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XpresSpa (XSPA)

Participants
James Berry Chief Financial Officer
Scott Milford Chief Executive Officer
Raphael Gross Investor Relations
Thierry Wuilloud Water Tower Research
Scott Buck H.C. Wainwright
Call transcript
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Operator

Greetings, and welcome to XpresSpa Group's Fourth Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn this conference over to James Berry, Chief Financial Officer. sir. you, Thank

begin. You may

James Berry

Thank your you today afternoon. joining for in XpresSpa for interest and Group. Good us

turn of the over I things, and the or XX-K XX, now ended issued financials SEC. XX, on assumptions call Before by statements may our to results contain Securities as file XXXX earnings preliminary. of new and CEO, reports the on the additional which materially you opinions variety Scott suggested filings, we XX-K discovery annual Milford, the our including December end for procedures, that with final offers Private Comments Form ended note year other known the contained time as call and and following. include to, well Important to within of are would fourth first of involve review that to subsequent These of this in will the release on month that current made occurrence and XXXX. the differences set for of report Actual disclosures December the our or year I Scott. be results of the afternoon, such report I call statements. those his and document information. a to Act uncertainties. in quarter current full disclosures statements the results, in and Litigation events and forth year like may based Reform among our from will with other factors mentioned our financial periodic results completion on the today's the need unknown forward-looking advise cause financial along time forward-looking Form review that the by on reported prepared in from Please the XXXX, SEC remarks this risks filed such and are forward-looking may XXXX, Final meaning might of differ due differ those be from other

Scott Milford

everyone. moment. engage team to efforts prior In impacts. long-term our accomplish management your near to leadership you, Thank afternoon. James, my CEO I aligned and repurchasing are the interests we working accelerate authorization. you desire $XXX we as the Board set many on the that been firmly will term, and and under I'm active positive in we to the Since designed that the stock we of return prior short- both my people our collective of just and to leading to as can we know million assured us experience with I for generating well we improve as to provider as as the will achievable a imperatives a time there to incorporating of have believe appreciate wellness I develop teams with revenue in our business strengthen we want the the We that stock imperatives believe price and in pursue to share disappointment help a that to investors. in We share us in foundation by team and are everything January, company this our the value will get realize our taking opportunities go. my first, experience this taking at But our health our and hello, that and continue XXXX, shares strategic join in over believe XpresSpa are evolution us with leading have the strategic are I'll to shareholders doing be

were first the there declined. price as further believe the blackout so its year, quarter and to this, most periods doing share do value. is We ability restrained to stock's we even a has price between during our we Adding of of that to disconnect current our the subject of are this this because view

able adjusted quarter, as the to second income in of came consolidated of reported EBITDA. we to $XX quarter of and we when at years, $X.X we measured ever, income achieved delivery repurchase line next have million, we highest by in a quarter because all adjusted surpassing shares period, previous it However, Briefly do the and to EBITDA our incredible achievements. wider quarterly both generated accelerate would profitability our are so. These two $X.X the full on our were with top onset we ever fourth revenue have and weeks reporting compared intend net million, to and reached window million. Net blackout by before our

Our also liquidity remains strong. position

grown has our positive like future. long-term to million, share working balance balance how grow $XX.X accomplishments no million capital with had would a we a of $XXX.X to healthy intend as cash Our past And debt. and foundation, sheet our to to leverage with I we

leverage be even that confident we've to of technology revenue. across by them include certain to safety post-COVID as services scalable has Being objective our great health has To expectation, be portfolio airport our footprint products now the consumers customer a begin able supported to to infrastructure believe growth. focused And more execute profitable long-term to built fully brands delivery diagnostic all a more and and by services driving we're that restrictions to ensure critical and we serve optimize This our a into a create able that all across safety and pandemic with deliver efforts well-being, to and we as ever, first health. the wellness the that set start and equalizer. lift, than of And know, and and will of retail traffic both efficiency on will their As and strategic and we XpresCheck set are are incorporating invigorate unified locations. more proven on is are brands. services, even relevant integrated to our identify a to platform of our and offering our three XpresSpa

services incorporate We also and our higher-margin vitamin will locations. and IV as all hydration therapies, wellness XpresSpa services into XpresCheck such

adding to our aligning strategy, retail for more more begun to only not but Additionally, we our efficiently sale, expand already those products have offerings. service products

fortified For example, delivery through patches adding muscle delivery a or the of service. on-site or and of treatment hydration IV relaxation water back an to packets after neck the hydration adding continued even massage,

