OneSpaWorld Holdings Limited (OSW) 1 May 242024 Q1 Earnings call transcript

Good day, and welcome to the OneSpaWorld First Quarter 2024 Earnings Conference Call. [Operator Instructions]. And now I would like to turn the conference over to Allison Malkin for some introduction. Please go ahead, Allison.

Thank you. to Quarter welcome and Earnings and Webcast. morning, OneSpaWorld's XXXX First Call Good

statements. I'd you webcast analysis on to should number and we and These differ like Before affecting begin, of our reflect from only remind our to forward-looking and available judgment today's forward-looking statements deemed information on these not that expectations call be and current business. may may constitute of statements. made statements results today, you place factors reliance undue based forward-looking as Accordingly, actual materially on a certain

release, risks For to uncertainties a included more conference refer thorough discussion in regarding made the with of call statements is the a forward-looking was forward-looking on to our otherwise. webcast, that we events new and you obligation in to the first or this the SEC and earnings We associated not be forward-looking XXXX disclaimer any result as statements alter to which statements, undertake today do furnished whether of update any X-K. Form future quarter information, or

this In refer our adjusted this on earnings metrics found of to issued can An addition, explanation release earlier may non-GAAP call. these in certain metrics company the be morning.

the our Chief an are our and the Operating Financial Executive today priorities. provide Executive key on Leonard. over turn our provide Lazarus, details quarter Then like to begin of first Leonard on and and update will Leonard me performance I financials call would to XXXX more guidance. with Stephen Fluxman, will now Officer Stephen President; and Joining Officer. Officer Chief Chairman, Chief and a review

in Results to welcome to which revenue, very record income operations of with and first the adjusted report We quarter double-digit Allison. XXXX and from another Good Thank to setting I'm OneSpaWorld's growth levels. all start robust morning, pleased delivered at First results. EBITDA, our were total generating year record strong Call. you, Conference Quarter

ongoing our provide and current our growth significant future. year strategic accomplishments for also priorities, well towards achieved into in We which the the

XXXX In strong in XXXX, strategy fact, resounding ongoing resulted in execution the to momentum Their our enhancement history exceptionally partnerships, fiscal dominance and shareholders. increased partners navigation by a that of into best success our esteemed company. across relentless quarter yielded talented our guest business value leveraging our experience is to dedication our the destination of our team. superior and to to our of cruise the and The business into early model service innovation, of translating from fronts all testament of intricate outstanding category extraordinary adept of line have our is resort first

currently As we superior we cruise ability company to for look of continued through the the and luxury partners and second ahead, continued guests, and provide is will levels Based position execution a quarter to success. to raised combined with expect the expect We our and by guidance start, strategy, differentiated increase experience to EBITDA resort the team, service our ranges at continue fiscal beyond in execution which XX% total drive partnerships initiatives, by XX% new revenues annual of organic and from strong continued adjusted outlook first the achieved growth, XXXX. have we outperformance new a the on our for our ongoing talented by midpoint our off extraordinary positive to increase the quarter. to

long-term share and Board million $XX confidence Directors approved sheet, strong of the further of in in authorization. strategy, balance business our prospects demonstration our and our Additionally, our near- repurchase a

end, count continued million EBITDA from expansion from $XX.X million with million, quarter and ship compared the last Turning an from average X,XXX personnel the operations compared ship in ships increasing count first the million period. quarter million and revenue Also, to year we quarter increased the Total at XXX rose average XXXX. quarter $XXX.X and of The had end of XX% was ago, on $XX during XX% first health to ship $XXX.X highlights a year. quarter XXXX. end, for an of at quarter. of adjusted of the XXX centers at XXX first from now $XX.X ships and The had $XX.X At quarter million with wellness ships, the and the in income ship cruise XXX XXXX. the we vessels XX% count our to of of X,XXX

