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Associated Press
20-05-2025
- Business
- Associated Press
SBC Medical's First Quarter Margins Improve; Company Announces Share Buyback Program
By Meg Flippin Benzinga DETROIT, MICHIGAN - May 20, 2025 ( NEWMEDIAWIRE ) - SBC Medical Group Holdings Inc. (NASDAQ: SBC), the Japanese owner and operator of a chain of cosmetic surgery clinics, is in transformation mode, overhauling its pricing structure and adapting to a changing marketplace, which seems to have paid off in the company's first quarter. For the three months ended March 31, 2025, SBC Medical reported earnings per share of $0.21, which was up 5% year-over-year. EBITDA margins were 52%, up from 46% in the year-ago first quarter. The company, which is positioning itself as a leader in the cosmetic surgery market, ended the quarter with 251 clinics, increasing the number by 36 compared to last year's first quarter. Despite a challenging marketplace in Japan, SBC Medical was able to increase its customers in the last twelve months ending in March by 14% to 6.1 million. In a nod to the quality it offers customers at its clinics, SBC Medical also reported that 71% of customers visited franchisee clinics two or more times during the quarter. 'SBC is actively preparing for strategic expansion by enhancing its platform, optimizing its profitability structure, and stabilizing its business through revised pricing strategies and adapting to changing market dynamics,' said Yoshiyuki Aikawa, Chairman and Chief Executive Officer of SBC Medical, when reporting first quarter results. 'In the first quarter of 2025, we were pleased to see the expansion of Medical Corporations (MCs) gaining traction in our franchising, procurement and rental business segments as global demand for aesthetic medical services continued to rise.' SBC Medical Group has been focused on expanding its MCs, which are designed to help cosmetic practitioners operate cosmetic surgery centers and at the same time adhere to regulations. SBC Medical Overhauling For Growth While SBC reported revenue of $47 million in the first quarter - down 14% year-over-year - the company attributed that to the discontinuation of its staffing business and the divestitures of Sky Net Academy and SBC Kijimadaira Resort. Despite that, margins increased, and net income increased 15% year-over-year. 'As we move ahead, we remain confident in our ability to build a scalable franchise model while accelerating expansion across domestic and international markets, driving long-term value for shareholders and positioning the Company to capitalize on future opportunities,' said Aikawa. SBC Medical is working hard to position itself as a leader in the cosmetic surgery market, and it isn't resting on its laurels. To address competition and keep its leading position in the industry, the company is pursuing two strategies: expanding the market by making aesthetic medicine more accessible and appealing to the masses and differentiating itself from the competition by offering advanced treatments and better pricing - bringing its treatments to the U.S. and Singapore. The company is preparing for expansion and says its first quarter results are evidence of that. Buying Back Shares The company underscored its confidence in its growth plan by announcing its board has approved a share buyback program of up to $5 million worth of shares. The buyback program will kick off on May 20, 2025, and last through May 20, 2026. The company is using excess cash and future free cash flow to buy back the shares. SBC Medical said it launched the program because it believes the stock at the current share price undervalues its business performance, growth potential and the aesthetic medical market, including SBC Medical's position. The global cosmetic surgery and procedure market was worth $122.08 billion in 2022, and it is expected to grow at a CAGR of 14.7% from 2023 to 2030. SBC Medical will buy the shares on the open market at prevailing market prices and will continue to look at other ways to enhance the liquidity of its shares. It also plans to issue shares as future stock-based compensation in proportion to the number of repurchased shares. In addition to the repurchase program, SBC Medical says it will continue to consider dividend distributions with the goal of improving its total shareholder return. From expanding the number of clinics to overhauling its pricing to lure new customers and repeat business, SBC Medical is positioning itself to capitalize on what it expects to be growth in the aesthetic medicine market. With a new stock buyback program underway, SBC Medical is showing the world and its investors it has confidence in its growth plans. Featured image sourced fromShutterstock. This post contains sponsored content. This content is for informational purposes only and not intended to be investing advice. This content was originallypublished on further disclosureshere. View the original release on
Associated Press
15-05-2025
- Business
- Associated Press
SBC Medical Group Holdings Announces First Quarter 2025 Financial Results
IRVINE, Calif.--(BUSINESS WIRE)--May 15, 2025-- SBC Medical Group Holdings Incorporated (NASDAQ: SBC, 'SBC Medical' or the 'Company'), a global owner, operator and provider of management services and products to cosmetic treatment centers, today announced its financial results for the three months ended March 31, 2025. First Quarter 2025 Highlights 1 EBITDA and EBITDA Margin are non-GAAP financial measures. For more information on non-GAAP financial measure, please see the section of 'Use of Non-GAAP Financial Measures' and the table captioned 'Unaudited Reconciliations of GAAP and Non-GAAP Results.' 