Xponential Fitness, Inc. Provides 2022 Operating Highlights, Announces Convertible Preferred Stock Repurchase and Confirms Participation at Upcoming January Conferences
Xponential Fitness, Inc. (NYSE: XPOF) reported strong operating metrics for 2022, surpassing 2,600 open studios and achieving system-wide sales of
- System-wide sales rose to
$1.03 billion , a 46% increase from 2021. - Membership grew by 32% year-over-year to 590,000.
- Repurchased 85,340 shares of Convertible Preferred Stock for
$131.0 million , potentially boosting shareholder value.
- Same store sales growth declined to 25% from 41% in 2021.
- Company expects to meet or exceed the high-end of full year 2022 outlook
The Company also announced the repurchase of 85,340 shares of its Convertible Preferred Stock, which prior to the repurchase would have been convertible into 5.9 million shares of Class A common stock. The repurchase will be funded with incremental term loans in the aggregate amount of
2022 Operating Highlights
Please note that all metrics below represent
For the full year ended
- Surpassed 2,600 open studios, and increased total licenses sold to over 5,400 across 10 brands globally;
-
Grew total members by
32% year-over-year to 590,000, up from 449,000 in 2021; -
Grew studio visits by
32% year-over-year to 39.2 million, up from 29.7 million in 2021; -
Increased system-wide sales(1) to
, up$1.03 billion 46% from in 2021;$710 million -
Delivered same store sales(2) growth of
25% , compared to41% in 2021; and -
Achieved Q4 2022 run-rate average unit volume (AUV)(3) of
, compared to$522,000 in Q4 2021.$446,000
“It was inspiring to see the enthusiasm shared by the more than 2,000 attendees who participated in our annual convention last month,” said
2022 Outlook
The Company expects to meet or exceed the high-end of the previously provided full year 2022 outlook:
-
New studio openings of 511, at the top half of the guidance range of 500 to 520, and an increase of
53% as compared to full year 2021; -
North America system-wide sales of , exceeding the high end of the guidance range of$1.03 billion to$995.0 million , and an increase of$1.00 5 billion46% as compared to full year 2021; -
Revenue in the range of
to$235.0 million , or an increase of$240.0 million 53% at the midpoint as compared to full year 2021; and -
Adjusted EBITDA(4) in the range of
to$70.0 million , or an increase of$74.0 million 164% at the midpoint compared to full year 2021.
Convertible Preferred Stock Repurchase and Incremental Term Loans
The Company today announced that it has entered into a privately negotiated preferred stock repurchase agreement with certain holders of its outstanding Convertible Preferred Stock and an amendment to its existing financing arrangement that provides for, among other things, incremental term loans in an aggregate principal amount of
Participation at Upcoming Conferences
The
In addition, management will be participating in the
Both presentations will be broadcast over the Internet and can be accessed in the Investor Relations section of Xponential Fitness’ website at https://investor.xponential.com/.
About
Non-GAAP Financial Measures
In addition to our results determined in accordance with GAAP, we believe non-GAAP measures are useful in evaluating our operating performance. We use certain non-GAAP financial information in this press release, such as Adjusted EBITDA, which exclude certain non-operating or non-recurring items as described in footnote 4 below 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. In addition, the Company is not able to provide a quantitative reconciliation of the estimated full-year Adjusted EBITDA for 2022 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. The Company expects to provide a reconciliation of the final Adjusted EBITDA for full-year 2022 when it announces the fourth quarter and full year results in early
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; anticipated industry trends; projected financial and performance information such as system-wide sales; projected annual revenue, Adjusted EBITDA and other statements under the section “2022 Outlook”; our competitive position in the boutique fitness industry; and ability to execute our business strategies. These forward-looking statements also include references to our expectations regarding the closing of the convertible preferred stock repurchase transactions and the incremental term loans. 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, the ability of franchisees to generate sufficient revenues; our relationships with master franchisees, franchisees and international partners; difficulties and challenges in opening studios by franchisees; risks relating to expansion into international markets; loss of reputation and brand awareness; material weakness in our internal control over financial reporting; uncertainties regarding the closing of the convertible preferred stock repurchase transactions and the incremental term loans; and other risks as described in our
Footnotes
1System-wide sales represent gross sales by all North American studios. System-wide sales include sales by franchisees that are not revenue realized by us in accordance with GAAP. While we do not record sales by franchisees as revenue, and such sales are not included in our consolidated financial statements, this operating metric relates to our revenue because we receive approximately
2Same store sales refer to period-over-period sales comparisons for the base of studios. We define the same store sales base to include studios in
3AUV is calculated by dividing sales during the applicable period for all studios being measured by the number of studios being measured. Quarterly run-rate AUV consists of average quarterly sales for all studios that are at least 6 months old at the beginning of the respective quarter, multiplied by four. Monthly run-rate AUV is calculated as the monthly AUV multiplied by twelve, for studios that are at least 6 months old at the beginning of the respective month. AUV growth is primarily driven by changes in same store sales and is also influenced by new studio openings. Management reviews AUV to assess studio economics.
4We 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, acquisition and transaction expenses (including change in contingent consideration), management fees and expenses (that were discontinued after
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Addo Investor Relations
investor@xponential.com
(310) 829-5400
Source:
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