Xponential Fitness, Inc. Announces Third Quarter 2024 Financial Results
Xponential Fitness (NYSE: XPOF) reported its Q3 2024 financial results. Key highlights include a 21% increase in system-wide sales to $431.2 million and an 8% rise in quarterly AUV to $631,000. The total number of members grew by 16% to 827,000. The company sold 84 franchise licenses and opened 125 new studios during the quarter.
Revenue remained steady at $80.5 million. However, Xponential reported a net loss of $18.0 million ($0.29 per share), compared to a loss of $5.2 million ($0.91 per share) in Q3 2023. Adjusted net loss was $0.2 million ($0.04 per share). Adjusted EBITDA increased by 17% to $31.0 million.
The company reiterated its 2024 guidance for system-wide sales, total revenue, and adjusted EBITDA but lowered its outlook for new studio openings. Xponential had $37.8 million in cash and $353.8 million in long-term debt as of September 30, 2024.
Xponential Fitness (NYSE: XPOF) ha riportato i suoi risultati finanziari del Q3 2024. I punti salienti includono un aumento del 21% nelle vendite complessive a $431,2 milioni e un incremento dell'8% nell'AUV trimestrale a $631.000. Il numero totale di membri è cresciuto del 16% raggiungendo 827.000. L'azienda ha venduto 84 licenze in franchising e aperto 125 nuovi studi durante il trimestre.
I ricavi sono rimasti stabili a $80,5 milioni. Tuttavia, Xponential ha riportato una perdita netta di $18,0 milioni ($0,29 per azione), rispetto a una perdita di $5,2 milioni ($0,91 per azione) nel Q3 2023. La perdita netta rettificata è stata di $0,2 milioni ($0,04 per azione). L'EBITDA rettificato è aumentato del 17% raggiungendo $31,0 milioni.
L'azienda ha ribadito le sue previsioni per le vendite complessive, il fatturato totale e l'EBITDA rettificato per il 2024, ma ha abbassato le sue aspettative per le aperture di nuovi studi. Xponential disponeva di $37,8 milioni in cassa e $353,8 milioni in debito a lungo termine al 30 settembre 2024.
Xponential Fitness (NYSE: XPOF) reportó sus resultados financieros del Q3 2024. Los aspectos más destacados incluyen un aumento del 21% en las ventas del sistema a $431,2 millones y un incremento del 8% en el AUV trimestral a $631,000. El número total de miembros creció un 16% alcanzando los 827,000. La compañía vendió 84 licencias de franquicia y abrió 125 nuevos estudios durante el trimestre.
Los ingresos se mantuvieron estables en $80,5 millones. Sin embargo, Xponential reportó una pérdida neta de $18,0 millones ($0,29 por acción), en comparación con una pérdida de $5,2 millones ($0,91 por acción) en el Q3 2023. La pérdida neta ajustada fue de $0,2 millones ($0,04 por acción). El EBITDA ajustado aumentó un 17% alcanzando $31,0 millones.
La compañía reiteró su guía para 2024 sobre ventas del sistema, ingresos totales y EBITDA ajustado, pero redujo sus proyecciones para nuevas aperturas de estudios. Xponential tenía $37,8 millones en efectivo y $353,8 millones en deuda a largo plazo al 30 de septiembre de 2024.
Xponential Fitness (NYSE: XPOF)는 2024년 3분기 재무 결과를 발표했습니다. 주요 사항으로는 전체 매출이 21% 증가한 4억 3천 1백 20만 달러에 달하고, 분기 AUV가 8% 상승하여 631,000 달러에 이르렀습니다. 총 회원 수는 16% 증가하여 827,000명이 되었습니다. 회사는 84개의 프랜차이즈 라이센스를 판매하고, 해당 분기 동안 125개의 새로운 스튜디오를 열었습니다.
수익은 8천 5백만 달러로 그대로 유지되었습니다. 그러나 Xponential은 1,800만 달러의 순손실 ($0.29 per share) 을 보고했으며, 이는 2023년 3분기의 520만 달러($0.91 per share) 손실에 비해 큰 폭의 증가입니다. 조정된 순손실은 20만달러 ($0.04 per share)였습니다. 조정 EBITDA는 17% 증가하여 3천 1백만 달러에 도달했습니다.
회사는 전체 매출, 총 수익, 조정 EBITDA에 대한 2024년 가이드를 재확인했으나, 새로운 스튜디오 개설 전망은 하향 조정했습니다. 2024년 9월 30일 기준으로 Xponential은 3780만 달러의 현금과 3억 5천 38만 달러의 장기 부채를 보유하고 있었습니다.
Xponential Fitness (NYSE: XPOF) a annoncé ses résultats financiers du T3 2024. Les points clés incluent une augmentation de 21% des ventes globales à 431,2 millions de dollars et une hausse de 8% de l'AUV trimestriel à 631 000 dollars. Le nombre total de membres a augmenté de 16% pour atteindre 827 000. La société a vendu 84 licences de franchise et ouvert 125 nouveaux studios durant le trimestre.
Les revenus sont restés stables à 80,5 millions de dollars. Cependant, Xponential a signalé une perte nette de 18,0 millions de dollars ($0,29 par action), contre une perte de 5,2 millions de dollars ($0,91 par action) au T3 2023. La perte nette ajustée était de 0,2 million de dollars ($0,04 par action). L'EBITDA ajusté a augmenté de 17% pour atteindre 31,0 millions de dollars.