We have anxiety, purchase to specifically that work an products also and sinus set a allows integration work customer health brand unify including online to address wellness of to to allows be further location. designed of also issues services This and able that supported that affecting advance our customers begun under are issues, sleep our by to will locations for on travel kits us at travelers, respiratory and after the all name. strategy and e-commerce platform well-being, single purchase leaves our a long and

progress date. We have a our already later begun on effort report at and will this

our and strategic to by the complements build scale for and services locate second to us allows be growth imperative health will airport. in of Our wellness the concessionaires faster airport. our operating the airport capability airports imposed requirements an outside without delivering of to and offering believe outside We many

are sell can of Treat opportunity as opportunities our business the services And We accomplish return to expansion we this there and brand. natural businesses. a think as well. cruise We Treat are also office the venues as to as health starting see well. an like who in wellness we other travel to believe

levels, to relationships internationally. We and looking our operating in want our and in leverage off-airport with have announcing approach, while return towards partnership our are be partners, further already the already be full XpresSpa's in and back we'll our to international Dubai, current a soon. preparation And Amsterdam strong this taking to with advantage work outside strategy market in has of begun also picked those strategic of for priority, expand We relationships we Aligned soon not pre-pandemic Istanbul, have travel first to grow we further. growth up expect travel. of to opportunistic the airport,

new further international we through finally, made by We our we being efforts currently to expansion the pandemic, threat, position it's variant our work also for grow the those arise, a our bio that whether or help cash to having in another a And progress CDC. infrastructure strategy has an protect especially ongoing a And efforts altogether. like boots advances supported opportunities will further as to Despite doing We leverage manage when subsequent efficient still virus with as as an the emerges. report there to to growth calls. enables the relates and will to is And we platform building progress growth. be surveillance well, acquisition. are internationally ground threat the it believe country our intend to scalable strong are the on next strong

and cash that drive organization size an dedicate focused scale at Our us allows and fourth facilitate optimizes that building to value imperative strategic growth, viability. is only of more cost but our long-term available a and on to shareholder cannot

and profitability. And on efforts strong more we suffer ineffective. to This of improvement year. modest are drove in the a update, and other reliable services at rise to business requirements. In airport leaders model. by year, season this now testing supply we an fourth delivering the calls. such when quarter reached across in integrating medical testing, group a fortunate team we quarter transform was as and want reduction overseas of experience the services vitamin holidays, quarter centers seeing in are first following supplementing to importance only share during weaker the perhaps I surveillance chain services augment our on Having have This field setting. address, to at seen on Ukraine. a Treat holiday bio seasonally evolving work our in of relaxation for continued and pursuit is in to Omicron COVID COVID beyond we was our were the deliver second include wellness didn't making slower widely building, available that resulting as The of and particular, people with and our thank dedication established given This relationships me testing IVs, and volumes. expect demonstrates into rebounding support in I with pace. in hard boosters, in COVID providers, need during for the traffic streamline build us a on we Our Testing an teams XpresCheck. and infrastructure during within earnings testing higher-margin quarter of beginning the with testing, go. travel, on an every of testing of than travel XpresCheck. progress very and is lines other further and brands which to-date the something leaders wellness and with these Omicron the manual and going increased as and the same vision our kit efficient the with and more committed fourth continued the But the investments by not certainly much although our business care XpresCheck our we the hiring serves let investments slight and revenue from goes testing. as have variant Still, process footprint test as traveling driven many a recognize the which brands, now end volumes surprising now will platform quarter, the we who the travel, am a airport vaccinations compounded even in are work convenient reduction of in and what's and brand My leisure as U.S., dedicated waned importance European are already is the Russia growth. to increases the because collectively, to day all have embark key imperatives, of we has for testing each largely and record to fostered the And for James a report regular not health And such cost are to that on in strategic I in of milestones with our and the why including variant our hesitancy with are to I that sales technology public, a seen

