XWELL, Inc. (Nasdaq: XWEL) ("XWELL" or the "Company"), an authority
in wellness solutions for people on the go, today reported results
for the second quarter ended June 30, 2024.
Recent Highlights:
- XWELL delivered 2024 second quarter
revenue growth of approximately 14% from the comparable quarter in
2023 driven by stronger demand for services and retail
products.
- In June, XpresSpa opened a new spa
in Philadelphia International Airport -- its first in a U.S.
airport in more than 5 years and the first to leverage the
Company’s “labor-lite, tech-forward” offering.
- In June, the CDC issued a new
three-year biosurveillance program RFP which XpresTest is answering
and, if awarded, will commence during the third quarter of 2024. It
is anticipated that the value of this new contract will be similar
to prior contracts.
- In May, Naples Wax began offering
aesthetic services as part of its evolution as a full-service
spa.
- In May, XpresSpa launched a program
to introduce IV-hydration therapy into its spa locations.
- XWELL continues to focus on
reducing its cost structure and returning to profitability
including:
- Reducing cost of sales by
approximately 11% when compared to the 2023 second quarter.
- Reducing general and administrative
expenses by approximately 3% when compared to the 2023 second
quarter.
- Reducing salaries and benefits by
approximately 22% when compared to the 2023 second quarter.
- Reducing operating expenses by
approximately 16% when compared to the 2023 second quarter.
- In August, XWELL continued to fuel
its future growth plans by executing a $1.4 million registered
direct offering, which was priced at a premium to market.
“We continue to look towards the future,
successfully implementing our strategy to balance our portfolio
with growth outside the airport, and cost-effectively integrating
innovative services and retail products into our offering,”
commented Scott Milford, XWELL’s Chief Executive Officer. “At the
same time, we remain laser-focused on returning to profitability
and are pleased with the significant progress we’ve made reducing
costs and operating expenses. Looking ahead, we remain focused on
continuous improvement across our business, and we believe we’re
well positioned to extend our collaboration with the CDC for our
traveler-based SARS-CoV-2 Genomic Surveillance program.”
Travel Wellness Portfolio - XpresSpa®XpresSpa
is the leading airport retailers of wellness services and related
products, with 33 locations in 16 airports globally.
During the 2024 second quarter, XpresSpa opened
a new location in Philadelphia International Airport (PHL). Located
in Terminal B near Gate B2, the PHL XpresSpa includes the company’s
new branding as well as innovative offerings including its new
Ceragem therapeutic massage and compression beds, Clockwork
MiNiCURE and Human Touch automated massages. With more than 28
million passengers annually, the Company believes the PHL XpresSpa
represents an exciting opportunity to drive a sustainable and
profitable model with its labor lite and tech forward
offerings.
Additionally, during the 2024 second quarter,
the Company announced the introduction of IV hydration drip therapy
at its Miami International Airport (MIA) XpresSpa location. In
collaboration with Revitalize IV Lounge, the new service offers a
fast and efficient way to deliver vitamins, minerals, and amino
acids directly into the bloodstream and is available in MIA’s North
Terminal, Concourse D, Gate D-11. The introduction of hydration
therapies in our spa locations aligns with our continued desire to
offer a wider variety of “on-trend” wellness services.
Additionally, during the 2024 second quarter,
XpresSpa also announced the launch of its first use of the Ceragem
V-6 massage bed providing therapeutic massage to guests. The fully
autonomous massage solution is designed to rejuvenate and
revolutionize relaxation by providing enhanced blood circulation,
muscle and joint discomfort, as well as muscle relaxation. This
device combines touchless massage, compression, and heat therapy to
provide users with a blissful experience of relaxation and relief.
Locations for the Ceragem V-6 include Salt Lake City International
Airport (SLC), Philadelphia International Airport (PHL) and Orlando
International Airport (MCO).
New York City’s Penn Station
XpresSpa Consistent with XWELL’s strategy to extend its
footprint into transportation hubs, the Company is opening an
XpresSpa location in New York City’s Penn Station. The labor-lite,
tech-forward spa will serve commuters, neighborhood locals, and
tourists with wellness-focused retail, autonomous massage, and nail
care services, enabling seamless and efficient experiences for
time-crunched New York City travelers. The Penn Station XpresSpa is
expected to open to commuters later this year.
Out-of-Airport Wellness Portfolio -
Naples Wax Center®XWELL’s first off-airport brand, Naples
Wax Center, is a group of upscale hair removal and aesthetic
services boutiques with current locations in Florida. Acquired in
mid-September 2023, Naples Wax Center provides core products and
service including face and body waxing as well as a range of
skincare and cosmetic products from its current three
locations.
During the 2024 second quarter, the Company
announced the introduction of elevated esthetic facial services at
its Naples Wax Center flagship location in Naples, FL. The new
offerings include a Microderm Infusion Facial, LightStim®
Invigorating Light Facial and Classic Refreshing Facial.
Additionally, Naples Wax Center is introducing curated retail
product lines that align with its new service offerings, including
SkinMedica and PCA Skin.
The Company is intending to execute additional
leases in Florida, forecasting approximately 10 Naples Wax Center
locations by early 2025. XWELL also intends to extend its reach
across the Southeast. As new locations are opened, they will also
incorporate the additional aesthetic services into the Naples Wax
Center model to drive new revenue and broaden their offering.
