XpresSpa Group, Inc. (XSPA) Q2 2019 Results Earnings Conference Call August 14, 2019 4:30 PM ET Company Participants Doug Satzman - Chief Executive Officer Conference Call Participants Operator Greetings and welcome to XpresSpa Group, Inc.'s second quarter 2019 earnings conference call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions]. As a reminder, this conference is being recorded. Today's conference call ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___ to ___ Commission file number: 001-34785 XpresSpa Group, Inc. (Exact Name of Registrant as Specified in its Charter) | Delaware | 20-4988129 | | --- | --- | | (State or other jurisdiction of | (I.R.S. Em ...

XpresSpa Group a preeminent pure-play health and wellness services company INVESTOR PRESENTATION 2019 | June NASDAQ: XSPA Disclaimers Safe Harbor Statement This presentation includes forward-looking statements, which may be identified by words such as "believes," "expects," "anticipates," "estimates," "projects," "intends," "should," "seeks," "future," "continue," or the negative of such terms, or other comparable terminology. Forward-looking statements relating to expectations about future results or event ...

Financial Data and Key Metrics Changes - Revenue for Q1 2019 was $12.2 million, a decrease of 2.9% or $0.4 million compared to $12.6 million in the prior year [22] - Gross profit increased by 10.9% to $3.1 million from $2.8 million in the prior year, with gross profit margin rising 320 basis points to 25.6% [24] - General and administrative expenses decreased by 21.7% to $3.6 million compared to $4.6 million in the prior year [25] - Adjusted EBITDA loss narrowed to $364,000, reflecting a $1.1 million improvement compared to a $1.5 million adjusted EBITDA loss in the prior year [26] Business Line Data and Key Metrics Changes - Comparable store sales decreased by 1.3%, but showed improvement with a positive 0.9% in March and a positive 4.6% in April [10][11][23] - Cost of sales decreased to $9.1 million from $9.8 million in the prior year due to reduced occupancy costs and cost savings initiatives [24] Market Data and Key Metrics Changes - As of March 31, 2019, the company had 55 locations compared to 57 locations as of March 31, 2018, with one spa closed during Q1 [22] Company Strategy and Development Direction - The company aims to enhance customer experience, turn around negative comparable store sales, and identify cost-saving measures [9] - Initiatives include staffing improvements, launching a new XpresSpa App, and selectively opening new spas in high-traffic areas [14][19] - The company plans to refresh its brand with renovation projects to elevate customer experience [20] Management's Comments on Operating Environment and Future Outlook - Management views 2019 as a transitional year, with early signs of progress in improving comparable store sales and overall financial condition [9][29] - The focus is on maximizing existing spas, identifying strategic opportunities, and expanding wisely to achieve positive adjusted EBITDA and operating cash flow [30] Other Important Information - The company is working on restructuring its outstanding debt to address its going concern status and will need additional working capital to support growth [28] Q&A Session Summary Question: How have you been able to turnaround comp so quickly and is it sustainable? - Management attributes the turnaround to new middle management and a listening tour that improved employee engagement and morale [33] Question: Can you discuss the Easter calendar shift between Q1 and Q2 and its impact on March and April? - The Easter shift did not significantly impact sales, with April showing even higher comp sales than March [35] Question: Could you provide an update on the Calm relationship and if you expect to renew the partnership before it expires in July? - Management is in discussions to extend the partnership with Calm, which has been valuable [37] Question: What has changed regarding the strategy of opening a company-operated spa alongside a franchise in Austin? - The strategy remains the same, but the decision was made to support the first franchisee by opening a company-owned spa in the same airport [39] Question: How many more closures are planned for this year beyond the one that was closed in Q1? - Management is reviewing underperforming stores and may close a few more, but it will not be a significant number [41] Question: How much does it cost to do a remodel, what kind of sales lift do you project, and how much downtime is involved? - Remodel costs range from $15,000 to $250,000, with the goal of minimizing downtime during renovations [44][45]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2019 ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___ to ___ Commission file number: 001-34785 XpresSpa Group, Inc. (Exact Name of Registrant as Specified in its Charter) Delaware 20-4988129 (State or other juri ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2018 OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___ to ___ Commission file number 001-34785 XpresSpa Group, Inc. (Exact name of registrant as specified in its charter) Delaware 20-4988129 (I.R.S. Employer Identi ...

Financial Data and Key Metrics Changes - For the year ended December 31, 2018, total revenue was $50.1 million, an increase of $1.3 million or 2.6% compared to $48.8 million in 2017 [29] - In Q4 2018, revenue was $11.5 million, a decrease of 2.3% or $0.3 million from $11.8 million in the prior year [35] - Adjusted EBITDA was negative $0.5 million in Q4 2018, compared to positive $0.4 million in the same quarter of the previous year [22] Business Line Data and Key Metrics Changes - The company generated 83% of its revenues from services and 17% from retail sales in 2018 [31] - Comparable store sales decreased by 3% on an annual basis [31] Market Data and Key Metrics Changes - XpresSpa commands approximately 50% market share in the U.S. airport spa services sector, significantly higher than its closest competitor [12] Company Strategy and Development Direction - The company aims to enhance the guest experience, develop a people-first culture, activate new partnerships, and bring health and wellness innovations to its spas [14][15] - 2019 is viewed as a transition year focused on getting the core business healthy, with plans to grow sales, improve scheduling, and launch an XpresSpa app [18] Management's Comments on Operating Environment and Future Outlook - The CEO expressed confidence in improving the financial condition and capitalizing on opportunities, despite a disappointing Q4 [5][22] - Management acknowledged significant problems with the retail supply chain and underutilization of the loyalty program, indicating areas for improvement [17] Other Important Information - The company received a strategic investment of $3 million from Calm, which is expected to enhance brand visibility and customer engagement [24] - The company plans to open its first franchise spa in Austin by Q3 2019 [19] Q&A Session Summary Question: When can we expect to hear more specifics on your near-term priorities? - The CEO stated that he is not in a position to provide further details beyond what has been outlined, as he has only been with the company for a short time [46] Question: Can you tell us about the performance in Q1? - The CEO mentioned that top line sales are performing better than in Q4, although they are still in a negative comparable environment [50] Question: Can you mention any specifics around activating new partnerships? - The CEO indicated that while he cannot disclose specific deals, there are win-win opportunities with other companies in the health and wellness space [53]