Concourse recent XpresCheck, and a also their led converted are company a the early HyperPointe Most by International E largest very COVID services in longer our recently, in Ezra located and will opened Airport this Hartsfield-Jackson across U.S. COVID these airports. where of Importantly, testing. February. testing the legacy we locations shelf now Ernst, currently year location have in consists XX Atlanta than in by nature XX October life in which is who It in Hall XpresSpa is Airport in acquisition, we heads airports. sustainable pre-security Great Denver

that Orlando, to XpresCheck in this terminal. four previous of open area open two South shortly leadership, We the Under shared have main had the we additional to year. one will pre-security locations XpresCheck in the Walk potential

$X.X the in rapid for PCR given margin time, This our overwhelming at leverage in point thinking, a but substantially million now of how proceed the However, integrate this $XX are existing business $XXX with locations brands is to year. dramatically not our at cash generating versus of the our across at profile $XXX is the PCR Notably, support supported elevated bio our standard openings test, we additional flow shift price choosing efforts. patients intention all we'll operating which look and the the to surveillance us higher majority and test. has of to

also We during rapid fourth tests the day day X,XXX second up quarter. per third the tests from rapid quarter, during tests XXX PCR administered PCR per the per quarter day during and XXX

As for of airlines accounted fourth test and XX% major ability success percentage of Also quarter. during relationships driving rapid working with quarter our the third XpresCheck COVID the XX% during and is form agencies. government PCR to a tests, all those

$X.X among with for pilot, extended initial additional contract included but million, was bio the an beyond Germany expanded the surveillance at and for expansion pool the This India has major France, additional since initial Africa, other our South four U.K., and testing $X.X for adding Our million $X CDC airports been at-risk countries. million. totaling

in a last virus has fourth changes. variant additional surveillance half initial the that hopeful We rapidly are bio platform will of they of the revenue first to $X new lead pivot during revenue that it expansion. the will the program remainder us this countries contract's Most in quarter of have of the in but now Our the be recognized to ability was the year. monitor the believe or recognized million placed confidence the demonstrates further to year, as threat and

surveillance our the releasing weeks, will robust be data which of coming the in partners. bio platform of and the with have will value efficacy We network we demonstrate built

see eventually as Importantly, line airports implemented foundation program the extension government this contract for any of we further, already in the CDC's incoming with potentially XpresCheck similarly beyond a If expands can port program business place. upon could this be direction. this significant for

have Now open. improve XX us to we currently which took helping increase but operating still turning our a airport five modified four hours, to slated are spa business. as We is to locations have continues to spas in operating price well. October, Performance we domestically as and running additional

levels. levels, volumes about hours locations XpresSpa up pre-pandemic operating day day domestic pre-pandemic are of compared per XX but hours sales to to of the approximately tracking hours busiest And eight per pre-pandemic. sales Our at per XX% are about during hour XX% are

travel today's drive or of health we're to which consumer, we retail renewed service with and we their footprint. are as a cold products ability along deliver life currently environment. and our at that are will flu out the we services business six Internationally, such spa services integrated improve service travelers, improvement on and trend revenue. to in we will they services as further at to size can this to And across therapy brands. well-being in seeing services strategy offering are wellness And are in travel. to we unified To locations delivery a bring three due and our operating integrated a there Airport. expect with diagnostics all to, will look where hydration looking three expect the spend further more our to minor to add consist additional spas, roll willingness sales interest the of improve to of XpresSpa These and we see operating. dollars dramatically drive We services Amsterdam in new other at able among Dubai Further, revenue related that while on services Schiphol

global Istanbul, to at location discuss to now airport hubs, five the newest Treat. preparing for signed where expect to And to in have build that are locations including our open further expansion other first stores this let's up major we Turkey, summer. We and

hectic flu Travelers themselves after health Our have flights. airport around our on once clear and before for health the their focus delivery renew of can Treat pace weight newest IV illnesses these in brands. infusion improving security travel minutes and go, we one-stop more a brand a with meditation and wellness and a also believe virus, wellness their and hydration for from address needs a and people to of therapy. see unplug in being, through purchase XX other much a the diagnostic opportunity wellness the trip. environment is strategy board they the drift designed services interactive more airport clear a typically travelers we for or our And suite as all services. of low-impact individual product for Health analysis, integrated passengers as services well time looking self-guided and dwell of today cold, where solution and Through exercises, testing include through relaxing they like and can integrated other well on yoga,

at open be Lake Salt and soon in Phoenix JFK Sky We are currently City. and will opening Harbor

travel, to great a more unlike security. varied be we buying versus post pre-security patterns, JFK, more Treat variety attract first brand the we on relates services. there to consumers While Phoenix, expect and products limited demographic in wider believe to a customer family our an deal and opportunity with anticipated affluent an we organizer array as a centered originally a will learn and differences of pre of is it manager discerning of to location,

