Onespaworld Holdings ((OSW)) has held its Q4 earnings call. Read on for the main highlights of the call.
Discover the Best Stocks and Maximize Your Portfolio:
- See what stocks are receiving strong buy ratings from top-rated analysts.
- Filter, analyze, and streamline your search for investment opportunities with TipRanks’ Stock Screener.
The recent earnings call for OneSpaWorld Holdings painted an optimistic picture of the company’s financial health and strategic growth initiatives. Despite challenges anticipated in the first quarter of 2025 due to external factors like dry docks and a leap year, the company expressed confidence in achieving another record-breaking year. The call underscored the company’s robust financial performance, strategic partnerships, and expansion plans that have positioned it well for future success.
Record Revenue and Growth in Fiscal Year 2024
OneSpaWorld Holdings reported a notable increase in its total revenues, climbing 13% to reach a record $895 million compared to $794 million the previous year. The company’s income from operations also saw a significant rise, increasing by 44% to $78.1 million. Adjusted EBITDA followed suit, marking a 26% increase to a record $112.1 million, all indicative of OneSpaWorld’s successful fiscal year 2024.
Expansion and New Partnerships
The company made significant strides in expanding its operations, adding seven new maritime health and wellness centers. This included five new ship builds and a strategic seven-year agreement with Royal Caribbean International and Celebrity Cruises, showcasing OneSpaWorld’s commitment to growth and innovation in the maritime wellness industry.
Medi-Spa Revenue Growth
A key highlight from the earnings call was the impressive growth in Medi-Spa services. Same spa revenue for these services saw an increase of over 30% year-over-year. The number of ships offering Medi-Spa services grew to 147, with plans to expand this offering to 151 ships, reflecting the company’s dedication to enhancing its service offerings.
Strong Balance Sheet and Capital Structure
OneSpaWorld’s financial strategy was evident in its reduced debt of $100 million and a cash reserve of $58.6 million. The company initiated a share repurchase program and regular quarterly dividend payments, demonstrating a solid capital structure and a commitment to returning value to shareholders.
Impact of Dry Docks and Leap Year on Q1 2025 Revenue
The earnings call addressed the anticipated impact of dry docks and the leap year on Q1 2025 revenue, with a projected negative impact of $4.3 million due to one less operating day. Despite this, the company’s outlook remains positive as it navigates these temporary hurdles.
Forward-Looking Guidance
Looking ahead, OneSpaWorld provided a strong outlook for fiscal year 2025. The company expects total revenues to range from $950 million to $970 million, with adjusted EBITDA between $115 million and $125 million. This forecast is bolstered by plans to add nine new maritime health and wellness centers and expand the Medi-Spa services to more ships, reinforcing the company’s growth trajectory.
In summary, OneSpaWorld Holdings is set on a path of continued growth and success, as evidenced by its record financial performance and strategic expansions. The company’s proactive measures and forward-looking guidance suggest a promising future, appealing to investors and stakeholders alike.
