XSPA - Earnings call transcript Q2 2021

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Operator

Good afternoon. And welcome to XpresSpa Group's Second Quarter of 2021 financial report. All participants will be [Operator Instructions] After this presentation, there will be an opportunity to ask questions. Please note that this event is being recorded.

Now, I'd like to turn the call over to Mr. go please CFO, Berry, ahead. James

James Berry

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

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

Douglas Satzman

(ph.). for Thank taking this the Hello, you James everyone. Thank us you, time to afternoon. join

investors, especially given retail our past for you've of all the our including all support appreciation institutional to deep Before year. we I'd and express over like begin, our shareholders of us both that for the

the in to are shareholder aligned for significant future. everyone goals we look create Our and value

We compared quarter. EBITDA loss XpresCheck from is the segment. indicative prior-year down of million million improvement profitability second including net during we from Adjusted expressing and X.X X.X of the narrowed revenue are of our to to Let second legacy with $X.X the how million, by financial pleased the of me our XpresCheck, million The X.X million results XpresSpa generated in quarter. begin X.X

future. We the the one short-term and the highly cash narrowed clear from that business. liquidity see a our believe the XX.X We was million future. I an also X.X Spa considering of view a on uncertain high unrestricted of want we be the to airport that balance million. strong XpresCheck million a with of retained we as $XXX.X net business would new future nature personal to the loss look position we bridge At touch point, believe to be to

health sole it the and We to the also XpresCheck believe the significant that services no is XpresSpa for digital travelers adding most while and be expands would and the combines destination operate we limited as units. so parts longer wellness of Treat relevant where revenue engine airports a

bigger a analyzed, have that customer see future. opportunity We Now, and much sustainable now three The experience views. this collected based during pandemic. we data on models we see our business and the for

week in and across transitioning of of what brand simultaneously, Then efficiently, health, Centers, the multiple in are travel XX Seattle-Tacoma in a we to opened in to second X long a International and X Operate Airport of Company we how XpresCheck on Airport. XpresCheck airport-based enrollment singular businesses. wellness the profitably, have on days we -- locations, airports. operating opportunity and a our and currently I share that we from us. brands a Today, to space. to runways We we brands International with travel, the the is Treat, Wellness Francisco you XpresCheck XX intend San first April, XpresSpa XpresCheck a relevant a lot with ahead see relative We of will concept, family and large now I brand, we to new the respect health thoughts with a operate would believe our where take Beginning the stand believe potential run. like on over some capitalize

opened that agreement airports In last agreed first XpresCheck the F. Airport Airport. have extensions at two to been fact, year, in Newark International International John and we've Liberty Kennedy

at March recall, our major of XXXX, opportunity airports. results We and onset may we extremely COVID-XX you due testing with all quickly has XpresCheck vaccination even saw we the piloted, the on the pleased pandemic as moved learned, in launched. brand the we we XpresCheck and to we for the Since vision rise. the very As U.S. expectations for vast rates of at we're surpassed then, have for

and increasing and patient in the necessary with testing vaccination the future be burn. cash example, that outside when in breakthrough tests antibody has year. for employees to infection expensive on-site the important arrival. and with portion to $XXX service still XXX% higher we as COVID requirements, passengers offer now testing $XXX minimize substantially most test benefit countries gross that continues this rate, factors, we're international an a considering an of We a meet with. rates. Quarter demand, For at the International versus of compared including XpresCheck initially was believe world now the tests airline unvaccinated, to would PCR do further, simply margins current time much are There the changing rapid, COVID-XX reach maybe during countries for in the -- and launched see more the vaccination Journal COVID-XX additional vaccinations. a where not the of remain to Friday, Almost levels, helped foreseeable test supply. at booster alike Street Quarter, to continue due policy is significantly prior PCR wealthy risk. past many First we near COVID-XX and and sequentially exposing ongoing $XX future, U.S. Second are and to base point test this all even global Wall variant proliferation, require increase this stability monopolizing or price citizens the and adding are many high which all-time will out that which travel to from the range an standard not our improved patient XXXX. to any rapid article And We represents According blood also significant global our countries the their several of of enough the vaccines to until