anniversary contribute we to of continued of success XXXX. average was the quarter ongoing double-digit fiscal levels as de-SPAC compared fiscal in onboard operating in the revenue and as were per ship achieved metrics, to our Keep The of of Notably, staff first quarter revenue normalization for in ship key per the still operating also COVID-XX. average the key listing. experienced post marked staff first the saw we passenger We members as our key metrics recording shipboard staff the factors load per delivery count certain to in weekly levels and quarter that to surpass public staff reached across weekly strength experienced to growth the above the members reflecting across fifth-year XXXX, in XXXX members. These increases personnel level initiative of cruise quarter, first also company mind XXXX milestone a below full XXXX. returning our day retain

momentarily their to all remaining of The notably comment canceled. growth, revenue warrants outstanding robust the will with our for profit Stephen support in XX% warrants were and holders converted. As warrant company OneSpaWorld addition expressed

in quarter priorities, strategic we our structure trading investor, equity of progress highlights. Importantly, float. included let X tranche eliminated its liquidity our sold increasing The capital private towards of overhang simplifying public final some me share our also which our the while shares,

service current in captured and currently during exclusive cruise Celebrity Cruises line service entered XX Royal partnerships To into first growth line a the we partners terms. quarter, new with our future in with ship new highly added cruise their end, this visible new and Caribbean First, agreement fault. entering ships agreement to for we the ships and

and our our we operate end, we evidence to competitive our providing further quarter operating beginning Cruises list capabilities. at best-in-class late Aroya strengthening where partners thereby health of of addition, position XXXX, all wellness facilities and market-leading added In

end to expect about operating fiscal vessels. on We XXX XXXX

Second, high-value we and launch continue to products. services

is with year innovation to LED facial body the technology this and and introductions Biotec robust cryotherapy services cryotherapy driven of complement Our facial. new services new pipeline Elemis X.X by

to this continue other we acupuncture introduced we introduce therapy, acupuncture which where improved augmenting dramatically Additionally, LightStim revenue the have has vessels on protocol. services,

center the we spa. a double-digit per treatments the sustained the enhancing increase grew utilizing to wellness productivity. maritime number key strategic supported of of of passengers at operating health prebooking by focused rates, initiatives Third, We metrics on and number client and pipeline

capacities drive previously average who more higher us on to and we spend wellness staffing, prebooking and than to allowing board discussed, economics. guests while As facilities optimize those XX% book service center health on better

also which treatment benefits to drive a spend contribute pricing products. higher-priced guest. per revenue We of which services increases continue from growth certain in services and also simplified services, and lens, in in spend average Average resulted higher in and towards refinements mix by architecture menus of to modified service guest and service service length frequency

Medispa XXXX. XXX of XXXX, ships end services offering quarter the increased from our in on the also up XXX at first ships We with of

our Fourth, continue we enhanced expand year. to We to flexibility. ships Medispa our position this and financial further offering XXX

Overall, lien program, during second repaid strong addition flow repurchase approved cash quarter quarter. of of loan $XX the common $XX.X demonstrating further XXXX, utilized the a share our in strategy capital remain And million This and first we of to simplification interest our In shares debt confidence which lowered of Board repurchase total million term about expense. $XX ongoing brought to our and our business million we growth Directors our has reduction excited the opportunities. substantially fifth, long-term our our outlook. since the to structure,

market centers strong destination the made year, on further sports at in of financial the growth visible health a comment operation highly position advantages results. to over and in another expect us With year we across that, will We sea, line start I a Stephen, by to and land, record-setting with the who the turn coupled of on favorable for our will by Stephen? buoyed possess to XXXX. possible you opportunities first wellness quarter dynamics cruise industry

you, morning, Thank Good Leonard. everybody.

health in the the was X% XXXX. our our compared first on wellness centers average onboard first We increase start board million centers sheet. details revenue ships along and health XXX attributable on will during this the of XX% count report principally wellness a morning. balance average quarter our to I more million, with further we first quarter improvements Total are year was our bottom-line the and top up better-than-expected some and count to quarter of results, share $XXX.X to ships with operating reported of during to ship strong XXX pleased operating $XXX.X compared to that to as with ship quarter XXXX. increasing The

