OneSpaWorld Announces Preliminary Fourth Quarter and Fiscal Year 2023 Revenue and EBITDA in line with Guidance and Introduces Fiscal 2024 Revenue and EBITDA Guidance

Rhea-AI Summary

OneSpaWorld Holdings Limited (OSW) is presenting at the ICR Conference, providing preliminary revenue and EBITDA expectations for Fiscal Year 2023 and introducing select Fiscal Year 2024 guidance. The company expects an outstanding year with revenue and EBITDA growth of 45% and 73% from fiscal 2022. They also anticipate continued favorable momentum in fiscal 2024, with total revenues in the range of $850 million to $870 million and EBITDA in the range of $90 million to $100 million.

Insights

Market Research Analyst

The preliminary revenue and EBITDA expectations for Fiscal Year 2023 and the guidance for Fiscal Year 2024 presented by OneSpaWorld Holdings Limited indicate a robust performance with significant growth. A 45% increase in revenue and a 73% increase in EBITDA year-over-year represent substantial improvements in the company's financial health. The positive outlook for 2024, with expected revenue growth and continued positive cash flow, suggests confidence in the company's strategic direction and operational efficiency.

Investors may view these figures as indicators of the company's resilience in the face of external challenges, such as geopolitical instability and operational disruptions. The ability to reaffirm guidance despite such events is noteworthy, as it reflects management's adeptness in navigating uncertain environments. The emphasis on innovation and staff commitment highlights the internal drivers of success, which could be seen as sustainable competitive advantages.

Financial Analyst

The projected increases in revenue and EBITDA are critical metrics that will likely influence investor sentiment and the company's stock valuation. The announcement ahead of the ICR Conference enables the company to engage with investors and analysts on a positive note, potentially impacting the stock's performance in the short term. A key aspect to consider is the alignment of these projections with industry benchmarks; if OneSpaWorld's growth outpaces its peers, it could lead to a reassessment of the company's market position and future prospects.

Moreover, the forecasted positive cash flow for both fiscal years is a strong indicator of financial stability and operational efficiency. This is a significant factor for investors, as it implies the company's ability to self-finance growth initiatives, reduce debt, or return value to shareholders through dividends or share buybacks. However, it is crucial to monitor the actual performance against these preliminary figures, as any discrepancies could have material implications for investor trust and stock volatility.

Legal Expert

OneSpaWorld's disclosure of preliminary financial expectations is a strategic communication that must adhere to regulatory standards for public companies. The company's transparency in providing these figures is essential for maintaining compliance with securities laws and regulations. It is also important to note that these figures are subject to quarter and year-end closing adjustments and the audit of the 2023 financial statements is not yet complete. This cautionary statement is legally prudent, as it manages investor expectations and mitigates potential legal risks associated with forward-looking statements.

Investors should be aware that while the company does not anticipate updating its guidance before scheduled quarterly earnings dates, any significant changes resulting from the fiscal close or audit could impact the market's perception of the company's reliability in forecasting financial outcomes. Such changes could also influence the stock's trading activity and should be closely monitored for any legal disclosures or amendments that may follow.

Company to Present at the ICR Conference Today, January 8, 2024

NASSAU, Bahamas--(BUSINESS WIRE)-- OneSpaWorld Holdings Limited, (NASDAQ: OSW), the pre-eminent global provider of health and wellness products and services on board cruise ships and in destination resorts around the world, today is providing preliminary revenue and EBITDA expectations for Fiscal Year 2023 and introducing select Fiscal Year 2024 guidance. The Company is providing this update ahead of investor meetings and its fireside chat presentation at the 26^th Annual ICR Conference.

Leonard Fluxman, Executive Chairman, Chief Executive Officer and President of OneSpaWorld, commented: “We had a strong finish to the year, including a great performance during the holiday season, and are pleased to reaffirm our guidance even as we navigated disruption from turmoil in the Middle East and an unscheduled drydock of a large cruise ship in the fourth quarter. Overall, fiscal 2023 represented an outstanding year for OneSpaWorld, as demonstrated by our preliminary expectations to deliver revenue and EBITDA growth of 45% and 73%, respectively, from fiscal 2022. Indeed, the superior execution of our strategy, the strength of our innovation and the dedication and commitment of our staff have contributed to another successful year at OneSpaWorld. With robust consumer demand and a proven strategy, we are confident in our ability to continue our favorable momentum in fiscal 2024, which is reflected in our positive outlook.”

On a Preliminary Basis, for the Fourth Quarter (13-weeks ended December 31, 2023), the Company expects:

• Total revenues in the range of $193 million to $198 million, an increase of 16% from $168.9 million in the fiscal 2022 fourth quarter at the mid-point of the preliminary range; and
• EBITDA in the range of $20.0 million to $23.0 million, representing an increase of 4% at the mid-point of the range from 2022 EBITDA of $20.7 million.

