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Thursday, November 15, 2018 8:12:54 AM
$XSPA: NEWS & Supremely UNDERVALUED STOCK.... Investment by CALM
How is the Market cap only $4.8MM when this is doing roughly
$13Million/qtr in Sales.
Thats over $52Million per year.
This is CRAZY Undervalued and should be a $0.9/share stock.
Right now its a paltry $0.22
Crazy Undervalued.
GO $XSPA
********************************************************************
Press Release: XpresSpa Announces Strategic Partnership and Third Quarter 2018 Financial ResultsFont size: A | A | A
5:20 PM ET 11/14/18 | Dow Jones
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4:00 PM ET 11/14/18
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Press Release: XpresSpa Announces Strategic Partnership and Third Quarter 2018 Financial Results
XpresSpa Announces Strategic Partnership and Third Quarter 2018 Financial Results
Launches Strategic Partnership with Calm, the Leading Sleep, Meditation and Relaxation App with 35 Million Downloads
XpresSpa to Issue Up to $3 Million in Convertible Preferred Equity at a 400% Premium to Market at $0.62 per Share
Store Margins Continue to Improve
Continued Progress on Cost Reduction Initiatives
NEW YORK, Nov. 14, 2018 (GLOBE NEWSWIRE) -- XpresSpa Group, Inc. (Nasdaq: XSPA), a health and wellness holding company, today announced financial results for the third quarter ended September 30, 2018. In addition, XpresSpa announced that Calm, the leading app for sleep, meditation and relaxation, made a strategic investment in XpresSpa of up to $3 million in preferred equity, convertible at $0.62 per share. This is a significant premium to the market price and demonstrates Calm's belief in the Company's industry leading platform. Calm funded $2 million of the $3 million of preferred stock on November 13, 2018 and will fund the remaining $1 million by December 31, 2018, subject to satisfaction of certain conditions. The convertible preferred equity has a 7-year maturity and is convertible at $0.62 per share. The funds will be deployed in an effort to enhance XpresSpa customers' experience in a number of different ways, including raising the brand's profile across new and existing markets, elevating the assortment of retail products, and upgrading facilities. Calm was named Apple's 2017 iPhone App of the Year and boasts more than 35 million downloads to date, averaging 75,000 new users daily. The new strategic partnership will allow both companies to leverage off of one another's subscribers, users, and loyalty base and integrate Calm's meditation app into a broad array of services. In addition, Calm will offer its flagship products -- Digital App Subscriptions, Sleep Mist and the Calm Book -- at 52 XpresSpa domestic locations.
XpresSpa also made significant progress during its third quarter ended September 30, 2018. Ed Jankowski, XpresSpa Group CEO, stated, "Our third quarter 2018 performance reflects our continued traction in driving operational excellence into our spas through a refined labor model and greater contribution of retail sales to our revenue mix, while reducing store-level and corporate overhead costs. Despite only a modest increase in our top-line, we achieved our highest store margin so far this year at 22.9% and lowered our general and administrative expenses by 5.7% compared to the year-ago period. We have now narrowed our consolidated operating and adjusted EBITDA losses for three consecutive quarters and the same three-month period last year."
Mr. Jankowski added, "During the third-quarter 2018, we opened in Concourse D at Hartsfield-Jackson Atlanta International Airport, our third XpresSpa location in the world's busiest airport. Our ability to further penetrate existing airports speaks to the value airport partners see in our luxury spa experience, which is complementary with their strategy of enhancing retail and service offerings. This year, we have opened a total of seven spas, including our first off-airport spa in the Westfield World Trade Center in NYC. We remain active in competing for RFP's and have several high-priority new store openings planned for next year that all meet our strict criteria for capital allocation and are also finalizing the implementation of our franchising model."
Mr. Jankowski concluded, "Our intention for the balance of the year and beyond is to build on what we have already accomplished by continuing to streamline costs and position ourselves to achieve positive adjusted EBITDA. Lastly, we are very excited by our new strategic partnership with Calm and welcoming their 35 million users into our spas during the busy holiday travel season. With this investment from Calm, we will be using these funds to raise our brand profile in new and existing markets while enhancing our customers' experience."
