XpresSpa Group, Inc. (Nasdaq: XSPA), a health and wellness company,
today announced financial results for the quarter ending September
30, 2019.
Doug Satzman, XpresSpa Group CEO, stated, “Third
quarter results demonstrate that our business turnaround is
continuing to take shape, although it is still early in the
process. We generated our second consecutive quarter of positive
comparable store sales growth, substantially increased our average
sales per store, held store margin nearly steady despite a total
revenues decline, substantially lowered our G&A expenditures,
and recorded a significant reduction in our operating loss from
continuing operations.”
Mr. Satzman continued, “Through a series of debt
and equity transactions and with our stockholders’ approval, our
balance sheet has been meaningfully improved and the previous
preferred stockholders’ interests are now fully aligned through the
conversion of certain preferred shares to common. We are thankful
for the financial flexibility that we now have in executing our
strategic priorities and look forward to building upon what we have
already accomplished during the upcoming holiday travel season and
beyond.”
Mr. Satzman added, “We are strengthening our
store portfolio through disciplined growth, select renovations, and
targeted closures. In September 2019, we opened our first
franchised-operated spa as well as a second company-operated spa in
Austin. On November 1, we opened our third spa in Las Vegas and we
intend to open our fourth spa in Atlanta before Christmas. In
addition, we are also elevating brand perceptions through our
remodeling efforts with seven projects completed to date. Finally,
we have pruned low volume and unprofitable locations out of lease
cycle from the XpresSpa footprint, providing an immediate boost to
our performance.”
Mr. Satzman concluded, “We are making progress
in expanding and forging new strategic partnerships with brands
that share our commitment to health and wellness. Specifically, our
relationship with Calm.com for sleep, meditation, and relaxation
products has been extended and broadened through July 31, 2021
while we recently announced a new partnership with Persona™, a
leading personalized vitamin subscription program, through which we
will offer subscriptions and retail nutrition packs which are
designed especially for travelers through our stores. Our
high-visibility real estate and affluent customer base make
XpresSpa a desirable health and wellness partner for other
innovative companies and we will continue to work on securing
additional strategic partnerships.”
Strategic priorities:
- Staffing up through recruiting, training, and retention while
managing labor costs more effectively;
- We seek to attract top talent across the organization, develop
employees through training, and foster our people-first XpresSpa
team culture;
- We started utilizing a new online training tool that
incorporates “gaming methodology” and is offered in three languages
with great success which has increased participation;
- We will be testing a new scheduling tool in the fourth quarter
which is designed to help optimize our labor costs; and
- Labor costs as a percentage of total revenues generally held at
46.6% in the third quarter 2019 compared to 46.4% in the third
quarter 2018.
- Building transactions through improved scheduling, increasing
loyalty, and launching an XpresSpa App;
- The first phase of the new in store App launched in May 2019
within all domestic spas and has enhanced customer scheduling,
enabling us to gather more customer data, and reduce the number of
walkaways. Loyalty transactions are reaching new highs with over
18% of our transactions in October coming from loyalty members;
and
- The second phase of the App will launch by spring 2020. It will
enable customers to schedule a service in advance on their
smartphone for an improved customer experience and reduced wait
times, which in turn will allow us to expand our customer loyalty
and increase the frequency of our best, highest spend
customers.
- Increasing product sales by enhancing our product assortment;
- We have resolved our retail supply chain issues and are now
able to provide our customers with a full assortment of the most
desired products, styles, and colors that they seek;
- We have expanded our Calm.com product line with a weighted
sleep mask and will be launching a Calm.com weighted travel blanket
before Christmas. These new Calm products are designed in
collaboration with industry leader Gravity and exclusives to
XpresSpa; and
- Although product sales in aggregate declined due to fewer spas
in operation, product sales grew 1.7% on an average store
basis.
- Selectively opening high performing new spas through a
strategic approach to development;
- We opened one new company-operated spa in Austin-Bergstrom
International Airport (main terminal, section B) in September. Las
Vegas McCarran International Airport (terminal B) has since opened
in November 2019 and Hartsfield–Jackson Atlanta International
Airport (terminal E) is expected to open in December. Philadelphia
International Airport (terminal B) is now expected to open in early
2020; and
- Our first franchise spa opened as our second location in
Austin-Bergstrom International Airport (main terminal, section J)
in September 2019.
