XSPA - Earnings call transcript Q4 2020

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Operator

Greetings. And welcome to XpresSpa Group Fourth Quarter 2020 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. to conference like host, to now Mr. would turn over this your I Financial Berry, Officer. James Chief sir. you, Thank

You may begin.

James Berry

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

factors this business as Satzman XXXX contain quarter results, forth we such forward-looking on include release call following. forward-looking I current advise Private was file Securities December which that and update report Litigation Act year CEO, those Comments our over now contained statements our to SEC. in financial XX, within provides need statements are of our a briefly meaning These based review Doug with this uncertainties. time-to-time with Actual involve on reports and or Before of from the afternoon, like earnings issued and the on the suggested filings, also the may I Important afternoon, our might those current materially Form periodic results differences to you that and first made the I known by fourth including call today’s an may unknown turn the along assumptions and would filed of other set ended our and to XXXX, opinions Reform statements. such well SEC of in Doug. for our XX-K differ XXXX. variety from as risks cause forward-looking on

Doug Satzman

afternoon. Good

update as in legacy steps taking substantial stand space new I opportunity business including to the call. view James. some Afterwards, health evolving like to business capitalize travel, a in we Welcome on First, that preliminary on a to post-COVID thoughts, our XpresCheck. wellness I’d I will some to model and with a we’re what welcome in share earnings currently near-term on XpresSpa we Spa would world. his This first Berry, our like moving James brief CFO to before where Mr. afternoon, our provide

and with and COVID-XX starting people business. travel is XXXX the vaccinated, XpresSpa we likely late traffic get to as industry to until take more our airport begins across recover, All pre-pandemic early return before decline can more volumes. XXXX travel consensus will that legacy So to continue cases or the

encouraged certainly returning up is locations part we and to to are still that employees long reopened near-term summer. way traffic We perhaps in to airline that due work, And are picked traffic to likely break recently, airport has to spring XpresSpa and again have seasonal the in go. the on a to the taper before international test waters. based we July, last the historical off patterns, to Beginning excursions

in International Then selling in International and Airport. Specifically, opened blankets. Dubai various neck limited been pillows our late providing reopened as Austin, Domestic Soul Airport, and September, our we XpresSpa franchisee travel spa spa we have spas such products, in services where Bergstrom

three locations continue despite all to these breakeven close airport of traffic increasing and However, not the are profitability. to underperform

airport setting, continued and close an will with massage near-term. to the we these cosmetologist and currently reopen not one-to-one our Given therapists do customer traditional interactions plans personal spas services be uneasiness, we have circumstances what for believe in in having

will point the the pandemic several have reopening future. select at as of and of -- This therefore them spas outcome project on pandemic possible none in volume as acceptable We and scenarios in reevaluate change financial low-to-mid analysis run could this wane an we time.

Now business. turning to our XpresCheck

locations with are today, across pipeline. operating As additional airport nine pop-up the Centers in two of Wellness XpresCheck we XX locations,

at one, Francisco will be First first the San -- Tacoma Airport. second International Seattle Tacoma Airport the at opened and International

weeks. in open to locations both expect coming We the

at October. test the polymerase with This that the has rising rapid are rollout in by of continue we’re aided further at price margin airport also volumes XpresCheck and the improve or rapid, COVID blood the the to test antibody are substantially and a which early all to the most reduce higher by that monthly conducting and tests profit compared preferred or point helped PCR now patient option increase been Over help gross $XXX test traffic our has chain molecular cash Our reaction at is we far to XX% versus we of burn. launched $XX.

the we as quarterly because in XX a today’s and is As of as a last today’s and But detailed on and XX-K services. state-by-state earnings service in organization range report that governed management in our a on filing administrative provides fee company and XpresCheck service And or state-by-state basis or from with regulations. revenue a operates functions Agreement this management a XX-Q engine healthcare specific administrative which management a instead, in management receive our Services a per the regulations, last with revenues XX-K do Management -- not based patient as by physician call, physicians. is MSO, services we

recognize not XXXX to quarter in result, revenue we XpresCheck. a able of fourth to As are related the

at March the reflective have updated of anticipate are reassessed insurance volumes this similar year. all tests. we able report to first being and own. agreements XpresCheck they Under their XXXX, seeing we in better that However, testing for then reimbursement locations. patient all this a along their tests, what we’ve to that for of the pay of time fee-for-service Therefore, doing model patients revenue fees transitioned actual with locations submit been service notable, new model, we’re X, the the half directly our Also are to projections in XpresCheck on and rapid effective able to for our

submitted still are fees companies. lab lab for outside the from insurance reimbursement However,

and partnerships. notable testing also additional We provide for COVID-XX of the will past the our a months, a services lines XpresCheck week, rapid this of secured and test us. for revenue which many several be antigen has suite testing another In additional of rapid PCR test passengers methods adding brand require will travel to that also few

