Financial Performance - The company achieved revenues of $895.0 million, net income of $72.9 million, and adjusted EBITDA of $112.1 million for the year ended December 31, 2024[21]. - Total revenues for 2024 reached $895.0 million, a 12.7% increase from $794.0 million in 2023[204]. - Service revenues increased to $723.3 million in 2024, up from $648.1 million in 2023, representing an 11.6% growth[204]. - Product revenues rose to $171.7 million in 2024, compared to $146.0 million in 2023, marking a 17.7% increase[204]. - Net income for 2024 was $72.9 million, a significant recovery from a net loss of $2.97 million in 2023[204]. - Adjusted EBITDA for 2024 was $112.1 million, up from $89.2 million in 2023, reflecting a 25.7% increase[207]. - Total assets increased to $746.4 million in 2024, compared to $706.1 million in 2023[204]. - Total liabilities decreased to $191.9 million in 2024, down from $272.1 million in 2023, indicating improved financial health[204]. - Working capital improved to $23.5 million in 2024, up from $17.0 million in 2023[204]. - The company reported a significant reduction in interest expense, from $21.4 million in 2023 to $10.0 million in 2024[207]. - The change in fair value of warrant liabilities showed a positive shift, with a gain of $7.7 million in 2024 compared to a loss of $37.6 million in 2023[207]. Market Position and Growth - The health and wellness centers served over 26 million guests in 2024, with guests spending approximately $297 per visit on average[17][19]. - Approximately 19% of the company's revenues were derived from the sale of retail products during the year ended December 31, 2024[19]. - The global wellness tourism market was valued at $830.2 billion in 2023, with a projected market size of $1.35 trillion by 2028, reflecting a compound annual growth rate of 10.2%[28]. - The cruise industry is forecasted to grow at least 10% from 2024 to 2028, with global passenger volume reaching nearly 40 million by 2027[23]. - The company operates 199 health and wellness centers onboard cruise ships and 50 destination resort centers, addressing a captive audience of over 26 million passengers annually[26]. - OneSpaWorld operates health and wellness centers on 199 ships, with expectations to grow as 19 new ships are introduced by existing partners by the end of 2026[39]. - OneSpaWorld is the market leader in the health and wellness industry, with a size more than 18 times that of its closest maritime competitor[212]. - Over the last 50 years, OneSpaWorld has developed strong relationships with cruise line and destination resort partners, enhancing its market position[212]. Operational Efficiency - The company maintains a contract renewal rate of approximately 97% based on ship count over the last 15 years, including 100% for ships larger than 3,500 berths[16]. - The company has entered into agreements with new cruise line partners, including Adora Cruises and Crystal Cruises, while renewing contracts with existing partners[16]. - The company employs up to 83 highly trained professionals in its health and wellness centers, which can range in size up to over 30,000 square feet[18]. - The average remaining term per ship for cruise line agreements is approximately four years as of December 31, 2024[53]. - The company has implemented a dynamic pricing model across its full cruise fleet to optimize demand and maximize utilization[56]. - The company focuses on maximizing profitability through effective management of health and wellness center operations[213]. Marketing and Customer Engagement - Medi-spa services have been highly successful, with guests spending on average up to 5x more than those purchasing traditional services[41]. - Product sales accounted for approximately 19% of revenues in 2024, with over 1,100 branded product SKUs offered[45]. - Onboard spend for the two largest cruise operators increased by $7.7 billion from $5.8 billion to $13.5 billion between 2013 and 2024[42]. - OneSpaWorld's principal cruise line partners accounted for 41.2% (Carnival), 27.9% (Royal Caribbean), and 16.8% (Norwegian) of total revenues in 2024[50]. - Pre-booked guests spend approximately 30% more than those who book services onboard[56]. - The company’s marketing strategies include targeted promotions through various channels, resulting in increased service spend and booking frequency[55]. Sustainability and Compliance - The company is committed to sustainability practices, including reducing paper and plastic usage and sourcing products from environmentally responsible brands[64]. - The company is obligated to make minimum annual payments regardless of revenue, which could exceed collected amounts[97]. - Potential changes in tax laws, including the OECD's BEPS project, could increase the company's tax liabilities and adversely affect financial results[123]. - The Bahamas is implementing an International Business Income Tax in compliance with the OECD's Pillar Two, which could impact the company's effective tax rate starting January 1, 2026[123]. - The company may incur costs related to compliance with environmental regulations, which could affect profitability[141]. Risks and Challenges - The company faces risks from potential bankruptcies of cruise lines, which could terminate agreements and eliminate anticipated income[86]. - The company relies on key officers and qualified employees, with potential adverse effects from their unexpected loss[103]. - The company’s agreements with cruise lines allow for termination with limited notice, posing risks to revenue stability[84]. - Increased fuel costs could adversely impact financial results, affecting transportation and delivery costs[100]. - Economic slowdowns can lead to reduced occupancy rates at destination resorts, directly impacting the sales of health and wellness services[126]. - The company faces competition from various passenger activity alternatives on cruise ships, which could affect its market share[128]. - International operations expose the company to various risks, including currency fluctuations and compliance with local laws, which could adversely affect financial performance[130]. - Political unrest in regions where the company operates health and wellness centers has negatively impacted operations, particularly in the Middle East[133]. - Compliance with evolving data privacy regulations, such as the EU GDPR, poses significant legal and financial risks, including potential fines and reputational damage[143]. - The company is subject to examination of income tax returns, which could adversely affect profitability if findings are unfavorable[144]. Corporate Governance and Shareholder Relations - The company declared a quarterly dividend of $0.04 per common share on July 23, 2024, and another $0.04 on October 24, 2024[195]. - The declaration and payment of future dividends depend on various factors including financial condition and capital requirements[196]. - The company’s common shares are traded on The Nasdaq Capital Market under the symbol "OSW" with 16 registered holders as of February 20, 2025[194]. - The company has a classified Board serving staggered terms of three years, which may delay or prevent a change in control[179]. - The market price and trading volume of the company's common shares have been volatile and may continue to fluctuate significantly due to various risk factors[172]. Cybersecurity and Technology - Cybersecurity remains a top priority, as the company faces threats from cyberattacks that could disrupt operations and lead to increased costs[164]. - The company has a comprehensive cybersecurity program aimed at managing risks and enhancing resilience against threats[181]. - The use of artificial intelligence presents security risks and potential operational inefficiencies, impacting business performance[149]. - The company may face competitive risks if unable to adopt AI technologies while peers leverage these advancements[150].