wellness share revenue warrants Cost $X.XX income was was from and and costs the the $XX.X to of first teams. addition, Adjusted wellness quarter in was changes to XXXX. liabilities, million The revenues products revenues attributable the sea the income from income quarter compared in net interest to value our and year. operating the of our in $XX.X by increase our market a our XXXX, in net million a through million each $X.X diluted million adjusted million the change in a prices ended fair last protocols diluted million increased of our to result complex growth centers income $XX.X quarter other positive The of profitability quarter and in health $XX.X health inputs the $XX.X guest of of first or million warrant fair product to EBITDA a financial drive EBITDA primarily first In to loss million of as per being in of compared increase benefited of disciplined the as per adjusted revenues of and $XX.X onboard share operating offering of net and in XXXX. a enhanced positive of during guest in third million first was guest income innovations, to gain The remeasurement $XX.X million centers experiences, services, in was or year, $X.XX of costs was prior million engagement and Adjusted $XX.X we quarter the liabilities, decrease and a in million $X.X $XX compared service warrant $X.X in in from net instruments. execution operations. of of loss pre-booking during per net The income or value million was of net adjusted March change and stock at first sea in of income $XX.X fair XXXX, quarter an our during revenue million ended value XX%. exercised million XXXX. associated as increased $XXX.X you of diluted quarter year. attributable quarter to with of know, of the in these March XX, Net and XX, increase a the product in deriving gain initiatives associated diluted of net primarily increase share in of of million net $X.XX, corporate compared service $XX.X on compared our onboard centers health on and observable wellness onboard of liabilities share to value change adjusted to per of warrant service year. income with and $XXX.X change net with million Cost of loss first value $XXX quarter at and product the the the million quarter our common compared of prior or from quarter compared $X.XX was to of land of the million expense, XXXX. of attributable $XXX.X of prior the $XX.X the of the was of fair the land in to operating $XX.X The million compared our our

we million million. term In loan. at Turning last second balance interest first we ongoing of $XX.X end, our million the to debt of total first Cash repaid lien quarter 'XX Since total quarter, $XXX.X $XXX.X sheet. financing $XX.X at was compared At quarter repaid the a costs have net first the our $XX of to million end XX, instruments, quarter the in year. million of debt on reducing XXXX, March deferred totaled the expense.

facility its our XX, previously As on March expiration announced, $XX XXXX. million reached credit

new Given line evaluate strong currently we our the not a this profile, we'll renew plan of liquidity facility, in do to future. into credit continue entering and to

to unlevered cash first was XX% in million million after-tax $XX.X free $X.X cash That conversion first to cash repurchase to utilized XXX,XXX quarter million in $XX.X in for quarter. we EBITDA shares rate the after-tax stock quarter, Additionally, flow XXXX. quarter. common compared flow the during translates a In of first the of our free unlevered to the

relates to $XX.X announced have into warrants in quarter. we canceled. warrant 'XX, and XX proceeds of remaining generated This million exercised it the March in common As public the exchange, that on or cash shares been net all converted

as remaining most remaining delighted agreement the X-year the holders approximately to a a that company's negotiated million Over common fees applicable generating with warrants warrants the for the XX.X net only announced, warrants. only for $XX period, pipe I'm in warrants now XX proceeds million warrants privately exchanged say to previously of warrant are company exercise shares deducting the million. were pursuant to there certain total And exercised, of were -- company. after the of XX,XXX

As be million of program, million the were cash. available fully-diluted The opportunistically of expectation of approved using does not as before consider June Board share as XXXX, repurchase share to share will our company's any XX, warrants This expected cash. which announced, activity. $XX for converted a Directors approximate mentioned count $XXX future most executed is repurchase

Going to will to generation all benefits for we our flow the our utilize evaluate strong forward, opportunities cash of shareholders. continue

to our on Moving guidance.

our we while guidance and based second mentioned, performance our As first increasing fiscal expectations outlook year quarter for the are upon quarter. introducing favorable better-than-expected

previous million $XX we the to of in to million, EBITDA $XXX range million XXXX, Adjusted revenue million to previous $XX in million. expect range million year $XXX versus total to $XXX our versus $XXX is our the fiscal of full guidance $XXX $XXX million. guidance now the For expected of of now million,

