EX-99.1 2 mrm-20250520xex99d1.htm EX-99.1

Exhibit 99.1

Graphic

MEDIROM Healthcare Technologies Inc. Announces 22% Rise in Revenue and 20% Improvement in Earnings for 2024; Webcast to Discuss Financial Results to be held on May 21st, 2025 at 8:30 AM ET

TOKYO, May 20, 2025 (GLOBE NEWSWIRE) -- MEDIROM Healthcare Technologies Inc. (Nasdaq CM: MRM), a holistic healthcare company based in Japan (the “Company” or “MEDIROM”), today announced that for the year ended December 31, 2024, the Company had total revenue of $52,736,000, a 22% increase over total revenue of $43,388,000 for the year ended December 31, 2023. (The Company reports its financial results in Japanese yen and figures presented in this press release in US dollars have been translated for convenience at the exchange rate of ¥ 157.37 = US$1.00. See “Convenience Translations to US Dollars” below for more information.)

Net income for 2024 was $878,000, or $0.17 per basic share, a 20% improvement compared with net income of $731,000, or $0.15 per basic share, for 2023.

MEDIROM’s improvement in revenue in 2024 was primarily driven by a 23% increase in the Company’s Relaxation Salon Segment revenue to $47,317,000, compared with $38,507,000 in 2023.

The Company’s increase in net income in 2024 was primarily the result of the rise in total revenue, a decrease in cost of revenues as a percentage of total revenues to 72.9% in 2024 compared with 77.0% during 2023, and a decrease in selling, general and administrative expenses as a percentage of total revenues to 27.0% in 2024 compared with 28.7% in 2023.

As of December 31, 2024, MEDIROM had cash and cash equivalents of $2,093,000, compared with $676,000 as of December 31, 2023. The Company’s total indebtedness was $11,925,000 and $9,857,000 as of December 31, 2024 and 2023, respectively.

Net cash used in operating activities was $8,462,000 in 2024 compared with $4,014,000 in 2023. Net cash provided in investing activities was $2,296,000 in 2024 while the Company had net cash used in investing activities of $2,088,000 in 2023. Net cash provided by financing activities was $7,583,000 in 2024 compared with $2,931,000 in 2023.

Basic weighted average common shares outstanding were 5,107,404 in 2024 and 4,882,500 in 2023.


“Thus far in 2025, MEDIROM has announced several notable developments,” said Chief Executive Officer Koji Eguchi. “In January, the Company’s subsidiary, MEDIROM MOTHER Labs Inc., began providing its remote health monitoring system, REMONY, and charging-free smart tracker device, MOTHER Bracelet®︎, to the Electronics Division of TOPPAN Inc. (Tokyo Stock Exchange: 7911). Also in January, all corporate capital registration procedures under Japanese law were completed with respect to the Company’s offering of 2,860,000 common shares represented by American Depositary Shares, generating gross proceeds of approximately $5 million.”

“In March, Yasuhiro Hayami, Chief Business Officer of MEDIROM Mother Labs Inc., made a second investment in Mother Labs’ Series A financing at a pre-money valuation of approximately $60 million. This new investment followed Mr. Hayami’s initial investment in a Series A financing in December 2024. Also in March, MEDIROM obtained a new unsecured short-term bank loan in the amount of approximately $2.4 million, which is being used for repayment of indebtedness to MEDIROM Mother Labs and for general working capital, including MOTHER Bracelet development.”

Looking forward to the rest of 2025, Mr. Eguchi said that MEDIROM “will continue to strive to improve revenue growth and bottom-line performance for the year.” Mr. Eguchi added, “As for near-term goals, we aim to not only to capture a significant share of the existing Japanese market for relaxation salons but also to expand our Digital Preventative Healthcare business lines through a variety of strategic initiatives and to increase the margin in that segment. As part of this, we intend to increase the number of Lav® users via the Specific Health Guidance Program promoted by the Ministry of Health, Labor and Welfare of Japan and expand the billing user base for the upgraded Lav® application. We also intend to accelerate the production of our MOTHER Bracelet® for large orders from corporate clients.”

On April 29, 2025, the Company filed its most recent annual report on Form 20-F, which annual report covers the Company’s financial results for the 2024 fiscal year and is available on the Securities and Exchange Commission website at www.sec.gov.