As significantly it was year March flow. a to all transitioned a only our reminder, of which for this helped model cash fee-for-service when has we testing improved

time submit on service, The we all upfront faster testing testing much to then patients they expected. able business reimbursement pay are the their Now, than of ramped for their fees insurance up has at and own.

seen almost practices first was triple revenues Our quarter. XX in over saw the in medical million QX, what

vaccines operational cash only to of choice, this creating our months. Scott investment worked still return People of labor -- Culture. under dedicated have was Performa future. quickly foreseeable our The July, any Give promoted sharp operating under in strategies X and At with ensure has requiring any diligently business, to the to only Go and a our James than operational ramped we funding continue Health that late growing grow confident Officer. faster while partnership in One Berry, Milford the of will and Scott Scott Give continue worldwide In to -- we the an campaign CFO, Go and COVID financial hours our generation, XXXX, the by to our announced new implemented is the are the while the four-wall productivity World has spas, on profitability. of and a COVID-XX when the One yield focus needs brought other testing reduce of gap. employer the over terminals those the initiative fight file our campaign. to we that to equity but Foundation margins the We those created part and in past execution testing still Not expand in increased vaccine Organization discipline, are faster have end Chief Operating the busiest on meet

As a of public campaign, is matching an $XXX,XXX. the up kickoff donations aggregate to to XpresSpa

campaign in to lacking to against those fight lower-income for vaccinations. are in COVID-XX We this honored incredible countries the access critical support

for opened the which incredible continue grow up health the future. investment door to Our our of hope customers to and the in partnership, wellness has this in we

received program federal Prevention, the variants remember will government of is start existing from at over contract contagious Delta in and variant surfacing is that JFK with X-month and Disease Airport, highly surveillance the Additionally, our including Airport, the surfacing for airports: approval International new and is could COVID-XX for one $X a spoken those the you a Centers with conversations. the aimed past contract and X the last outputs the San other variants, that many X-week U.S. CDC CDC I an at identifying International new tracking Liberty bio that with year. This about This of we Newark for Control with the Many week, efforts Francisco have million affairs Airport. International government

airport Let this in regardless X-month there's to Direct of all national allows CDC in operating, XpresCheck Whereas estate requires to for an is by the to concerns. national basis. ability real the the or installments the airports, bio me up fully XpresCheck current incremental safety surveillance any be XpresCheck, the The in real access a set clear, on at has how place whether estate extension with model used with X-month airport program, place. contract CDC of their airports the dictate funding grant to an airport in to discretion

flights. this X-week pilot is X commitment targeting million $X daily first for across The X only airports,

with could because select countries direction. -- in many upon limit specific incoming be XpresCheck primarily at-the-gate is to CDC's we're from might to being not capacity by number testing starting the be The we developing interventions elementary XpresCheck what incoming a being protocol developed swaps an passenger of directed collection typically a the the for programs. easily arriving have can some external rooms. the implemented flights of out is from and of flights developed There concern. While beyond program facility a labs for used future testing we're any children sends self-administered to in is program And this India, similar school testing with port testing that program that COVID that to includes airports the for various

we program as we the this significant expands, see plan extension foundation will to learn, of potentially to government launch. pilot, As for in a business with look will this and the line Again, place. XpresCheck, we contract we

XpresCheck we testing, disease on in the confidence aims COVID-XX the get in in relationship the with for the U.S. of passengers out U.S.-originating government administered further second other a brand. passengers faster of the JFK protocol hour near the test signed pilot negative for in significantly of future we people flight have with a here to also travel, COVID-XX future. Jonathan with agencies, If line El we PCR may seen to after then customers U.S. all stay on international Airlines, and the in agreement new COVID-XX to foreseeable major its Israel. CDC, Airlines these early into today, for Israel daily of COVID-XX crew travel program airports arriving and International another at than provide location. April, are will XpresCheck sitting infectious with XX+ in Airport, of place antigen the in all The the El have arriving in flight, providing to the once XpresCheck flights collaborations International the learned, airport -- what extend Al and with airports Rome, in testing. let XX departing future other CDC onsite XpresCheck we're learned, then COVID-XX is alone like PCR launched before free to Again, the hours agencies Al, from U.S. every testing from airline for airports. a and and pilot the from traveling and Delta State Based Tel and and passengers continues administer country demonstrates Airport Our the this from the test with is on-site an traveling PCR and we U.S. for internationally program airline COVID-XX out Kennedy August, other select rapid from testing released the rapid being Israel. test within work a Al national of Gurion an Milan test Israeli successful launch. Moschino to International passengers The crew requires multiple El In testing, several Malpensa all to piloted, In airlines we COVID-XX looking other and the -- PCR airport. Aviv. and passengers traveler the queue

