XpresSpa Group – XSPA: Wellness On The Go...Author: Morningstar Document Research / Morningstar,...

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UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K Current Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): September 12, 2019 XPRESSPA GROUP, INC. (Exact Name of Registrant as Specified in its Charter) Delaware 001-34785 20-4988129 (State or other jurisdiction of incorporation) (Commission File Number) (I.R.S. Employer Identification No.) 780 Third Avenue, 12 th Floor New York, New York 10017 (Address of Principal Executive Offices and Zip Code) Registrant’s telephone number, including area code: (646) 525-4319 Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: ¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) ¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) ¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) ¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Title of each class Trading Symbol(s) Name of each exchange on which registered Common stock, par value $0.01 per share XSPA The Nasdaq Stock Market Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). ¨ Emerging growth company ¨ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Transcript of XpresSpa Group – XSPA: Wellness On The Go...Author: Morningstar Document Research / Morningstar,...

Page 1: XpresSpa Group – XSPA: Wellness On The Go...Author: Morningstar Document Research / Morningstar, Inc. Created Date: 9/12/2019 3:29:20 PM

UNITED STATESSECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

Current Report

Pursuant to Section 13 or 15(d) of theSecurities Exchange Act of 1934

Date of Report (Date of earliest event reported): September 12, 2019

XPRESSPA GROUP, INC.

(Exact Name of Registrant as Specified in its Charter)

Delaware 001-34785 20-4988129(State or other jurisdiction of

incorporation)(Commission File Number) (I.R.S. Employer

Identification No.)

780 Third Avenue, 12th FloorNew York, New York 10017

(Address of Principal Executive Offices and Zip Code)

Registrant’s telephone number, including area code: (646) 525-4319 Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the followingprovisions: ¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) ¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) ¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) ¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Title of each class Trading Symbol(s) Name of each exchange on which registeredCommon stock,par value $0.01 per share

XSPA The Nasdaq Stock Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter)or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). ¨ Emerging growth company ¨ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with

any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

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Item 7.01. Regulation FD Disclosure. XpresSpa Group, Inc. has prepared an investor presentation to be used in connection with a presentation made to the Jefferies 2019 Fitness & WellnessSummit, a copy which is attached to this Current Report on Form 8-K as Exhibit 99.1. In accordance with General Instruction B.2 on Form 8-K, the information set forth in this Item 7.01 and the investor presentation attached to this report asExhibit 99.1 is “furnished” and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwisesubject to the liabilities of that Section, nor shall such information be deemed incorporated by reference in any filing under the Securities Exchange Act of1934, as amended, or the Securities Act of 1933, as amended. Item 9.01 - Financial Statements and Exhibits. (d) Exhibits Exhibit Number Description99.1 Investor Presentation

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by theundersigned hereunto duly authorized.

XPRESSPA GROUP, INC. Dated: September 12, 2019 By: /s/ Douglas Satzman Name: Douglas Satzman Title: Chief Executive Officer

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Exhibit 99.1

IN V E S T O R P R E S E N T A T IO N 2 0 1 9 | S ep tem b er N A S D A Q : X S P A a p reem in en t p u re - p lay h ealth an d w elln ess serv ices co m p an y