Convenience Translations to US Dollars

The Company’s financial results presented in this press release in US dollars have been translated for convenience from Japanese yen at the exchange rate of ¥ 157.37 = US$1.00, which was the foreign exchange rate on December 31, 2024, as reported by the Board of Governors of the Federal Reserve System in its weekly release on January 6, 2025. These financial results, as reported by the Company in Japanese yen, are included in the tabular data at the end of this press release.

Webcast

MEDIROM will hold a webcast to discuss the Company’s financial results for the fiscal year ended December 31, 2024, on Wednesday, May 21 at 8:30 am Eastern time.


To access the webcast, please go to the following URL five to ten minutes prior to its start:

 https://event.choruscall.com/mediaframe/webcast.html?webcastid=9rHZ3uFf

To participate in the webcast, please use the following dial-in numbers:

North America (toll free):

1-844-413-3971

International:

1-412-317-5775

Japan (toll-free):

0066-33-1-33094

Conference Replay:

A replay of this call will be available on May 21, 2025 at 11:30 a.m. ET until June 4, 2025, at 11:59 PM ET.

To access the replay, please dial:

US (toll free): 

1-877-344-7529

International (toll): 

1-412-317-0088

Canada (toll free):

855-669-9658

Replay Access Code: 

9951136


To access the replay using an international dial-in number, please select the following link:

https://services.choruscall.com/ccforms/replay.html

About MEDIROM Healthcare Technologies Inc.

MEDIROM, a holistic healthcare company, operates 307 (as of March 31, 2025) relaxation salons across Japan, Re.Ra.Ku® being its leading brand, and provides healthcare services. In 2015, MEDIROM entered the health tech business and launched new healthcare programs using an on-demand training app called “Lav®”, which is developed by the Company. MEDIROM also entered the device business in 2020 and has developed a smart tracker “MOTHER Bracelet®”. In 2023, MEDIROM launched REMONY, a remote monitoring system for corporate clients, and has received orders from a broad range of industries, including nursing care, transportation, construction, and manufacturing, among others. MEDIROM hopes that its diverse health-related product and service offerings will help it collect and manage healthcare data from users and customers and enable it to become a leader in big data in the healthcare industry. For more information, visit https://medirom.co.jp/en.

Forward-Looking Statements

Certain statements in this press release are forward-looking statements for purposes of the safe harbor provisions under the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements may include estimates or expectations about the Company’s possible or assumed operational results, financial condition, business strategies and plans, market opportunities, competitive position, industry environment, and potential growth opportunities. In some cases, forward-looking statements can be identified by terms such as “may,” “will,” “should,” “design,” “target,” “aim,” “hope,” “expect,” “could,” “intend,” “plan,” “anticipate,” “estimate,” “believe,” “continue,” “predict,” “project,” “potential,” “goal,” or other words that convey the uncertainty of future events or outcomes. These statements relate to future events or to the Company’s future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, levels of activity, performance, or achievements to be different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond the Company’s control and which could, and likely will, affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects the Company’s current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to the Company’s operations, results of operations, growth strategy and liquidity. Some of the factors that could cause actual results to differ materially from those expressed or implied by the forward-looking statements in this press release include:

the Company’s ability to achieve its development goals for its business and execute and evolve its growth strategies, priorities and initiatives;


the Company’s ability to sell certain of its owned salons to investors, and receive management fees from such sold salons, on acceptable terms;
changes in Japanese and global economic conditions and financial markets, including their effects on the Company’s expansion in Japan and certain overseas markets;
the Company’s ability to achieve and sustain profitability in its Digital Preventative Healthcare Segment;
the fluctuation of foreign exchange rates, which affects the Company’s expenses and liabilities payable in foreign currencies;
the Company’s ability to hire and train a sufficient number of therapists and place them at salons in need of additional staffing;
changes in demographic, unemployment, economic, regulatory or weather conditions affecting the Tokyo region of Japan, where the Company’s relaxation salon base is geographically concentrated;
the Company’s ability to maintain and enhance the value of its brands and to enforce and maintain its trademarks and protect its other intellectual property;
the financial performance of the Company’s franchisees and the Company’s limited control with respect to their operations;
the Company’s ability to raise additional capital on acceptable terms or at all;
the Company’s level of indebtedness and potential restrictions on the Company under the Company’s debt instruments;
changes in consumer preferences and the Company’s competitive environment;
the Company’s ability to respond to natural disasters, such as earthquakes and tsunamis, and to global pandemics, such as COVID-19; and
the regulatory environment in which the Company operates.