We XX cruise on operating expect to resorts. at ships end and fiscal XXX XXXX

to to guidance introduced assumes second million, million, guidance ship range million second the count count For revenue ending an the and have adjusted in of of XX. million EBITDA $XX quarter, we total and and of range our the $XXX the expecting $XXX in $XX XXX of quarter resort

Importantly, as of about the balance we look our feel very and confident outlook XXXX. ahead growth for we positioning

to strong with expect open you are pleased Molisse [ throughout second for quarter, please the in ], and continued continue are the of and questions. open With track we results will up experiencing We we if go could the operational our call that, momentum call. year. record the ahead the

much. very you Thank

a We will [Operator question Steve question-and-answer We'll now session. Instructions]. from begin from Stifel. start Wieczynski with the

is the of I want midpoint So for your to range. guidance And start with year. quarter think beat I the third, revised the quarters this materially last of you've guidance which know, of don't kind your straight in -- the I now even X fourth

you're you're thinking just last as spend that if you terms the going or there really wondering consumer guess to base? know go. I in about don't levels what quo conservatism XXXX, assuming because the So, X stay some quarters just you're the embedding in is you're how you're And we of just customer about status or where embedding think in about way your of thinking

to You're how last spend understand for levels just the X the quarters about thinking trying year. of you're

off. start I'll Steve,

remain going first has So, into point right levels, the favorable, over lines strong. ball as that I of certainty the think nobody as prior aware quarter. happen talked direction. We mentioned, board we of to trends cruise year. Bookings remainder continued all keenly saw to about spend the continued booking in of very quarter you're around strong the what's see do the And and on the which to have very should the a are started Obviously, from that have year. we've here crystal second spend

of softening the think expect a in unlikely part performance not onboard to strong. latter I spend, However, some having generally said slight we of the the but will expect it's in for, year, remain which maybe accounted that that, we've

mean, very Okay. essentially it's bigger strong, year but Got the obviously next on question, you. then debt-free I which that flow balance could maybe cash picture be remains a your generation, so. clear sheet in And pretty or free based your

thought just So, share -- a program, kind again potential, are how is, some road, the a you type you some a share I balancing of acquisitions repurchase Or what are dividend if what initiating but sense acquisition? you or down guess looking is guys of repurchase the obviously, you versus you the potential And out would guys? announced make balancing acquisition guys there about acquisitions at? question you be would that how for versus

I'll let talk cash Let use, about the side things. acquisition then me and touch of on Leonard the quickly

as it cash the and the from So, the was historically, with of converted but the warrants, basis, for cash $XX you on relates specifically all because appropriate take to to on all are basis, came the it most a -- the they feeling accounting those does as it aligns count. that in action you near-term which, almost was buyback, were them increase of know, treasury converted a that share million

And and share so, potentially would hence, and cashless, debt doesn't it shares take change of to interest have the of converted off that those buyback, a $XX to dividend. it at count introduction be really our most pay if felt million would continuing reduce overall subsequent any around to the a and back million as $XX rates, these thinking appropriate we it where were been

So, all those of things table. on remain the

back the for quarters. we where last past the shares. debt only able to off in that quarters, paid do bought X exhibited have We have thing X Not one and

move cash And I appropriate acquisitions. we Leonard as let feel on the evaluate part are returning shareholders. we'll ways forward, answer the will what the So, to to most we continue of

I right on for a with. on going the bankers, prevented and not the which about But been of a like to do, the So, in a cetera. best any getting mindful do But a do that there are would land-based compelling diagnostic interesting can around really only continue within ideas, sense ways on started then technologies, augments but guests showing there's And the people that that mean, our of it's new et not we always lot space table is extent we're for of do can are what just transfer Medispa, found, experience of type there's if wellness board, we where lot can Steve, in, of service or protocols of more we've what where vision And what can what that us board we've us the it. likely, is, discussed in we call, our value can there's most lot be at haven't these help look doing offering the to incremental and ideas. certainly, initial mean, to to always they that to We've target would on It's consultation tools target make by want some some of learn in that we pickup would board e-commerce the ideas we're would capabilities something nothing but kind although enhance target to I our we inbounds. the I and now. in you adds them. times. that we that bodies, to the

of board. with lot some us and the sign we up certainly I make offering do because think that educational we supplementation of a could and seminars continue the seminars take increase guests with on who for board, supplementation on of would sense that

