AirSculpt (AIRS) 13 May 222022 Q1 Earnings call transcript

Good morning and welcome to AirSculpt Technologies' First 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 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 AirSculpt Technologies. Thank you.

begin. may You

and Technologies' everyone joining to us Good for thanks the AirSculpt results first discuss morning, for quarter.

Operating Rollins, Joining me Chief our Aaron and our is Zelhof. Chief and on the Executive call Officer, today Officer, Ron Founder Dr.

to statements growth. to morning's projected release, file may statements forward-looking materially results are Before you could of on undertake conference differ opportunities, and from and statements. statements currently guidance, that except forward-looking revise impact future results information our SEC, or our obligation remind may at the the described we market which include required will or in would we include future may update Risk expectations website by actual this be law. this that results I These begin, found these and like We our press any reports uncertainties call can as regarding cause all and investors.elitebodysculpture.com. with and financial no to

our that, this Rollins. non-GAAP in turn earnings Aaron found measures will During and With of be A use as of quarterly can operational financial our accurately measures the the measures. some we of true these in Dr. release, our morning, also that's call to non-GAAP our discussions, financial when results represent call which reconciliation I'll performance our reference on will website. available our they filed filed in and over report We recently more most also be certain underlying we believe business. today,

thank today. you Thank all you for and Dennis. us Good morning joining

revenue the of the say us to our company. ever achieved that in saw want history reach First have highest and quarterly volume we quarter that I first

of generated revenue For quarter. XX.X XX% million growth of the the prior quarter year over outstanding reflecting we

new the a network Hills, developed center centers are now of quarter ago across have location our XX we ever on target continued than have executing novo for our the during XX Vegas we which to growth we is demand going We domestically. national AirSculpt this strategy on our of we one centers in Las quarter. experienced. demand in second the to on Beverly We states services speaks de execute opened seeing a and and higher the opening years into four year plans Additionally remain with XX

know awareness. services the and technologies. plastic who of and to statistics removal the We results As we XXX,XXX that fat especially remain in trends increase space beyond surgical favorable and opening We markets aesthetic for our for XXXX to people continue from look to the is continuing new exist. our anticipate the to the forward tremendous and expand augmentation. a call, also us there centers also aesthetic of AirSculpt’s superior procedure the momentum rest our now of on mentioned half Toronto, in network our for driving body procedures and by contouring results previous the evidence in market our want great we surgical into and to share in our are is liposuction us in increased patients today contouring. due year. opportunity procedures center brand A and breast Society we committed this believe publication of incredible believe to Aesthetic showed opportunities fat opportunity the expand recent further approximately internationally top performed Canada and of second our we surpassing We XXXX we body about There's investors. and deliver to sails wind we don't These excited that as most are ahead reduction in a

content, for celebrity brand value our to believe a create our We influencers, increase outreach. well demand business. as our our continued of efforts by as media along customers these heavy and our digital paid usage We group will media social aesthetic of plans expanding exceptional services awareness of to with development and these reach focusing earned, are owned, for

We rapid pace our proactive investments growth. taken company have building team. very active for a out us in Due various of been areas our also in we've position of to to of growth, the approach making further

physician Over these the are we've a exceptionally recruiting performing months developed six well. past and efforts dedicated department

performing During cases over seven to our facilities brings to of number network new the surgeons added XX. at we quarter which the our physicians

result of hired effectively demand. train a to recruited we more to efforts will customer as second us surgeons we trainer a strive our recently As newly allow meet increased surgeon recruiting which

but During by health the capabilities upcoming Clinical only a our Chief to quarter we also clinical research operations support to clinical our also adding project. expanded lead Officer not our

As patient’s call a on we research we are to health a effects parameters. introduced excited metabolic our our undertake previous the on study procedures have on

to We are in approval later on quarter. study the well Board into Review to designing target submit the are Institutional process the of and a for second we

patient enrollment we this results to study XXXX. from anticipate expect We having fall begin in and the

a our plan will of to inflationary stem quarter. questions to bank stem cells on their is rates have have will the the sure company and business. promote further patients allow harvested from interest patients procedure. We the wellness and believe we offering I'm this and which one impact second during environment the cell additional us start fat the AirSculpt opportunity all Additionally, adult banking you with their this the increasing national in to contracted way removed to us we how for our health current offer

in we've demand While we future, is can't than current the seen predict stronger our history. ever our

resilient a with our coupled sheet balance model business. low a strong which We also to structure is cost support business fixed have very

