Airsculpt Technologies Inc
For the period ended Sep 30, 2024. Filed Nov 8, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Nov 8, 2024
AIRS$0.53-62.9%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-06-30; filed 2024-08-09.
0001870940-24-000035
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-11-08.
0001870940-24-000045
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 90 previous paragraphs and 92 current paragraphs.
56 unchanged; 31 reworded; 4 added; 3 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 7 previous and 7 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (4)
Current report
(2) This amount relates to settlement costs for non-recurring litigation of $0.9 million for the three and nine months ended September 30, 2024. This amount is accrued in "Accrued and other current liabilities" as of September 30, 2024. See Note 9 to the condensed consolidated financial statements included in this Quarterly Report on Form 10-Q for further discussion.
Current report
(2) This amount relates to settlement costs for non-recurring litigation of $0.9 million for the three and nine months ended September 30, 2024. This amount is accrued in "Accrued and other current liabilities" as of September 30, 2024. See Note 9 to the condensed consolidated financial statements included in this Quarterly Report on Form 10-Q for further discussion.
Current report
Cost of Service—Our cost of services decreased $0.4 million, or 2.3%, compared to the same period in 2023. The percentage decrease in cost of service is driven by the decrease in cases over the same period and offset by increases in nursing and medical supply expenses during the period. Cost of service was 41.8% and 38.8% as a percentage of revenue for the three months ended September 30, 2024 and 2023, respectively. This is primarily due to opening four de novo facilities in the quarter which caused a temporary 1% increase in cost of service as a percentage of revenue over the prior period as these facilities ramp up. The remaining increase was due to the decline in revenue and not being able to leverage certain fixed costs within cost of service like rent and certain nursing costs.
Current report
Nine Months Ended September 30, 2024 Compared to Nine Months Ended September 30, 2023
Removed paragraphs (3)
Previous report
Six Months Ended June 30, 2024 Compared to Six Months Ended June 30, 2023
Previous report
Cost of Service—Our cost of service decreased $1.1 million, or 2.9%, compared to the six months ended June 30, 2023. This decrease is consistent with the (2.8%) decrease in revenue over the same period.
Previous report
Certain trends in our business, including declining revenues and increased advertising costs, could make it difficult for us to meet certain financial covenants—particularly relating to leverage ratios—contained in the Credit Agreement (as defined below). Although we are in compliance with these covenants as of June 30, 2024, and expect to remain in compliance going forward, if trends in revenue continue to deteriorate, we believe that at some point in next twelve months we may be at risk of violating certain financial covenants. If we were to violate these covenants and were unable to obtain waivers of such violations or otherwise arrange for modified financial covenants with our lender syndicate, our business and results of operations could be materially and adversely affected. We will continue to monitor our compliance with all of our financial covenants and, if we feel that we are likely to violate any such covenant, we will seek to obtain the necessary relief.
Reworded paragraphs (31)
Previous wording
AirSculpt is an experienced, fast-growing national provider of body contouring procedures delivering a premium consumer experience. We provide custom body contouring using our proprietary AirSculpt® method that removes unwanted fat and tightens skin in a minimally invasive procedure, producing dramatic results. We opened a new center in Kansas City, KS in July 2024. We deliver our AirSculpt® procedures through a growing nationwide footprint of 28 centers across 19 states, Canada and the United Kingdom as of August 9, 2024.
Current wording
AirSculpt is an experienced, fast-growing national provider of body contouring procedures delivering a premium consumer experience. We provide custom body contouring using our proprietary AirSculpt® method that removes unwanted fat and tightens skin in a minimally invasive procedure, producing dramatic results. We opened new centers in Kansas City, KS in July 2024, Columbus, OH in August 2024, Deerfield, IL and Birmingham, MI in September 2024. We deliver our AirSculpt® procedures through a growing nationwide footprint of 31 centers across 20 states, Canada and the United Kingdom as of November 8, 2024.
Previous wording
For the three and six months ended June 30, 2024, we performed 3,949 and 7,695 cases, respectively, compared to 4,186 and 7,826 for the three and six months ended June 30, 2023, respectively. For the three and six months ended June 30, 2024, we generated approximately $51.0 million and $98.6 million of revenue, respectively, compared to $55.7 million and $101.5 million for the three and six months ended June 30, 2023, respectively. This represents approximately 8% decline in revenue for the three months ended June 30, 2024 over the same period in prior year and approximately 3% decline in revenue for the six months ended June 30, 2024 over the same period in prior year.
