OneSpaWorld Holdings Limited

And welcome to the ONESPA World Second Quarter 2023 Earnings Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the Start key followed by 0. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press Start then 1 on the touchtone phone. To withdraw your question, please press Start then 2. Please note, this event is being recorded. I would now like to turn the conference over to Alison Malkin with ICR. Please go ahead.

Thank you. Good morning, and welcome to One Spa World's second quarter 2023 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. 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 second quarter 2023 earnings release, which was furnished to the SEC today on Form 8K. We do not take 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. And the 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 Stephen Lazarus, Chief Financial Officer and Chief Operating Officer. Leonard will begin with a review of our second quarter 2023 performance and provide an update on our operations and our key priorities. Then Stephen will provide more details on the financials and our fiscal year 2023 guidance. I would now like to turn the call over to Leonard.

Thank you, Alison. Good morning and welcome to OneSpar World's second quarter 2023 results conference call. I'm pleased to share outstanding second quarter results that completed an excellent first half of the year for our company. The period saw acceleration in our positive momentum with better than expected performance across key financial and operating metrics, driven by the relentless focus on the execution of our strategy by a highly talented team, buoyed by our extraordinary operating platform. As a result, we achieved our best ever second quarter revenue, income from operations, and adjusted EBITDA. Our ongoing strength and accelerating momentum evidence our unwavering focus on investing in and serving our cruise ship and destination resort partners by providing exceptional customer experiences for every guest and continuously innovating our operations to drive productivity gains across our health and wellness centers at sea and on land. In recognition of our unique capabilities, our innovative offerings and endearing services levels, we were awarded a new agreement with Crystal Cruises to be the exclusive provider of spa, salon, medispa, and fitness services onboard Crystal's newly refurbished Crystal Serenity and Crystal Symphony, as well as any additional vessels introduced into service during the term of the agreement. These two vessels will be reintroduced into service during the third quarter. We are more excited than ever about our business prospects. Our third quarter 2023 performance is off to an excellent start, with our summer itineraries across key destinations in Europe and in Alaska generating particular strength. We continue to focus on the advancement of our guest services, product offerings, and guest experiences We look forward to adding our health and wellness centers on board eight new shipbuilds that will be introduced into service during the second half of the year, joining the Oceania Vista and the Virgin Voyager Resilient Lady that commence service in the second quarter, thus bringing our total new shipbuild count to 10 for the 2023 fiscal year. In recognition of our strong first half performance and favorable outlook, we have raised our annual guidance for the second time this year with our fiscal year outlook increased beyond the amount we surpassed second quarter expectations. As you may recall, we increased our fiscal year 2023 revenue guidance by $15 million and increased our adjusted EBIT guidance by $6 million when we reported first quarter results in May. We are very pleased to share our performance has accelerated further, which has led to our raising fiscal 2023 total revenue guidance by an additional $16 million and our adjusted EBITDA guidance by an additional $10 million versus the annual outlook we provided in the first quarter. As a result, for fiscal year 2023, we now expect total revenues to increase by 43%, and adjusted EBITDA to increase by 65% versus the fiscal year of 2022 at the midpoint of our guidance ranges. Turning to highlights of our second quarter, total revenues grew by 57%, reaching a record $200 million, while adjusted EBITDA more than doubled to a record $21.6 million. The expansion in our ship count continued in the quarter, At the end of the second quarter, we had health and wellness centers on 183 ships, compared with 172 ships at the end of the second quarter of 2022. At year end, we now expect to have service on 192 ships, including 10 new builds. We saw strength across key operating metrics, including a 30% increase in revenue per ship per day, as compared to the second quarter last year, and high single-digit increases in average guest spend and revenue per stock per day. Penetration of retail sales and pre-bookings also continued to increase. We are excited to have now completed the full implementation of the pre-booking platform on all MCL ships, and as of today, 89% of our ships have pre-booking capabilities. At quarter end, we had 3,813 cruise ship personnel on vessels, increasing from 3,665 and 2,778 cruise ship personnel on vessels at the end of the first quarter of 2023 and the second quarter of 2022, respectively. We continue to focus on our key priorities, namely to capture highly visible new ship growth with current cruise line partners, as well as evaluating opportunities with new operators. We have demonstrated success advancing this priority as evidenced by entry into a new agreement with Crystal Cruise Lines and the addition of 10 new shipbuilds this year. And second, increased guest spend, frequency, spark capacity utilization, and retail revenues. Highlights of our achievements in this regard include a high single to double-digit increase across average guest spend, pre-booking as a percentage of service revenue, revenue for staff per day, and in retail spend as compared to Q2 of 2019. With that, I will turn the call over to Stephen, who will comment on our second quarter results.