Xponential Fitness, Inc. (NYSE: XPOF), the largest global franchisor of boutique fitness brands, today provided 2022 operating highlights and announced the Company’s participation at the ICR 2023 Conference to be held January 9-11, 2023 in Orlando, Florida and the Jefferies Winter Restaurant, Foodservice, Gaming, Lodging and Leisure Summit to be held January 22-24, 2023 in Beaver Creek, Colorado.
The Company also announced the repurchase of 85,340 shares of its Convertible Preferred Stock, which prior to the repurchase would have been convertible into 5.9 million shares of Class A common stock. The repurchase will be funded with incremental term loans in the aggregate amount of $130.0 million and available cash.
2022 Operating Highlights
Please note that all metrics below represent North America only, unless noted.
For the full year ended December 31, 2022, the Company:
- Surpassed 2,600 open studios, and increased total licenses sold to over 5,400 across 10 brands globally;
- Grew total members by 32% year-over-year to 590,000, up from 449,000 in 2021;
- Grew studio visits by 32% year-over-year to 39.2 million, up from 29.7 million in 2021;
- Increased system-wide sales(1) to $1.03 billion, up 46% from $710 million in 2021;
- Delivered same store sales(2) growth of 25%, compared to 41% in 2021; and
- Achieved Q4 2022 run-rate average unit volume (AUV)(3) of $522,000, compared to $446,000 in Q4 2021.
“It was inspiring to see the enthusiasm shared by the more than 2,000 attendees who participated in our annual convention last month,” said Anthony Geisler, CEO of Xponential Fitness, Inc. “This enthusiasm is no doubt rooted in Xponential’s strong annual performance. Double-digit growth across membership, same store sales and AUV compared to the prior year depict a business that is firing on all cylinders. We enter the new year fully energized, and I could not be prouder of our team and franchisees for the success we achieved together in 2022.”
2022 Outlook
The Company expects to meet or exceed the high-end of the previously provided full year 2022 outlook:
- New studio openings of 511, at the top half of the guidance range of 500 to 520, and an increase of 53% as compared to full year 2021;
- North America system-wide sales of $1.03 billion, exceeding the high end of the guidance range of $995.0 million to $1.005 billion, and an increase of 46% as compared to full year 2021;
- Revenue in the range of $235.0 million to $240.0 million, or an increase of 53% at the midpoint as compared to full year 2021; and
- Adjusted EBITDA(4) in the range of $70.0 million to $74.0 million, or an increase of 164% at the midpoint compared to full year 2021.
Xponential Fitness plans to report its fourth quarter and full year 2022 results and provide its full year 2023 outlook in early March. The date of the Company’s earnings conference call will be announced in the coming weeks.
Convertible Preferred Stock Repurchase and Incremental Term Loans
The Company today announced that it has entered into a privately negotiated preferred stock repurchase agreement with certain holders of its outstanding Convertible Preferred Stock and an amendment to its existing financing arrangement that provides for, among other things, incremental term loans in an aggregate principal amount of $130.0 million. The Company agreed to pay aggregate consideration of $131.0 million in cash in exchange for the repurchase of 85,340 shares of Convertible Preferred Stock. These shares prior to repurchase would have been convertible into 5.9 million shares of Class A Common Stock. The closing of the incremental term loans and the repurchase is expected on or about January 13, 2023, subject to customary closing conditions. The Company expects to fund the repurchase with the additional borrowings under the incremental term loans and available cash. The closing of the repurchase and the closing of the incremental term loans are cross conditional.
Participation at Upcoming Conferences
The Xponential Fitness management team will be participating at the ICR 2023 Conference on January 9-11, 2023 in Orlando, Florida. Anthony Geisler, Chief Executive Officer, and John Meloun, Chief Financial Officer, are scheduled to present on Monday, January 9, 2023 at 12:30 p.m. ET and will participate in meetings with investors throughout the conference.
In addition, management will be participating in the Jefferies Winter Restaurant, Foodservice, Gaming, Lodging and Leisure Summit to be held January 22-24, 2023 in Beaver Creek, Colorado. The Company’s presentation in conjunction with the event will be available beginning on January 21, 2023 at 8:00 a.m. ET.
Both presentations will be broadcast over the Internet and can be accessed in the Investor Relations section of Xponential Fitness’ website at https://investor.xponential.com/.
About Xponential Fitness, Inc.
Xponential Fitness, Inc. (NYSE: XPOF) is the largest global franchisor of boutique fitness brands. Through its mission to make boutique fitness accessible to everyone, the Company operates a diversified platform of ten brands spanning across verticals including Pilates, indoor cycling, barre, stretching, rowing, dancing, boxing, running, functional training and yoga. In partnership with its franchisees, Xponential Fitness offers energetic, accessible, and personalized workout experiences led by highly qualified instructors in studio locations across 48 U.S. states and Canada, and through master franchise or international expansion agreements in 14 additional countries. 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 offering one-on-one and group stretching services; Row House, the largest franchised indoor rowing brand in the United States; AKT, a dance-based cardio workout combining toning, interval and circuit training; YogaSix, the largest franchised yoga brand in the United States; Pure Barre, a total 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 functional training and strength-based program.
Disclaimer:
The information contained in this article is for educational and informational purposes only and is not intended as a health advice. We would ask you to consult a qualified professional or medical expert to gain additional knowledge before you choose to consume any product or perform any exercise.