Ron our want turn the to Operating Officer. call to over Ron? Zelhof, I Now Chief

our do project and to you share novo I to going team. good before Rollins procedure AirSculpt room thank regarding you want Thank I'm expansion de Dr. morning to some but I information say everyone. the

to on COVID. times patients results first by performed we class treat face challenging the bringing in the You by magnificently brought especially day of every

a you with provide I'll update. development Now

over We've know and you opened opened now center Vegas demand to each in a initial are of exceeded March in three up Las and centers performing these four-month we period a expectations. well. our exceptionally this centers point has As

discussed, a four-months centers we rest As approximately while these negative to platform new impact as to the the a for short-term for year. have and cash it margins, center over give positive a takes great of margin become flow expansion previously us grow revenue our they

Boston we will it opened efficiencies novo meet to only with provides but expect operational rooms in also market procedure next open center allow to rooms. we in procedure us the utilization de the increases. in not have which that Three as be We first June our anticipate the demand three

of we this to plans and two Looking one the later second additional Toronto, open facility. rest have in of another Canada the Philadelphia international will in in year; to be which first XXXX, facilities our half

also on look to we XXXX for about diligently forward working coming sharing more centers the We those and our markets in are some months.

We rooms to have existing procedure been of busy also some adding more centers. our

the on facility centers fourth relocated legacy one capacity am us was quarter say room constraints In our procedure March centers Chicago previous and relocated allows with to of I expanding room procedure those on only gives on three to we but center this efficiently. our rooms. capacity only to increased more also procedure it operate added and facility pleased patients Dallas May us and also a to Xnd in we to facilities. our Sacramento converting cases not larger calls, As faster were expanded we've relocating Having in We third room. some or to the built procedure mentioned rooms. been XXXX three Due to

a open seen would As in have chain million the discussed on year. far delay facilities facility a that previous have procedure so from of typically costs it calls new to opening we new impact inflation than nor our this later less and are rooms and scheduled significant that encountered disruptions supply $X we not

demand and that excited prepare our growth over revised turn as expanding our provide Dennis and growth our on and are volumes about team existing to I'll in capabilities in back to it Dennis? our markets, to both seeing for clinical and additional in markets operations further and We to we've results financial as acceleration. further well for new our in With outlook. so sales details prepare record to plans we are been the our due revenue interest

Thanks Ron.

First year. the the provide quarter then first thoughts and our remainder on remarks the share some I liquidity of and for some on will our outlook

de XX.X increased increased million XX XXXX. prior the a to expanded revenue XX.X XX.X% to over increase quarter five which our centers prior XX% is Our to the cases The of novo increase from result XX, March our as adding footprint centers million, quarter of XXXX. and primarily a year to year

center same case. Additionally, per both increases we volume in and experienced revenue

year XX% a increase Our per revenue was over quarter. prior case the $XX,XXX,

pricing. our variables As a there are reminder that determine several

vary the room primarily include number can being is fat whether of of the a is the in it removed factors While fat based a other due to on time involves areas and of length procedure volume the patient transfers. procedure being treated, which

transfers For a candidate for patient procedures every fat variety is the a a to Not up reasons. performed. make fat our than quarter first greater of XX% transfer continue for of

our the maintain Same quarter strong expect we XX% of increase same rate. in as and attract space prior to AirSculpt trends expanding However, case store and to to this awareness centers. growth especially into by our more grow. capabilities to driven year Much favorable growth marketing center increase can be percentage in an and aesthetic selling the to our patients revenue attributed increased and volumes over TV case brand

quarter of revenue the same year. versus services XX.X% cost period a as the for last Our in percentage XX.X% of was

have quality first developing. certain last we for existing clinical continued prepare Ron both for into the us future we our and Rollins These patients growth and further both Dr. investments in quarter. which and due centers centers the As making are new teams to rapid the additions safety and been enhanced quarter our our growth to mentioned, better started and nursing

