XpresSpa Group Reports Third Quarter 2021 Results
Best Performing Quarterly Financial Results in Company History
Record Quarterly Revenue of
Record Net Income of
On Track for Record Year of Revenue and Earnings
Strong Liquidity Position with Unrestricted Cash Balance Increasing to
Webcast and Conference Call Scheduled for
XpresCheckTM Wellness Centers
XpresCheck’s business has entered into management services agreements with state licensed physicians and nurse practitioners, under which we administer COVID-19 testing options, including a Polymerase Chain Reaction (PCR) test and a rapid PCR test. As of today, there are 14 operating XpresCheck locations in 12 airports.
Recent developments since the beginning of the third quarter of 2021 include:
- XpresCheck opened a COVID-19 testing facility at
Hartsfield-Jackson Atlanta International Airport(ATL) inside a legacy XpresSpalocated in Concourse E.
- XpresCheck initiated its
$2 million, eight-week pilot program with the CDCin collaboration with Concentric by Ginkgo. Under this program, XpresCheck is conducting biosurveillance monitoring at three major U.S.airports ( JFK International Airport, Newark Liberty International Airportand San Francisco International Airport) aimed at identifying existing and new SARS-CoV-2 variants, including the highly contagious Delta variant and other new variants surfacing in the U.S.
- The revenue on this contract is based on certain milestones specified in the contract and no revenue was recorded during the third quarter of 2021. However, the Company believes that approximately 75% of the revenue will be recorded during the fourth quarter of 2021. The Company is pleased with the initial results of the
CDCpilot program as the number of participants continues to increase.
During the fourth quarter of 2021, another four locations were reopened and an additional three
Austin-Bergstrom International Airport(AUS) Section J (franchised) Charlotte Douglas International Airport(CLT) Concourse A/B
- Charlotte Douglas International Airport (CLT) Concourse D
- Dallas/Fort Worth Int’l Airport (DFW) Concourse A
Dallas/Fort Worth International Airport(DFW) Concourse D
- Hartsfield-Jackson Atlanta Int’l Airport (ATL) Concourse A
Hartsfield-Jackson Atlanta International Airport(ATL) Concourse C William P. Hobby Airport(HOU) John F. Kennedy International Airport (JFK) Terminal 4 McCarran International Airport(LAS) Concourse D Orlando International Airport(MCO) Airside 2
There are also three
A majority of the domestic
The Company will re-evaluate each airport on a month by month basis as well as review continued learnings as the portfolio is re-activated.
Treat, the Company’s new travel health and wellness brand, provides access to integrated care services that can seamlessly fit into a health and wellness lifestyle. Empowering travelers to take a health-first approach to the journey ahead, Treat acts as a wellness concierge, providing medical care and wellness services to consumers as they return to travel.
The Treat website (www.treat.com) features original content, access to resources about global COVID-19 requirements, and curated e-commerce. The Treat mobile app provides access to on-demand virtual care to board-certified physicians, including chat care and video care. The app also has a “travel wallet” providing access to a person’s medical records, vaccinations and test results. Eventually, we expect to expand the app and benefits to include in-app premium wellness content including meditations and workouts as well a Smart Health Card online shopping and prescription discounts.
Over the long-term, the Company envisions that digital channels will provide growth opportunities beyond the airport locations, which would be achieved through subscription-based services that offer care and tools supporting travel health and wellness. The Company also anticipates offering upstream content that can be monetized through affiliate revenue as well as curated ecommerce retail through www.treat.com.
Given its strong liquidity position and poise for growth, the Company is also considering accretive acquisitions and other strategic transactions to further broaden its service and retail offerings and would invest in new opportunities beyond this new evolving concept.
Share Repurchase Program
During the third quarter of 2021, the Company repurchased 250,000 shares of its common stock outside of black-out periods. As of
Liquidity and Financial Condition
Summary of Third Quarter 2021 Financial Results
Total revenue during the three months ended
Explanation of Management Services Agreements (“MSAs”) and Variable Interest Entities (“VIEs”)
Through XpresCheck and under the terms of the MSA with Professional Corporations (“PCs”) that in turn contract with physicians and other professional healthcare Providers, the Company offers testing services to airline employees, contractors, concessionaire employees,
Cost of Sales
Cost of sales increased to
General and Administrative Expenses
General and administrative expenses were
Income from Operations
Income from operations increased to
Net Income Attributable to Common Shareholders
Net income attributable to common shareholders was
Please refer to the Quarterly Report on Form on 10-Q filed on
XpresCheck Non-GAAP Financial Metrics
The assessment that the PCs qualify as VIEs, and are presented as consolidated information in the Company’s financial statements, results in a clearer view on the full COVID-19 testing economics. Additional information of note and shown below includes Total Patient Encounters; Total NAAT Rapid Tests (Antigen and PCR); and PCR % of Total NAAT Rapid.
Total Rapid Test (Antigen and PCR) / Percent of
Rapid PCR Tests / Percent of
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 XpresCheck. The Company believes that excluding these transactions allows investors to meaningfully analyze the performance of core cash operations. For a reconciliation to GAAP EBITDA, please refer to the 10-Q filed this afternoon.
Long-Term Revenue Target of
The Company reiterated its long-term revenue target of
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.
To learn more about
To learn more about Treat, visit: www.Treat.com.
To learn more about XpresCheck, visit: www.XpresCheck.com.
To learn more about
Twitter: @Treat_Care and Instagram: @treat_care
Twitter: @xprescheck and Instagram: @realxprescheck
Twitter: @XpresSpa and Instagram: @XpresSpa
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.