- Improving the guest experience through new employee training
programs;
- Renovating spas to elevate brand perceptions;
- We have renovated seven spas to-date, representing
approximately 15% of spa our portfolio.
- Closing spas with negative contribution;
- We closed five spas during the third quarter of 2019, including
our only off-airport spa. Three of these closures were the result
of lease expirations that unfortunately could not be renewed while
the remaining two closures reflect our systematic pruning of
underperforming locations during this transition year.
- Managing G&A expenditures;
- We will continue to streamline processes and reduce costs at
the field and corporate level;
- We relocated our Global Support Center in New York City to 254
W 31st Street in October 2019, which will yield an annual cost
reduction of $0.3 million in occupancy expenses; and
- G&A declined $0.8 million during the third quarter of 2019
compared to the same period in the prior year, despite $0.4 million
in professional service fees related to strengthening our financial
condition through a series of debt and equity transactions that
were approved by stockholders in October 2019.
- Activating new partnerships;
- We extended and broadened our relationship with Calm.com for
sleep, meditation, and relaxation products through July 31, 2021
and expanded our partnership to include XpresSpa’s international
locations. In addition, we are looking to collaborate on possibly
testing an expanded Calm.com brick-and-mortar experience at select
domestic spas;
- We signed a strategic partnership with Persona™, a Nestlé
Health Science (NHSc) company, and leading personalized vitamin
subscription program. XpresSpa will offer Persona’s subscriptions
and products in all of its domestic airport locations with staff
trained on the products by Persona’s nutritionists. Customers will
be able to purchase three different nutrition packs designed
especially for travelers to support relaxation, immunity or jet
lag, with customers receiving an exclusive discount on their first
order. We expect to launch Persona in our spas by year-end;
and
- We look forward to signing additional strategic partnerships
that bring new products and services to our spas and that monetize
our desirable real estate and affluent customer base.
Third Quarter 2019
Highlights
- Total revenues was $12.5 million in 2019 compared to $12.9
million in the prior year. The decline was due to a net loss of six
spas compared to the year-ago quarter, including five closures
during the third quarter of 2019, offset by a 3.7% increase in
comparable store sales. Average sales per store increased
8.1%.
- Store margin was $2.8 million in 2019 compared to $2.9 million
in the third quarter 2018. Both were 22.7% of total revenues.
- Labor costs increased 20 basis points to 46.6% from 46.4% of
total revenues based on lower turnover;
- Occupancy costs decreased 30 basis points to 15.1% from 15.4%
of total revenues, reflecting comparable store sales growth and the
closure of underperforming locations; and
- Products and other operating costs increased 20 basis points to
15.6% from 15.4% of total revenues, due to higher product costs,
partially offset by leverage on comparable store sales growth, cost
saving initiatives taken by management to streamline processes and
reduce store level costs, and the closure of underperforming
locations.
- General and administrative expenses decreased 21.2% to $3.1
million in 2019 compared to $3.9 million in the third quarter 2018.
The decrease is a result of our efforts to reduce administrative
costs through streamlined processes at the corporate level, along
with a reduction in stock-based compensation expenses versus the
prior year. General and administrative expenses decreased 570 basis
points to 24.8% from 30.5% of total revenues.
- Operating loss from continuing operations decreased to $1.8
million compared to $2.9 million in the third quarter 2018.
- Adjusted EBITDA* loss decreased to $302,000 in 2019 compared to
Adjusted EBITDA loss of $363,000 in third quarter 2018.
*Comparable Store Sales and Adjusted EBITDA are
a non-GAAP financial measure; see "Use of Non-GAAP Financial
Measures" below. See tables below for abbreviated financial results
for the third quarters 2019 and 2018.
Conference Call
XpresSpa Group, Inc. will host a conference call
today at 5:00 p.m. Eastern Time. The conference call can be
accessed live over the phone by dialing (631) 891-4304. A replay
will be available after the call and can be accessed by dialing
(412) 317-6671; the passcode is 10008086. The replay will be
available until November 28, 2019.
The webcast can be accessed from 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.