we Forth to are order D, Xst, Airport, busiest include to top-performing July On business. during Douglas Concourse manicures, airport In start International the X Hartsfield-Jackson, locations hours, the profitability services, to turning which negotiated International, concourse Airport, these International historically Now, XpresSpa These and Las in only highest and McCarran Vegas right performing X worth Concourse Airport, we Concourse maximize Atlanta pedicures. and in A, reopened the International across Charlotte D. with A, our these locations. spas spas, massages, Dallas operate

we've As Austen opened locations Bergstrom a UAE. already International XpresSpa franchised Dubai a single our Airport And the location at reminder, in International X Airport. in XpresSpa

We our core International also the and wellness Dubai locations expanded to hopefully brings export offerings, -- Airport. new focused treatments us operating. this on prototype expanding international wellness winners on a XpresSpa on International domestic date, concept June opened up and XpresSpa X U.S.-- businesses. existing an to is To currently into XpresSpa XpresSpa in international reopened XXth, testing July This technology, in new

sales U.S. locations rates, better even than revenue Their own has not we may are good X the the levels. gross while or structure. we believe we in the in have despite -- benefit corporate news the As profitable in days been the rising generate legacy XXXX run airport on the across as -- the first traffic vaccination Xst. leveraging performance overhead support other well Xpress with increase and The that the today we the of lower measures same lower operating high-volume profit on of past, legacy XX business baseline, can implemented cost-cutting X while previous corporate is, brands, as it XXXX, spa we its highly July sharing that opened margins the analyze same the with of

by to the the the pre returning. -COVID been to continue annual at have is million restoration enthusiasm reviewing see service to team re-openings. currently during to anxious service to We've economy return, XpresSpa -- of We XX profitable our of upside -COVID pricing, We the significant the reduced piloted travel labor continues hours and and -- for model, traffic especially spa rates a early now vaccination reopens. times, and to beyond model, in the the airport find and high-performing business We further business services wave busiest with efficiencies XX operations s operating Our segment airport's travelers. flyers as past. model as airports X next revenue plans of open XX business of pre in of the fall increase

learning. are We

are We re-launching.

reactivated. as continues Portfolio reevaluate to continued well on review airport as month-by-month learnings each We a will as basis, our continue to be

let's new the Treat. Now concept travel, brand wellness, Comprehensive that discuss health, the positioned and for is our world. post-pandemic

Hanson multi-channeled started coming in leverage we this has way XXXX, to refined business XpresCheck this Through in travel executive and moment a to provide with margins Kelsey to connects sessions has digital a new access collective Communications, team, with with personalized division singular of experience, modern reemerging or larger services a our who technology retail While the is The XpresCheck on-site timely design return it leadership to as a XXXX. XpresSpa historic with brand, history, business over wrapped runway these found in time be SVP revenue to early traveler. beautiful XXXX, integrated team's healthcare executives, XpresSpa healthcare time. late take store many thinking, travel, in in Treat market better services. of our new gross a and of planning and lifestyle and than today's (ph.), to in been strategic through record travelers have this after that wellness and content one to Marketing of concept expertise brand by advantage a

safely classic need do People traveling need to a but it want want to responsibly. and to converge. to We and back have get

prices. not building an people, average We for brand, average at are above-average

providing as new a to telling, plan what healthcare. services open. well story concierge, health concept all towards and creating wellness virtual be on-demand travel a mobile care appointments to worth book as view original health-focused act Treat and wellness working and Treat is to a a talking will contribution place, medical as services. passionately creating, in a you with to worth loan emerging return wellness travel worth as one are and personal content of as travel positioned we about. help as We able to to be leader travel, category and will XX/X A they on-site our app, real-time as as medical in with travel. COVID-XX your global Through wallet centers consumers, travelers records, access requirements well Treat's they in an

traveling you to to be out the to in Our be new goal is for you as of To we're easier a distinct world. making ensure Treat seamless return champion, this brand, travel phases. launch X it rolling well a

