Candela Medical, Inc.
We are a leading provider of advanced medical device solutions for a broad range of aesthetic applications. Our brands and products have been recognized for their innovation and as leaders in the high growth medical aesthetics space for almost 40 years. We provide energy-based solutions for primarily elective, cash pay procedures that utilize our leading technologies in laser, pulsed light, radiofrequency and microneedling. Our brand promise of “Science. Results. Trust.” guides our commitment to patients who can expect efficacious and clinically proven results when receiving a procedure involving a Candela device. We seek to be the partner of choice for aesthetic practitioners by bringing the best technology solutions to their practices. Through our category-leading products, innovative treatments, robust clinical evidence, extensive post-sale support and other value drivers, we facilitate practice growth and a quick return on their investment. Our products enable highly-profitable procedures for our customers, who, on average, recoup the cost of a Candela device in less than six months. We market and sell our solutions to dermatologists, plastic surgeons, aesthetic surgeons, medical aesthetics spas, aesthetic business chains and other qualified medical and aesthetic practitioners. Candela’s reputation with customers is evident in our largest global markets as our Net Promoter Score, or NPS, is 48%, four times our competitors’ average and 60% higher than our next highest competitor. We have a large active installed base of nearly 44,000 devices globally as of June 30, 2021 and more than 50% of our product sales directly to customers and 65% of our total revenues in 2020 came from existing Candela customers, reflecting the quality of our products and consumables, post-sale support services, and brand loyalty. Our 2020 service revenue, which comprised approximately 20% of overall revenue, showed stability despite our customers being impacted by COVID-19. We have extensive global commercial and supply chain operations. We sell and market our products directly in 18 countries, including our largest markets of the United States, China, Japan and Western Europe, and indirectly in 66 countries throughout the world. We believe we have the largest commercial infrastructure among our peers, which is comprised of approximately 400 employees across sales, clinical training, and post-sale service and support within our Asia Pacific, or APAC, Europe, Middle East and Africa, or EMEA, and Americas regions. We offer extensive clinical education and post-sales support to our customers, including clinical training, product technical and service support, and practice marketing support to help drive patient volume and grow their practices. Further, we offer on-site device maintenance and repair services, including regularly scheduled maintenance, to maximize the amount of time our customers’ devices are available for patient procedures. We focus on establishing and using clinical evidence to support the use of our products, optimize patient outcomes, strengthen our marketing claims, and drive customer awareness and utilization of our products. We believe our focus on establishing clinical evidence for the efficacy of our products and providing clinical education for practitioners differentiates us from our competitors and is an important driver for customer adoption. Since our inception, clinical studies using our products have been published in over 2,500 peer-reviewed articles, and we conduct over 5,800 virtual and in-person educational forums annually. Our commitment to innovation has driven our reputation as a market leader in the medical aesthetics device industry. Our current core technological capabilities cover lasers, including solid state, pulsed dye, non-ablative fractional, CO2, and picosecond lasers, as well as intense pulsed light, or IPL, radiofrequency, or RF, and microneedling (including mechanical and RF-based microneedling). We offer category-leading products for the treatment of permanent hair reduction, pigmentation, tattoos, vascular abnormalities, wrinkles, and fractional resurfacing, as well as other fast-growing franchises such as skin tightening. We have a track record of next-generation product development that leverages our strong R&D capabilities in energy-based, RF, and microneedling technologies and our clinical understanding of aesthetic procedures. Since inception we have developed over 80 products and plan to launch new products every year to grow our product portfolio. Our R&D pipeline is focused on continued development of world-class aesthetic devices, including both new platform technologies as well as upgrades to our existing platforms. Additionally, we have supplemented our product portfolio by selectively acquiring and licensing technologies that we can leverage using our global commercial and customer support capabilities. We protect our innovation with a comprehensive patent portfolio of approximately 130 issued patents and 55 pending patent applications as of June 30, 2021. While our business was impacted by COVID-19 during 2020, we have seen a strong recovery in demand once lockdowns were gradually lifted and we returned to pre-COVID growth in 2021. Our revenue increased to approximately $209 million for the six months ended June 30, 2021, from approximately $140 million for the six months ended June 30, 2020 and from $189 million for the six months ended June 30, 2019. For the six months ended June 30, 2021 and 2020, we recorded net income of approximately $15 million and net loss of approximately $35 million, respectively, and Adjusted EBITDA of approximately $38 million and $2 million, respectively. Our revenue decreased to approximately $322 million for the year ended December 31, 2020 from approximately $390 million for the year ended December 31, 2019, due to the impact of the COVID-19 pandemic. For the years ended December 31, 2020 and 2019, we recorded net loss of approximately $44 million and $35 million, respectively, and Adjusted EBITDA of approximately $25 million and $24 million, respectively. Candela Corporation was formed in 1970 and Syneron Medical Ltd. was formed in 2000. Our Company was formed in 2010, when Candela Corporation and Syneron Medical Ltd. merged, bringing together two leading, innovative companies in the medical aesthetics space. In 2017, the Sponsor completed an acquisition of the Company. Our holding company, Candela Medical, Inc. was incorporated in Delaware on July 9, 2021. Substantially concurrently with the pricing of this offering, there will be a restructuring as a result of which Candela Medical, Inc. will become the holding company of the business conducted by Dion Holdco Limited and its subsidiaries. Our principal offices are located at 251 Locke Drive, Marlborough, MA.