EX-99.1 2 ex_211759.htm EXHIBIT 99.1 ex_211759.htm

Exhibit 99.1

 

a1.jpg

 

Cutera, Inc. Announces Third Quarter 2020 Financial Results

 

BRISBANE, California, November 4, 2020 ─ 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.

 

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Capital Equipment revenue of $24.1 million decline of 31% over prior-year period, compared to a 59% decline in 2Q20.

 

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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.

Anne Werdan

Director, Investor Relations

415-657-5500

awerdan@cutera.com 

 

 

 

 

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 )