Treat May, our launch David we www.treatcare.com, the work our hard website QX of access to living call recall, gaining resources brand requirements Technology target is and Phase Chief wellness our travelers, initial launched Officer, new lifestyle. savvy this targeting the traveler launch with the officially Cole earnings website content, met The and e-commerce on a to announced in about brand, the emerging on would daily. in We for Thanks website, XX/XX. If (ph.). products campaign curated of The and COVID-XX new features traction you One website our June. original

rate. X,XXX have newsletter. XX% website to -- XX consumers readers The a allows unique thousand biweekly XXX,XXX to The has with treatment, in average opt-in an started to over over Saturday visitors. also morning which open We

If for it. enjoy I signed on you've not treatment up treat the you'll care.com, think

issued X this As seen phase of the in app today. mobile Treat's release morning, press launched

Over track by report last care, as mobile is team's alignment I'm with launched and the end was access have we charge smart led provides to access test travel and to goal call. and to care, our summer Apple available, and The communicated the virtual a this devices a subscription X check work and for be person's today the with happy and include in to by and months. at time, mobile Memberships our scheduling to no app available membership through the a to at PCR begin Our mobile vaccine for app started Memberships running locations few that will earnings X of internal offers care, up added to included free other on per capabilities COVID-XX on $XXX for app, there including months is test, weeks. as start ahead will medical once records such on-demand in-person Android on in be cam video airport schedule. a results. are can added app of David, and or XX which on-demand centers Unlimited free wellness Also medical which plus access be discounts prescriptions, shot the $XXX year, virtually. XX/X open, discounts. X flu exclusive additional

and vitamin location in Again, location. Harbor travel will in a care, this a hospitality existing Now care, vaccines, the across Phase treatment XXXX, International and specifically in a terminal real wellness offer entering, location rollout areas. will of moving centers can our retail list wellness allow as of Treat that pilot Phoenix additional holistic spaces. designed seamlessly starting which leverage new a the Upon X, real premium as Treat second construction location, well building from sessions, pilot, for XpresCheck to check-in X Airport by and prescriptions, XXXX, well be We onto estates break provides see intend services brand the integrated technology-lead importantly, Well-appointed airports mid existing travel before take launch many in environment private beautifully Airport sessions, Treat airport area plan We're our Treat mindfulness a of holidays we will in as in rooms and at environment. curated such includes will wellness access Wellness lifestyle. converted some open greeted we're first offer fitness, a launch. the wellness and centers airport into yoga, one Treat fit travelers. converted Most customers JFK XpresSpa testing, and a which COVID-XX will week XpresSpa wellness in -- pilot and a and estate. health airport hectic including leveraging in both coffee therapies, QX health anxiety and the to Wellness the as learn, and meditation, services centers, Sky to and IV shape emergency we as JFK we

both we wellness is digital and significant not more profit, and retail we provide anticipate our from captive term, the well The offering digital the up-stream wellness envision a will operator to through just is technology-led we the travelers that as channels. estate. XXXX, health, Furthermore, long-term and in everywhere And In be provide than success that this revenue are of data will monetized stream an we subscription-based that and and supporting believe e-commerce operates in This that content can through health and revenue, in customer unparalleled for airport airports. this Over long growth through travel, for services tools transition Treat's achieved affiliate multiple wellness. profitable be channels opportunities also curated convenient Company care channels. because as customer real revenue infrastructure operations airport for building habits to coming and with airports.

X are the now our to leverage While healthy significant adjacent this global corporate see as a new the for future also excited as brand relationships unit-level well and economics that to sustainable while Group, Treat each as efficient we XpresSpa growth and airports. central structure, is the and other we there in operating brands. run opportunity of can believe pillar about experience

have expanding the brands, value we vision airports a being ex inside our to XpresSpa for clear increase elevating have our products an extremely services shareholders. and outside We -- focus all with the an further Company on and for nimble,

brands over team long-term months, is recent today, last laying have of We I'll The of With will ahead turn expressed As value by our to the loan extremely while Company. for QX already James. global which it enable that, QX assembled announcements foundation best multichannel here portfolio in and days for as seen X-X enhance developing come. are and shareholder and to contributing us us. an build this management that you, as results we I years believe our the have the success today, also health strong to of