Fiscal Year 2023 (52-weeks ended December 31, 2023), the Company expects:

• Total revenues in the range of $792 million to $797 million, an increase of 45% at the mid-point of the range from fiscal 2022 revenues of $546.3 million; and
• EBITDA in the range of $86.0 million to $89.0 million, an increase of 74% at the mid-point of the range from EBITDA or $50.4 million in the 2022 fiscal year.

The Company is introducing Fiscal Year 2024 Guidance (52 weeks ending December 31, 2024) and expects:

• Total revenues in the range of $850 million to $870 million; and
• EBITDA in the range of $90 million to $100 million.

Additionally, the Company noted that it continues to expect to deliver positive cash flow from operations in fiscal 2023 and to continue to generate positive cash flow from operations in 2024.

As previously announced, the Company is scheduled for a fireside chat presentation at the 26^th Annual ICR Conference, held today, Monday, January 8, 2024, at 3:00 p.m. Eastern Time. The webcast of the presentation will be broadcast over the internet and can be accessed at the Company’s investor relations website, www.onespaworld.com. The presentation is expected to conclude by 3:55 p.m. Eastern Time. A replay of the broadcast will remain on the Company’s investor relations website for one year.

The Company is providing a preliminary range for Fourth Quarter and Fiscal Year 2023 total revenue and Adjusted EBITDA and introducing guidance for fiscal 2024 to allow it to speak to these topics during the ICR Conference today. Investors should not expect the Company to make updates to guidance ahead of regularly scheduled quarterly earnings dates in the future. The Company noted that its expectations are estimated and preliminary and subject to quarter and year-end closing adjustments. As the Company has not completed its quarter and year-end fiscal close or the audit of its 2023 financial statements, the revenue expectation presented in this press release may change.

About OneSpaWorld

Headquartered in Nassau, Bahamas, OneSpaWorld is one of the largest health and wellness services companies in the world. OneSpaWorld’s distinguished health and wellness centers offer guests a comprehensive suite of premium health, wellness, fitness and beauty services, treatments, and products currently onboard 193 cruise ships and at 52 destination resorts around the world. OneSpaWorld holds the leading market position within the cruise line industry of the historically fast-growing international leisure market and has been built upon its exceptional service standards, expansive global recruitment, training and logistics platforms, irreplicable operating infrastructure, extraordinary team and a history of service and product innovation that has enhanced its guests’ personal care experiences while vacationing for over 65 years.

Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. The expectations, estimates, and projections of the Company may differ from its actual results and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue,” or the negative or other variations thereof and similar expressions are intended to identify such forward looking statements. These forward-looking statements include, without limitation, expectations with respect to future performance of the Company, including projected financial information (which is not audited or reviewed by the Company’s auditors), and the future plans, operations and opportunities for the Company and other statements that are not historical facts. These statements are based on the current expectations of the Company’s management and are not predictions of actual performance. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Factors that may cause such differences include, but are not limited to: the impact of the COVID-19 pandemic on our business, operations, results of operations and financial condition, including liquidity for the foreseeable future; the demand for the Company’s services together with the possibility that the Company may be adversely affected by other economic, business, and/or competitive factors or changes in the business environment in which the Company operates; changes in consumer preferences or the market for the Company’s services; changes in applicable laws or regulations; the availability or competition for opportunities for expansion of the Company’s business; difficulties of managing growth profitably; the loss of one or more members of the Company’s management team; loss of a major customer and other risks and uncertainties included from time to time in the Company’s reports (including all amendments to those reports) filed with the SEC. The Company cautions that the foregoing list of factors is not exclusive. You should not place undue reliance upon any forward-looking statements, which speak only as of the date made. The Company does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions, or circumstances on which any such statement is based, except as required by law. These forward-looking statements should not be relied upon as representing the Company’s assessments as of any date subsequent to the date of this communication.

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View source version on businesswire.com: https://www.businesswire.com/news/home/20240108109771/en/

Allison Malkin, 203-682-8225

allison.malkin@icrinc.com

Source: OneSpaWorld Holdings Limited

FAQ

What is the company presenting at the ICR Conference?

OneSpaWorld Holdings Limited (OSW) is presenting preliminary revenue and EBITDA expectations for Fiscal Year 2023 and introducing select Fiscal Year 2024 guidance at the ICR Conference.

What are the expected revenue and EBITDA growth for Fiscal Year 2023?

The company expects revenue and EBITDA growth of 45% and 73% respectively from fiscal 2022.

What are the expected total revenues and EBITDA for Fiscal Year 2024?

The company anticipates total revenues in the range of $850 million to $870 million and EBITDA in the range of $90 million to $100 million for Fiscal Year 2024.

Where can I access the webcast of the presentation at the ICR Conference?

The webcast of the presentation can be accessed at the Company’s investor relations website, www.onespaworld.com.

When is the presentation at the ICR Conference scheduled to conclude?

The presentation at the ICR Conference is expected to conclude by 3:55 p.m. Eastern Time.