2 The number of customers takes into account customers of SBC brand clinics, Rize Clinic and Gorilla Clinic, but does not take account customers of AHH Clinics 3 The number of customers takes into account customers of SBC brand clinics, Rize Clinic and Gorilla Clinic, but does not take account customers of AHH Clinics, but excluding free counseling Yoshiyuki Aikawa, Chairman and Chief Executive Officer of SBC Medical, said, 'SBC is actively preparing for strategic expansion by enhancing its platform, optimizing its profitability structure, and stabilizing its business through revised pricing strategies and adapting to changing market dynamics. In the first quarter of 2025, we were pleased to see the expansion of Medical Corporations (MCs) gaining traction in our franchising, procurement and rental business segments as global demand for aesthetic medical services continued to rise; meanwhile, revenue decrease in the quarter primarily reflected the discontinuation of our staffing business and divestures of Sky Net Academy ('SNA') and SBC Kijimadaira Resort ('Kijimadaira'). In the midst of this transition, operating margin improved from 45% in the first quarter 2024, to 51% in the first quarter 2025. Additionally, net income attributable to SBC Medical Group increased 15% year-over year, further demonstrating the strength of our business model transition and execution. As we move ahead, we remain confident in our ability to build a scalable franchise model while accelerating expansion across domestic and international markets, driving long-term value for shareholders and positioning the Company to capitalize on future opportunities.' First Quarter 2025 Financial Results Total revenues were $47 million, a decrease of 14% year-over-year reflecting the negative impact of the discontinuation of the staffing business and the disposal of subsidiaries partially offset by increased demand for medical materials and equipment from the expansion of Medical Corporations. Net income for the three months ended March 31, 2025 was $22 million, compared to $19 million in the same period of 2024. The increase was largely attributed to the impact of a special gain associated with the maturity of a life insurance policy. EBITDA was $25 million, an decrease of 3% year-over-year primarily driven by lower in revenue following the termination of the staffing services business and the deconsolidation of SNA and Kijimadaira. About SBC Medical SBC Medical, headquartered in Irvine, California and Tokyo, Japan, owns and provides management services and products to cosmetic treatment centers. The Company is primarily focused on providing comprehensive management services to franchise clinics, including but not limited to advertising and marketing needs across various platforms (such as social media networks), staff management (such as recruitment and training), booking reservations for franchise clinic customers, assistance with franchise employee housing rentals and facility rentals, construction and design of franchise clinics, medical equipment and medical consumables procurement (resale), the provision of cosmetic products to franchise clinics for resale to clinic customers, licensure of the use of patent-pending and non-patented medical technologies, trademark and brand use, IT software solutions (including but not limited to remote medical consultations), management of the franchise clinic's customer rewards program (customer loyalty point program), and payment tools for the franchise clinics. For more information, visit Use of Non-GAAP Financial Measures The Company uses non-GAAP measures, such as EBITDA, in evaluating its operating results and for financial and operational decision-making purposes. The Company believes that the non-GAAP financial measures help identify underlying trends in its business. The Company believes that the non-GAAP financial measures provide useful information about the Company's results of operations, enhance the overall understanding of the Company's past performance and future prospects and allow for greater visibility with respect to key metrics used by the Company's management in its financial and operational decision-making. The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The non-GAAP financial measures have limitations as analytical tools, and when assessing the Company's operating performance, cash flows or liquidity, investors should not consider them in isolation, or as a substitute for net loss, cash flows provided by operating activities or other consolidated statements of operations and cash flows data prepared in accordance with U.S. GAAP. The Company mitigates these limitations by reconciling the non-GAAP financial measures to the most comparable U.S. GAAP performance measures, all of which should be considered when evaluating the Company's performance. For more information on the non-GAAP financial measures, please see the table captioned 'Unaudited Reconciliations of GAAP and Non-GAAP Results.' Forward Looking Statements This press release contains forward-looking statements. Forward-looking statements are not historical facts or statements of current conditions, but instead represent only the Company's beliefs regarding future events and performance, many of which, by their nature, are inherently uncertain and outside of the Company's control. These forward-looking statements reflect the Company's current views with respect to, among other things, the Company's financial performance; growth in revenue and earnings; business prospects and opportunities; and capital deployment plans and liquidity. In some cases, forward-looking statements can be identified by the use of words such as 'may,' 'should,' 'expects,' 'anticipates,' 'contemplates,' 'estimates,' 'believes,' 'plans,' 'projected,' 'predicts,' 'potential,' or 'hopes' or the negative of these or similar terms. The Company cautions readers not to place undue reliance upon any forward-looking statements, which are current only as of the date of this release and are subject to various risks, uncertainties, assumptions, or changes in circumstances that are difficult to predict or quantify. The forward-looking statements are based on management's current expectations and are not guarantees of future performance. The Company does not undertake or accept any obligation to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions, or circumstances on which any such statement is based, except as required by law. Factors that may cause actual results to differ materially from current expectations may emerge from time to time, and it is not possible for the Company to predict all of them; such factors include, among other things, changes in global, regional, or local economic, business, competitive, market and regulatory conditions, and those listed under the heading 'Risk Factors' and elsewhere in the Company's filings with the U.S. Securities and Exchange Commission (the 'SEC'), which are accessible on the SEC's website at The accompanying notes are an integral part of these unaudited consolidated financial statements. The accompanying notes are an integral part of these unaudited consolidated financial statements. RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES View source version on CONTACT: In Asia: SBC Medical Group Holdings Incorporated Hikaru Fukui / Head of Investor Relations E-mail:[email protected] the US: ICR LLC Bill Zima / Managing Partner Email:[email protected] KEYWORD: UNITED STATES UNITED KINGDOM SOUTHEAST ASIA JAPAN NORTH AMERICA ASIA PACIFIC EUROPE CALIFORNIA INDUSTRY KEYWORD: MEDICAL SUPPLIES SURGERY HEALTH MEDICAL DEVICES HEALTH TECHNOLOGY COSMETICS RETAIL OTHER HEALTH SOURCE: SBC Medical Group Holdings Incorporated Copyright Business Wire 2025. PUB: 05/15/2025 07:30 AM/DISC: 05/15/2025 07:29 AM
