OneSpaWorld Holdings Limited

Thank you for standing by. This is the conference operator. Welcome to the One Spa World fourth quarter and fiscal year 2021 earnings call. As a reminder, all participants are in listen-only mode and the conference is being recorded. After the presentation, there'll be an opportunity to ask questions. To join the question queue, you may press star then one on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star and zero. I would now like to turn the conference over to Alison Malkin of ICR. Please go ahead.

Thank you. Good morning and welcome to One Spell World's fourth quarter and fiscal year 2021 earnings call and webcast. Before we begin, I'd like to remind you that certain statements and information made available on today's call and webcast may be deemed to constitute forward-looking statements. The COVID-19 pandemic continues to have a significant impact on our operations, cash flow, and financial position. The uncertain and dynamic nature of current conditions and its ongoing impact could materially alter our outlook. These forward-looking statements reflect our judgment and analysis only as of today, and actual results may differ materially from current expectations based on a number of factors affecting our business. Accordingly, you should not place undue reliance on these forward-looking statements. For a more thorough discussion of the risks and uncertainties associated with the forward-looking statements to be made in this conference call and webcast, we refer you to the disclaimer regarding forward-looking statements that is included in our fourth quarter and fiscal year 2021 earnings release. which was furnished to the SEC today on Form 8 . We do not undertake any obligation to update or alter any forward-looking statements, whether as a result of new information, future events, or otherwise. In addition, the company may refer to certain adjusted non-GAAP metrics on this call. Explanation of these metrics can be found in our earnings release issued earlier this morning. Joining me today are Leonard Fluxman, Executive Chairman and Chief Executive Officer, and Stephen Lazarus, Chief Financial Officer and Chief Operating Officer. Leonard will begin with a review of our fourth quarter and fiscal year 2021 performance and provide an update on our operations and our key priorities. Then Stephen will provide more details on the financials and our liquidity. I would now like to turn the call over to Leonard.

Thank you, Alison. Good morning and welcome to OneSpot World's fourth quarter and fiscal year 2021 results conference call. We delivered a strong fourth quarter, which represented an excellent finish to the year. The period was highlighted by significant acceleration in our top and bottom line trend. Total revenue for the fourth quarter nearly doubled from the third quarter and increased significantly year over year. Key operating metrics compared favorably to fourth quarter 2019, representing our most recent comparable period of normal operations. We had positive adjusted EBITDA for the first time since the pandemic began, and Q4 cash burn was better than our initial outlook. We attribute our strength and performance to our enhanced business model, which executed a seamless return to service even as we faced extraordinary challenges. Overall, the year was a successfully executed strategy which furthered our market leadership in the operation of health and wellness centers at sea and at destination resorts on land. Our return to service protocols and readiness, as well as our team's flawless operating execution, were further tested with the anticipated emergence of the Omricon COVID-19 variant in December, which resulted in moderation of our trends late in the fourth quarter and at the start of Q1 2022. More recently, our positive performance trajectory has resumed on the strength of our business model and staff. We expect our performance trends to accelerate throughout 2022 and generate sequential growth with our annual performance expected to deliver positive adjusted EBITDA, and positive adjusted net income. I want to thank our entire team for the tireless efforts that have contributed to our improved performance. Your combined efforts led to an outstanding experience for the guests that visited our health and wellness centers as more voyages resumed and occupancy increased at our destination resort spas. Turning now to the highlights of the quarter. Total revenues were 85.7 million, nearly double third quarter total revenues of 43.6 million. This growth reflects contributions from health and wellness centers that reopened on 118 ships that resumed operations and the contribution from 48 destination resort spas. Adjusted EBITDA was positive $4.8 million with positive contribution from our health and wellness centers onboard cruise ships and in destination resort spas on land. And we ended the quarter with total liquidity of $46 million. We had many accomplishments for the quarter. Most notably, our flawless return to service continued. As mentioned, the quarter saw us ready and trained staff to re-embark on an additional 40 cruise ships, At quarter end, we had health and wellness centers on 118 ships that had resumed voyages and expect to resume services on 167 ships by the end of the second quarter and all contracted ships by the end of the third quarter. In 2022, we anticipate operating health and wellness centers on 12 new ships, new ship builds that will be introduced into service by our cruise line partners. we saw record demand by cruise ship guests for our services. While capacity on cruise ships remains below historical levels, we were very pleased to see continued high demand for our services. Key operating metrics during the quarter of 2021 also compared favorably with our fourth quarter 2019 performance, the most recent comparable period of normalized operations. For example, we continued to see record penetration rates of overall cruise ships serviced in our health and wellness centers. Additionally, pre-booked statistics and average guest spend handily exceeded 2019 performance. We saw growth across key operating metrics as compared to fourth quarter of 2019, the most recent quarter with operations not impacted by COVID. To this end, the quarter included double-digit growth in average service spend per guest and average guest spend with revenue per staff per day up in the high single digits. Pre-booking as a percentage of service revenue was another positive story with a 300 basis points increase versus Q4 of 2019. In keeping with One Spa World's tradition of supporting our onboard staff, our corporate team we introduced our traveling sales and revenue support teams commensurate with the increase in volume of ships returning to service. Ensuring a flawless return to service will continue to be our top priority going forward with the team completing numerous training and service orders while onboard vessels. We had a tremendous response from prior personnel and new applicants who have been eager to come back to our health and wellness centers. At year end, we successfully placed 2,200 cruise ship personnel on vessels for actual and anticipated voyages, overcoming the challenges of the pandemic, securing visas, COVID testing, and other travel restrictions. Despite these hurdles, our team members are ecstatic to be back at sea. By the end of the first quarter, we expect to have 2,339 staff re-embarked on 126 vessels. As a leader in training and certification, we were also pleased to see our London Wellness Academy reopen during the third quarter. The Academy is experiencing very strong demand from applicants with nearly 300 students trained since reopening. Innovation in our service and product offering continued, and we continued to expand our offering in many spa technologies with Somage, CoolSculpting, TruSculpt, and Microneedling, among other therapies, and now including IV infusions. In our continued focus on providing recovery service, we began to offer HyperRise service and retail product on board. As we look ahead, we will continue to invest in our exemplary stops, constantly innovate and guest experience service and product offerings, and leverage our irreplaceable global operating infrastructure to build upon our preeminent position. Clearly, we believe in our unwavering strategy throughout the devastating pandemic positions, which positions us to deliver long-term revenue and earnings growth across the global expanse of our operations, always seeking to enhance value for all our one small world stakeholders. With that, I'll turn the call over to Stephen, who will comment on our fourth quarter and fiscal year 2021 results and our liquidity position. Stephen.