Reaffirms Fiscal Year 2024 Guidance
Introduces First Quarter 2024 Guidance of $204 to $209 Million
in Revenue and $21.5 to $23.5 Million in Adjusted EBITDA
OneSpaWorld Holdings Limited (NASDAQ: OSW) (“OneSpaWorld,” or
the “Company”), the pre-eminent global provider of health and
wellness services and products on-board cruise ships and in
destination resorts around the world, today announced its financial
results for its fourth quarter and twelve months of fiscal 2023,
ended December 31, 2023.
Leonard Fluxman, Executive Chairman, Chief Executive Officer and
President, commented: “Our record fourth quarter concluded an
outstanding year of financial and operating performance and
continues to demonstrate the increasingly powerful impact of our
strategies, innovation and scale across our complex business.”
Mr. Fluxman continued, “the year was highlighted by the delivery
of best-ever revenue, which grew 45% to $794 million; income from
operations which increased 258% to $54.2 million, and Adjusted
EBITDA, which grew 77% to $89.2 million from the 2022 fiscal year.
I am extremely proud of our dedicated team and onboard staff, whose
commitment to service excellence assisted us in delivering double
digit growth across certain key operating metrics as compared to
fiscal years 2022 and 2019, as well as placing 5,904 staff members
onboard, introducing new products and services, and introducing
health and wellness centers on board 10 new ship builds, as well as
executing new agreements with Crystal Cruises and Adora Cruises
during the year.”
Mr. Fluxman concluded, “our team continues to enhance our
industry leading business model, constantly innovating our unique
value to our cruise line and destination resort partners and our
delivery of outstanding experiences to their passengers and guests.
We continue to vet and introduce new and enhanced services,
products and facilities, while utilizing our strong cash flow to
further invest in our powerful business model. We begin fiscal 2024
with strong momentum and expect to deliver another year of record
performance and increasing value for our shareholders.”
Stephen Lazarus, Chief Financial Officer and Chief Operating
Officer, added, “the strength of our business and our asset light
operating model, combined with the discipline with which we
execute, has enabled us to deliver increasing free cash flow and a
strong balance sheet. The superior execution of our strategy is
further reflected in our record fourth quarter performance, as we
handily navigated turmoil in the Middle East and an unscheduled
drydock of a large cruise ship, which impacted revenue. We ended
the year with total liquidity of $48.9 million, after repaying an
additional $5.0 million of our first lien term loan and utilizing
$9.0 million to repurchase 789,046 of our common shares, at $11.46
per share, during the fourth quarter.”
Mr. Lazarus continued, “since the second quarter of 2022, we
have repaid a total of $74.1 million in debt instruments, reducing
ongoing interest expense. Our net debt leverage ratio at year end
was 1.48 times, significantly improved from our year end 2019 at
3.62 times. As a result of our deleveraging, we have substantially
strengthened our balance sheet and reduced our future interest
expense. This deleveraging resulted in a one-time charge of $5.4
million, or $0.05 per diluted share, due to a deleveraging fee
driven by our reduced net debt leverage ratio.”
Mr. Lazarus concluded, “with our strong 2023 performance and a
positive outlook, we affirm our recently provided full fiscal year
2024 guidance, reflecting high-single digit Revenues and Adjusted
EBITDA growth at the mid-points of our guidance ranges as compared
to fiscal 2023 results.”
Fourth Quarter 2023 Highlights:
- Total revenues increased 15% to $194.8 million compared to
$168.9 million in the fourth quarter of 2022;
- Income from operations increased $1.9 million to $12.6 million,
including a $2.1 million asset impairment charge primarily related
to the expected closure of a destination resort spa location given
the planned demolition of the hotel in 2024, as compared to $10.7
million in the fourth quarter of 2022;
- Adjusted EBITDA increased 13% to $23.4 million compared to
$20.7 million in the fourth quarter of 2022; and
- Unlevered after-tax free cash flow decreased $2.2 million to
$16.9 million compared to $19.0 million in the fourth quarter of
2022. The unlevered after-tax free cash flow conversion rate was
72% in the fourth quarter of 2023.