Current wording
For the three and nine months ended September 30, 2024, we performed 3,277 and 10,972 cases, respectively, compared to 3,426 and 11,252 for the three and nine months ended September 30, 2023, respectively. For the three and nine months ended September 30, 2024, we generated approximately $42.5 million and $141.2 million of revenue, respectively, compared to $46.8 million and $148.3 million for the three and nine months ended September 30, 2023, respectively. This represents approximately 9% decline in revenue for the three months ended September 30, 2024 over the same period in prior year and approximately 5% decline in revenue for the nine months ended September 30, 2024 over the same period in prior year.
Previous wording
For the six months ended June 30, 2024 and 2023, we define same-center case and revenue growth as the growth in each of our cases and revenue at facilities that were owned and operated during the six months ended June 30, 2024 and 2023, respectively. At facilities that were not owned or operated for the entirety of the prior year period, the current year period has been pro-rated to reflect only growth experienced during the portion of the six months ended June 30, 2024 in which such facilities were owned and operated during the six months ended June 30, 2023.We define same-center facilities and procedure rooms based on if a facility was owned or operated as of June 30, 2023.
Current wording
For the nine months ended September 30, 2024 and 2023, we define same-center case and revenue growth as the growth in each of our cases and revenue at facilities that were owned and operated during the nine months ended September 30, 2024 and 2023, respectively. At facilities that were not owned or operated for the entirety of the prior year period, the current year period has been pro-rated to reflect only growth experienced during the portion of the nine months ended September 30, 2024 in which such facilities were owned and operated during the nine months ended September 30, 2023.We define same-center facilities and procedure rooms based on if a facility was owned or operated as of September 30, 2023.
Previous wording
Our same-store revenue decline is primarily attributed to weaker than expected performance across the broader aesthetic and consumer retail industries, particularly related to customers that are more price sensitive.
Current wording
Our same-store revenue decline is primarily attributed to weaker than expected performance across the broader aesthetics and high-end retail industries.
Previous wording
We define Adjusted EBITDA as net (loss)/income excluding depreciation and amortization, net interest expense, income tax (benefit)/expense, restructuring and related severance costs, (gain)/loss on disposal of long-lived assets, and equity-based compensation.
Current wording
We define Adjusted EBITDA as net (loss)/income excluding depreciation and amortization, net interest expense, income tax expense, restructuring and related severance costs, loss/(gain) on disposal of long-lived assets, settlement costs for non-recurring litigation, and equity-based compensation.
Previous wording
We define Adjusted Net Income as net (loss)/income excluding restructuring and related severance costs, (gain)/loss on disposal of long-lived assets, equity-based compensation and the tax effect of these adjustments.
Current wording
We define Adjusted Net Income as net (loss)/income excluding restructuring and related severance costs, loss/(gain) on disposal of long-lived assets, settlement costs for non-recurring litigation, equity-based compensation and the tax effect of these adjustments.
Previous wording
For the three months ended June 30, 2024 and 2023, pre-opening de novo and relocation costs were $0.1 million and $0.8 million, respectively. For the six months ended June 30, 2024 and 2023, pre-opening de novo and relocation costs were $0.2 million and $0.9 million, respectively.
Current wording
For the three months ended September 30, 2024 and 2023, pre-opening de novo and relocation costs were $0.7 million and $0.5 million, respectively. For the nine months ended September 30, 2024 and 2023, pre-opening de novo and relocation costs were $0.8 million and $3.3 million, respectively.
Previous wording
Overview—Our financial results for the three months ended June 30, 2024 compared to the three months ended June 30, 2023 reflect the addition of two de novo centers which increased our procedure rooms by four.
Current wording
Overview—Our financial results for the three months ended September 30, 2024 compared to the three months ended September 30, 2023 reflect the addition of four de novo centers which increased our procedure rooms by eight.
Previous wording
Revenue—Our revenue decreased $4.7 million, or 8.4%, compared to the same period in 2023. The decrease is primarily attributed to weaker than expected performance across the broader aesthetics and high-end retail industries.