L'entreprise a réitéré ses prévisions pour les ventes globales, le chiffre d'affaires total et l'EBITDA ajusté pour 2024, mais a abaissé ses perspectives concernant les nouvelles ouvertures de studios. Xponential disposait de 37,8 millions de dollars en liquidités et de 353,8 millions de dollars de dettes à long terme au 30 septembre 2024.
Xponential Fitness (NYSE: XPOF) hat seine Finanzergebnisse für das 3. Quartal 2024 veröffentlicht. Zu den wichtigsten Punkten gehören ein Umsatzanstieg von 21% auf 431,2 Millionen Dollar sowie ein 8%iger Anstieg des vierteljährlichen AUV auf 631.000 Dollar. Die Gesamtzahl der Mitglieder wuchs um 16% auf 827.000. Das Unternehmen verkaufte 84 Franchise-Lizenzen und eröffnete im Laufe des Quartals 125 neue Studios.
Die Einnahmen blieben mit 80,5 Millionen Dollar konstant. Allerdings berichtete Xponential von einem Nettoverlust von 18,0 Millionen Dollar ($0,29 pro Aktie), verglichen mit einem Verlust von 5,2 Millionen Dollar ($0,91 pro Aktie) im 3. Quartal 2023. Der bereinigte Nettoverlust betrug 0,2 Millionen Dollar ($0,04 pro Aktie). Das bereinigte EBITDA stieg um 17% auf 31,0 Millionen Dollar.
Das Unternehmen bekräftigte seine Prognose für die gesamten Verkaufszahlen, den Gesamtumsatz und das bereinigte EBITDA für 2024, senkte jedoch seine Aussichten für die Eröffnung neuer Studios. Xponential verfügte am 30. September 2024 über 37,8 Millionen Dollar in bar und 353,8 Millionen Dollar an langfristigen Schulden.
- 21% increase in system-wide sales to $431.2 million.
- 8% rise in quarterly AUV to $631,000.
- 16% increase in total members to 827,000.
- Adjusted EBITDA increased by 17% to $31.0 million.
- Net loss of $18.0 million, compared to a loss of $5.2 million in Q3 2023.
- Adjusted net loss of $0.2 million, compared to adjusted net income of $6.0 million in Q3 2023.
- Lowered guidance for new studio openings.
Insights
The Q3 results present a mixed picture for XPOF. While system-wide sales grew
Key metrics show operational strength with
The fitness franchise sector shows resilience through XPOF's continued expansion, but operational challenges are emerging. The strategic shift away from company-owned transition studios indicates a focus on pure franchise model optimization. The new CEO's emphasis on marketing and operations-driven transformation signals potential structural changes ahead.
The maintained revenue guidance of
-
System-wide sales1 of
in Q3 2024 increased$431.2 million 21% year-over-year -
Quarterly AUV (run rate)2 of
in Q3 2024 grew$631,000 8% year-over-year, while total members of 827,000 were up16% - Sold 84 franchise licenses and opened 125 gross new studios in Q3 2024
Financial Highlights: Q3 2024 Compared to Q3 2023
-
Reported revenue of
, consistent with the prior year period.$80.5 million -
Increased
North America system-wide sales by21% to .$431.2 million -
Reported
North America same store sales3 growth of5% , compared to growth of15% . -
Reported
North America quarterly run-rate average unit volume (AUV) of , compared to$631,000 .$585,000 -
Posted net loss of
, or a loss of$18.0 million per basic share, on a share count of 32.2 million shares of Class A Common Stock, compared to a net loss of$0.29 , or earnings per basic share of$5.2 million , on a share count of 32.3 million shares of Class A Common Stock.$0.91 -
Posted adjusted net loss of
, or a loss of$0.2 million per basic share, compared to adjusted net income of$0.04 , or earnings per basic share of$6.0 million .$0.09 -
Reported Adjusted EBITDA4 of
, compared to$31.0 million .$26.5 million
“Following my first 100 days, I’m looking forward to sharing my vision for the Company with all of you this afternoon,” said Mark King, CEO of Xponential Fitness, Inc. “My focus is on fostering a culture at Xponential that is conducive to long-term success. We need to transform into a marketing and operations-driven organization that places franchisee success at the center.”
Results for the Third Quarter Ended September 30, 2024
For the third quarter of 2024, total revenue increased
Net loss totaled
Adjusted net loss for the third quarter of 2024, which excludes
Adjusted EBITDA, which is defined as net income (loss) before interest, taxes, depreciation and amortization, adjusted for equity-based compensation and related employer payroll taxes, acquisition and transaction expenses, litigation expenses (outside of the ordinary course of business), financial transaction fees and related expenses, tax receivable agreement remeasurement, impairment of goodwill and other assets, loss on brand divestitures and wind down, executive transition costs, non-recurring rebranding expenses, and restructuring and related charges, was
Liquidity and Capital Resources
As of September 30, 2024, the Company had approximately
2024 Outlook
Based on current business conditions, and our expectations as of the date of this release, we are reiterating 2024 guidance for system-wide sales, total revenue and adjusted EBITDA, and we are lowering guidance for global new studio openings as follows:
-
Gross new studio openings in the range of 490 to 510, or a decrease of
10% at the midpoint compared to full year 2023 gross new openings; this compares to previous guidance of 500 to 520; -
North America system-wide sales in the range of to$1.70 5 billion , or an increase of$1.71 5 billion22% at the midpoint compared to full year 2023; unchanged from previous guidance; -
Revenue in the range of
to$310.0 million , or a decrease of$320.0 million 1% at the midpoint compared to full year 2023; unchanged from previous guidance; -
Adjusted EBITDA in the range of
to$120.0 million , or an increase of$124.0 million 16% at the midpoint compared to full year 2023; unchanged from previous guidance.