Fiscal Year 2023 Highlights:
- Total revenues increased 45% to $794.0 million compared to
$546.3 million in fiscal year 2022;
- Income from operations increased $39.0 million to $54.2
million, including a $2.1 million asset impairment charge related
to the expected closure of a destination resort spa location given
the planned demolition of the hotel in 2024, as compared to $15.1
million in fiscal year 2022;
- Adjusted EBITDA increased 77% to $89.2 million compared to
$50.4 million in fiscal year 2022; and
- Unlevered after-tax free cash flow increased $33.9 million to
$79.0 million compared to $45.1 million in fiscal year 2022. The
unlevered after-tax free cash flow conversion rate was 89% in
fiscal year 2023.
Operating Network Update:
- Cruise Ship Count: The Company ended the fourth quarter
with health and wellness centers on 193 ships and an average ship
count of 184 for the quarter, compared with 179 ships and an
average ship count of 169 ships for the fourth quarter of
2022.
- Destination Resort Count: The Company ended the fourth
quarter with 51 destination resort health and wellness centers and
an average destination resort count of 51 for the quarter, compared
with 50 destination resort health and wellness centers and an
average destination resort count of 47 for the fourth quarter of
fiscal 2022.
- Staff Count: The Company ended the fourth quarter with
4,120 cruise ship personnel on vessels, compared with 3,927 and
3,566 cruise ship personnel on vessels at the end of the third
quarter of 2023 and the fourth quarter of 2022, respectively.
Liquidity Update:
- Cash and borrowing capacity under the Company’s line of credit
at December 31, 2023 totaled $48.9 million.
- In the fourth quarter, the Company repaid $5.0 million on its
First Lien Term Loan, bringing total payments for the year to $41.0
million.
- In the fourth quarter, the Company utilized $9.0 million in
cash to repurchase 789,046 million shares of its common stock.
- The Company expects to continue to generate positive cash flow
from operations and after-tax free cash flow throughout fiscal year
2024.
The Company’s results are reported in this press release on a
GAAP basis and on an as adjusted non-GAAP basis. A reconciliation
of GAAP to non-GAAP financial information is provided at the end of
this press release. This press release also refers to Adjusted
EBITDA and Adjusted Net Income (non-GAAP financial measures), the
terms for which definition and reconciliation are presented
below.
Fourth Quarter Ended December 31, 2023 Compared to December
31, 2022
Results of operations for the fourth quarter of 2023 continued
to accelerate from 2022 as the Company has returned to normalized
operations since the conclusion of the COVID-19 pandemic.
- Total revenues increased 15% to $194.8 million compared to
$168.9 million in the fourth quarter of 2022. The increase was
attributable to our average ship count increasing 9% to 184 health
and wellness centers onboard ships operating during the quarter,
compared with our average ship count of 169 health and wellness
centers onboard ships operating during the fourth quarter of 2022.
In addition, we benefited from our initiatives to drive revenue
growth in each of our on-board health and wellness centers through
enhanced guest engagement and experiences, our guest service and
product offering innovations, and the disciplined execution of our
complex operating protocols by our on-board and corporate
teams.
- Cost of services were $131.8 million compared to $114.9 million
in the fourth quarter of 2022. The increase was primarily
attributable to costs associated with increased service revenues of
$158.9 million in the quarter from our operating health and
wellness centers at sea and on land, compared with service revenues
of $139.0 million in the fourth quarter of 2022.
- Cost of products were $30.7 million compared to $24.3 million
in the fourth quarter of 2022. The increase was primarily
attributable to costs associated with increased product revenues of
$35.9 million in the quarter from our operating health and wellness
centers at sea and on land, compared to product revenues of $30.0
million in the fourth quarter of 2022.
- Long-lived assets impairment charges for the fourth quarter of
2023 were $2.1 million. This was comprised of destination resort
agreements-intangible asset, property and equipment
agreements-intangible charges, and licensing agreement-intangible
charges of $1.3 million, $0.5 million and $0.4 million,
respectively. The impairment was primarily related to the expected
closure in 2024 of our Las Vegas destination resort health and
wellness center as a result of the expected demolition of the hotel
where the health and wellness center is located.
