Results for the Second Quarter Ended June 30, 2023
For the second quarter of 2023, total revenue increased $17.8 million, or 30%, to $77.3 million, up from $59.6 million in the prior year period.
This increase included a corresponding North America same store sales increase of 15%.
Net income totaled $27.5 million, or earnings per basic share
of $1.44, compared to net income of $31.5 million, or earnings per basic share of $3.28, in the prior year period. The slightly lower net income was the result of $5.3 million of higher overall profitability, offset by a $0.4 million
increase in non-cash contingent consideration primarily related to the Rumble acquisition, a $1.6 million increase in non-cash equity-based compensation expense,
and a $7.2 million increase in write down of brand assets associated with the acquisition of Rumble founder studios in the period. Please see the table at the end of this press release for a calculation of the basic and diluted loss per share
for the quarter ended June 30, 2023.
Consistent with previous periods, the Rumble acquisition non-cash
contingent consideration liability is marked-to-market based on Xponentials share price, contributing to a $31.3 million gain in the second quarter of 2023.
Adjusted Net Income for the second quarter 2023, which excludes the $31.3 million non-cash contingent
consideration gain related primarily to the Rumble acquisition, $0.7 million related to the re-measurement of the Companys tax receivable agreement, and $7.2 million related to the write down
of brand assets, was $4.2 million, or a net income of $0.05 per basic share, on a share count of 33.0 million shares of Class A Common Stock.
Adjusted EBITDA, which is defined as net income (loss) before interest, taxes, depreciation and amortization, adjusted for equity-based compensation and
related employer payroll taxes, acquisition and transaction expenses, litigation expenses, financial transaction fees and related expenses, tax receivable agreement remeasurement and write down of brand assets, increased 43% to
$25.3 million, up from $17.6 million in the prior year period.
Liquidity and Capital Resources
As of June 30, 2023, the Company had approximately $40.2 million of cash, cash equivalents and restricted cash and $265.9 million in total
long-term debt. Net cash provided by operating activities was $30.6 million for the three months ended June 30, 2023.
2023 Outlook
Xponential is increasing full-year 2023 guidance for system-wide sales, revenue, and Adjusted EBITDA, and re-affirming
guidance for new studio openings as follows:
|
|
|
New studio openings in the range of 540 to 560, or an increase of 8% at the midpoint as compared to full year
2022; |
2