Segments (Tables)

9 Months Ended

Sep. 30, 2022

Summary of financial information relating to the Company's operating segments

Financial information relating to the Company’s operating segments for the three months ended:


$'s in 000's	Products		Services		Unallocated Corporate		Total
September 30, 2022
Net sales	$	176,217	$	33,508	$	—	$	209,725
Segment Adjusted EBITDA	35,634		4,226		(20,651)		19,209
Depreciation expense	1,001		1,671		904		3,576
Capital expenditures	1,114		85		572		1,771


$'s in 000's	Products		Services		Unallocated Corporate		Total
September 30, 2021
Net sales	$	181,557	$	28,977	$	—	$	210,534
Segment Adjusted EBITDA	33,678		3,821		(21,135)		16,364
Depreciation expense	982		1,454		709		3,145
Capital expenditures	578		2,177		3,520		6,275

Financial information relating to the Company’s operating segments for the nine months ended:


$'s in 000's	Products		Services		Unallocated Corporate		Total
September 30, 2022
Net sales	$	642,981	$	94,453	$	—	$	737,434
Segment Adjusted EBITDA	126,923		12,050		(60,588)		78,385
Depreciation expense	3,039		4,956		2,778		10,773
Capital expenditures	5,352		2,507		1,938		9,797


$'s in 000's	Products		Services		Unallocated Corporate		Total
September 30, 2021
Net sales	$	654,448	$	81,444	$	—	$	735,892
Segment Adjusted EBITDA	120,657		8,945		(52,018)		77,584
Depreciation expense	2,913		3,924		2,582		9,419
Capital expenditures	1,533		8,810		14,234		24,577

Summary of reconciles segment adjusted ebitda to pretax net income

The following table reconciles Segment Adjusted EBITDA to Net income for the periods presented.


	For the three months ended				For the nine months ended
$'s in 000's	September 30, 2022		September 30, 2021		September 30, 2022		September 30, 2021
Adjusted EBITDA:
Product	$	35,634	$	33,678	$	126,923	$	120,657
Services	4,226		3,821		12,050		8,945
Unallocated Corporate	(20,651)		(21,135)		(60,588)		(52,018)
Segment Adjusted EBITDA	19,209		16,364		78,385		77,584
Adjustments:
Depreciation	(3,576)		(3,145)		(10,773)		(9,419)
Amortization	(4,602)		(4,627)		(13,602)		(17,682)
Interest expense, net	(7,276)		(6,168)		(19,696)		(18,693)
Goodwill impairment(1)	(47,264)		—		(47,264)		—
Acquisition costs(2)	(1,035)		—		(1,191)		(92)
Loss on debt extinguishment and related costs(3)	—		—		—		(6,438)
Stock based compensation expense	(2,238)		(2,627)		(8,904)		(7,188)
Non same-store adjustment(4)	(2,944)		(6,195)		(13,575)		(16,930)
Integration costs and costs of discontinued clinics(5)	(200)		1,041		(943)		354
Litigation expenses	—		(2,323)		(3,802)		(2,886)
CFO Transition	—		(331)		—		(331)

Pretax net loss	$	(49,926)	$	(8,011)	$	(41,365)	$	(1,721)
Income tax (expense) benefit	355		(317)		(368)		(187)
Net loss	$	(49,571)	$	(8,328)	$	(41,733)	$	(1,908)

(1) Non-cash goodwill impairment due to a significant decline in the Company’s market capitalization, driven primarily by rising interest rates and macroeconomic conditions. Additionally, the Company made the strategic decision to slow expansion plans for the Services business this year.

(2) Acquisition costs include legal, accounting, banking, consulting, diligence, and other costs related to completed and contemplated acquisitions.

(3) Loss on debt extinguishment and related costs are related to our entering into two new credit facilities, including the write off of deferred financing costs and related costs.

(4) Non same-store adjustment includes revenue and costs, and associated gross profit, related to our Services segment wellness centers and host partners with less than six full quarters of operating results, and also include pre-opening expenses.

(5) Integration costs and costs of discontinued clinics represent costs related to integrating the acquired businesses including personnel costs such as severance and signing bonuses, consulting costs, contract termination, and IT conversion costs. Depending on the type of costs, the costs are primarily in the Products and the corporate segments. Costs of discontinued clinics represent costs to close Services segment locations.

Long-lived assets by geographic areas

Supplemental geographic disclosures are below.


	Nine Months Ended September 30, 2022
$'s in 000's	U.S.		Foreign		Total
Product sales	$	637,385	$	5,597	$	642,981
Service revenue	94,453		—		94,453
Total net sales	$	731,838	$	5,597	$	737,434


	Nine Months Ended September 30, 2021
$'s in 000's	U.S.		Foreign		Total
Product sales	$	649,232	$	5,216	$	654,448
Service revenue	81,444		—		81,444
Total net sales	$	730,676	$	5,216	$	735,892


	Three Months Ended September 30, 2022
$'s in 000's	U.S.		Foreign		Total
Product sales	$	174,517	$	1,700	$	176,217
Service revenue	33,508		—		33,508
Total net sales	$	208,026	$	1,700	$	209,725


	Three Months Ended September 30, 2021
$'s in 000's	U.S.		Foreign		Total
Product sales	$	179,759	$	1,798	$	181,557
Service revenue	28,977		—		28,977
Total net sales	$	208,736	$	1,798	$	210,534

Property, plant, and equipment by geographic location is below.


	September 30, 2022		December 31, 2021
United States	$	71,318	$	75,315
Europe	3,505		1,298
Total	$	74,823	$	76,613