XWELL, Inc. (Nasdaq: XWEL) (“XWELL” or the “Company”), an authority
in health and wellness solutions for people on the go, today
reported results for the first quarter ended March 31, 2023.
management’s commitment to better serve clients, optimize
efficiencies, and deliver long-term growth:
- First quarter 2023 revenue at the
Company’s XpresSpa business increased over 70% versus the 2022
- Demonstrating the effect of the
Company’s cost-savings initiatives and deliver a leaner, more
profitable XpresSpa business, first quarter 2023 general and
administrative expenses decreased 12.7% sequentially and decreased
40.2% from the 2022 first quarter.
- The Company has 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 offerings are designed to drive customer engagement,
strengthen brand presence, and increase foot traffic.
- XWELL plans to open a new XpresSpa
at Philadelphia International Airport in the second half of
- The Company plans to open a new
XpresSpa location in Abu Dhabi during the third quarter of
- The Company recently announced the
appointment of Valerie Lightfoot as Chief Financial Officer,
effective June 12, 2023.
- XWELL has engaged Benchmark to help
identify potential acquisition targets.
“XWELL continues to focus on driving growth in
2023 and beyond through both organic and external investments,”
commented Scott Milford, XWELL’s Chief Executive Officer. “We’re
taking action to improve our operating performance and return the
business to profitability. Looking forward, we remain committed to
advancing our retail growth initiatives, adding new products and
technologies in our XpresSpa locations to leverage efficiencies and
drive profit, expanding our bio-surveillance business and enhancing
growth through off-airport acquisition.”
Mr. Milford added, “We’re also extremely pleased
to welcome Valerie Lightfoot as our new Chief Financial Officer.
Valerie is a talented executive with demonstrated success in
executing acquisitions and delivering organic growth and we look
forward to her contributions to our leadership team.”
In May 2023, the Company announced that Valerie
Lightfoot has been named Chief Financial Officer, effective June
12, 2023. Ms. Lightfoot joins XWELL with over 25 years of financial
leadership experience. Ms. Lightfoot succeeds Omar Haynes, who has
been serving as Interim Chief Financial Officer. Mr. Haynes will
remain with the Company and resume his former role at Vice
President, Finance and Treasury.
First Quarter Business
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.
The Company’s continued international expansion
allows management 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 well-being.
The Company continues to execute 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
XpresSpa 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 initial HydroMassage
units were recently installed at Dubai International Airport and at
John F. Kennedy International Airport (“JFK”). XWELL plans to
deploy as many as 50 of the massage units across its business
domestically and internationally. XWELL will continue to provide
traditional massages across its XpresSpa locations.
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
Treat is a travel health and wellness brand and
a fully integrated concept blending technology with traditional
brick and mortar offerings to provide a holistic approach to
physical and mental well-being for travelers. Treat’s on-site
centers are currently located at JFK International Airport in New
York and Salt Lake City International Airport in Utah.
To achieve better economics, during the first
quarter of 2023, the Company closed its pre-security Phoenix Sky
Harbor location as well as streamlining the brand’s heath
Additionally, during 2023, XWELL plans to
integrate all existing wellness locations under a single brand
Bio-Surveillance Partnership with Ginkgo
BioworksIn late 2021, in collaboration with the Centers
for Disease Control and Prevention (“CDC”) and Ginkgo Bioworks
(NYSE: DNA), XWELL’s XpresTest, Inc. subsidiary (“XpresCheck”)
began conducting bio-surveillance 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 by incorporating
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.
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 nine bio-surveillance stations
in seven of the nation’s busiest airports.
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 bio-surveillance efforts
created in partnership with Ginkgo Bioworks and the CDC.
Liquidity and Financial Condition
As of March 31, 2023, the Company had cash and
cash equivalents, excluding restricted cash, of approximately $9.9
million, marketable securities of approximately $25.2 million,
total net working capital of approximately $30.8 million, and no
Summary First Quarter 2023 Financial
Total revenue during the first quarter ended
March 31, 2023, was $7.1 million compared to $24.0 million in the
prior year first quarter. Revenue for the first quarter of 2023
primarily consisted of approximately $4.7 million from XpresSpa
locations and Treat locations, $1.7 million in revenue from our
bio-surveillance partnership, and $0.6 million from our HyperPointe
Cost of Sales
Cost of sales decreased to $6.5 million for the
first quarter of 2023 compared with $15.0 million in the first
quarter of 2022.
General and Administrative Expenses
Demonstrating the effect of the Company’s
cost-savings initiatives, general and administrative expenses
decreased to $6.1 million for the first quarter of 2023, compared
to $10.2 million for the first quarter of 2022. The decrease was
primarily a result of closing underperforming locations and
right-sizing efforts of the Company’s overall cost structure.
Income from Operations
Loss from operations for the first quarter of
2023 was $6.3 million compared to a net loss from operations of
$2.5 million in the first quarter of 2022.
Net Income Attributable to Common Shareholders
Net loss attributable to common shareholders was
$5.5 million for the first quarter of 2022 compared to net loss
attributable to common shareholders of $4.3 million in the first
quarter of 2022.
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 412-317-6060.
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
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.
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