Financial Data and Key Metrics Changes - Total revenues increased 11% to $217.2 million compared to $194.8 million in Q4 2023 [11] - For the full year, total revenues increased 13% to a record $895 million compared to $794 million in fiscal year 2023 [11] - Income from operations increased 37% to $17.2 million compared to $12.6 million in Q4 2023 [11] - Adjusted EBITDA increased 14% to $26.7 million compared to $23.4 million in Q4 2023 [12] - Net income was $14.4 million or $0.14 per diluted share compared to a net loss of $7.3 million or $0.07 per diluted share in Q4 2023 [28] Business Line Data and Key Metrics Changes - Same Spa revenue overall was up more than 30% year-over-year, driven by increased participation in Medi-Spa services [20][43] - Medi-Spa services were available on 147 ships, up from 139 ships at the end of fiscal year 2023 [20] - The company expects to have Medi-Spa offerings increasing to 151 ships this year [21] Market Data and Key Metrics Changes - The company operated health and wellness facilities on 199 ships at year-end, compared to 193 ships at the end of fiscal 2023 [13] - The average ship count increased from 184 ships to 188 ships [13] Company Strategy and Development Direction - The company is focused on expanding higher-value services and products, including Medi-Spa IV therapy and Acupuncture [16] - A new seven-year agreement was entered into with Royal Caribbean International and Celebrity Cruises, extending a long-term relationship [15] - The company aims to enhance health and wellness center productivity through increased staff training and retention [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering another year of record performance in fiscal 2025, supported by strong financial results and operational accomplishments [10][24] - The company affirmed its fiscal 2025 guidance, expecting total revenue in the range of $950 million to $970 million [35] Other Important Information - The company reduced its debt to $100 million and ended the year with $58.6 million in cash [22][32] - An ongoing quarterly cash dividend payment and share repurchase program were initiated [22] Q&A Session Summary Question: What drove the 30% increase in same spa revenue for Medi-Spa? - The increase was primarily due to more passengers participating in Medi-Spa services, with a focus on adding more staff to meet demand [43][44] Question: Is the services gross margin at a normalized run rate? - There is nothing fundamentally weighing down the gross margin; the decrease in the fourth quarter was due to revenue levels and fixed costs [48][49] Question: Why is there no expected margin expansion despite higher prebooking activity? - There are no headwinds on the cost side, and the company is comfortable with a flat margin profile for the upcoming year [55] Question: How is the company balancing dividend growth versus share repurchases? - The company will evaluate stock buybacks based on market conditions and expects to grow dividends over the next couple of years [59] Question: Were norovirus incidents impactful to the Q1 '25 outlook? - No, norovirus incidents did not materially impact the outlook for Q1 [67] Question: Can you provide details on the dry dock impact for the year? - The first quarter was normal, and there is no anticipation of above-average dry docks in the second quarter [69] Question: Is the restructuring of product architecture still ongoing? - Yes, the company continues to rationalize its product offerings and focus on pricing transformation [73] Question: How does the current spending trend look for the rest of the year? - Current spending trends appear strong, with demand for services remaining high and no significant changes in discounting [95]