we from Our a grow approximately pace. now quarter investments or continue XXX are expect these to as basis investments points mostly $XXX,XXX margins and which begin in overtime revenues were these complete at leveraging strong the to impacted

related due were cost staffing our services costs approximately basis to or XX COVID. by Additionally, to of increased impacted $XXX,XXX points

mentioned opening also past the XXX our Ron impacted his approximately of remarks As de points. novos margins basis four-months the three in in by

as has strong been year. a and We be these lived this to centers later in growth give will short revenue platform for expect demand this us impact

social, is case quarter for proud per were averages marketing sequentially per customer. personnel the times our our per advertising sales for on over Based customer, and acquisition of digital, costs combined margin costs with extremely customer costs four which traditional typically return our cost acquisition of. advertising gross which were revenue. which customer $XXXX, our on quarter XX.X% the When million total which down X.X is the include approximately nearly approximately and $XXXX $XXXX from we're Our our

of percentage rates these can of and the a investments as costs after timing increases revenue marketing our revenue per make reminder related to related a compared As we we fluctuate making quarter-to-quarter customer the to investments. achieved

was the X.X Our quarter. million adjusted EBITDA for

our to EBITDA related remind a in growth EBITDA we full the $X.X prior the everyone, as did included company. these private was Just to rate first quarter a company. million have this prior public quarter costs not year exist Adjusted which approximately of company include Normalizing costs public company adjusted been approximately were XX%. would year public as our

to quarter costs. our our due costs other was the for was And more in first XX.X% annual finally which approximately also requirements. margin quarters public SEC as related quarter our compliance EBITDA due public Additionally, to $XXX,XXX compared company first to impacted are significantly company adjusted the

Moving as has million and of that our XX, credit. onto we million was and XX.X XXXX cash a outstanding revolver liquidity flow March is and $X have no letters position cash of undrawn items,

aspect to no model EBITDA collect. attractive so we our ratio accounts from with quarter business the Our at X.X approximately million the long-term agreement our end under adjusted X.XX receive XX% our to operations we was payments reflects all is our for quarter of credit that as self-pay of approximately An are of receivable amounted XX Cash have which cash risk. flow XXX% was We the leverage no million debt reimbursement conversion. front times. calculated up to and

contracted allows to our us receive is after and cash which operating Additionally, surgery effectively. performed our payment surgeons are a only flow manage very

Las invested and Vegas also in million expansion projects. upcoming center the our quarter Boston X.X during primarily procedure openings in room to We related and and our Philadelphia opening our

some information outlook our year. for remainder the I will provide of the Now on

to From over EBITDA $XX $XX up to revenue think million between year. open XXX forecast XXX to achieve our we million. expect As we XXX and from four XXXX for about to to XX% of full XX% we we level. are increase million year million And perspective, million maintaining outlook centers to expect prior now represents modeling our the a a million XXX of adjusted this

As discussed, Las And in as open expect openings to year. second March, are center of as half you patients we Boston late have Vegas the lighter remaining there in of quarter late during second our And a we in expected opened heard, prepare and summer upward months. with for the center be second in two March business the trending volumes the a element in seasonality June. a to slight quarter. the is we the quarter in to be the and tends first Also, through previously quarter

remind accordingly. of into our IPO, estimating income are result now a C-Corp to everyone, taxes as reorganized Just a and we

vesting impact These plan. three-year fully to issued and IPO-related Additionally, part related vest. income our XXXX stock-based until period compensation that are of have were increased grants significantly as creation net IPO our a of incentive equity the expected stock initial grants to they

questions, me that for is patients. results Before unique say this that truly company provides let take we incredible our a

to extremely We capitalizing model return questions. that would look aesthetic and in to business With turn the tailwinds. provides call the an have forward operator the these we on further over a space, an like excellent on trends for capital I that, Operator? few by is fueled attractive being to favorable and invested

[Operator Thank Instructions]. you.

with question Josh Nephron of is Raskin the Please ahead. line first go Our from Research.

