Investors Update: XpresSpa Group, Inc. (NASDAQ: XSPA)

XpresSpa Group, Inc. (NASDAQ: XSPA) spotted trading -84.86% off 52-week high price. On the other end, the stock has been noted 1550.00% away from the low price over the last 52-weeks. The stock changed -0.60% to recent value of $0.82. The stock transacted 20071990 shares during most recent day however it has an average volume of 28902.73K shares. The company has 12.9M of outstanding shares and 82.17M shares were floated in the market.

XpresSpa Group, Inc. (XSPA) recently provided a business update and reported that it has filed financial results on SEC Form 10-Q for the first quarter ending March 31, 2020.

Balance Sheet Update
As of March 31, 2020, the Company had cash and cash equivalents, not including restricted cash, of $3.9M. Subsequent to March 31, 2020 the Company raised about $43M of gross proceeds in a series of registered direct equity offerings. In addition, the Company’s indebtedness was reduced by $9.1M as a result of a series of transactions including (i) the conversion of $5.7M of the B3D Note to Ordinary Stock, (ii) the conversion of the entire $2.5M Calm Note to Ordinary Stock, and (iii) the repayment in full of the $910,000 owed to Credit Cash, net of a discount of about $91,000.

As of June 19, 2020, the Company has about 56.5M shares of ordinary stock outstanding and warrants to purchase up to an aggregate of 7.71M shares of ordinary stock that are immediately exercisable at an average price of about $5.25 per share.

First Quarter 2020 Highlights

  • Total revenue was $7.7M contrast to $12.2M in the previous year first quarter. This decrease was primarily Because of the negative impact COVID-19 has had on our revenue and results of operations. The Company’s revenue began to decrease importantly in February 2020 as COVID-19 began to spread throughout the world and as rates of infection began to increase. Effective March 24, 2020, all spas were temporarily closed. Comparable store sales reduced 26.5% for the first quarter 2020.
  • Store margin was $550,000 or 7.1% of revenue contrast to $3.1M or 25.6% of revenue in the previous year first quarter.
  • General and administrative expenses reduced 10.2% to $3.2M in 2020 contrast to $3.6M in the previous year first quarter. The decrease was a result of realized benefits of cost cutting and control initiatives instituted in 2019, primarily in salaries, occupancy and professional fees.
  • Operating loss from continuing operations increased to $10.7M contrast to $2.8M in the previous year first quarter.
  • Net loss of $10.7M contrast to net loss of $2.8M in the first quarter 2019.

Its earnings per share (EPS) expected to touch remained 82.60% for this year while earning per share for the next 5-years is expected to reach at 20.00%. XSPA has a gross margin of 22.00% and an operating margin of -36.20% while its profit margin remained -43.70% for the last 12 months. The price moved ahead of 46.34% from the mean of 20 days, 94.19% from mean of 50 days SMA and performed -3.74% from mean of 200 days price. Company’s performance for the week was -6.25%, 70.10% for month and YTD performance remained 22.24%.

 

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