XpresSpa Group, Inc. (Nasdaq: XSPA), a travel health and wellness
company, today reported record financial results for the fourth
quarter and full year ending December 31, 2021.
Scott Milford, XpresSpa Group CEO, stated, “We
ended 2021 on a high note with our strongest financial results in
company history. Quarterly revenue was $29.4 million, while net
income and adjusted EBITDA reached $3.3 million and $4.5 million,
respectively1, reflecting our second consecutive quarter of
profitability. We also generated significant operating cash flow of
$9.7 million for the quarter, of which $7.3 million was used to
repurchase shares under our buyback authorization. We further
believe our stock price is currently undervalued and our intention
is to actively repurchase additional shares, subject to blackout
restrictions.”
Mr. Milford continued, “While we believe testing
at major U.S. airports for Covid-19 variants will remain an
important part of travel for the foreseeable future, especially
international travel, we have already begun to position our
bio-surveillance efforts (such as Covid-19 testing) as a component
part of our future revenue strategy. Our go-forward plan will
include the expansion and integration of products and services
across our three brands; the execution of an ‘off-airport’ strategy
to deliver more products and services; the implementation of an
international expansion plan; and ensuring we can scale our growth
in a responsible way that drives shareholder value.”
Mr. Milford concluded, “We are reiterating our
expectations of over $100 million in revenue this year and $500
million in revenue by 2025. These targets are predicated upon what
we believe are significant opportunities for our businesses based
upon healthy unit level economics while leveraging an efficient
corporate structure. In realizing these projections, we will
elevate all of our brands while further expanding our services and
products to meet consumer needs.”
Business Update
XpresCheck® Health Centers
XpresCheck’s business has 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 15 operating XpresCheck locations operating in 12
airports.
Recent developments include:
- During the fourth quarter,
XpresCheck initiated a $2 million, eight-week pilot program with
the Centers for Disease Control and Prevention (CDC) in
collaboration with Concentric by Ginkgo. Under this program,
XpresCheck is conducting biosurveillance monitoring at four major
U.S. airports (JFK International Airport, Newark Liberty
International Airport, San Francisco International Airport, and
Hartsfield-Jackson Atlanta International Airport) aimed at
identifying existing and new SARS-CoV-2 variants. On January 31,
2022, we announced the extension of the program, bringing the total
contract to $5.6 million.
- Payments are based on certain
milestones specified in the contract. $1.6 million of the original
$2 million in revenue was recognized during the fourth quarter of
2021. We anticipate the remaining $4.0 million of the fully $5.6
million amount will be realized in the first and second quarters of
2022.
- In October 2021, XpresCheck opened
in Hartsfield-Jackson Atlanta International Airport (ATL),
converting a legacy XpresSpa located in Concourse E.
- In February 2022, a second
XpresCheck opened at Denver International Airport (DEN),
pre-security in the Great Hall.
- One additional XpresCheck location
is expected to open shortly in Orlando International Airport (MCO),
pre-security, in the South Walk area of the Main Terminal.
XpresSpa®
There are currently 16 operating XpresSpa
domestic locations (including one franchise location in
Austin-Bergstrom International Airport) and we expect to re-open
four additional domestic locations in the near-term. A majority of
the domestic XpresSpa locations are operating approximately eight
hours per day during the busiest hours (compared to up to 16 hours
per day pre-pandemic) improving labor productivity. Additionally,
XpresSpa implemented a price increase in mid-October 2021 which
further improved profitability. And as airport volumes improve, we
will continue to review our operating hours to optimize revenue
opportunity.
During the fourth quarter, we began testing
several new services to take advantage of a growing interest in
non-traditional spa services and expansion of our retail offering
to align more closely with the services we provide. We are
evaluating the success of these new initiatives at each airport on
an on-going basis and will incorporate changes to our approach as
more of the portfolio is reactivated.
There are also six international locations
operating, including three XpresSpa locations in Dubai
International Airport in the United Arab Emirates and three
XpresSpa locations in Schiphol Amsterdam Airport in the
Netherlands. We have also signed for five locations at Istanbul
Airport and expect to open the first store this summer.
Treat™
Treat is our new 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 (currently located in
JFK International Airport and opening soon in Phoenix Sky Harbor
International Airport and later this year in Salt Lake City
International Airport) provide access to health and wellness
services for travelers. 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.