Current wording
Revenue—Our revenue decreased $4.2 million, or 9.1%, compared to the same period in 2023. The decrease is primarily attributed to weaker than expected performance across the broader aesthetics and high-end retail industries.
Previous wording
Selling, General and Administrative Expenses—Selling, general and administrative expenses increased $6.4 million, or 22.9%, for the three months ended June 30, 2024 compared to the same period in 2023. This increase is related to the additional expenses we incurred for marketing and corporate support as we grow our center count through de novo expansion and providing support for our centers. We expect our marketing and corporate support costs to continue to increase on an absolute dollar basis as we open de novo centers. Additionally, we incurred $3.7 million in severance costs in the three months ended June 30, 2024. Selling, general and administrative expenses as a percent of revenue was at 67.2% and 50.1% for the three months ended June 30, 2024 and 2023, respectively.
Current wording
Selling, General and Administrative Expenses—Selling, general and administrative expenses increased $0.5 million, or 1.9%, for the three months ended September 30, 2024 compared to the same period in 2023. This increase is related to the additional expenses we incurred for marketing and corporate support as we grow our center count through de novo expansion and providing support for our centers. We expect our marketing and corporate support costs to continue to increase on an absolute dollar basis as we open de novo centers. Selling, general and administrative expenses as a percent of revenue was at 59.9% and 53.5% for the three months ended September 30, 2024 and 2023, respectively. This increase is primarily driven by the decline in revenue and not being able to leverage certain fixed costs within selling, general and administrative costs.
Previous wording
Selling expenses consist of advertising costs for social, digital and traditional marketing and sales and marketing personnel. Total selling expenses were approximately $13.1 million and $9.4 million for the three months ended June 30, 2024 and 2023, respectively. Our customer acquisition costs were approximately $3,325 and $2,250 per customer in the three months ended June 30, 2024 and 2023, respectively. We intend to continue investing in our sales and marketing capabilities as we add new centers. Additionally, selling expenses as a percentage of revenue may fluctuate from quarter to quarter based on the timing and scope of our initiatives and the related impact to our revenue.
Current wording
Selling expenses consist of advertising costs for social, digital and traditional marketing and sales and marketing personnel. Total selling expenses were approximately $9.6 million and $9.4 million for the three months ended September 30, 2024 and 2023, respectively. Our customer acquisition costs were approximately $2,900 and $2,750 per customer in the three months ended September 30, 2024 and 2023, respectively. We intend to continue investing in our sales and marketing capabilities as we add new centers. Additionally, selling expenses as a percentage of revenue may fluctuate from quarter to quarter based on the timing and scope of our initiatives and the related impact to our revenue.
Previous wording
General and administrative expenses include employee-related expenses, including salaries and related costs (excluding physician and clinical cost included in cost of service), equity-based compensation, technology, operations, finance, legal, corporate office rent and human resources. General and administrative expenses were approximately $21.1 million and $18.5 million for the three months ended June 30, 2024 and 2023, respectively. This increase is related to the $3.7 million in severance costs incurred in the three months ended June 30, 2024.
Current wording
General and administrative expenses include employee-related expenses, including salaries and related costs (excluding physician and clinical cost included in cost of service), equity-based compensation, technology, operations, finance, legal, corporate office rent and human resources. General and administrative expenses were approximately $15.9 million and $15.6 million for the three months ended September 30, 2024 and 2023, respectively.
Previous wording
Depreciation and Amortization—Depreciation and amortization increased to approximately $2.9 million for the three months ended June 30, 2024 compared to $2.5 million for the same period in 2023. This increase is the result of having two additional de novo centers during the three months ended June 30, 2024 as compared to the 2023 period.
Current wording
Depreciation and Amortization—Depreciation and amortization increased to approximately $3.0 million for the three months ended September 30, 2024 compared to $2.6 million for the same period in 2023. This increase is the result of having four additional de novo centers during the three months ended September 30, 2024 as compared to the 2023 period.
Previous wording
Interest Expense, net—Interest expense was $1.5 million and $1.9 million for the three months ended June 30, 2024 and 2023, respectively. The decrease is due to the voluntary prepayment of $10.0 million of the principal balance of the term loans under the Credit Agreement on September 29, 2023.
