XWELL, Inc. (Nasdaq: XWEL), an authority in health and wellness
solutions for people on the go, today reported results for the year
ended December 31, 2022.
continuing to evolve our organization and, reflecting the Company’s
commitment to better serve clients, optimize efficiencies, and
deliver long-term growth, management has recently:
- Opened 5 XpresSpa locations at
Turkey’s Istanbul Airport; additional growth in Abu Dhabi during
the third quarter of 2023.
- Opening new XpresSpa at
Philadelphia International Airport in 2023.
- Scaled new retail products and
integrated innovative health and wellness technologies, including
fully autonomous HydroMassage and Human Touch® hands-free massage
equipment as well as Clockwork’s AI-powered express manicure units.
These three partnerships are designed to drive customer engagement,
strengthen brand presence, and increase foot traffic.
- During the first quarter of 2023,
expanded support for the Centers for Disease Control and
Prevention’s (CDC’s) Traveler-based Genomic Surveillance program to
include a pilot study monitoring influenza viruses in addition to
SARS-CoV-2. In addition, two new CDC stations were opened at
Seattle-Tacoma International Airport and Los Angeles International
- Continue to engage with Benchmark
to help identify potential acquisition targets.
- Reduced cash operating costs with
the closure of underperforming XpresCheck and XpresSpa locations
and the closure of Treat at Phoenix Sky Harbor International
“XWELL continues to make steady progress
executing against the Company’s operating strategy,” commented
Scott Milford, XWELL’s Chief Executive Officer. “We’re taking
action to position the Company for growth and improved performance
and enter 2023 focused on further leveraging our recent progress to
deliver a leaner, more profitable spa business, advancing our
retail growth initiatives, expanding our biosurveillance business
and growth through off-airport acquisition.”
Fourth Quarter Business
XpresSpa®There are currently 35
operating XpresSpa locations, including 10 locations
Internationally. These International locations consist of two at
Dubai International Airport in the UAE, three at Schiphol Amsterdam
Airport in the Netherlands, and five at Istanbul Airport in Turkey.
We expect to open a location in Abu Dhabi in the third quarter of
2023. This continued expansion allows XWELL the opportunity to
further leverage its expertise in providing premium wellness
services to more international passengers who appreciate health and
wellness services and are willing to spend more in pursuit of their
Bolstered by renewed interest in wellness
services among travelers, along with a willingness to spend
additional dollars on products and services that will improve their
well-being while they travel, the Company is executing its new
retail strategy to drive more foot traffic into its airport
locations and augment its on-line presence. This includes bringing
new technologies and trends, including new tech-forward equipment,
adding new products in-store and on-line, as well as deploying
plans to refresh the look and appearance of some XpresSpa
Towards this end, since February 2023, the
Company has implemented Novo XT massage chairs at seven of their
Spa locations. These therapeutic chairs, through a partnership with
Human Touch, simulate zero-gravity and weightlessness to maximize
the results of the automated massage. Additionally, the Company’s
first HydroMassage unit was recently installed at its John F.
Kennedy International Airport (“JFK”) location with an additional
three machines expected to be deployed later this year.
Additionally, in partnership with Clockwork, the
pioneer in robotics for the beauty industry, the Company recently
launched the use of Clockwork’s next generation, fully autonomous,
AI-powered express manicure at its JFK XpresSpa location. XWELL
plans to launch at least five of Clockwork’s AI-powered robots
across the Company’s portfolio in 2023 with the intent to deploy as
many as 25 units across the business.
These automated offerings provide self-care to
guests while bringing operational efficiency to the Company’s
TreatTreat is a travel health
and wellness brand and a fully integrated concept blending
technology with traditional brick and mortar offerings to provide a
holistic approach to physical and mental well-being for travelers.
Treat’s on-site centers are currently located at JFK International
Airport in New York and Salt Lake City International Airport in
To achieve better economics, earlier this year,
the Company closed its pre-security Phoenix Sky Harbor location as
well as streamlining the brand’s heath offerings. Additionally,
during 2023, XWELL plans to integrate all existing wellness
locations under a single brand concept.
Biosurveillance Partnership with Ginkgo
BioworksIn late 2021, in collaboration with the Centers
for Disease Control and Prevention (“CDC”) and Ginkgo Bioworks,
XpresCheck began conducting biosurveillance monitoring aimed at
identifying existing and new SARS-CoV-2 variants.
The program was expanded from four major U.S.
airports (JFK International Airport, Newark Liberty International
Airport, San Francisco International Airport, and
Hartsfield-Jackson Atlanta International Airport) to seven major
U.S. airports (now also includes Dulles International Airport,
Seattle-Tacoma International Airport and Los Angeles International
During the third quarter of 2022, XpresCheck, in
partnership with Ginkgo Bioworks (and in continuation of their
support to the CDC’s traveler-based SARS-CoV-2 Genomic Surveillance
program) were awarded a new contract. Additionally, as COVID-19
sublineages and other biological threats continue to emerge, the
partners plan to expand the program footprint incorporate
innovative modalities and offerings, such as monitoring of
wastewater from aircraft lavatories.
In the first quarter of 2023, XpresCheck and
Ginkgo Bioworks announced they expanded their support of the
program to include a pilot study monitoring influenza viruses in
addition to SARS-CoV-2, providing an additional source of viral
surveillance to inform the selection of influenza vaccine viruses
for the forthcoming 2023-2024 flu season.
Inc. subsidiary (“XpresCheck”) provided medical diagnostic testing
services during the outbreak of COVID-19. Following the relaxation
of testing requirements by the US and other countries in 2022,
XpresCheck locations began to close. As of March 31, 2023, 15
XpresCheck locations have been closed except for one location
serving our military forces being stationed overseas and flying out
of Seattle, WA.
