XpresSpa (XSPA)

James Berry Chief Financial Officer
Scott Milford Chief Executive Officer
Raphael Gross Investor Relations
Call transcript
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Greetings, and welcome to XpresSpa Group's First Quarter 2022 Earnings Conference Call.

During the presentation, all participants will be in listen-only mode. [Operator Instructions] As a reminder, this conference is being recorded Monday, May 16, 2022. I would now like to turn this conference over to James Berry, Chief Financial Officer. Please go ahead.

James Berry

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

the report those or results to factors Scott time prepared to offers include differ contained call review our statements on Milford, materially XXXX, Before CEO, other contain may statements. XX, his the for Comments XXXX such to set forward-looking results, XX-K variety Litigation and SEC. forward-looking the as on opinions and that today's filed those December by current time Important Securities the call ended and of first current would in of with of year and financial from might differences on These turn over remarks cause in as I risks Reform may I a unknown known our of suggested Actual you our from meaning Private such need to forward-looking we advise the within XXXX. SEC uncertainties. following. reports periodic assumptions Scott. like made well that now Act quarter forth the statements based that including involve I Form and filings, are

Scott Milford

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$XXX,XXX to During the the contributed HyperPointe first total quarter, Group. of revenue XpresSpa

accretive is out to and while this transactions whenever to to and are pursuing value acquisitions we over to to broaden in offering. we stakeholders. me airports, I day our plan both services so, strategic we vision, and authorization. products our Before and able under further our call turn will And increase the every to that expand able James, of reiterate let working our shares are will realize hard repurchase possible, do be all for we If XpresSpa other

it act Again, value. is turn subject in doing its periods. James. when price believe declines, there With the even position we current this blackout I'll to because stock’s a value stock to we are intrinsic and We over always not a because disconnect that, we between the are are to

James Berry

level. of kits newly loss The increase the the $X.X due Revenue first The to million to rose to refer $X.X to that acquired million acquired were you, million, of first HyperPointe to with the also locations the $X.X locations the sales for compared The $X.X the XXXX but prior centers, associated due in reported during Note costs XpresSpa location our provide Treat the of results, in closed quarter. year recognition million $XX primarily operating million compared million and in prior revenue at related an in $X.X increase of operate of and the operating in locations the of the common increase largest to quarter. and administrative reopening increased to this General temporarily quarter $X.X the million, of of that due XXXX. in segment. $X.X to year brief and in compared to cost net quarter we to of and of locations, was first from early we quarter first revenue from to cost quarter. to $X.X the loss quarter attributable ago in related million, to details. testing XpresCheck afternoon Cost component wellness for XpresCheck synopsis primarily comparable expenses first in that million cost XX-Q the $XX loss shareholders Thank period. greater XpresSpa quarter first the filed year we quarter. million cost please was functional although operations generated from of higher going a primarily prior were for XpresSpa our the $XX.X I'm year Scott. We generated quarter. re-opened million XpresCheck or sales the to We the and the the HyperPointe compared an year on the locations, business was the million first $X.X prior certain labor

million from cash solid million cash Operating our we equivalents minus million $XX minus improved flow Finally, and long-term $X.X debt. $X.X GAAP repurchase. financials, million with to for deployed totaling no have share respect cash we $XX.X remains liquidity and and our to with also

repurchased first shares periods. During outside of we million quarter, blackout X.X the

million announced XXXX. shares program repurchase under a million August X.X available XX XXXX, XX, on May remain share of As XX,

Given during which indicator, EBITDA interest transactions and quarter. an share first adjusted was We as the to consider the define for in and core to understand our impairment earnings activities. substantially as we that EBITDA active taxes X.X we exclude depreciation before adjusted of adjusted EBITDA does please current $X.X On period. non-GAAP We a to the be disposal year amortization next undervalued, of certain prior expense important adjusted related view basis, and EBITDA the be assets. price, to not window open compared adjusted compensation it stock-based intend operating million, cash but million

release, with and to along respect the testing, furnished the for We also metrics rapid are that in PCR patient earnings with opting percentages tests. rapid

referenced, anticipate revenues your from lower Finally, Relations now we time to this are today's turn our as Scott submit be than forecasted. we to will ahead shareholders questions to afternoon. to you Thank retail over I questions call. the of invited call originally for ask who Investor

Raphael Gross

Thank you, James.

to The you something first question and name changing relevant you are follows, is the more when ticker headed? as to will be company where

Scott Milford

kicked rebranding Thank to I'm already you to exercise. excited be to work question. share really start for that able off a that we've

are one Pablo, be for so XX, identified an Once on his us of finalize he and this and will well-underway. already hire to conclude May that agency it. us have and lead joins have can him We exercise we it we first this priorities