Current wording
Interest Expense, net—Interest expense was $1.6 million and $1.8 million for the three months ended September 30, 2024 and 2023, respectively. The decrease is due to the voluntary prepayment of $10.0 million of the principal balance of the term loans under the Credit Agreement on September 29, 2023.
Previous wording
Income Tax Expense— Our effective tax rate is 50.6% and 48.8% for the three months ended June 30, 2024 and 2023, respectively. The main driver of the difference between the effective and statutory rate is non-deductible executive compensation under Section 162(m) of the Internal Revenue Code.
Current wording
Income Tax Expense— Our effective tax rate is (13.8)% and (89.2)% for the three months ended September 30, 2024 and 2023, respectively. The main driver of the difference between the effective and statutory rate is non-deductible executive compensation under Section 162(m) of the Internal Revenue Code.
Previous wording
Overview— Our financial results for the six months ended June 30, 2024 compared to the six months ended June 30, 2023 reflect the addition of two de novo centers which increased procedure rooms by four.
Current wording
Overview— Our financial results for the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023 reflect the addition of four de novo centers which increased procedure rooms by eight.
Previous wording
Revenue—Our revenue decreased $2.9 million, or 2.8%, compared to the same period in 2023. The decrease is primarily attributed to weaker than expected performance across the broader aesthetic and high-end retail industries.
Current wording
Revenue—Our revenue decreased $7.1 million, or 4.8%, compared to the same period in 2023. The decrease is primarily attributed to weaker than expected performance across the broader aesthetics and high-end retail industries.
Previous wording
Cost of Service—Our cost of services decreased $1.1 million, or 5.6%, compared to the same period in 2023. The percentage decrease in cost of service is consistent with the decrease in cases over the same period. Cost of service was 36.9% and 35.8% as a percentage of revenue for the three months ended June 30, 2024 and 2023, respectively.
Current wording
Cost of Service—Our cost of service decreased $1.5 million, or 2.7%, compared to the nine months ended September 30, 2023. The percentage decrease in cost of service is driven by the decrease in cases over the same period and partially offset by increases in nursing and rent related to our new facility openings during the period. Cost of service was 38.7% and 37.9% as a percentage of revenue for the nine months ended September 30, 2024 and 2023, respectively. This is primarily due to the decline in revenue and not being able to leverage certain fixed costs within cost of service like rent and certain nursing costs.
Previous wording
Selling, General and Administrative Expenses—Selling, general and administrative expenses decreased $1.7 million, or 3.4%, for the six months ended June 30, 2024 compared to the same period in 2023. This decrease is related to a decrease in our equity-based compensation expense (see Note 6 to the condensed consolidated financial statements included in this Quarterly Report on Form 10-Q for further discussion) partially offset by additional expenses we incurred for marketing and corporate support as we grow our center count through de novo expansion and providing support for our centers. We expect our marketing and corporate support costs to continue to increase on an absolute dollar basis as we open de novo centers. Selling, general and administrative expenses as a percent of revenue were 50.7% and 51.0% for the six months ended June 30, 2024 and 2023, respectively.
Current wording
Selling, General and Administrative Expenses—Selling, general and administrative expenses decreased $1.3 million, or 1.7%, for the nine months ended September 30, 2024 compared to the same period in 2023. This decrease is related to a decrease in our equity-based compensation expense (see Note 6 to the condensed consolidated financial statements included in this Quarterly Report on Form 10-Q for further discussion) partially offset by additional expenses we incurred for marketing and corporate support as we grow our center count through de novo expansion and providing support for our centers. We expect our marketing and corporate support costs to continue to increase on an absolute dollar basis as we open de novo centers. Selling, general and administrative expenses as a percent of revenue were 53.5% and 51.8% for the nine months ended September 30, 2024 and 2023, respectively.
Previous wording
Selling expenses consist of advertising costs for social, digital and traditional marketing and sales and marketing personnel. Total selling expenses were approximately $24.3 million and $18.0 million for the six months ended June 30, 2024 and 2023, respectively. Our customer acquisition costs were approximately $3,165 and $2,300 per customer in the six months ended June 30, 2024 and 2023, respectively. We intend to continue investing in our sales and marketing capabilities as we add new centers. Additionally, selling expenses as a percentage of revenue may fluctuate from quarter to quarter based on the timing and scope of our initiatives and the related impact to our revenue.
