On this page of StockholderLetter.com we present the latest annual shareholder letter from ONESPAWORLD HOLDINGS Ltd — ticker symbol OSW. Reading current and past OSW letters to shareholders can bring important insights into the investment thesis.

 •  4/24/2025 Letter Continued (Full PDF)
 •  4/28/2023 OSW Stockholder Letter
 •  4/25/2024 OSW Stockholder Letter
 •  More "Sporting Goods & Activities" Category Stockholder Letters
 •  OSW Benford's Law Stock Score = 64

OSW Shareholder/Stockholder Letter Transcript:

O N E S PAWO R LD AN N UAL R E P O RT 2 0 2 4


Wellness is the practice of
treating the mind, body,
and spirit as one.

Dear Fellow Shareholders,
As I write this letter after another record-breaking year
for our Company, I am reflecting on how incredibly far
we have come from those unprecedented challenges
and uncertainties we faced five years ago. Thank you for
your belief in us and your advice and guidance to me
along the way toward achieving consecutive years of
record results. Our leadership team, Board and I are
grateful for the trust and confidence you place in us.
Before proceeding with my review of 2024 and the year
ahead, I want to first recognize our phenomenal
employees around the globe whose commitment
enables our record results     in what they all do for our
Company, and how they do it, every single day. I am
honored to work with and lead such dedicated,
determined and capable people and I thank them for
committing themselves, their families and their futures
to OneSpaWorld and our shared mission to create
extraordinary value for our stakeholders.
I also wish to express my gratitude to our cruise line and
destination resort partners for entrusting us with their
most valuable assets     their guests, their staff and their
brands     and for their confidence in our ability to deliver
incomparable service and extraordinary guest
experiences. And to our supplier partners and advisors
for prioritizing our relationships to deliver the
outstanding support and service we require to achieve
our mission.
We delivered record results again in 2024. During the
year, our team executed in outstanding fashion,
leveraging our powerful global operating platform to
drive best-ever performance across virtually every
operating and financial function and metric. Our
positive momentum, built on our innovations and
investments across every aspect of our operations,
evidences the power of our people executing our
complex business with precision to deliver outstanding
service to our partners and their guests, and outstanding
results for our shareholders.
We delivered strong operating and financial
performance throughout 2024, realizing four
consecutive quarters of record results. For the full year,
we earned Total Revenue of $895 million and Adjusted
EBITDA of $112.1 million, 13% and 26% higher, respectively,
than our prior 2023 records. We finished 2024 well
positioned to achieve continued strong performance in
2025, with a full year of our health and wellness center
operations aboard 199 cruise ships (and growing in
2025) and in 50 destination resorts.
As in 2024, we will drive strong ongoing performance
by investing in and empowering our people; innovating
and leveraging our strong competitive positioning and
global operations; advancing our long-standing cruise
line and destination resort partnerships; striving to win
valuable new partnerships; and always innovating our
guest offerings and experiences; all underpinned by
our strong financial position, operating discipline and
unwavering commitment to service excellence across
our business.
Shareholder returns and capital allocation. Our strong
operating and financial performance gave rise to our
43% share price appreciation during 2024. In addition,
based on our financial strength and prospective
operating performance and predictable free cash flow
generation, our Board approved both a regular
quarterly cash dividend, targeting a 1.0% annual yield,
and a $50 million share repurchase program. We
repurchased approximately 745,000 outstanding
common shares under this program during the year,
returning $11.2 million of surplus capital to our
shareholders.
Subsequent to year-end, we repurchased an additional
2,094,000 outstanding common shares under this
program, returning another $37.9 million to our
shareholders. Approximately $0.9 million of this
authorization is available for additional common share
repurchases. We remain well positioned to continue to
invest in our long-term growth and return capital
predictably to our shareholders.
In addition, we repurchased approximately 1.4 million
shares at an average price of $12.76 per common share
during 2024 under a share repurchase agreement with
our private equity investor, Steiner Leisure Limited, that
we executed in concert with their full exit of their
ownership position. We believe that our investment in
their full exit served to eliminate the dilutive impact of
their ownership overhang and substantially increased
our public float helping fuel the ensuing share price
appreciation.
The key strategic priorities that drove our record
performance and shareholder value included:
Expanding key cruise line partnerships and maritime
operations. Since the start of 2024, we have continued
to expand our industry dominant market share and
further cement our competitive positioning as the
pre-eminent operator of health and wellness centers at
sea for premier cruise line brands.
Key initiatives included:
    Building on our more than three-decade partnership
with Royal Caribbean International, to execute a new
seven-year agreement to operate health and wellness
centers across its current fleet of 28 Royal Caribbean
ships and 13 Celebrity ships, and all new ships introduced
into service by both brands during the term of our
agreement.

