XpresSpa Group, Inc. (Nasdaq: XSPA), a travel health and wellness
company, today reported that it has filed financial results on Form
10-Q for the second quarter ending June 30, 2022.
Strategic Overview XpresSpa
Group continues to make steady progress on executing against its
four core transformational imperatives:
- 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,” Scott Milford, XpresSpa
Group’s Chief Executive Officer, stated, “We have 26 Spas currently
open globally with another five scheduled to open in the third
quarter of this year, including our first location in Turkey’s
Istanbul Airport. Our Spa performance continues to improve as more
travelers return to the air. To support our continued growth, we’re
innovating to create a holistic wellness experience for our guests
with new services, add-ons, better tech and expanded product
offerings. Furthermore, we are creating and executing a completely
new retail strategy to drive more foot traffic into our airport
locations as well as to our on-line platform. Looking ahead, we’re
planning to refresh the look and appearance of our Spa locations
later this year and extending into 2023, and we also plan to open
our third Treat location in Salt Lake City, Utah in late Q3.”
“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 XpresSpa Group's growth in a responsible manner that drives
Mr. Milford added, “XpresSpa Group is also
extremely pleased to announce that XpresCheck, through its
partnership with Ginkgo Bioworks, has been awarded a new contract
worth as much as $61 million to support the Centers for Disease
Control and Prevention’s (CDC) expanded traveler-based genomic
surveillance program for SARS-CoV-2, the virus that causes
COVID-19. Building on a long-standing relationship with the CDC and
Ginkgo Bioworks, the renewed traveler-based surveillance
partnership is expected to leverage a variety of sampling
modalities, including individual testing, pooled testing,
wastewater testing, and a variety of genomic sequencing approaches.
This contract is a significant milestone for XpresCheck, and I am
proud of the Company’s role in helping the U.S. prepare and
safeguard against future potential virologic outbreaks.”
Second Quarter Business
XpresTest, Inc. subsidiary (“XpresCheck”) provides medical
diagnostic testing services, including COVID-19 testing for its
customers. As of today, there are 15 XpresCheck locations operating
in 12 airports.
In late 2021, XpresCheck began conducting bio
surveillance monitoring, aimed at identifying existing and new
SARS-CoV-2 variants, in collaboration with the CDC and Ginkgo
Bioworks at four major U.S. airports (JFK International Airport,
Newark Liberty International Airport, San Francisco International
Airport, and Hartsfield-Jackson Atlanta International Airport).
During the second quarter, the Company recognized $1.9 million of
revenue related to this collaboration.
As expected, as countries continued to relax
their testing requirements, testing volumes at our XpresCheck
locations decreased as we progressed through the second
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
XpresSpa®There are currently 20 operating
XpresSpa domestic locations, including two franchise locations,
with another five locations scheduled to open in the third quarter.
Most of the domestic XpresSpa locations are back to being open 7
days a week, which has improved labor productivity.
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 XpresSpa locations beginning later this
year and extending into 2023.
Internationally, there are also 6 XpresSpa
locations currently operating. These consist of 3 at Dubai
International Airport in the UAE and 3 at Schiphol Amsterdam
Airport in the Netherlands. The Company recently announced plans to
open a XpresSpa location in Istanbul Airport in Turkey beginning in
September 2022. This is the first of 5 new XpresSpa locations
expected to open at Istanbul Airport by the end of
2022. This expansion will allow XpresSpa Group the
opportunity to further leverage its expertise in providing premium
wellness services to more international passengers who appreciate
health and wellness services and are willing to spend more in
pursuit of their well-being.
Treat™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
JFK International Airport in New York and at Phoenix Sky Harbor
International Airport in Arizona. In late Q3, the Company is
planning to open a third Treat location at Salt Lake City
International Airport in Utah.
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
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.
HyperPointeIn January 2022, we announced and
closed on the acquisition of GCG Connect, LLC d/b/a HyperPointe.
HyperPointe is a leading digital healthcare and data analytics
relationship marketing agency, servicing the global healthcare and
pharmaceutical industry. HyperPointe has significant experience in
patient and healthcare professional marketing and deep
technological experience with CXM (customer experience management)
and data analytics.
