Xponential Fitness(US:XPOF)2024-08-01 20:11Revenue Performance - Revenue decreased by 1% to $76.5 million in Q2 2024, down from $77.3 million in Q2 2023[3] - Total revenue for Q2 2024 was $76.5 million, a decrease of 1.1% compared to $77.3 million in Q2 2023[20] - Franchise revenue increased to $43.0 million in Q2 2024, up 22.0% from $35.1 million in Q2 2023[20] Profitability and Loss - Net loss totaled $13.7 million, or a loss of $0.29 per basic share, compared to net income of $27.5 million, or earnings of $1.44 per share in the prior year[4] - Net loss attributable to Xponential Fitness, Inc. was $9.1 million in Q2 2024, compared to a net income of $18.4 million in Q2 2023[20] - Operating loss for Q2 2024 was $2.4 million, a significant decline from an operating income of $36.5 million in Q2 2023[20] - Adjusted net income was $0.7 million, or a loss of $0.03 per basic share, compared to adjusted net income of $4.2 million, or earnings of $0.05 per share[5] - Adjusted net income attributable to Xponential Fitness, Inc. was $710 thousand for Q2 2024, down from $4,208 thousand in Q2 2023[23] - The diluted earnings per share for Q2 2024 was $(0.03), compared to $0.07 in Q2 2023, highlighting a decline in profitability[23] Cash Flow and Debt - The company reported a net cash provided by operating activities of $5.7 million for the six months ended June 30, 2024[7] - The company generated $5,696 thousand in net cash from operating activities for the six months ended June 30, 2024, a decrease of 81.4% from $30,565 thousand in the prior year[21] - Cash used in investing activities totaled $11,761 thousand for the six months ended June 30, 2024, compared to $5,613 thousand in the prior year[21] - The company borrowed $38,701 thousand from long-term debt during the six months ended June 30, 2024, down from $126,100 thousand in the same period of 2023[21] - As of June 30, 2024, the company had approximately $26.0 million in cash and $330.1 million in total long-term debt[7] Asset and Liability Management - Total assets decreased to $475.2 million as of June 30, 2024, from $528.7 million at the end of 2023[19] - Total liabilities decreased to $576.0 million as of June 30, 2024, from $616.8 million at the end of 2023[19] - Goodwill decreased to $163.0 million as of June 30, 2024, from $171.6 million at the end of 2023[19] - The company reported an impairment of goodwill and other assets of $12.1 million in Q2 2024, compared to $7.2 million in Q2 2023[20] - The company incurred an impairment of goodwill and other assets amounting to $12,089 thousand for the six months ended June 30, 2024, up from $7,238 thousand in the prior year[21] Operational Metrics - Quarterly run-rate average unit volume (AUV) was $638,000, a 10% increase year-over-year[1] - System-wide sales growth is driven by new studio openings and increases in same store sales, with franchisees contributing approximately 7% and 2% of sales as royalty and marketing fund revenue, respectively[24] - Same store sales are defined as studios generating positive sales for at least 13 consecutive months, providing insight into existing studio performance[25] - Average Unit Volume (AUV) growth is primarily influenced by same store sales and new studio openings, reflecting studio economics[26] - The company expects gross new studio openings to be in the range of 500 to 520, a decrease of 8% at the midpoint compared to 2023[9] Restructuring and Charges - Restructuring and related charges amounted to $2,325 thousand in Q2 2024, with no charges reported in the same period last year, reflecting ongoing restructuring efforts[23]