Additional key assumptions for full year 2024 include:
- Tax rate in the mid-to-high single digits;
- Share count of 31.8 million shares of Class A Common Stock for the GAAP EPS and Adjusted EPS calculations. A full explanation of the Company’s share count calculation and associated EPS and Adjusted EPS calculations can be found in the tables at the end of this press release; and
-
in quarterly dividends paid related to the Company’s Convertible Preferred Stock, or$1.9 million if paid-in-kind.$2.2 million
We are not able to provide a quantitative reconciliation of the estimated full year Adjusted EBITDA for fiscal year ending December 31, 2024 without unreasonable efforts to the most directly comparable GAAP financial measure due to the high variability, complexity and low visibility with respect to certain items such as taxes, TRA remeasurements, and income and expense from changes in fair value of contingent consideration from acquisitions. We expect the variability of these items to have a potentially unpredictable and potentially significant impact on future GAAP financial results, and, as such, we also believe that any reconciliations provided would imply a degree of precision that would be confusing or misleading to investors.
Third Quarter 2024 Conference Call
The Company will host a conference call today at 1:30 p.m. Pacific Time / 4:30 p.m. Eastern Time to discuss its third quarter 2024 financial results. Participants may join the conference call by dialing 1-877-407-9716 (
A live webcast of the conference call will also be available on the Company’s Investor Relations site at https://investor.xponential.com/. For those unable to participate in the conference call, a telephonic replay of the call will be available shortly after the completion of the call, until 11:59 p.m. ET on Thursday, November 21, 2024, by dialing 1-844-512-2921 (
About Xponential Fitness, Inc.
Xponential Fitness, Inc. (NYSE: XPOF) is one of the leading global franchisors of boutique health and wellness brands. Through its mission to make health and wellness accessible to everyone, the Company operates a diversified platform of nine brands spanning across verticals including Pilates, indoor cycling, barre, stretching, dancing, boxing, strength training, metabolic health, and yoga. In partnership with its franchisees, Xponential offers energetic, accessible, and personalized workout experiences led by highly qualified instructors in studio locations throughout the
Non-GAAP Financial Measures
In addition to our results determined in accordance with GAAP, we believe non-GAAP financial measures are useful in evaluating our operating performance. We use certain non-GAAP financial information, such as EBITDA, Adjusted EBITDA, adjusted net income (loss), and adjusted net earnings (loss) per share, which exclude certain non-operating or non-recurring items, including but not limited to, equity-based compensation expenses and related employer payroll taxes, acquisition and transaction expenses (income), litigation expenses, financial transaction fees and related expenses, tax receivable agreement remeasurement, impairment of goodwill and other assets, loss on brand divestitures and wind down (excluding impairments), executive transition costs, non-recurring rebranding expenses, and charges incurred in connection with our restructuring plan that we believe are not representative of our core business or future operating performance, to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe that non-GAAP financial information, when taken collectively with comparable GAAP financial measures, is helpful to investors because it provides consistency and comparability with past financial performance and provides meaningful supplemental information regarding our performance by excluding certain items that may not be indicative of our business, results of operations or outlook. However, non-GAAP financial information is presented for supplemental informational purposes only, has limitations as an analytical tool, and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. In addition, other companies, including companies in our industry, may calculate similarly titled non-GAAP measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. We seek to compensate such limitations by providing a detailed reconciliation for the non-GAAP financial measures to the most directly comparable financial measures stated in accordance with GAAP. Investors are encouraged to review the related GAAP financial measures and the reconciliation of the non-GAAP financial measures to their most directly comparable GAAP financial measures and not rely on any single financial measure to evaluate our business. For a reconciliation of non-GAAP to GAAP measures discussed in this release, please see the tables at the end of this press release.
Forward-Looking Statements
This press release contains forward-looking statements that are based on current expectations, estimates, forecasts and projections of future performance based on management’s judgment, beliefs, current trends, and anticipated financial performance. These forward-looking statements include, without limitation, statements relating to expected growth of our business; projected number of new studio openings; profitability; the expected impact of our movement away from company-owned transition studios; anticipated industry trends; projected financial and performance information such as system-wide sales; and other statements under the section “2024 Outlook”; our competitive position in the boutique fitness and broader health and wellness industry; and ability to execute our business strategies and our strategic growth drivers. Forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from those contained in the forward-looking statements. These factors include, but are not limited to, our relationships with master franchisees, franchisees and international partners; difficulties and challenges in opening studios by franchisees; the ability of franchisees to generate sufficient revenues; risks relating to expansion into international markets; loss of reputation and brand awareness; general economic conditions and industry trends; and other risks as described in our SEC filings, including our Annual Report on Form 10-K for the full year ended December 31, 2023, filed by Xponential with the SEC, and other periodic reports filed with the SEC. Other unknown or unpredictable factors or underlying assumptions subsequently proving to be incorrect could cause actual results to differ materially from those in the forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance, or achievements. You should not place undue reliance on these forward-looking statements. All information provided in this press release is as of today’s date, unless otherwise stated, and Xponential undertakes no duty to update such information, except as required under applicable law.