I'm vision find, into to that we'll like the easy But I that. think very sure well. but something find not very, So, fits

interest nutrition be our we if in serve guests on us capture the come able even they'll between cetera. to supplementation, A, mindfulness, that immunity, to or some continue improve cruises, of of guests things offering helping participate more et form in counseling, can they to So, don't back, because wellness, board, do

now have from question Blair. And from William we a Sharon Zackfia

up? the that business. outside big guess It's we different mindset and curious really the prebooking, also to a hear on broadly, wallets with value, as consumer for of more Does for you a you're the down that obviously you. might to do a do get mean, any Or prebooking resilience I cadence in think to very continue we're as surprise is doing broader just seeing you that well? once which positive ship a open for when the consumer I'm cruises communicating they maybe that is good and nice reticence hearing the has space just of future more you're cruise. in that on is our not if look further it about think play the throughout I'm experience that obviously kind that? been? come pike. wondering think on about looking We're I Because how

onboard Thanks, the Sharon. I with extremely the of Yes, look, spend. mean, pleased we're resilience

offering quite our the easier how The obviously, to then now. offering I the navigate the guests, at with the call, saw, on them highest right some we're of more retail was get As service menu spend would and that of the where mention on level much retail, offering that quarter focused we've to simplifications offering, focus did on made accompany services. which to to is we're for And which trying is as to do potential strong. during you

expect seeing second other not continue good, pushback or so price We're we quarter to we're on just service as but the the to seasonally on retail. move ships second moving far, on so quarter and where well. geographies, into So,

are I NCL, where still rollout for we first the it is quarter which great think the in us wasn't prebook of of new XXXX. prebook, on an incredibly opportunity the terms in there

late that introduced 'XX. we So,

the of and by the through take it And all ships. still third cadence the is the positively starting quarter, to impact will bleed so, on whilst we that numbers probably

attention that them get versus is we've IT certain are which to what cruise as our in as much helping that others, focus certainly, their continue and to they get management. capabilities, we're So, on choosing not is doing their demonstrated it, with as in we because to we offer. as to but own all that the as are people can them what a invest together the focus able prebook move we people terms big on to we'll banners continue of lines how yield to forward, And of in do more amenities front, And optimizing into of grab prebook. on prebooking for how well them only

is think continue And will number we're clearly, I to for positively optimistic top So, impacting that, grow. line that us. it

me? out phone my second. investments I tech wanted cut to some tell this doing Can and What for beyond? and you're you're incremental Sorry, up I that a hear AI in follow you me still in think on 'XX year. because making there,

demographic. company, we're on then board, early best-in-class can least So, we that investing the improve to capabilities. geography how as ships, to terms efficiencies. We're that And before that to improve going across we're across the the Sharon, of on all in lowest back-office and in all side, or flip use side with on hanging going automation ships the marketing the with the navigating our AI first, other in we other mentioned tackle the we of go where what's look, in AI of of fruit replicating on stages offerings, we're calls, at can

play it. think now. planning I capabilities in those all right are is We're So, -- architecture the on being of

soon We have next steps we're follow. on at a kickoff and where meeting to very

more quicker collection triage able performance weekly becoming Monday. and the everyday on a we've made on just we've improve So, able as to in to revenue our invest mentioned before to capabilities, on that basis. much flash tool in and it's it that is helping data as and continue of prior We're which an And more we'll together enhancements being forward. we versus data calls, us platform than with a move

figuring get the manages, are is to on quicker some how focus So, immersed points data, the and out the sell-through how them if more there need where attachment. improving and week help, we are, team in we weak where training

Max question from next our And TD comes Cowen. Rakhlenko from

Great.

