Earnings call transcript Q2 2023

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Operator

Greetings. Welcome to XWELL's Second Quarter 2023 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded on August 14, 2023.

I would now like to turn the conference over to Suzanne Scrabis, Chief Financial Officer for XWELL. Please go ahead.

Suzanne Scrabis

everyone. day, Good conference operating XWELL's review second our Welcome call XXXX results. quarter to to

on Scott Joining Executive call today's me is Officer. Milford, Chief XWELL's

Investor found to the We release of today's website fiscal our can webcast site. at Relations also call the be located link have our our section A year www.xwell.com. conference of on posted on earnings

call statements the those for opinions factors of known need variety year to for statements. contained we filings, the turning our we forth Before that well and following. made as such the forward-looking including Litigation prepared might other Comments that from his uncertainties. from in report suggested include Private the forward-looking assumptions XX-K XX, file statements SEC. a call materially XXXX. by Reform time over remarks, based on or differ and the the may on of those reports risks meaning Act Important and unknown in today's you on periodic SEC ended current involve with current within These to of as our such contain are December may Scott Securities that advise forward-looking of cause differences XXXX, set time results to Actual Form and

I'd the With call over now turn said, like to that to Scott.

Scott Milford

our EBITDA-accretive drive conference Hello, and our everyone, with and profitability revenue had future. in will honing acquisitions towards We call. earnings productive business, that help second for a quarter spa joining XXXX thank expenses growth continue efforts you by quarter reducing second and on our our in improving

XX%. there sequential sequential the we're but of XX.X% revenue before, making. operating approximately is The a much still As do, by delivered work progress in of and I'm growth approximately expenses business reduction encouraged I've to said

The in for to representing the performance or $X.X same hold, right path second I period profitability. on take approximately improve GAAP net beginning are was reduction on Our we're a a the million making to XX% changes XXXX to quarter million, compared XXXX. basis, and of the we're of loss approximately and believe $X.X

may you dollar fluctuations As impact exchange given know, international the reported in U.S. results. rates operations, can our

For example, XWELL's in lira. conducted portion Turkish of is business a

dollars, While purposes, U.S. in earnings. it's for GAAP currency into into reporting impact converted foreign which translated dollars results never to

this point unfavorable our reflects I from Turkish $X.X of new generated to net as approximately by our spas U.S. XXXX Turkey in out increased QX which the earnings million. lira dollars, second impact quarter loss our converting

a would would Excluding this net have on non-GAAP basis, approximately year. reduction QX million over our adjustment, represented which loss a $X.X currency-neutral last XX% have been of

staffing, to new spas leverage technology Our ago, the growing by products are wellness and better of of trends. performing increases driven and in services and year advantage compared that a take introduction

XX% X-month of delivered sales Our to last the period approximately growth same spa business year. compared when

a spa and also Treat of We our delivered product total segments. locations margin XX% at our

and increased Our driven compared international year. at delivering Istanbul addition Dubai locations. spa strong airport and passenger by spas the XX% Amsterdam last traffic of the of to locations growth remain same This period of an net performance, X-month was approximately our sales our area

on recently location the us autonomous that. lower deliver launched set manicures with to successfully innovation autonomous Clockwork On continue relationships our and more efficient our to Atlanta experience and in after cost. front, launching at with service providers, our a labor we Orlando expand site We in with enabling Miami our a pilot expanded

growth from abroad. payback weeks launching are chairs and other to space the the massage spa of late X of with these technologies, to concept coupled here year. reduced transportation to since with X a labor in of autonomous business weeks viability and have and spa machines well us last this lower the for very our modified Our cost strengthens enables These take performing hubs, continued further also our the business, new both retail a

to business. Express our Test Turning

to reduce its help to national in and monitor continue first-ever hopefully country program. the threat transmission the biosurveillance We effort to of its pathogen

continue of to continues to XX% screening test our the incoming centers revenue Our and airports. growth delivering part CDC. partnership X quarter. Biosurveillance busiest X in our we're with travelers second Further, nation's critical profitable in million the business, sequential to be passenger $X.X or of of a pleased the continue

August genomic million. has biosecurity services will The public partnership programs new contract totaling CDC SARS-CoV-X approximately to traveler-based a the on $XX.X X-year contract with support surveillance health renewed a XX, and The awarded XXXX. valued

of for go. we lifestyle wellness and is to the primary now we're transform to brand. to that, said also of And goal and on a we services make working do first provider earlier. anyone leading must profitable which strategic outlined growth XWELL towards smartly calls, Ultimately, I've however, drive strides and on that, as long-term the is our sustainable foundation profitability, build improve a to and into I've our prior continue goal As our our achieving in

that Even a location believe and we smaller of have retail opening of with a in with lower Airport addition with spa created Abu a and that and our cost a XXth footprint labor. Dhabi. transportation we've of continued can leverages international now on our expense Further, we the into calculated our hubs spa to new decisions management, existing expertise take I other portfolio the model technology grow focus Philadelphia made at

we identify expect and market, the to in bring model we details that both months. internationally, to As locations coming I this domestically more share can