Treat offers a website (www.treat.com) and
mobile app to complement the offering with relevant health and
wellness content designed to help people on the go with information
that could impact their travel. The platform provides travelers
access to a comprehensive online marketplace of services including
global illness tracker tools such as the Covid-19 Requirements Map,
on-demand chat care by licensed providers, a health wallet to store
personal and family health records (including Covid-19 testing
results), and a scheduler to arrange for direct care at one of our
on-site locations.
HyperPointe Acquisition
In 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 on-going bio surveillance efforts.
Terms of the transaction were $5.5 million in
cash, $1 million in common stock, along with potential additional
earn-out payments of up to $7.5 million over a three-year timeframe
based upon future performance; these earn-out payments may be
satisfied in cash or common stock or a combination thereof subject
to various terms and conditions.
HyperPointe currently operates as a stand-alone
entity within XpresSpa Group. Ezra Ernst, who is the current CEO of
HyperPointe, also serves as CEO of XpresCheck, reporting to Scott
Milford, XpresSpa Group CEO. Mr. Ernst is spearheading efforts to
further integrate XpresCheck’s bio-surveillance screening and
testing business with HyperPointe’s customer experience management
technology and data management know how in the healthcare and
pharmaceutical verticals to further drive new revenue
opportunities.
Share Repurchase Program
During the fourth quarter, we continued to
execute on our share repurchase program, repurchasing 4.5 million
shares at average cost of $1.65 per share, for a total of $7.3
million.
However, due to blackout restrictions, buybacks
to date in the first quarter have been severely limited. Based upon
the current share price, which management believes is materially
undervalued, our intention is to actively repurchase additional
shares when possible, subject to the limitations of blackout
restrictions.
As of March 14, 2022, there are 10.3 million
shares that may be purchased under the current authorization.
Liquidity and Financial
Condition
As of December 31, 2021, we had cash and cash
equivalents, excluding restricted cash, of $105.5 million, compared
to $89.8 million as of December 31, 2020. As noted above, during
the fourth quarter of 2021, we executed $7.3 million of stock
repurchases. We had total current assets of $109.0 million and
total current liabilities of $19.8 million as of December 31, 2021,
compared to $91.8 million and $13.5 million, respectively, as of
December 31, 2020, reflecting a continuing strong working capital
position as of the end of the most recent quarter.
Summary of Fourth Quarter 2021 Financial
Results
Total revenue during the three months ended
December 31, 2021 was $29.4 million compared to $0.3 million in the
corresponding period in 2020. The increase in revenue was primarily
due to the recognition of revenue from 14 XpresCheck locations plus
CDC funding totaling $26.9 million. We also generated $2.4 million
in revenue from our reopened XpresSpa locations.
Cost of SalesCost of sales increased to $15.8
million from $2.4 million in the prior year fourth quarter due to
the increase in XpresCheck testing volume.
General and Administrative ExpensesGeneral and
administrative expenses were $9.8 million compared to $5.0 million
for the year ago comparable period. The increase was primarily due
to start-up costs associated with XpresCheck, development of Treat,
and staffing for the increased revenue activities, offset by
reduced variable costs related to the closed XpresSpa locations and
the realized benefits of cost cutting and control initiatives
instituted throughout 2020. We will continue to evaluate our
G&A cost structure identifying areas to optimize spend as part
of our strategic imperative to organize for growth.
Income from OperationsIncome from operations
increased to $2.3 million compared to loss from operations of $17.4
million in the prior year fourth quarter, an increase of $19.7
million. Income from operations consists of $10.8 million
contributed by XpresCheck offset by losses at our XpresSpa and
Treat divisions and corporate-level expenses.
Net Income Attributable to Common
ShareholdersNet income attributable to common shareholders was $3.3
million compared to a net loss attributable to common shareholders
of $15.7 million in the prior year fourth quarter.
