Earning Date, Transcript Summary & Report

Revenue Increase Analysis: Total revenues increased 11% to $217.2 million compared to $194.8 million in the fourth quarter of 2023.

Record Revenue Increase: For the full year, total revenues increased 13% to a record $895 million compared to $794 million in fiscal year 2023.

Operating Income Increase: Income from operations increased 37% to $17.2 million compared to $12.6 million in the fourth quarter of 2023.

Operating Income Increase: For the full year, income from operations increased 44% to $78.1 million compared to $54.2 million in fiscal year 2023.

Adjusted EBITDA Growth: Adjusted EBITDA increased 14% to $26.7 million compared to $23.4 million in the fourth quarter of 2023.

Adjusted EBITDA Increase: For the full year, adjusted EBITDA increased 26% to a record $112.1 million compared to $89.2 million in fiscal year 2023.

Ship Count Increase: The company operated health and wellness facilities on 199 ships, with an average ship count of 188 ships, compared to 184 ships at year end fiscal 2023.

Expansion of Wellness Centers: The company added seven new maritime health and wellness centers, including five new shipbuilds and renovations.

Long-term Partnership Renewal: A new seven-year agreement was signed with Royal Caribbean International and Celebrity Cruises, extending a 30-year relationship.

Strong Revenue Growth Metrics: Revenue per passenger per day, weekly revenue, and revenue per staff per day all showed strong growth due to experienced staff members.

Prebooking Revenue Insights: Prebooking revenue as a percentage of services remained strong at 22%, with prebooked passengers spending over 30% more than those who did not prebook.

Revenue Increase Over 30%: Same Spa revenue overall was up more than 30% year-over-year.

Debt Reduction and Cash Position: The company reduced its debt to $100 million and ended the year with $58.6 million in cash after disbursing $12.6 million in dividends and repurchasing shares.

Dividend and Share Repurchase: The Board of Directors approved an ongoing quarterly cash dividend payment and share repurchase program.

Sustainability Commitment Report: The company published its inaugural sustainability and social responsibility report, highlighting its commitment to employees and the environment.

New Health Centers Launch: The company expects to open health centers onboard nine new shipbuild introductions in 2025.

Earnings Miss Report: OneSpaWorld Holdings Limited missed earnings expectations, reporting an EPS of $0.20 compared to the expected $0.21.

Revenue Increase and Cost Impact: Despite an increase in total revenues by 11% to $217.2 million, the company faced rising costs of service and products, which increased to $145.3 million and $35 million respectively, impacting profit margins.

Net Income Analysis: The net income for the fourth quarter was $14.4 million, but this was significantly influenced by a $10 million positive change in the fair value of warrant liabilities from the previous year, indicating reliance on non-operational factors for profit.

Revenue Decline Anticipation: The company anticipates a negative impact on total revenue in the first quarter of 2025 due to one less operating day and a higher number of dry docks, estimated to be around $4.3 million.

Revenue and EBITDA Slowdown: While the company expects high single-digit growth in revenue and adjusted EBITDA for fiscal 2025, this is a slowdown compared to the previous year's performance, indicating potential challenges ahead.