AirSculpt Technologies, Inc.

Good morning and welcome to Airscope Technologies' fourth quarter and full year 2021 earnings conference call. Currently, all participants are on a listen-only mode. As a reminder, today's call is being recorded and we have allotted one hour for prepared remarks and Q&A. At this time, I'd like to turn the conference over to Dennis Dean, Chief Financial Officer at Airscope Technologies. Thank you. Please go ahead.

Good morning, everyone, and thanks for joining us to discuss AirSculpt Technologies' results for the fourth quarter and year end. Joining me on the call today is our founder and chief executive officer, Dr. Aaron Rollins, and our chief operating officer, Ron Zelhoff. Before we begin, I would like to remind you that this conference call may include forward-looking statements. These statements may include our future expectations regarding financial results and guidance, market opportunities, and our growth. Risk and uncertainties that may impact these statements and could cause actual future results to differ materially from currently projected results are described in this morning's press release and the reports we will file with the SEC, all of which can be found on our website at investors.elitebodysculpture.com. We undertake no obligation to revise or update any forward-looking statements or information except as required by law. During our call today, we will also reference certain non-GAAP measures. We use non-GAAP measures in some of our financial discussions as we believe they more accurately represent the true operational performance and underlying results of our business. A reconciliation of these measures can be found in our earnings release as filed this morning and in our annual report when filed, which will also be available on our website. With that, I'll turn the call over to Dr. Aaron Rollins. Aaron?

Thank you, Dennis. Good morning, and thank you for joining us today. We had an exceptional first quarter as a new public company. As you know, we completed our IPO during the fourth quarter, and with that milestone behind us, we look forward to continuing the momentum and success through 2022 and beyond. We generated $37.6 million of revenue, reflecting growth of 64% over the prior year quarters. and our adjusted EBITDA was 10.2 million, which was 26% over the prior year quarter. We achieved these strong results while navigating challenges arising from the Omicron variant, which impacted how we scheduled patients as well as our surgeons and our nursing staff. Achieving our results for the quarter despite these challenges speaks to the resiliency of our business. We were also able to make additional clinical investments at our facilities to enhance quality and safety for our patients, and we expect to continue these investments to further support our growth. Before we share more about our results, I want to recognize and say thank you to all of our employees and physicians. COVID brought a number of challenges over the past couple of years, and our team has performed remarkably well, and our outstanding financial results only tell part of the story. Now I'm going to provide a brief overview of the company for those who may be relatively new to AirSculpts. We are an experienced, fast-growing national provider of custom body contouring procedures. We operate under the brand Elite Body Sculpture, and we deliver a premium consumer experience in a luxury spa-like atmosphere, providing exceptional custom body contouring using our proprietary AirSculpt technology. Our network of specialty centers focuses on the removal of unwanted fat while simultaneously achieving exceptional skin tightening for our patients. We also offer fat transfer procedures, which allows patients to transfer their unwanted fat to other areas of their body, such as the breasts, hips, butt, or hands. I developed AirSculpt over 10 years ago because I saw a great need to deliver the highest quality results in body contouring and to provide a luxurious first-class experience. Unlike traditional liposuction, which uses a scraping or shearing technique, AirSculpt uses a cannula that moves over 1,000 times per minute in a back-and-forth corkscrew motion to remove live fat cells, all while simultaneously tightening skin. We do this through a freckle-sized hole instead of using a scalpel incision. We perform this procedure in a minimally invasive fashion while our patients are fully awake and we use no needle, no scalpel, no stitches, and no general anesthesia. AirSculpt has two utility patents, which we directly own. They relate to proprietary processes of performing fat removal and the combination of multiple components to perform proprietary systems that are specifically configured for carrying out AirSculpt procedures. We believe the systems and methods claimed in our patents provide impressive results with less patient trauma relative to other systems and methods of fat removal. These factors help us align with our goal of providing the absolute best body contouring that currently exists. We further rely on copyright, trademark, and trade secret laws to protect our brands, proprietary technologies, know-how, data, and copyrighted content, which includes our library of before and after photographs. We have a gallery of well over 200,000 before and after photos of satisfied patients, which we believe to be the largest in the world. No matter what type of problems someone may have, our gallery allows them to see patients we have helped with similar body concerns as theirs. From time to time, I will see comments suggesting some of our pictures are not real or have been edited because the results were so dramatic, which I first took as a compliment, but then wanted to further prove it. So in 2020, we began broadcasting Aeroscope TV, which takes an online audience inside a live Aeroscope procedure. Additionally, we allow the online audience to ask the patients questions while they are undergoing their procedures. We believe this provides a never-before-seen transparency in our space, and it speaks to our innovation in every aspect of the business. We remain committed to driving Aeriscope's brand awareness. Many people who want our services don't know who we are. We aim to change that in the coming years. We are laser-focused on increasing brand awareness of Aeriscope and intend to do this with a multi-pronged approach of celebrity influencers, earned media, owned and paid media content, as well as utilizing social and digital media marketing. The results we provide the patients speak for themselves, and we are confident that increasing brand awareness of Aeroscope will produce enormous value in the years to come. Now, turning to our fourth quarter business highlights, we continue to execute on our growth plans and open two locations during the fourth quarter for a total of four new centers for the full year 2021. I'm also excited to announce that we opened our newest location in Las Vegas and began performing cases this week. We remain on target to execute on our de novo strategy of opening three to four centers each year, which speaks to the demand for our services across the US. Not only is there runway for continued execution in the US, but we also believe there is an immense opportunity in the future to expand our network of centers internationally. We anticipate opening a center in Toronto, Canada in the second half of this year and have identified other countries that we believe will be fantastic locations to provide air skulls. As we mentioned in our last earnings call, we're excited to undertake a research project on the effects of our procedure on a patient's metabolic parameters. We have begun the process of designing the study to carry out high quality research. We are developing standard procedures for all aspects of the study, and we aim to submit to the Institutional Review Board for approval in the first half of this year. We expect to complete patient enrollment this fall, and we anticipate having results from the study in 2023. We are excited about the opportunities ahead of us as we continue to expand the Aeroscope Technologies footprint, increase brand awareness, and deliver incredible results for our patients. Now I want to turn the call over to Ron Zellhoff, our Chief Operating Officer. Ron?