OneSpaWorld Holdings Limited

Good day and welcome to the One Spa World fourth quarter 2024 earnings call. All participants will be in 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 touch-tone phone. To withdraw your question, please press star and then two. Please note this event is being recorded. I would now like to turn the conference over to Allison Malkin of ICR. Please go ahead.

Thank you. Good morning and welcome to One Spa World's fourth quarter and fiscal 2024 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 based on this conference call and webcast, We refer you to the disclaimer regarding forward-looking statements that is included in our fourth quarter 2024 earnings release, which was furnished to the SEC today on Form 8K. 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 fourth quarter and fiscal 2024 performance and provide an update on our key priorities as we begin fiscal 2025. Then Steven will provide more details on the financials and fiscal 2025 guidance. Following our prepared remarks, we will turn the call over to the operator to begin the question and answer portion of the call. I would now like to turn the call over to Leonard.

Thank you, Alison. Good morning and welcome to One Star World's fourth quarter and fiscal year 2024 earnings conference call. It's a pleasure to speak with you today and share our fourth quarter results, which concluded another excellent year of financial and operational accomplishments. Our team delivered a strong finish to an outstanding year of growth with fiscal 2024 marking our second consecutive year of record performance, which continues to evidence the combined power of our global operations, innovation across our business, outstanding team, and a strong financial position. all of which are focused on delivering extraordinary experiences for our health and wellness center guests and invaluable service to our cruise line and destination resort partners. I want to especially recognize our dedicated, passionate, and enormously capable team whose steadfast commitment and contributions every day produced our robust results. We begin fiscal 2025 strongly positioned and expect to deliver another year of record performance. And as outlined in our press release issued earlier this morning, given our strong fiscal 2024 performance and our positive outlook for 2025, we are affirming our recently provided full fiscal year 2025 guidance. Touching on highlights of the quarter, total revenues increased 11% to $217.2 million compared to 194%. in the fourth quarter of 2023. For the full year, total revenues increased 13% to a record $895 million compared to $794 million in fiscal year 2023. Income from operations increased 37% to $17.2 million compared to $12.6 million in the fourth quarter of 2023. For the full year, income from operations increased 44% to $78.1 million compared to $54.2 million in fiscal year 2023. And finally, adjusted EBITDA increased 14% to $26.7 million compared to $23.4 million in the fourth quarter of 2023. For the full year, adjusted EBITDA increased 26% to a record $112.1 million compared to $89.2 million in fiscal year 2023. At year end, we operated health and wellness facilities on 199 ships with an average ship count of 188 ships. This compares with a total of 193 ships and an average ship count of 184 ships at year end fiscal 2023. Also at year end, we had 4,352 cruise ship personnel on vessels compared with 4,120 cruise ship personnel on vessels at year end fiscal 2023. Along with our strong financial results, the year included noteworthy progress towards our key strategic priorities. Let me share these highlights with you. First, we captured highly visible new ship growth with current cruise line partners and added new cruise line partnerships to our fold. We expanded our health and wellness services, adding seven new maritime health and wellness centers, inclusive of five new shipbuilds and the renovated Mitsui Ocean Fuji and the Arroyo Manara to our fold. In addition, we entered into a new seven-year agreement with Royal Caribbean International and Celebrity Cruises, extending our more than 30-year relationship with both banners. We ended fiscal 2024 operating on board 199 vessels and expect to add nine new maritime health and wellness centers in 2025. Second, we continue to expand higher value services and products. In this regard, the expansion and demand for our MediSpa IV therapy and acupuncture continues to drive increased revenues to those modalities. Cryotherapy, megawite, and LED light facial services continue to perform, and we will continue our ramping of these services to our fleet in fiscal 2025. Third, we focused on enhancing health and wellness center productivity. We grew maritime operating metrics, which continued strong growth in revenue per passenger per day, weekly revenue, and revenue per staff per day driven by. The increase in experienced staff members that generate higher revenue per staff per day as are able to better recommend offerings as compared to a first contract staff member. We attribute the growth of experienced staff members to the success of our initiatives to attract, train, and retain staff members. We continue to see staff members returning after the first contract, which we believe is a strong testament to their dedication to our company and the empowering culture we create. Looking ahead, we have a number of initiatives in place to retain our best staff, which we will continue to emphasize to further grow our operating metrics. Our operational metrics also increased, reflecting the benefit of our sales training. This field increases in total revenue, guests utilizing the spa, service frequency, service spend, and retail, and average spend per guest. Pre-booking revenue as a percentage of services remains strong at 22%. even as we phase in new partners that are just beginning to scale. We continue to see passengers that pre-book services spending more than 30% more than those that do not pre-book. And finally, we continue to expand productivity with our med spas. The quarter saw same spa revenue overall up more than 30% year over year. We continue to increase the number of doctors and nurses we have on board and add to our service offerings. At year-end, Medispa services were available on 147 ships, up from 139 ships at the end of 2024 fiscal year. We now expect to have Medispa offerings increasing to 151 ships this year. Fourth, we enhanced capital structure and strengthened our balance sheet. During the year, we reduced our debt to $100 million and increased our public float as a private equity investor Steiner Leisure Limited exited. Additionally, in recognition of the confidence in our strategy and outlook this year, our board of directors approved the initiation of an ongoing quarterly cash dividend payment and share repurchase program. We ended the year with $58.6 million in cash after dispersing $12.6 million in quarterly dividends, paying down debt by $69 million, and investing $19 million to repurchase our common shares during the year. At year end, we had $38.7 million remaining on our $50 million share repurchase program. First, we are equally proud to have published our inaugural sustainability and social responsibility report, documenting our unwavering commitment to exemplary care for our employees, outstanding service to our cruise line and destination resort partners and their guests, and responsible stewardship of the environment and the communities our company impacts across the globe. Our commitment to sustainability is an integral part of our ability to drive successful near and long-term financial performance. In summary, we believe our ongoing positive performance clearly demonstrates the success of our strategy and the strength of our talented team that manages our highly complex business with precision. With visible growth opportunities ahead and positive business momentum, we remain confident in our ability to deliver increasing value to our shareholders in the year ahead and longer term. With that, I'll turn the call over to Stephen, who will provide more details on our fourth quarter and fiscal year 2024 results. Stephen.