Third Quarter 2018 Highlights
-- Total revenue increased 0.5% to $12.9 million. Contributions from six
additional XpresSpa locations opened year-over-year were mostly offset by
a decrease in comparable store sales. -- Comparable-store sales
decreased 3.0% as XpresSpa was impacted by changes in airline assignments
within key LaGuardia, John F. Kennedy, and Los Angeles terminals which
had a direct impact on traffic and ultimately revenues. -- Retail
sales comprised 20% of revenue in third quarter 2018, compared to 17% in
second quarter 2018.
-- Opened a location in Atlanta's Hartsfield-Jackson Atlanta International
Airport.
-- Completed renovation in Washington Reagan National Airport.
-- Product and service store margin of $3.0 million, or 22.9% margin, grew
28.5% from third quarter 2017 store margin of $2.3 million, or 18.2%
margin, and $2.7 million, or 20.5% margin, in second quarter 2018. --
Labor costs decreased through greater efficiency in staffing and
scheduling. -- Product and operating costs decreased as product
sourcing fully transitioned to the Company's strategic partner and
careful cost control.
-- General and administrative expenses decreased 5.7% or $0.2 million to
$3.9 million in third quarter 2018 from $4.2 million in third quarter
2017. Third quarter 2018 general and administrative included one-time
professional costs of $0.3 million, and one-time project costs of $0.1
million related to the buildout and implementation of a business
analytics tool, as well as a $0.5 million reduction in stock compensation
expense to $0.2 million compared to $0.7 million in third quarter 2017.
-- Operating loss from continuing operations improved to $2.9 million from
$3.5 million in third quarter 2017.
-- Consolidated net loss attributable to the Company improved to $3.2
million from $4.7 million in third quarter 2017 primarily due to
improvements in store margin and reductions in general and administrative
expenses relative to last year.
-- Adjusted EBITDA* loss of $0.4 million improved from $0.6 million in third
quarter 2017 through improved store margin and reduced general and
administrative expenses.
*Adjusted EBITDA is a non-GAAP financial measures; see "Use of Non-GAAP Financial Measures" below. See tables below for abbreviated financial XpresSpa segment results for the third quarters and first nine months of 2018 and 2017.
Balance Sheet & Cash Flows
As of September 30, 2018, the Company had:
-- Cash and cash equivalents of $2.5 million
-- Current assets of $4.0 million
-- Total liabilities of $16.9 million, of which $6.5 million is long-term
debt held by a related party.
Management believes that the current cash balance, up to $3 million of investment from Calm, cash to be provided by future operating activities, and cash proceeds from the anticipated liquidation of certain investments, will be sufficient to fund planned operations and pay liabilities as they become due. In addition, the Company has access to additional sources of financing and may attempt to renegotiate terms of various contracts.
Conference Call
XpresSpa Group Inc. will host a conference call today at 4:30 p.m. Eastern Time.
The conference call can be accessed live over the phone by dialing (631) 576-4098. A replay will be available after the call and can be accessed by dialing (412) 317-6671; the passcode is 10005890. The replay will be available until December 5, 2018.
The webcast can be accessed from the Investor Relations section of the Company's website at xpresspagroup.com. Visitors to the website should select the "Investors" tab and navigate to the "Events" link to access the webcast.
About XpresSpa Group, Inc.
XpresSpa Group, Inc. (Nasdaq: XSPA) is a health and wellness holding company. XpresSpa Group's core asset, XpresSpa, is the world's largest airport spa company, with 57 locations in 23 airports globally, including one off-airport spa at Westfield World Trade Center in New York City. XpresSpa offers services that are tailored specifically to the busy customer. XpresSpa is committed to providing exceptional customer experiences with its innovative premium spa services, as well as exclusive luxury travel products and accessories. XpresSpa serves almost one million customers per year at its locations in the United States, Holland, and the United Arab Emirates. XpresSpa Group's non-core assets include Infomedia and intellectual property assets. To learn more about XpresSpa Group, visit: www.XpresSpaGroup.com. To learn more about XpresSpa, visit www.XpresSpa.com
Investor Relations:
ICR
Raphael Gross / Jeff Sonnek
(203) 682-8253 / (646) 277-1263
XpresSpa Group, Inc.