All we and five required -- amplification test over from a XXXX, acid become trusted of XX, November we travelers became on testing ages State designated are a announced as nucleic to certified Laboratory -- of NAAT Clinical a As take or partner. of in results bypass to and no hours Hawaii’s mandatory from lab of State departure XX be The the State order accepts CLIA more tests quarantine. Partners than Travel only must flight before Amendment Improvement and time. Trusted taken test Testing Hawaii XX-day Hawaii

We’re State vacation. people proud to be a awaited trusted long of of as Hawaiian Hawaii partner the a take

globally X Royal airlines International Boston Netherlands. Newark As Airlines, of United Logan January Airport our passengers JFK The locations Dutch PCR International Liberty as COVID-XX flights with The This Netherlands before rapid hours locations policy departure, location, within hours the test strictest COVID-XX Delta departure. travel negative before testing and well requires -- XXth, as for incoming we’ve XX for the negative of time. international Airport Airlines, COVID-XX been working the a four to out at requirement Terminal is our KLM passengers our test

collaborating hour to rapid airports. four the airlines requirement are these major these meet at We test select with

have JFK antigen We Terminal BD Veritor rapid tests for Veritor of BD SARS piloted also test bus at COVID-X the implementation system. administering X rapid the a

enter to hassle-free app are Next, into a we able as from accepted which for the to International then partnered where Boston’s XpresCheck platform Airport to their from their utilize app. arrival as The test through and at Aruba destinations this with avoid labs applicable. app. The Wellness results Airport CommonPass CommonPass results entry XpresCheck JetBlue upon show Centers Queen International test at the CommonTrust are Network’s directly pass Boston quarantines, and Beatrix currently partnered Logan uploaded testing, able CommonPass ensure with to customers and digital health U.S. traveling two to airlines to COVID-XX results so then Passengers test links the CommonPass is such COVID-XX

We acceptance of continue CommonPass are time. hopeful will to over that expand

deployed Wellness similarly as as Centers in engaged that with XpresCheck reasonably are passport discussions apps to emerging We health possible. other soon could be

we may subject vaccination requirements. initially, awaiting FDA vaccines state time, passengers be Upon launch approved use eligible airline a and administer availability approval the state-by-state primarily and program basis also approval state-by-state are for staff of receipt COVID-XX over locations. to supply necessary at COVID-XX We and the select eligibility could to on by focused although airport vaccines, for vaccines employees XpresCheck on a other

services. important the we and would major Finally, efforts This airline XpresCheck health additional on in we and COVID-XX evaluation -- pop-up the we’ve other and remain remaining hub, can focused other wellness was wellness services bring COVID-XX and future, on believe the category to development testing Centers employees, and believe to comprehensive This are new service emerging reassessing travel pipeline. new the future viability for is airline market staff Wellness resources of health brand international testing beyond the economic our more made our pending an requirements. necessary include will focuses or then XpresCheck, that locations a that related travel passengers foreseeable so while on personal based of that decision still travel, the for two dedicate airports and we developing of

So the sharing wellness I’ll as evolve to plans now organization. travel like our on. investors start and We’d to turn plan as to that our brand how we’re with an health new we to working

wellness As last we the health quickly you are to legacy in brand a already March, a to looking as post-COVID XpresCheck what we and and struck for world. our will bridge once aware, believe business pandemic Spa pivoted customers be between

and both. to are where travel healthy, be provide them point People they travel, so we help the we well. at state to for and return a want answer need to colliding and state can We’re safe want a but the need can

brand, in at before, as to the this to journey For post-arrival new is later clear health care. for travel and reasons, to we services wellness a will and entire the travel. date, planning especially wellness than announce consumers from and ever it we health general name plan relates this are provide more true With focused

