OneSpaWorld Reports 11.7% Revenue Growth, Net Income Turnaround in Q3 2024

As of September 30, 2024, OneSpaWorld Holdings Limited reported significant financial growth compared to the previous fiscal period. The company’s total revenues for the three months ended September 30, 2024, reached $241.7 million, an increase of approximately 11.7% from $216.3 million in the same period of 2023. This growth was driven by service revenues of $194.4 million, up 11% from $175.8 million, and product revenues of $47.3 million, which increased by 17% from $40.4 million.

For the nine months ended September 30, 2024, total revenues were $677.8 million, compared to $599.2 million in 2023, marking a 13% increase. Service revenues for this period rose to $547.5 million, up 12% from $489.2 million, while product revenues increased by 18% to $130.4 million from $110 million.

Despite the revenue growth, net income for the three months ended September 30, 2024, was $21.6 million, a decrease from $23.4 million in the prior year, primarily due to increased income tax expenses and the absence of gains from warrant liabilities. For the nine-month period, net income surged to $58.5 million, a substantial increase from $4.3 million in 2023, attributed to a positive change in the fair value of warrant liabilities and reduced interest expenses.

The company’s balance sheet showed improvements, with total assets increasing to $734.0 million from $706.1 million as of December 31, 2023. Total current assets rose to $144.7 million, and total shareholders' equity increased to $540.1 million from $434.1 million. Long-term debt significantly decreased to $94.9 million from $158.2 million, reflecting the company’s efforts to reduce leverage.

Strategically, OneSpaWorld entered a new credit agreement on September 20, 2024, establishing a term loan facility of $100 million and a revolving loan facility of up to $50 million, which remained undrawn as of the reporting date. The proceeds from the credit facilities were utilized to repay the remaining principal balance of the First Lien Term Loan Facility.

The company also implemented a share repurchase program, authorizing up to $50 million in repurchases, and declared a quarterly dividend of $0.04 per common share, reflecting a commitment to returning value to shareholders. Overall, OneSpaWorld's performance in the third quarter and the first nine months of 2024 demonstrates a robust recovery and strategic financial management amidst a challenging market environment.