The company expects strong second quarter results and is on track to meet or exceed full-year guidance.
Xponential Fitness, Inc. (NYSE: XPOF), the world’s largest franchisor of boutique fitness brands, today provided second quarter 2022 operating highlights and announced that it will release its second quarter 2022 financial results on Thursday, August 11. 2022 after market close.
“Xponential Fitness expects to deliver strong results for the second quarter of 2022 and has continued to strengthen its position as a leading boutique fitness provider globally,” said Anthony Geisler, CEO of Xponential Fitness, Inc. “We saw consistent strength across all of our key operating metrics in the second quarter as consumers continue to prioritize health and wellness as a necessary investment, not a discretionary spend. While no one is completely immune to inflation or general macroeconomic uncertainty, we are meeting our expectations. Xponential entered the second half of 2022 on solid ground and is on track to meet or exceed guidance metrics for the year.”
Second Quarter 2022 Operational Highlights
For the quarter ended June 30, 2022, the Company provides the following preliminary results. Note that all figures are for North America unless otherwise noted as global:
- Opened 128 studios, increasing global open studios to 2,357;
- Sold 251 licenses, bringing total licenses sold to 4,935 across 10 brands globally;
- Increased total membership by 32% year over year to 539,000, up from 408,000 in the second quarter of 2021;
- Increased studio visits by 28% year-over-year to 9.7 million, up from 7.6 million in the second quarter of 2021;
- Increased sales throughout the system(1) to $250 million, up 45% from $172 million in the second quarter of 2021;
- Sales delivered in the same store(two) 25% growth, compared to 129% in the second quarter of 2021; Y
- Average Unit Volume (AUV) Run Rate Achieved in Q2 2022(3) of $480,000, compared to $384,000 in the second quarter of 2021.
Second Quarter 2022 Conference Call
Xponential Fitness will release its second quarter 2022 financial results on Thursday, August 11, 2022 after the market close. Management will host a conference call to discuss the results at 1:30 pm PT / 4:30 pm ET on the same day.
To access the event by phone, please dial (877) 407-9716 and provide conference ID 13730206 approximately 15 minutes prior to start time to allow time to register. Callers from abroad must dial +1 (201) 493-6779 and provide the same Conference ID.
The call will also be webcast live and can be accessed on the Investor Relations section of Xponential Fitness’ website at https://investor.xponential.com/. To listen to the live webcast, please visit the site at least 15 minutes before start time to register, download and install any necessary audio software.
For those unable to join the live presentation, a replay of the call will be available after the live presentation through August 25, 2022. To access the replay, dial (844) 512-2921 (USA). . and Canada) or +1 (412) 317-6671 (international) and enter PIN number: 13730206. A replay of the webcast will also be available after the event, accessible in the Investor Relations section of Xponential Fitness & CloseCurlyQuote; website at https://investor.xponential.com/.
About Xponential Fitness, Inc.
Xponential Fitness, Inc. (NYSE: XPOF) is the world’s largest franchisor of boutique fitness brands. Through its mission to make boutique fitness accessible to all, the Company operates a diversified platform of ten brands spanning verticals including Pilates, indoor cycling, barre, stretching, rowing, dance, boxing, running, functional training and yoga. In partnership with its franchisees, Xponential Fitness offers energetic, accessible and personalized training experiences led by highly qualified instructors at studio locations in 48 US states and Canada, and through master franchise or international expansion agreements in 12 countries. additional. Xponential Fitness’ portfolio of brands includes Club Pilates, the largest Pilates brand in the United States; CycleBar, the largest indoor cycling brand in the United States; StretchLab, a concept that offers individual and group stretching services; Row House, the largest franchised indoor rowing brand in the United States; AKT, a dance-based cardio workout that combines toning, intervals, and circuits; YogaSix, the largest franchised yoga brand in the United States; Pure Barre, a full-body workout that uses the ballet barre to perform small isometric movements, and the largest Barre brand in the United States; STRIDE, a treadmill-based cardio and strength training concept; Rumble, a boxing-inspired full-body workout; and BFT, a strength-based and functional training program. For more information, visit the Company’s website and CloseCurlyQuote at xponential.com.
This press release contains forward-looking statements that are based on current expectations, estimates, forecasts and projections based on management’s judgment, beliefs, current trends and anticipated performance, including statements about preliminary financial results and operational highlights for the quarter ended June 30. , 2022, timing of the second quarter 2022 earnings release and full-year 2022 financial guidance. 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, among others, the impact of the COVID-19 pandemic on our business and franchisees; our relationships with master franchisees and franchisees; difficulties and challenges in opening studios by franchisees; the ability of franchisees to generate sufficient income; risks related to expansion in international markets; loss of reputation and brand recognition; material weakness in our internal control over financial reporting; and other risks as described in our filings with the SEC, including our Annual Report on Form 10-K for the full year ended December 31, 2021 filed by Xponential Fitness with the SEC and other periodic reports filed with the SEC. Other unknown or unpredictable factors or underlying assumptions that later prove 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, levels 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 noted, and Xponential Fitness undertakes no obligation to update such information, except as required by applicable law.
1System-wide sales represent the gross sales of all studios. System-wide sales include franchisee sales that are not revenue earned by us under GAAP. Although we do not record franchisee sales as revenue, and such sales are not included in our consolidated financial statements, this operating metric is related to our revenue because we receive approximately 7% and 2% of franchisee sales as revenue. for royalties and marketing fund. income, respectively. We believe this operational measure helps understand how we earn our royalty income and marketing fund income and is important in evaluating our performance. System-wide sales growth is driven by new studio openings and increased same-store sales. Management reviews system-wide sales on a monthly basis, allowing us to assess changes in our franchise revenue, overall studio performance, the health of our brands, and the strength of our market position relative to the competition .
two Same store sales refer to period-to-period sales comparisons for the study base. We define the same store sales base to include studios in North America that have been open for at least 13 calendar months as of the measurement date. Any transfer of ownership of a studio does not affect this metric. We measure same-store sales based solely on monthly sales reported by franchisees. This measure highlights the performance of existing studios, while excluding the impact of new studio openings. Management reviews same-store sales to assess the health of franchised studios.
3The AUV is calculated by dividing the sales during the applicable period for all studies being measured by the number of studies being measured. The quarterly run rate AUV consists of the average quarterly sales for all studies that are at least 6 months old at the beginning of the respective quarter, multiplied by four. The monthly execution rate AUV is calculated as the monthly AUV multiplied by twelve, for studies that are at least 6 months old at the beginning of the respective month. AUV’s growth is primarily due to changes in same-store sales and is also influenced by new studio openings. Management reviews the AUV to assess the economics of the study.