XWELL, Inc. Reports Third Quarter 2022 Results
Strengthening Direction as Leading Authority in Wellness for ‘People on the Go’
Rebranded as XWELL to Reflect Wellness Evolution
Early Successes Evolving Retail Segment
Refreshing Core Spa Business
Continued Success Expanding
Laying Foundation for Profitability
We’re continuing to evolve our organization and, reflecting the Company’s commitment to better serve clients, optimize efficiencies, and deliver long-term growth, management has recently:
- Rebranded to XWELL, reflecting the Company’s wellness evolution
- Reopened a refreshed XpresSpa® location at JFK’s Terminal 4
- Opened a new Treat™ location in
Salt Lake City International Airport
- Opened three XpresSpa locations at Turkey’s
Istanbul Airport, with two additional Istanbullocations expected to open by year-end, and additional growth in Abu Dhabiin 2023
- Scaled new retail products, integrated innovative health and wellness technologies, and introducing a new XWELL Loyalty Rewards Program, each designed to drive customer engagement, strengthen brand presence, and increase foot traffic
- Continued to support and expand the
Centers for Disease Control and Prevention( CDC) traveler-based genomic surveillance program through its partnership with Ginkgo Bioworks
- Reduced cash operating costs by
$1 milliona month; shuttered five unprofitable XpresCheck® locations during the third quarter with plans to close another seven during the fourth quarter
- Retained the services of Benchmark to help identify potential acquisition targets
“We’re aggressively executing on our strategic objectives and, since the end of the second quarter, have continued to make meaningful progress expanding internationally, rolling out our new retail strategy, adding new customers, and reducing infrastructure costs,” commented
Third Quarter Business Update
There are currently 20 operating XpresSpa domestic locations. Internationally, there are 9 XpresSpa locations currently operating. These consist of three at
Bolstered by 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, the Company is executing its 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 products in-store and on-line, as well as deploying plans to refresh the look and appearance of some XpresSpa locations.
Treat is a travel health and wellness brand and a fully integrated concept blending technology with traditional brick and mortar offerings to provide a holistic approach to physical and mental well-being for travelers. Treat’s on-site centers are currently located at
The Treat 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 the Company’s 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 also 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.
As previously discussed, as countries have continued to relax their testing requirements, testing volumes at the Company’s XpresCheck locations have decreased. 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 closing unprofitable XpresCheck locations without compromising its biosurveillance apparatus.
During the third quarter, the Company closed five unprofitable XpresCheck locations and commenced plans to close another seven locations during the fourth quarter. Looking ahead to 2023, the Company expects to operate two XpresCheck locations and five biosurveillance stations serving the XpresCheck business.
In late 2021, in collaboration with the
During the third quarter of 2022, XpresCheck, in partnership with Ginkgo Bioworks (and in continuation of their support to the CDC’s traveler-based SARS-CoV-2 genomic surveillance program) were awarded a new contract. The partnership is expected to support public health and biosecurity services totaling approximately
Share Repurchase Program
Year-to-date, the Company has repurchased approximately 19.5 million shares. During the third quarter of 2022, the Company continued to execute on its share repurchase program, repurchasing approximately 11.0 million shares at average price of
Liquidity and Financial Condition
Summary of Third Quarter 2022 Financial Results
Total revenue during the three months ended
Cost of Sales
Cost of sales decreased to
General and Administrative Expenses
General and administrative expenses were
Income from Operations
Loss from operations was
Net Income Attributable to Common Shareholders
Net loss attributable to common shareholders was
XpresCheck Operational Metrics
Total Patients by Quarter
Total Rapid Test (Antigen and PCR) / Percent of Total Patients by Quarter
Rapid PCR Tests / Percent of Total Rapid Tests by Quarter
Non-GAAP Financial Metrics
On a non-GAAP basis, Adjusted EBITDA was
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
|Three months ended
|Income (loss) from operations||$||(7,654)||7,057|
|Depreciation and amortization||1,564||852|
|Impairment of long-lived assets||677||---|
|Loss on disposal of assets, net||325||---|
|Impairment of operating lease right-of-use assets||38||---|
|Stock-based compensation expense||483||790|
|Adjusted EBITDA /(Loss)||$||(4,567)||8,699|
Webcast and Conference Call Today
XWELL will host a webcast and conference call at
The live and later archived webcast can be accessed from the Investor Relations section of the Company’s website at http://xwell.com. Visitors to the website should select the “Investors” tab and navigate to the “Events” link to access the webcast.
XWELL, Inc. (Nasdaq: XWEL) is a leading global health and wellness holding company operating four brands: XpresSpa®, Treat™, XpresCheck® and HyperPointe.
- XpresSpa is a leading airport retailer of wellness services and related products, with 29 locations in 14 airports globally.
- Treat is a travel health and wellness brand and a fully integrated concept blending technology with traditional brick and mortar offerings to provide a holistic approach to physical and mental well-being for travelers, currently located in three airports.
- XpresCheck is a leading provider of COVID-19 screening and diagnostic testing in partnership with the
CDCand Concentric by Ginkgo, conducting biosurveillance monitoring in its airport locations to identify new SARS-CoV2 variants of interest and concern as well as other pathogens entering the country from across the world.
- HyperPointe is a leading digital healthcare and data analytics relationship company serving the global healthcare industry.
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 XWELL 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 the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, and other
Source: XWELL, Inc.