Core Viewpoint - OneSpaWorld reported quarterly earnings of $0.20 per share, missing the Zacks Consensus Estimate of $0.21 per share, but showing an increase from $0.12 per share a year ago, indicating a mixed performance in earnings expectations [1][2]. Financial Performance - The company posted revenues of $217.21 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1.11% and showing an increase from $194.81 million year-over-year [2]. - Over the last four quarters, OneSpaWorld has surpassed consensus EPS estimates two times and topped consensus revenue estimates four times [2]. Stock Performance - OneSpaWorld shares have increased approximately 13.1% since the beginning of the year, outperforming the S&P 500's gain of 4% [3]. - The current consensus EPS estimate for the upcoming quarter is $0.22 on revenues of $228.81 million, and for the current fiscal year, it is $0.99 on revenues of $964.6 million [7]. Industry Outlook - The Leisure and Recreation Services industry, to which OneSpaWorld belongs, is currently ranked in the top 18% of over 250 Zacks industries, suggesting a favorable outlook for stocks in this sector [8].

Financial Performance - Total revenues for fiscal year 2024 increased 13% to $895.0 million compared to $794.0 million for fiscal year 2023[5] - Income from operations for fiscal year 2024 increased 44% to $78.1 million compared to $54.2 million for fiscal year 2023[5] - Adjusted EBITDA for fiscal year 2024 increased 26% to $112.1 million compared to $89.2 million for fiscal year 2023[5] - Fourth quarter 2024 total revenues increased 11% to $217.2 million compared to $194.8 million for the fourth quarter of 2023[5] - Fourth quarter 2024 income from operations increased 37% to $17.2 million compared to $12.6 million for the fourth quarter of 2023[5] - Fourth quarter 2024 adjusted EBITDA increased 14% to $26.7 million compared to $23.4 million for the fourth quarter of 2023[5] - Service revenues for Q4 2024 reached $175.81 million, an increase of 11% compared to Q4 2023[24] - Product revenues for Q4 2024 were $41.40 million, reflecting a 15% increase year-over-year[24] - Net income for Q4 2024 was $14.39 million, a significant increase of 297% compared to a net loss of $7.30 million in Q4 2023[24] - The company reported an income from operations of $17.23 million for Q4 2024, representing a 37% increase from $12.62 million in Q4 2023[24] - Adjusted net income for Q4 2024 was $21,432,000, compared to $12,500,000 in Q4 2023, representing a 71.5% increase[32] - Adjusted net income for the year ended December 31, 2024, was $89,678,000, compared to $61,894,000 for the year ended December 31, 2023, a growth of 44.9%[32] - Adjusted EBITDA for the year ended December 31, 2024, reached $112,076,000, up from $89,192,000 in 2023, representing a 25.6% increase[35] Cash Flow and Liquidity - The company ended fiscal year 2024 with total cash of $58.6 million and total liquidity of $108.6 million[3] - The company expects to generate positive cash flow from operations for fiscal year 2025[11] Future Guidance - Fiscal year 2025 guidance includes total revenues of $950 to $970 million and adjusted EBITDA of $115 to $125 million[15] - The company plans to open health and wellness centers on board nine new ship builds in fiscal 2025[15] Operational Metrics - The average weekly revenues per ship increased to $83,913 in Q4 2024, compared to $75,903 in Q4 2023[24] - The forecast for Q1 2025 indicates a period-end ship count of 199 and an average ship count of 193[26] - The company plans to maintain a period-end resort count of 50 for FY 2025[26] Interest Expense and Depreciation - The company experienced a significant reduction in interest expense, netting $1.21 million in Q4 2024, an 86% decrease from $8.43 million in Q4 2023[24] - Total depreciation and amortization for Q4 2024 was $6,186,000, compared to $5,542,000 in Q4 2023, reflecting an increase of 11.6%[35] - The company incurred interest expense of $1,209,000 in Q4 2024, down from $8,427,000 in Q4 2023, a decrease of 85.6%[35] Share Metrics - The company reported a diluted weighted average shares outstanding of 105,478,000 for Q4 2024, compared to 100,232,000 for Q4 2023, an increase of 5.0%[32] Non-GAAP Measures - Adjusted EBITDA figures are included in the financial measures not calculated in accordance with GAAP[27] - The company highlighted the importance of non-GAAP measures for providing further insight into profitability and performance comparisons over time[30]