Xponential Fitness, Inc. Condensed Consolidated Balance Sheets (Unaudited) (in thousands, except per share amounts) |
||||||||
September 30, | December 31, | |||||||
2024 |
2023 |
|||||||
Assets | ||||||||
Current assets: | ||||||||
Cash, cash equivalents and restricted cash | $ |
37,774 |
|
$ |
37,094 |
|
||
Accounts receivable, net |
|
29,552 |
|
|
32,751 |
|
||
Inventories |
|
10,608 |
|
|
14,724 |
|
||
Prepaid expenses and other current assets |
|
8,341 |
|
|
5,856 |
|
||
Deferred costs, current portion |
|
9,022 |
|
|
6,620 |
|
||
Notes receivable from franchisees, net |
|
279 |
|
|
203 |
|
||
Total current assets |
|
95,576 |
|
|
97,248 |
|
||
Property and equipment, net |
|
18,840 |
|
|
19,502 |
|
||
Right-of-use assets |
|
34,160 |
|
|
71,413 |
|
||
Goodwill |
|
163,036 |
|
|
171,601 |
|
||
Intangible assets, net |
|
117,753 |
|
|
120,149 |
|
||
Deferred costs, net of current portion |
|
41,616 |
|
|
46,541 |
|
||
Notes receivable from franchisees, net of current portion |
|
103 |
|
|
802 |
|
||
Other assets |
|
1,093 |
|
|
1,442 |
|
||
Total assets | $ |
472,177 |
|
$ |
528,698 |
|
||
Liabilities, redeemable convertible preferred stock and stockholders' equity (deficit) | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ |
21,297 |
|
$ |
19,119 |
|
||
Accrued expenses |
|
21,467 |
|
|
14,088 |
|
||
Deferred revenue, current portion |
|
28,560 |
|
|
34,674 |
|
||
Current portion of long-term debt |
|
5,397 |
|
|
4,760 |
|
||
Other current liabilities |
|
17,423 |
|
|
19,666 |
|
||
Total current liabilities |
|
94,144 |
|
|
92,307 |
|
||
Deferred revenue, net of current portion |
|
108,799 |
|
|
117,305 |
|
||
Contingent consideration from acquisitions |
|
15,494 |
|
|
8,666 |
|
||
Long-term debt, net of current portion, discount and issuance costs |
|
342,038 |
|
|
319,261 |
|
||
Lease liability |
|
33,501 |
|
|
70,141 |
|
||
Other liabilities |
|
1,537 |
|
|
9,152 |
|
||
Total liabilities |
|
595,513 |
|
|
616,832 |
|
||
Commitments and contingencies | ||||||||
Redeemable convertible preferred stock, |
|
116,810 |
|
|
114,660 |
|
||
Stockholders' equity (deficit): | ||||||||
Undesignated preferred stock, |
|
— |
|
|
— |
|
||
Class A common stock, |
|
3 |
|
|
3 |
|
||
Class B common stock, |
|
2 |
|
|
2 |
|
||
Additional paid-in capital |
|
516,582 |
|
|
521,998 |
|
||
Receivable from shareholder |
|
(16,508 |
) |
|
(15,426 |
) |
||
Accumulated deficit |
|
(654,095 |
) |
|
(630,127 |
) |
||
Treasury stock, at cost, 75 shares outstanding as of September 30, 2024 and December 31, 2023 |
|
(1,697 |
) |
|
(1,697 |
) |
||
Total stockholders' deficit attributable to Xponential Fitness, Inc. |
|
(155,713 |
) |
|
(125,247 |
) |
||
Noncontrolling interests |
|
(84,433 |
) |
|
(77,547 |
) |
||
Total stockholders' deficit |
|
(240,146 |
) |
|
(202,794 |
) |
||
Total liabilities, redeemable convertible preferred stock and stockholders' deficit | $ |
472,177 |
|
$ |
528,698 |
|
Xponential Fitness, Inc. Condensed Consolidated Statements of Operations (Unaudited) (in thousands, except per share amounts) |
||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2024 |
2023 |
2024 |
2023 |
|||||||||||||
Revenue, net: | ||||||||||||||||
Franchise revenue | $ |
44,458 |
|
$ |
36,425 |
|
$ |
129,232 |
|
$ |
104,524 |
|
||||
Equipment revenue |
|
14,681 |
|
|
12,564 |
|
|
41,506 |
|
|
40,086 |
|
||||
Merchandise revenue |
|
6,538 |
|
|
8,456 |
|
|
20,593 |
|
|
24,021 |
|
||||
Franchise marketing fund revenue |
|
8,565 |
|
|
6,948 |
|
|
24,777 |
|
|
19,776 |
|
||||
Other service revenue |
|
6,249 |
|
|
16,042 |
|
|
20,421 |
|
|
40,058 |
|
||||
Total revenue, net |
|
80,491 |
|
|
80,435 |
|
|
236,529 |
|
|
228,465 |
|
||||
Operating costs and expenses: | ||||||||||||||||
Costs of product revenue |
|
17,071 |
|
|
12,709 |
|
|
44,328 |
|
|
40,967 |
|
||||
Costs of franchise and service revenue |
|
4,867 |
|
|
3,559 |
|
|
15,822 |
|
|
11,305 |
|
||||
Selling, general and administrative expenses |
|
46,164 |
|
|
43,908 |
|
|
120,308 |
|
|
116,003 |
|
||||
Impairment of goodwill and other assets |
|
4,502 |
|
|
4,671 |
|
|
16,591 |
|
|
11,909 |
|
||||
Depreciation and amortization |
|
4,226 |
|
|
4,216 |
|
|
13,179 |
|
|
12,701 |
|
||||