James Berry

Doug. you, Thank

very we have the at pleased mentioned service ASC been relative XpresCheck management XXX. based the during on to first quarter, reassessment for were last recognize to to agreement able quarter, we a revenue As

total opened partially opened or to -- quarter. able able the Turning the majority not were will million, of note on compared July totaled recognize the associated the of quarter, In remained for locations in of second the one the the during wholly to $X.X in a second Please revenue a Wellness to the revenue recognition year. to XX-XX Managed we the fees center XpresSpa the $X.X be recognize prior during the last third X that $XXX,XXX, X ASC opening million Xst. primarily revenue in second were compared XpresCheck revenue requirement quarter to recognition quarter, The meet of with QX. a of s service was quarter, we Only the increase quarter did closed. XXX year. the due centers to XpresSpa the from in

and and startup associated primarily of compared We revenues Dubai. increased approximately and XXXX, sales to respectively of rated reduced from litigation additional the compared benefits revenues. the related also $X.X the year, The and locations the $X.X XpresSpa professional million our resolution to in in rent throughout salaries, due primarily higher cost-cutting generated related rapid a Cost the Net in Operating losses million year's year-ago due due X comparable with revenues the the to and prior-year by million in to million associated primarily on received the revenues sales to the common in a occupancy recognized the XpresCheck from the variable was increase to most to costs Second decrease warrants of and to in encouraged options, legal -- instituted kit, The variable for in in Gross costs marketing conversion from concessions for $XXX,XXX the from was the closed XpresSpa primarily prior strategic attributable million a increase agreements the cost of profit of compared development Second scrap $XX.X shareholders $XX,XXX was and costs compare $XXX,XXX Quarter, million costs of negative decreased test the Generally, and and XX.X by fees with second notably XpresSpa offset Quarter. products $X.XX related fees. and from locations to result operations in net $XXX,XXX million in to certain revaluation shareholders quarter, $X.XX million, $X.X XXXX. of sales Gross airports. XpresCheck, to to of loss of attributable Xnd to matters, profit of services related period. to a the sales million prior quarter. the Treat, partners to initiatives, realized offset decline was with were was in loss [Indiscernible] loss of to common prior-year decrease due higher $X.X minute $X.X in expenses control in occupancy, as cost

our taxes the in quarter. useful to Adjusted wellness excludes X.X year, EBITDA business remains million amortization loss a XpresCheck million depreciation, On X.X liquidity XXth, consider and compared it Finally, totaling assets. of performance and operating of of be that $XXX.X basis, equivalents of our believe prior Adjusted analysts to loss indicative interest the with to investors cash compensation XpresCheck ended respect improvement Adjusted non-GAAP for core Wellness stock-based cash represents excluding adjusted of XXXX. for cash are second EBITDA not Adjusted This indicator impairment, of and analyze their to to before adjourning XpresCheck. strong Adjusted million Centers. We important million, an expense, understand GAAP and core EBITDA disposal the we EBITDA is sector. of In as transactions for believe Redefined that particular, investors always these transactions performance related operations. which the primarily X.X of meaningfully EBITDA of operating our related certain our allows cash profitability We an June financial, to to with that so activity,

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

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

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

quarter day. the testing more Xnd per XpresCheck all average patient Centers daily was X,XXX volume the During of for than Wellness XXXX, visitors

merely Notably, QX XXX open, centers total in Xnd XXX% per First revenues, versus additional the the rapid than the QX, day more to Quarter. volumes number increased grew over in day per XXX a of COVID-XX tests XXX patient higher-margin, With just in from XXXX of higher the increase. Quarter

higher tests, as tests. averaged would was of tests, MPPR be During XX,XXX managing take Total your volume those and rapid And revenue happy rapid a including XX%. to July, over total percentage I patient questions. COVID molecular with higher that,

Operator

Thank a may you. questions. with this Michelle At now question-and-answer conducting we'll session. be the time, (ph), you proceed

Michelle

you. Doug Good thank (ph), afternoon, and

have, that medical in The second the did revenues XpresCheck reconcile as quarter. practices 's does million you first million that XX in question we revenues recorded? the mentioned How X.X

