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biote (BTMD) - 2024 Q3 - Quarterly Report
BTMDbiote (BTMD)2024-11-12 22:16
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Revenue and Income - Total revenue for the three months ended September 30, 2024, was 51,384,000,anincreaseof12.051,384,000, an increase of 12.0% compared to 45,557,000 for the same period in 2023[8] - Product revenue reached 49,806,000forthethreemonthsendedSeptember30,2024,upfrom49,806,000 for the three months ended September 30, 2024, up from 44,831,000 in the prior year, reflecting a growth of 11.0%[8] - Net income attributable to biote Corp. stockholders for the three months ended September 30, 2024, was 10,702,000,comparedto10,702,000, compared to 7,530,000 for the same period in 2023, representing a 42.9% increase[8] - The company reported a net loss of 3,437,000fortheninemonthsendedSeptember30,2024,comparedtoanetlossof3,437,000 for the nine months ended September 30, 2024, compared to a net loss of 14,883,000 for the same period in 2023[8] - The company reported a net income of 10,702,000forthequarterendedJune30,2024,asignificantimprovementcomparedtothenetlossreportedinpreviousquarters[9]−NetincomeattributabletoBiotestockholdersforthethreemonthsendedSeptember30,2024,was10,702,000 for the quarter ended June 30, 2024, a significant improvement compared to the net loss reported in previous quarters[9] - Net income attributable to Biote stockholders for the three months ended September 30, 2024, was 10.7 million, compared to 7.5millionforthesameperiodin2023,representinganincreaseof42.97.5 million for the same period in 2023, representing an increase of 42.9%[63] Expenses and Liabilities - Selling, general and administrative expenses for the three months ended September 30, 2024, were 24,028,000, slightly higher than 23,791,000inthesameperiodlastyear[8]−Totalliabilitiesincreasedto23,791,000 in the same period last year[8] - Total liabilities increased to 228,076,000 as of September 30, 2024, compared to 191,841,000asofDecember31,2023[5]−ThenetlossforthequarterendedSeptember30,2024,was191,841,000 as of December 31, 2023[5] - The net loss for the quarter ended September 30, 2024, was 10,368,000, compared to a net loss of 7,087,000forthepreviousquarter[9]−Share−basedcompensationexpensesforthequartertotaled7,087,000 for the previous quarter[9] - Share-based compensation expenses for the quarter totaled 2,245,000, indicating an increase from 2,841,000inthepriorquarter[9]−Theaccumulateddeficitincreasedto2,841,000 in the prior quarter[9] - The accumulated deficit increased to 124,717,000 as of September 30, 2024, compared to 31,931,000atMarch31,2024[9]−Thecompanyincurred31,931,000 at March 31, 2024[9] - The company incurred 66,149 million in net cash used in financing activities, compared to 11,855millioninthepreviousyear[12]StockandShareholderInformation−Thecompanyhad38,819,066sharesissuedasofSeptember30,2024,withastockholders′deficitof11,855 million in the previous year[12] Stock and Shareholder Information - The company had 38,819,066 shares issued as of September 30, 2024, with a stockholders' deficit of 126,824,000[6] - The balance of Class A common shares decreased to 31,112,663 shares as of September 30, 2024, down from 34,064,232 shares at March 31, 2024[9] - The total stockholders' deficit attributable to biote Corp. was 40,522,000asofSeptember30,2023[10]−Thetotalnumberofstockoptionsoutstandingincreasedfrom3,686,536inSeptember2023to6,298,547inSeptember2024forthethree−monthperiod[64]−TheCompanyapprovedasharerepurchaseprogramauthorizingtherepurchaseofupto40,522,000 as of September 30, 2023[10] - The total number of stock options outstanding increased from 3,686,536 in September 2023 to 6,298,547 in September 2024 for the three-month period[64] - The Company approved a share repurchase program authorizing the repurchase of up to 20.0 million of its outstanding Class A common stock, with a remaining balance of 14.4millionasofSeptember30,2024[60]AcquisitionsandStrategicInitiatives−Futurestrategiesincludepotentialmarketexpansionandthedevelopmentofnewproductstoenhancerevenuestreams[4]−TheCompanyacquiredF.H.InvestmentsInc.foratotalconsiderationof14.4 million as of September 30, 2024[60] Acquisitions and Strategic Initiatives - Future strategies include potential market expansion and the development of new products to enhance revenue streams[4] - The Company acquired F.H. Investments Inc. for a total consideration of 8.9 million, including 8.4millionincashanda8.4 million in cash and a 0.5 million earnout contingent on operating metrics[21] - The Company executed an asset purchase agreement with Simpatra for 1.5millionincashand389,105sharesofcommonstock,withafutureearnoutof194,553sharesbasedonfinancialtargets[25]−TheacquisitionofBioSanaIDLLCwascompletedforcashconsiderationof1.5 million in cash and 389,105 shares of common stock, with a future earnout of 194,553 shares based on financial targets[25] - The acquisition of BioSana ID LLC was completed for cash consideration of 0.7 million, with a potential earnout of up to 0.1millionbasedonoperatingmetrics[27]CashFlowandInvestments−Netcashprovidedbyoperatingactivitiesincreasedto0.1 million based on operating metrics[27] Cash Flow and Investments - Net cash provided by operating activities increased to 32,875 million, compared to 19,927millionintheprioryear[12]−Cashandcashequivalentsattheendoftheperiodwere19,927 million in the prior year[12] - Cash and cash equivalents at the end of the period were 38,225 million, down from 65,575millionattheendofthepreviousyear[12]−Netcashusedininvestingactivitieswas65,575 million at the end of the previous year[12] - Net cash used in investing activities was 17,487 million, an improvement from 21,709millionintheprioryear[12]−Thecompanyincurred21,709 million in the prior year[12] - The company incurred 0.4 million in acquisition-related costs during the nine months ended September 30, 2024, primarily for legal and consulting services[24] Litigation and Settlements - The company is currently involved in litigation with Right Value Drug Stores, which seeks 1.2millionpermonthuntiltrial,withthetrialscheduledforJune24,2025[66]−AsettlementagreementwithDr.GaryS.DonovitzwasexecutedonApril23,2024,involvingarepurchaseofsharesforapproximately1.2 million per month until trial, with the trial scheduled for June 24, 2025[66] - A settlement agreement with Dr. Gary S. Donovitz was executed on April 23, 2024, involving a repurchase of shares for approximately 76.9 million over three years[68] - The company recorded a jury verdict awarding 4.7millioninattorneys′feesagainstDonovitz,withpotentialadditionalfeesof4.7 million in attorneys' fees against Donovitz, with potential additional fees of 0.2 million[68] Inventory and Assets - Total inventory, net as of September 30, 2024, was 16,200,000,adecreasefrom16,200,000, a decrease from 17,307,000 as of December 31, 2023[32] - The company reported a net product inventory of 6,906,000forpelletsasofSeptember30,2024,upfrom6,906,000 for pellets as of September 30, 2024, up from 5,928,000 as of December 31, 2023[32] - The identifiable intangible assets from the acquisition of Asteria Health included customer relationships valued at 1.3millionandanon−competeagreementvaluedat1.3 million and a non-compete agreement valued at 0.2 million[22] Tax and Compliance - The Company recorded income tax expense of 3.2millionand3.2 million and 3.9 million for the three months ended September 30, 2024 and 2023, respectively, and 5.7millionand5.7 million and 5.4 million for the nine months ended September 30, 2024 and 2023, respectively[59] - The company is classified as a smaller reporting company and is not required to provide certain market risk disclosures[115]