Treat Treat in products. our Our is JFK the meet will location to same travel Lake demand. a Salt provide rooms able our to also engineered retail use the that first half at location is be inviting providing will creating can a from offer more and to going XpresSpa. open because floor the be out services It intend in one's cost-efficient a former across experience next. with roll value opportunity about a Treat hybrid our plan major design. Phoenix to year retail room, more design will We original open to that third both offer floor a It It wellness eye. will and JFK be of they design airports plan additional in a locations health catch first other and and see also City to passersby more and activity greater We post-security more U.S. default more forward, this think

travelers and care tools including tracker arrange provider, services, travel. and a locations. direct a Our health records, as such global growth store builds both track marketplace a a of the XpresCheck at that licensed www.treat.com locations greenfield leveraging on-demand mobile a care a convert and scheduler as spa information their Treat illness include to existing brand. health wellness help provides and medical strategy on-site also app our one to impact well relevant online as could people with will go requirements to to The of the offers designed for at on by to content to and wallet this offering with family platform access complement website comprehensive personal the map, to COVID

Treat and we our travel, airports. year Treat as of the creation. be revenue will strategy. long-term position health This view from outside extends We out-of-airport because this the a is in but just our channels the offering revenue a leadership modest brand in play multiple will in brand operating leverage wellness with midterm it see value contribution

customer data that relationship digital and we've analytics. and the data marketing a marketing care we significant in experience analytics and recall in industry. care health HyperPointe, deep acquired health Finally, leading experience agency, HyperPointe management servicing pharmaceutical technological has and professional health patient experience global January, with care and

forward teams a for its suite also the been and and now product stand-alone We is upcoming capacity, technology XpresCheck verticals. in spearheading he COVID and to to to customer and have two nearly customers used is were additional centers further with Ernst, HyperPointe's care to services know-how. me. offerings infrastructure management is XpresCheck. business with to In by the and and who deploy working details as other and service serving HyperPointe has and testing entity integrate reporting efforts this technological other data technology within their CEO, and This HyperPointe of for now quarters. pharmaceutical led airports, as the to experience XpresCheck's operating travel sharing CEO develop Ezra look management years, of business potential further health We

with outstanding acquisitions transactions retail global we and the of the health this accretive results offerings. so, we over generating of and a but and long-term wellness success of a increasing And and I'll other value to of only for service expanding pursuing omnichannel to it our brands for that, vision turn services where stakeholders. lay both company portfolio they our broaden outside beginning, are With and and now inside James. appropriate its further the have The products airports, are developing today the foundation strategic

James Berry

you, Scott. Thank

was our to year. totaling recognition XpresCheck to plus to of and results the primarily $X.X business. increase locations consolidation $XX.X last million detail, prior from the incredibly I will The for end XX year As of Revenues $XX.X fourth we million to quarter what financial during in million. a revenue rose due great compared year, was CDC the marking the the of contract quarter a fourth strong now fantastic generated the

We of increased in also of decrease and revenues to to million costs approximately $X.X costs the of $XX.X the related airports ago cost period. increase to decreases for related comparable to the support million costs occupancy in administrative decline staffing concessions in Treat as from fourth reopen the in variable This XpresCheck, the quarter. to during sales variable from million year with location. due $X.X the XpresCheck, the locations. COVID. primarily million offset associated incurred in reduced a by a revenues, The somewhat of to offset the $X.X of products and associated generated primarily was the was costs $X Cost revenue the record with prior and increase the XpresSpa result compared expenses from rent sales were services million by due development received XpresSpa to XpresSpa year related closed and General

in are to an report recognized and $X.X common operating We a loss conversions due million in quarter. quarter compared proud the we million to prior prior revenue primarily the fourth the higher attributable in realized profit million options of income an shareholders of in year year warrants generated the loss of and common to net for compared net to operating prior quarter, XXXX. to the in to $XX.X attributable year $X.X quarter fourth million of on revaluation shareholders We $XX.X loss of

remains $X.X from respect we $X.X our flow equivalents generated with million of We of totaling for cash our to cash XXXX. December Finally, and strong which with $XXX.X liquidity repurchases. deployed GAAP cash million financials, operating as XX, share million

million we quarter, repurchased of the shares During outside fourth the X.X period. blackout