Douglas Satzman

this to turn question to going (ph). I'm James over

James Berry

fees service collected patient by Well, the the practices.

that top those current, there, past, pay better levels about for understanding and medical current charges. activities to information provide the addition at In used they're paying that MSA services a very level. of is we to provider's The future of the to practices give

Douglas Satzman

number the end guys. too not it. jump And I'm unbelievable, And was in this XX going million, to XX. is the of on

been. we more are through, As still, rates don't lower ever in it traffic than today not is the the changing yet relevant relevant up. going is rates has than vaccination are coming anywhere future. testing at near that's of pandemic. the see height And it look the more you still -- Infection

tests. to travel going are up, continue more As picks countries requiring these

So, have. it's the the important year perspective. and through that the for we're in business compared that looked these revenues to like understand come through of excited us rest a and very from because of QX, fees demand the that's when indicator what coming It the runway away the blew the saw QX we practices to that's we

Michelle

on cash the a balance position the XXX question, to Thank over in. you, of Company Doug has sheet, (ph). Great. The next great million be

are of However, you cash? this use efficient to make how going

Douglas Satzman

James?

James Berry

top our stewardship is Well, I of report of cash buying. that would always

funding addition and exciting essentially continue so stock repurchases. strategic we such business that evaluate opportunities including dynamic, transactions, segments stated that we've to as and Treat In acquisitions, to new are

to So, there gives it of an you're a take money. is we flexibility that making it capital. very seriously It's great have that return on on amount sure that in is that that right, but efficient us, it

Douglas Satzman

emerging on tag to visibility too. going concepts. a lot to getting I'm of We're

be world, accelerate other with companies, good to strategic what the this Treat world's offering. some us with we're partners well-suited that are other ideas, of are As doing amplify in there and we're services to changed post-COVID other the that

and sure so, us James steward than is bigger cash it return to further in wisely, there being invested good offerings And a purchases. much accelerate of the a a just benefit But new a some for making contracts like our investment. of and is where strategic said, on our value

Michelle

especially be employers, go to see lot any a work. will to There's who of able saying municipal employers, order them weekly this test a vaccinated employee in (ph). Doug not opportunity an to from Is has you, you XpresCheck? been need COVID talk for for Thank Great. that

Douglas Satzman

Absolutely.

as But this been to a to seeing like we've going the That's testing. of require regular now new we're more investor talking somewhere. municipalities lot we've norm for settled asked. go So about travelers just testing, into

And We've to a peaks. opportunity we a protocol an to be continue is to of in clear and line XpresCheck just business limit us the there don't the airports airport. grow evaluate that So, built opportunities of have to broad already to large can provide testing number outside for services. handle

Michelle

estate? near that the Doug the Thanks, decide to rest with term shortly leases in you your will many expire will on those go-forward the How have do real for What Great. you of (ph). locations? path

Douglas Satzman

you've So, demonstrated A you asset. an RFPs in are and Literally, it that we the a that extensions. continues get we you're the easier XX-XX had of and pre-pandemic. real airport XX valuable good once to in stay it's the and estate be took to us but locations years airport operator, a to much have very get lot --

that quite doesn't end by the offer, Treat, of cut, I the we're and as of things other the to down best real your the maybe extending concessions is features is suited state, could and to or And at government it things Often gives estate that funded XpresCheck, terminal, well, seeing EPP lack an rent some being an opportunity, about, are or rent small that for XpresSpa sales which the before. an you airports is make of kiosks more a them of of now, or getting by be one we we're were the COVID profit the may anything, are that we offered is business. One reading XpresSpa funds with it so runway think often term, concessions be because spoke the as other couple a evaluation, to it come of highest they worked federally cost of term. can dollars, airport more way operators and a their But piece reopen us But there the these whether -- airports.

Douglas Satzman

busy before. important going XpresCheck very the under wasn't under airports we'd it to us more a more at frankly that It's estate strategy. magically and busy No, even operated become our be X in. contract have contract never very least in got we not real very part real now. of But It's estate

Michelle

Great. Thank Doug you, (ph).

