Company expects to deliver strong second
quarter results and is on track to meet or exceed full-year
guidance
Xponential Fitness, Inc. (NYSE: XPOF), the largest global
franchisor of boutique fitness brands, today provided second
quarter 2022 operating highlights and announced it will release its
second quarter 2022 financial results on Thursday, August 11, 2022
after the market closes.
“Xponential Fitness expects to deliver strong results for the
second quarter of 2022 and has continued to reinforce its position
as the leading provider of boutique fitness globally,” said Anthony
Geisler, Chief Executive Officer of Xponential Fitness, Inc. “We
saw consistent strength across all of our key operating metrics in
the second quarter as consumers continue to prioritize health and
wellness as a necessary investment, not discretionary spend. While
no one is entirely immune from inflation or overall macroeconomic
uncertainty, we are delivering on our expectations. Xponential
entered the second half of 2022 on solid ground and is on track to
meet or exceed guidance metrics for the year.”
Q2 2022 Operating Highlights
For the quarter ended June 30, 2022, the Company is providing
the following preliminary results. Please note that all figures are
for North America unless otherwise noted as global:
- Opened 128 studios, increasing global open studios to
2,357;
- Sold 251 licenses, increasing total licenses sold to 4,935
across 10 brands globally;
- Grew total members by 32% year-over-year to 539,000, up from
408,000 in Q2 2021;
- Grew studio visits by 28% year-over-year to 9.7 million, up
from 7.6 million in Q2 2021;
- Increased system-wide sales(1) to $250 million, up 45% from
$172 million in Q2 2021;
- Delivered same store sales(2) growth of 25%, compared to 129%
in Q2 2021; and
- Achieved Q2 2022 run-rate average unit volume (AUV)(3) of
$480,000, compared to $384,000 in Q2 2021.
Second Quarter 2022 Conference Call
Xponential Fitness will release its second quarter 2022
financial results on Thursday, August 11, 2022 after the market
closes. Management will host a conference call to discuss the
results at 1:30 p.m. PT / 4:30 p.m. ET the same day.
To access the event by telephone, please dial (877) 407-9716 and
provide conference ID 13730206 approximately 15 minutes prior to
the start time to allow time for registration. International
callers should dial +1 (201) 493-6779 and provide the same
conference ID.
The call will also be broadcast live over the Internet and can
be accessed in the Investor Relations section of Xponential
Fitness’ website at https://investor.xponential.com/. To listen to
the live webcast, please visit the site at least 15 minutes prior
to the start time to register, download and install any necessary
audio software.
For those unable to join for the live presentation, a replay of
the call will be available after the live presentation through
August 25, 2022. To access the replay, dial (844) 512-2921 (U.S.
and Canada) or +1 (412) 317-6671 (International) and enter the pin
number: 13730206. A replay of the webcast also will be available
following the event, accessible in the Investor Relations section
of Xponential Fitness’ website at
https://investor.xponential.com/.
About Xponential Fitness, Inc.
Xponential Fitness, Inc. (NYSE: XPOF) is the largest global
franchisor of boutique fitness brands. Through its mission to make
boutique fitness accessible to everyone, the Company operates a
diversified platform of ten 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 Canada, and through master franchise or international
expansion agreements in 12 additional countries. Xponential
Fitness' portfolio of brands includes Club Pilates, the largest
Pilates brand in the United States; CycleBar, the largest indoor
cycling brand in the United States; StretchLab, a concept offering
one-on-one and group stretching services; Row House, the largest
franchised indoor rowing brand in the United States; AKT, a
dance-based cardio workout combining toning, interval and circuit
training; YogaSix, the largest franchised yoga brand in the United
States; Pure Barre, a total body workout that uses the ballet barre
to perform small isometric movements, and the largest Barre brand
in the United States; 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.
Forward-Looking Statements
This press release contains forward-looking statements that are
based on current expectations, estimates, forecasts and projections
based on management's judgment, beliefs, current trends, and
anticipated performance, including statements regarding the
preliminary financial results and operating highlights for the
quarter ended June 30, 2022, timing of earnings release for the
second quarter of 2022 and full year 2022 financial guidance.
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 the 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 of reputation and brand awareness; material weakness in our
internal control over financial reporting; and other risks as
described in our SEC filings, including our Annual Report on Form
10-K for the full year ended December 31, 2021 filed by Xponential
Fitness with the SEC 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 Fitness
undertakes no duty to update such information, except as required
under applicable law.
Footnotes
1System-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.
3AUV 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 consists of average
quarterly sales for all studios that are at least 6 months old at
the beginning of the respective quarter, multiplied by four.
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/20220728005046/en/
Kimberly Esterkin Addo Investor Relations
investor@xponential.com (310) 829-5400
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