XpresCheck Operational
Metrics
Total Patients by Quarter
Q1 |
37,589 |
Q2 |
92,415 |
Q3 |
113,212 |
Q4 |
104,805 |
Total Rapid Test (Antigen and PCR) / Percent of
Total Patients by Quarter
Q1 |
27,651 |
74 |
% |
Q2 |
75,788 |
82 |
% |
Q3 |
110,376 |
97 |
% |
Q4 |
103,000 |
98 |
% |
Rapid PCR Tests / Percent of Total Rapid Tests
by Quarter
Q1 |
114 |
0 |
% |
Q2 |
32,382 |
43 |
% |
Q3 |
74,090 |
67 |
% |
Q4 |
101,526 |
99 |
% |
Non-GAAP Financial Metrics
Adjusted EBITDAOn a
non-GAAP basis, Adjusted EBITDA was $4.5 million during the fourth
quarter 2021, compared to an Adjusted EBITDA loss of $6.7 million
in the prior year fourth quarter. The improvement of $11.2 million
is indicative of the profitability of XpresCheck compared to the
legacy XpresSpa spa segment. The tables below on this release
provide a full reconciliation of the Adjusted EBITDA.
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.
Webcast and Conference Call
Today
We will 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 1-201-689-8263. To submit a question,
please email ir@xpresspagroup.com.
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.
About XpresSpa Group, Inc.
XpresSpa Group, Inc. (Nasdaq: XSPA) is a leading
global health and wellness holding company operating three distinct
brands: XpresCheck®, XpresSpa®, Treat™. XpresCheck is a leading
on-site airport provider of Covid-19 screening and testing with 15
locations in 12 domestic airports. XpresSpa is a leading airport
retailer of spa services and related health and wellness products,
with 45 locations in 21 airports globally. Treat is a travel health
and wellness brand that is providing on-demand access to healthcare
through technology and personalized services. The Company also
recently acquired HyperPointe, a leading digital healthcare and
data analytics relationship marketing agency servicing the global
healthcare and pharmaceutical industry.
To learn more about XpresSpa Group, visit:
www.XpresSpaGroup.comTo learn more about XpresCheck, visit:
www.XpresCheck.comTo learn more about XpresSpa, visit
www.XpresSpa.comTo learn more about Treat, visit: www.Treat.comTo
learn more about HyperPointe, visit: www.Hyperpointe.com
Twitter: @xprescheck and Instagram: @realxprescheckTwitter:
@XpresSpa and Instagram: @XpresSpaTwitter: @Treat_Care and
Instagram: @treat_care
Forward-Looking Statements
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.
Investor RelationsICRRaphael
Grossir@xpresspagroup.com(203) 682-8253
MediaJulie
FergusonJulie@jfprmedia.com(312) 385-0098
1 A full
reconciliation of Adjusted EBITDA is shown in the tables of this
release.
Financial results reported in this document are preliminary.
Final financial results and other disclosures will be reported in
our Annual Report on Form 10-K for the year ended December 31,
2021, and may differ from the results and disclosures in this
document due to, among other things, the completion of final review
procedures, the occurrence of subsequent events, or the discovery
of additional information.
XpresSpa
Group, Inc. and Subsidiaries |