that sort is about first $X morning Boston $XXX,XXX, I mix-wise? for Two think maybe it's what about month better that good and revenue? just guidance that each if faster, for Thanks driving And boost one everyone. online if demand of How coming then of you, much how and -- demand, could in and was of much questions regarding geography-wise, of $XXX,XXX being the better the you is here specifically million. revenues product talk is the of

remember, on when as increasing at Josh. main the revenue from But they little question, really But intentionally equally ramp standpoint I we to it's the if it tend bring slower the the did little a Boston those I is a the the us weighted purposes. up looking increase. for bit quality on, as for We earlier. demand guidance. driver say far of Thanks probably would were bring

half and hear I more Could Speakers]? or Alright. half [Multiple --

it weight more little on demand would I bit the side. a

is you specific geographies outperforming? Okay. specifically what looked that cost fat that in is it is more that, more And driving certainly saw is transfers, are like higher procedures, there pricing, it that

we're don't And win mean a center. at not key they It's us. that that industry standpoint, standpoint a major month here. procedures, we the what what contouring. looked I And putting behind And from body why I of I this to kind procedures volume fat activities out report really it's that that -- extremely type really our related and fluctuate showed of we've for demand doing, the really would month. to the is not more is again, of are consider that recently bullish which the from massive it we itself. the is from just really same demand is discussed we're mean driver we've reduction high came

centers of lot run Our don't volume. a

procedures, within but so which could procedures. months, movement come procedures And they're do in to anything mean that profitable out I the are short that rates due there door. we be There's may really would chins, certain types at the our significantly. call more nothing we some very just of

bit, really what bottom so of And the rate perspective. a significant a might impact it while dip think from we to line no has

where we is. business like So our

what sort every aren't You what patient reasons. frankly, for for aren't for patients we've our out -- we we candidates is as quite as calling quarters. volume been and is and various to Fat it's as everyone. candidate to that expect last transfers grows, kind expect over maintain and called maintain the out of been XX% fat where a we've we kind Not that's most where several of of transfers.

know little in early maybe too any you've lessons and separately just it curious, particular then future? Lake, assuming just terms Anything anything the there. be are the centers, outperformance I'm Vegas, bit sounds that it's going to newer little openings I'm of Las a on of a but you've there seen about Miami, to in like And the helpful learned Salt new

Hey All how and of are are performing our Ron. Josh, now. right performing pleased we're actually it's How you? they're slightly ahead centers of extremely with expectations,

I the in the think challenges because the area Florida biggest surprise some of market -- might Miami about of location. were South be Miami, we Beach it, maybe opened our the these concerned When just types we procedures. as of far as maybe pricing

for successful -- significant in positive a We've a seen our very actually been pressure rate frankly, all. our getting hasn't that's at So there us -- the rates. that quite in been

Alright, perfect, thanks.

you. Thank

next from go line the question Gutman. is Please Our ahead. of Simeon

morning. everyone, have I questions. Thanks good two

First costs. on demand some on and then second

first, us bookings quarter-to-date, demand. with but backdrop, curious share was but guess, market I So to forward? going mostly light I changes if if correlation you how up question. like, Can look is the and you'll shaping worries, there's forward what, my demand on first in on know stock is don't which of geopolitical That that's fine any touch

Simeon. Thanks, Yes.

You're right.

bookings. While very part to quarter would positive that we going We're forward-looking sort we the strong. information, and say don't as seeing is what from give is what any really, the specific volumes second we're first really of of sales though and

so excited extremely, ahead we're And what's extremely of about us.

far. is so quarter Second good looking really

example, for marketing, this opportunity talk Can trainer. unplanned scales is of the what return for an are I question be the marketing and and you doing grows, business Okay, to versus about then is number if this finding attention, needs is two same a a that, see don't ramp this is is And certain business to where know that more were being the you great, scaled our areas especially much that needs there time, up? cost planned and caught how are all versus first and proactive guys you scaling. time, then of level spent thanks. There and the second as good trainers, it spend investment you but think of on is the then this at there planned would second the it's as buckets portion surgeons or have support centers it, more the surgeon you

have wonderful surgery can many Rollins. not that There's the was with our can second I in our planned. business. for answers I was we're people start full-time hoped Aaron about It's a way us, Getting trainers really start. and couldn't and it can do we and some that trainer, that and before. pace, allows it investments it at for allows our in really safety happy to different a two Having to them. our to surgical quality us maintain and scale us

more? So we're a We Dennis, very to thrilled spent. want well plan hiring don't you a about money in very, this some third that fill at on as do time.