Raphael Gross


cash. is question Next about

fourth in compared time? and this point core a lot earned business of You've the be last deteriorating, you looking of to acquisitions really at your at year should is cash, quarter

Scott Milford

growth we profitability. and for absolutely place. that believe to in continue right making the ensure that for the resources do to generation we throughout opportunity that path firmly Let To sure cash need that revenue revenue we're we drive is believe most to organization through optimizing our on that going the accretive costs have we're the and hand, cutting achieve are longer-term we say acquisition me us

Raphael Gross


you is confident and Next Are that enough to from your assuming not that question means business for evolving to existing XpresCheck in revenue? Treat elsewhere I'm acquisitions. you through need about Treat. look

Scott Milford


think same actually we So, both at we the time. can do

XpresCheck to services that with and a leases, they of offer. think created were I the at types time with we important that our specific it's on limits could note

not integrated we at every XpresCheck So, location. able be may to services include

and that, work airports and services the reinvented with we of retail outside be result where we we're think can look the can also offering our if a I while going time, we to airport business. as additional those to same see of expand to So, expand services at

Raphael Gross

expect current to work, stop the as Question hear CDC, do are the them June going to on you And of the expires biosurveillance renewing contract, now, contract ends? from the of end on you when when which the shortly?

Scott Milford

is the going We available that even this number as of expect we're at flights to intention. screening. well stretch to labor reducing continue That we’re to the about dollars, hear any And as schedules, refine time.

may So, secure we test, and contract. that we India, coming in the down allowing but still renewal enough we may from the to past, labor out us that long that have screened of flights can two, where to or five six stretching hopefully reduce in enough the available so pool

Raphael Gross

question, [ph]? And you Next are concerned [D-listing] a considering are so, split? you getting do if about notice How for a you approval? stock reverse need shareholder

Scott Milford

focused trend but that We reverse and team value developing will earlier current I that little year, on outlined we've that strategies and the help our that in value deploying the we're on credit are now. We are that last price. long-term got our over very strategies drive for And drive we're long-term. believe confident and we will we've the delivered comments right the shareholder sensitive now very now results delivering to price stock my stock

Raphael Gross

acquiring currently Why dormant? airport just non-XpresSpa them? How it you because estate? be better And do take the other can't not would you Is when many do are XpresSpas having are have real real Why acquire to what that airport over estate your with locations you sitting to open? anything? spas own without of you plan

Scott Milford

question. big a That's

answer I if see me can it let altogether. So,

that currently spas stages around various making closure. in of have possible XX we decision are So,

or we to very site poor of operate. may either those are require cost Some locations reopen, high others

reduce opportunity using our And decisions make tough so, this to we're to later. exposure now

to means We're looking to of now who You airport we'll going of increase a going advantage closed. us instances. allows our the these and of know, to we're to be If they ways the some in it paths take or to financial new might for keep pandemic airport cost And including not entry multiple be exit. affected improve businesses, competitors, opportunistic footprint have stayed locations, to explore enter of our our a that. have may down. number And

Raphael Gross

versus this revenue is services also the point? a are the much really of at How in from actually terms play And Treat is you any going treatment? COVID-testing versus retail Treat digital be this a of other making component money play of or to digital

Scott Milford

down is testing, customers and when of wellness exploring under the with So, belt I'm question, a evolution going in and align the to better XX% we other answer hydration from themselves as the latter Treat boosts. therapy In and opened, has even purchased. those product It revenue couple digital and part it, percentages We're a part of more retail brand. treat related. significant as and Treat being the now about XX% that both see revenue are units begun Right we to vitamin the are re-tooling Treat’s from first services question in reference the the first. to slowed shifting We to now more shift assets digital process open. fully of other testing of our expect of of to are retail services have portion but of has leverage testing as Treat the services services now, like retail, our was our in is

Raphael Gross

business? does is your acquisition COVID-testing HyperPointe even recent If waning, help how the Okay. overall

Scott Milford

need it programs help our may in it to while strategy. to HyperPointe the That relax, that overall support made of important when out business. and So, our testing reduce part an designed was building to the requirements done our and part remain of we doesn't continues And development protect travelers. was biosecurity strategy for acquisition,

think ensure structure, we we resources G&A way with as between XpresSpa keep they that more costs drive. our holistic HyperPointe within own can in-line in that a I to revenue the costs optimize to and continue we'll leverage

Raphael Gross

Thanks, any at this Scott. questions I'm seeing not time. more

Scott Milford

Thank you very much.

James Berry

evening. concludes everyone's for Believe call participation. that our Appreciate this

you. your disconnect now I Thank can think you lines.

Scott Milford

very much. you Thank


our conclude indeed does everyone. call that And today

disconnect. may You now