|
CONDENSED
CONSOLIDATED BALANCE SHEETS |
|
(Unaudited) |
|
(In
thousands, except share and per share data) |
|
|
|
|
|
|
|
|
|
|
December 31, |
|
December 31, |
|
|
|
|
2021 |
|
|
|
|
2020 |
|
|
Current assets |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
105,506 |
|
|
|
$ |
89,801 |
|
|
Accounts receivable, net |
|
|
615 |
|
|
|
|
- |
|
|
Inventory |
|
|
1,763 |
|
|
|
|
657 |
|
|
Other current assets |
|
|
1,095 |
|
|
|
|
1,321 |
|
|
Total current assets |
|
$ |
108,979 |
|
|
|
$ |
91,779 |
|
|
|
|
|
|
|
|
|
Restricted cash |
|
$ |
751 |
|
|
|
$ |
701 |
|
|
Property and equipment, net |
|
|
6,660 |
|
|
|
|
4,161 |
|
|
Intangible assets, net |
|
|
3,730 |
|
|
|
|
870 |
|
|
Operating lease right of use assets |
|
|
4,336 |
|
|
|
|
3,034 |
|
|
Other assets |
|
|
2,810 |
|
|
|
|
2,588 |
|
|
Total assets |
|
$ |
127,266 |
|
|
|
$ |
103,133 |
|
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
Accounts payable, accrued expenses and other |
|
$ |
12,958 |
|
|
|
$ |
7,382 |
|
|
Current portion of operating lease liabilities |
|
|
2,736 |
|
|
|
|
2,797 |
|
|
Deferred revenue |
|
|
549 |
|
|
|
|
- |
|
|
Current portion of promissory note, unsecured |
|
|
3,584 |
|
|
|
|
3,298 |
|
|
Total current liabilities |
|
$ |
19,827 |
|
|
|
$ |
13,477 |
|
|
|
|
|
|
|
|
|
Long-term liabilities |
|
|
|
|
|
|
Promissory note, unsecured |
|
$ |
- |
|
|
|
$ |
2,355 |
|
|
Operating lease liabilities |
|
|
7,504 |
|
|
|
|
6,930 |
|
|
Total liabilities |
|
$ |
27,331 |
|
|
|
$ |
22,762 |
|
|
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
|
Common Stock, $0.01 par value per share, 150,000,000 shares
authorized; 105,327,379 and 94,058,853 shares issued and
outstanding as of December 31, 2021 and December 31, 2020,
respectively |
|
$ |
1,013 |
|
|
|
$ |
941 |
|
|
Additional paid-in capital |
|
|
487,306 |
|
|
|
|
475,709 |
|
|
Accumulated deficit |
|
|
(395,275 |
) |
|
|
|
(398,624 |
) |
|
Accumulated other comprehensive loss |
|
|
(312 |
) |
|
|
|
(220 |
) |
|
Total equity attributable to XpresSpa Group,
Inc. |
|
$ |
92,732 |
|
|
|
$ |
77,806 |
|
|
Noncontrolling interests |
|
|
7,203 |
|
|
|
|
2,565 |
|
|
Total equity |
|
|
99,935 |
|
|
|
|
80,371 |
|
|
Total liabilities and equity |
|
$ |
127,266 |
|
|
|
$ |
103,133 |
|
|
|
|
|
|
|
|
|
XpresSpa
Group, Inc. and Subsidiaries |
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE NET
INCOME/(LOSS) |
|
(Unaudited) |
|
(In
thousands, except share and per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended December 31, |
|
|
Year Ended December 31, |
|
|
|
|
2021 |
|
2020 |
|
|
|
|
2021 |
|
2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue, net |
|
|
|
|
|
|
|
|
|
|
Managed services fees |
|
$ |
18 |
|
|
$ |
- |
|
|
|
$ |
16,861 |
|
|
$ |
- |
|
|
Patient services revenue |
|
|
25,338 |
|
|
|
- |
|
|
|
|
50,689 |
|
|
|
- |
|
|
Services |
|
|
3,641 |
|
|
|
246 |
|
|
|
|
5,402 |
|
|
|
7,025 |
|
|
Products |
|
|
361 |
|
|
|
68 |
|
|
|
|
763 |
|
|
|
1,004 |
|
|
Other |
|
|
- |
|
|
|
9 |
|
|
|
|
14 |
|
|
|
356 |
|
|
Total revenue, net |
|
$ |
29,358 |
|