Business Wire
15-05-2025
- Business
- Business Wire
SBC Medical Group Holdings Announces First Quarter 2025 Financial Results
IRVINE, Calif.--(BUSINESS WIRE)--SBC Medical Group Holdings Incorporated (NASDAQ: SBC, 'SBC Medical' or the 'Company'), a global owner, operator and provider of management services and products to cosmetic treatment centers, today announced its financial results for the three months ended March 31, 2025. First Quarter 2025 Highlights Total revenues were $47 million, representing a 14% year-over-year decrease. Income from operations was $24 million, representing a 1% year-over-year decrease. Net Income attributable to SBC Medical Group was $22 million, representing a 15% year-over-year increase. Earnings per share, which is defined as net income attributable to the Company divided by the weighted average number of outstanding shares, was $0.21 for the three months ended March 31, 2025, representing a year-over-year increase of 5%. EBITDA 1, which is calculated by adding depreciation and amortization expense and impairment loss to income from operations was $25 million, representing a 3% year-over-year decrease. EBITDA margin 1 was 52% for the first quarter of 2025, compared to 46% for first quarter of 2024. Return on equity, which is defined as net income attributable to the Company divided by the average of shareholder's equity as of March 31, 2025, was 41% representing a year-over-year decrease of 10 percentage points. Number of partner clinics was 251 as of March 31, 2025, representing an increase of 36 clinics from March 31, 2024. Number of customers 2 in the last twelve months ended March 31, 2025, was 6.1 million, representing a 14% year-over-year increase. Repeat rate for customers 3 who visited franchisee's clinics twice or more was 71%. 1 EBITDA and EBITDA Margin are non-GAAP financial measures. For more information on non-GAAP financial measure, please see the section of 'Use of Non-GAAP Financial Measures' and the table captioned 'Unaudited Reconciliations of GAAP and Non-GAAP Results.' 2 The number of customers takes into account customers of SBC brand clinics, Rize Clinic and Gorilla Clinic, but does not take account customers of AHH Clinics 3 The number of customers takes into account customers of SBC brand clinics, Rize Clinic and Gorilla Clinic, but does not take account customers of AHH Clinics, but excluding free counseling Yoshiyuki Aikawa, Chairman and Chief Executive Officer of SBC Medical, said, 'SBC is actively preparing for strategic expansion by enhancing its platform, optimizing its profitability structure, and stabilizing its business through revised pricing strategies and adapting to changing market dynamics. In the first quarter of 2025, we were pleased to see the expansion of Medical Corporations (MCs) gaining traction in our franchising, procurement and rental business segments as global demand for aesthetic medical services continued to rise; meanwhile, revenue decrease in the quarter primarily reflected the discontinuation of our staffing business and divestures of Sky Net Academy ('SNA') and SBC Kijimadaira Resort ('Kijimadaira'). In the midst of this transition, operating margin improved from 45% in the first quarter 2024, to 51% in the first quarter 2025. Additionally, net income attributable to SBC Medical Group increased 15% year-over year, further demonstrating the strength of our business model transition and execution. As we move ahead, we remain confident in our ability to build a scalable franchise model while accelerating expansion across domestic and international markets, driving long-term value for shareholders and positioning the Company to capitalize on future opportunities.' First Quarter 2025 Financial Results Total revenues were $47 million, a decrease of 14% year-over-year reflecting the negative impact of the discontinuation of the staffing business and the disposal of subsidiaries partially offset by increased demand for medical materials and equipment from the expansion of Medical Corporations. Net income for the three months ended March 31, 2025 was $22 million, compared to $19 million in the same period of 2024. The increase was largely attributed to the impact of a special gain associated with the maturity of a life insurance policy. EBITDA was $25 million, an decrease of 3% year-over-year primarily driven by lower in revenue following the termination of the staffing services business and the deconsolidation of SNA and Kijimadaira. About SBC Medical SBC Medical, headquartered in Irvine, California and Tokyo, Japan, owns and provides management services and products to cosmetic treatment centers. The Company is primarily focused on providing comprehensive management services to franchise clinics, including but not limited to advertising and marketing needs across various platforms (such as social media networks), staff management (such as recruitment and training), booking reservations for franchise clinic customers, assistance with franchise employee housing rentals and facility rentals, construction and design of franchise clinics, medical equipment and medical consumables procurement (resale), the provision of cosmetic products to franchise clinics for resale to clinic customers, licensure of the use of patent-pending and non-patented medical technologies, trademark and brand use, IT software solutions (including but not limited to remote medical consultations), management of the franchise clinic's customer rewards program (customer loyalty point program), and payment tools for the franchise clinics. For more information, visit Use of Non-GAAP Financial Measures The Company uses non-GAAP measures, such as EBITDA, in evaluating its operating results and for financial and operational decision-making purposes. The Company believes that the non-GAAP financial measures help identify underlying trends in its business. The Company believes that the non-GAAP financial measures provide useful information about the Company's results of operations, enhance the overall understanding of the Company's past performance and future prospects and allow for greater visibility with respect to key metrics used by the Company's management in its financial and operational decision-making. The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The non-GAAP financial measures have limitations as analytical tools, and when assessing the Company's operating performance, cash flows or liquidity, investors should not consider them in isolation, or as a substitute for net loss, cash flows provided by operating activities or other consolidated statements of operations and cash flows data prepared in accordance with U.S. GAAP. The Company mitigates these limitations by reconciling the non-GAAP financial measures to the most comparable U.S. GAAP performance measures, all of which should be considered when evaluating the Company's performance. For more information on the non-GAAP financial measures, please see the table captioned 'Unaudited Reconciliations of GAAP and Non-GAAP Results.' Forward Looking Statements This press release contains forward-looking statements. Forward-looking statements are not historical facts or statements of current conditions, but instead represent only the Company's beliefs regarding future events and performance, many of which, by their nature, are inherently uncertain and outside of the Company's control. These forward-looking statements reflect the Company's current views with respect to, among other things, the Company's financial performance; growth in revenue and earnings; business prospects and opportunities; and capital deployment plans and liquidity. In some cases, forward-looking statements can be identified by the use of words such as 'may,' 'should,' 'expects,' 'anticipates,' 'contemplates,' 'estimates,' 'believes,' 'plans,' 'projected,' 'predicts,' 'potential,' or 'hopes' or the negative of these or similar terms. The Company cautions readers not to place undue reliance upon any forward-looking statements, which are current only as of the date of this release and are subject to various risks, uncertainties, assumptions, or changes in circumstances that are difficult to predict or quantify. The forward-looking statements are based on management's current expectations and are not guarantees of future performance. The Company does not undertake or accept any obligation to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions, or circumstances on which any such statement is based, except as required by law. Factors that may cause actual results to differ materially from current expectations may emerge from time to time, and it is not possible for the Company to predict all of them; such factors include, among other things, changes in global, regional, or local economic, business, competitive, market and regulatory conditions, and those listed under the heading 'Risk Factors' and elsewhere in the Company's filings with the U.S. Securities and Exchange Commission (the 'SEC'), which are accessible on the SEC's website at March 31, 2025 ASSETS Current assets: Cash and cash equivalents $ 132,055,823 $ 125,044,092 Accounts receivable 1,633,456 1,413,433 Accounts receivable – related parties 30,557,912 28,846,680 Inventories 1,694,765 1,494,891 Finance lease receivables, current – related parties 7,281,088 5,992,585 Customer loans receivable, current 8,903,724 10,382,537 Prepaid expenses and other current assets 32,970,169 11,276,802 Total current assets 215,096,937 184,451,020 Non-current assets: Property and equipment, net 8,523,351 8,771,902 Intangible assets, net 1,543,779 1,590,052 Long-term investments, net 3,703,699 3,049,972 Goodwill, net 4,780,616 4,613,784 Finance lease receivables, non-current – related parties 10,648,402 8,397,582 Operating lease right-of-use assets 5,152,104 5,267,056 Finance lease right-of-use assets 522,055 — Deferred tax assets 2,513,653 9,798,071 Customer loans receivable, non-current 4,525,883 5,023,551 Long-term prepayments 1,922,709 1,745,801 Long-term investments in MCs – related parties 18,691,785 17,820,910 Other assets 6,980,816 15,553,453 Total non-current assets 69,508,852 81,632,134 Total assets $ 284,605,789 $ 266,083,154 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 17,854,422 $ 13,875,179 Accounts payable – related parties 1,141,762 659,044 Current portion of long-term loans 66,950 96,824 Notes and other payables, current – related parties 1,422,976 26,255 Advances from customers 525,497 820,898 Advances from customers – related parties 10,155,134 11,739,533 Income tax payable 1,624,002 18,705,851 Operating lease liabilities, current 4,131,154 4,341,522 Finance lease liabilities, current 157,532 — Accrued liabilities and other current liabilities 8,564,250 8,103,194 Due to related party 2,822,537 2,823,590 Total current liabilities 48,466,216 61,191,890 Expand SBC MEDICAL GROUP HOLDINGS INCORPORATED UNAUDITED CONSOLIDATED BALANCE SHEETS — (Continued) March 31, 2025 December 31, 2024 Non-current liabilities: Long-term loans 6,798,045 6,502,682 Notes and other payables, non-current – related parties 12,413 5,334 Deferred tax liabilities 346,432 926,023 Operating lease liabilities, non-current 1,312,819 1,241,526 Finance lease liabilities, non-current 195,572 — Other liabilities 1,151,857 1,193,541 Total non-current liabilities 9,817,138 9,869,106 Total liabilities 58,283,354 71,060,996 Stockholders' equity: Preferred stock ($0.0001 par value, 20,000,000 shares authorized; no shares issued and outstanding as of March 31, 2025 and December 31, 2024) — — Common stock ($0.0001 par value, 400,000,000 shares authorized, 103,881,251 and 103,020,816 shares issued, 103,611,251 and 102,750,816 shares outstanding as of March 31, 2025 and December 31, 2024, respectively) 10,388 10,302 Additional paid-in capital 62,513,837 62,513,923 