    Entering into a long-term agreement to operate health
and wellness centers for Mitsui Ocean Cruises, our
valuable new partner.
    And subsequent to year-end, executing a long-term
agreement to operate health and wellness centers on 11
ships for P&O Cruises and Cunard.
Looking ahead, we expect to further strengthen our
market leadership as we support our cruise line
partners    plans to add nine new maritime health and
wellness centers in fiscal 2025, ending the year
executing our operations aboard at least 207 vessels.
Innovating high-value guest experiences. We
delivered continuous innovation in our offering of guest
services, products and solutions and in further elevating
our guest experiences, which drove meaningful sales
productivity and profitability gains during the year. Our
key 2024 initiatives generated strong demand for our
medi-spa, IV therapy and acupuncture modalities,
among others. And we introduced new cutting-edge
cryotherapy pain care, Megawhite teeth whitening, and
LED light therapy skin care and pain care solutions to
robust guest acclaim and incremental economics. In
addition, we continued to expand our high-value medispa services to 147 ships as of year-end, which we
forecast to be on 151 ships by year-end 2025.
Driving operational efficiencies and increasing
productivity. Our onboard productivity-focused
strategies drove significant increases in revenue per
passenger per day, revenue per staff per day and
average weekly revenue. Of particular note, our global
platform to source, train, empower and retain
increasingly
experienced
high-value
onboard
personnel drove higher services revenue and retail
products sale attachment per guest service and higher
revenue per staff day.
Additionally, we advanced initiatives that increased
pre-cruise booked services to 22% of total service
revenue. Pre-cruise booked guests consistently account
for 30% higher revenue per guest than guests who
schedule services only when onboard. Pre-cruise
booking also enables our spa managers to better
schedule and utilize staffing, facilities and service
modality capacities to drive higher health and wellness
center productivity and economics.
Strengthening and optimizing our financial position
and capitalization. We leveraged our strong cash flow
generation and after-tax free cash flow conversion
during 2024 to pay down $59.6 million of our debt and
enhance our financial flexibility in concert with
executing a new $100 million five-year term loan
agreement and $50 million revolving credit facility. We
closed the year with a strong and durable balance
sheet that included $58.6 million in cash and total
liquidity of $108.6 million. We will continue to build and
leverage the increasing strength of our financial position
and apply our capital allocation strategy to invest
accretively across our business and to optimize total
returns for our shareholders.
Commitment to sustainability and social responsibility.
We published our inaugural Sustainability and Social
Responsibility report, highlighting our commitment to
exemplary care for our employees, outstanding service
to our partners and their guests, and responsible
stewardship of the environment and communities that
our Company impacts across the globe. Our report
underscores our dedication to delivering value to all
stakeholders impacted by our operations. I invite you
to read our report, available on our website at www.
o n es p awo rld .co m/o u r-wo rld/co rp o rate - so c i a lawareness, to gain a valuable perspective of what our
Company stands for in effecting key determinants of
our irreplicable competitive position and value add.
Executive leadership. Following year-end, I had the
great pleasure to announce the appointment of
Stephen Lazarus, my trusted partner of twenty years, to
President of our Company. Stephen has earned this
position many times over, having led the construction of
our dominant market position, our critical operating,
financial and capital markets functions, and our
management through extraordinary challenges and
growth. His business acumen and leadership have been
and will be instrumental to our success. Stephen has
the unequivocal support and admiration of our entire
executive and operating leadership team and is a
trusted partner to our Board.
Going forward, I will continue to serve you as Executive
Chairman and Chief Executive Officer and Stephen will
continue his responsibilities as Chief Financial Officer
and Chief Operating Officer. In concert with our Board,
we have been in process to transition Stephen   s Chief
Financial Officer responsibilities, which we expect to
effect over the course of 2025. Stephen   s appointment
as President further underscores the strength of our
leadership development culture to resource, empower
and advance our amazing people across our complex
global operations.
Continued on the next page.



 4/24/2025 Letter Continued (Full PDF)