Condensed Consolidated Balance Sheets
($ in thousands)
September 30, December 31,
2018 2017
(Unaudited)
Current assets
Cash and cash equivalents $ 2,525 $ 6,368
Inventory 802 1,159
Other current assets 591 2,120
Assets held for disposal 109 6,446
Total current assets 4,027 16,093
Restricted cash 487 487
Property and equipment, net 15,005 15,797
Intangible assets, net 9,789 11,547
Goodwill - 19,630
Other assets 3,356 1,686
Total assets $ 32,664 $ 65,240
Current liabilities
Accounts payable, accrued expenses and
(MORE TO FOLLOW) Dow Jones Newswires
November 14, 2018 16:05 ET (21:05 GMT)
Press Release: XpresSpa Announces Strategic -2-
other current liabilities $ 7,641 $ 8,736
Convertible notes, net 1,610 -
Liabilities held for disposal 40 3,761
Total current liabilities 9,291 12,497
Debt 6,500 6,500
Convertible notes, net 398 -
Derivative warrant liabilities 455 34
Other liabilities 265 370
Total liabilities 16,909 19,401
Commitments and contingencies (see Note
13)
Stockholders' equity
Series A Convertible Preferred stock,
$0.01 par value per share; 6,968 shares
authorized; 6,968 issued and none
outstanding - -
Series B Convertible Preferred stock,
$0.01 par value per share; 1,609,167
shares authorized; 1,609,167 issued and
none outstanding - -
Series C Junior Preferred stock, $0.01
par value per share; 300,000 shares
authorized; none issued and
outstanding - -
Series D Convertible Preferred Stock,
$0.01 par value per share; 500,000
shares authorized; 475,208 shares
issued and 420,541 shares outstanding
with a liquidation value of $20,186 4 4
Common stock, $0.01 par value per
share; 150,000,000 shares authorized;
31,919,511 and 26,545,690 issued and
outstanding as of September 30, 2018
and December 31, 2017, respectively 319 265
Additional paid-in capital 291,989 290,396
Accumulated deficit (280,351) (249,708)
Accumulated other comprehensive loss (279) (74)
Total stockholders' equity attributable
to the Company 11,682 40,883
Noncontrolling interests 4,073 4,956
Total stockholders' equity 15,755 45,839
Total liabilities and stockholders'
equity $ 32,664 $ 65,240
XpresSpa Group, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE LOSS
(Unaudited)
(In thousands, except share and per share data)
Three months ended Nine months ended
September 30, September 30,
2018 2017 2018 2017
Revenue
Products and
services $ 12,922 $ 12,652 $ 37,760 $ 36,563
Other - 200 800.00 300
Total revenue 12,922 12,852 38,560 36,863
Cost of sales
Labor 5,997 7,086 18,697 18,178
Occupancy 1,996 1,950 6,216 5,704
Products and
other operating
costs 1,992 1,437 5,208 6,044
Total cost of sales 9,985 10,473 30,121 29,926
Depreciation and
amortization 1,879 1,722 5,375 6,379
Goodwill
impairment - - 19,630.00 -
General and
administrative* 3,943 4,180 12,443 13,037
Total operating
expenses 15,807 16,375 67,569 49,342
Operating loss from
continuing
operations (2,885) (3,523) (29,009) (12,479)
Interest expense (624) (183) (1,212) (549)
Other
non-operating
income
-expense), net 378 (82) 877 (17)
Loss from continuing
operations before
income taxes (3,131) (3,788) (29,344) (13,045)
Income tax
benefit
-expense) 66 (57) 198 (284)
Consolidated net loss
from continuing
operations (3,065) (3,845) (29,146) (13,329)
Loss from
discontinued
operations before
income taxes* - (699) (1,115) (4,474)
Income tax
benefit
-expense) - - - -
Consolidated net loss
from discontinued
operations - (699) (1,115) (4,474)
Consolidated net loss (3,065) (4,544) (30,261) (17,803)
Net income
attributable to
noncontrolling
interests (122) (153) (382) (329)
Net loss attributable
to the Company $ (3,187) $ (4,697) $$ (30,643) $ (18,132)
Consolidated net loss
from continuing
operations (3,065) (3,845) $ (29,146) (13,329)
Other
comprehensive
income -loss)
from continuing
operations (3) 31 (205) (120)
Comprehensive loss
from continuing
operations (3,068) (3,814) (29,351) (13,449)
Consolidated net loss
from discontinued
operations - (699) (1,115) (4,474)
Other
comprehensive
loss from
discontinued
operations - - - -
Comprehensive loss
from discontinued
operations - (699) (1,115) (4,474)
Comprehensive loss (3,068) (4,513) $ (30,466) (17,923)
Loss per share
Loss per share
from continuing
operations $ (0.11) $ (0.16) $ (1.08) $ (0.65)
Loss per share
from
discontinued
operations - $ (0.04) $ (0.04) $ (0.22)
Total basic and
diluted net loss
per share $ (0.11) $ (0.20) $$ (1.12) $ (0.87)
Weighted-average
number of shares
outstanding during
the period:
Basic 28,352,284 24,144,002 27,268,792 20,852,034
Diluted 28,352,284 24,144,002 27,268,792 20,852,034
*Includes
stock-based
compensation
expense, as
follows:
General and
administrative $ 194 $ 662 $ 765 $ 1,752
Discontinued
operations - 44 - 427
Total stock-based
compensation
expense $ 194 $ 706 $ 765 $ 2,179
XpresSpa Group, Inc.