Life Sciences & Biosurveillance --
XpresCheck® and HyperPointe™The Company XpresTest, Inc.
subsidiary (“XpresCheck”), in collaboration with the Centers for
Disease Control and Prevention (“CDC”) and Ginkgo Bioworks,
currently operates 9 biosurveillance stations in 7 of the nation’s
busiest airports.
As noted, in June 2024, the CDC issued a new
3-year biosurveillance program RFP which XpresTest is answering
and, if awarded, will commence during the third quarter of 2024. It
is anticipated that the value of this new contract will be similar
to prior contracts.
XpresTest, Inc began conducting bio surveillance
monitoring with the Centers for Disease Control and Prevention
(CDC) in collaboration with Concentric by Ginkgo Bioworks in 2021.
The program was extended in January 2022 and renewed in August of
2022 and 2023. In March 2024, the program’s funding and scope were
expanded to an estimated $36.7 million or more.
TGS is a flexible, multimodal platform that
consists of four complementary approaches of sample collection from
arriving international travelers at U.S. airports, including
voluntary nasal swabbing, aircraft wastewater, air monitoring and
airport wastewater sampling to enhance early detection of new
SARS-CoV-2 variants and other pathogens, and fill gaps in global
surveillance.
Additionally, the Company began reporting
operating results for HyperPointe within its XpresCheck business.
Beginning in June 2020, and following its acquisition by XWELL in
January 2022, 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 the
XpresCheck business. HyperPointe’s experience in this space
continues to play a critical role in the expansion of ongoing
biosurveillance efforts created in partnership with Ginkgo Bioworks
and the CDC.
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.
Liquidity and Financial
ConditionAs of June 30, 2024, the Company had
approximately $5.4 million of cash and cash equivalents (excluding
restricted cash), approximately $13.0 million in marketable
securities, total current assets of approximately $23.1 million,
and no long-term debt.
Direct Offering and Shareholder
EngagementAdditionally, on August 8, 2024, the Company
closed its registered direct offering priced at a premium to market
for the issuance and sale of an aggregate of 652,705 shares of its
common stock, par value $0.01 per share, at a purchase price of
$2.18 per share. The gross proceeds to the Company from the
offering were approximately $1.4 million, before deducting offering
expenses payable by the Company. The Company intends to use the net
proceeds of this offering for working capital and general corporate
purposes.
Furthermore, on August 13, 2024 the Company
announced the withdrawal of a previously filed lawsuit from CPC
Pain & Wellness SPV, LLC (“CPC”), which concerned CPC’s invalid
director candidate nomination notice. The Company appreciates the
opportunity to engage with its stockholders and welcomes
constructive feedback. The Company is pleased with the outcome of
this dialogue and continues to focus on the strategic plan and
delivering long-term value for all stockholders.
Summary Second Quarter 2024 Financial
ResultsTotal revenue for the second quarter ended June 30,
2024, was $9.3 million compared to $8.2 million for the 2023 second
quarter.
Revenue for the 2024 second quarter primarily
consisted of approximately $4.9 million from XpresSpa locations and
Treat locations and approximately $3.8 million from XpresTest,
which includes XWELL’s biosurveillance partnership and its
HyperPointe business. Naples Wax Center, which was acquired near
the end of the 2023 third quarter, accounted for approximately $0.5
million.
Total Cost of SalesTotal cost of sales was approximately $6.2
million compared to approximately $7.0 million for the 2023 second
quarter.
Salaries and Benefits; General and Administrative
ExpensesSalaries and benefits were approximately $1.7 million
compared to $2.1 million for the 2023 second quarter. General and
administrative expenses were approximately $3.1 compared to
approximately $3.2 million for the 2023 second quarter.
Total Operating ExpensesTotal operating expenses were
approximately $5.0 million compared to approximately $5.9 million
for the 2023 second quarter.
Operating LossThe operating loss was approximately $1.9 million
compared with an operating loss of approximately $4.7 million for
the 2023 second quarter.
Net Loss Attributable to XWELLNet loss attributable to XWELL was
approximately $2.0 million compared to approximately $5.7 million
for the 2023 second quarter.
About XWELL, Inc.
XWELL, Inc. (Nasdaq: XWEL) is a leading global
wellness holding company operating multiple brands: XpresSpa®,
Treat™, Naples Wax Center®, XpresCheck® and HyperPointe™.
- XpresSpa is a
leading retailer of wellness services and related products, with 33
locations in 16 airports globally.
- Naples Wax
Center is a group of upscale skin care boutiques, with three
locations currently operating.
- XpresCheck, in
partnership with the CDC and Concentric by Ginkgo, conducts
biosurveillance monitoring in its airport locations to identify new
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.
Forward-Looking Statements
This press release may contain "forward-looking"
statements within the meaning of the Private Securities Litigation
Reform Act of 1995, Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. 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, including the Company’s current
plans and expectations relating to the business and operations and
future store openings, including but not limited to, future
openings of Naples Wax Center and XpresSpa stores, are based upon
information available to XWELL as of the date of this press
release, 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, as amended, Quarterly Reports on Form 10-Q and Current
Reports on Form 8-K, and other Securities and Exchange
Commission filings. 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.
MediaMaria Kucinski
MWW mkucinski@mww.com
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