is newly health travel positioned and wellness healthcare a brand a experience historic acquired world We’re and developing our that our post-pandemic leverages wellness expertise. and for

will date. a wellness, to again. of new because health company, travel-focused is is the We brand that of pillar, technology In and a of The personalized in to addition in a healthcare category a the to access to retailer are and providing in travel, and has skyrocketing documents healthcare. new and travel health the wellness a be opportunity and access will trend are these to services. airports, concept one integrated categories. In experience differentiated travelers as experience strategic and was it new differentiated innovator the app. name, will prior to mind is provide integrated because its industry care our niche delivering three health this wellness The wellness through health leverage operational peace rise and industry, will to and real and it airport health it brand wellness COVID-XX and a existing assets brand preparing be is to significant Travel announced estate all expert. on-demand in adding combination in while see differentiated again, at category enable and travel, a it because We and evolution which working a later a pillars place and technology intersection directly health be experience launch in integrated travel with brand access

under suite and pre-travel meditations will new as such this and an as brand, with to panel care care guided medical available convenient on-site COVID-XX a established access telemedicine such wellness care; While be yoga. anxiety broader through virtual services and may company; and planning, care, services chat include video testing, care partnership testing of travel virtual metabolic

some and feasible, wellness evolve two and of as locations as XXXX. expected wellness footprint late intends into early open where additional legacy travel new in well health time, suitable venues. to XpresSpa Company the are airport health travel fall in other open first its integrated terminals Over brand, and or to summer The this locations

provide this long stream be more the and revenue will for achieved opportunities our term, that estate. our revenue significant envision we will airport over success digital of real profit However, than The growth channels and through care curated well be content through wellness. monetized supporting can that as that provide be tools we will both through and affiliate offering e-commerce. upstream retail health subscription-based travel as services revenue Further,

its summer our recovery currently this openings are initial two into the fall assets as location the laying and travel have digital timeframe launched begins of XXXX. first in to ahead brick-and-mortar the We groundwork

and for Given position other in growth, strong would evolving this we - also invest to concept. investments and beyond also its broaden poise accretive new offerings acquisitions our opportunities further would consider retail new service liquidity and we and

in With of about this to brand that, are future excited James. I’ll the it We XpresSpa. turn new

James Berry

Doug. you, Thank

inability earlier, to referenced revenue the operations under during had our Doug aforementioned and limited fourth quarter very given revenue As agreement. services our we negligible recognize management

the ASC fourth and therefore business, the have no as XXX a $XXX,XXX result of not during that was contract collectability the quarter uncertainties for XXXX, management agreements. paid under of from cash recognized management around flow a as met revenue deposit services quarter As the the of criteria we XpresCheck the associated fourth with fees was fees contract concluded a to we XXXX, recognized the the Instead monthly liability. qualify management

December not revenues as fees of management million. XXXX, was As recognized XX, $X.X

half However, management expect be able we first to XXX. after to service agreements of to relative the the XXXX do revenue reassessment in of ASC recognize

the the $XXX,XXX the and of XX, to As products fourth marketing sales $X,XXX $X.X due offset decreases temporarily the by services. cash for in reduction $X.X quarter. expense closing and others. spa where decrease the changing locations, costs due received a and airports. of Dubai impairment related impairment in disposals certain of result, was million. locations’ local million to to The to in impairment prior million $XXX,XXX spa substantially million the partially of to three of reopened through services increased The improvements from to and to compared On cost due was to management of Net flat COVID-XX in in spa generated reported assets the lease business that were of agreement the recently to the $XX.X pandemic, from were due sales primarily year $X fourth expenses attributable decrease value million the to $XX.X the in $X.X discounted months losses agreements the management expense Operating jurisdiction of General XpresSpa associated offset occupancy of was decrease shareholders compared year $X.X the rent loss quarter. support locations locations sufficient as administrative at $X operations by to respectively, in net quarter. variable fourth not decreased categorization compared revenues million prior-year all prior global for of prior $XX,XXX, assets, services use COVID-XX, common assets approximately both the decline the period the by right over a revenue revenues and by the spas periods. these of term provided costs trademark. pursuant million sales operating million determined in was corresponding $X.X shareholders the were loss are quarter. partners to Cost and climate the attributable The year with dollars in $XX.X and ended $XX.X during XXXX. from in result to adverse our in December lease to and the million concessions of XpresCheck the as XpresSpa common due fourth and the flows leasehold future made from name for with strategic They million to of impact carrying remaining XpresSpa million trade comparable to revenue was of increased to The non-essential and was