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S afe H arb o r S tatem en t T h is p resen tatio n in clu d es fo rw ard - lo o k in g statem en ts, w h ich m ay b e id en tified b y w o rd s su ch as “b eliev es,” “ex p ects,” “an ticip ates,” “estim ates,” “p ro jects,” “in ten d s,” “sh o u ld ,” “seek s,” ”fu tu re,” “co n tin u e,” o r th e n eg ativ e o f su ch term s, o r o th er co m p arab le term in o lo g y . F o rw ard - lo o k in g statem en ts relatin g to ex p ectatio n s ab o u t fu tu re resu lts o r ev en ts are b ased u p o n in fo rm atio n av ailab le to X p resS p a G ro u p as o f to d ay 's d ate, an d are n o t g u aran tees o f th e fu tu re p erfo rm an ce o f th e co m p an y , an d actu al resu lts m ay v ary m aterially fro m th e resu lts an d ex p ectatio n s d iscu ssed . A d d itio n al in fo rm atio n co n cern in g th ese an d o th er risk s is co n tain ed in X p resS p a G ro u p ’s m o st recen tly filed A n n u al R ep o rt o n F o rm 1 0 - K , Q u arterly R ep o rt o n F o rm 1 0 - Q , recen t C u rren t R ep o rts o n F o rm 8 - K an d o th er S E C filin g s . A ll su b seq u en t w ritten an d o ral fo rw ard - lo o k in g statem en ts co n cern in g X p resS p a G ro u p , o r o th er m atters an d attrib u tab le to X p resS p a G ro u p o r an y p erso n actin g o n its b eh alf are ex p ressly q u alified in th eir en tirety b y th e cau tio n ary statem en ts ab o v e . X p resS p a G ro u p d o es n o t u n d ertak e an y o b lig atio n to p u b licly u p d ate an y o f th ese fo rw ard - lo o k in g statem en ts to reflect ev en ts o r circu m stan ces th at m ay arise after th e d ate h ereo f . T rad em ark U sag e X p resS p a G ro u p th e X p resS p a G ro u p lo g o , an d o th er X p resS p a G ro u p trad em ark s, serv ice m ark s, an d d esig n s are reg istered o r u n reg istered trad em ark s o f X p resS p a G ro u p In c . an d itssu b sid iaries in th e U n ited S tates an d in fo reig n co u n tries . T h is p resen tatio n co n tain s trad e n am es, trad em ark s an d serv ice m ark s o f o th er co m p an ies . A ll su ch trad e n am es, trad em ark san d serv ice m ark s o f o th er co m p an ies are p ro p erty o f th eir resp ectiv e o w n ers . X p resS p a G ro u p In c . d o es n o t in ten d its u se o r d isp lay o f o th er p arties’ trad e n am es, trad em ark s an d serv ice m ark s to im p ly a relatio n sh ip w ith , o r en d o rsem en t o r sp o n so rsh ip o f o r b y , su ch o th er p arties . U se o f N o n - G A A P F in an cial Measu res X p resS p a u ses G A A P an d n o n - G A A P m easu rem en ts to assess th e tren d s in its b u sin ess . Item s X p resS p a rev iew s o n an o n g o in g b asis are rev en u es, C o m p S to re S ales (w h ich it d efin es assales fro m sto res o p en ed lo n g er th an a y ear co m p ared to th e sam e p erio d sales o f th o se sto res a y ear ag o ), sto re co n trib u tio n m arg in s, an d n u m b er o f tran sactio n s (w h ich is a w ay to m easu re traffic in sp as) . In ad d itio n , X p resS p a m o n ito rs sto res’ p erfo rm an ce co m p ared to its m o d el sto re m etrics to en su re th at it is co n sisten tly o p en in g sp as th at h av e th e sam e o rsim ilar retu rn d y n am ics as h isto rical sto res . X p resS p a b eliev es th e tren d s ex h ib ited b y its b u sin ess are

stro n g an d su b stan tiate its co n tin u ed in v estm en t in ad d itio n al lo catio n s an d in frastru ctu re . D isclaim ers 2

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Welln ess O n T h e G o We are th e lead er in fast - sp a serv ices, p ro v id in g p rem ier w elln ess so lu tio n s in 3 0 m in u tes o r less . D ed icated to k eep in g p eo p le lo o k in g an d feelin g th eir b est o n th e g o . O u r cu ttin g - ed g e serv ices an d p ro d u cts are d esig n ed to m o v e w ith y o u . 3

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L o g o A ltern ate L o ck u p s T h e lead in g airp o rt sp a co m p an y in th e U .S . an d th e w o rld M ark et sh a r e lead er in th e U .S . • P erfected th e fast - sp a fo rm at • We w in th e m ajo rity o f airp o rt R F P s • 5 2 co m p an y - o w n ed lo catio n s • 1 fran ch ise lo catio n • Mark et o p p o rtu n ity o f o v er 1 5 0 co m p an y - o w n ed in - airp o rt d o m estic lo catio n s • A d d itio n al fran ch isin g an d in tern atio n al o p p o rtu n ities 4

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In v estm en t H ig h lig h ts • We d o m in ate th e d o m estic m ark et • A ttractiv e U n it E co n o m ics • V ast In - A irp o rt E x p an sio n P o ten tial • N ew L ead ersh ip sp earh ead in g b u sin ess im p ro v em en ts • P o sitiv e co m p arab le sto re sales y ear - to - d ate • A ch iev ed A d ju sted E B IT D A P ro fitab ility in seco n d q u arter • R ed u cin g sto re - lev el an d o v erh ead co sts • Im p lem en tin g tech n o lo g y - b ased p ro cess im p ro v em en ts • Im p ro v ed C ap ital S tru ctu re th ro u g h recen t D eb t an d E q u ity T ran sactio n s 5

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In 2 0 1 9 , air trav el is estim ated to g ro w 6 % . 1 T h e a v erag e w ait tim e is ap p ro x im ately 1 3 7 m in u tes . 2 ¹ S tatistica 2 A v iatio n P ro s, 2 0 1 7 7

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We o ffer b u sy p eo p le a n o p p o rtu n ity to relax an d ren ew o n th e g o B ran d G u id elin es 8