|
$ |
323 |
|
|
|
$ |
73,729 |
|
|
$ |
8,385 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost
of sales |
|
|
|
|
|
|
|
|
|
|
Labor |
|
$ |
5,234 |
|
|
$ |
810 |
|
|
|
$ |
12,653 |
|
|
$ |
6,290 |
|
|
Occupancy |
|
|
994 |
|
|
|
475 |
|
|
|
|
2,505 |
|
|
|
2,809 |
|
|
Products and other operating costs |
|
|
9,551 |
|
|
|
1,147 |
|
|
|
|
26,143 |
|
|
|
2,884 |
|
|
Total cost of sales |
|
$ |
15,779 |
|
|
$ |
2,432 |
|
|
|
$ |
41,301 |
|
|
$ |
11,983 |
|
|
Depreciation and amortization |
|
|
659 |
|
|
|
1,335 |
|
|
|
|
3,201 |
|
|
|
5,210 |
|
|
Impairment/disposal of assets |
|
|
815 |
|
|
|
9,037 |
|
|
|
|
837 |
|
|
|
15,356 |
|
|
General and administrative |
|
|
9,849 |
|
|
|
4,968 |
|
|
|
|
24,199 |
|
|
|
15,940 |
|
|
Total operating expenses |
|
$ |
27,102 |
|
|
$ |
17,772 |
|
|
|
$ |
69,538 |
|
|
$ |
48,489 |
|
|
Operating income (loss) |
|
$ |
2,256 |
|
|
$ |
(17,449 |
) |
|
|
$ |
4,191 |
|
|
$ |
(40,104 |
) |
|
Interest expense, net |
|
|
12 |
|
|
|
24 |
|
|
|
|
43 |
|
|
|
(1,832 |
) |
|
Gain (loss) on revaluation of warrants and conversion options |
|
|
- |
|
|
|
(230 |
) |
|
|
|
- |
|
|
|
(51,147 |
) |
|
Other non-operating expense, net |
|
|
(371 |
) |
|
|
1,247 |
|
|
|
|
(1,201 |
) |
|
|
858 |
|
|
Income (loss) before income taxes |
|
$ |
1,897 |
|
|
$ |
(16,408 |
) |
|
|
$ |
3,033 |
|
|
$ |
(92,225 |
) |
|
Income tax expense |
|
|
(61 |
) |
|
|
15 |
|
|
|
|
(140 |
) |
|
|
(7 |
) |
|
Net
income (loss) |
|
$ |
1,836 |
|
|
$ |
(16,393 |
) |
|
|
$ |
2,893 |
|
|
$ |
(92,232 |
) |
|
Net (income) loss attributable to noncontrolling interests |
|
|
1,439 |
|
|
|
710 |
|
|
|
|
456 |
|
|
|
1,744 |
|
|
Net
income (loss) attributable to XpresSpa Group, Inc. |
|
$ |
3,275 |
|
|
$ |
(15,683 |
) |
|
|
$ |
3,349 |
|
|
$ |
(90,488 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Net
income (loss) |
|
|
1,836 |
|
|
|
(16,393 |
) |
|
|
|
2,893 |
|
|
|
(92,232 |
) |
|
Other comprehensive income (loss) from operations |
|
|
(29 |
) |
|
|
30 |
|
|
|
|
(92 |
) |
|
|
63 |
|
|
Comprehensive income (loss) from continuing
operations |
|
$ |
1,807 |
|
|
$ |
(16,363 |
) |
|
|
$ |
2,801 |
|
|
$ |
(92,169 |
) |
|
Consolidated net income (loss) from discontinued
operations |
|
|
- |
|
|
|
- |
|
|
|
|
- |
|
|
|
- |
|
|
Other comprehensive income (loss) from discontinued operations |
|
|
- |
|
|
|
- |
|
|
|
|
- |
|
|
|
- |
|
|
Comprehensive income (loss) from discontinued
operations |
|
|
- |
|
|
|
- |
|
|
|
|
- |
|
|
|
- |
|
|
Comprehensive income (loss) |
|
$ |
1,807 |
|
|
$ |
(16,363 |
) |
|
|
$ |
2,801 |
|
|
$ |
(92,169 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Earnings / (Loss) per share |
|
|
|
|
|
|
|
|
|
|
Earnings / (Loss) per share from continuing operations |
|
|
0.03 |
|
|
|
(0.22 |
) |
|
|
|
0.03 |
|
|
|
(2.05 |
) |
|
Earnings / (Loss) per share from continuing operations |
|
|
- |
|
|
|
- |
|
|
|
|
- |
|
|
|
- |
|
|
Basic and diluted net earnings / loss per
share |
|
$ |
0.03 |
|
|
$ |
(0.22 |
) |
|
|
$ |
0.03 |
|
|
$ |
(2.05 |
) |
|
Weighted-average number of shares outstanding during the
period |