equivalent remained strong our financials, GAAP our million $XX.X XXXX. with to equivalents December liquidity as cash approximately of respect XX, with totaling Finally, and cash

refer Annual XX-K today. Report Form our filed please to details, further on For

non-GAAP respect transparency to Let conclude helpful the with in in performance. with of financial we providing XpresCheck its me believe that will now terms metrics greater be

financial patient we recent not patient average testing daily investors of in testing XpresCheck as disclose detailed with revenue and generate Although non-GAAP opted from along have greater the metrics. we do directly relevant transparency to performance, with current interest other regarding volumes above, providing volume

quarter along and rapid testing, the of to become testing and did XXXX. travel period. reflects in of to During XX XX COVID-XX not the averaged rapid total COVID-XX October margin quarter increase Center volumes generated with testing fourth tests fourth industry quarter was a until rapid during December revenue/higher airline the number due November patient XpresCheck percentage of rollout traffic XXXX, the December of available average patient from over as XXX readily tests for the third the higher COVID-XX three-month XXXX. significant during average early Wellness volume XpresCheck XXXX daily with an Centers tests a XX the period. XXXX in in higher largely was the people and at XX% of people holiday This to XX% daily the volumes of Notably, increase the Wellness approximately

first representing during percentage XXXX million, margin. the the cash million margin pro was The pre-pandemic patient was while revenue margin $XXX per the the a XpresCheck revenue/higher forma $X.X improvement was while slowed patient weeks of XX%. tests locations. averaged the performance gross January Company’s profit of and exceeds gross profit quarter XX Total was volumes three total XpresSpa During average first higher of burn in including pro test for XX.X% XX, ended COVID-XX Total the XpresCheck as period. has XX,XXX XXXX, revenue services of rapid tests $X.X rapid months the patient XX,XXX a the that forma monthly four-wall volume legacy XpresCheck

with and afternoon your questions. to this time So that, we appreciate ready are take your now

Operator

Instructions] [Operator you with questions. may [ph], Michelle proceed

Unidentified Analyst

Doug. Hi,

a why The reopening that have open the summer, few Don’t coming spas moment a more resume don’t at think not the will once by and relevant then? is locations. normal some rolled be first point? people good try everyone not at but begin is activities you will think to in, spas you available perhaps and vaccine And to the out idea, question we

Doug Satzman

model. to of time, to We our when to be you they’re people they that they not if next intimate even a do, for can close our use in the to material opened Even to XX% us interaction. are see besides difference going a economic vaccinations XX% that until to they have wait Thank question. have such couple be traffic convinced come that I’m one. a underperforming. It’s will tough how would spas rushing

during the December competitors format new changed in opened a major short them but spas with airports, world retail. our and more and more world in handful and again services will they has be in then of and a the is, in November holiday other relevant new January. But of re-closed of relevant answer the they One reopening we a

able we’ll we’re well with lot of get a about new to path like new as that we excited where lot estate, our extremely be just XpresCheck. to the as of down access real We’re estate real do and a going existing leverage

Unidentified Analyst

were relates next apply the And as airports? receive Great. any expecting stimulus you it to? testing Did in and Did COVID question. the you you to

Doug Satzman

stimulus new any received haven’t that We the came. bills from recent

been departments. administration, the Trump speaking government the Biden and have administration with various and We

discussions want ongoing CDC further that think have positioned and interested they’re the We that the we their efforts And with and with we relate to. HHS. to well agency We to number have access we people pandemics. very are of support

to more So come.

Unidentified Analyst

the Great. long stay, Are And from not testing pop-ups capitalize these If more are they on months in open how why XX here few contracts? the to is of various COVID term? - commencement opportunity all to operations? near XpresCheck the pop a

Doug Satzman

So a long contracts Did they more let back. How pop-ups? months, few I get are are open that? XX me then the repeat why and the and not question all

Unidentified Analyst

correct. is That

Doug Satzman

Okay.

So in time. have. amending we simply existing an we’re instances, some our contracts lease range In

Some emergency use are XX-month provisions.