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C u sto m er T estim o n ials 9 “Wh at to d o d u rin g a 3 - h o u r lay o v er…Man icu re? I th in k y es! T h an k s @X p resS p a!!” - A lliso n G . (T w itter) “I left m y ey e - g lasses th ere (m ay b e b ecau se I w as to o relax ed ) an d X p resS p a sen t th em all th e w ay b ack to Italy ! Wh at g reat cu sto m er serv ice!” - Man n y C . “G reat serv ice an d m assag e at X p resS p a D F W. I lo o k fo rw ard to ch eck in g o u t o th er lo catio n s.” - L aressa W. “A irp o rt sp as are th e g reatest id ea ev er. Mak es m e w an t to b e early fo r m y flig h ts. # X p resS p a” - K atie Z . “@X p resS p a is m y n ew w ay to cru sh a 2 - h o u r d elay !” - E rin S . (T w itter) “X p resS p a, m y tired co n v en tio n feet ap p reciate y o u !” - Jessica L .

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D O U G S A T Z MA N , C E O • F o rm er C E O , Jo e C o ffee C o m p an y • F o rm er C E O , L e P ain Q u o tid ien - U S • F o rm er S V P , S tarb u ck s C o ffee - E ME A • F o rm er V P , S tarb u ck s C o ffee - U S L icen se S to res (A irp o rts, L o d g in g , U n iv ersities, H ealth care, O ffices) E x p erien ced S en io r Man ag em en t R IC H A R D B A C H MA N N S en io r D irecto r o f O p eratio n s • F o rm er D irecto r - R etail O p eratio n s, T u m i • F o rm er D irecto r - R etail an d S easo n al O p eratio n s, B ro o k sto n e • F o rm er S to re Man ag er, B en etto n • F o rm er S to re Man ag er, U rb an O u tfitters • F o rm er S to re Man ag er, B an an a R ep u b lic A N G E L IA Y A U N S en io r D irecto r o f S p as X p resS p a, N o rth A m eric a • F o rm er S en io r D irecto r o f S to res, L u x o ttica L u x u ry • F o rm er R eg io n al D irecto r, G o d iv a • F o rm er R eg io n al Man ag er S afilo /S o lstice 1 0 S C O T T MIL F O R D C h ief P eo p le O fficer • F o rm er V P - P eo p le O p eratio n s, S o u lC y cle • F o rm er S V P - H R , L e P ain Q u o tid ien - G lo b al • F o rm er C h ief H R O fficer, T o w n S p o rts - In tern atio n al • F o rm er V P - P artn er R eso u rces, S tarb u ck s C o ffee

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L as V eg as S alt L ak e C ity 2 2 3 P h o en ix 2 O ran g e C o u n ty 1 L o s A n g eles 2 S an F ran cisco 3 D en v er 2 Min n eap o lis 2 3 C h icag o 1 P ittsb u r g h 2 A m sterd am 3 D u b ai 2 D allas 3 H o u sto n 2 N ew Y o rk 9 P h ilad elp h ia Wash in g to n , D C 1 1 R aleig h 1 C h arlo tte 2 A tlan ta O rlan d o 3 4 Miam i 1 E stab lish ed A irp o rt P r esen ce 4 8 d o m estic sto res 1 1 5 in t’l sto res 2 0 1 9 D ev elo p m en ts • A u stin - co m p an y • A u stin - fran ch ise • L as V eg as • P h ilad elp h ia • A tlan ta 2 A u stin

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1 2 A tlan ta T erm in al D 1 2

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1 3 R aleig h - D u rh am 1 3

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JF K T erm in al 8 1 4

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1 5 A m sterd am , N eth erlan d s 1 5

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1 6 D u b ai, U A E

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1 b ased o n co m p an y w eb sites as o f 9 /4 /2 0 1 9 D o m in an t D o m estic Mark et S h are P o sitio n T O T A L D O ME S T IC T O T A L D O ME S T IC T O T A L D O ME S T IC T O T A L D O ME S T IC S T O R E S S T O R E S S T O R E S S T O R E S S T O R E S S T O R E S S T O R E S S T O R E S B E R E L A X 1 T E R MIN A L G E T A WA Y 1 MA S S A G E B A R 1 1 7 5 3 4 8 1 0 4 4 8 1 3 1 0 4

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1 1 S t r o n g U n it L ev el E co n o m ics 8 3 % S erv ice R ev en u e 1 7 % R etail R ev en u e A V E R A G E B O X S IZ E 1 , 0 3 4 S Q . F T A U V / S A L E S $ 8 6 2 ,7 3 3 S A L E S P E R S Q . F T . $ 8 3 4 A V E R A G E IN V E S T ME N T C O S T $ 4 0 0 ,0 0 0 P A Y B A C K P E R IO D 2 .3 y ears 1 8