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
105,337,399 |
|
|
|
72,141,861 |
|
|
|
|
104,306,173 |
|
|
|
44,567,542 |
|
|
Diluted |
|
|
105,742,544 |
|
|
|
72,141,861 |
|
|
|
|
105,076,758 |
|
|
|
44,567,542 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
XpresSpa
Group, Inc. and Subsidiaries |
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|
|
(Unaudited) |
|
|
(In
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended December 31, |
|
|
Year Ended December 31, |
|
|
|
2021 |
|
|
2020 |
|
|
|
2021 |
|
|
2020 |
|
|
|
Cash
flows from operating activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
$ |
1,836 |
|
|
$ |
(16,393 |
) |
|
|
$ |
2,893 |
|
|
$ |
(92,232 |
) |
|
|
Adjustments
to reconcile net loss to net cash used in operating
activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Items included in net loss not affecting operating cash
flows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revaluation of warrants and conversion options |
|
- |
|
|
|
230 |
|
|
|
|
- |
|
|
|
51,147 |
|
|
|
Revaluation of contingent consideration |
|
- |
|
|
|
(315 |
) |
|
|
|
- |
|
|
|
(315 |
) |
|
|
Depreciation and amortization |
|
658 |
|
|
|
1,335 |
|
|
|
|
3,200 |
|
|
|
5,210 |
|
|
|
Impairment/disposal of assets |
|
815 |
|
|
|
9,037 |
|
|
|
|
837 |
|
|
|
15,356 |
|
|
|
Accretion of debt discount on notes |
|
- |
|
|
|
55 |
|
|
|
|
- |
|
|
|
1,125 |
|
|
|
Amortization of operating lease right of use asset |
|
557 |
|
|
|
447 |
|
|
|
|
1,719 |
|
|
|
2,015 |
|
|
|
Issuance of shares of Common Stock for payment of interest |
|
- |
|
|
|
- |
|
|
|
|
- |
|
|
|
497 |
|
|
|
Issuance of shares of Series E Preferred Stock for payment of
interest |
|
- |
|
|
|
- |
|
|
|
|
- |
|
|
|
63 |
|
|
|
Loss on the extinguishment of debt |
|
- |
|
|
|
- |
|
|
|
|
- |
|
|
|
182 |
|
|
|
Issuance of shares of Common Stock for services |
|
28 |
|
|
|
- |
|
|
|
|
377 |
|
|
|
135 |
|
|
|
Amortization of debt issuance costs |
|
- |
|
|
|
3 |
|
|
|
|
- |
|
|
|
128 |
|
|
|
Bad debt expense |
|
- |
|
|
|
(80 |
) |
|
|
|
- |
|
|
|
- |
|
|
|
Stock-based compensation |
|
733 |
|
|
|
362 |
|
|
|
|
2,856 |
|
|
|
1,328 |
|
|
|
(Gain)/Loss on equity investment |
|
330 |
|
|
|
(1,287 |
) |
|
|
|
1,046 |
|
|
|
(1,287 |
) |
|
|
Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Increase) decrease in inventory |
|
277 |
|
|
|
(19 |
) |
|
|
|
(1,108 |
) |
|
|
(10 |
) |
|
|
Decrease in accounts receivable, net |
|
(551 |
) |
|
|
- |
|
|
|
|
(477 |
) |
|
|
- |
|
|
|
Decrease in deferred revenue |
|
525 |
|
|
|
- |
|
|
|
|
(365 |
) |
|
|
- |
|
|
|
Other assets, current and non-current |
|
(1,808 |
) |
|
|
95 |
|
|
|
|
(1,289 |
) |
|
|
(281 |
) |
|
|
Other liabilities, current and non-current |
|
3,215 |
|
|
|
1,382 |
|
|
|
|
180 |
|
|
|
(2,904 |
) |
|
|
Increase (decrease) in accounts payable |
|
3,060 |
|
|
|
(2,938 |
) |
|
|
|
5,773 |
|
|
|
(5,169 |
) |
|
|
Net
cash provided by (used in) operating activities |
|
9,675 |
|
|
|
(8,086 |
) |
|
|
|
15,642 |
|
|
|
(25,012 |
) |
|
|
Cash