More information on these risks and other potential factors that could affect the Company’s business, reputation, results of operations, financial condition, and stock price is included in the Company’s filings with the SEC, including in the “Risk Factors” and “Operating and Financial Review and Prospects” sections of the Company’s most recently filed periodic report on Form 20-F and subsequent filings, which are available on the SEC website at www.sec.gov. The Company assumes no obligation to update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ from those anticipated in these forward-looking statements, even if new information becomes available in the future.

Contact:
Investor Relations Team
ir@medirom.co.jp


The financial information below should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 20-F for the year ended December 31, 2024 (the “Audited Financial Statements”), which is available on the Securities and Exchange Commission website at www.sec.gov.

CONSOLIDATED BALANCE SHEETS

AS OF DECEMBER 31, 2024 AND 2023

(Yen in thousands, except share data)

December 31,

    

2024

    

2023

ASSETS

Current assets:

Cash and cash equivalents

¥

329,399

¥

106,347

Time deposits

6,156

26,502

Accounts receivable-trade, net

1,355,489

621,867

Accounts receivable-other, net

646,207

606,074

Inventories

151,637

139,982

Prepaid expenses and other current assets

217,174

257,932

Total current assets

2,706,062

1,758,704

Property and equipment, net

435,659

451,498

Goodwill

389,131

484,564

Other intangible assets, net

1,139,297

920,700

Investments

87,418

81,542

Long-term accounts receivable-other, net

84,338

95,797

Right-of-use asset - operating lease, net

2,073,763

2,089,402

Lease and guarantee deposits

808,550

848,691

Deferred tax assets, net

285,882

101,636

Other assets

80,571

16,655

Total assets

¥

8,090,671

¥

6,849,189

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current liabilities:

Accounts payable

¥

1,014,205

¥

137,697

Accrued expenses

325,544

1,261,909

Short-term borrowings

491,667

400,000

Current portion of long-term borrowings

620,813

100,415

Income tax payable

58,572

14,888

Current portion of contract liability

53,485

109,307

Advances received

409,710

402,742

Current portion of operating lease liability

792,781

763,422

Other current liabilities

414,704

370,213

Total current liabilities

4,181,481

3,560,593

Borrowings - net of current portion

764,200

1,050,802

Deposit received

236,179

261,922

Contract liability - net of current portion

36,913

71,134

Operating lease liability - net of current portion

1,287,509

1,334,630

Asset retirement obligation

378,907

344,346

Other liabilities

17,424

9,801

Total liabilities

6,902,613

6,633,228

Redeemable noncontrolling interests

200,160

COMMITMENTS AND CONTINGENCIES (See Note 17 to the Audited Financial Statements)

SHAREHOLDERS’ EQUITY:

Common stock, no par value; 19,899,999 shares authorized; 7,994,450 shares issued and 7,901,950 shares outstanding and 4,975,000 shares issued and 4,882,500 shares outstanding at December 31, 2024 and 2023

352,523

19,900

Class A common stock, no par value; 1 share authorized; 1 share issued and 1 share outstanding at December 31, 2024 and 2023

100

100

Treasury stock, at cost- 92,500 common shares at December 31, 2024 and 2023

(3,000)

(3,000)

Additional paid-in capital

354,605

113,602

Retained earnings

229,040

80,277

Total equity attributable to shareholders of the Company

933,268

210,879

Noncontrolling interests

54,630

5,082

Total equity

987,898

215,961

Total liabilities and shareholders’ equity

¥

8,090,671

¥

6,849,189


CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE YEARS ENDED DECEMBER 31, 2024, 2023 AND 2022

(Yen in thousands, except share and per share data)

    

Years Ended December 31,

 

2024

2023

2022

Revenues:

    

    

    

    

Revenue from directly-operated salons

¥

7,352,868

¥

5,656,519

¥

5,396,294

Franchise revenue

792,633

971,027

1,163,998

Other revenues

153,633

200,397

393,765

Total revenues

8,299,134

6,827,943

6,954,057

Cost of revenues and operating expenses:

Cost of revenue from directly-operated salons

5,575,568

4,552,408

4,129,240

Cost of franchise revenue

316,655

523,330

645,733

Cost of other revenues

160,626

183,337

276,627

Selling, general and administrative expenses

2,241,515

1,960,447

1,805,490

Impairment loss on long-lived assets

22,872

Total cost of revenues and operating expenses

8,317,236

7,219,522

6,857,090

Operating income (loss)

