,055																17,055
	Diluted				22,453																	22,453			17,055																17,055
	Operating expenses as a % of net revenue				GAAP																	Non-GAAP			GAAP																Non-GAAP
	Sales and marketing				31.4	%																28.4	%		41.8	%															33.0	%
	Research and development				8.3	%																7.7	%		11.3	%															8.0	%
	General and administrative				14.4	%																10.4	%		32.3	%															20.3	%
					54.1	%																46.5	%		85.5	%															61.3	%

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)
				Six Months Ended June 30, 2021																				Six Months Ended June 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				$ 108,257			-		-		-						-				$ 108,257			$ 58,608			-		-		-		-		-		-			$ 58,608
Cost of revenue				46,758			(300	)	(578	)	-		-		-		346				46,226			32,648			(277	)	(1,033	)	-		(132	)	-		-			31,206
Gross margin				61,499			300		578		-		-		-		(346	)			62,031			25,960			277		1,033		-		132		-		-			27,402
Gross margin %				56.8	%																57.3	%		44.3	%															47	%
Operating expenses:
Sales and marketing				33,478			(1,278	)	(1,243	)	(182	)	(638	)	-		-				30,137			25,823			(1,698	)	(1,969	)	-		(249	)	-		-			21,908
Research and development				8,962			(84	)	(608	)	-		-		-		-				8,270			6,862			(76	)	(1,090	)	-		(63	)	-		-			5,633
General and administrative				15,826			(48	)	(2,336	)	(477	)	-		(691	)	-				12,274			16,336			(57	)	(1,982	)	(1,139	)	(74	)	(1,018	)	(324	)		11,742
Total operating expenses				58,266			(1,410	)	(4,187	)	(659	)	(638	)	(691	)	-				50,681			49,021			(1,830	)	(5,041	)	(1,139	)	(386	)	(1,018	)	(324	)		39,283
Income (loss) from operations				3,233			1,710		4,765		659		638		691		(346	)			11,350			(23,061	)		2,107		6,075		1,139		518		1,018		324			(11,880	)
Interest and other income (expense), net
Amortization of debt issuance costs				(267	)		-		-		-		-		-		-				(267	)		-			-		-		-		-		-		-			-
Interest on Convertible notes				(969	)		-		-		-		-		-		-				(969	)		-			-		-		-		-		-		-			-
Gain on extinguishment of PPP loan				7,185			-		-		-		-		-		(7,185	)			-			-			-		-		-		-		-		-			-
Other expense				(1,415	)		-		-		-		-		-		-				(1,415	)		(204	)		-		-		-		-		-		-			(204	)
Total interest and other income (expense), net				4,534			-		-		-		-				(7,185	)			(2,651	)		(204	)		-		-		-		-		-		-			(204	)
Income (loss) before income taxes				7,767			1,710		4,765		659		638		691		(7,531	)			8,699			(23,265	)		2,107		6,075		1,139		518		1,018		324			(12,084	)
Provision for income taxes				380			-		-		-		-		-		-				380			543			-		-		-						7			550
Net income (loss)				$ 7,387			1,710		4,765		659		638		691		(7,531	)			$ 8,319			$ (23,808	)		2,107		6,075		1,139		518		1,018		317			$ (12,634	)
Net income (loss) per share:
Basic				$ 0.41																	$ 0.47			$ (1.51	)															$ (0.80	)
Diluted				$ 0.40																	$ 0.44			$ (1.51	)															$ (0.80	)
Weighted-average number of shares used in per share calculations:
Basic				17,815																	17,815			15,744																15,744
Diluted				20,855																	20,855			15,744																15,744
Operating expenses as a % of net revenue				GAAP																	Non-GAAP			GAAP																Non-GAAP
Sales and marketing				30.9	%																27.9	%		44.1	%															37.4	%
Research and development				8.2	%																7.5	%		11.7	%															9.6	%
General and administrative				14.6	%																11.3	%		27.9	%															20.0	%
				53.8	%																46.8	%		83.6	%															67.0	%

CUTERA, INC.
RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA
(in thousands)
(unaudited)
			Three Months Ended				Six Months Ended
			June 30, 2021
Net income			$ 7,746				$ 7,387
Adjustments:
	Stock-based compensation		2,919				4,765
	Depreciation and amortization		804				1,710
	ERP implementation Cost		407				659
	Severance (RIF)		638				638
	Legal -Lutronic		290				691
	Other adjustments		(346	)			(346	)
	Gain on extinguishment of PPP loan		(7,185	)			(7,185	)
	Interest and other expense, net		1,385				2,651
	Provision for income taxes		122				380
		Total adjustments	(966	)			3,963
Adjusted EBITDA			$ 6,780				$ 11,350

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20210804005937/en/

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

Source: Cutera, Inc.