Marketing fund expense |
|
6,423 |
|
|
5,817 |
|
|
20,785 |
|
|
16,289 |
|
||||
Acquisition and transaction expenses (income) |
|
3,664 |
|
|
(1,923 |
) |
|
6,962 |
|
|
(17,433 |
) |
||||
Total operating costs and expenses |
|
86,917 |
|
|
72,957 |
|
|
237,975 |
|
|
191,741 |
|
||||
Operating income (loss) |
|
(6,426 |
) |
|
7,478 |
|
|
(1,446 |
) |
|
36,724 |
|
||||
Other expense (income): | ||||||||||||||||
Interest income |
|
(481 |
) |
|
(24 |
) |
|
(1,231 |
) |
|
(1,189 |
) |
||||
Interest expense |
|
11,843 |
|
|
10,638 |
|
|
34,644 |
|
|
27,242 |
|
||||
Other expense |
|
51 |
|
|
1,845 |
|
|
913 |
|
|
3,097 |
|
||||
Total other expense |
|
11,413 |
|
|
12,459 |
|
|
34,326 |
|
|
29,150 |
|
||||
Income (loss) before income taxes |
|
(17,839 |
) |
|
(4,981 |
) |
|
(35,772 |
) |
|
7,574 |
|
||||
Income taxes |
|
131 |
|
|
202 |
|
|
216 |
|
|
212 |
|
||||
Net income (loss) |
|
(17,970 |
) |
|
(5,183 |
) |
|
(35,988 |
) |
|
7,362 |
|
||||
Less: net income (loss) attributable to noncontrolling interests |
|
(5,971 |
) |
|
(1,801 |
) |
|
(12,020 |
) |
|
2,348 |
|
||||
Net income (loss) attributable to Xponential Fitness, Inc. | $ |
(11,999 |
) |
$ |
(3,382 |
) |
$ |
(23,968 |
) |
$ |
5,014 |
|
||||
Net income (loss) per share of Class A common stock: | ||||||||||||||||
Basic | $ |
(0.29 |
) |
$ |
0.91 |
|
$ |
(0.88 |
) |
$ |
1.08 |
|
||||
Diluted | $ |
(0.29 |
) |
$ |
(0.50 |
) |
$ |
(0.88 |
) |
$ |
(0.17 |
) |
||||
Weighted average shares of Class A common stock outstanding: | ||||||||||||||||
Basic |
|
32,177 |
|
|
32,260 |
|
|
31,704 |
|
|
32,025 |
|
||||
Diluted |
|
32,177 |
|
|
40,223 |
|
|
31,704 |
|
|
39,988 |
|
Xponential Fitness, Inc. Condensed Consolidated Statements of Cash Flows (Unaudited) (in thousands) |
||||||||
Nine Months Ended September 30, | ||||||||
2024 |
2023 |
|||||||
Cash flows from operating activities: | ||||||||
Net income (loss) | $ |
(35,988 |
) |
$ |
7,362 |
|
||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||
Depreciation and amortization |
|
13,179 |
|
|
12,701 |
|
||
Amortization and write off of debt issuance costs |
|
179 |
|
|
416 |
|
||
Amortization and write off of discount on long-term debt |
|
3,129 |
|
|
2,032 |
|
||
Change in contingent consideration from acquisitions |
|
6,435 |
|
|
(17,528 |
) |
||
Non-cash lease expense |
|
5,415 |
|
|
9,637 |
|
||
Bad debt expense |
|
2,270 |
|
|
850 |
|
||
Equity-based compensation |
|
13,121 |
|
|
15,647 |
|
||
Non-cash interest |
|
(986 |
) |
|
(857 |
) |
||
Loss (gain) on disposal of assets |
|
(8,307 |
) |
|
(770 |
) |
||
Impairment of goodwill and other assets |
|
16,591 |
|
|
11,909 |
|
||
Changes in assets and liabilities, net of effect of acquisition: | ||||||||
Accounts receivable |
|
1,152 |
|
|
(2,535 |
) |
||
Inventories |
|
4,116 |
|
|
(5,376 |
) |
||
Prepaid expenses and other current assets |
|
(2,485 |
) |
|
(7,237 |
) |
||
Operating lease liabilities |
|
(2,002 |
) |
|
(4,027 |
) |
||
Deferred costs |
|
2,522 |
|
|
(4,743 |
) |
||
Notes receivable, net |
|
3 |
|
|
1 |
|
||
Accounts payable |
|
1,952 |
|
|
7,302 |
|
||
Accrued expenses |
|
6,688 |
|
|
1,656 |
|
||
Other current liabilities |
|
5,816 |
|
|
4,953 |
|
||
Deferred revenue |
|
(14,620 |
) |
|
7,536 |
|
||
Other assets |
|
348 |
|
|
(458 |
) |
||
Other liabilities |
|
(7,613 |
) |
|
(277 |
) |
||
Net cash provided by operating activities |
|
10,915 |
|
|
38,194 |
|
||
Cash flows from investing activities: | ||||||||
Purchases of property and equipment |
|
(4,815 |
) |
|
(6,156 |
) |
||
Proceeds from sale of assets |
|
346 |
|
|
60 |
|
||
Purchase of studios |
|
— |
|
|
(164 |
) |
||
Purchase of intangible assets |
|
(1,435 |
) |
|
(2,420 |
) |
||
Notes receivable issued |
|
— |
|
|
(581 |
) |
||
Notes receivable payments received |
|
470 |
|
|
666 |
|
||
Acquisition of business |
|
(8,500 |
) |
|
— |
|
||
Net cash used in investing activities |
|
(13,934 |
) |
|
(8,595 |
) |
||
Cash flows from financing activities: | ||||||||
Borrowings from long-term debt |
|
62,951 |
|
|
189,150 |
|
||
Payments on long-term debt |
|
(42,527 |
) |
|
(3,014 |
) |
||
Debt issuance costs |
|
(318 |
) |
|
(411 |
) |
||
Payment of preferred stock dividend |
|
(3,768 |
) |
|
(5,677 |