Treasury stock (at cost, 270,000 shares as of March 31, 2025 and December 31, 2024) (2,700,000 ) (2,700,000 ) Retained earnings 210,965,453 189,463,007 Accumulated other comprehensive loss (44,343,412 ) (54,178,075 ) Total SBC Medical Group Holdings Incorporated stockholders' equity 226,446,266 195,109,157 Non-controlling interests (123,831 ) (86,999 ) Total stockholders' equity 226,322,435 195,022,158 Total liabilities and stockholders' equity $ 284,605,789 $ 266,083,154 Expand The accompanying notes are an integral part of these unaudited consolidated financial statements. COMPREHENSIVE INCOME For the Three Months Ended March 31, 2025 2024 Revenues, net – related parties $ 45,257,145 $ 50,470,207 Revenues, net 2,071,556 4,337,835 Total revenues, net 47,328,701 54,808,042 Cost of revenues (including cost of revenues from related parties of $3,456,928 and $1,797,359 for the three months ended March 31, 2025 and 2024, respectively) 9,595,617 15,288,667 Gross profit 37,733,084 39,519,375 Operating expenses: Selling, general and administrative expenses 13,531,010 15,058,490 Total operating expenses 13,531,010 15,058,490 Income from operations 24,202,074 24,460,885 Other income (expenses): Interest income 55,333 17,689 Interest expense (6,207 ) (3,008 ) Other income 151,328 349,681 Other expenses (1,697,259 ) (1,436,656 ) Gain on redemption of life insurance policies 8,746,138 — Gain on disposal of subsidiary — 3,813,609 Total other income 7,249,333 2,741,315 Income before income taxes 31,451,407 27,202,200 Income tax expense 9,959,457 8,451,984 Net income 21,491,950 18,750,216 Less: net loss attributable to non-controlling interests (10,496 ) (7,536 ) Net income attributable to SBC Medical Group Holdings Incorporated $ 21,502,446 $ 18,757,752 Other comprehensive income (loss): Foreign currency translation adjustment $ 9,808,327 $ (10,193,852 ) Total comprehensive income 31,300,277 8,556,364 Less: comprehensive loss attributable to non-controlling interests (36,832 ) (92,000 ) Comprehensive income attributable to SBC Medical Group Holdings Incorporated $ 31,337,109 $ 8,648,364 Net income per share attributable to SBC Medical Group Holdings Incorporated* Basic and diluted $ 0.21 $ 0.20 Weighted average shares outstanding* Basic and diluted 103,276,637 94,192,433 Expand * Retrospectively restated for effect of reverse recapitalization on September 17, 2024. The accompanying notes are an integral part of these unaudited consolidated financial statements. Expand SBC MEDICAL GROUP HOLDINGS INCORPORATED UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS For the Three Months Ended March 31, 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 21,491,950 $ 18,750,216 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization expense 628,304 1,018,477 Non-cash lease expense 985,184 1,052,123 Provision for credit losses 25,102 152,579 Fair value change of long-term investments 140,581 938,511 Gain on disposal of subsidiary — (3,813,609 ) Gain on redemption of life insurance policies (8,746,138 ) — Gain on disposal of property and equipment (12,375 ) — Deferred income tax expense (benefit) 7,016,227 (360,582 ) Changes in operating assets and liabilities: Accounts receivable (147,925 ) (383,254 ) Accounts receivable – related parties (295,505 ) 4,775,935 Inventories (124,279 ) (34,802 ) Finance lease receivables – related parties (2,779,253 ) (814,608 ) Customer loans receivable 4,501,760 2,858,633 Prepaid expenses and other current assets (3,150,243 ) 610,059 Long-term prepayments 98,164 138,212 Other assets 318,351 (328,818 ) Accounts payable 3,235,017 (8,937,435 ) Accounts payable – related parties 441,481 — Notes payable – related parties (548,077 ) (1,104,968 ) Advances from customers (328,791 ) (1,451,008 ) Advances from customers – related parties (2,114,829 ) (161,936 ) Income tax payable (17,635,239 ) (6,552,783 ) Operating lease liabilities (1,036,605 ) (1,067,196 ) Accrued liabilities and other current liabilities 63,764 (1,604,603 ) Other liabilities (98,005 ) 3,032 NET CASH PROVIDED BY OPERATING ACTIVITIES 1,928,621 3,682,175 CASH FLOWS FROM INVESTING ACTIVITIES Purchase of property and equipment (253,725 ) (702,281 ) Purchase of convertible note — (1,700,000 ) Prepayments for property and equipment (501,253 ) — Advances to related parties — (367,579 ) Purchase of long-term investments (635,145 ) — Long-term loans to others (12,783 ) (44,865 ) Repayments from related parties 70,000 215,000 Repayments from others 30,680 21,422 Disposal of subsidiary, net of cash disposed of — (815,819 ) Proceeds from disposal of property and equipment 323,419 — NET CASH USED IN INVESTING ACTIVITIES (978,807 ) (3,394,122 ) Expand SBC MEDICAL GROUP HOLDINGS INCORPORATED UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS — (Continued) For the Three Months Ended March 31, 2025 2024 CASH FLOWS FROM FINANCING ACTIVITIES Borrowings from related parties 15,000 — Repayments of long-term loans (55,873 ) (30,354 ) Repayments of finance lease liabilities (223,454 ) — Repayments to related parties (16,053 ) (9,873 ) NET CASH USED IN FINANCING ACTIVITIES (280,380 ) (40,227 ) Effect of exchange rate changes 6,342,297 (7,089,208 ) NET CHANGE IN CASH AND CASH EQUIVALENTS 7,011,731 (6,841,382 ) CASH AND CASH EQUIVALENTS AS OF THE BEGINNING OF THE PERIOD 125,044,092 103,022,932 CASH AND CASH EQUIVALENTS AS OF THE END OF THE PERIOD $ 132,055,823 $ 96,181,550 SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION Cash paid for interest expense $ 6,207 $ 3,008 Cash paid for income taxes $ 20,577,290 $ 16,172,526 NON-CASH INVESTING AND FINANCING ACTIVITIES Property and equipment transferred from long-term prepayments $ 125,287 $ — Operating lease right-of-use assets obtained in exchange for operating lease liabilities $ 102,599 $ — Finance lease right-of-use assets obtained in exchange for finance lease liabilities $ 581,129 $ — Remeasurement of operating lease liabilities and right-of-use assets due to lease modifications $ 358,358 $ 1,078,611 Payables to related parties in connection with loan services provided $ 1,922,224 $ 10,951,451 Issuance of common stock as incentive shares $ 86 $ — Receivable from redemption of life insurance policies $ 17,735,717 $ — Expand The accompanying notes are an integral part of these unaudited consolidated financial statements. SBC MEDICAL GROUP HOLDINGS INCORPORATED Unaudited Reconciliations of GAAP and Non-GAAP Results