Use of Non-GAAP Financial Measures
(In thousands)
Three months ended Nine months ended
September 30, September 30,
2018 2017 2018 2017
Products and
services revenue $12,922,000 $ 12,652,000 $ 37,760,000 $ 36,563,000
Cost of sales
Labor (5,997,000) (7,086,000) (18,697,000) (18,178,000)
Occupancy (1,996,000) (1,950,000) (6,216,000) (5,704,000)
Products and
other
operating
costs (1,966,000) (1,311,000) (5,092,000) (5,701,000)
Total cost of
sales (9,959,000) (10,347,000) (30,005,000) (29,583,000)
Gross profit 2,963,000 2,305,000 7,755,000 6,980,000
Gross profit as a
% of total
revenue 22.9% 18.2% 20.5% 19.1%
Depreciation,
amortization and
impairment
Depreciation (1,195,000) (1,117,000) (3,474,000) (4,604,000)
Amortization (684,000) (605,000) (1,901,000) (1,775,000)
Goodwill
impairment - - (19,630,000) -
Total
depreciation,
amortization and
impairment (1,879,000) (1,722,000) (25,005,000) (6,379,000)
Total general and
administrative
expense (3,943,000) (4,180,000) (12,443,000) (13,037,000)
Other operating
revenue and
expense
Other
operating
revenue - 200,000 800,000 300,000
Other
operating
expense (26,000) (126,000) (116,000) (343,000)
Total other
operating
revenue, net (26,000) 74,000 684,000 (43,000)
Operating loss
from continuing
operations (2,885,000) (3,523,000) (29,009,000) (12,479,000)
Add:
Depreciation
and
amortization 1,879,000 1,722,000 5,375,000 6,379,000
Goodwill
impairment - - 19,630,000 -
Merger and
acquisition,
integration,
and one-time
costs 452,000 529,000 1,057,000 1,365,000
Stock-based
compensation
expense 194,000 662,000 765,000 1,752,000
Adjusted EBITDA
loss (360,000) (610,000) (2,182,000) (2,983,000)
XpresSpa Group Inc.
Same Store Sales Growth for Third Quarter 2018
($ in thousands)
September 30, 2018 September 30, 2017 %
Non-Comp Non-Comp
Comp Comp
Store Store Total Store Store Total
Revenue $11,375 $ 1,547 $12,922 $11,732 $ 920 $12,652 (3.0%)
> Dow Jones Newswires
November 14, 2018 16:05 ET (21:05 GMT)
XpresSpa Group 3Q Loss/Shr 11c >XSPA
(MORE TO FOLLOW) Dow Jones Newswires (212-416-2800)
November 14, 2018 16:05 ET (21:05 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
XpresSpa Group 3Q Loss $3.07M >XSPA
(MORE TO FOLLOW) Dow Jones Newswires (212-416-2800)
November 14, 2018 16:10 ET (21:10 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
XpresSpa Group 3Q Rev $12.9M >XSPA
(MORE TO FOLLOW) Dow Jones Newswires (212-416-2800)
November 14, 2018 16:10 ET (21:10 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
XpresSpa Group in Partnership With Sleep App Calm>XSPA
(MORE TO FOLLOW) Dow Jones Newswires (212-416-2800)
November 14, 2018 17:19 ET (22:19 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
Calm Invests Up to $3M in XpresSpa
(MORE TO FOLLOW) Dow Jones Newswires (212-416-2800)
November 14, 2018 17:20 ET (22:20 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
*DJ Calm Invests Up to $3M in XpresSpa
(MORE TO FOLLOW) Dow Jones Newswires (212-416-2800)
November 14, 2018 17:20 ET (22:20 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
How is the Market cap only $4.8MM when this is doing roughly
$13Million/qtr in Sales.