) |
||
Payment of promissory note liability |
|
(3,467 |
) |
|
— |
|
||
Payment of contingent consideration |
|
— |
|
|
(1,412 |
) |
||
Payments for taxes related to net share settlement of restricted share units |
|
— |
|
|
(8,111 |
) |
||
Proceeds from issuance of common stock in connection with stock-based compensation plans |
|
74 |
|
|
— |
|
||
Payment for tax receivable agreement |
|
(2,267 |
) |
|
(1,163 |
) |
||
Payments for redemption of preferred stock |
|
— |
|
|
(130,766 |
) |
||
Payments for distributions to Pre-IPO LLC Members |
|
(6,979 |
) |
|
(7,485 |
) |
||
Repurchase of Class A common stock |
|
— |
|
|
(50,378 |
) |
||
Payment received from shareholder |
|
— |
|
|
8,062 |
|
||
Loan to shareholder |
|
— |
|
|
(4,400 |
) |
||
Proceeds from disgorgement of stockholders short-swing profits |
|
— |
|
|
516 |
|
||
Net cash provided by (used in) financing activities |
|
3,699 |
|
|
(15,089 |
) |
||
Increase in cash, cash equivalents and restricted cash |
|
680 |
|
|
14,510 |
|
||
Cash, cash equivalents and restricted cash, beginning of period |
|
37,094 |
|
|
37,370 |
|
||
Cash, cash equivalents and restricted cash, end of period | $ |
37,774 |
|
$ |
51,880 |
|
Xponential Fitness, Inc. Net Income (Loss) to GAAP EPS (in thousands, except per share amounts) |
||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2024 |
2023 |
2024 |
2023 |
|||||||||||||
Numerator: | ||||||||||||||||
Net income (loss) | $ |
(17,970 |
) |
$ |
(5,183 |
) |
$ |
(35,988 |
) |
$ |
7,362 |
|
||||
Less: net (income) loss attributable to noncontrolling interests |
|
4,577 |
|
|
(14,976 |
) |
|
14,123 |
|
|
(14,127 |
) |
||||
Less: dividends on preferred shares |
|
(1,898 |
) |
|
(1,863 |
) |
|
(5,911 |
) |
|
(5,789 |
) |
||||
Less: deemed contribution |
|
6,094 |
|
|
51,435 |
|
|
— |
|
|
34,326 |
|
||||
Add: deemed contribution from redemption of convertible preferred stock |
|
— |
|
|
— |
|
|
— |
|
|
12,679 |
|
||||
Net income (loss) attributable to XPO Inc. - basic |
|
(9,197 |
) |
|
29,413 |
|
|
(27,776 |
) |
|
34,451 |
|
||||
Add: dividends on preferred shares |
|
— |
|
|
1,863 |
|
|
— |
|
|
5,789 |
|
||||
Less: deemed contribution |
|
— |
|
|
(51,435 |
) |
|
— |
|
|
(34,326 |
) |
||||
Less: Deemed contribution from redemption of convertible preferred stock |
|
— |
|
|
— |
|
|
— |
|
|
(12,679 |
) |
||||
Net loss attributable to XPO Inc. - diluted | $ |
(9,197 |
) |
$ |
(20,159 |
) |
$ |
(27,776 |
) |
$ |
(6,765 |
) |
||||
Denominator: | ||||||||||||||||
Weighted average shares of Class A common stock outstanding - basic |
|
32,177 |
|
|
32,260 |
|
|
31,704 |
|
|
32,025 |
|
||||
Effect of dilutive securities: | ||||||||||||||||
Convertible preferred stock |
|
— |
|
|
7,963 |
|
|
— |
|
|
7,963 |
|
||||
Weighted average shares of Class A common stock outstanding - diluted |
|
32,177 |
|
|
40,223 |
|
|
31,704 |
|
|
39,988 |
|
||||
Net earnings (loss) per share attributable to Class A common stock - basic | $ |
(0.29 |
) |
$ |
0.91 |
|
$ |
(0.88 |
) |
$ |
1.08 |
|
||||
Net loss per share attributable to Class A common stock - diluted | $ |
(0.29 |
) |
$ |
(0.50 |
) |
$ |
(0.88 |
) |
$ |
(0.17 |
) |
||||
Anti-dilutive shares excluded from diluted loss per share of Class A common stock: | ||||||||||||||||
Restricted stock units |
|
2,077 |
|
|
1,267 |
|
|
2,077 |
|
|
1,267 |
|
||||
Conversion of Class B common stock to Class A common stock |
|
16,016 |
|
|
16,492 |
|
|
16,016 |
|
|
16,492 |
|
||||
Convertible preferred stock |
|
8,112 |
|
|
— |
|
|
8,112 |
|
|
— |
|
||||
Accelerated Purchase Program - final settlement |
|
— |
|
|
589 |
|
|
— |
|
|
589 |
|
||||
Treasury share options |
|
75 |
|
|
75 |
|
|
75 |
|
|
75 |
|
||||
Rumble contingent shares |
|
2,024 |
|
|
2,024 |
|
|
2,024 |
|
|
2,024 |
|
||||
Profits interests, time vesting |
|
— |
|
|
1 |
|
|
— |
|
|
1 |
|
Xponential Fitness, Inc. Reconciliations of GAAP to Non-GAAP Measures (in thousands, except per share amounts) |
||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2024 |
2023 |
2024 |
2023 |
|||||||||||||
(in thousands) | ||||||||||||||||
Net income (loss) | $ |
(17,970 |
) |
$ |
(5,183 |
) |
$ |
(35,988 |
) |
$ |
7,362 |
|
||||
Interest expense, net |
|
11,362 |
|
|
10,614 |
