AirSculpt Technologies, Inc.

Good morning, and welcome to Aeroscope Technology's third quarter 2022 earnings conference call. Currently, all participants are in a listen-only mode. As a reminder, today's call is being recorded, and we have allocated 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 Aeroscope Technology. Thank you. You may begin.

Good morning, everyone, and thanks for joining us to discuss Airscope Technologies results for the third quarter. 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 last night'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 financial measures We use non-GAAP measures in some of our financial discussions as we believe they are 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 last night and in our most recent quarterly report when filed, which will also be available on our website. With that, I'll turn the call over to Dr. Rollo. Aaron?

Good morning and thank you for joining us on the call today. Before we discuss the quarter, I wanted to take a moment to recognize all the veterans that have served our great country. We truly appreciate all that you do, and thank you for your dedication to keeping our country safe. Recently, we celebrated our one-year anniversary as a publicly traded company. We've accomplished many things this past year, from performing over 30,000 procedures to expanding our footprint across the U.S. and soon to be Canada. while also paying a meaningful special dividend as a way of deploying our capital allocation strategy. For the third quarter, I want to call out three key items that impacted our results. First, the timing of opening our new de novo location, specifically Philadelphia and Boston. They were later than expected. We had anticipated opening Boston in the second quarter. It opened in the third. While we are excited to open, Philadelphia this week, we had anticipated it opening in the third quarter. Second, several surgeons at some of our larger, more mature centers took extended vacation. While we forecasted our normal seasonal impact for the third quarter, these vacations caused a more pronounced seasonality effect than we typically see. We do expect a significant number of these cases to be deferred to future periods, and we are already seeing some of those cases return in the fourth quarter. Nursing costs in the quarter, as well as year-to-date, have run higher than we anticipated. While Dennis will provide more details in the financial review, I would like to point out that we made the decision to increase investment in our clinical infrastructure. Nurses are central to that initiative. Although there is a near-term impact to margins as a result of this investment, we believe it is a strategic, longer-term investment consistent with our commitment to quality. Moving to our de novo expansion strategy, I'm very excited to report that our first international center in Toronto, Canada, is scheduled to open at the end of this month. We still have a vast number of markets to move into, and we look forward to bringing AirSculpt further across the U.S. and across the globe. As for the AirSculpt brand, we continue to invest heavily in brand awareness and other marketing-related activities. You may recall from last quarter's call, our new chief marketing officer started in July. We believe the investments we have been making in this area and the work she is doing will result in meaningful growth for us in the future. We have also been very active in building out our team to support our rapid growth, both for new domestic sites and for our international expansion plan. We have focused on reinforcing our clinical infrastructure and related nursing and training teams to sustain our long-term growth plans. it's extremely important for us to enhance our training and oversight capabilities so that we can not only grow rapidly, but do so while maintaining safety and quality to protect our patients and our brand. As mentioned in our second quarter call, we continue to add enhancements to the AirSculpt procedure. During the quarter, we began offering AirSculpt Plus at most of our centers. AirSculpt Plus provides enhanced skin tightening, and we recently began a rollout of AirSculpt Smooth, which offers a treatment for the long-term reduction of the appearance of cellulite. We take pride in continuing to offer new service offerings that are effective and provide tremendous results to our patients. I'm sure some of you are interested in the status of our health research study. As previously reported, we are undertaking a research study on the effects our procedures have on the metabolic parameters of our patients. I'm happy to say that we have received approval from the Institutional Review Board to begin enrolling patients, which we plan to do this month, and we expect the results of the study to be completed in 2023. With that, I will turn the call over to Ron to discuss more about our operations and de novo activities. Ron?