flows from investing activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition of property and equipment |
|
(2,712 |
) |
|
|
(870 |
) |
|
|
|
(5,362 |
) |
|
|
(3,969 |
) |
|
|
Cash acquired on consolidations of certain Variable Interest
Entities |
|
- |
|
|
|
- |
|
|
|
|
2,434 |
|
|
|
- |
|
|
|
Acquisition of software |
|
(1,152 |
) |
|
|
- |
|
|
|
|
(3,308 |
) |
|
|
(380 |
) |
|
|
Proceeds from the sale of subsidiary |
|
- |
|
|
|
- |
|
|
|
|
- |
|
|
|
- |
|
|
|
Proceeds from the sale of cost method investment |
|
- |
|
|
|
- |
|
|
|
|
- |
|
|
|
- |
|
|
|
Net cash used in investing activities – continuing
operations |
|
(3,864 |
) |
|
|
(870 |
) |
|
|
|
(6,236 |
) |
|
|
(4,349 |
) |
|
|
Net cash used in investing activities – discontinued
operations |
|
- |
|
|
|
- |
|
|
|
|
- |
|
|
|
- |
|
|
|
Net
cash used in investing activities |
|
(3,864 |
) |
|
|
(870 |
) |
|
|
|
(6,236 |
) |
|
|
(4,349 |
) |
|
|
Cash
flows from financing activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from direct offerings of Common Stock and warrants
exercises, net of costs |
|
78 |
|
|
|
36,494 |
|
|
|
|
17,085 |
|
|
|
110,619 |
|
|
|
Proceeds from borrowings under Paycheck Protection Program |
|
- |
|
|
|
- |
|
|
|
|
- |
|
|
|
5,653 |
|
|
|
Proceeds from additional borrowing from B3D |
|
- |
|
|
|
- |
|
|
|
|
- |
|
|
|
500 |
|
|
|
Proceeds from stock option exercises |
|
- |
|
|
|
2 |
|
|
|
|
13 |
|
|
|
7 |
|
|
|
Proceeds from funding advance |
|
- |
|
|
|
- |
|
|
|
|
- |
|
|
|
910 |
|
|
|
Repayment of funding advance |
|
- |
|
|
|
- |
|
|
|
|
- |
|
|
|
(819 |
) |
|
|
Repayment of Paycheck Protection Program |
|
(2,070 |
) |
|
|
- |
|
|
|
|
(2,070 |
) |
|
|
- |
|
|
|
Redemption of non-controlling interests |
|
(369 |
) |
|
|
- |
|
|
|
|
(502 |
) |
|
|
- |
|
|
|
Repurchase of Common Stocks |
|
(7,375 |
) |
|
|
- |
|
|
|
|
(7,825 |
) |
|
|
- |
|
|
|
Contributions from noncontrolling interests |
|
485 |
|
|
|
482 |
|
|
|
|
818 |
|
|
|
599 |
|
|
|
Distributions to noncontrolling interests |
|
(179 |
) |
|
|
(115 |
) |
|
|
|
(1,170 |
) |
|
|
(244 |
) |
|
|
Net
cash provided by (used in) financing activities |
|
(9,430 |
) |
|
|
36,863 |
|
|
|
|
6,349 |
|
|
|
117,225 |
|
|
|
Effect of
exchange rate changes on cash, cash equivalents and restricted
cash |
|
(36 |
) |
|
|
- |
|
|
|
|
- |
|
|
|
3 |
|
|
|
Increase
(decrease) in cash, cash equivalents and restricted cash |
|
(3,655 |
) |
|
|
27,907 |
|
|
|
|
15,755 |
|
|
|
87,867 |
|
|
|
Cash, cash
equivalents, and restricted cash at beginning of the period |
|
109,912 |
|
|
|
62,595 |
|
|
|
|
90,502 |
|
|
|
2,635 |
|
|
|
Cash, cash equivalents, and restricted cash at end of the
period |
$ |
106,257 |
|
|
$ |
90,502 |
|
|
|
$ |
106,257 |
|
|
$ |
90,502 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
XpresSpa
Group, Inc. and Subsidiaries |
|
RESULTS OF
OPERATIONS AND ADJUSTED EBITDA |
|
(Unaudited) |
|
(In
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended December 31, |
|
|
Year Ended December 31, |
|
Revenue: |
2021 |
|
|
2020 |
|
|
|
2021 |
|
|
2020 |
|
|
Managed services fees |
$ |
18 |
|
|
$ |
- |