latest more own modeling thinking you first, And the your industry over of when an what's we ships growth that this some what's few the data with then few that points well the the next So guys coming medium-term number be level. your the wins, combine across over the including for you around revenue you're should next us, the discussed own ships for at that years with as profile you company your morning one as discussing, new around latest given years? initiatives thinking

have into Max, And we coming service, XXXX. builds is to there those. total X in then in new high of in continue vessels are XXXX, that

when service. depending of lady into Virgin coming goes the One numbers the announces brilliant up on likely

of growth continue is in a numbers, single-digit to grow ship that and revenues those our So, we have reiterated remain the to on high ship can good. thesis we we the -- They rate, believe new terms continue introduction the end. and look that rate committed in support medium-term top

Got it.

then Okay. And power EBITDA then and the to the full does expand the XX.X% of nice the opportunities job the for which now year team guidance. how at business Curious, the on raising past view year. margin high-end, is now

line items, from for opportunity if levels. order which further greatest margin just could expansion have rank the current the you curious So

to likely model, that expansion, the not consumer focus again, what makes But can on been activity, we misinterpreted, dollar if us, about So, think generating about, is And focus for remains lies. anything as we our want on We've board margin I absolute at talk is imply revenue which comes that it's it right? the where disputing of sort a to would always talked with which to I to marginally we highly date has required there's always need cost variable generation. that entertain lot. or spending, you how certainly perhaps relates even as marginal certainly back extent length promotional But sense forward, fairness in to do move that that. a we provided to it's -- don't contribution

EBITDA itself margin then into but is absolute just could cash to of necessarily us focus dollars, the So, business. at overarching absolute want an drive not because that as we and was, simply bring if we theme, for the expense it of the in

that do contribution variable again, and difficult, programs. will of XX% improvement biggest we the is the And through is as know a nature. board basis. right? the way demand marginal long in that on always in it's through on board happens We it's on model as marketing so, But the The that

benefit of percentage the up to so, a fixed more get go some step challenging. that a more on is There revenue up up, that as versus basis. obviously those costs up company some of get And that in driving have the is revenue that leveraging lockstep the we we go scale, benefit which but continues you and corporate at don't goes what level, grows

the where continue revenue. on that remain. driving to focus will hope is the will our to total for we while focus us, margin So, going dollars improve, the is absolute be And the

and in That's helpful. the second Great. luck super good Best quarter. regards

question And Loop Capital. Laura our from next comes Champine from

I in repurchases hear you outlook XXX timing incorporated because cash on the share do give balance that potential for in are But already diluted color on repurchases? of shares share your QX. have any sheet not you the million that the can

Laura, will we want opportunistic, when weakness aggressive in the this be We when to be is buybacks. terms most of in the stock

think it we will basis. So, signal no, timing would opportunistic the be I focus to as that specific unfortunately, utilize when an don't on on occur would

a going your bit on that's services. faster from don't Understood. anything much want too read line? innovation promotion that grow but small helping to into products segment drive than did a helpful. I product That's thing, Is little a or there perspective a

of our of generally to So, result I mentioned space choice the a mean, tend across before, of simplification skews and towards services the product, as services Laura, sell-through I in higher body. those and menu

some services, retail body heightened cryotherapy, spatial And cetera, the XXXX. through. over improved very a some focus starting LED, pricing attachments those getting services, et results increased to the come with new we there is think Even we're catch-up saw of with see there. in I on

of guest doing prioritize very luxurious that at the focus what we're to time providing as and service ensuring a same And so, overall. big with continue sell-through we good as a we have are the and

from Gregory, question Another Miller Securities. comes Gregory Truist from please proceed.

to the of banner the thought I of of are presume Gulf may largely announcement on spend terms habits behavior about spend have with the ask in kind and they wellness the your guests wellness that the I from world, ship. the Aroya that region new that expectations of from any

Yes, Greg.

