XpresSpa Group Provides Business Update and Announces First Quarter 2021 Financial Results
Net Loss Narrows to
Strong Liquidity Position with Cash Balance of
Introduces Treat™ -- a Travel Brand that Provides Access to Integrated Care that Can Seamlessly Fit Into a Health & Wellness Lifestyle; Initial Website to Launch in June (Phase One); Mobile App to Launch in Summer (Phase Two); and First Two Locations Expected to Launch Late Summer / Early Fall (Phase Three)
Webcast and Conference Call Scheduled for
There are currently two company-operated
The Company is having ongoing discussions with various airports to monitor passenger traffic and recovery as some continue to extend rent relief.
The Company launched the XpresCheck™ brand to provide COVID-19 testing to frontline airport workforce and passengers. XpresCheck’s medical team of state licensed physicians and nurse practitioners operate under management services agreements, currently administer COVID-19 testing options including a rapid molecular COVID-19 test, a Polymerase Chain Reaction (PCR) test, a blood antibody test, a rapid PCR test, and a rapid antigen test.
The Company operates thirteen locations in eleven airports, including the most recent “popup”
Developments since the onset of the first quarter 2021 include:
- The Company opened a total of six
XpresCheck Wellness Centerduring the three-month period. These include a second center at each of Logan International Airportand Newark Liberty International Airport, in addition to Dulles International Airport, George Bush Intercontinental Airport, Reagan National Airport, and Salt Lake City International Airport. Seattle-Tacoma International Airportand San Francisco International Airportboth opened in April.
- In January, the Company began working with United Airlines, Delta Air Lines and
KLM Royal Dutch Airlinesout of John F. Kennedy International’s Terminal 4, Newark Liberty International Airportand Boston’s Logan International Airportto meet the Netherlands’ COVID-19 testing policy for incoming international passengers. This policy requires a negative COVID-19 PCR test within 72 hours before departure as well as a negative COVID-19 rapid test four hours before departure.
March 8, 2021, XpresCheck transitioned to a full “fee for service” model for all tests. Under this model, patients pay XpresCheck directly at the time of service and then are able submit their testing fees for insurance reimbursement. Prior to March 8, 2021only the rapid molecular test had been on a fee for service model.
March 29, 2020, XpresCheck expanded its COVID-19 testing line up by adding a rapid PCR test at select airports which was then followed by another rapid antigen test.
April 5, 2021, XpresCheck announced that it had recently signed an agreement with Delta Air Lines to administer the new rapid antigen test to customers traveling from John F. Kennedy International Airportto Milan Malpensa and Rome–Fiumicino International Airports.
Treat™: Vision for
The Company is pleased to introduce its new travel health and wellness brand: Treat. Treat is positioned for a post-pandemic world and designed to deliver on-demand access to integrated healthcare through technology and personalized services. Travelers will be able to access health care, records and real-time information all in one place, as well as book appointments in our on-site wellness centers as they open.
Treat will include a mobile app with access to immediate/ on-demand virtual care, including chat care, video tele-health and a “travel wallet” with medical records and test results. The brand will also provide a content-rich website with current global travel health information, original travel health and wellness editorial content, and a curated retail shop with emerging products targeting the savvy traveler living a wellness lifestyle.
Treat will also have a strong presence on social media, engage in e-mail and paid marketing campaigns, and provide a newsletter to our opt-in audience and subscription members.
The Company expects to launch the initial website in June (Phase One) and to have the mobile app launched later in the summer (Phase Two) ahead of the first two brick-and-mortar location openings in late summer / early fall (Phase Three).
The future on-site Treat locations in airports will offer integrated health and wellness personalized services in a premium environment. Upon entering, customers will see a beautifully curated retail and check in area and will be greeted by
Travelers will be able to access appointments for COVID-19 testing, but also services like travel vaccines, travel anxiety care, inoculations, metabolic panel testing, and a list of convenient care services. They will also be able to book time in a wellness room, with services like wellness coaching, yoga classes, mindfulness sessions and specialized services like Vitamin IV Therapy.
Over time, the Company envisions that Treat’s digital channels will provide more significant growth opportunities for revenue and profit than its brick and mortar airport locations. The success of this revenue stream will be achieved through both subscription-based services that provide on-demand virtual care and tools supporting travel health and wellness.
Given its strong liquidity position and poise for growth, the Company would also consider accretive acquisitions and other investments to further broaden its service and retail offerings and would invest in new opportunities beyond this new evolving concept.
Liquidity and Financial Condition
During the three months ended
Summary of First Quarter 2021 Financial Results
Reported revenue during the three months ended
Explanation of Management Services Agreements
During 2020, the Company entered into MSAs with professional medical services companies that provide health care services to patients in connection with XpresCheck. The medical services companies pay XpresCheck a monthly fee to operate in the
Cost of Sales
Cost of sales decreased to
Gross profit was
General and Administrative Expenses
General and administrative expenses was
Loss from Operations
Operating loss from operations decreased to
Net Loss Attributable to Common Shareholders
Net loss attributable to common shareholders was
Please refer to the Quarterly Report on Form on 10-Q filed on
XpresCheck Non-GAAP Financial Metrics
Although the Company does not generate revenue directly from patient testing volume, as detailed above, in the interest of providing investors with greater transparency regarding XpresCheck’s performance, the Company has opted to disclose recent and current average daily patient testing volumes and Adjusted EBITDA, along with other relevant non-GAAP financial metrics.
During the first quarter 2021, average daily patient testing volume for existing
During the first quarter 2021, the average revenue per patient increased to
During April, the average revenue per patient was
On a non-GAAP basis, Adjusted EBITDA was
The Company defines Adjusted EBITDA as earnings before interest, taxes, depreciation and amortization expense, non-cash charges and stock-based compensation expense.
The Company considers Adjusted EBITDA to be an important indicator for the performance of its operating business, XpresCheck. In particular, it believes that it is useful for analysts and investors to understand that Adjusted EBITDA excludes certain transactions not related to core cash operating activities, which are primarily related to our
Webcast and Conference Call Today
The Company will host a webcast and conference call at
The Company encourages investors and interested parties to listen via webcast as there is a limited capacity to access the conference call by dialing 1-201-689-8263. To submit a question, please email firstname.lastname@example.org.
The live and later archived webcast can be accessed from the Investor Relations section of the Company’s website at http://xpresspagroup.com. Visitors to the website should select the “Investors” tab and navigate to the “Events” link to access the webcast.
Twitter: @xprescheck and Instagram: @realxprescheck
This press release may contain "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.