Next, and multiple in growth XWELL's confident I'm profitability. balancing that expand any want to made And businesses. strides potentially strategy. We're one I results, we're wellness place in discussions acquisition to and have execute considerable acquisition involve our or to our to will requires reiterate delivering forward potentially which having and right path I'm focus that opportunities team committed operational on product pursuing execution to our unable deep we're fronts the and have on improved offering, a health more on out advancing while we of specific airport we strategy. comment And

than To new in joined our more Chief this, welcome moment our to July, us Officer bringing like XX achieve and help take impressive as at to team. and scale, of formally including record XWELL Financial Scrabis efficiently profitable acquisitions to an track I'd companies Technologies. CFO seamlessly years of a integrating Suzanne growth. experience, financial at driving operating has She Suzanne early operating deep MAVERICK

intend innovation You'll asset and while plans through believe our also operations an to acquisition. hear efforts our leverage And to from financial we business, thoughtfully XWELL a to and accelerate fully leadership unique makes from expertise combination mindset costs advancing to team. Suzanne long-term to profitability of moment, continued but strategic her again in our we invaluable and help diligently remove her value-oriented build our

the I'd to that, for With turn like over a quick to introduction. Suzanne call

Suzanne Scrabis

learn inside, the our for and our also about to of my with footprint here, employees. and working you weeks XWELL, our to great forward spa and time It's In Scott. the from plans the you, year. drive customers and remainder with detail the to I've at operational our Thank visiting value I team stakeholders. had across the for company the to of to continue understand be been look and spending executive with first we in all locations XWELL team Awesome. I've meeting as opportunity few the

my want so far, a on I things. As reflect I to highlight experiences few

in opportunities about customers investing First, areas and health and much wellness our will us. connection brands, to our before possible consumers our I'm quickly the efficiencies. our our opportunities on learning capitalize as that include high-growth but also strengths These as opportunities and with further improve

appropriate enhanced balance my execute processes firm business to operational It keys XWELL today is for to focused forward a the all that this better growth organic external remarks transformation, and to moving operational of again excellence ahead. success long the regarding and look and term. want speaking strengthen to belief Further, prudent you reiterate ability strategies I Scott's improvements execution. continued will towards in against and I unlocking Second, months compelling management into and including the value in and with all We're profitability. and in sustainable execution, forward will cost our position that putting are

now I'll back Scott. again it turn to Thanks our joining for call.

Scott Milford

Suzanne. Thank you,

As growth plans continued value. We're build in our to unlock half our I momentum XXXX I to quarter there opportunity second is that want ongoing earnings I and our second believe the for about beyond. and excited shareholder of drive firmly to upon close call, reiterate XWELL

to As pleased X closed of acquisition. outside I we our cost we reflect growing I committed rebuilding on but disappointment met goals, that optimizing of structure, an business I'm not XXXX, our internationally our X retail strategy, my spa share time CEO, as locations. we have our have in expanding our your and airport

domestically both soon. and And making we're I In commitment growth. good technologies, considerable to registration strong look a driver additional retail flexibility further, provide the filed focused products this earlier key My efficiencies. around and XWELL and our we're new news forward internationally. road long-term about of meantime, we the this progress SEC smart And measure on We're financial with corporate leveraging to expansion, month. as shelf sharing governance, a new further remains and the of managing progress down

today's I is investor highlight XX, to Shareholder Before Tuesday, call, few scheduled a Time. at a.m. I August earnings Meeting Eastern for our XX Annual XWELL's conclude like calendar. near-term would on activities

the per the include the of filed satisfy trading firm NASDAQ reverse for ballot proposed the proxy members. Also, selection of our listing share to the election stock the reverse our $X on our split market. to of on Board proposals continued SEC, we a price in and bid detailed increase accounting with public the Some intended stock split, common minimum price requirement proposed as is statement stock

statement, prices as we're our as Board the and prices our the larger spreads stock in adversely bid outlined decreased for stock. potentially the As well proxy it for believes if stock affect ask for the liquidity in our market common could in lower resulting and that delisted,

equity our Board market Additionally, to proxy is in our broader on additional necessary to may the maintaining as common maintaining and ability financing believes stock. our NASDAQ company and important provide outlined that statement, or in raise debt for a capital our listing the

strategy as our and we'll the will out useful conferences. It's road to attend in intention how forward company. story and an tell looking host moving we're investor be in our attractiveness investor further be will ahead, opportunity to Next, to these and meetings a provide that in our understanding plan of a the we investors virtual investment better to roadshows and communicate months get the XWELL, on

in Further, the will our dialogue time, same year. times At it's our hope a the investor with X modify conference slightly to frequency plan impact our to on positive earnings engaging we have expanding investors calls potential meaningful base. that a of

investor XX-K, we'll March in calls While XXXX, virtual and issuing conjunction achieve August XX-Qs, release regular quarter We earnings will and more in XXXX. our in broader we'll by year-end our presentations followed regarding when approach plan detailed and with update combined face-to-face discussions this second and earnings objectives goals, continue host midyear updates of quarterly our allow believe cadence for to a with frequent progress.

and call we're back to very its spending investors coming summary, look in excited operator. about turn growth our now opportunities. the future, we time months, I'll forward with In discussing and XWELL the over the to

XWELL (XWEL) 14 Aug 232023 Q2 Earnings call transcript