- Company expects to meet or exceed the high-end of full year
2021 outlook
Xponential Fitness, Inc. (NYSE: XPOF), a curator of leading
boutique fitness brands, today provided 2021 operating highlights
and announced the Company’s participation at the Jefferies Virtual
Winter Restaurant, Foodservice, Gaming, Lodging and Leisure Summit
on January 24, 2022.
2021 Operating Highlights
Please note that with the exception of studios opened and
licenses sold, operating highlights exclude BFT, the Company’s
tenth brand acquired on October 13, 2021, and represent North
America only.
For the full year ended December 31, 2021, the Company:
- Surpassed over 2,100 open studios, and increased total licenses
sold to over 4,400 across 10 brands globally;
- Grew total members by 49% year-over-year to 449,000, up from
300,000 in 2020 and 348,000 in 2019;
- Grew studio visits by 54% year-over-year to 29.7 million, up
from 19.2 million in 2020 and 25.2 million in 2019;
- Increased system-wide sales(1) to $708 million, up 60% from
$442 million in 2020, and up 26% from $560 million in 2019;
- Delivered same store sales(2) growth of 41%, up from (34%) in
2020 and 9% in 2019; and
- Achieved Q4 2021 run-rate average unit volume (AUV)(3) of
$446,000, compared to $286,000 in Q4 2020 and $477,000 in Q4
2019.
“Xponential Fitness delivered strong results in the fourth
quarter of 2021, in which we continued to grow system-wide sales,
total members and studio visits,” said Anthony Geisler, Chief
Executive Officer of Xponential Fitness, Inc. “As a result of the
resiliency and momentum of our business, we expect to meet or
exceed the high-end of our full year 2021 outlook. Despite concerns
over the COVID-19 Omicron variant, the demand for our boutique
fitness offering remains strong, as existing and new members seek
out safe and effective workout regimens to maintain their physical
wellbeing. We are grateful for the success of our franchise
partners this past year and are looking forward to building upon
this momentum in 2022.”
2021 Outlook
The Company expects to meet or exceed the high-end of the
previously provided full year 2021 outlook:
- New studio openings in the range of 230 to 250;
- North America system-wide sales in the range of $690.0 million
to $700.0 million;
- Revenue in the range of $147.0 million to $148.5 million;
and
- Adjusted EBITDA in the range of $25.0 million to $26.0
million.
Xponential Fitness plans to report its fourth quarter and full
year 2021 results and provide full year 2022 outlook in early
March. The date of the Company’s earnings conference call will be
announced in the coming weeks.
Participation at the Jefferies Winter Restaurant,
Foodservice, Gaming, Lodging and Leisure Summit
The Xponential Fitness management team will be participating at
the Jefferies Winter Restaurant, Foodservice, Gaming, Lodging and
Leisure Summit, which is to be held virtually January 24 – 25,
2022. Anthony Geisler, Chief Executive Officer; John Meloun, Chief
Financial Officer; and Sarah Luna, President, are scheduled to
present on Monday, January 24, 2022 at 12:00 p.m. ET and will
participate in virtual meetings with investors throughout the
day.
The presentation will be broadcast live over the Internet and
can be accessed in the Investor Relations section of Xponential
Fitness’ website at https://investor.xponential.com/. In addition
to the live webcast, a replay will be available on the Company’s
website following the event.
About Xponential Fitness, Inc.
Founded in 2017 and headquartered in Irvine, California,
Xponential Fitness, Inc. (NYSE: XPOF) is a curator of leading
boutique fitness brands across multiple verticals. Through its
mission to make boutique fitness accessible to everyone, the
Company has built and curated a diversified platform of ten
boutique fitness brands spanning across verticals including
Pilates, indoor cycling, barre, stretching, rowing, dancing,
boxing, running, functional training and yoga. In partnership with
its franchisees, Xponential Fitness offers energetic, accessible,
and personalized workout experiences led by highly-qualified
instructors in studio locations across 48 U.S. states and through
master franchise agreements or international expansion in 11
additional countries. Xponential Fitness' portfolio of brands
includes Club Pilates, the nation's largest Pilates brand;
CycleBar, the nation's largest indoor cycling brand; StretchLab, a
concept offering one-on-one and group stretching services; Row
House, a high-energy, low-impact indoor rowing workout; AKT, a
dance-based cardio workout combining toning, interval and circuit
training; YogaSix, the largest franchised yoga brand; Pure Barre, a
total body workout that uses the ballet barre to perform small
isometric movements; STRIDE, a treadmill-based cardio and strength
training concept; Rumble, a boxing-inspired full-body workout; and
BFT, a functional training and strength-based program. For more
information, please visit the Company’s website at
xponential.com.