|
|
|
$ |
16,861 |
|
|
$ |
- |
|
|
Patient service revenue |
|
25,338 |
|
|
|
- |
|
|
|
|
50,689 |
|
|
|
- |
|
|
Services |
|
3,641 |
|
|
|
246 |
|
|
|
|
5,402 |
|
|
|
7,025 |
|
|
Products |
|
361 |
|
|
|
68 |
|
|
|
|
763 |
|
|
|
1,004 |
|
|
Other |
|
- |
|
|
|
9 |
|
|
|
|
14 |
|
|
|
356 |
|
|
Total revenue |
$ |
29,358 |
|
|
$ |
323 |
|
|
|
$ |
73,729 |
|
|
$ |
8,385 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost
of sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
Labor |
$ |
5,234 |
|
|
$ |
810 |
|
|
|
$ |
12,653 |
|
|
$ |
6,290 |
|
|
Occupancy |
|
994 |
|
|
|
475 |
|
|
|
|
2,505 |
|
|
|
2,809 |
|
|
Product and other operating costs |
|
9,551 |
|
|
|
1,147 |
|
|
|
|
26,143 |
|
|
|
2,884 |
|
|
Total cost of sales |
$ |
15,779 |
|
|
$ |
2,432 |
|
|
|
$ |
41,301 |
|
|
$ |
11,983 |
|
|
Depreciation and amortization |
|
659 |
|
|
|
1,335 |
|
|
|
|
3,201 |
|
|
|
5,210 |
|
|
Impairment/disposal of assets |
|
815 |
|
|
|
9,037 |
|
|
|
|
837 |
|
|
|
15,356 |
|
|
General and administrative |
|
9,849 |
|
|
|
4,968 |
|
|
|
|
24,199 |
|
|
|
15,940 |
|
|
Total operating expense |
$ |
27,102 |
|
|
$ |
17,772 |
|
|
|
$ |
69,538 |
|
|
$ |
48,489 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) from operations |
$ |
2,256 |
|
|
$ |
(17,449 |
) |
|
|
$ |
4,191 |
|
|
$ |
(40,104 |
) |
|
Interest expense, net |
|
12 |
|
|
|
24 |
|
|
|
|
43 |
|
|
|
(1,832 |
) |
|
Gain (loss) on revaluation of warrants and conversion options |
|
- |
|
|
|
(230 |
) |
|
|
|
- |
|
|
|
(51,147 |
) |
|
Other non-operating expense, net |
|
(371 |
) |
|
|
1,247 |
|
|
|
|
(1,201 |
) |
|
|
858 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income taxes |
$ |
1,897 |
|
|
$ |
(16,408 |
) |
|
|
$ |
3,033 |
|
|
$ |
(92,225 |
) |
|
Income tax expense |
|
(61 |
) |
|
|
15 |
|
|
|
|
(140 |
) |
|
|
(7 |
) |
|
Net
loss from operations |
$ |
1,836 |
|
|
$ |
(16,393 |
) |
|
|
$ |
2,893 |
|
|
$ |
(92,232 |
) |
|
Loss from discontinued operations, net of income taxes |
|
- |
|
|
|
- |
|
|
|
|
- |
|
|
|
- |
|
|
Net
income (loss) |
$ |
1,836 |
|
|
$ |
(16,393 |
) |
|
|
$ |
2,893 |
|
|
$ |
(92,232 |
) |
|
Net (income) loss attributable to noncontrolling interests |
|
1,439 |
|
|
|
710 |
|
|
|
|
456 |
|
|
|
1,744 |
|
|
Net
income (loss) attributable to common shareholders |
$ |
3,275 |
|
|
$ |
(15,683 |
) |
|
|
$ |
3,349 |
|
|
$ |
(90,488 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from operations |
$ |
2,256 |
|
|
$ |
(17,449 |
) |
|
|
$ |
4,191 |
|
|
$ |
(40,104 |
) |
|
Add
back: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
659 |
|
|
|
1,335 |
|
|
|
|
3,201 |
|
|
|
5,210 |
|
|
Impairment/disposal of assets |
|
815 |
|
|
|
9,037 |
|
|
|
|
837 |
|
|
|
15,356 |
|
|
Stock-based compensation expense |
|
733 |
|
|
|
362 |
|
|
|
|
2,856 |
|
|
|
1,328 |
|
|
Adjusted EBITDA |
$ |
4,463 |
|
|
$ |
(6,715 |
) |
|
|
$ |
11,085 |
|
|
$ |
(18,210 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
XpresSpa (NASDAQ:XSPA)
Historical Stock Chart
From Mar 2024 to Apr 2024
XpresSpa (NASDAQ:XSPA)
Historical Stock Chart
From Apr 2023 to Apr 2024