Some have rights to extend.

Some are three-year two- and deals.

We right dries the up. have all to if terminate of business a sudden a

we of with not flexibility lot have point really more open the major few there which often this targeting. a We we carefully and So pop-ups? airports Why we as have can answer. isn’t is, that as airport we’ve one much constructs. been watching hit are defined very a The leases negotiated

goes us it based airports more of back international facilities. that testing requirements, But have here, Maybe evaluation development developing at our what hub on remaining for will Some maybe the major stops these our the constantly further. viability XpresCheck travel some rate of tell up. and economic picks importantly, it gained

we’re have return on contracts, evaluating it’s and frequently and constantly make investment month our So we these for that sign so, even more when look the we these investments certainly or for run every that shareholders. a

Unidentified Analyst

Do Okay. a capital current Great, new seek authorization next to you we raise Doug. one. authorization? any And or the additional have

Doug Satzman

shelf. probably, a do, well, So, have we

Board It’s presents always exact capital, everyone the if itself. I conditions the of to immediate much think in has asked to been have right the I not answer. time we reserve aware. the question raise a think stronger Company arise now is the our fiduciary position made. they We I, because a and but do before. advantage And same I’ve decisions take as of time. opportunity CEO, is that responsibility the plans market when we’ve this to And

plans, again, watching. always immediate but don’t we have we’re So,

Unidentified Analyst

you, able recognize Great. how be to XXXX? first And Thank you in the Doug. revenue of half will beginning

Doug Satzman

I’ll ask my colleague James to answer one. this

James Berry

the contract In will that you requires time have governance able amount. collectability. now XXXX, based the XXX, to strongly is and on XXX of believe criteria. ability reassess the recognize we to customer contract it ability to and that be the reassess or pay against the full recognition not that the you and an the substantially And revenue were revenue we have has on goes that amount XXX, full as we to content ASC - called The outstanding under meet contracts time. that the Under with that, is able this we at it

Unidentified Analyst

James. Thanks, Great.

is question, location? Is next rapid a meaningful each across of the patient difference those stable percentage the tests the footprint? volume between so And there

Doug Satzman

Okay.

So two rapid by location difference one there location, of is between questions, is patient the is a percent then volume consistent. - that and test, meaningful different

They higher is - interestingly more traffic does on airports will have Lake JFK through. airports depending are Salt than Larger JFK. airport are That It’s City it volumes. volume. have lean hubs on. different humans coming vary. a the like similarly So less then And which

Salt through reasons because they did lot we there. hub City Lake the One a delta a funnel is it’s flights of and of

For airport, a medium-sized business. lot a they’re being of getting

to we’ve these we thoughtful be to place travelers and so investments the meet where most tried most the needs. And

So do vary. they

traffic some are are that went on lot of miss into traffic. different. say post-security. the see would of are We wouldn’t or And out pre-security, the a materially would difference, we similar. post-security, if we of wonder is we have And we also it, we I the material when that some revenue locations, a

to - shift continue airport. as about although Again, range, things hub from hub terminal to airport second and change And differences then to that patterns airports on can similar terminal So size Generally operate. many based the traffic in overall airlines and are the are of airport. speaking, we are the point, were steadily the several now, March. and we’ve tests talked question Right for was have for of to about this about, it’s I And seen up James rapid the XX% rapid think, And testing, QX, spoke is in XX%. weeks over QX one we actually at a XX%. pleased these then first there about it XX%. December

going testing continues destinations feel emerge not higher rapid antigen So a to to better This we higher a test the good and a it’s this Monday it centers with is to it our more up. that a to as now see sensitive line across as still On-site and trends and good. test right molecular JFK, pretty cost rapid we’re is PCR And move rest ID as another rapid in it’s antigen fall the launched think premium we because state. week the portfolio. spread in product. rapid next the Abbott test, but desired that Houston going alongside then antigen a seeing we’re margin announced that would whole week sit or to general it would starting is we’re then we I consistently or testing have accept with of piloting test a even rapid will for in launch test and that in just and And on PCR our likely and

little countries are some test. it’s starting that are there a accept expensive so of less And a to that

and of So you some can operate even - faster. them,

shifting only by to have FDA authorization and sellers our out EAU putting it. dynamic the business learning that protocols ones are adapt to test we’re and the So the the with are the we That’s developed that environment. our