Core Insights - OneSpaWorld Holdings Limited (OSW) reported preliminary results for Q4 and fiscal 2024, highlighting strong operational performance and effective management of its complex business model [1] Financial Performance - For Q4 fiscal 2024, OSW anticipates total revenues between $211 million and $216 million, reflecting a 10% year-over-year increase from $194.8 million in Q4 fiscal 2023 [2] - The company projects total revenues for fiscal 2024 to be in the range of $889 million to $894 million, indicating a 12% increase from $794 million in fiscal 2023 [3] - Adjusted EBITDA for Q4 is expected to be between $25.5 million and $27.5 million, representing a 13% increase from $23.4 million in fiscal 2023 [4] - For fiscal 2024, adjusted EBITDA is projected to be between $110.5 million and $112.5 million, marking a 25% increase from $89.2 million in fiscal 2023 [5] Future Guidance - OSW is optimistic about maintaining positive momentum into fiscal 2025, with expected total revenues between $950 million and $970 million and adjusted EBITDA anticipated to be between $115 million and $125 million [6] Stock Performance - OSW shares have increased by 11.2% over the past three months, outperforming the industry average growth of 3.5% [8] - The company is benefiting from strong consumer demand, particularly in premium wellness services, and has introduced advanced treatments that have contributed to revenue growth [8][9] Strategic Initiatives - OSW plans to launch new products and services, enhance staff training on cruise ships, improve operational efficiency through technology upgrades, and secure new contracts to drive growth [10]

OneSpaWorld Holdings Limited (OSW) stock has witnessed a decent run in the past month, outperforming the S&P 500 and the industry. In the same time frame, OSW has gained 10.9% compared with the industry and the S&P 500’s 9.1% and 2.9% growth, respectively.As of Monday, the stock closed at $19.30, marginally below its 52-week high of $19.69 but well above its 52-week low of $11.59. In the same time frame, other stocks like Carnival Corporation & plc (CCL) , Norwegian Cruise Line Holdings Ltd. (NCLH) and Roya ...

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Even though momentum is a popular stock char ...

While "the trend is your friend" when it comes to short-term investing or trading, timing entries into the trend is a key determinant of success. And increasing the odds of success by making sure the sustainability of a trend isn't easy.Often, the direction of a stock's price movement reverses quickly after taking a position in it, making investors incur a short-term capital loss. So, it's important to ensure that there are enough factors -- such as sound fundamentals, positive earnings estimate revisions, ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Title of each class Trading Symbol(s) Name of each exchange on which registered Common Shares, par value (U.S.) $0.0001 per share OSW The Nasdaq Capital Market FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___ t ...

OneSpaWorld Holdings Limited (NASDAQ:OSW) Q3 2024 Earnings Conference Call October 30, 2024 10:00 AM ET Company Participants Allison Malkin - ICR Leonard Fluxman - President, Executive Chairman & Chief Executive Officer Stephen Lazarus - Chief Operating Officer & Chief Financial Officer Conference Call Participants Steve Wieczynski - Stifel Max Rakhlenko - TD Cowen Sharon Zackfia - William Blair Gregory Miller - Truist Securities Assia Georgieva - Infinity Research Laura Champine - Loop Capital Operator Goo ...