Thu, May 15, 1:06 PM (60 days ago)
**SBC Medical Group Holdings Incorporated (SBC, Ticker: SBC)** **Q1 2025 Financial Summary:** **Revenue & Profit Margins:** - Total revenue: $47.33M (down 13.65% YoY) - Related party revenue: $45.26M - Non-related party revenue: $2.07M - Gross profit: $37.73M (down 4.52% YoY) - Operating income: $24.20M (down 1.06% YoY) - Net income: $21.49M (up 14.62% YoY) - Net income attributable to SBC: $21.50M (up 14.63% YoY) **Cash Flow:** - Net cash provided by operating activities: $1.93M (down 47.62% YoY) - Net cash used in investing activities: $0.98M (down 71.16% YoY) - Net cash used in financing activities: $0.28M (up 596.99% YoY) - Net change in cash and cash equivalents: $7.01M (up 202.49% YoY) **Earnings Changes:** - Earnings per share (EPS) - basic and diluted: $0.21 (up 5% YoY) **Quarterly Performance Discussion:** - Revenue decrease due to business expansion of medical corporations (MCs) and depreciation of Japanese Yen (JPY). - Gross profit decrease due to lower management services and other revenues with high gross margins. - Operating expenses decrease due to lower recruiting, depreciation, and office expenses, partially offset by higher consulting fees. - Net income increase due to higher other income, including a gain on redemption of life insurance policies. **Trends & Uncertainties:** - Positive trends: Business expansion of MCs, increased demand for medical equipment, and higher other income. - Uncertainties: Foreign exchange rate fluctuations, dependence on related party transactions, and potential impacts of regulatory changes. **Future Operations Impact:** - The company plans to maintain and strengthen its market position and brand in the cosmetic medical treatment management market. - It aims to grow its presence globally and deploy capital for investment opportunities in the expanding global medical aesthetics market. - The company expects to meet its working capital needs through cash flows from operations and borrowings from banks. - The company's share repurchase program signals confidence in its valuation and aims to return capital to shareholders. **Key Metrics:** - Current ratio: 2.17 (improved from 1.89 in Q1 2024) - Quick ratio: 1.89 (improved from 1.63 in Q1 2024) - Debt-to-equity ratio: 0.29 (improved from 0.34 in Q1 2024) - Return on assets (ROA): 7.51% (improved from 7.05% in Q1 2024) - Return on equity (ROE): 9.52% (improved from 9.19% in Q1 2024)