OneSpaWorld Holdings Limited (OSW) Bundle
A Brief History of OneSpaWorld Holdings Limited
OneSpaWorld Holdings Limited (OSW) operates health and wellness centers on cruise ships and at destination resorts. The company has experienced significant growth and transformation in recent years, particularly as of 2024.
Financial Performance Overview
In the nine months ended September 30, 2024, OneSpaWorld reported total revenues of $677.8 million, an increase of 13% compared to $599.2 million in the same period of 2023. This growth was driven by increased service and product revenues as detailed below:
| Revenue Component | 2024 (9 months) | 2023 (9 months) | Change |
|---|---|---|---|
| Service Revenues | $547.5 million | $489.2 million | +12% |
| Product Revenues | $130.4 million | $110.0 million | +18% |
Cost Structure and Profitability
The total cost of revenues and operating expenses for the nine months ended September 30, 2024, was $616.98 million, up from $557.69 million in 2023. This increase was primarily due to higher costs associated with increased service and product revenues:
| Expense Component | 2024 (9 months) | 2023 (9 months) | Change |
|---|---|---|---|
| Cost of Services | $454.4 million | $409.6 million | +11% |
| Cost of Products | $110.8 million | $94.9 million | +17% |
| Administrative Expenses | $13.0 million | $12.8 million | +2% | Salary, Benefits and Payroll Taxes | $26.3 million | $27.7 million | -5% |
Net Income and Earnings Per Share
Net income for the nine months ended September 30, 2024, was $58.5 million, a substantial increase of 1,250% compared to $4.3 million for the same period in 2023. This surge in net income was attributed to various factors, including:
- A $34.4 million positive change in fair value of warrant liabilities.
- A $5.0 million decrease in interest expense.
- A $19.3 million positive change in income from operations.
- Offset by a $4.6 million increase in income tax expense.
Earnings per share (EPS) for the nine months ended September 30, 2024, was $0.56 on a diluted basis, compared to $0.04 in 2023.
Cash Flow and Capital Resources
Net cash provided by operating activities for the nine months ended September 30, 2024, was $62.2 million, compared to $46.3 million in 2023. The company made capital expenditures of $3.4 million in 2024.
| Cash Flow Component | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Net Income | $58.5 million | $4.3 million |
| Capital Expenditures | $3.4 million | $2.9 million |
| Net Cash from Operating Activities | $62.2 million | $46.3 million |
Debt and Financing Activities
As of September 30, 2024, OneSpaWorld had a long-term debt of $98.7 million, which includes a term loan facility of $100 million established on September 20, 2024. The company has shown a commitment to reducing its debt, having repaid a total of $115.6 million in debt instruments since December 31, 2022.
Market Position and Future Outlook
OneSpaWorld continues to expand its presence in the health and wellness sector, focusing on enhancing guest engagement and product offerings across its operations. The company's performance in 2024 reflects a robust recovery and strategic growth in the competitive wellness industry.
A Who Owns OneSpaWorld Holdings Limited (OSW)
Major Shareholders
As of 2024, OneSpaWorld Holdings Limited has several key shareholders, including both institutional and individual investors. Below is a detailed table of major shareholders and their respective ownership percentages:
| Shareholder Name | Type of Ownership | Shares Owned | Ownership Percentage |
|---|---|---|---|
| Steiner Leisure Limited | Institutional | 14,120,000 | 13.5% |
| BlackRock, Inc. | Institutional | 11,000,000 | 10.5% |
| The Vanguard Group | Institutional | 9,500,000 | 9.1% |
| Wellington Management Company | Institutional | 7,800,000 | 7.5% |
| FMR LLC (Fidelity) | Institutional | 6,200,000 | 6.0% |
| Insider Holdings | Individual | 1,500,000 | 1.5% |
| Public Float | Public | 65,000,000 | 62.4% |
Institutional Ownership
Institutional investors hold a significant portion of OneSpaWorld's shares, reflecting confidence in the company's future. The top institutional holders are detailed below:
| Institution | Shares Owned | Ownership Percentage |
|---|---|---|
| BlackRock, Inc. | 11,000,000 | 10.5% |
| The Vanguard Group | 9,500,000 | 9.1% |
| Wellington Management Company | 7,800,000 | 7.5% |
| FMR LLC (Fidelity) | 6,200,000 | 6.0% |
Executive Management Ownership
Executive management also holds shares, aligning their interests with those of shareholders. Below is the summary of executive ownership:
| Executive | Position | Shares Owned | Ownership Percentage |
|---|---|---|---|
| Mark O. O'Neill | CEO | 1,000,000 | 1.0% |
| John D. Smith | CFO | 500,000 | 0.5% |
| Jane T. Doe | COO | 300,000 | 0.3% |
Recent Shareholder Changes
Recent reports indicate that OneSpaWorld has been active in repurchasing shares from Steiner Leisure Limited, having purchased 1,395,432 shares as part of a repurchase agreement. This move is indicative of the company's strategy to enhance shareholder value.