About XpresSpa Group, Inc.
XpresSpa Group, Inc. (Nasdaq: XSPA) is a health
and wellness holding company. XpresSpa Group’s core asset,
XpresSpa, is a leading airport retailer of spa services and related
products, with 52 locations in 25 airports globally. XpresSpa
offers services that are tailored specifically to the busy travel
customer. XpresSpa is committed to providing exceptional customer
experiences with its innovative premium spa services, as well as
exclusive luxury travel products and accessories. XpresSpa serves
almost one million customers per year at its locations in the
United States, Netherlands, and the United Arab Emirates. To learn
more about XpresSpa Group, visit: www.XpresSpaGroup.com. To
learn more about XpresSpa, visit www.XpresSpa.com
Forward-Looking Statements
This press release contains "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 most recently filed Annual Report on Form 10-K,
Quarterly Report on Form 10-Q, recent Current Reports on Form 8-K
and other SEC 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.
Investor Relations:ICRRaphael
Gross(203) 682-8253
XpresSpa Group, Inc. and
SubsidiariesCONSOLIDATED CONDENSED BALANCE
SHEETS(In thousands, except share and per share
data)
|
|
September 30, 2019 (Unaudited) |
|
|
December 31, 2018 |
|
Current assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
2,432 |
|
|
$ |
3,403 |
|
Retail inventory |
|
|
854 |
|
|
|
782 |
|
Other current assets |
|
|
690 |
|
|
|
1,574 |
|
Total current
assets |
|
|
3,976 |
|
|
|
5,759 |
|
Restricted cash |
|
|
451 |
|
|
|
487 |
|
Property and equipment,
net |
|
|
9,621 |
|
|
|
11,795 |
|
Intangible assets, net |
|
|
7,358 |
|
|
|
9,167 |
|
Operating lease right of use
assets, net |
|
|
9,818 |
|
|
|
— |
|
Other assets |
|
|
2,494 |
|
|
|
3,376 |
|
Total
assets |
|
$ |
33,718 |
|
|
$ |
30,584 |
|
Current
liabilities |
|
|
|
|
|
|
|
|
Accounts payable, accrued
expenses and other |
|
$ |
7,761 |
|
|
$ |
8,172 |
|
Senior secured note |
|
|
— |
|
|
|
6,500 |
|
Convertible notes, net |
|
|
— |
|
|
|
1,986 |
|
Total current
liabilities |
|
|
7,761 |
|
|
|
16,658 |
|
Senior secured note, net |
|
|
4,153 |
|
|
|
— |
|
Convertible note, net |
|
|
1,046 |
|
|
|
— |
|
Derivative liabilities |
|
|
6,088 |
|
|
|
476 |
|
Operating lease
liabilities |
|
|
9,818 |
|
|
|
— |
|
Other liabilities |
|
|
315 |
|
|
|
315 |
|
Total
liabilities |
|
|
29,181 |
|
|
|
17,449 |
|
Commitments and
contingencies (see Note 16) |
|
|
|
|
|
|
|
|
Stockholders’ equity
* |
|
|
|
|
|
|
|
|
Series A Convertible Preferred
Stock, $0.01 par value per share; 6,968 shares authorized; 6,673
issued and none outstanding |
|
|
— |
|
|
|
— |
|
Series C Junior Preferred
Stock, $0.01 par value per share; 300,000 shares authorized; none
issued and outstanding |
|
|
— |
|
|
|
— |
|
Series D Convertible Preferred
Stock, $0.01 par value per share; 500,000 shares authorized;
480,417 shares issued and 425,750 shares outstanding as of both
periods with a liquidation value of $20,436 |
|
|
4 |
|
|
|
4 |
|
Series E Convertible Preferred
Stock, $0.01 par value per share, 2,397,060 shares authorized;
967,742 issued and outstanding as of both periods with a
liquidation value of $3,000 |
|
|
10 |
|
|
|
10 |
|
Series F Convertible Preferred
Stock, $0.01 par value per share, 9,000 shares authorized; 8,996
shares issued and outstanding at September 30, 2019 and none at
December 31, 2018 with a liquidation value of $900 |
|
|
— |
|
|
|
— |
|
Common Stock, $0.01 par value
per share; 150,000,000 shares authorized; 2,918,169 and
1,761,802 issued and outstanding as of September 30, 2019 and
December 31, 2018, respectively |
|
|
363 |
|
|
|
352 |
|
Additional paid-in
capital |
|
|
301,601 |
|
|
|
295,904 |
|
Accumulated deficit |
|
|
(301,068 |
) |
|
|
(286,913 |
) |
Accumulated other
comprehensive loss |
|
|
(360 |
) |
|
|
(251 |
) |
Total stockholders’
equity attributable to common shareholders |
|
|
550 |
|
|
|
9,106 |
|
Noncontrolling interests |
|
|
3,987 |
|
|
|
4,029 |
|
Total stockholders’
equity |
|
|
4,537 |
|
|
|
13,135 |
|
Total liabilities and
stockholders’ equity |
|
$ |
33,718 |
|
|
$ |
30,584 |
|
*Adjusted, where applicable, to reflect the impact of the 1:20
reverse stock split that became effective on February 22, 2019.