|
|
33,413 |
|
|
26,053 |
|
||||
Income taxes |
|
131 |
|
|
202 |
|
|
216 |
|
|
212 |
|
||||
Depreciation and amortization |
|
4,226 |
|
|
4,216 |
|
|
13,179 |
|
|
12,701 |
|
||||
EBITDA |
|
(2,251 |
) |
|
9,849 |
|
|
10,820 |
|
|
46,328 |
|
||||
Equity-based compensation |
|
4,983 |
|
|
3,536 |
|
|
13,121 |
|
|
15,647 |
|
||||
Employer payroll taxes related to equity-based compensation |
|
(7 |
) |
|
94 |
|
|
415 |
|
|
659 |
|
||||
Acquisition and transaction expenses (income) |
|
3,664 |
|
|
(1,923 |
) |
|
6,962 |
|
|
(17,433 |
) |
||||
Litigation expenses |
|
10,435 |
|
|
1,511 |
|
|
14,521 |
|
|
5,855 |
|
||||
Financial transaction fees and related expenses |
|
— |
|
|
327 |
|
|
620 |
|
|
1,971 |
|
||||
TRA remeasurement |
|
51 |
|
|
1,845 |
|
|
913 |
|
|
3,097 |
|
||||
Impairment of goodwill and other assets |
|
4,502 |
|
|
4,671 |
|
|
16,591 |
|
|
11,909 |
|
||||
Loss on brand divestitures and wind down (excluding impairments) |
|
408 |
|
|
— |
|
|
1,609 |
|
|
— |
|
||||
Executive transition costs |
|
— |
|
|
— |
|
|
690 |
|
|
— |
|
||||
Non-recurring rebranding expenses |
|
— |
|
|
— |
|
|
331 |
|
|
— |
|
||||
Restructuring and related charges (excluding impairments) |
|
9,194 |
|
|
6,611 |
|
|
19,583 |
|
|
6,611 |
|
||||
Adjusted EBITDA | $ |
30,979 |
|
$ |
26,521 |
|
$ |
86,176 |
|
$ |
74,644 |
|
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2024 |
2023 |
2024 |
2023 |
|||||||||||||
Net income (loss) | $ |
(17,970 |
) |
$ |
(5,183 |
) |
$ |
(35,988 |
) |
$ |
7,362 |
|
||||
Acquisition and transaction expenses (income) |
|
3,664 |
|
|
(1,923 |
) |
|
6,962 |
|
|
(17,433 |
) |
||||
TRA remeasurement |
|
51 |
|
|
1,845 |
|
|
913 |
|
|
3,097 |
|
||||
Impairment of goodwill and other assets |
|
4,502 |
|
|
4,671 |
|
|
16,591 |
|
|
11,909 |
|
||||
Loss on brand divestitures and wind down (excluding impairments) |
|
408 |
|
|
— |
|
|
1,609 |
|
|
— |
|
||||
Restructuring and related charges (excluding impairments) |
|
9,194 |
|
|
6,611 |
|
|
19,583 |
|
|
6,611 |
|
||||
Adjusted net income | $ |
(151 |
) |
$ |
6,021 |
|
$ |
9,670 |
|
$ |
11,546 |
|
||||
Adjusted net income attributable to noncontrolling interest |
|
(50 |
) |
|
2,038 |
|
|
3,343 |
|
|
3,940 |
|
||||
Adjusted net income attributable to Xponential Fitness, Inc. |
|
(101 |
) |
|
3,983 |
|
|
6,327 |
|
|
7,606 |
|
||||
Dividends on preferred shares |
|
(1,267 |
) |
|
(1,233 |
) |
|
(3,908 |
) |
|
(3,759 |
) |
||||
Adjusted Earnings (loss) per share - basic numerator | $ |
(1,368 |
) |
$ |
2,750 |
|
$ |
2,419 |
|
$ |
3,847 |
|
||||
Add: Adjusted net income (loss) attributable to noncontrolling interest |
|
— |
|
|
2,038 |
|
|
3,343 |
|
|
3,940 |
|
||||
Add: Dividends on preferred shares |
|
— |
|
|
1,233 |
|
|
3,908 |
|
|
3,759 |
|
||||
Adjusted Earnings (loss) per share - diluted numerator | $ |
(1,368 |
) |
$ |
6,021 |
|
$ |
9,670 |
|
$ |
11,546 |
|
||||
Adjusted net earnings (loss) per share - basic | $ |
(0.04 |
) |
$ |
0.09 |
|
$ |
0.08 |
|
$ |
0.12 |
|
||||
Weighted average shares of Class A common stock outstanding - basic |
|
32,177 |
|
|
32,260 |
|
|
31,704 |
|
|
32,025 |
|
||||
Adjusted net earnings (loss) per share - diluted | $ |
(0.04 |
) |
$ |
0.11 |
|
$ |
0.17 |
|
$ |
0.20 |
|
||||
Effect of dilutive securities: | ||||||||||||||||
Restricted stock units |
|
— |
|
|
85 |
|
|
— |
|
|
421 |
|
||||
Convertible preferred stock |
|
— |
|
|
7,963 |
|
|
8,112 |
|
|
7,963 |
|
||||
Conversion of Class B common stock to Class A common stock |
|
— |
|
|
16,503 |
|
|
16,242 |
|
|
17,206 |
|
||||
Weighted average shares of Class A common stock outstanding - diluted |
|
32,177 |
|
|
56,811 |
|
|
56,058 |
|
|
57,615 |
|
||||
Shares excluded from dilutive earnings per share of Class A common stock | ||||||||||||||||
Restricted stock units |
|
2,077 |
|
|
— |
|
|
2,077 |
|
|
— |
|
||||
Convertible preferred stock |
|
8,112 |
|
|
— |
|
|
— |
|
|
— |
|
||||
Conversion of Class B common stock to Class A common stock |
|
16,016 |
|
|
— |
|
|
— |
|
|
— |
|
||||
Treasury share options |
|
75 |
|
|
— |
|
|
75 |
|
|
— |
|
||||
Rumble contingent shares |
|
2,024 |
|
|
2,024 |
|
|
2,024 |
|
|
2,024 |
|
||||
Profits interests, time vesting |
|
— |
|
|
1 |
|
|
— |
|
