Financial Data and Key Metrics Changes - Total revenues increased by 4% to $219.6 million compared to $211.2 million in Q1 2024 [7][14] - Income from operations was $16.8 million, including $2.5 million of nonrecurring severance expense, compared to $17 million in Q1 2024 [7][14] - Adjusted EBITDA rose by 5% to $26.6 million, which included $1.1 million of nonrecurring cash severance expense, compared to $25.3 million in Q1 2024 [8][16] - Net income was $15.3 million or $0.15 per diluted share, down from $21.2 million or $0.21 per diluted share in Q1 2024 [15][16] Business Line Data and Key Metrics Changes - Health and wellness centers operated on 199 ships, with an average ship count of 193 for the quarter, compared to 193 ships and an average of 188 ships in Q1 2024 [8][14] - Revenue per passenger per day, weekly revenue, and revenue per staff per day showed growth, driven by staff retention and enhanced sales training [11] Market Data and Key Metrics Changes - Prebooking revenue as a percentage of total revenues remained strong at 23% [12] - Increased prebooking revenues contributed $2.3 million to overall revenue growth [14] Company Strategy and Development Direction - The company aims to invest in cruise line and destination resort partnerships, innovate guest experiences, and enhance productivity [5][7] - New health and wellness centers were introduced on Norwegian Cruise Line's first PRIMA plus class ship, with plans for additional centers on eight new ships [9] - A new $75 million share repurchase program was approved, extending a previous $50 million program, reflecting a commitment to enhance shareholder value [12][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the dynamic economic environment and reaffirmed annual guidance [6][7] - Strong bookings and onboard spending from cruise line partners were noted, with consumers prioritizing experiences [7][20] - The company expects high single-digit revenue and adjusted EBITDA growth rates for fiscal 2025 compared to fiscal 2024 [20] Other Important Information - The company reported a strong balance sheet with total cash of $23.8 million after share repurchases and dividend payments [17] - The majority of operations are not impacted by tariffs, as products for cruise ships are held in a free trade zone [19] Q&A Session Summary Question: Understanding spend patterns on board - Management noted that there has been no significant increase in discounting and that spending continues to increase, with high demand for high-end services [25][26] Question: Full year guidance sensitivity - The low end of the guidance range assumes a moderation in spending on board, but there are no indicators suggesting a significant deterioration in spending [28][30] Question: Prebooking trends and cruise lines' willingness to invest - Prebooking remains stable at 23%, with no significant pullback from cruise lines in investing to reduce friction in prebooking engines [35][36] Question: MediSpa performance and potential slowdown - Demand for MediSpa services remains strong, with no early signs of deterioration even in high-end services [45][46] Question: Buyback sensitivity to business softening - The decision to buy back shares is based on stock value rather than business performance, indicating continued buybacks even if business softens [54][55] Question: Impact of tariffs on spending behavior - No changes in spending activity were observed immediately after tariffs were announced, as consumers continued to spend while on vacation [58][60]