The accompanying notes form an integral part of these
consolidated condensed financial statements.
XpresSpa Group, Inc. and
SubsidiariesCONSOLIDATED CONDENSED STATEMENTS OF
OPERATIONS AND COMPREHENSIVE
LOSS(Unaudited)(In thousands,
except share and per share data)
|
|
Three months ended September 30, |
|
|
Nine months ended September 30, |
|
|
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Services |
|
$ |
10,230 |
|
|
$ |
10,391 |
|
|
$ |
30,704 |
|
|
$ |
31,220 |
|
Products |
|
|
2,301 |
|
|
|
2,531 |
|
|
|
5,781 |
|
|
|
6,540 |
|
Other |
|
|
— |
|
|
|
— |
|
|
|
1,184 |
|
|
|
800 |
|
Total
revenue |
|
|
12,531 |
|
|
|
12,922 |
|
|
|
37,669 |
|
|
|
38,560 |
|
Cost of
sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Labor |
|
|
5,842 |
|
|
|
5,997 |
|
|
|
17,507 |
|
|
|
18,697 |
|
Occupancy |
|
|
1,894 |
|
|
|
1,996 |
|
|
|
5,811 |
|
|
|
6,216 |
|
Products and other operating costs |
|
|
1,953 |
|
|
|
1,992 |
|
|
|
5,322 |
|
|
|
5,208 |
|
Total cost of
sales |
|
|
9,689 |
|
|
|
9,985 |
|
|
|
28,640 |
|
|
|
30,121 |
|
General and administrative |
|
|
3,108 |
|
|
|
3,943 |
|
|
|
9,204 |
|
|
|
12,443 |
|
Depreciation and amortization |
|
|
1,464 |
|
|
|
1,879 |
|
|
|
4,692 |
|
|
|
5,375 |
|
Impairment of assets |
|
|
106 |
|
|
|
— |
|
|
|
936 |
|
|
|
— |
|
Impairment of goodwill |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
19,630 |
|
Total operating
expenses |
|
|
14,367 |
|
|
|
15,807 |
|
|
|
43,472 |
|
|
|
67,569 |
|
Operating loss from
continuing operations |
|
|
(1,836 |
) |
|
|
(2,885 |
) |
|
|
(5,803 |
) |
|
|
(29,009 |
) |
Interest expense |
|
|
(780 |
) |
|
|
(624 |
) |
|
|
(2,052 |
) |
|
|
(1,212 |
) |
Other non-operating income (expense), net |
|
|
(2,161 |
) |
|
|
378 |
|
|
|
(5,817 |
) |
|
|
877 |
|
Loss from continuing
operations before income taxes |
|
|
(4,777 |
) |
|
|
(3,131 |
) |
|
|
(13,672 |
) |
|
|
(29,344 |
) |
Income tax benefit |
|
|
143 |
|
|
|
66 |
|
|
|
101 |
|
|
|
198 |
|
Loss from continuing
operations after income taxes |
|
|
(4,634 |
) |
|
|
(3,065 |
) |
|
|
(13,571 |
) |
|
|
(29,146 |
) |
Loss from discontinued operations, net of income taxes |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,115 |
) |
Net loss |
|
|
(4,634 |
) |
|
|
(3,065 |
) |
|
|
(13,571 |
) |
|
|
(30,261 |
) |
Net income attributable to noncontrolling interests |
|
|
(210 |
) |
|
|
(122 |
) |
|
|
(584 |
) |
|
|
(382 |
) |
Net loss attributable
to common shareholders |
|
$ |
(4,844 |
) |
|
$ |
(3,187 |
) |
|
$ |
(14,155 |
) |
|
$ |
(30,643 |
) |
Loss from continuing
operations |
|
$ |
(4,634 |
) |
|
$ |
(3,065 |
) |
|
$ |
(13,571 |
) |
|
$ |
(29,146 |
) |
Other comprehensive income (loss) from continuing operations |
|
|
82 |
|
|
|
(3 |
) |
|
|
(109 |
) |
|
|
(205 |
) |
Comprehensive loss
from continuing operations |
|
|
(4,552 |
) |
|
|
(3,068 |
) |
|
|
(13,680 |
) |
|
|
(29,351 |
) |
Comprehensive loss from discontinued operations |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,115 |
) |
Comprehensive
loss |
|
$ |
(4,552 |
) |
|
