Segments (Tables)

6 Months Ended

Jun. 30, 2023

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
June 30, 2023
Net sales	$	278,167	$	36,380
Segment Adjusted EBITDA	33,279		1,511
Depreciation expense	1,861		2,303
Capital expenditures	1,275		944


$'s in 000's	Products		Services
June 30, 2022
Net sales	$	219,014	$	33,000
Segment Adjusted EBITDA	25,531		2,051
Depreciation expense	1,768		1,747
Capital expenditures	1,526		822

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


$'s in 000's	Products		Services
June 30, 2023
Net sales	$	537,160	$	67,858
Segment Adjusted EBITDA	65,474		2,362
Depreciation expense	3,677		4,008
Capital expenditures	2,839		1,289


$'s in 000's	Products		Services
June 30, 2022
Net sales	$	466,764	$	60,945
Segment Adjusted EBITDA	55,965		3,212
Depreciation expense	3,696		3,501
Capital expenditures	5,445		2,581

Summary of Segment Adjusted EBITDA to Net Loss Reconciliation

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


	For the three months ended				For the six months ended
$'s in 000's	June 30, 2023		June 30, 2022		June 30, 2023		June 30, 2022
Segment Adjusted EBITDA:
Products(1)	$	33,279	$	25,531	$	65,474	$	55,965
Services(1)	1,511		2,051		2,362		3,212
Total	34,790		27,582		67,836		59,177
Adjustments:
Depreciation	(4,164)		(3,515)		(7,685)		(7,197)
Amortization	(6,477)		(4,477)		(10,739)		(9,000)
Interest	(8,824)		(6,299)		(17,556)		(12,420)

Acquisition costs(2)	(297)		(156)		(835)		(156)

Stock based compensation expense	(2,743)		(2,843)		(5,208)		(6,666)
Non same-store adjustment(3)	(1,922)		(3,466)		(4,245)		(10,631)
Integration costs(4)	(618)		(404)		(1,594)		(743)
Litigation expenses	—		(1,141)		—		(3,802)


Pretax net income	$	9,745	$	5,281	$	19,974	$	8,562
Income tax expense	(192)		(603)		(640)		(724)
Net income	$	9,553	$	4,678	$	19,334	$	7,838

(1)Beginning in the fourth quarter of 2022, the Company is allocating corporate expenses to each segment pro rata based on net sales for each segment. The presentation of Products Segment Adjusted EBITDA and Services Segment Adjusted EBITDA for the three and six months ended June 30, 2022 has been recast for comparability. For the three and six months ended June 30, 2022, total corporate expenses were $20.5 million, of which $17.8 million was allocated to Products and $2.7 million was allocated to Services, and $39.9 million, of which $35.3 million was allocated to Products and $4.6 million was allocated to Services, respectively.

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

(3) 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.

(4) Integration costs represent costs related to integrating the acquired businesses including personnel costs such as severance and retention bonuses, consulting costs, contract termination, and IT conversion costs. The costs are primarily within the Products segment.

Long-Lived Assets by Geographic Areas

Supplemental geographic disclosures are below.


	Three Months Ended June 30, 2023
$'s in 000's	U.S.		Foreign		Total
Product sales	$	276,074	$	2,093	$	278,167
Service revenue	36,380		—		36,380
Total net sales	$	312,454	$	2,093	$	314,547


	Three Months Ended June 30, 2022
$'s in 000's	U.S.		Foreign		Total
Product sales	$	217,285	$	1,729	$	219,014
Service revenue	33,000		—		33,000
Total net sales	$	250,285	$	1,729	$	252,014


	Six Months Ended June 30, 2023
$'s in 000's	U.S.		Foreign		Total
Product sales	$	534,051	$	3,109	$	537,160
Service revenue	67,858		—		67,858
Total net sales	$	601,909	$	3,109	$	605,018


	Six Months Ended June 30, 2022
$'s in 000's	U.S.		Foreign		Total
Product sales	$	462,867	$	3,897	$	466,764
Service revenue	60,945		—		60,945
Total net sales	$	523,812	$	3,897	$	527,709

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


	June 30, 2023		December 31, 2022
United States	$	65,782	$	69,376
Europe	3,994		4,019
Total	$	69,776	$	73,395