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smile DIRECT CLUB SmileDirectClub Reports First Quarter 2021 Financial Results May 10 , 2021 NASHVILLE , Tenn . , May 10 , 2021 ( GLOBE NEWSWIRE ) -- Smile DirectClub . Inc. ( Nasdaq : SDC ) , the next generation oral care company with the first medtech platform for teeth straightening , today announced its financial results for the first quarter ended March 31 , 2021 . First Quarter 2021 Financial Highlights • First quarter total revenue of $ 199 million , up 8 % over the fourth quarter of 2020 and 1 % over the prior year period . • First quarter net loss of $ ( 96 ) million , a decline of 11 % over the prior year period , and includes the $ 48 million of loss associated with the retirement of the prior debt facility . • First quarter Adjusted EBITDA of $ 5 million , an increase of $ 72 million over the prior year period . • First quarter diluted EPS of $ ( 0.25 ) , an 11 % improvement over the prior year period . Excluding one - time items such as debt retirement and store closure costs , adjusted first quarter diluted EPS would have been $ ( 0.12 ) . Key Operating Metrics • First quarter 2021 unique aligner shipments of 106,345 . ● Average aligner gross sales price ( " ASP " ) of $ 1,860 for the first quarter of 2021 , compared to $ 1,770 for the first quarter of 2020 . Guidance • As disclosed in an 8K filed on May 3 , 2021 , in light of the cyber - attack and the associated business disruption , the Company is adjusting revenue expectations for Q2 based on its best estimates of the possible impact . • Accordingly , in Q2 SmileDirectClub expects revenue to be approximately $ 195 - $ 200mm , and Adjusted EBITDA to be approximately breakeven , as the Company recovers from the cyber - attack , and continues to lean into marketing spend in international markets . " The first quarter represents continued traction against our long - term targets as we execute against our controlled growth plan . We are especially pleased to see consumer sentiment gaining positive momentum as we remain laser focused on the delivery of a world class Club Member experience , " said David Katzman , Chief Executive Officer and Chairman of SmileDirectClub . Smile DirectClub Chief Financial Officer Kyle Wailes added , " With the goal of providing the best Club Member experience , our mantra remains to drive controlled and profitable growth . The improvements we have made , and continue to make , on customer service and enhancing our leading telehealth platform for orthodontia are working . We remain the low - cost provider , with brand presence , no pricing pressure , and no real competitor that provides an end - to - end vertically integrated platform for the consumer . " Business Outlook For Q2 , without the cyber - attack , which caused disruptions to certain systems and manufacturing operations , SmileDirectClub expected revenue to be in line with its long - term targets on a sequential basis , up 5-7 % over Q1 2021. While the Company is adjusting revenue expectations for Q2 , its long - term revenue growth targets remain unchanged . The Company will continue to make strategic investments in the professional channel , international growth , and in penetrating new demographics to drive controlled growth , while also executing against its profitability goals . Lastly , favorable industry dynamics continue to increase with broader acceptance of telehealth and specifically teledentistry , minimal penetration against the total addressable market , and clear aligners gaining share in the overall industry . • On COGS , Smile DirectClub is making good progress on manufacturing automation , with its second - generation machines producing approximately 70 % of all aligner orders , and plans to manufacture approximately 90 % of all orders on the Gen2 line by the end of Q2 . Streamlining the cost profile through operational efficiencies will improve the Company's margin profile and will provide a consistently superior customer experience that upholds the brand promise . • On Sales & Marketing , the SmileShops function primarily as fulfillment centers , not as sources of demand generation . As of quarter end , the Company had 126 permanent shops open , and held over 156 pop - up events over the course of the quarter for a total of 282 location sites . SmileDirectClub continues to see its shops performing well with higher utilization , a key part of meeting the Company's long - term financial targets . The strategy of temporary pop - up locations has been