AirSculpt Technologies, Inc. (NASDAQ:AIRS) Q4 2022 Earnings Call Transcript

Dennis Dean: Thanks, Korinne. We are extremely focused on a 30% margin. We believe that this business should be in that range or above that range. Clearly, this past year, we’ve invested a significant amount, and I think, again, Todd in his comments, he has talked about that as well as how we’ve invested considerably and maybe got ahead of ourselves a little bit there. So that obviously impacted our margins in the current year. But again, that 30% margin range is something we’re extremely focused on. And again, we think it’s definitely reasonable to look at it from a long-term perspective.

Todd Magazine: Yes, Korinne, this is Todd. Nice to chat with you. Thanks for the question. Just to add on to what Dennis said, we’re pushing hard on this. As Dennis said, we think we could accomplish a couple of million probably this year, but we think on a run rate basis as we turn the page on the calendar at the end of the year that, that number should annualize to something closer to $5 million. And so we’re very focused on margin expansion I’ve looked at this in my relatively short time here and I would tell you that there’s no reason this business couldn’t have 30%-plus margin. And our focus really is to obviously continue to drive the top line aggressively, but also to really obviously go after some of these investments that need to be right sized for our cost structure. So we’re very focused there and I think we feel good about going after that and we just need a little time to get some of that in the bank over the coming months and quarters.

Korinne Wolfmeyer: Got it. That’s very helpful. And then just on some of these new center openings. Can you just talk about what you’re seeing in terms of ramp and productivity of these new centers and kind of what’s baked into expectations this year? And then also, kind of, along those lines, what kind of visibility do you have into potential case volume for some of these new centers or really the London One, that’s maybe a little bit more different than how a traditional U.S. center would operate. Thank you.

Aaron Rollins: Yes, this is Aaron Rollins, hi. So something that we are doing this year that we haven’t done before and the thing of your question is, four of our de novos this year are actually opening up in States we’re already in. And that gives us the opportunity to train our doctors actually in the existing center in that State, so that we can attempt to accelerate our de novo ramp by instead of having two to three months of limited case volumes, free cases for training, et cetera, et cetera. Actually be doing real cases at real prices day one, and this is our first foray into doing that. But we’re able to do that in actually four de novos this year. Obviously, London is a completely different story. I’ll tell you that after our calls today, I’m off to London for a press tour, and I’d say this is the most robust de novo marketing we’ve ever had.

I have around 20 press interviews in London on Sunday and we’ve never seen interest like this before. We also have a wonderful doctor pipeline there. We just signed another wonderful doctor, who we’re really excited about. And even one of our doctors from the U.S. is licensed in the U.K., and we’ll be pinch hitting there sometimes, Dr. DelVecchio. So all I can tell you is that I haven’t been this excited about the de novo in a long time and I’m expecting really good things from London. In terms of the London ramp, there’s no way I can really say what that’s going to look like.

Korinne Wolfmeyer: Awesome. That’s great to hear. Thanks so much and looking forward to next week.

Todd Magazine: Thanks. Me too.