What choose two made Airport and the John Sky as For the next Treat question. Harbor -- Kennedy locations? you first F. locate

Douglas Satzman

what want much. you ideal Wellness talked for think Treat this are our They I've asked. we really don't pilot Glad centers. I to with about

then tell it estate, and New the And XpresCheck, a of Port ownership been Phoenix one piece in Terminal a of important we access Authority with York JFK, is us. you another of in The well, world. really good has JFKIT us very terminals, now and X for of let about is great also, and real JFK about been compare have also XpresSpa has Jersey is what New Terminal a great portfolio. has what the airport our been where management touch with preeminent to The with Treat. outstanding But me we've JFK very one done and think partner X. So, Phoenix place, contrast. an with just in supportive I like

X,XXX York, West feet, square is post-security. is is Coast, One pre-security, other the East Coast. to New other location is maybe X,XXX one the one So, feet. is square is One close

much and to disciplined you again I've build. That's and where, So, data we approach this from, know, used learning, since inform, very we to a again, really the success get to we next to have again that inform see a good learn XX, here XX we've rate been take the we Company. methodology And and at launching. we and find pilot, as higher then XX,

pieces very that So why have estate this chosen. fall. convert of we open get and that's And we good could just real had we easily also two

Michelle

hard and Great. you're to your there shortage Thanks, a Doug. Are you seeing? it Is labor XpresCheck staff finding XpresSpas?

Douglas Satzman

a people people, are food our relief to expires And you our a as airport, -- There absolutely you're federal state in and it's are to team HR a unemployed. for delivery with is there -- starting get, side Scott medical find can so Milford but -- have you driver, very team up. of strong is (ph), whether it's his or it's worker, an the labor medical us a generally but that service recruiters We has who see shortage. funding we too, -- the work or to staffed. HR, done loosened a his competitive an excellent that COO, was kept career those we promoted background The team most be challenge in techs job.

good into our And it of And centers benefits, it's lots do. good testing so part But working. what far. and for that urgent eased to for vying big But having a of Scott challenge middle labor that's that's fixed of were management During hospitals to takes the care attribute care the and good I all pandemic, has up pay, population. really not and been of people. I a us height brought

Michelle

final Thank Will should see we to you, to be new business? to Treat? in my an Great. able personnel-related G&A question, support increase current Doug. expect And your this

Douglas Satzman

good a question. It's

So, very add we careful we talent. being new are as

to the talent strong some look we we then First, have internally, talents the to we not And may that go outside folks have we been who bring promoted. at we in very have. of some have

the this leverage new we our cost it XpresSpa, this with have. of distribute, ringing, balance cash XpresCheck, the And registers of of income the really we we're more have and good burn business, to corporate more dramatically going team to fortune reemergence changed with sources have has As we which situation. that

supports team of leadership senior our all Company. the So,

Douglas Satzman

brands. Most the you of the all as three people, through go organization, support

by you being never benefit -- a is you're the redistributed accountant, now recruiter spas, not frankly, these are to but had. was starve the them. growth. the also able Then I'm purely corporate for to different All it with being businesses. XpresSpa your paid careful overhead that's or support an If And growing

businesses picking you mistakes can reach one slowly So, speed. your the make up of and is your This so this potential. one that Company is staff -- three never these

So, expense while centers distributing we more while are contributing to on the of keeping bringing on revenue, talent we overall rate need have these and an as costs. we eye

in pandemic, I true And the So, practices bringing got in I falling have when tell leadership place. sky Xst people was believers. the the really the that took with feel in team, some we good to the you

to easier much it's hire. Now,

Douglas Satzman

of that get at we're women very We have And to XpresSpa these position. we're group men under who bringing lot working in. to people this in and be a love pleased would

So, it's there I more call. we're QX, think and -- deep and been said sharing awesome I forward earnings more question? into at there look what the quarterly are our last to QX an Is doing news questions? we do, any you next

Michelle

be would for That you. Thank it today, Doug.

James Berry

and in hard traders long-term investors any of just very thank our between. institutional reiterate The We big of worked and or our investors, Well, investors retail want and Okay. customer. that's our value. being or that I not to are a and to necessarily the create men mid produce out, all to day women you in

revenue is with and brands, that Company a into building getting are streams multiple just We outside of multiple growing we're airports started.

thank support. for your continued for and in you calling So,

Operator

presentation. concluded. you today's now attending is Conference for Thank

You may now disconnect.

XWELL (XWEL) 16 Aug 212021 Q2 Earnings call transcript