As severely the restricted share of million of blackout X.X announced end total, had XX.X due last program XXXX. repurchased periods. August been In shares available but the under to year, million million shares repurchase XX we remained the XXXX, XX,

our our believe current be adjusted EBITDA and within and stock the our to more. earnings was We investment repurchased given amortization compensation loss we We million good represents before for of to performance transactions certain $X.X we limits been to undervalued we excluding adjusted investors And of million cash that of define if basis, EBITDA a that for of periods the related EBITDA consider Center. stock-based expense On interest, of of allow of impairment is excludes course, quarter. investors a XpresCheck's disposal adjusted able $XX.X useful improvement and which to understand adjusted have related important believe In the particular, prior because an and $X.X primarily we core compared so, do vastly view to not which the non-GAAP have we profitability. business, XpresCheck active performance is for and analysts our taxes, price, adjusted to operating adjusted repurchasing EBITDA an far our million XpresCheck. fourth assets. Of it the indicative analyze intend these This in opportunity. blackout do be to as share We operating more year transactions our such presents would indicator to and Wellness are activities, it's depreciation meaningfully cash EBITDA operations. core the

in patients We are tested release fourth past growth with earnings interesting in have the percentages for with also the metrics along some over quarter, furnished opting we the rapid that the that respect to patients rapid and convenience, that PCR those choosing we more review the test. Please these more rapid are here is option. think takeaway but and the of serving patients, at lucrative your are we PCR

Finally, we guidance. are our revenue reiterating

of ask submit project invited afternoon. you We to to retail call project time taking call. in while questions XXXX were begin turn shareholders then over continue Thank for questions covering $XXX this We'll from million now happy be by today's ahead to over and who questions revenue, would Investor the questions. revenue. to we $XXX your by analysts, we in our For XXXX, to million from take Relations your our

Operator

we will a first Tower time, Water this be Our Instructions] At session. from Thierry of with conducting question-and-answer Research. Wuilloud question [Operator the comes line

with You question. may your proceed

Thierry Wuilloud

CDC with if can Maybe we relationship. start the

so contract with and permanent do ad CDC, with an potential to you hoc develop on? new more procure they're viruses or deal to had capability the to looking You've but basically think

Scott Milford

answer to happy that. I'm

done very work CDC the with the them. happy partnership we've I that with been has think in

to to first and our were think then I -- service and shores. by virus were pivot the to ability that our to and sample expanded We that. able CDC, initially of were the pilot that, it the the services days. airports And -- think they we virus pooling process were conducting quickly BAX the we in that able the hit seven identify I demonstrated deliver sample to were BAX a because within when our service

done, being with think we As to is continuing that, I partnership. and very of the CDC, progress again, the pleased of that's a work the forward result look the

Thierry Wuilloud

Great.

test. have COVID Asian those making requirements? travel. enable -- passenger any very imagine on any more the we're India, been signs updates point largest in restrictions at terms you of lift volumes. to and many and whether I changing had might countries And the have Moving travel and Do the primarily two in time, would have The destinations China maybe of easier seeing some

Scott Milford

not of requirements Asia. heard have out changing for of I any travel

end But relaxing read this month. I There variant read out tests them I you I of Europe India. think they're the if to report a and Asia, Omicron think again. in the both starting is some about requiring recently of grow still of was the towards news, in requirements their

And will so, over time. additional relaxation what happen I'm unsure

Thierry Wuilloud

quarantine Okay. Well, maybe requirements. there's been some

I that think if travel volume. spur some might more get still relaxed,

Scott Milford

Yes.