Unidentified Analyst

you volume you, differently Are increased? management different Have Thank dayparts? as has airport fee hours Great. the you Doug. expanded What monthly operating location? per staffed your new is as passenger

Doug Satzman

Okay.

to if careful days we in have getting we some business. week all The a this medical hours. others our we’ve and operating week. to days practitioners and that seven task, in airports a the seven expanded wasn’t were days started And a of running before we much the in running is assistants we’re week them there back, in and week weren’t and to operating have move The a very reason, labor fall, the we as getting five people So, as they’re seven fall questions was now all traveling, some we’d busiest. nurse is operate like to an days that because when there. are it been think expensive Much them

So invest coming operational travels to going these to very careful for return we back, have we’re our labor it. as a get hours But that our while expanded we’re meet needs.

pretty eight the you does necessarily. valleys, peaks the and the airport. eight way all have come then it to day. flights people think and at off - of for and be different model because and could when hours. consistent airport Unfortunately, they also Even you clock there’s in staff hour asked though about hours times it’s X.X the do hours drive differently, six not X.X on out for is no super slow and six can’t for we I really throughout day. No, the People two or hour shifts our time a send staffing busy

thoughtful how necessary look with of as number we labor to So staff manage have is actually the And our be to labor. that’s the ensure our in. we’re well with coming at we that initial assumptions to demand on need we our continuing

monthly fee per the last the around the question location. new was part think of I management

a data. have of that we amount now So good

been Some XpresCheck our have months. like of nine open

Some five open and months have months. been four

coming our during We Christmas, but and also slowly but while contracts, anticipate eye management have a the we’re can labor credible the Thanksgiving staff we traffic MSA trajectory that’s to passenger now again right-sizing we of expanding labor or adjust traffic volume peaks of maybe keeping traffic and other the even that’s spend better fees back. our had with with an efficiently, so there, than our

I all got think I the questions there.

Unidentified Analyst

Great. Okay.

only And environment. the so relevant to address with services and wellness audience? do passengers travel captive a outside they would want you really brand to interact why health airport Are one, think needs the if their of this customers as next airport

Doug Satzman

it’s providing wellness be paired multiple I will looking customers we’re services the to question. the in now for documentation will just care step and them be about a customer think on will using think and Right that a is if you everything this a return access -- one to with with developing sources, invaluable new place travel We need and unique. as planning, airports. another travel But that I tools responsibly. and of will believe in in sitting not returns and services are traveler all inevitably they that to want to to help begins world safely to take These airports fair possibly people do mind. everywhere services them apps. captive audience and and health they be includes concept travel site believe and help We peace multiple back

Unidentified Analyst

Great. you. And breakeven? Thank expect would when at Okay. company be the to you

Doug Satzman

for one’s I’m James glad now. you. this James, have to

James Berry

Before I answer there. all the questions

brand we’re time. While we the introducing guidance providing vision today not at this are new

question, didn’t yeah, So it, that I’m sorry, Michelle. give we

Doug Satzman

yet. Not

Unidentified Analyst

time another senior will very likely be And why be hiring to now that right one, is Okay. expensive? the level people

Doug Satzman

will adapt model things in that strategically more new relevant with an and done have XpresCheck new evolve and Well, concept in we our bringing investments past help surgically XpresSpa concept. these us expert making that and executive a are our our into the

in we’re that and they’ve the on of we have an they people as hired bringing smart immediate in. come each really we’re being So lots impact but haven’t made leaders like

James Berry

Sure.

Unidentified Analyst

that industry have so are And What you a to you tech confidence going don’t the tech Okay. forward? background. fit company a lead right you then, gives

Doug Satzman

I either a I didn’t a have joined. medical background don’t I Well, have spa and either when background

yourself the that were we a at has space that of executives amazing in ago. consumer surround We the been technology a care He urgent he ZOOM+Care, in brought of digital with He whole CEO, for of has to our to his Nike, senior then the this it’s David lot we brands was as has powerhouse one Kohel. experience which the Pacific Chief was talent the regional is the consumer leaders ability execute. speaking the fantastic. a a named was years one early career. Northwest He and and And gentleman and of at telemedicine important executive with Officer. hired CTO and developed in in working brand Technology As

and and We’ll soon and buying companies building brought model James assets. in very reality background P&L has some to this the some future. here. where that’s be in partnering -- the helping has why coming David’s assets us a again that architected and bring a strong we outside So some future to is model hopefully have a has be He we’ll plan the great