Yahoo
15-05-2025
- Business
- Yahoo
SBC Medical Group Holdings Announces First Quarter 2025 Financial Results
IRVINE, Calif., May 15, 2025--(BUSINESS WIRE)--SBC Medical Group Holdings Incorporated (NASDAQ: SBC, "SBC Medical" or the "Company"), a global owner, operator and provider of management services and products to cosmetic treatment centers, today announced its financial results for the three months ended March 31, 2025. First Quarter 2025 Highlights Total revenues were $47 million, representing a 14% year-over-year decrease. Income from operations was $24 million, representing a 1% year-over-year decrease. Net Income attributable to SBC Medical Group was $22 million, representing a 15% year-over-year increase. Earnings per share, which is defined as net income attributable to the Company divided by the weighted average number of outstanding shares, was $0.21 for the three months ended March 31, 2025, representing a year-over-year increase of 5%. EBITDA1, which is calculated by adding depreciation and amortization expense and impairment loss to income from operations was $25 million, representing a 3% year-over-year decrease. EBITDA margin1 was 52% for the first quarter of 2025, compared to 46% for first quarter of 2024. Return on equity, which is defined as net income attributable to the Company divided by the average of shareholder's equity as of March 31, 2025, was 41% representing a year-over-year decrease of 10 percentage points. Number of partner clinics was 251 as of March 31, 2025, representing an increase of 36 clinics from March 31, 2024. Number of customers2 in the last twelve months ended March 31, 2025, was 6.1 million, representing a 14% year-over-year increase. Repeat rate for customers3 who visited franchisee's clinics twice or more was 71%. 1 EBITDA and EBITDA Margin are non-GAAP financial measures. For more information on non-GAAP financial measure, please see the section of "Use of Non-GAAP Financial Measures" and the table captioned "Unaudited Reconciliations of GAAP and Non-GAAP Results."2 The number of customers takes into account customers of SBC brand clinics, Rize Clinic and Gorilla Clinic, but does not take account customers of AHH Clinics3 The number of customers takes into account customers of SBC brand clinics, Rize Clinic and Gorilla Clinic, but does not take account customers of AHH Clinics, but excluding free counseling Yoshiyuki Aikawa, Chairman and Chief Executive Officer of SBC Medical, said, "SBC is actively preparing for strategic expansion by enhancing its platform, optimizing its profitability structure, and stabilizing its business through revised pricing strategies and adapting to changing market dynamics. In the first quarter of 2025, we were pleased to see the expansion of Medical Corporations (MCs) gaining traction in our franchising, procurement and rental business segments as global demand for aesthetic medical services continued to rise; meanwhile, revenue decrease in the quarter primarily reflected the discontinuation of our staffing business and divestures of Sky Net Academy ("SNA") and SBC Kijimadaira Resort ("Kijimadaira"). In the midst of this transition, operating margin improved from 45% in the first quarter 2024, to 51% in the first quarter 2025. Additionally, net income attributable to SBC Medical Group increased 15% year-over year, further demonstrating the strength of our business model transition and execution. As we move ahead, we remain confident in our ability to build a scalable franchise model while accelerating expansion across domestic and international markets, driving long-term value for shareholders and positioning the Company to capitalize on future opportunities." First Quarter 2025 Financial Results Total revenues were $47 million, a decrease of 14% year-over-year reflecting the negative impact of the discontinuation of the staffing business and the disposal of subsidiaries partially offset by increased demand for medical materials and equipment from the expansion of Medical Corporations. Net income for the three months ended March 31, 2025 was $22 million, compared to $19 million in the same period of 2024. The increase was largely attributed to the impact of a special gain associated with the maturity of a life insurance policy. EBITDA was $25 million, an decrease of 3% year-over-year primarily driven by lower in revenue following the termination of the staffing services business and the deconsolidation of SNA and Kijimadaira. About SBC Medical SBC Medical, headquartered in Irvine, California and Tokyo, Japan, owns and provides management services and products to cosmetic treatment centers. The Company is primarily focused on providing comprehensive management services to franchise clinics, including but not limited to advertising and marketing needs across various platforms (such as social media networks), staff management (such as recruitment and training), booking reservations for franchise clinic customers, assistance with franchise employee housing rentals and facility rentals, construction and design of franchise clinics, medical equipment and medical consumables procurement (resale), the provision of cosmetic products to franchise clinics for resale to clinic customers, licensure of the use of patent-pending and non-patented medical technologies, trademark and brand use, IT software solutions (including but not limited to remote medical consultations), management of the franchise clinic's customer rewards program (customer loyalty point program), and payment tools for the franchise clinics. For more information, visit Use of Non-GAAP Financial Measures The Company uses non-GAAP measures, such as EBITDA, in evaluating its operating results and for financial and operational decision-making purposes. The Company believes that the non-GAAP financial measures help identify underlying trends in its business. The Company believes that the non-GAAP financial measures provide useful information about the Company's results of operations, enhance the overall understanding of the Company's past performance and future prospects and allow for greater visibility with respect to key metrics used by the Company's management in its financial and operational decision-making. The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The