|
1 |
|
Note: The above adjusted net income (loss) per share is computed by dividing the adjusted net income (loss) attributable to holders of Class A common stock by the weighted average shares of Class A common stock outstanding during the period. Total share count does not include potential future shares vested upon achieving certain earn-out thresholds. Net income, however, continues to take into account the non-cash contingent liability primarily attributable to Rumble.
Footnotes
1 System-wide sales represent gross sales by all
2 AUV is calculated by dividing sales during the applicable period for all studios contributing to AUV by the number of studios contributing to AUV. All traditional studio locations in
-
AUV (LTM as of period end) consists of the average sales for the trailing 12 calendar months for all traditional studio locations in
North America that opened at least 13 calendar months ago as of the measurement date and that have generated positive sales for each of the last 13 calendar months as of the measurement date. -
Quarterly AUV (run rate) consists of average quarterly sales for all traditional studio locations in
North America that had opened at least six calendar months ago as of the beginning of the respective quarter, and that have non-zero sales in the respective quarter (including nominal or negative sales figures; the only figures excluded are exact amounts in the quarter), multiplied by four.$0
We measure sales for AUV based solely upon monthly sales as derived through the designated point-of-sale system. AUV is impacted by changes in same store sales, studio openings, and studio closures. Management reviews AUV to assess studio economics.
3 Same store sales refer to period-over-period sales comparisons for the base of studios. We define the same store sales base to include monthly sales for any traditional studio location in
4 We define Adjusted EBITDA as EBITDA (net income/loss before interest, taxes, depreciation and amortization), adjusted for the impact of certain non-cash and other items that we do not consider in our evaluation of ongoing operating performance. These items include equity-based compensation and related employer payroll taxes, acquisition and transaction expenses (income) (including change in contingent consideration and transaction bonuses), litigation expenses (consisting of legal and related fees for specific proceedings that arise outside of the ordinary course of our business), fees for financial transactions, such as secondary public offering expenses for which we do not receive proceeds (including bonuses paid to executives related to completion of such transactions) and other contemplated corporate transactions, expense related to the remeasurement of our TRA obligation, expense related to loss on impairment or write down of goodwill and other assets, loss on brand divestitures and wind down (excluding impairments), executive transition costs (consisting of costs associated with the transition of our former CEO, such as professional services, legal fees, executive recruiting costs and other related costs), non-recurring rebranding expenses, and restructuring and related charges (excluding impairments) incurred in connection with our restructuring plan that we do not believe reflect our underlying business performance and affect comparability. EBITDA and Adjusted EBITDA are also frequently used by analysts, investors and other interested parties to evaluate companies in our industry. We believe that Adjusted EBITDA, viewed in addition to, and not in lieu of, our reported GAAP results, provides useful information to investors regarding our performance and overall results of operations because it eliminates the impact of other items that we believe reduce the comparability of our underlying core business performance from period to period and is therefore useful to our investors in comparing the core performance of our business from period to period.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241107487653/en/
Addo Investor Relations
investor@xponential.com
(310) 829-5400
Source: Xponential Fitness, Inc.
FAQ
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