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1 9 B u sin ess P rio rities N E A R E R T E R M L O N G E R T E R M • B u ild in g team s • In creasin g th e av erag e tick et th ro u g h p ro d u ct asso rtm en t an d u p sellin g serv ices • S taffin g u p th ro u g h recru itin g , train in g , an d reten tio n w h ile m an ag in g lab o r co sts m o re effectiv ely • R ed u cin g G & A ex p en d itu res • S electiv ely o p en in g h ig h p erfo rm in g n ew sp as th ro u g h a strateg ic ap p ro ach to d ev elo p m en t • S electiv ely ren o v atin g sp as to elev ate b ran d p ercep tio n s • E lev atin g th e cu sto m er ex p erien ce • D ev elo p in g a p eo p le first cu ltu re • A ctiv atin g n ew p artn ersh ip s • B rin g in g h ealth an d w elln ess in n o v atio n to th e sp as th ro u g h n ew p ro d u cts, serv ices, an d tech n o lo g y 1 9

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T h e E x p erien ce E co n o m y & Welln ess In d u stry • N early 1 m illio n X p resS p a cu sto m ers an n u ally • X p resS p a serv ices are " n o t - A m azo n ab le” • C o n su m er S p en d in g p attern s are sh iftin g to ex p erien ce - b ased sp en d in g . 7 2 % o f m illen n ials w o u ld rath er sp en d m o n ey o n ex p erien ces th an o n m aterial g o o d s . 3 • Millen n ials S p en d N early 2 5 % o f D isp o sab le In co m e o n H ealth an d Welln ess. 2 3 F o rb es, 2 0 1 7 1 G lo b al Welln ess In stitu te , 2 0 1 8 2 Mark et Wired , 2 0 1 7 2 0 • T h e g lo b al w elln ess in d u stry is a $ 4 . 2 trillio n m ark et. 1

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X p r esS p a is th e an sw er to g ro w in g trav eler d em an d s In creased trav elers, secu rity an d w ait tim es h av e d riv en in n o v atio n an d g ro w th in airp o rt retail • T rav elers at larg e h u b airp o rts ty p ically sp en d ~ 1 3 7 m in u tes in th e airp o rt after g o in g th ro u g h secu rity . 1 • N early 2 0 % o f flig h ts w ere d elay ed in 2 0 1 8 . 2 P rem iu m co n cep ts lik e X p resS p a are su ited fo r ty p ical trav eler d em o g rap h ic • F req u en t fliers ( 2 3 % o f trav elers) h av e a H H I > $ 1 0 0 ,0 0 0 . 3 • 7 0 % o f p u rch ases o ccu r o n im p u lse b ecau se th ese afflu en t cu sto m ers are b o red , ru sh ed , an d stressed . 4 A irp o rt in frastru ctu re sp en d in g is in creasin g • $ 1 .2 - 1 .5 trillio n is ex p ected to b e sp en t o n g lo b al airp o rt in frastru ctu re d ev elo p m en t u p to 2 0 3 0 . 5 1 A v iatio n P ro s, 2 0 1 7 2 T R A N S T A T S , 2 0 1 8 4 A irp o rt R ev en u e N ew s 2 1 3 A rb itro n 5 N ew Mark et R esearch & Micro Mark et Mo n ito r

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1 5 S ig n ifican t G r o w th O p p o rtu n ities • B etter em p lo y ee recru itm en t / reten tio n • I m p ro v e lab o r o p tim izatio n • C alm strateg ic p artn ersh ip • Im p ro v e sto re p ro d u ctiv ity • R o ll - o u t n ew sto re d esig n • Im p ro v e in - sto re tech n o lo g y • Im p ro v e co rp o rate cu ltu re • F u rth er p en etratio n o f U .S . airp o rt lo catio n s • I n tern atio n al airp o rt lo catio n s • F ran ch isin g – first lo catio n o p en in g Q 3 2 0 1 9 • L ev erag e real estate v alu e th ro u g h strateg ic m ark etin g p artn ersh ip s • O th er strateg ic p artn ersh ip s 2 2 C O MP A R A B L E S T O R E E X P A N S IO N

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S trateg ic P artn ersh ip w ith C alm , th e L ead in g S leep , Med iatio n , an d R elax atio n A p p • S trateg ic p referred eq u ity in v estm en t in X p resS p a o C ap ital b ein g u sed to raise b ran d p ro file w h ile en h an cin g cu sto m ers’ ex p erien ce • G ain ed access to C alm ’s su b stan tial an d g ro w in g 5 0 m illio n su b scrib er b ase th at are in terested in h ealth an d w elln ess • D em o n strates th e in h eren t v alu e o f o u r in d u stry - lead in g p latfo rm 2 3

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IN V E S T O R P R E S E N T A T IO N 2 0 1 9 | S ep tem b er N A S D A Q : X S P A a p reem in en t p u re - p lay h ealth an d w elln ess serv ices co m p an y