Unidentified Analyst

a COVID Okay. XpresCheck Great. Are haven’t why and when? yet at gotten so And location. getting still vaccine you the it you if then

Doug Satzman

different So process doctors in get to order state-by-state. the and application slightly a has vaccines, to and approved procedure. registered need state your Each be

our are doctors our State, of admitted but New clinics doctor in to been distribution vaccines. doctors has haven’t or they approved York process support All in batch of to example this But it, for now. the do of next the

the the letting in demand many I starting of distributing these the possible. struggling but supply have not as to we’re get as to to till I’m at on the hopeful as that so been now site So lot approvals like them the to, vaccinations the and in will writes to go states not all maybe that will vaccine itself, with chain of we’d start many the others doing the XpresCheck which getting start see. supply in vaccines, locations, chain a they’re relief understand get of up

then be which need, the see may many, starts demand ago coming. we to the that. employees months not we this after we anticipating where having started all expand it Our need many just may it and will but licensing with the that or focus the employees in is, airport airline public to beginning and We

Unidentified Analyst

more, Great. Doug. partnerships airline one out do have And Thank you you, Airlines? then similar any other to United, and Hawaiian JetBlue rolling

Doug Satzman

international driven carriers fees other to. carriers of are by often a them we’re There with. with to the destinations some we it’s It they domestic where have requirements. have changing often relationships. relationship extending talked have these depends Also speaking destinations We major international -- that about

Netherlands clean Newark big we in PCR also hours we and The three when said, JFK example, Netherlands test in test help got good airlines them called The rapid okay, to before by Boston. boarding, and So isn’t need when it’s that’s four enough a

on safe with COVID So announcements that material time guys testing drawn crew kind free to releases. passages We these time, on these comes through of to. We it’s up. these often are aren’t work but talked necessarily press

services are again. people traveling confident a offer get we and airlines of use the we and So range airports a tool that sell and and to tickets

there’s or So, but deals nothing signed. more, yes, new extensions announce can are before I

Unidentified Analyst

what the about to you’ve CommonPass question, London like then spoken And happened with air the that last or past? bridges for places Doug. in Great,

Doug Satzman

Yeah.

really I So when a these to change good careful be example. this often. things is because have so speak, I

this but the to we support coincided lined of we like a So two and this sure airlines Transatlantic to with were infection rates thing, U.K. London flight it then timing in have the was felt up a was increasing actually

restrictions reduce So have they U.K. were They to the that they the arrived and people to protocol on just plug some the on the they British the Government in pulled said, going and would maybe then testing when stopped program. loosen allow it. quarantine

Unidentified Analyst

Okay.

Doug Satzman

increasing, because Understandably constantly neighboring or complicated and travelers these hard up, start-stop are to government, it’s with. falling, watch a why start-stop, vaccination correlates as countries that or the so of -- for directly and agencies in lot quite rates it this is This infection it’s sometimes infection at the all rising news going rates cities is often destinations, times. we rates live

so that on are to risk travelers thing into together we’re countries uniquely positioned many help lower are places. there it concept put is site. a support airports to airlines that So at still path air again, feel a able And to bridges to and go these

Operator

give closing That’s today. all questions if to the some you’d remarks. so we Doug, had just like

Doug Satzman

things assembling it I’d wellness. this in to on shareholders are is for and a thank deliver exciting make Okay. see Group, we the have that early to what this. health XpresSpa post-COVID like their this trying be this environment. me leader business that support. Well, positioned is will with coming world space that, company changing figure in And Everyone neatly a join hard team a team lot out sure to of and in relevant the everyone to trend an In will look we very management to we’re clearly and to our like working to travel a have emerging past, and the we and trust

though program. and So about it’s the great we even very there’s uncertainty, excited -- the future together but putting we’re can all doing homework a

So call you time, week. for thank listening and your great a have to

Operator

conference. This concludes today’s

your your enjoy and this rest may for at Thank time. You the of participation lines your disconnect evening. you

XWELL (XWEL) 1 Apr 212020 Q4 Earnings call transcript