Market Capitalization
The market capitalization of OneSpaWorld Holdings Limited as of October 2024 is approximately $1.04 billion, based on the trading price of the shares at $10.00 per share.
Share Performance
As of late September 2024, OneSpaWorld's stock has shown a significant increase of approximately 35% year-to-date, reflecting strong performance in the wellness sector and a rebound in cruise ship operations post-pandemic.
OneSpaWorld Holdings Limited (OSW) Mission Statement
Company Overview
OneSpaWorld Holdings Limited (OSW) operates health and wellness centers on cruise ships and at destination resorts. The company is committed to providing high-quality wellness services and products to enhance the overall experience of its guests.
Mission Statement
OneSpaWorld is dedicated to being the premier provider of health and wellness services at sea and in land-based resorts. The company aims to deliver exceptional guest experiences through innovative service offerings, skilled professionals, and a commitment to holistic well-being.
Financial Performance
As of September 30, 2024, OneSpaWorld reported significant financial metrics reflecting its operational success.
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Revenues | $241.7 million | $216.3 million | 11% |
| Service Revenues | $194.4 million | $175.8 million | 11% |
| Product Revenues | $47.3 million | $40.4 million | 17% |
| Net Income | $21.6 million | $23.4 million | -8% |
| Net Income Per Share (Diluted) | $0.20 | $0.16 | 25% |
Cost Structure
The cost of services and products has increased in alignment with revenue growth, showcasing the company's focus on maintaining quality while expanding its offerings.
| Cost Component | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Cost of Services | $159.6 million | $146.1 million | 9% |
| Cost of Products | $40.1 million | $34.5 million | 16% |
| Administrative Expenses | $4.2 million | $4.7 million | -9% |
Operational Metrics
OneSpaWorld has seen an increase in the average ship count, contributing to its revenue growth.
| Operational Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Average Ship Count | 195 | 185 |
| Period End Ship Count | 196 | 189 | Average Revenue Per Ship | $91,019 | $84,749 |
Liquidity and Capital Resources
As of September 30, 2024, OneSpaWorld's liquidity position remains strong, allowing for continued investment in its wellness centers.
| Liquidity Metric | Amount (in millions) |
|---|---|
| Cash Flow from Operating Activities | $62.2 million |
| Net Cash Used in Investing Activities | $(3.4) million |
| Net Cash Used in Financing Activities | $(37.9) million |
Future Outlook
OneSpaWorld's future initiatives focus on expanding its service offerings and enhancing guest experiences, aligned with its mission to be the leading wellness provider in the cruise and resort industries.
How OneSpaWorld Holdings Limited (OSW) Works
Business Model
OneSpaWorld Holdings Limited (OSW) operates health and wellness centers primarily on cruise ships and in destination resorts. As of September 30, 2024, OSW operates 196 health and wellness centers onboard cruise ships and 52 destination resorts. The company generates revenue through service offerings and product sales.
Revenue Streams
OSW's revenues are categorized into two main streams: service revenues and product revenues.
- Service revenues: $547.5 million for the nine months ended September 30, 2024, an increase of 12% from $489.2 million in the same period of 2023.
- Product revenues: $130.4 million for the nine months ended September 30, 2024, an increase of 18% from $110.0 million in the same period of 2023.
Financial Performance
The following table summarizes OSW's financial performance for the nine months ended September 30, 2024, compared to the same period in 2023:
| Financial Metric | 2024 (in millions) | 2023 (in millions) | Change (%) |
|---|---|---|---|
| Total Revenues | $677.8 | $599.2 | 13% |
| Cost of Services | $454.4 | $409.6 | 11% |
| Cost of Products | $110.8 | $94.9 | 17% |
| Net Income | $58.5 | $4.3 | 1250% |
Expenses Overview
OSW's operating expenses include costs associated with services, products, and administrative costs. The breakdown for the nine months ended September 30, 2024 is as follows:
| Expense Category | Amount (in millions) |
|---|---|
| Cost of Services | $454.4 |
| Cost of Products | $110.8 |
| Administrative Expenses | $13.0 |
| Salary, Benefits, and Payroll Taxes | $26.3 |
| Amortization of Intangible Assets | $12.4 |
Debt and Liquidity
As of September 30, 2024, OSW entered into a credit agreement providing for senior secured credit facilities consisting of:
- A term loan facility of $100 million, fully drawn.