would I the our I frankly, been to. forward we as year original sort think because so strong revenue of And been at has pulled say, has did in compared the costs, we expected those look a what Yes, strong. to of we've quite so earlier little outlook, the kind demand I bit so and

not want new for also of we same-store, that but want growth, accelerate facilities. our growth, and growth to we our prepare things in only accelerate One to the is in do

invest And was time of a sooner. so the bit again, the felt -- we've to we right that demand, because little it

cost And quarter. happy per our see a acquisition a four to margin on per of is to return. CAC we're close that's is patient, to customer the return down excess is $X,XXX strong spend patient thing because times for our went gross which in Another $X,XXX

Thanks luck. everyone, good

Simeon. Thanks

you. Thank

from Please question Korinne Piper Sandler. of the with go ahead. next Our is line Wolfmeyer

questions. and good for Hi, thanks the morning taking

in consumer market current thoughts. know just of consumers to starting But here? like to, these the about through viewing maybe I'd to the is we go are one, expand and your to as demand kind do more you market cut well. starting and get very on on macro the like we I I mean, trending And if both decline, are what's broader how environment you you to going downturn here -- I'd So in aesthetics internationally expecting fare and into obviously hear how spending, to resiliency U.S. conditions? the a continue how do of the sentiment

been Rollins. I have Thanks for that is my the Aaron demand. whole with been I've never of say can and for I much so now doing over This this level the certainty CEO life, And AirSculpt seen absolute I've XX of question. this years.

volumes Our have been better. never

financing is Our I same and exactly accelerating. rate the see actually demand

can I really all that's you. So tell

And no business. great I the it's feel conditions fact, in macro mean, our here. quarters about accelerating. I So effect had have on coming these

more excited little be macro trends Rollins and to where add brand we customer say, some that Dr. would Speakers] a again, these it's a with I'd wood, demand that seeing, again, to like bit seeing. says, about we're a knock that we're so I of [Multiple tends resilient that, luxury bit our from on we're our are base But we're environment going.

you. And the to then just thank color bit really Helpful, I Renuvion. on touch there. like I a appreciate

economic can didn't you prepared this -- the on, remarks, be that's offices on just and walk procedures but just many in the for economic helpful? really cost we technology, the there you has demand this any color so us what on understand have would going, how of And now what's You what's bringing you how can any add-on procedure this or the cost been? give us it again, just been color through mention

start. can I

have it So to date? in how we're Renuvion. offices Ron, really happy we many do to offer And

Seven.

you than to on which in them an machine. demand. We Dennis, sure, out it. to it and I'm it we're do call have patients are office want that. allowed good. Plus on then we're very immediately demand get and is rolling AirSculpt it and where There are of asking for economics there's we way what more are about the it's lot really The others, patient based based just say a seven do say that offices a some it we If for not

for is that. Obviously, every $X,XXX on that's it it about average looks add-on -- like. typically but the on Sure. We different, about case what usually see a depends

is good the time. And thing more $X,XXX room operating XX of add-on, that that's for about minutes

it good. it's a because actually I'd really very company, we're works well. And So results-focused like say, to

I'm So happy with technology. very the

I think office. to continue we any it's every safe demand out based have from to roll and on it extremely individual plan

you. thank Great,

Thank you.