- Net loss was ($7.3) million, or net loss per diluted share of
($0.07), as compared to net loss of ($2.3) million or net loss per
diluted share of ($0.03) in the fourth quarter of 2022. The $5.0
million increase in net loss was attributable to: (i) a $3.0
million negative change in fair value of warrant liabilities; (ii)
a $1.8 million decrease in interest expense, offset by a $5.4
million deleveraging fee payable to our lenders that was required
Under the First Lien Term Facility agreement due to our lower net
debt leverage ratio at year end; and (iii) a $2.1 million
long-lived assets impairment charge, partially offset by a $4.0
million positive change in income from operations prior to the long
lived asset impairment. The change in fair value of warrant
liabilities during the three months ended December 31, 2023 was a
loss of ($10.8) million compared to a loss of ($7.8) million during
the three months ended December 31, 2022. The change in fair value
of warrant liabilities was the result of changes in market prices
of our common stock and other observable inputs deriving the value
of the financial instruments.
- Adjusted net income was $12.5 million, or adjusted net income
per diluted share of $0.12, including the negative impact of the
$5.4 million deleveraging fee, or $0.05 per diluted share, as
compared to adjusted net income of $12.8 million, or adjusted net
income per diluted share of $0.14, in the fourth quarter of
2022.
- Adjusted EBITDA increased 13% to $23.4 million compared to
Adjusted EBITDA of $20.7 million in the fourth quarter of
2022.
- Unlevered after-tax free cash flow decreased 11% to $16.9
million compared to $19.0 million in the fourth quarter of 2022.
The decrease was primarily related to the timing of $4.0 million in
payments for taxes for both 2022 and 2023 fiscal years paid during
the three months ended December 31, 2023.
Fiscal Year 2023 Ended December 31, 2023 Compared to December
31, 2022
Results of operations for the year ended December 31, 2023
continued to accelerate from 2022 as the Company has returned to
normalized operations since the conclusion of the COVID-19
pandemic.
- Total revenues increased 45% to $794.0 million compared to
$546.3 million in the year ended December 31, 2022. The increase
was attributable to our average ship count increasing 23% to 180
health and wellness centers onboard ships operating during the year
ended December 31, 2023 compared with our average ship count of 146
health and wellness centers onboard ships operating during the year
ended December 31, 2022, along with the impact of our on-board
initiatives to drive revenue growth.
- Cost of services were $541.4 million compared to $375.1 million
in the year ended December 31, 2022. The increase was primarily
attributable to costs associated with increased service revenues of
$648.1 million in the year ended December 31, 2023 from our
operating health and wellness centers at sea and on land, compared
with service revenues of $446.5 million in the year ended December
31, 2022.
- Cost of products were $125.6 million compared to $87.6 million
in the year ended December 31, 2022. The increase was primarily
attributable to costs associated with increased product revenues of
$146.0 million in the year ended December 31, 2023 from our
operating health and wellness centers at sea and on land, compared
to product revenues of $99.7 million in the year ended December 31,
2022.
- Long-lived assets impairment charges for the year ended
December 31, 2023 were $2.1 million. This was comprised of
destination resort agreements-intangible asset, property and
equipment charges, and licensing agreement-intangible charges of
$1.3 million, $0.5 million and $0.4 million, respectively. The
impairment was primarily related to the expected closure in 2024 of
our Las Vegas destination resort health and wellness center as a
result of the expected demolition of the hotel where the health and
wellness center is located.
- Net loss was ($3.0) million, or net loss per diluted share of
($0.03), as compared to net income of $53.2 million or net income
per diluted share of $0.49 in the year ended December 31, 2022. The
$56.1 million decrease was primarily attributable to: (i) a $92.0
million negative change in fair value of warrant liabilities; and
(ii) a $5.4 million deleveraging fee payable to our lenders that
was required Under the First Lien Term Facility agreement due to
our lower net debt leverage ratio at year end. This was partially
offset by a $39.0 million increase in income from operations driven
by the increase in the number of health and wellness centers
onboard ships operating during the fiscal year and our on-board
initiatives to drive revenue and operating income growth. The
change in fair value of the outstanding warrants during the year
ended December 31, 2023 was a loss of ($37.6) million compared to a
gain of $54.4 million during the year ended December 31 2022. Net
loss in the change in fair value of warrant liabilities was the
result of increases in market prices of our common stock and other
observable inputs deriving the value of the financial instruments
and the exchange of approximately 95% of the Public Warrants and
approximately 50% of Sponsor Warrants for the Company’s common
shares in April 2023.