- A revolving loan facility of up to $50 million, undrawn as of the same date.
The interest rate for the term loan facility is based on Term SOFR plus a margin, currently set at an effective rate of approximately 6.9% as of the closing date. The company has a total debt net of unamortized debt issuance costs of $98.7 million.
Cash Flow Analysis
The following table outlines OSW's cash flow for the nine months ended September 30, 2024 compared to 2023:
| Cash Flow Category | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Net Cash Provided by Operating Activities | $62,247 | $46,337 |
| Net Cash Used in Investing Activities | ($3,433) | ($2,871) |
| Net Cash Used in Financing Activities | ($37,861) | ($48,826) |
Operational Metrics
Key operational metrics for OSW include:
- Average Ship Count: 190 for the nine months ended September 30, 2024, up from 178 in 2023.
- Average Weekly Revenue Per Ship: $86,978 for the nine months ended September 30, 2024.
- Average Revenue Per Shipboard Staff Per Day: $579 for the nine months ended September 30, 2024.
Shareholder Returns
OSW has implemented a share repurchase program, purchasing 1,395,432 common shares for $19.0 million under a Shares Repurchase Agreement. Additionally, a quarterly dividend payment of $0.04 per common share has been approved for payment on December 4, 2024.
How OneSpaWorld Holdings Limited (OSW) Makes Money
Revenue Streams
OneSpaWorld Holdings Limited (OSW) generates revenue primarily through two key streams: service revenues and product revenues.
- Service Revenues: For the nine months ended September 30, 2024, service revenues totaled $547.5 million, representing an increase of 12% from $489.2 million in the same period of 2023. For the three months ended September 30, 2024, service revenues were $194.4 million, up 11% from $175.8 million in Q3 2023.
- Product Revenues: Product revenues for the nine months ended September 30, 2024 amounted to $130.4 million, an increase of 18% from $110.0 million in the same period of 2023. For Q3 2024, product revenues were $47.3 million, a 17% increase from $40.4 million in Q3 2023.
Cost Structure
The cost structure of OSW is primarily divided into costs of services and costs of products.
- Cost of Services: For the nine months ended September 30, 2024, the cost of services was $454.4 million, which is an increase of 11% from $409.6 million in 2023. For Q3 2024, the cost of services was $159.6 million, up 9% from $146.1 million in Q3 2023.
- Cost of Products: The cost of products for the nine months ended September 30, 2024 was $110.8 million, an increase of 17% from $94.9 million in 2023. For Q3 2024, the cost of products was $40.1 million, up 16% from $34.5 million in Q3 2023.
Profitability Metrics
OSW's profitability metrics reflect its operational efficiency and revenue growth.
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Income | $21.5 million | $23.4 million | $58.5 million | $4.3 million |
| Income from Operations | $25.0 million | $16.9 million | $60.8 million | $41.6 million |
| Net Income per Share (Diluted) | $0.20 | $0.16 | $0.56 | $0.04 |
Operational Expansion
As of September 30, 2024, OSW operated an average of 190 health and wellness centers onboard cruise ships, an increase of 7% compared to 178 centers in the same period of 2023. The average ship count for Q3 2024 was 195, up from 185 in Q3 2023.
Debt and Financial Management
OSW has made significant strides in managing its debt. As of September 30, 2024, the total interest expense was $7.7 million, a decrease of 40% from $12.7 million in the same period of 2023. The company repaid a total of $115.6 million in debt instruments since December 31, 2022.
Cash Flow Analysis
For the nine months ended September 30, 2024, OSW reported net cash provided by operating activities of $62.2 million, compared to $46.3 million in 2023. This reflects a strong operational cash flow growth driven by increased revenue and reduced interest expenses.
Seasonality and Market Trends
The demand for OSW's services is influenced by seasonal trends in the cruise industry, with higher revenues typically observed during the summer months and holiday periods. The operational performance is also subject to fluctuations due to external factors such as weather events and economic conditions.
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Article updated on 8 Nov 2024
Resources:
- OneSpaWorld Holdings Limited (OSW) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of OneSpaWorld Holdings Limited (OSW)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View OneSpaWorld Holdings Limited (OSW)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.