Since June 2020, HyperPointe’s management team
and suite of services and technology have been used to develop and
deploy the technological infrastructure needed to scale the growth
of our XpresCheck business. HyperPointe’s experience in this space
continues to serve the XpresCheck business and will play a critical
role in the expansion of ongoing biosurveillance efforts created by
the new contract with Ginkgo Bioworks and the CDC.
Share Repurchase ProgramOn May 20, 2022, the
Company announced that its Board of Directors authorized a 10
million share increase to its existing stock repurchase program,
which was extended through September 15, 2023. The original stock
repurchase program, announced in August 2021, was for 15 million
shares, and there were approximately 3.2 million shares remaining
under that original authorization as of the date of such
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 $0.76 per share, for a total
of $1.0 million.
Since initiating the stock repurchase plan on
August 31, 2021, the Company has repurchased approximately 13.2
million shares through June 30, 2022, for total consideration of
approximately $19.9 million. As of August 15, 2022, there are 11.8
million shares that may be purchased under the current
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 ConditionAs of June 30,
2022, the Company had cash and cash equivalents, excluding
restricted cash, of $71.1 million and no long-term debt.
Summary of Second Quarter 2022 Financial
ResultsTotal revenue during the three months ended June
30, 2022, was $13.6 million compared to $9.1 million in the
corresponding period in 2021. The revenue for the quarter primarily
consisted of $7.4 million from XpresCheck locations, as well as
$3.7 million in revenue from our reopened XpresSpa locations and
Treat wellness centers, and $0.7 million from HyperPointe.
Cost of SalesCost of sales increased to $12.4 million from $7.7
million in the prior year second quarter primarily due to the
increased costs to operate the XpresCheck locations, and the
reopening of certain XpresSpa locations that were temporarily
closed during the second quarter of 2021.
General and Administrative ExpensesGeneral and administrative
expenses were $7.6 million compared to $4.6 million for the year
ago comparable period. The increase was primarily due to functional
costs associated with the operations of XpresCheck and Treat
wellness centers, XpresSpa locations, and the newly acquired
Income from OperationsLoss from operations was $7.8 million
compared to $4.2 million in the prior year second quarter.
Net Income Attributable to Common ShareholdersNet loss
attributable to common shareholders was $7.9 million compared to
$4.5 million in the prior year second quarter.
and PCR) /
Percent of Total
Tests / Percent
of Total Rapid
Adjusted EBITDAOn a non-GAAP basis, Adjusted
EBITDA loss was $5.0 million during the second quarter 2022,
compared to Adjusted EBITDA loss of $2.9 million in the prior year
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 June 30,
2022 and 2021 to Adjusted EBITDA (loss) is presented in the table
Three months ended June 30,
Income (loss) from operations
Depreciation and amortization
Impairment/disposal of assets
Stock-based compensation expense
Adjusted EBITDA /(Loss)
XpresSpa Group host a webcast and conference
call at 4:30 p.m. Eastern Time today. We encourage investors and
interested parties to listen via webcast as there is a limited
capacity to access the conference call by dialing 1-412-902-0130.
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.
XpresSpa Group, Inc. (Nasdaq: XSPA) is a leading
global health and wellness holding company operating four brands:
XpresCheck®, XpresSpa®, Treat™ and HyperPointe.
- XpresSpa is 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
- HyperPointe is a leading digital
healthcare and data analytics relationship company serving the
global healthcare industry.
To learn more about XpresCheck, visit:
To learn more about XpresSpa, visit www.XpresSpa.com
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 XpresSpa Group as of today's date and are not guarantees of the
future performance of the Company, and actual results may vary
materially from the results and expectations discussed. Additional
information concerning these and other risks is contained in
XpresSpa Group’s Annual Report on Form 10-K, Quarterly Reports on
Form 10-Q and Current Reports on Form 8-K, and other Securities and
Exchange Commission filings. All subsequent written and oral
forward-looking statements concerning XpresSpa Group, or other
matters and attributable to XpresSpa Group or any person acting on
its behalf are expressly qualified in their entirety by the
cautionary statements above. XpresSpa Group does not undertake any
obligation to publicly update any of these forward-looking
statements to reflect events or circumstances that may arise after
the date hereof.
Tidwell MWW email@example.com
Historical Stock Chart
From Sep 2023 to Oct 2023
Historical Stock Chart
From Oct 2022 to Oct 2023