- Adjusted net income more than doubled to $61.9 million, or
adjusted net income per diluted share of $0.63, including the
negative impact of $5.4 million, or $0.05 per diluted share due to
the deleveraging fee required driven by our lower net debt leverage
ratio. This compares to adjusted net income of $26.7 million, or
adjusted net income per diluted share of $0.28, in the year ended
December 31, 2022.
- Adjusted EBITDA increased 77% to $89.2 million compared to an
adjusted EBITDA of $50.4 million in the year ended December 31,
2022.
- Unlevered after-tax free cash flow increased 75% to $79.1
million compared to $45.1 million in the year ended December 31,
2022.
Balance Sheet Highlights
- Cash at year end December 31, 2023 was $28.9 million.
- Total debt, net of deferred financing costs, at December 31,
2023, was $158.2 million.
Warrant Expiration
- As of December 31, 2023, the Company had 4,665,261 Warrants
issued and outstanding related to the Business Combination. These
warrants are set to expire on March 19, 2024.
Fiscal Year 2024 Guidance
Three Months Ended March 31,
2024
Year Ended December 31,
2024
Total Revenues
$
204-209 million
$
850-870 million
Adjusted EBITDA
$
21.5-23.5 million
$
90-100 million
Conference Call Details
A conference call to discuss the fourth quarter 2023 financial
results is scheduled for Wednesday, February 28, 2024, at 10:00
a.m. Eastern Time. Investors and analysts interested in
participating in the call are invited to dial 1-877-283-8977
(international callers please dial 1-412-542-4171) and provide the
passcode 10186273 approximately 10 minutes prior to the start of
the call. A live audio webcast of the conference call will be
available online at https://onespaworld.com/investor-relations. A
replay of the call will be available by dialing 844-512-2921
(international callers please dial 412-317-6671) and entering the
passcode: 10186273. The conference call replay will be available
from 2:00 p.m. Eastern Time on Wednesday, February 28, 2024 until
11:59 p.m. Eastern Time on Wednesday, March 6, 2024. The Webcast
replay will remain available for 90 days.
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 51 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.
On March 19, 2019, OneSpaWorld completed a series of mergers
pursuant to which OSW Predecessor, comprised of direct and indirect
subsidiaries of Steiner Leisure Ltd., and Haymaker Acquisition
Corp. (“Haymaker”), a special purpose acquisition company, each
became indirect wholly owned subsidiaries of OneSpaWorld (the
“Business Combination”). Haymaker is the acquirer and OSW
Predecessor the predecessor, whose historical results have become
the historical results of OneSpaWorld.
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.
Non-GAAP Financial Measures
We refer to certain financial measures that are not recognized
under U.S. generally accepted accounting principles (“GAAP”).
Please see “Note Regarding Non-GAAP Financial Information” and
“Reconciliation of GAAP to Non-GAAP Financial Information” below
for additional information and a reconciliation of the non-GAAP
financial measures to the most comparable GAAP financial
measures.