non-GAAP financial measures have limitations as analytical tools, and when assessing the Company's operating performance, cash flows or liquidity, investors should not consider them in isolation, or as a substitute for net loss, cash flows provided by operating activities or other consolidated statements of operations and cash flows data prepared in accordance with U.S. GAAP. The Company mitigates these limitations by reconciling the non-GAAP financial measures to the most comparable U.S. GAAP performance measures, all of which should be considered when evaluating the Company's performance. For more information on the non-GAAP financial measures, please see the table captioned "Unaudited Reconciliations of GAAP and Non-GAAP Results." Forward Looking Statements This press release contains forward-looking statements. Forward-looking statements are not historical facts or statements of current conditions, but instead represent only the Company's beliefs regarding future events and performance, many of which, by their nature, are inherently uncertain and outside of the Company's control. These forward-looking statements reflect the Company's current views with respect to, among other things, the Company's financial performance; growth in revenue and earnings; business prospects and opportunities; and capital deployment plans and liquidity. In some cases, forward-looking statements can be identified by the use of words such as "may," "should," "expects," "anticipates," "contemplates," "estimates," "believes," "plans," "projected," "predicts," "potential," or "hopes" or the negative of these or similar terms. The Company cautions readers not to place undue reliance upon any forward-looking statements, which are current only as of the date of this release and are subject to various risks, uncertainties, assumptions, or changes in circumstances that are difficult to predict or quantify. The forward-looking statements are based on management's current expectations and are not guarantees of future performance. The Company does not undertake or accept any obligation to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions, or circumstances on which any such statement is based, except as required by law. Factors that may cause actual results to differ materially from current expectations may emerge from time to time, and it is not possible for the Company to predict all of them; such factors include, among other things, changes in global, regional, or local economic, business, competitive, market and regulatory conditions, and those listed under the heading "Risk Factors" and elsewhere in the Company's filings with the U.S. Securities and Exchange Commission (the "SEC"), which are accessible on the SEC's website at SBC MEDICAL GROUP HOLDINGS INCORPORATEDUNAUDITED CONSOLIDATED BALANCE SHEETS March 31, 2025 December 31, 2024 ASSETS Current assets: Cash and cash equivalents $ 132,055,823 $ 125,044,092 Accounts receivable 1,633,456 1,413,433 Accounts receivable – related parties 30,557,912 28,846,680 Inventories 1,694,765 1,494,891 Finance lease receivables, current – related parties 7,281,088 5,992,585 Customer loans receivable, current 8,903,724 10,382,537 Prepaid expenses and other current assets 32,970,169 11,276,802 Total current assets 215,096,937 184,451,020 Non-current assets: Property and equipment, net 8,523,351 8,771,902 Intangible assets, net 1,543,779 1,590,052 Long-term investments, net 3,703,699 3,049,972 Goodwill, net 4,780,616 4,613,784 Finance lease receivables, non-current – related parties 10,648,402 8,397,582 Operating lease right-of-use assets 5,152,104 5,267,056 Finance lease right-of-use assets 522,055 — Deferred tax assets 2,513,653 9,798,071 Customer loans receivable, non-current 4,525,883 5,023,551 Long-term prepayments 1,922,709 1,745,801 Long-term investments in MCs – related parties 18,691,785 17,820,910 Other assets 6,980,816 15,553,453 Total non-current assets 69,508,852 81,632,134 Total assets $ 284,605,789 $ 266,083,154 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 17,854,422 $ 13,875,179 Accounts payable – related parties 1,141,762 659,044 Current portion of long-term loans 66,950 96,824 Notes and other payables, current – related parties 1,422,976 26,255 Advances from customers 525,497 820,898 Advances from customers – related parties 10,155,134 11,739,533 Income tax payable 1,624,002 18,705,851 Operating lease liabilities, current 4,131,154 4,341,522 Finance lease liabilities, current 157,532 — Accrued liabilities and other current liabilities 8,564,250 8,103,194 Due to related party 2,822,537 2,823,590 Total current liabilities 48,466,216 61,191,890 SBC MEDICAL GROUP HOLDINGS INCORPORATEDUNAUDITED CONSOLIDATED BALANCE SHEETS — (Continued) March 31, 2025 December 31, 2024 Non-current liabilities: Long-term loans 6,798,045 6,502,682 Notes and other payables, non-current – related parties 12,413 5,334 Deferred tax liabilities 346,432 926,023 Operating lease liabilities, non-current 1,312,819 1,241,526 Finance lease liabilities, non-current 195,572 — Other liabilities 1,151,857 1,193,541 Total non-current liabilities 9,817,138 9,869,106 Total liabilities 58,283,354 71,060,996 Stockholders' equity: Preferred stock ($0.0001 par value, 20,000,000 shares authorized; no shares issued and outstanding as of March 31, 2025 and December 31, 2024) — — Common stock ($0.0001 par value, 400,000,000 shares authorized, 103,881,251 and 103,020,816 shares issued, 103,611,251 and 102,750,816 shares outstanding as of March 31, 2025 and December 31, 2024, respectively) 10,388 10,302 Additional paid-in capital 62,513,837 62,513,923 Treasury stock (at cost, 270,000 shares as of March 31, 2025 and December 31, 2024) (2,700,000 ) (2,700,000 ) Retained earnings 210,965,453 189,463,007 Accumulated other comprehensive loss (44,343,412 ) (54,178,075 ) Total SBC Medical Group Holdings Incorporated stockholders' equity 226,446,266 195,109,157 Non-controlling interests (123,831 ) (86,999 ) Total stockholders' equity 226,322,435 195,022,158 Total liabilities and stockholders' equity $ 284,605,789 $ 266,083,154 The accompanying notes are an integral part of these unaudited consolidated financial statements. SBC MEDICAL GROUP HOLDINGS INCORPORATEDUNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS ANDCOMPREHENSIVE