Thats over $52Million per year.
This is CRAZY Undervalued and should be a $0.9/share stock.
Right now its a paltry $0.22
Crazy Undervalued.
GO $XSPA
********************************************************************
Press Release: XpresSpa Announces Strategic Partnership and Third Quarter 2018 Financial ResultsFont size: A | A | A
5:20 PM ET 11/14/18 | Dow Jones
RELATED QUOTES
4:00 PM ET 11/14/18
Symbol Last % Chg
XSPA
0.18 0.00%
Real time quote.
Press Release: XpresSpa Announces Strategic Partnership and Third Quarter 2018 Financial Results
XpresSpa Announces Strategic Partnership and Third Quarter 2018 Financial Results
Launches Strategic Partnership with Calm, the Leading Sleep, Meditation and Relaxation App with 35 Million Downloads
XpresSpa to Issue Up to $3 Million in Convertible Preferred Equity at a 400% Premium to Market at $0.62 per Share
Store Margins Continue to Improve
Continued Progress on Cost Reduction Initiatives
NEW YORK, Nov. 14, 2018 (GLOBE NEWSWIRE) -- XpresSpa Group, Inc. (Nasdaq: XSPA), a health and wellness holding company, today announced financial results for the third quarter ended September 30, 2018. In addition, XpresSpa announced that Calm, the leading app for sleep, meditation and relaxation, made a strategic investment in XpresSpa of up to $3 million in preferred equity, convertible at $0.62 per share. This is a significant premium to the market price and demonstrates Calm's belief in the Company's industry leading platform. Calm funded $2 million of the $3 million of preferred stock on November 13, 2018 and will fund the remaining $1 million by December 31, 2018, subject to satisfaction of certain conditions. The convertible preferred equity has a 7-year maturity and is convertible at $0.62 per share. The funds will be deployed in an effort to enhance XpresSpa customers' experience in a number of different ways, including raising the brand's profile across new and existing markets, elevating the assortment of retail products, and upgrading facilities. Calm was named Apple's 2017 iPhone App of the Year and boasts more than 35 million downloads to date, averaging 75,000 new users daily. The new strategic partnership will allow both companies to leverage off of one another's subscribers, users, and loyalty base and integrate Calm's meditation app into a broad array of services. In addition, Calm will offer its flagship products -- Digital App Subscriptions, Sleep Mist and the Calm Book -- at 52 XpresSpa domestic locations.
XpresSpa also made significant progress during its third quarter ended September 30, 2018. Ed Jankowski, XpresSpa Group CEO, stated, "Our third quarter 2018 performance reflects our continued traction in driving operational excellence into our spas through a refined labor model and greater contribution of retail sales to our revenue mix, while reducing store-level and corporate overhead costs. Despite only a modest increase in our top-line, we achieved our highest store margin so far this year at 22.9% and lowered our general and administrative expenses by 5.7% compared to the year-ago period. We have now narrowed our consolidated operating and adjusted EBITDA losses for three consecutive quarters and the same three-month period last year."
Mr. Jankowski added, "During the third-quarter 2018, we opened in Concourse D at Hartsfield-Jackson Atlanta International Airport, our third XpresSpa location in the world's busiest airport. Our ability to further penetrate existing airports speaks to the value airport partners see in our luxury spa experience, which is complementary with their strategy of enhancing retail and service offerings. This year, we have opened a total of seven spas, including our first off-airport spa in the Westfield World Trade Center in NYC. We remain active in competing for RFP's and have several high-priority new store openings planned for next year that all meet our strict criteria for capital allocation and are also finalizing the implementation of our franchising model."
Mr. Jankowski concluded, "Our intention for the balance of the year and beyond is to build on what we have already accomplished by continuing to streamline costs and position ourselves to achieve positive adjusted EBITDA. Lastly, we are very excited by our new strategic partnership with Calm and welcoming their 35 million users into our spas during the busy holiday travel season. With this investment from Calm, we will be using these funds to raise our brand profile in new and existing markets while enhancing our customers' experience."