ONESPAWORLD HOLDINGS LIMITED
AND SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(UNAUDITED)
(in thousands, except per
share data)
Three Months Ended December
31,
Year Ended December
31,
$
%
$
%
2023
2022
Inc/(Dec)
Inc/(Dec)
2023
2022 (1)
Inc/(Dec)
Inc/(Dec)
REVENUES:
Service revenues
$
158,887
$
138,963
$
19,924
14
%
$
648,091
$
446,518
$
201,573
45
%
Product revenues
35,919
29,959
5,960
20
%
145,954
99,741
46,213
46
%
Total revenues
194,806
168,922
25,884
15
%
794,045
546,259
247,786
45
%
COST OF REVENUES AND OPERATING
EXPENSES:
Cost of services
131,708
114,865
16,843
15
%
541,356
375,136
166,220
44
%
Cost of products
30,700
24,302
6,398
26
%
125,649
87,555
38,094
44
%
Administrative
4,349
4,147
202
5
%
17,111
15,777
1,334
8
%
Salary, benefits and payroll taxes
9,097
10,698
(1,601
)
(15
)%
36,805
35,830
975
3
%
Amortization of intangible assets
4,205
4,205
—
—
16,823
16,823
—
—
Long-lived assets impairment
2,129
—
2,129
100
%
2,129
—
2,129
100
%
Total cost of revenues and operating
expenses
182,188
158,217
23,971
15
%
739,873
531,121
208,752
39
%
Income from operations
12,618
10,705
1,913
18
%
54,172
15,138
39,034
258
%
OTHER (EXPENSE) INCOME:
Interest expense, net
(8,427
)
(4,820
)
(3,607
)
(75
)%
(21,115
)
(15,755
)
(5,360
)
(34
)%
Change in fair value of warrant
liabilities
(10,821
)
(7,800
)
(3,021
)
(39
)%
(37,557
)
54,400
(91,957
)
(169
)%
Total other (expense) income, net
(19,248
)
(12,620
)
(6,628
)
(53
)%
(58,672
)
38,645
(97,317
)
(252
)%
(Loss) Income before income tax
expense
(6,630
)
(1,915
)
(4,715
)
(246
)%
(4,500
)
53,783
(58,283
)
1295
%
INCOME TAX EXPENSE (BENEFIT)
674
415
259
62
%
(1,526
)
624
(2,150
)
(345
)%
NET (LOSS) INCOME
$
(7,304
)
$
(2,330
)
$
(4,974
)
(213
)%
$
(2,974
)
$
53,159
$
(56,133
)
1887
%
NET (LOSS) PER VOTING AND NON-VOTING
SHARE:
Basic
$
(0.07
)
$
(0.03
)
$
(0.03
)
$
0.57
Diluted
$
(0.07
)
$
(0.03
)
$
(0.03
)
$
0.49
WEIGHTED-AVERAGE SHARES
OUTSTANDING:
Basic
100,232
92,911
97,826
92,507
Diluted
100,232
92,911
97,826
95,105
(1) Diluted EPS includes an adjustment to
exclude $6.1 million from net income for the year ended December
31, 2022, which is attributable to the gain on fair value of
in-the-money warrant liabilities as they were dilutive in this
period.
Three Months Ended
Year Ended
December 31,
December 31,
2023
2022
2023
2022
Selected Statistics
Period End Ship Count
193
179
193
179
Average Ship Count (1)
184
169
180
146
Average Weekly Revenues Per Ship
$
75,903
$
71,208
$
80,013
$
66,494
Average Revenues Per Shipboard Staff Per
Day
$
520
$
565
$
555
$
539
Period End Resort Count
51
50
51
50
Average Resort Count (2)
51
47
50
47
Average Weekly Revenues Per Resort
$
15,165
$
15,796
$
15,242
$
14,946
Capital Expenditures (in thousands)
$
2,544
$
1,557
$
5,415
$
4,825
Forecasted
Q1 2024
FY 2024
Period End Ship Count
193
197
Average Ship Count (1)
188
191
Period End Resort Count
51
50
Average Resort Count (2)
51
50
(1)
Average Ship Count reflects the fact that
during the period ships were in and out of service and is
calculated by adding the total number of days that each of the
ships generated revenue during the period, divided by the number of
calendar days during the period.
(2)
Average Resort Count reflects the fact
that during the period destination resort health and wellness
centers were in and out of service and is calculated by adding the
total number of days that each destination resort health and
wellness center generated revenue during the period, divided by the
number of calendar days during the period.
Note Regarding Non-GAAP Financial Information
This press release includes financial measures that are not
calculated in accordance with GAAP, including Adjusted net income
(loss), Adjusted net income (loss) per diluted share, Adjusted
EBITDA and Unlevered after-tax free cash flow.
We define Adjusted net income (loss) as net income (loss),
adjusted for items, including increase in depreciation and
amortization expense resulting from the Business Combination,
non-cash stock-based compensation, impairment charges of long-lived
assets and change in fair value of warrant liabilities. Adjusted
net income (loss) per diluted share is defined as Adjusted net
income (loss) divided by the weighted average diluted shares
outstanding during the period, as if such shares had been
outstanding during the entire three and twelve month periods ended
December 31, 2023 and 2022.
We define Adjusted EBITDA as loss from continuing operations
before interest expense, income taxes (benefit) expense,
depreciation and amortization, adjusted for the impact of certain
other items, including non-cash stock-based compensation expense,
impairment charges of long-lived assets and change in fair value of
warrant liabilities.
