Cost of service was $144 million, compared to $126.3 million in the first quarter of 2023. The increase was primarily attributable to costs associated with increased service revenues of $172.2 million in the quarter from our operating health and wellness centers at sea and on land, compared with revenues of $150.1 million in the first quarter of 2023. Cost of products was $33.5 million compared to $28.3 million in the first quarter of prior year. The increase being primarily attributable to costs associated with increased product revenue of $39 million in the quarter from our operating health and wellness centers at sea and on land compared to product revenues of $32.3 million in the third quarter of 2023. Net income was $21.2 million or net income per diluted share of $0.21, as compared to a net loss of $15.9 million or net loss per diluted share of $0.17 in the first quarter of prior year.
The $37.1 million increase in net income was attributable to a $29.6 million positive change in the fair value of our warrant liabilities, a $1.7 million decrease in interest expense, and a $5.8 million positive change in income from operations. The change in the fair value of our warrant liabilities, as you know, during the quarter ended March 31st, 2024, was a gain of $7.7 million, compared to a loss of $21.9 million during the quarter ended March 31, 2023. The net gain in the change in fair value of warrant liabilities was a result of the remeasurement to fair value of the warrants exercised during the first quarter of 2024, and changes in market prices of our common stock and other observable inputs deriving the value of these financial instruments.
Adjusted net income was $19.3 million or adjusted net income per diluted share of $0.19, as compared to adjusted net income of $12.3 million or adjusted net income per diluted share of $0.13 in the first quarter of last year. Adjusted EBITDA was $25.3 million compared to adjusted EBITDA of $19.3 million in the prior year, an increase of 31%. Turning to the balance sheet. Cash at March 31, 2024 totaled $66.6 million. In the first quarter, we repaid $20 million on our first lien term loan. Since the second quarter of 2022, we have repaid a total of $94.1 million in debt instruments, reducing our ongoing interest expense. At quarter end, total debt net of deferred financing costs was $138.6 million compared to $202.6 million at the end of the first quarter last year.
As previously announced, our $20 million credit facility reached its expiration on March 19, 2024. Given our strong liquidity profile, we do not currently plan to renew this facility, and we’ll continue to evaluate entering into a new line of credit in the future. Additionally, we utilized $7.7 million in cash to repurchase 606,000 shares of our common stock during the first quarter. In the first quarter, unlevered after-tax free cash flow was $24.1 million compared to $17.9 million in the first quarter of 2023. That translates to a 95% conversion rate for unlevered after-tax free cash flow to EBITDA in the quarter. As it relates to the warrant exchange, on March 26 of 2024, we announced that all remaining public warrants have been converted into common shares and exercised or canceled.
This generated $51.7 million in net cash proceeds in the quarter. Over the five-year exercise period, a total of 24 million warrants were exercised, generating net proceeds to the company after deducting applicable fees of approximately $54 million. And as previously announced, 19.3 million warrants were exchanged for the company’s common shares pursuant to a privately negotiated warrant agreement with certain holders of the warrants. I’m delighted to say that there are now only 21,600 pipe warrants remaining in most — the only warrants remaining for the company. As announced, our Board of Directors approved a $50 million share repurchase program, which will be executed opportunistically using available cash. The company’s fully-diluted share count is expected to approximate $105 million as of June 30, 2024, as most of the warrants before mentioned were converted for cash.
This expectation does not consider any future share repurchase activity. Going forward, we will continue to evaluate all opportunities to utilize our strong cash flow generation for the benefits of our shareholders. Moving on to our guidance. As mentioned, we are increasing our fiscal year guidance based upon our better-than-expected first quarter performance and favorable outlook while introducing expectations for the second quarter. For the full fiscal year 2024, we now expect total revenue in the range of $860 million to $880 million, versus our previous guidance of $850 million to $870 million. Adjusted EBITDA is now expected in the range of $95 million to $105 million, versus our previous guidance of $90 million to $100 million. We expect to end fiscal 2024 operating on 198 cruise ships and at 51 resorts.
For the second quarter, we have introduced guidance expecting total revenue in the range of $216 million to $221 million, and adjusted EBITDA in the range of $24 million to $26 million, and our second quarter guidance assumes an ending ship count of 195 and the resort count of 51. Importantly, we feel very confident about our positioning and growth outlook as we look ahead for the balance of 2024. We are pleased with the continued momentum we are experiencing in the second quarter, and expect to continue our track record of strong operational results throughout the year. With that, we will open up the call for questions. Molise, if you could please go ahead and open the call.
Operator: Thank you very much. We will now begin the question-and-answer session. [Operator Instructions] We’ll start with a question from Steve Wieczynski from Stifel. Steve, please go ahead.
Steve Wieczynski: Hey, guys. Good morning. So I want to start with the revised guidance for the last three quarters of the year. And I think this is now your — I don’t even know, third, fourth straight quarter in which you’ve materially beat kind of the midpoint of your guidance range. So, I guess as we think about in the last three quarters of 2024, just wondering how you’re thinking about or what you’re embedding in terms of the way you’re thinking about your customer base. And if you’re assuming that spend levels stay status quo or you’re embedding some conservatism in there just because you really just don’t know where the consumer is going to go. I’m just trying to understand how you’re thinking about spend levels for the last three quarters of the year. Thanks.