SVB Our Please from with line ahead. next Mayo go question Leerink. is the of Whit

I good go the it's morning. join increased to of think wanted totally the Dennis, I thanks, actually the the to investments back timing. on just control Hey, when right to trigger decision right topic within the fully pull people, to appreciate the team. your I these. don't and the you find the talent

you, So here. decision to put guidance, and you that for really into a oftentimes give we're seems to questions made quarterly budget. that getting be not a don't easy guys few And

So kind developed quarter increased investments, really compare all with puts the if here take with we of did how your the these like just internal plan? and takes of how it

thanks, Hey Whit.

we I heavily company. before impacted get by First, into a the mean, being investment obviously side, public get we

about quality, safety what make demand earlier, for everybody's what calling pull kind sure as need are adjusted of growth make to that but just the always paramount these reiterated that, talked us -- that sure point, as I'd we've really think just when has your it's number. forward. again, We've we that of for know costs Whit, you EBITDA saw sort to out wasn't those part of us. excellent to just incur. We a that significant shared costs I And I I well. that so and continue year-over-year we we wanted And to But, caused question, again, Whit, account like

all And standard a managers really we quality had so the are us on bringing in and opportunities like of hiring the the of in can't grow past, us a out space, up front And health in our put And that's we to this in LPNs. to sacrifice growth. is focus more that you We caused growth. care higher because, nurses for nurse RNs, see we're place. we as rapid this business you whereas for

right point invested primarily maxing out feel of the that we're standpoint. like And dollars quarter. so we from into the We at these

So to we've we investments where arena need in like the are made that feel about we be.

had in going the there be we're it related impact and If the We leverage quarter. move we to and $XXX,XXX year, over other adding clinical year. items. from that $XXX,XXX as through forward nurses a of about number to to sequential prior we had think so to And a able probably $XXX,XXX we impact these

-- also investing the we if about, critical Rollins to doctors not be are surgical to going up at As and those faster open got able that train mean, in be our open up recruit to that's new only and Dr. pace, trainers, I centers to centers the we're have talked to able maybe new a but doctors.

And that the so see there. the adding volume physician and we to front speaks us second how full-time opportunities just trainer in dedicated out of

things. Most and the that them little of and types duplicate two We're impact of those are of We have time over those was and months not in really the that in seeing to by so did and of the of out. But And a of the COVID bit been timely lot first rescheduling working COVID case going quarter. the of had two staffing year. we'll We've hope that the where the a had. know be been effective around for we've keep able numbers been resilient. We've very the remainder that past, cases I in we've impact in very a revenue fashion. we see.

that's heavier we've months. a that's as the about we but kind hit quarter. points reason quarter. the last in about four centers in a but And three these yet, guys to the to That year. down. us But throughout to being to EBITDA months us cash time. centers for call margins very us ever about gives three percentage on XXX in hit this bit little And from of you the it So bit this a the know, than we positive. rest because, us obviously think done it our for what growth opened a probably And our driving history the one become great is feel four we at spoken takes that much platform flow I we've run basis in for don't margin then as good margins standpoint, that, And

Again, the feel prepares coming we are. coming just now really down where good -- we So really excited. We're investments down see us we for for making us. line what these that

these just Yes. out relocations, bit guys No, one a if get more way kind when entered I you think Can a to quarter. or of that little quarter get stagger relocation, this it a the seems whatever? feel you with Sacramento historically a on there to as like sense of do the from you other is come pretty disruption enthusiasm size than I question I any when it, expected disruption think any efficiently, such I you ask you just trying relocation but

and one, answer hey And Sure, a new did no, it which the Whit, do The is and on Friday relocation And start in cases do along it I been long already Ron. Again, we we the us. don't Dallas, weekend. it's a we over weekend, for Number was the the we evening, we over -- afternoon Monday. is we we're large way question. the up. last Friday move appreciate comes packing one then

we do how ahead go that's So these. and

whatsoever. So no disruption there's

first to I'd for -- say the procedure in add And recently very us. the time. all relocated really to add rooms that used I'm just that at for big happy three like we office like I'd to time same that's

Okay, thanks guys.