The Company, in collaboration with the CDC and
Ginkgo Bioworks, currently operates seven biosurveillance stations
in seven of the nation’s busiest airports.
HyperPointe™In January 2022,
the Company announced and closed on the acquisition of GCG Connect,
LLC d/b/a HyperPointe. HyperPointe is a leading digital healthcare
and data analytics relationship marketing agency, servicing the
global healthcare and pharmaceutical industry. HyperPointe has
significant experience in patient and healthcare professional
marketing and deep technological experience with CXM (customer
experience management) and data analytics.
Since June 2020, HyperPointe’s management team
and suite of services and technology have been utilized to develop
and deploy the technological infrastructure necessary to scale the
growth of our XpresCheck business. HyperPointe’s experience in this
space continues to serve the XpresCheck business and will play a
critical role in the expansion of ongoing biosurveillance efforts
created in partnership with Ginkgo Bioworks and the CDC.
Share Repurchase ProgramDuring
2022, the Company repurchased approximately 19.5 million shares for
approximately $23.8 million. There are approximately 0.8 million
shares that remain available under the Company’s 25-million share
repurchase program that was announced on August 31, 2021 and
subsequently increased on May 20, 2022.
Liquidity and Financial
ConditionAs of December 31, 2022, the Company had cash and
cash equivalents, excluding restricted cash, of approximately $19
million, marketable securities of approximately $23 million,
working capital of $36.4 million, and no long-term debt.
Summary Fiscal Year 2022 Financial
ResultsTotal revenue during the fiscal year ended December
31, 2022, was $55.9 million compared to $73.7 million in the prior
year. The revenue for fiscal year 2022 primarily consisted of
approximately $15 million from XpresSpa locations and Treat
locations, $32 million from XpresCheck locations, $7 million in
revenue from our bio-surveillance partnership, and $2 million from
Cost of SalesCost of sales increased to $43.9
million for fiscal year 2022 from $41.4 million in the prior year.
The principal factor leading to this increase was the reopening of
several spas in the US, the opening of four spas in Turkey in 2022
and the acquisition of HyperPointe offset by the closure of several
underperforming XpresCheck locations in the fourth quarter of
General and Administrative ExpensesGeneral and
administrative expenses were $31.2 million for fiscal year
2022,compared to $24.2 million for fiscal year 2021. As reported in
the second quarter of 2022 10-Q, general and administrative
expenses for the first half of 2022 were approximately $9 million
higher than the same period during the prior year. Demonstrating
the effect of the Company’s cost-savings initiatives, general and
administrative expenses for the second half of 2022 reflect an
approximate $4 million savings when compared with the first half of
2022 and an approximate $2 million savings when compared to the
same period in 2021.
Income from OperationsLoss from operations for
fiscal year 2022 was $31.2 million compared to income from
operations of $4.1 million in the prior year.
Net Income Attributable to Common
ShareholdersNet loss attributable to common shareholders was $32.8
million for fiscal year 2022 compared to net income attributable to
common shareholders of $3.3 million in fiscal year 2021.
XWELL will host a webcast and conference call at
5:00 pm Eastern Time today. We encourage investors and all
interested parties to listen via webcast as there is a limited
capacity to access the conference call by dialing 201-689-8263. The
live and later archived webcast can be accessed from the Investor
Relations section of the Company’s website at http://xwell.com.
Visitors to the website should select the “Investors” tab and
navigate to the “Events” link to access the webcast.
About XWELL, Inc.
XWELL, Inc. (Nasdaq: XWEL) is a leading
global health and wellness holding company operating four brands:
XpresSpa®, Treat, XpresCheck® and HyperPointe™
- XpresSpa is a
leading airport retailer of wellness services and related products,
with 35 locations in 15 airports globally.
- Treat is a
travel health and wellness brand and a fully integrated concept
blending technology with traditional brick and mortar offerings to
provide a holistic approach to physical and mental well-being for
- XpresCheck is a
provider of screening and diagnostic testing in partnership with
the CDC and Concentric by Ginkgo, conducting bio-surveillance
monitoring in its airport locations to identify new SARS-CoV2
variants of interest and concern as well as other pathogens
entering the country from across the world.
- HyperPointe is a
leading digital healthcare and data analytics relationship company
serving the global healthcare industry.
This press release may contain "forward-looking"
statements within the meaning of Section 27A of the Securities Act
of 1933, and Section 21E of the Securities Exchange Act of 1934.
These include statements preceded by, followed by or that otherwise
include the words "believes," "expects," "anticipates,"
"estimates," "projects," "intends," "should," "seeks," "future,"
"continue," or the negative of such terms, or other comparable
terminology. Forward-looking statements relating to expectations
about future results or events are based upon information available
to XWELL as of today's date and are not guarantees of the future
performance of the Company, and actual results may vary materially
from the results and expectations discussed. Additional information
concerning these and other risks is contained in the Company’s
Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and
Current Reports on Form 8-K, and other Securities and Exchange
Commission filings (which reports were filed under the Company’s
former name, XpresSpa Group, Inc., prior to its previously
announced name change effective October 25, 2022). All subsequent
written and oral forward-looking statements concerning XWELL, or
other matters and attributable to XWELL or any person acting on its
behalf are expressly qualified in their entirety by the cautionary
statements above. XWELL does not undertake any obligation to
publicly update any of these forward-looking statements to reflect
events or circumstances that may arise after the date hereof.
MediaHeather Tidwell MWW
Historical Stock Chart
From Feb 2024 to Mar 2024
Historical Stock Chart
From Mar 2023 to Mar 2024