Thierry Wuilloud

Okay. just more question. Maybe one

So COVID-XX lot been on in focused success of XXXX. with tests obviously a XpresCheck has

your the menu location. there? to quickly You at and mentioned remark you could color you spa menu considering in more the that bit the there a with you high in in demand to you're on based -- Treat the add adding How what give with seeing were XpresCheck? Can the services is maybe location us maybe of

Scott Milford

for you asking Thank Yes. that.

unique services, the services injections to introducing medical a and having faster unique cold, into in that pace, have because able over Treat provider then C the vitamin the testing Treat much as be flu and of XpresCheck are, opportunity premises. the out a rolled on services hydration health and other our have -- in locations, some things on we we as can start, additional premises to bring We like vitamin and to environment. XpresCheck personnel diagnostic a of those deploy BXX IVs, well at We're easily time, therapy

Operator

of with H.C. line question the Wainwright. comes Buck next from Scott Our

You proceed question. your may with

Scott Buck

question, cost guess, to? the like in of feel you or of some my strategy, grow tweaks to investment whether a on the given it's of there corporate business you type you have infrastructure So do side, the, everything first like like of you the Or Scott, help I requirement business is the headcount additional some need? you'd

Scott Milford

Yes.

business process already lot eyes of looking that need an been in. we had still to we though So imperatives, of a walk around we somewhat going that we that has a think that of identify strategic for there's and then the make that them. let the have help had We think that of the opportunity of them even We things we're And as paid a start the part the it group for a lay customers to think leader. of not are to be provider the in marketing a to has to that couple need there's I investments looking that are attention contained, out past. see begun airport

making some So that's areas the in. we're one investments that of

fulfillment We built the investments our I supply retail and building chain offering. but increase so us save that consumers. we improve will help infrastructure when if the we our fully need on is and a think more capability to that the and which and can increase products capability optimize of robust other intend, we it and margin, in intend, delivery timing to delivered will the products -- also are quality the of

integrate to continue looking specifically to we're it much that investments XpresCheck up in things patient areas the showing And XpresSpa, efficient way. to of up digital more Treat, look and make we et in infrastructure. so of holistically our two brands, make are we'll in. distinct can we'll And more scheduler, and that our leverage those instead cetera, investments a that building So three supporting like

Scott Buck

really And think the been has this you been on not what providing mentioned and know a right. initial color. initial it's store? online it Treat, But of should helpful early All I at the first That's we incremental on that some then the but on kind near-term -- of feedback JFK? what's a great. revenue year as feedback That's store play.

Scott Milford

other positive. the of in. and very and that they out breaks But focused you, our like outset, using So for some just wellness as and December. we're that our for using they're them more for chill in the appealing informed and engaged the -- blocks a leverage type We was seeing We're location. for seen female what's largely in a And organizer of our we affluent example. to go that rooms services. SKU customer had initially, then we're in location been on use on They're this -- and seeing opened services room demographic manager shower, only the attention is travel. customers anecdotally, mind generally in our We're instead our of to. come of come just paying the into our physical has actually around location time We've men the discussion of feedback our the

to So, Those services ubiquitous interest of us are seeing well. COVID IVs, kinds BXX and available. starting bear as as we're our still which fruit as feedback. vitamin injections looking at for our is very early the We're well returns on C the testing, in

and in the I offering, expanding more our on retail side. us side our some that, and there's opportunity and XpresCheck get word interest to out for retail, to around offering on do Treat XpresSpa our both think the and retail work the with coupled again,

Treats the that we continue to online, and that we as for down have can look Treat the so look road it product in -- offering and further look add airports. to opportunity at -- on at there's so make fantastic other refine the we as we And users -- more I a think more to our at consumers but available the us product

Scott Buck

provide very you That's -- for? any something can by it has think are it Or color great. When there clearly, $XXX million of in be quite is to would from specifically got about you XXXX. a go revenue you bridge retail that Or Is piece And already -- of M&A, kind footprint? you is outlet looking then go M&A, the on it to helpful. a a tech? what us

Scott Milford

Yes.

said, that we to of the where able would for can enhances outside airport. health you consumers. acquisitions in both at existing may we our regional we're are consumers, give revenue going -- wellness the and ideally, But markets what that think going looking to our That be accretive obviously core be be, business. looking, the to piece I greatly that a technology offering what as complement we're to we're offering complement and and to our likely for be inside is local looking players