Third Quarter 2018 Highlights
-- Total revenue increased 0.5% to $12.9 million. Contributions from six
additional XpresSpa locations opened year-over-year were mostly offset by
a decrease in comparable store sales. -- Comparable-store sales
decreased 3.0% as XpresSpa was impacted by changes in airline assignments
within key LaGuardia, John F. Kennedy, and Los Angeles terminals which
had a direct impact on traffic and ultimately revenues. -- Retail
sales comprised 20% of revenue in third quarter 2018, compared to 17% in
second quarter 2018.
-- Opened a location in Atlanta's Hartsfield-Jackson Atlanta International
Airport.
-- Completed renovation in Washington Reagan National Airport.
-- Product and service store margin of $3.0 million, or 22.9% margin, grew
28.5% from third quarter 2017 store margin of $2.3 million, or 18.2%
margin, and $2.7 million, or 20.5% margin, in second quarter 2018. --
Labor costs decreased through greater efficiency in staffing and
scheduling. -- Product and operating costs decreased as product
sourcing fully transitioned to the Company's strategic partner and
careful cost control.
-- General and administrative expenses decreased 5.7% or $0.2 million to
$3.9 million in third quarter 2018 from $4.2 million in third quarter
2017. Third quarter 2018 general and administrative included one-time
professional costs of $0.3 million, and one-time project costs of $0.1
million related to the buildout and implementation of a business
analytics tool, as well as a $0.5 million reduction in stock compensation
expense to $0.2 million compared to $0.7 million in third quarter 2017.
-- Operating loss from continuing operations improved to $2.9 million from
$3.5 million in third quarter 2017.
-- Consolidated net loss attributable to the Company improved to $3.2
million from $4.7 million in third quarter 2017 primarily due to
improvements in store margin and reductions in general and administrative
expenses relative to last year.
-- Adjusted EBITDA* loss of $0.4 million improved from $0.6 million in third
quarter 2017 through improved store margin and reduced general and
administrative expenses.
*Adjusted EBITDA is a non-GAAP financial measures; see "Use of Non-GAAP Financial Measures" below. See tables below for abbreviated financial XpresSpa segment results for the third quarters and first nine months of 2018 and 2017.
Balance Sheet & Cash Flows
As of September 30, 2018, the Company had:
-- Cash and cash equivalents of $2.5 million
-- Current assets of $4.0 million
-- Total liabilities of $16.9 million, of which $6.5 million is long-term
debt held by a related party.
Management believes that the current cash balance, up to $3 million of investment from Calm, cash to be provided by future operating activities, and cash proceeds from the anticipated liquidation of certain investments, will be sufficient to fund planned operations and pay liabilities as they become due. In addition, the Company has access to additional sources of financing and may attempt to renegotiate terms of various contracts.
Conference Call
XpresSpa Group Inc. will host a conference call today at 4:30 p.m. Eastern Time.
The conference call can be accessed live over the phone by dialing (631) 576-4098. A replay will be available after the call and can be accessed by dialing (412) 317-6671; the passcode is 10005890. The replay will be available until December 5, 2018.
The webcast can be accessed from the Investor Relations section of the Company's website at xpresspagroup.com. Visitors to the website should select the "Investors" tab and navigate to the "Events" link to access the webcast.
About XpresSpa Group, Inc.
XpresSpa Group, Inc. (Nasdaq: XSPA) is a health and wellness holding company. XpresSpa Group's core asset, XpresSpa, is the world's largest airport spa company, with 57 locations in 23 airports globally, including one off-airport spa at Westfield World Trade Center in New York City. XpresSpa offers services that are tailored specifically to the busy customer. XpresSpa is committed to providing exceptional customer experiences with its innovative premium spa services, as well as exclusive luxury travel products and accessories. XpresSpa serves almost one million customers per year at its locations in the United States, Holland, and the United Arab Emirates. XpresSpa Group's non-core assets include Infomedia and intellectual property assets. To learn more about XpresSpa Group, visit: www.XpresSpaGroup.com. To learn more about XpresSpa, visit www.XpresSpa.com
Investor Relations:
ICR
Raphael Gross / Jeff Sonnek
(203) 682-8253 / (646) 277-1263
XpresSpa Group, Inc.
