XpresSpa Group Inc. (XSPA) stock surged by 6.36% in the last trading closed whereas the XSPA stock declines by 13.59% in the pre-market trading after XSPA announced its fourth quarter 2020 financial results. The XpresSpa Group is a multinational health and wellness business. With 45 outlets in 23 airports around the world, the XpresSpa Group’s core asset, XpresSpa, is a leading airport seller of spa services and related health and wellness products.
Fourth Quarter Financial Results
- For the fourth quarter 2020 the revenue was $0.3 million relative to $10.9 million for the same time in 2019. The decline in sales was attributed to the negative effects of COVID-19, which resulted in XSPA temporarily closing essentially all global spa locations due to local authorities classifying the spa locations as “non-essential services.”
- The General and administrative expense was $5.0 million for the fourth quarter of 2020 and 2019, both.
- XSPA impairment of asset expense relatively increased to $9.0 million from $5.2 million in the previous year.
- The cash and cash equivalents was calculated as $89.8 million whereas it does not include restricted cash. The total current assets were of $91.8 million and total current liabilities were of $13.5 million.
- Cost of sales fell to $2.4 million from $9.2 million in the fourth quarter of the previous year. The decrease was attributed to lower variable costs as a result of lower XpresSpa spa sales, as well as a decline in occupancy costs as a result of rent reductions from airports.
Other Recent Development
Recently on March 29, 2021, XSPA announced that they will be expanding their COVID-19 testing service through providing travelers with another option with a fast PCR-based testing platform. With the addition, XpresCheck will be able to expand the availability of accelerated PCR–based COVID-19 tests at XpresCheck airport sites, beginning with pilots today at John F. Kennedy International Airport and next week at George Bush Intercontinental Airport in Houston.
The Accula SARS-CoV-2 Test from Thermo Fisher Scientific will be available via XSPA. The U.S. Food and Drug Administration (FDA) has granted the research procedure an Emergency Use Authorization, and the results are available in 30 minutes.