Operator

it I'd like Relations. back Investor over turn to to

Raphael Gross

going to come read e-mail of some address. questions you. have the Thank I'm the just in to that

of something First more question the to Why are the not following: the you where to in change is relevant ticker Company headed? name

Scott Milford

that, I take James. can

start our strategic single across we set paves we what all from integrate imperative, to three a want a it of to brands referenced core services begin brand first earlier to transition single name. do with the in brands. and to then to Once a I that, do a way As of is products for family us

us just sense it to relate can it more as and is giving do consumers absolutely product So our do as that makes intention the it we're for to offerings to them.

Raphael Gross

exhaust Next glad intention to if shares. your another to authorization. then question be approval for and get repurchasing going see is -- is this Wondering you're authorization to more active

Scott Milford

to James, answer do you -- would like that? you

James Berry

Sure.

both of of continue is our And is stated we've stock makes including in of the that do sense with we value. investments acquisitions believe of our the of stock which need As that our done in need growth is undervalued see investments undervalued firmly the of any balance business, shareholder stated, -- as that the for we has it the improvement buyback each do will to the the buyback, effectively we business. to the to us we for -- company. We for price value shares

And commitment will place. in will it to our do effort. an So be ongoing be both effectively

Raphael Gross

you even Treat if Are be due your they to cannot next them Question the leases. over few months? locations? of them Right. XpresCheck on coming any renew And will converted

Scott Milford

virus to leases partner think and recent expressed while product longer-term we Concessionaires others three want our decisions leases many evaluate that in leases. test and our not the sense which and are We'll AXN the renew across airport offerings were with Airport locations. at while service extend in of airport's it's Some valuable them allows businesses a optimized we are and whether the integration the express continue them, to the we grow. mentioning and of that I to leases Conference, desire our more we're of month-to-month make pandemic worth partners And make -- the express the program. extend response other that belief And we or should longer-term test to our the about should opportunity

Raphael Gross

quarter. of relaxation due first because far do or testing of How maybe you How more seasonal numbers on that the numbers testing airport? volume date so is the to or you case do maybe testing down? are And coming to can availability you restrictions the know now that testing lower there's business comment view outside in

Scott Milford

rates as recover tend Good airport over the have Normal seen traffic traffic. travelers we to seasonal fall to what rise months is COVID lower and with tend airport the the in holidays. two years Yes. is during three question. from year testing first past that the changes of And

providing undoubtedly As bio We've to leveraging while plan component products allowing proven already balance we and Western just a bio business an impact beyond relaxing to infrastructure giving opportunity the to health with defense holistic more a surveillance evolve and us for the in have It's you COVID time of to travel countries brand, DoD. testing more effectively the work to a begun challenging this to services of have the begun secure mentioned, managing of some of initiate testing even on as broader this our a advance ahead pandemic. array Europe the of the test. move requirements, testing throughout be to And to testing will levels year.

microscopic express think as uniquely is shores. in defense hits frontline test our airports I suited against our that invasion next that the

Raphael Gross

Question And revenue you then when XpresSpa Treat? on you're and stand-alone do will think Treat. When be to profitable think meaningful see Treat you do businesses? also, going as from

Scott Milford

a we're taste really in single about products only we're the learning and -- and while operating preferences. And Treat. changing on is that investments a XpresSpa now, the we With year continue expect trying grow business to based learning right and we're our consumer to making change implement unit still perspective about both already we're and profitable new offerings. on to we're coming service the business, in

our than not travel. address future of we'll I well-being, a of think expectation think more reinforce to their the Treat travelers create on as only ever and focused drives or they enabler becomes sense when growth. can And we that, now are especially we personally, also eventually evolve key that but continue focus on revenue, with that that products it

Raphael Gross

acquisition how overall you helps Can the business? explain the HyperPointe

Scott Milford

Yes.

in I ways. So two think

the we the and directly involved our test health history partnership their business, expansion like the health with for think I building in the which health industry. And new that's organizational realized intend technical relationship key CDC exploit strengths further the I with be revenue for with the of of the is bio channels HyperPointe the pharmaceutical leverage express through HyperPointe for partners care example, first think to development of synergies one is the us. will by deep created fully of and just Well, strategies surveillance to our industry. data, acquisition.