$ |
(3,068 |
) |
|
$ |
(13,680 |
) |
|
$ |
(30,466 |
) |
Loss per share
attributable to common shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per share from continuing operations |
|
$ |
(1.68 |
) |
|
$ |
(2.25 |
) |
|
$ |
(6.33 |
) |
|
$ |
(21.66 |
) |
Loss per share from discontinued operations |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(.82 |
) |
Basic and diluted net loss per common share |
|
$ |
(1.68 |
) |
|
$ |
(2.25 |
) |
|
$ |
(6.33 |
) |
|
$ |
(22.48 |
) |
Weighted-average
number of shares outstanding during the period*: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
2,875,501 |
|
|
|
1,417,614 |
|
|
|
2,236,323 |
|
|
|
1,363,440 |
|
Diluted |
|
|
2,875,501 |
|
|
|
1,417,614 |
|
|
|
2,236,323 |
|
|
|
1,363,440 |
|
*Adjusted to reflect the impact of the 1:20 reverse stock split
that became effective on February 22, 2019.
The accompanying notes form an integral part of these
consolidated condensed financial statements.
Q3 2019 Adjusted EBITDA
(loss)(amounts in thousands)
|
|
Three months endedSeptember 30, |
|
|
Nine months endedSeptember 30, |
|
|
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Services |
|
$ |
10,230 |
|
|
$ |
10,391 |
|
|
$ |
30,704 |
|
|
$ |
31,220 |
|
Products |
|
|
2,301 |
|
|
|
2,531 |
|
|
|
5,781 |
|
|
|
6,540 |
|
Other |
|
|
— |
|
|
|
— |
|
|
|
1,184 |
|
|
|
800 |
|
Total revenue |
|
|
12,531 |
|
|
|
12,922 |
|
|
|
37,669 |
|
|
|
38,560 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Labor |
|
|
5,842 |
|
|
|
5,997 |
|
|
|
17,507 |
|
|
|
18,697 |
|
Occupancy |
|
|
1,894 |
|
|
|
1,996 |
|
|
|
5,811 |
|
|
|
6,216 |
|
Products and other operating costs |
|
|
1,953 |
|
|
|
1,992 |
|
|
|
5,322 |
|
|
|
5,208 |
|
Total cost of
sales |
|
|
9,689 |
|
|
|
9,985 |
|
|
|
28,640 |
|
|
|
30,121 |
|
Depreciation,
amortization and impairment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
1,464 |
|
|
|
1,879 |
|
|
|
4,692 |
|
|
|
5,375 |
|
Impairment of assets |
|
|
106 |
|
|
|
— |
|
|
|
936 |
|
|
|
— |
|
Impairment of goodwill |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
19,630 |
|
Total depreciation,
amortization and impairment |
|
|
1,570 |
|
|
|
1,879 |
|
|
|
5,628 |
|
|
|
25,005 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total general and
administrative expense |
|
|
3,108 |
|
|
|
3,943 |
|
|
|
9,204 |
|
|
|
12,443 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from continuing
operations |
|
|
(1,836 |
) |
|
|
(2,885 |
) |
|
|
(5,803 |
) |
|
|
(29,009 |
) |
Interest expense |
|
|
(780 |
) |
|
|
(624 |
) |
|
|
(2,052 |
) |
|
|
(1,212 |
) |
Other non-operating income (expense), net |
|
|
(2,161 |
) |
|
|
378 |
|
|
|
(5,817 |
) |
|
|
877 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from continuing
operations before income taxes |
|
|
(4,777 |
) |
|
|
(3,131 |
) |
|
|
(13,672 |
) |
|
|
(29,344 |
) |
Income tax benefit |
|
|
143 |
|
|
|
66 |
|
|
|
101 |
|
|
|
198 |
|
Loss from continuing
operations |
|
|
(4,634 |
) |
|
|
(3,065 |
) |
|
|
(13,571 |
) |
|
|
(29,146 |
) |
