SBC Medical Group Holdings Incorporated(SBC) - 2024 Q4 - Annual Results

Financial Performance - Total revenues for Q4 2024 were $44 million, a 29% year-over-year decrease, while full year revenues were$ 205 million, representing a 6% year-over-year increase[4][6]. - Gross profit for Q4 2024 was $34 million, a 22% year-over-year decrease, and for the full year, it was$ 156 million, a 14% year-over-year increase[4][6]. - Net income attributable to SBC Medical Group for Q4 2024 was $7 million, a 54% year-over-year decrease, while for the full year, it was$ 47 million, an 18% year-over-year increase[4][6][7]. - EBITDA for Q4 2024 was $21 million, a 22% year-over-year decrease, while for the full year, it was$ 89 million, an 8% year-over-year increase[4][6]. - Return on equity for the full year 2024 was 28%, representing a year-over-year decrease of 4 percentage points[4]. - Total revenues for 2024 reached $205,415,542, an increase of 6.5% from$ 193,542,423 in 2023[31]. - Net income attributable to SBC Medical Group Holdings for 2024 was $46,614,275, up from$ 39,370,036 in 2023, representing an increase of 18.4%[31]. - Gross profit for 2024 was $156,050,507, compared to$ 137,304,038 in 2023, reflecting a growth of 13.6%[31]. - Operating expenses for 2024 totaled $85,746,797, an increase from$ 66,643,972 in 2023, representing a rise of 28.6%[31]. - EBITDA for the year ended December 31, 2024, was $89,162,052, an increase from$ 82,907,008 in 2023, resulting in an EBITDA margin of 43%[38]. Customer and Market Growth - The number of partner clinics increased to 251 as of December 31, 2024, representing an increase of 43 clinics from the previous year[4]. - The total number of customers served in the last twelve months was 6.03 million, a 15% year-over-year increase, with a repeat rate exceeding 70%[5][11]. - The company expects the aesthetic dermatology market to continue expanding in FY2025, despite anticipated intensified competition[12]. Strategic Initiatives - The company plans to revise its franchise fee structure starting in April 2025 to support long-term expansion of its franchise clinic network[12][13]. - SBC Medical acquired Aesthetic Healthcare Holdings Pte. in Singapore, establishing a strategic business hub in Asia[9]. Balance Sheet and Cash Flow - Total liabilities decreased to $71,060,996 in 2024 from$ 114,995,022 in 2023, a reduction of 38.3%[29]. - Stockholders' equity increased to $195,022,158 in 2024, up from$ 143,810,249 in 2023, marking a growth of 35.6%[29]. - Cash provided by operating activities was $20,582,933 in 2024, down from$ 50,670,322 in 2023, a decrease of 59.4%[34]. - The company reported a foreign currency translation adjustment loss of $16,557,607 in 2024, compared to a loss of$ 12,855,686 in 2023[31]. - The number of weighted average shares outstanding increased to 96,561,041 in 2024 from 94,192,433 in 2023[31]. - The company incurred an impairment loss on intangible assets of $15,058,965 in 2024, with no such loss reported in 2023[31]. - As of December 31, 2024, the net cash provided by financing activities was$ 22,965,400, a significant increase from $6,135,368 in 2023[36]. - The company reported a net increase in cash and cash equivalents of$ 22,021,160 for the year, compared to $51,284,938 in the previous year[36]. - The income from operations for the year ended December 31, 2024, was$ 70,303,710, slightly down from $70,660,066 in 2023[38]. - Cash paid for interest expense decreased to$ 28,300 in 2024 from $45,292 in 2023[36]. - The cash and cash equivalents at the end of the year increased to$ 125,044,092 from $103,022,932 at the beginning of the year[36]. - The company reported net cash paid for income taxes of$ 30,239,002 in 2024, up from $17,842,407 in 2023[36]. - Borrowings from related parties decreased to$ 5,481,787 in 2024 from $12,310,106 in 2023[36]. - The company recognized a deemed contribution of$ 1,473,571 in connection with the disposal of subsidiaries in 2024[36].