SmileDirectClub, Inc.

CIK:0001775625|SEC Filings

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Total revenues	$ 101,798	$ 125,796	$ 221,575	$ 277,442
Cost of revenues	28,884	34,075	61,776	77,141
Gross profit	72,914	91,721	159,799	200,301
Marketing and selling expenses	49,646	71,191	121,847	167,902
General and administrative expenses	59,748	72,320	124,912	143,113
Lease abandonment and impairment of long-lived assets	4,811	0	5,758	1,232
Restructuring and other related costs	3,709	3,168	11,463	14,700
Loss from operations	(45,000)	(54,958)	(104,181)	(126,646)
Interest expense	8,527	4,454	16,236	6,010
Other expense (income)	(223)	5,818	(1,707)	7,241
Net loss before provision for income tax expense (benefit)	(53,304)	(65,230)	(118,710)	(139,897)
Provision for income tax expense (benefit)	492	256	813	(1,207)
Net loss	(53,796)	(65,486)	(119,523)	(138,690)
Net loss attributable to noncontrolling interest	(36,022)	(45,181)	(80,330)	(95,804)
Net loss attributable to SmileDirectClub, Inc.	$ (17,774)	$ (20,305)	$ (39,193)	$ (42,886)
Earnings (loss) per share of Class A common stock:
Basic (USD per share)	$ (0.13)	$ (0.17)	$ (0.30)	$ (0.36)
Diluted (USD per share)	$ (0.13)	$ (0.17)	$ (0.30)	$ (0.36)
Weighted average shares outstanding:
Basic (in shares)	132,422,182	120,818,400	131,103,171	120,507,211
Diluted (in shares)	401,045,683	389,665,923	399,823,910	389,483,239
Common Class A
Earnings (loss) per share of Class A common stock:
Basic (USD per share)	$ (0.13)	$ (0.17)	$ (0.30)	$ (0.36)
Diluted (USD per share)	$ (0.13)	$ (0.17)	$ (0.30)	$ (0.36)
Excluding Financing Revenue
Total revenues	$ 94,702	$ 116,802	$ 207,537	$ 259,314
Financing Revenue
Total revenues	$ 7,096	$ 8,994	$ 14,038	$ 18,128

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Operating Activities
Net loss	$ (119,523)	$ (138,690)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	31,391	38,496
Deferred loan cost amortization	3,484	2,329
Equity-based compensation	11,975	13,866
Paid in kind interest expense	2,549	0
Asset impairment and related charges	5,836	6,300
Other non-cash operating activities	2,968	1,102
Changes in operating assets and liabilities:
Accounts receivable	9,473	22,147
Inventories	8,762	(2,307)
Prepaid and other current assets	(3,045)	(6,377)
Accounts payable	5,436	16,726
Accrued liabilities	(10,987)	(29,790)
Deferred revenue	1,263	(2,906)
Net cash used in operating activities	(50,418)	(79,104)
Investing Activities
Purchases of property, plant and equipment	(18,285)	(32,872)
Net cash used in investing activities	(18,285)	(32,872)
Financing Activities
Repurchase of Class A shares to cover employee tax withholdings	(715)	(2,340)
Proceeds from sale of Class A common stock under public offerings	798	0
Proceeds from stock purchase plan	276	429
Borrowings of long-term debt	8,000	54,920
Payments of issuance costs	0	(5,426)
Payments of finance leases	0	(4,808)
Other	32	2,553
Net cash provided by financing activities	8,391	45,328
Effect of exchange rates change on cash flow activities	(94)	52
Decrease in cash and restricted cash	(60,406)	(66,596)
Cash and restricted cash at beginning of period	118,398	224,860
Cash and restricted cash at end of period	$ 57,992	$ 158,264

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
ASSETS
Cash	$ 28,934	$ 93,120
Accounts receivable, net	130,131	143,082
Inventories	35,557	44,387
Prepaid and other current assets	17,871	16,830
Total current assets	212,493	297,419
Restricted cash	29,058	25,278
Accounts receivable, net, non-current	48,646	45,168
Property, plant and equipment, net	175,078	190,087
Operating lease right-of-use assets	13,309	21,141
Other assets	20,128	17,970
Total assets	498,712	597,063
LIABILITIES AND EQUITY (DEFICIT)
Accounts payable	35,686	30,513
Accrued liabilities	54,524	65,937
Deferred revenue	14,909	13,646
Other current liabilities	6,608	6,704
Total current liabilities	111,727	116,800
Long-term debt, net of current portion	863,412	849,379
Operating lease liabilities, net of current portion	13,265	16,082
Other long-term liabilities	419	0
Total liabilities	988,823	982,261
Equity (Deficit)
Additional paid-in-capital	489,344	475,034
Accumulated other comprehensive income	439	430
Accumulated deficit	(420,918)	(381,725)
Noncontrolling interest	(576,636)	(496,596)
Warrants	17,620	17,620
Total equity (deficit)	(490,111)	(385,198)
Total liabilities and equity (deficit)	498,712	597,063
Common Class A
Equity (Deficit)
Common stock	13	12
Common Class B
Equity (Deficit)
Common stock	$ 27	$ 27