XpresSpa Group Provides Business Update
Significantly Strengthened Balance Sheet through Recent Capital Raises and Debt Reduction
Launched COVID-19 Testing at
Files SEC Form 10-Q for the First Quarter ending
Balance Sheet Update
March 24, 2020, the Company temporarily closed all of its global spa locations, largely due to the categorization of such spa locations by local jurisdictions as “non-essential services” in connection with COVID-19. The Company intends to reopen its spa locations and resume operations once restrictions are lifted and airport traffic returns to sufficient levels to support operations.
March 25, 2020, the Company announced that it was in advanced conversations with certain COVID-19 testing partners to develop a model for testing in U.S.airports. The Company subsequently launched the XpresCheck™ brand, under the Company’s newly-formed XpresTest, Inc.subsidiary, to provide COVID-19 testing in U.S.airports.
June 5, 2020, the Company announced a partnership with HyperPointe™ to design a workflow with the capability to potentially test thousands of people each week as well as collect and organize confidential patient data that can be used to study and help better understand the impact of the COVID-19 virus. HyperPointe’s creatives have produced comprehensive promotional, educational and digital solutions to facilitate a successful rollout. In addition, their technology team has integrated the XpresCheck workflow with AdvancedMD’s Practice Management and Electronic Medical Records (EMR) solution for online appointment scheduling, patient intake, lab integration, medical billing and reporting analytics
June 22, 2020, the Company launched an XpresCheck™ pilot program at JFK International Airportin the Arrivals Hall of Terminal 4.
- The new modular constructed testing facility hosts nine separate testing rooms with a capacity to administer over 500 COVID-19 tests per day.
- XpresCheck is using the latest testing protocols, polymerase chain reaction (PCR) testing, also known as a nasal swab test, and blood antibody testing, which looks for markers in the blood (IgG, IgM) that suggests a person might have had the virus. The tests are sent to outside laboratories. All insurance plans are accepted outside of network and all information will remain private and HIPAA compliant.
- XpresCheck is currently offering testing for airline employees, contractors and workers, airport concessionaires and their employees,
TSAofficers, and U.S. Customs and Border Protectionagents and intends to expand testing to travelers in the future. Patients can either register for an appointment at XpresCheck.com or stop by for a walk-in.
- The Company is in active discussions with multiple
U.S.airports to open new testing centers or convert existing spas, to XpresCheck facilities. However, the likelihood and timing of these possible openings has not been determined and no assurance can be given that the Company will expand its XpresCheck brand beyond the current facility at JFK.
First Quarter 2020 Highlights
- Total revenue was
$7.7 millioncompared to $12.2 millionin the prior year first quarter. This decrease was primarily due to the negative impact COVID-19 has had on our revenue and results of operations. The Company’s revenue began to decrease significantly in February 2020as COVID-19 began to spread throughout the world and as rates of infection began to increase. Effective March 24, 2020, all spas were temporarily closed. Comparable store sales decreased 26.5% for the first quarter 2020.
- Store margin was
$550,000or 7.1% of revenue compared to $3.1 millionor 25.6% of revenue in the prior year first quarter.
- General and administrative expenses decreased 10.2% to
$3.2 millionin 2020 compared to $3.6 millionin the prior year first quarter. The decrease was a result of realized benefits of cost cutting and control initiatives instituted in 2019, primarily in salaries, occupancy and professional fees.
- Operating loss from continuing operations increased to
$10.7 millioncompared to $2.8 millionin the prior year first quarter.
- Net loss of
$10.7 millioncompared to net loss of $2.8 millionin the first quarter 2019.
Please refer to the Quarterly Report on Form on 10-Q filed
This press release contains "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. These include statements preceded by, followed by or that otherwise include the words "believes," "expects," "anticipates," "estimates," "projects," "intends," "should," "seeks," "future," "continue," or the negative of such terms, or other comparable terminology. Forward-looking statements relating to expectations about future results or events are based upon information available to
Source: XpresSpa Group, Inc.