Current wording
Selling expenses consist of advertising costs for social, digital and traditional marketing and sales and marketing personnel. Total selling expenses were approximately $34.0 million and $27.4 million for the nine months ended September 30, 2024 and 2023, respectively. Our customer acquisition costs were approximately $3,095 and $2,400 per customer in the nine months ended September 30, 2024 and 2023, respectively. We intend to continue investing in our sales and marketing capabilities as we add new centers. Additionally, selling expenses as a percentage of revenue may fluctuate from quarter to quarter based on the timing and scope of our initiatives and the related impact to our revenue.
Previous wording
General and administrative expenses include employee-related expenses, including salaries and related costs (excluding physician and clinical cost included in cost of service), equity-based compensation, technology, operations, finance, legal, corporate office rent and human resources. General and administrative expense were approximately $25.7 million and $33.8 million for the six months ended June 30, 2024 and 2023, respectively. This reduction is due to a decrease in equity-based compensation (see Note 6 to the condensed consolidated financial statements included in this Quarterly Report on Form 10-Q for further discussion).
Current wording
General and administrative expenses include employee-related expenses, including salaries and related costs (excluding physician and clinical cost included in cost of service), equity-based compensation, technology, operations, finance, legal, corporate office rent and human resources. General and administrative expense were approximately $41.5 million and $49.4 million for the nine months ended September 30, 2024 and 2023, respectively. This reduction is due to a decrease in equity-based compensation (see Note 6 to the condensed consolidated financial statements included in this Quarterly Report on Form 10-Q for further discussion).
Previous wording
Depreciation and Amortization—Depreciation and amortization increased to approximately $5.7 million for the six months ended June 30, 2024 compared to $4.9 million for the same period in 2023. This increase is the result of having two additional de novo centers during the six months ended June 30, 2024 as compared to the 2023 period.
Current wording
Depreciation and Amortization—Depreciation and amortization increased to approximately $8.7 million for the nine months ended September 30, 2024 compared to $7.5 million for the same period in 2023. This increase is the result of having four additional de novo centers during the nine months ended September 30, 2024 as compared to the 2023 period.
Previous wording
Interest Expense, net—Interest expense decreased to $3.0 million from $3.6 million for the six months ended June 30, 2024 and 2023, respectively. The decrease is due to the lower principal balance resulting from the Company's voluntary $10 million prepayment made in 2023.
Current wording
Interest Expense, net—Interest expense decreased to $4.6 million from $5.5 million for the nine months ended September 30, 2024 and 2023, respectively. The decrease is due to the lower principal balance resulting from the Company's voluntary $10 million prepayment made in 2023.
Previous wording
Income Tax Expense—Our effective tax rate is 5.4% and 49.6% for the six months ended June 30, 2024 and 2023, respectively. The main driver of the difference between the effective and statutory rate is non-deductible executive compensation under Section 162(m) of the Internal Revenue Code.
Current wording
Income Tax Expense—Our effective tax rate is (38.5)% and 96.4% for the nine months ended September 30, 2024 and 2023, respectively. The main driver of the difference between the effective and statutory rate is non-deductible executive compensation under Section 162(m) of the Internal Revenue Code.
Previous wording
As of June 30, 2024, we had $9.9 million in cash and cash equivalents and an available amount of $5.0 million under our revolving credit facility. We do not have any letters of credit outstanding as of June 30, 2024.
Current wording
As of September 30, 2024, we had $6.0 million in cash and cash equivalents and an available amount of $5.0 million under our revolving credit facility. We do not have any letters of credit outstanding as of September 30, 2024.
Previous wording
The primary source of our operating cash flow is the collection of patient payments received prior to performing surgical procedures. For the six months ended June 30, 2024, our operating cash flow decreased by $11.6 million compared to the same period in 2023. The decrease is primarily attributed to weaker than expected revenue performance and an increase in our marketing investments during the six months ended June 30, 2024 as compared to the prior year period. At June 30, 2024, we had working capital of $(3.4) million compared to $(4.4) million at December 31, 2023.
