OneSpaWorld Holdings Limited

Good day and welcome to the OneSpar World third quarter 2022 earnings conference call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on a touchtone phone. To withdraw your question, please press star, then two. Please note this event is being recorded. I would now like to turn the conference over to Alison Malkin with ICER. Please go ahead.

Thank you. Good morning and welcome to One Spa World third quarter fiscal 2022 earnings call and website. Before we begin, I'd like to remind you that certain statements and information made available on today's call and website may be deemed to constitute forward-looking statements. These forward-looking statements reflect our judgment and analysis 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 third quarter 2022 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. An explanation of these metrics can be found in our earnings release issued earlier this morning. Joining me today are Leonard Fluxman, Executive Chairman, Chief Executive Officer and President, and Steven Lazarus, Chief Financial Officer and Chief Operating Officer. Leonard will begin with a review of our third quarter 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 One Small World's third quarter 2022 results conference call. I'm very pleased to report quarterly net revenues, which were the highest in the company's history with our third quarter results. Our record-breaking performance was highlighted by net revenues rising 12% above the 2019 third quarter, positive net income and positive cash flow. We achieved these impressive results despite passenger load levels remaining below historical levels and as ships continued to return to service. I'm proud of our team's hard work and dedication since returning to service, including our outstanding innovation and implementation of enhanced services and product offerings and operating capabilities. This drove high sales productivity from growing strength across virtually all of our key operating metrics. Our third quarter results coming out of an unprecedented adverse impact on our business during the pandemic period attests to our company's unique positioning as the preeminent operator of health and wellness centers at sea and on land to drive extraordinary value for our cruise line and resort partners, sustained long-term growth and increasing value for One Spa World stakeholders. As we look ahead, we expect our business model and strategy to generate sustained long-term profitable growth. Now turning to the highlights of our quarter, total revenues were $162.3 million as compared to $43.6 million in the third quarter of 2021. This growth reflects contributions from health and wellness centers that reopened on 172 ships that resumed operation and the contribution from 48 destination resort spas. Adjusted EBITDA was positive $18.3 million, an increase of $22.9 million from a loss of $4.6 million in the third quarter of 2021. And we ended the quarter with total liquidity of $57.1 million, including $17 million of unlevered after-tax-free cash flows. Our flawless return to service continued in the quarter. The third quarter saw us commence service on board three new shipbuilds and two ships returned to service by cruise line partners. At quarter end, we had health and wellness centers on board 176 ships, of which 172 had resumed voyages as of quarter end. This compares to 167 ships that resumed voyages at the end of the second quarter of 2022, and versus 78 ships that resume voyages by the end of Q3 2021. We expect to be operating on 179 ships by the end of the year. During the fourth quarter, we anticipate operating health and wellness centers on two additional new ship builds that will be introduced into service by cruise line partners. We continue to see record demand by cruise ship guests for our services. While load factors onboard cruise ships remain below historical and 2019 levels, we were very pleased to see continued high demand for our services. Key operating metrics during the third quarter of 2022 compared favorably with our third quarter 2019 performance, the most recent comparable period for normalized operations. Average guest spend and revenue per staff per day were up double digits compared to Q3 2019. In addition, pre-booking as a percentage of service revenue and guest penetration also compared favorably to the third quarter of 2019. These improved operating metrics were driven by the continued innovation in our offering and focus on staff training. In short, we have emerged from the pandemic a more productive and efficient organization and we are eager for load factors to return to a more normalized level to showcase our even more attractive business model. While most of the cruise lines are not yet at pre-pandemic load factors, we are accelerating our stopping efforts to be above aggregate load factors, and we are experiencing robust demand for our services on board. Our London Wellness Academy continues to experience very strong demand from applicants, The London Wellness Academy website generated a record number of applicants, up 273% from Q3 of 2019. Since the London Wellness Academy reopened in October 2021, we have trained 2,128 health and wellness personnel at our other global training facilities. This is a further confirmation of One World leadership and training and certification. By the end of the third quarter, we had 3,087 cruise ship personnel on vessels for actual and expected voyages, and we expect 3,400 employees to be on vessels by the end of December 2022. Overall, we believe our third quarter performance continues to demonstrate the strength and resilience of our dedicated team and operating model. We begin the fourth quarter with even more confidence that our actions have made one spot world better position than ever before. With a strong business model, collaborative cruise line and destination resort partnerships, and an extraordinary team, we look forward to advancing our operational and financial performance throughout 2022 and beyond to increase value for all our One Spa World stakeholders. With that, I will turn the call over to Stephen who will comment on further third quarter results, and our liquidity position. Stephen.