We define Unlevered after-tax free cash flow as Adjusted EBITDA
minus capital expenditures and cash taxes paid.
We believe that these non-GAAP measures, when reviewed in
conjunction with GAAP financial measures, and not in isolation or
as substitutes for analysis of our results of operations under
GAAP, are useful to investors as they are widely used measures of
performance and the adjustments we make to these non-GAAP measures
provide investors further insight into our profitability and
additional perspectives in comparing our performance to other
companies and in comparing our performance over time on a
consistent basis. Adjusted net income (loss), Adjusted net income
(loss) per diluted share, Adjusted EBITDA and Unlevered after-tax
free cash flow have limitations as profitability measures in that
they do not include total amounts for interest expense on our debt
and provision for income taxes, and the effect of our expenditures
for capital assets and certain intangible assets. In addition, all
of these non-GAAP measures have limitations as profitability
measures in that they do not include the effect of non-cash
stock-based compensation expense and the impact of certain expenses
related to items that are settled in cash. Because of these
limitations, the Company relies primarily on its GAAP results.
In the future, we may incur expenses similar to those for which
adjustments are made in calculating Adjusted EBITDA. Our
presentation of Adjusted EBITDA should not be construed as a basis
to infer that our future results will be unaffected by
extraordinary, unusual, or nonrecurring items.
Reconciliation of GAAP to Non-GAAP Financial
Information
The following table reconciles Net income (loss) to Adjusted net
income (loss) for the fourth quarters and year-to-date periods
ended December 31, 2023 and 2022 and Adjusted net income (loss) per
diluted share for the fourth quarters and year-to-date periods
ended December 31, 2023 and 2022 (amounts in thousands, except per
share amounts):
Three Months Ended
Year Ended
December 31,
December 31,
2023
2022
2023
2022
Net (loss) income
$
(7,304
)
$
(2,330
)
$
(2,974
)
$
53,159
Change in fair value of warrant
liabilities
10,821
7,800
37,557
(54,400
)
Depreciation and amortization (a)
3,761
3,761
15,044
15,044
Long-lived assets impairment
2,129
—
2,129
—
Stock-based compensation
3,093
3,597
10,138
12,893
Adjusted net income
$
12,500
$
12,828
$
61,894
$
26,696
Adjusted net income per diluted share
$
0.12
$
0.14
$
0.63
$
0.28
Diluted weighted average shares
outstanding
100,232
92,911
97,826
95,105
(a) Depreciation and amortization refers
to addback of purchase price adjustments to tangible and intangible
assets resulting from the Business Combination.
The following table reconciles Net (loss) income to Adjusted
EBITDA and Unlevered after-tax free cash flow for the fourth
quarter and year-to-date periods ended December 31, 2023 and 2022
(amounts in thousands):
Three Months Ended
Year Ended
December 31,
December 31,
2023
2022
2023
2022
Net (loss) income
$
(7,304
)
$
(2,330
)
$
(2,974
)
$
53,159
Income tax expense (benefit)
674
415
(1,526
)
624
Interest expense, net
8,427
4,820
21,115
15,755
Change in fair value of warrant
liabilities
10,821
7,800
37,557
(54,400
)
Depreciation and amortization
5,542
6,379
22,040
22,353
Long-lived assets impairment
2,129
—
2,129
—
Stock-based compensation
3,093
3,597
10,138
12,893
Business combination costs (b)
—
—
713
—
Adjusted EBITDA
$
23,382
$
20,681
$
89,192
$
50,384
Capital expenditures
(2,544
)
(1,557
)
(5,415
)
(4,825
)
Cash paid during the period for income
taxes
(3,970
)
(99
)
(4,716
)
(434
)
Unlevered after-tax free cash flow
$
16,868
$
19,025
$
79,061
$
45,125
(b) Business combination costs refers to
legal and advisory fees incurred by OneSpaWorld in connection with
the secondary offering and warrant conversion.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240228774853/en/
ICR: Investors: Allison Malkin, 203-682-8225
allison.malkin@icrinc.com
Follow OneSpaWorld: Instagram: @onespaworld Twitter:
@onespaworld LinkedIn: OneSpaWorld Facebook: @onespaworld
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