XpresSpa Group Reports Second Quarter 2022 Results
XpresCheck, through its Partnership with Ginkgo Bioworks, Awarded New
Leading Health and Wellness Provider for ‘People on the Go’
Demonstrated Success Executing Against Strategic Imperatives
Creating A Strong Retail Engine including Deploying Expanded Product Offering, New Wellness Technology, and Refreshed Look
Expansion Internationally into
Webcast and Conference Call Scheduled for
- Refreshing its business in the airport to attract more customers
- Creating and executing a completely new retail strategy to not only drive more foot traffic into our airport locations but also augment our on-line presence
- Adding new customers through revenue-accretive acquisition and the deployment of a B2B wellness product outside the airport
- Reducing infrastructure cost to better leverage capital
“We are committed to delivering on our four core imperatives and we’re enthusiastic about the measurable progress we’ve made during the last few months,”
“In addition to creating a strong retail engine, we remain focused on optimizing our available capital and organizing our business to be able to manage sustainable growth in the future. This includes embracing a lean and agile approach to managing costs in our existing business, while also ensuring we can scale
Second Quarter Business Update
In late 2021, XpresCheck began conducting bio surveillance monitoring, aimed at identifying existing and new SARS-CoV-2 variants, in collaboration with the
As expected, as countries continued to relax their testing requirements, testing volumes at our XpresCheck locations decreased as we progressed through the second quarter.
The Company believes that a strong biosafety program is critical to the control of SARS-CoV-2, or any other potential virus, and remains focused on supporting this invaluable national effort. That said, based on the evolution of testing globally, and the creation of longer term biosurveillance efforts coupled with the current performance of its XpresCheck segment, the Company is in the process of laying out a plan to close unprofitable XpresCheck locations without compromising its biosurveillance apparatus.
There are currently 20 operating
The Company, which is 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, is executing a new retail strategy to drive more foot traffic into its airport locations and augment its on-line presence. This includes bringing new technologies and trends, including new tech forward equipment, adding new SKUs in-store and on-line, as well as deploying plans to refresh the look and appearance of some
Internationally, there are also 6
Treat is XpresSpa Group’s travel, health and wellness brand which transforms the way people access care through a suite of health and wellness services, as supported by an integrated digital platform.
Treat’s on-site centers are currently located at
On the ground 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 available 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 segment as an opportunity for innovation and growth. 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 second quarter of 2022, the Company continued to execute on its share repurchase program, repurchasing 1.3 million shares at average cost of
Since initiating the stock repurchase plan on
Based upon the current share price, which management believes is substantially undervalued, the intention is to repurchase additional shares, when possible, subject to the limitations of blackout restrictions.
Liquidity and Financial Condition
Summary of Second 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 loss 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||$||(7,767)||(4,201)|
|Depreciation and amortization||1,501||946|
|Impairment/disposal of assets||(52)||---|
|Stock-based compensation expense||1,320||328|
|Adjusted EBITDA /(Loss)||$||(4,998)||(2,927)|
Webcast and Conference Call Today
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.
XpresSpais a leading airport retailer of wellness services and related products, with 26 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.
- XpresCheck is a leading provider of COVID-19 screening and diagnostic testing with 15 locations in 12 domestic airports. XpresCheck is also partnered with Ginkgo Bioworks, in collaboration with the
CDC, conducting biosurveillance monitoring in its airport locations to identify existing and new SARS-CoV-2 variants.
- HyperPointe is a leading digital healthcare and data analytics relationship company 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.