XpresSpa Group Reports First Quarter 2022 Results
Articulates Four Strategic Imperatives to Accelerate Company Evolution as a
Quarterly Revenue of
Cash Balance of
Webcast and Conference Call Scheduled for
He added, “As part of our efforts to return capital to shareholders, we repurchased over
In late 2021, XpresCheck began conducting bio surveillance monitoring, aimed at identifying existing and new SARS-CoV-2 variants, in collaboration with the
In April, as part of the CDC’s Traveler Based Surveillance program and together with our partner, Concentric by Ginkgo, we collected, identified, and sequenced one of the first samples containing the novel BA.4 sublineage of the Omicron variant and delivered it to the CDC’s lab. The sample was collected from passengers on a flight originating from
Testing volumes decreased as we progressed through the first quarter, but particularly in March, and that trend has continued into April and May. While a decline in the first quarter relative to the fourth quarter last year was not surprising, as the first quarter is typically the weakest quarter in terms of airport traffic, the decrease was faster than projected. We believe the reason is that countries have started to relax their testing requirements faster than we expected.
We continue to believe that a strong biosafety program is critical to the continued control of this virus, or any other potential virus, and we will continue to focus on supporting this invaluable national effort. That said, as testing volumes decline, we are evaluating ways to reduce costs associated with operating our XpresCheck business without compromising the integrity of our biosafety efforts. We are also looking at converting existing underperforming XpresChecks back into spa locations where we may be able to provide testing.
There are currently 19 operating
We are seeing renewed interest in wellness services among travelers along with a willingness to spend additional dollars on products and services that will improve their well-being while they travel.
Internationally, there are also six
Treat is our travel, health and wellness brand transforming the way we access care through a suite of health and wellness services supported by an integrated digital platform and a relevant retail offering to the traveling public.
Treat’s on-site centers are currently located in
Our teams provide travel-related diagnostic testing for virus, cold, flu and other illnesses as well as hydration therapy, IV Drips, and vitamin injections. Travelers can purchase time blocks to use our wellness rooms to engage in interactive services like self-guided yoga, meditation and low impact weight exercises, or to relax and unplug from the hectic pace of the airport and renew themselves before or after their trip.
We will continue to evaluate the Treat model for expansion as we evolve the product and service offerings in our current locations. We will also use the opportunity to evolve and align spa services with some of the more popular Treat offerings to further integrate these businesses.
Share Repurchase Program
During the first quarter, we continued to execute on our share repurchase program, repurchasing 7.1 million shares at average cost of
Based upon the current share price, which management believes is substantially undervalued, our intention is to repurchase additional shares when possible and complete the existing repurchase authorization in the near-term, subject to the limitations of blackout restrictions. As of
Liquidity and Financial Condition
Summary of First Quarter 2022 Financial Results
Total revenue during the three months ended
Cost of Sales
Cost of sales increased to
General and Administrative Expenses
General and administrative expenses were
Income from Operations
Loss from operations was
Net Income Attributable to Common Shareholders
Net loss attributable to common shareholders was
XpresCheck Operational Metrics
Total Patients by Quarter
Total Rapid Test (Antigen and PCR) / Percent of Total Patients by Quarter
Rapid PCR Tests / Percent of Total Rapid Tests by Quarter
Non-GAAP Financial Metrics
On a non-GAAP basis, Adjusted EBITDA was
We define Adjusted EBITDA as earnings before interest, taxes, depreciation and amortization expense, non-cash charges, and stock-based compensation expense.
We consider Adjusted EBITDA to be an important indicator for the performance of our operating business, XpresCheck. In particular, we believe 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 XpresCheck. We believe that excluding these transactions allows investors to meaningfully analyze the performance of core cash operations.
A reconciliation of operating loss presented in accordance with GAAP for the three-month periods ended
|Three months ended
|Income (loss) from operations||$||(2,451||)||$||(921||)|
|Depreciation and amortization||1,264||744|
|Impairment/disposal of assets||-||22|
|Stock-based compensation expense||1,543||1,005|
|Adjusted EBITDA /(Loss)||$||356||$||850|
Revised 2022 Revenue Target
Based on the swift relaxation of Covid-19 testing requirements by other countries for flights originating in
Webcast and Conference Call Today
We will host a webcast and conference call at
We encourage investors and interested parties to listen via webcast as there is a limited capacity to access the conference call by dialing 1-212-231-2930. 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.
Participation in Water Tower Research Fireside
We will participate in the Water Tower Research Fireside
- Building a scalable and profitable unified offering under one brand
- Developing an out of airport strategy
- International expansion
- Potential for accretive acquisitions to accelerate growth
If you are an institutional or retail investor and would like to listen to this fireside chat, please click below to register for the event.
- XpresCheck is a leading on-site airport provider of Covid-19 screening and diagnostic testing with 15 locations in 12 domestic airports. XpresCheck is also partnered with the
CDCand Concentric by Ginkgo, conducting biosurveillance monitoring at four major domestic airports to identify existing and new SARS-CoV-2 variants. XpresSpais a leading airport retailer of wellness services and related products, with 23 locations in 13 airports globally.
- Treat is a travel health and wellness brand that is providing on-demand access to healthcare through technology and personalized services, including two domestic airport locations.
- To further build on XpresSpa Group’s expertise in the health and wellness space, the Company acquired HyperPointe in
January 2022, a leading digital healthcare and data analytics relationship marketing agency serving the global healthcare industry.
To learn more about XpresCheck, visit: www.XpresCheck.com
To learn more about
To learn more about Treat, visit: www.Treat.com
To learn more about HyperPointe, visit: www.Hyperpointe.com
Twitter: @xprescheck and Instagram: @realxprescheck
Twitter: @XpresSpa and Instagram: @XpresSpa
Twitter: @Treat_Care and Instagram: @treat_care
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.