Condensed Consolidated Balance Sheets
($ in thousands)
September 30, December 31,
2018 2017
(Unaudited)
Current assets
Cash and cash equivalents $ 2,525 $ 6,368
Inventory 802 1,159
Other current assets 591 2,120
Assets held for disposal 109 6,446
Total current assets 4,027 16,093
Restricted cash 487 487
Property and equipment, net 15,005 15,797
Intangible assets, net 9,789 11,547
Goodwill - 19,630
Other assets 3,356 1,686
Total assets $ 32,664 $ 65,240
Current liabilities
Accounts payable, accrued expenses and
(MORE TO FOLLOW) Dow Jones Newswires
November 14, 2018 16:05 ET (21:05 GMT)
Press Release: XpresSpa Announces Strategic -2-
other current liabilities $ 7,641 $ 8,736
Convertible notes, net 1,610 -
Liabilities held for disposal 40 3,761
Total current liabilities 9,291 12,497
Debt 6,500 6,500
Convertible notes, net 398 -
Derivative warrant liabilities 455 34
Other liabilities 265 370
Total liabilities 16,909 19,401
Commitments and contingencies (see Note
13)
Stockholders' equity
Series A Convertible Preferred stock,
$0.01 par value per share; 6,968 shares
authorized; 6,968 issued and none
outstanding - -
Series B Convertible Preferred stock,
$0.01 par value per share; 1,609,167
shares authorized; 1,609,167 issued and
none outstanding - -
Series C Junior Preferred stock, $0.01
par value per share; 300,000 shares
authorized; none issued and
outstanding - -
Series D Convertible Preferred Stock,
$0.01 par value per share; 500,000
shares authorized; 475,208 shares
issued and 420,541 shares outstanding
with a liquidation value of $20,186 4 4
Common stock, $0.01 par value per
share; 150,000,000 shares authorized;
31,919,511 and 26,545,690 issued and
outstanding as of September 30, 2018
and December 31, 2017, respectively 319 265
Additional paid-in capital 291,989 290,396
Accumulated deficit (280,351) (249,708)
Accumulated other comprehensive loss (279) (74)
Total stockholders' equity attributable
to the Company 11,682 40,883
Noncontrolling interests 4,073 4,956
Total stockholders' equity 15,755 45,839
Total liabilities and stockholders'
equity $ 32,664 $ 65,240
XpresSpa Group, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE LOSS
(Unaudited)
(In thousands, except share and per share data)
Three months ended Nine months ended
September 30, September 30,
2018 2017 2018 2017
Revenue
Products and
services $ 12,922 $ 12,652 $ 37,760 $ 36,563
Other - 200 800.00 300
Total revenue 12,922 12,852 38,560 36,863
Cost of sales
Labor 5,997 7,086 18,697 18,178
Occupancy 1,996 1,950 6,216 5,704
Products and
other operating
costs 1,992 1,437 5,208 6,044
Total cost of sales 9,985 10,473 30,121 29,926
Depreciation and
amortization 1,879 1,722 5,375 6,379
Goodwill
impairment - - 19,630.00 -
General and
administrative* 3,943 4,180 12,443 13,037
Total operating
expenses 15,807 16,375 67,569 49,342
Operating loss from
continuing
operations (2,885) (3,523) (29,009) (12,479)
Interest expense (624) (183) (1,212) (549)
Other
non-operating
income
-expense), net 378 (82) 877 (17)
Loss from continuing
operations before
income taxes (3,131) (3,788) (29,344) (13,045)
Income tax
benefit
-expense) 66 (57) 198 (284)
Consolidated net loss
from continuing
operations (3,065) (3,845) (29,146) (13,329)
Loss from
discontinued
operations before
income taxes* - (699) (1,115) (4,474)
Income tax
benefit
-expense) - - - -
Consolidated net loss
from discontinued
operations - (699) (1,115) (4,474)
Consolidated net loss (3,065) (4,544) (30,261) (17,803)
Net income
attributable to
noncontrolling
interests (122) (153) (382) (329)
Net loss attributable
to the Company $ (3,187) $ (4,697) $$ (30,643) $ (18,132)
Consolidated net loss
from continuing
operations (3,065) (3,845) $ (29,146) (13,329)
Other
comprehensive
income -loss)
from continuing
operations (3) 31 (205) (120)
Comprehensive loss
from continuing
operations (3,068) (3,814) (29,351) (13,449)
Consolidated net loss
from discontinued
operations - (699) (1,115) (4,474)
Other
comprehensive
loss from
discontinued
operations - - - -
Comprehensive loss
from discontinued
operations - (699) (1,115) (4,474)
Comprehensive loss (3,068) (4,513) $ (30,466) (17,923)
Loss per share
Loss per share
from continuing
operations $ (0.11) $ (0.16) $ (1.08) $ (0.65)
Loss per share
from
discontinued
operations - $ (0.04) $ (0.04) $ (0.22)
Total basic and
diluted net loss
per share $ (0.11) $ (0.20) $$ (1.12) $ (0.87)
Weighted-average
number of shares
outstanding during
the period:
Basic 28,352,284 24,144,002 27,268,792 20,852,034
Diluted 28,352,284 24,144,002 27,268,792 20,852,034
*Includes
stock-based
compensation
expense, as
follows:
General and
administrative $ 194 $ 662 $ 765 $ 1,752
Discontinued
operations - 44 - 427
Total stock-based
compensation
expense $ 194 $ 706 $ 765 $ 2,179
XpresSpa Group, Inc.