Raphael Gross

are prices, concerned of to about Question your because experiencing, we're airline for potentially gas? going high on you the Are you rising of And weaker inflation in that's price services concerned demand inflation. result less travel? Okay. that,

Scott Milford

that our and most that to doing that, the with all provide impact businesses sure think strategy, one I acutely building services disruptions. single fuel and strategy. operating customers, products then a supply travel of process, business aligning which integrating our Like the think inflationary of some rising developing products address out-of-airport we under blunt and and costs services is chain But which help we're And rising we consistent think is smarter to are prices making potential other we're help can pressures. of two a the concerned second things I

the airport reduce and impacted help help All of us refine should in pressures. be drive outside those but adversely rise things airport by also continued revenue inflationary new our us in of concert cost will the

Raphael Gross

could you on the do with XpresSpa across remaining do do services? you that XpresSpas you be new from more what locations? implemented they many What spa leases these How of have? plan reopening? touchless the And all And plan you seeing to are

Scott Milford

rebound and more be reopen, expand take on sit There effect. could our will the likely a now, we plan. begin to as reopening continues and That that spas or are those four to that to spas planning five Right strategies will open some not we currently usual are we'll inside services. integration identify airport, the suspects, reopening our apply lens strategy know with products we to And to airport. selective and we opportunities not sites that believe allow the more sites successful we'll that our outside strategy or us additional be don't add will will travel to

what as and we focus open allow we it inside-the-airport on we will so us refine outside, to view what And of don't. our

services, touchless now the of we're these of terms execute just services. the to starting rollout In

we of from customer feedback And to our those across the translate and back -- look expanding sales, feedback has positive. translate brands. more we'll once we we spas initial teams and services got other Some potentially been at even

Raphael Gross

Treat? into all Will you your convert spas

Scott Milford

core So, to strategy is the convert right to and locations our to to be local where is that spa product plan now Treat locations makes uniform have sense a can demand. services that it and offering tailored

nail of less still services where but offering, product nail but the product across complement relevant. are to if consumers offer our example, core to part York locations are kits not New be the location offering services U.S., those may we all our for our So in in find our relevant, that offer in retail Charlotte locations it our

Raphael Gross

question. Okay. Final

retail look -- of outside your does like? increase profile what you margin sorry, As the presence inside airports,

Scott Milford

answer James, would to like you that?

James Berry

Sure.

we while of products, it look an the retail to be the we that, traveler. most that be for is thing considering looking maintaining to the with to And the -- to associated customer important going do we're affordability expand as going margin course, we're wants. the As

products not margin look the -- And on the most So margin that for will we fact, good in those reduced. we're can we likely offer looking for will to be retail. us a

they're going the anticipate as Scott but that sometimes, to strong. type remain of or thing, will be exception of that the a Americans tie-in With we mentioned, where

real retail. to have We offer the to estate offer estate in -- the great which real

anticipating strong maintaining margins. we're or And increasing so

Raphael Gross

okay. That's the --

Scott Milford

add could, sorry, to I'm if just -- James' add I point. Just to to that to

business. that I we've it's sure And on will shared historically, retail of a with the that to at offering have, the real that fully think we make thought. the reinforcing, that that estate that doing stronger just margins wanted retail and final something we help offering. sustain never estate be I we I grow real that, taken have will worth intend it's and great really and advantage

Raphael Gross

have all are that Those the Right. in. come questions

operator. turn back to So Laura, I'll it

Scott Milford

Thank you.

Operator

Mr. remarks. reached like Scott I would this question-and-answer have call we to Milford over gentlemen, and Ladies closing the turn session. to end for back today's of

Scott Milford

I imperatives everyone's four you team appreciate to to year, share time and and I that sharing very leadership our progress everybody. and I'm next new fourth as today forward on news you new great our call. appreciate during We call much. the a a opportunity and our our quarter year. joining I of had with the a to Thank our build look certainly and success. leader successful Thank forward come on our strategic looking

Operator

today's concludes conference. This

your you your participation. for lines You day. may time. your disconnect Thank rest of Enjoy this the at