(18,102)

(391,579)

96,967

Other income (expense):

Dividend income

2

2

2

Interest income

8

1,111

6,072

Interest expense

(49,745)

(36,868)

(9,800)

Gain from sales of salons

40,631

413,678

Subsidies

13,855

21,376

20,625

Foreign currency exchange gain

18,121

26,825

14,830

Other, net

42,943

(13,923)

51,078

Total other income

65,815

412,201

82,807

Income before income tax expense

47,713

20,622

179,774

Income tax (benefit) expense

(90,478)

(94,427)

30,809

Net income

138,191

115,049

148,965

Less: Net loss attributable to noncontrolling interests

(10,572)

(355)

Net income attributable to shareholders of the Company

¥

148,763

¥

115,404

¥

148,965

Net earnings per share attributable to shareholders of the Company

Basic

¥

29.13

¥

23.64

¥

30.54

Diluted

¥

28.52

¥

22.34

¥

27.23

Weighted average shares outstanding

Basic

5,107,405

4,882,501

4,877,405

Diluted

5,851,516

5,166,653

5,470,655


CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2024, 2023 AND 2022

(Yen in thousands)

Years Ended December 31,

2024

2023

2022

Cash flows from operating activities:

 

Net income

    

¥

138,191

    

¥

115,049

    

¥

148,965

Adjustments to reconcile net income to net cash used in operating activities:

Depreciation and amortization

290,038

252,595

184,056

Gain from sales of directly-owned salons

(1,697,112)

(1,244,240)

(858,548)

Change in provision for credit losses

49,780

1,958

(36,355)

Foreign currency exchange gain

(8,969)

(17,402)

(Gains) losses on disposal of property and equipment, net, other intangible assets, net and goodwill

7,109

(2,648)

12,908

Impairment loss on long-lived assets

22,872

Deferred income taxes, net

(188,706)

(101,636)

Other non-cash losses – net

53,146

45,718

Changes in operating assets and liabilities:

Accounts receivable-trade, net

339,120

580,681

(222,384)

Accounts receivable-other, net

(39,159)

43,382

(210,476)

Inventories

(10,612)

(25,873)

(95,406)

Prepaid expenses and other current assets

(2,362)

(530)

(181,477)

Lease and guarantee deposits

46,853

46,652

(27,185)

Accounts payable

876,508

(69,884)

(23,318)

Accrued expenses

(1,048,548)

97,045

517,714

Income tax payable

43,684

(45,006)

19,173

Contract liability

(90,042)

(64,999)

(82,636)

Advances received

(27,939)

(104,663)

(111,109)

Other current liabilities

22,740

(77,447)

254,742

Deposit received

(25,743)

(42,656)

(24,411)

Other assets and other liabilities – net

(82,530)

(17,833)

50,050

Net cash used in operating activities

(1,331,681)

(631,737)

(685,697)

Cash flows from investing activities:

Purchases of time deposits

(5,656)

Proceeds from maturities of time deposits

26,004

Acquisition of investments

(3,094)

Proceeds from sale of investment securities

3,558

Acquisition of property and equipment

(71,408)

(135,840)

(120,740)

Proceeds from sale of property and equipment

40,620

Acquisition of intangible assets

(493,405)

(786,178)

(45,761)

Proceeds from sale of salons

908,419

584,768

851,719

Acquisition of businesses – net of cash acquired

(21,348)

(148,000)

Payment received on short-term loans receivable

113

Payment received on long-term accounts receivable-other, net

15,229

11,655

2,599

Net cash provided (used in) by investing activities

361,393

(328,576)

580,437

Cash flows from financing activities:

Proceeds from issuance of common stock, net of issuance costs

608,101

Proceeds from issuance of preferred stock

260,280

Proceeds from short-term borrowings

710,000

400,000

Repayment of short-term borrowings

(588,333)

(162,252)

Proceeds from long-term borrowings

300,000

547,619

Repayment of long-term borrowings

(96,708)

(99,084)

(45,270)

Proceeds from sale of subsidiary stock

160,290

Net cash provided by financing activities

1,193,340

461,206

340,097

Net increase (decrease) in cash and cash equivalents

223,052

(499,107)

234,837

Cash and cash equivalents at beginning of year

106,347

605,454

370,617

Cash and cash equivalents at end of year

¥

329,399

¥

106,347

¥

605,454