you. Thank

of John Raymond Our Ransom is next with ahead. go from Please James. question the line

about I year is quarter more this even that be this case high if Omicron mean Hey, to think given just maybe revenues, XQ normally, good Is one is Dennis. the some first morning. and for the more preopening the going sequential effect? watermark. I your guess had we

going obviously the a is -- up been look and mean QX that's is centers a it throughout XXs is new on of a we'll out sequential additional upper How see how and range our then Obviously, I'm kind online ramp next looking the how the history. the ramp we're the from perspective. for revenue think -- the we to significantly. at perspective. getting for it for I for I benefit that for quarters quarter I quarters seeing year. actually, the revenue laying fourth two quarter John, remaining on that's basis, fourth mid-XX at from some revenue But bring next

as, sorry the XQ but extra XQ mentioned fully company made, quarter. up will, cost And first investment taking costs the about the if audit the the the what's few not -- in kind we that's -- to your that public But fixed you think quarter of you kind you into should word, if right I of how know step costs, extra if we consideration? the things a

only public about two point thing Sure. months, a we public and sequential is on on XXX run if look at basis, would a I to the also, costs numbers for were you company average month. One our make a QX, XXX

see So the that's the bear a sequential quarter. fourth impact that in first necessarily that we in didn't quarter we

going see increase a to Now quarter, we that's usually over about us. $XXX,XXX run quarters with first the in to SEC the because of $XXX,XXX And future annual requirements.

which kind in is Was you you. will the of maybe mid-quarter be there [indiscernible]? fuller the first anything quarter that else Got that expense in layered

with run the we've would I standpoint, majority, our that investments. from all, made it. not think I mean, I clinical if of again,

we good that. So feel about

that that's again our now so growth for we're up. prepared coming -- And have just for

is last invest off, of one full level any the discussion, know what your me, you part and for what's kind it that? that it, the pre-IPO maybe you the the to year, could comp And remind seasonality I of there for to just everybody stock for then was amount before us but balance need expectations set are levels of

Yes.

that, to significant really It's is -- that be to grant seasonality comp to to purposes, on due tax that XXXM income executive a there's for that. various and But a quarter. about X.X purposes benefit, for of to of will, modeling requirements what we consider what deductibility the for the comp, took if just So what not is see tax an Most stock due the IPO that. you add get perspective place. would going also line from original would won't I we I we the

will And this so effective impact income our definitely year. rate that tax

and level fully so this at you the pre-IPO running be if absorbed to grant? going you are How

will for years. Yes, three be so you running

two And and it, John. about so so months we're six half basically years, another into

remind And just you Okay. -- two haven't would, Very if things. good. I guess, other seen then you me, I know

are how typically? your of First all, bookings far out

ahead. -- Well, yes, go that really

depends our our But depending a be on on two can Our legacy just on all. six from longer. weeks just centers. anywhere not one-room bookings There weeks. facility. to newer run It centers, eight to long little to be tend it's existing at Those

three you've my probably obvious? you're -- be sitting that's -- Okay. maybe be between But that to and comments mid-quarter, then just kept in on here you get will got pretty almost bookings, for so weeks of solid your XQ, visibility

Right.

we pretty -- have some We view it, Right. on good do have John.

Yes.

about about do a Orlando, we doing out, little about market I'm think put lastly, and thinking like an something, what's maybe think you know thought Tampa, about you've out you more in or got that, because I building days -- of hour but have like, might a well, three something bit if road we when like away. you a years do down we week, a densifying one I'm of And maybe the Okay. and think, couple this the the there you How maybe any just look thought or and satellite company half did? more about can there's this and think these in we

Thank that. take you. I'll

do moving don't building that's growth investments we're operationally, growing point. why and forward. want because clinically our both now we're So these our faster. of increase sake to opportunity to currently And that is for results quality teams, making We and jeopardize see business the the we in support

with if and And consistent markets", of but the have traditional they not Charlotte your places some your Orlando, market MSAs, bigger ramped like super opening? "secondary

our performing well. Frankly, mid-markets exceptionally are

And and really is the ever ramp-up business. my seen some exceeded this the than So ramping openings performance I've better have predictions. in recent

Great, me. you. that’s it for Thank

Okay, thanks John.

And have the we for the the and Rollins reached to gentlemen, Thank would call end you. Dr. to I question-and-answer of Ladies turn back like session. closing remarks.

work. Thank thanking forward our be for all. to employees of to like I'm our you. I'd thank growth like doctors more I'd you all listening, you and couldn't looking performance, and all such conclude about I excited to and our excellent and by for Thank the future.

Thank conference. you. today's This concludes

You time. you at this for disconnect participation. Thank lines may your your