Loss from discontinued operations, net of income taxes |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,115 |
) |
Net loss |
|
|
(4,634 |
) |
|
|
(3,065 |
) |
|
|
(13,571 |
) |
|
|
(30,261 |
) |
Net income attributable to noncontrolling interests |
|
|
(210 |
) |
|
|
(122 |
) |
|
|
(584 |
) |
|
|
(382 |
) |
Net loss attributable
to common shareholders |
|
$ |
(4,844 |
) |
|
$ |
(3,187 |
) |
|
$ |
(14,155 |
) |
|
$ |
(30,643 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating loss from
continuing operations |
|
$ |
(1,836 |
) |
|
$ |
(2,885 |
) |
|
$ |
(5,803 |
) |
|
$ |
(29,009 |
) |
Add
back: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, amortization and impairment of assets |
|
|
1,570 |
|
|
|
1,879 |
|
|
|
5,628 |
|
|
|
5,375 |
|
Financing transaction, acquisition integration and other one-time
costs |
|
|
138 |
|
|
|
452 |
|
|
|
363 |
|
|
|
1,057 |
|
Goodwill impairment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
19,630 |
|
Stock-based compensation expense |
|
|
35 |
|
|
|
194 |
|
|
|
266 |
|
|
|
765 |
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to noncontrolling interests |
|
|
(210 |
) |
|
|
(3 |
) |
|
|
(584 |
) |
|
|
(382 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(loss) |
|
$ |
(303 |
) |
|
$ |
(363 |
) |
|
$ |
(130 |
) |
|
$ |
(2,564 |
) |
Same Store Sales
We use GAAP and non-GAAP measurements to assess
the trends in our business, including comparable store sales, a
non-GAAP measure we define as current period sales from stores
opened more than 12 months compared to those same stores’ sales in
the prior year period (“Comp Store Sales”). The measurement of Comp
Store Sales on a daily, weekly, monthly, quarterly and year-to-date
basis provides an additional perspective on XpresSpa’s total sales
growth when considering the influence of new unit contribution.
Revenue from Comp and Non-Comp Store sales is presented below:
|
|
Nine Months Ended September 30, 2019 |
|
|
Nine Months Ended September 30, 2018 |
|
|
% Inc/(Dec) |
|
|
|
Comp Store |
|
|
Non-Comp Store |
|
|
Total |
|
|
Comp Store |
|
|
Non-Comp Store |
|
|
Total |
|
|
Comp Store |
|
Products and Services |
|
$ |
35,642 |
|
|
$ |
843 |
|
|
$ |
36,485 |
|
|
$ |
34,878 |
|
|
$ |
2,882 |
|
|
$ |
37,760 |
|
|
|
2.2 |
% |
Comp Store Sales increased 2.2% during the nine
months ended September 30, 2019 as compared to the same period in
2018. XpresSpa had 51 open locations during the nine months ended
September 30, 2019 and 57 open locations during the comparable
period of 2018. Comp Store sales increased despite having six fewer
stores open primarily due to an increase in the average ticket per
transaction and by fixing retail supplier issues and upselling
services.
We plan to grow XpresSpa by continuing to focus
on spa-level productivity and leveraging retail partnerships to
increase units per transaction, which will contribute to the growth
of the Comp Store Sales and through the opening of new
locations.
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