Use of Non-GAAP Financial Measures
(In thousands)
Three months ended Nine months ended
September 30, September 30,
2018 2017 2018 2017
Products and
services revenue $12,922,000 $ 12,652,000 $ 37,760,000 $ 36,563,000
Cost of sales
Labor (5,997,000) (7,086,000) (18,697,000) (18,178,000)
Occupancy (1,996,000) (1,950,000) (6,216,000) (5,704,000)
Products and
other
operating
costs (1,966,000) (1,311,000) (5,092,000) (5,701,000)
Total cost of
sales (9,959,000) (10,347,000) (30,005,000) (29,583,000)
Gross profit 2,963,000 2,305,000 7,755,000 6,980,000
Gross profit as a
% of total
revenue 22.9% 18.2% 20.5% 19.1%
Depreciation,
amortization and
impairment
Depreciation (1,195,000) (1,117,000) (3,474,000) (4,604,000)
Amortization (684,000) (605,000) (1,901,000) (1,775,000)
Goodwill
impairment - - (19,630,000) -
Total
depreciation,
amortization and
impairment (1,879,000) (1,722,000) (25,005,000) (6,379,000)
Total general and
administrative
expense (3,943,000) (4,180,000) (12,443,000) (13,037,000)
Other operating
revenue and
expense
Other
operating
revenue - 200,000 800,000 300,000
Other
operating
expense (26,000) (126,000) (116,000) (343,000)
Total other
operating
revenue, net (26,000) 74,000 684,000 (43,000)
Operating loss
from continuing
operations (2,885,000) (3,523,000) (29,009,000) (12,479,000)
Add:
Depreciation
and
amortization 1,879,000 1,722,000 5,375,000 6,379,000
Goodwill
impairment - - 19,630,000 -
Merger and
acquisition,
integration,
and one-time
costs 452,000 529,000 1,057,000 1,365,000
Stock-based
compensation
expense 194,000 662,000 765,000 1,752,000
Adjusted EBITDA
loss (360,000) (610,000) (2,182,000) (2,983,000)
XpresSpa Group Inc.
Same Store Sales Growth for Third Quarter 2018
($ in thousands)
September 30, 2018 September 30, 2017 %
Non-Comp Non-Comp
Comp Comp
Store Store Total Store Store Total
Revenue $11,375 $ 1,547 $12,922 $11,732 $ 920 $12,652 (3.0%)
> Dow Jones Newswires
November 14, 2018 16:05 ET (21:05 GMT)
XpresSpa Group 3Q Loss/Shr 11c >XSPA
(MORE TO FOLLOW) Dow Jones Newswires (212-416-2800)
November 14, 2018 16:05 ET (21:05 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
XpresSpa Group 3Q Loss $3.07M >XSPA
(MORE TO FOLLOW) Dow Jones Newswires (212-416-2800)
November 14, 2018 16:10 ET (21:10 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
XpresSpa Group 3Q Rev $12.9M >XSPA
(MORE TO FOLLOW) Dow Jones Newswires (212-416-2800)
November 14, 2018 16:10 ET (21:10 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
XpresSpa Group in Partnership With Sleep App Calm>XSPA
(MORE TO FOLLOW) Dow Jones Newswires (212-416-2800)
November 14, 2018 17:19 ET (22:19 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
Calm Invests Up to $3M in XpresSpa
(MORE TO FOLLOW) Dow Jones Newswires (212-416-2800)
November 14, 2018 17:20 ET (22:20 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
*DJ Calm Invests Up to $3M in XpresSpa
(MORE TO FOLLOW) Dow Jones Newswires (212-416-2800)
November 14, 2018 17:20 ET (22:20 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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