Non-GAAP Financial Measures
In addition to our results determined in accordance with GAAP,
we believe non-GAAP measures are useful in evaluating our operating
performance. We use certain non-GAAP financial information, such as
EBITDA and Adjusted EBITDA, and other unusual non-operating or
non-recurring items that we believe are not representative of our
core business or future operating performance, to evaluate our
ongoing operations and for internal planning and forecasting
purposes. We believe that non-GAAP financial information, when
taken collectively with comparable GAAP financial measures, is
helpful to investors because it provides consistency and
comparability with past financial performance, and provides
meaningful supplemental information regarding our performance by
excluding certain items that may not be indicative of our business,
results of operations or outlook. However, non-GAAP financial
information is presented for supplemental informational purposes
only, has limitations as an analytical tool, and should not be
considered in isolation or as a substitute for financial
information presented in accordance with GAAP. In addition, other
companies, including companies in our industry, may calculate
similarly titled non-GAAP measures differently or may use other
measures to evaluate their performance, all of which could reduce
the usefulness of our non-GAAP financial measure as tools for
comparison. We seek to compensate such limitations by providing a
detailed reconciliation for the non-GAAP financial measures to the
most directly comparable financial measures stated in accordance
with GAAP. Investors are encouraged to review the related GAAP
financial measures and the reconciliation of the non-GAAP financial
measures to their most directly comparable GAAP financial measures
and not rely on any single financial measure to evaluate our
business.
Forward-Looking Statements
This press release contains forward-looking statements that are
based on current expectations, estimates, forecasts and projections
of future performance based on management's judgment, beliefs,
current trends, and anticipated product performance. These
forward-looking statements include, without limitation, statements
relating to projected financial and performance information such as
annual revenue, Adjusted EBITDA, our expectations to meet or exceed
our full year 2021 outlook and the continuing growth of our
business in 2022. Forward-looking statements involve risks and
uncertainties that may cause actual results to differ materially
from those contained in the forward-looking statements. These
factors include, but are not limited to, the impact of COVID-19
pandemic on our business and franchisees; our relationships with
master franchisees and franchisees; difficulties and challenges in
opening studios by franchisees; the ability of franchisees to
generate sufficient revenues; risks relating to expansion into
international markets; loss or reputation and brand awareness;
material weakness in our internal control over financial reporting;
and other risks as described in our SEC filings, including our
Quarterly Report on Form 10-Q for the three months ended September
30, 2021 filed by Xponential with the SEC on November 12, 2021 and
other periodic reports filed with the SEC. Other unknown or
unpredictable factors or underlying assumptions subsequently
proving to be incorrect could cause actual results to differ
materially from those in the forward-looking statements. Although
we believe that the expectations reflected in the forward-looking
statements are reasonable, we cannot guarantee future results,
level of activity, performance, or achievements. You should not
place undue reliance on these forward-looking statements. All
information provided in this press release is as of today's date,
unless otherwise stated, and Xponential undertakes no duty to
update such information, except as required under applicable
law.
Footnotes
1 System-wide sales represent gross sales by all studios.
System-wide sales includes sales by franchisees that are not
revenue realized by us in accordance with GAAP. While we do not
record sales by franchisees as revenue, and such sales are not
included in our consolidated financial statements, this operating
metric relates to our revenue because we receive approximately 7%
and 2% of the sales by franchisees as royalty revenue and marketing
fund revenue, respectively. We believe that this operating measure
aids in understanding how we derive our royalty revenue and
marketing fund revenue and is important in evaluating our
performance. System-wide sales growth is driven by new studio
openings and increases in same store sales. Management reviews
system-wide sales monthly, which enables us to assess changes in
our franchise revenue, overall studio performance, the health of
our brands and the strength of our market position relative to
competitors.
2 Same store sales refer to period-over-period sales comparisons
for the base of studios. We define the same store sales base to
include studios in North America that have been open for at least
13 calendar months as of the measurement date. Any transfer of
ownership of a studio does not affect this metric. We measure same
store sales based solely upon monthly sales as reported by
franchisees. This measure highlights the performance of existing
studios, while excluding the impact of new studio openings.
Management reviews same store sales to assess the health of the
franchised studios.
3 AUV is calculated by dividing sales during the applicable
period for all studios being measured by the number of studios
being measured. Quarterly run-rate AUV is calculated as the
quarterly AUV multiplied by four, for studios that are at least 6
months old at the beginning of the respective quarter. Monthly
run-rate AUV is calculated as the monthly AUV multiplied by twelve,
for studios that are at least 6 months old at the beginning of the
respective month. AUV growth is primarily driven by changes in same
store sales and is also influenced by new studio openings.
Management reviews AUV to assess studio economics.
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version on businesswire.com: https://www.businesswire.com/news/home/20220111005591/en/
Kimberly Esterkin Addo Investor Relations
investor@xponential.com (310) 829-5400
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