Current wording
The primary source of our operating cash flow is the collection of patient payments received prior to performing surgical procedures. For the nine months ended September 30, 2024, our operating cash flow decreased by $10.5 million compared to the same period in 2023. The decrease is primarily attributed to weaker than expected revenue performance and an increase in our marketing investments during the nine months ended September 30, 2024 as compared to the prior year period. At September 30, 2024, we had working capital of $(12.5) million compared to $(4.4) million at December 31, 2023.
Previous wording
Net cash used in investing activities for the six months ended June 30, 2024 and 2023 was $5.6 million and $6.0 million, respectively. Investing activities during both periods were attributable to the relocation of multiple existing facilities and the preparation for the opening of de novo locations.
Current wording
Investing activities during both periods were attributable to the preparation for the opening of de novo locations and the relocation of multiple existing facilities. Net cash used in investing activities for the nine months ended September 30, 2024 and 2023 was $10.5 million and $8.1 million, respectively.
Previous wording
Net cash used in financing activities during the six months ended June 30, 2024 was $1.6 million. During the six months ended June 30, 2024, we made principal payments on our debt of $1.1 million and made payments of taxes withheld through vested equity-based compensation of $0.4 million.
Current wording
Net cash used in financing activities during the nine months ended September 30, 2024 was $2.4 million. During the nine months ended September 30, 2024, we made principal payments on our debt of $1.6 million and made payments of taxes withheld through vested equity-based compensation of $0.5 million.
Previous wording
Net cash used in financing activities for the six months ended June 30, 2023 was $1.3 million. For the six months ended June 30, 2023, we paid cash dividends to shareholders of $0.2 million and made principal payments on our debt of $1.1 million.
Current wording
Net cash used in financing activities for the nine months ended September 30, 2023 was $12.0 million. For the nine months ended September 30, 2023, we paid cash dividends to shareholders of $0.2 million and made principal payments on our debt of $11.6 million.
Previous wording
The carrying value of our total indebtedness was $70.7 million and $71.6 million, which includes unamortized deferred financing costs and issuance discount of $1.1 million and $1.2 million, as of June 30, 2024 and December 31, 2023, respectively.
Current wording
The carrying value of our total indebtedness was $70.1 million and $71.6 million, which includes unamortized deferred financing costs and issuance discount of $1.1 million and $1.2 million, as of September 30, 2024 and December 31, 2023, respectively.
Previous wording
Under the Credit Agreement, all outstanding loans bear interest based on either a base rate or SOFR plus an applicable per annum margin. The applicable per annum margin is 2.0% or 3.0% for base rate or SOFR, respectively, if the Company's total leverage ratio is equal to or greater than 2.0x. If the Company's total leverage ratio is equal to or greater than 1.0x and less than 2.0x, the applicable per annum margin is 1.5% or 2.5% for base rate or SOFR, respectively. If the Company's total leverage ratio is below 1.0x, the applicable per annum margin is 1.0% or 2.0% for base rate or SOFR, respectively. As of June 30, 2024, the interest rate was 7.83%.
Current wording
Under the Credit Agreement, all outstanding loans bear interest based on either a base rate or SOFR plus an applicable per annum margin. The applicable per annum margin is 2.0% or 3.0% for base rate or SOFR, respectively, if the Company's total leverage ratio is equal to or greater than 2.0x. If the Company's total leverage ratio is equal to or greater than 1.0x and less than 2.0x, the applicable per annum margin is 1.5% or 2.5% for base rate or SOFR, respectively. If the Company's total leverage ratio is below 1.0x, the applicable per annum margin is 1.0% or 2.0% for base rate or SOFR, respectively.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
On September 13, 2024, the Company amended the Credit Agreement to modify certain financial condition covenants. As such, for the period of September 13, 2024 through June 30, 2025, the applicable per annum margin is 2.5% or 3.5% for base rate or SOFR, respectively, if the Company's total leverage ratio is equal to or greater than 2.0x. If the Company's total leverage ratio is equal to or greater than 1.0x and less than 2.0x, the applicable per annum margin is 2.0% or 3.0% for base rate or SOFR, respectively. If the Company's total leverage ratio is below 1.0x, the applicable per annum margin is 1.5% or 2.5% for base rate or SOFR, respectively. As of September 30, 2024, the interest rate was 7.85%.