it's a say. cruise is a line. territory. adapt It's on because But that are mean, that this mean, extensively we'll and part new in. in world the in I to I done to the a new everything to I that's cetera. logistical operators, discussed model. region to we'll before see. operational plays geography, still land. like it's do think Gulf Lilly of new work as operate demographic new has have positioned we and early of et we think the you new how haven't to it's it's not see to culture, for on out. how I mean, challenges we focusing the start It's with us I a tell this But

be I So, line successful. be And think will cruise hopefully we're going to fine. think the I

new the increase vessels, you facility the you to these Norwegian, time in some hear. be larger the And of out if know, you in of follow-up, interesting some implications I'm put at as to for will shifts of on potential a of suite, there's then in stage, And do staff, terms sense any terms be as your would ship thermal capacity. curious that time, over you could orders. have wellness this an all share that passenger new the in of size anything potentially early changes

like the Medispa vessels everybody for more space, large in they because thing always Whenever first particularly amenity there do Obviously, same are in announced else those line or we're premium have, on ask at to offering wants some service board. a to more the that's area, ones the are staff.

They're try can Medispa ships new as as we Medispa extent continue and hard it So accounts. we'll mean, positive those footprint bigger on NCL's part But imagine early very I towards spas And can up need the yes, having offering with in switch increase would that, should edge. we we And I of cutting are we the with to beautiful. said and push wellness, to talk offering. layouts what needed. them passenger us discussions be to and that where on getting with them and our negotiations the

seen these ships some of Thanks in agree I person. very much. having

question Georgieva Research. from next Assia our from And comes Infinity

and rest it's the Again, for a the Leonard a over. March congratulations on of XX, quarter and great Stephen, great year. outlook thankfully

at are going at -- an obviously, we quite growing to we all seeing operational of levels occupancies. still well, XXXX be banners. So. are point view, things not well. very We're going just looking And from both are across

Norwegian, quite as So that, all to you're and you on on me, growing, seems not yet mentioned, an opportunity. ships. Pre-bookings especially,

would opportunity season. provide great So QX wave another a with

I point, third the So, to trying make. guess I'm

you slight be be down, been ticket part? would coming in operational you pricing down. X last How quality yet passengers QX, might sheet, the passenger of in the And secondly, higher-quality banners seems of better structure, of on dividend, for balance coming equity the have therefore, offset to potential terms buybacks may than one We me the have this in one the fact that QX years. shape is into and balance late you're and

And Or that the million be kind to for opportunistic is glad given of this buyback what doing? Board today stock $XX again how of not an in the really $XX are might well time buyback. up the Is terms the date reacted. the opportunistic So, authorized million your limited? markets discretion has the

second to Stephen continue answer can going all for improve factors Assia. part first But part. the across I'm banners. you, answer load certainly, to the the

not may XXXX. we that load first to of but improvement. full quarter are quite be XXXX, overall, started versus improved much according obviously, Some the in And factors

about little spa. the quarter, worried that the to buying passenger I'm So, same too third is a that. And some the pricing in into ticket passenger the not necessarily of coming weaker extent ticket quality cheaper not who's looks that the

all. the question need at it we XX%, anything, which passengers, long XX.X% we next the really of not around we modify need target, concerned. as us turn Stephen. to anything if should I'm continue not which do extent best the about that So, we to I'm to I'll not impact And over to sure to materially that as penetrate

Leonard. Thanks, Yes.

is to Assia, no question that terms can the short we no, is authorization. there answer your time limit of when in utilize

will and buy weakness. opportunistic will on we it be again, So

so. Again, the it be to doesn't seem date do today, to

not today. Probably Exactly.

today. glad of to very opportunity lack I'm see But the

you I'm So and such meaning would so? in answer generally not question, sure term, can RCL One job. years renewal, be within standard that this that or great last a The X public forum.

It's agreement. a Yes. multiyear

Yes, it years. X continues beyond

in we're good with shape really that. So,

extremely on and pleased runway we're awarded Royal, both that have and to long contract. So, been honored which Celebrity

again, forward next the to great looking job And and Great. a call. Perfect.

to I remarks. Leonard And Fluxman turn this for to concludes conference over our like any would session. closing question-and-answer the back

An you, all Thank land team All and for on thanks, to, congratulate and today. and with when want speaking right. again, I of across much, all you quarter forward to you team us fantastically. of our and report of quarter, our we joining results. to so all everybody, my training, second the entire we continue earnings execute Thank academies. look leadership ships incredible

You Thank you. may now disconnect.