INCOME For the Three Months EndedMarch 31, 2025 2024 Revenues, net – related parties $ 45,257,145 $ 50,470,207 Revenues, net 2,071,556 4,337,835 Total revenues, net 47,328,701 54,808,042 Cost of revenues (including cost of revenues from related parties of $3,456,928 and $1,797,359 for the three months ended March 31, 2025 and 2024, respectively) 9,595,617 15,288,667 Gross profit 37,733,084 39,519,375 Operating expenses: Selling, general and administrative expenses 13,531,010 15,058,490 Total operating expenses 13,531,010 15,058,490 Income from operations 24,202,074 24,460,885 Other income (expenses): Interest income 55,333 17,689 Interest expense (6,207 ) (3,008 ) Other income 151,328 349,681 Other expenses (1,697,259 ) (1,436,656 ) Gain on redemption of life insurance policies 8,746,138 — Gain on disposal of subsidiary — 3,813,609 Total other income 7,249,333 2,741,315 Income before income taxes 31,451,407 27,202,200 Income tax expense 9,959,457 8,451,984 Net income 21,491,950 18,750,216 Less: net loss attributable to non-controlling interests (10,496 ) (7,536 ) Net income attributable to SBC Medical Group Holdings Incorporated $ 21,502,446 $ 18,757,752 Other comprehensive income (loss): Foreign currency translation adjustment $ 9,808,327 $ (10,193,852 ) Total comprehensive income 31,300,277 8,556,364 Less: comprehensive loss attributable to non-controlling interests (36,832 ) (92,000 ) Comprehensive income attributable to SBC Medical Group Holdings Incorporated $ 31,337,109 $ 8,648,364 Net income per share attributable to SBC Medical Group Holdings Incorporated* Basic and diluted $ 0.21 $ 0.20 Weighted average shares outstanding* Basic and diluted 103,276,637 94,192,433 * Retrospectively restated for effect of reverse recapitalization on September 17, 2024. The accompanying notes are an integral part of these unaudited consolidated financial statements. SBC MEDICAL GROUP HOLDINGS INCORPORATEDUNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS For the Three Months Ended March 31, 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 21,491,950 $ 18,750,216 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization expense 628,304 1,018,477 Non-cash lease expense 985,184 1,052,123 Provision for credit losses 25,102 152,579 Fair value change of long-term investments 140,581 938,511 Gain on disposal of subsidiary — (3,813,609 ) Gain on redemption of life insurance policies (8,746,138 ) — Gain on disposal of property and equipment (12,375 ) — Deferred income tax expense (benefit) 7,016,227 (360,582 ) Changes in operating assets and liabilities: Accounts receivable (147,925 ) (383,254 ) Accounts receivable – related parties (295,505 ) 4,775,935 Inventories (124,279 ) (34,802 ) Finance lease receivables – related parties (2,779,253 ) (814,608 ) Customer loans receivable 4,501,760 2,858,633 Prepaid expenses and other current assets (3,150,243 ) 610,059 Long-term prepayments 98,164 138,212 Other assets 318,351 (328,818 ) Accounts payable 3,235,017 (8,937,435 ) Accounts payable – related parties 441,481 — Notes payable – related parties (548,077 ) (1,104,968 ) Advances from customers (328,791 ) (1,451,008 ) Advances from customers – related parties (2,114,829 ) (161,936 ) Income tax payable (17,635,239 ) (6,552,783 ) Operating lease liabilities (1,036,605 ) (1,067,196 ) Accrued liabilities and other current liabilities 63,764 (1,604,603 ) Other liabilities (98,005 ) 3,032 NET CASH PROVIDED BY OPERATING ACTIVITIES 1,928,621 3,682,175 CASH FLOWS FROM INVESTING ACTIVITIES Purchase of property and equipment (253,725 ) (702,281 ) Purchase of convertible note — (1,700,000 ) Prepayments for property and equipment (501,253 ) — Advances to related parties — (367,579 ) Purchase of long-term investments (635,145 ) — Long-term loans to others (12,783 ) (44,865 ) Repayments from related parties 70,000 215,000 Repayments from others 30,680 21,422 Disposal of subsidiary, net of cash disposed of — (815,819 ) Proceeds from disposal of property and equipment 323,419 — NET CASH USED IN INVESTING ACTIVITIES (978,807 ) (3,394,122 ) SBC MEDICAL GROUP HOLDINGS INCORPORATEDUNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS — (Continued) For the Three Months EndedMarch 31, 2025 2024 CASH FLOWS FROM FINANCING ACTIVITIES Borrowings from related parties 15,000 — Repayments of long-term loans (55,873 ) (30,354 ) Repayments of finance lease liabilities (223,454 ) — Repayments to related parties (16,053 ) (9,873 ) NET CASH USED IN FINANCING ACTIVITIES (280,380 ) (40,227 ) Effect of exchange rate changes 6,342,297 (7,089,208 ) NET CHANGE IN CASH AND CASH EQUIVALENTS 7,011,731 (6,841,382 ) CASH AND CASH EQUIVALENTS AS OF THE BEGINNING OF THE PERIOD 125,044,092 103,022,932 CASH AND CASH EQUIVALENTS AS OF THE END OF THE PERIOD $ 132,055,823 $ 96,181,550 SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION Cash paid for interest expense $ 6,207 $ 3,008 Cash paid for income taxes $ 20,577,290 $ 16,172,526 NON-CASH INVESTING AND FINANCING ACTIVITIES Property and equipment transferred from long-term prepayments $ 125,287 $ — Operating lease right-of-use assets obtained in exchange for operating lease liabilities $ 102,599 $ — Finance lease right-of-use assets obtained in exchange for finance lease liabilities $ 581,129 $ — Remeasurement of operating lease liabilities and right-of-use assets due to lease modifications $ 358,358 $ 1,078,611 Payables to related parties in connection with loan services provided $ 1,922,224 $ 10,951,451 Issuance of common stock as incentive shares $ 86 $ — Receivable from redemption of life insurance policies $ 17,735,717 $ — The accompanying notes are an integral part of these unaudited consolidated financial statements. RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES SBC MEDICAL GROUP HOLDINGS INCORPORATEDUnaudited Reconciliations of GAAP and Non-GAAP Results For the Three Months Ended March 31, 2025 2024 Total revenues, net $ 47,328,701 $ 54,808,042 Income from operations 24,202,074 24,460,885 Depreciation and amortization expense 628,304 1,018,477 EBITDA 24,830,378 25,479,362 EBITDA margin 52 % 46 % View source version on Contacts In Asia:SBC Medical Group Holdings IncorporatedHikaru Fukui / Head of Investor RelationsE-mail: ir@ In the US:ICR LLCBill Zima / Managing PartnerEmail: Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
