Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH) (together
with NCL Corporation Ltd. (“NCLC”), “Norwegian Cruise Line
Holdings”, “Norwegian”, “NCLH” or the “Company”) today reported
financial results for the second quarter ended June 30, 2024 and
provided guidance for the third quarter and full year 2024.
Second Quarter 2024 Highlights
- Generated record second quarter
total revenue of $2.4 billion, an 8% increase compared to the same
period in 2023 on 4% capacity growth, with GAAP net income of
$163.4 million, or EPS of $0.35. Performance was driven by strong
revenue growth and continued focus on cost reductions and
efficiencies.
- Adjusted EBITDA grew 14% to $587.7
million compared to $514.8 million for the same period of 2023 and
above guidance of $555 million. Adjusted EPS grew 33% to $0.40,
which compares to $0.30 in the second quarter of 2023, exceeding
guidance of $0.32.1
- The Company’s sustained focus on
margin enhancement drove another quarter of improvement in
operating costs. Gross Cruise Costs per Capacity Day was
approximately $315 for the quarter. Adjusted Net Cruise Costs
excluding Fuel per Capacity Day was approximately $163 on an as
reported and Constant Currency basis, better than guidance, and
flat year-over-year when excluding the expected ~$9 impact of the
incremental Dry-docks and the related reduction in Capacity
Days.
- Occupancy was 105.9% for the
quarter, slightly above guidance, and total revenue per Passenger
Cruise Day increased approximately 2%, compared to second quarter
2023.
- Gross margin per Capacity Day was
up 7% versus 2023 on an as reported and Constant Currency basis.
Net Yield growth beat guidance by 200 basis points, increasing over
prior year by approximately 6.3% on an as reported and Constant
Currency basis due to strong close-in demand and onboard revenue
performance.
- Total debt was $13.4 billion. Net
Leverage was 5.9x for the 12-months ended June 30, 2024, achieving
year-end goal of reducing Net Leverage by ~1.5x from December 31,
2023 6-months early.
- Announced Charting the Course 2026
targets at May 2024 Investor Day, detailing a bold new vision to
“Vacation Better. Experience More.” with robust financial
targets.
- Released 2023 “Sail and Sustain”
report showcasing progress on sustainability initiatives.
________________________1 See “Terminology”,
“Non-GAAP Financial Measures” and “Outlook” below for additional
information about Adjusted EPS, Adjusted EBITDA and other non-GAAP
financial measures.
2024 Outlook
- 2024 full year Net Yield guidance
on a Constant Currency basis increased 100 basis points from the
prior guidance to approximately 8.2% from 7.2%.
- 2024 full year Adjusted EBITDA
guidance increased $50 million from the prior guidance to
approximately $2.35 billion from $2.30 billion.
- 2024 Adjusted Net Cruise Costs
excluding Fuel per Capacity Day guidance remained unchanged at flat
to prior year excluding the impact of Dry-docks.
- Full year Adjusted Net Income
guidance increased $60 million from prior guidance to approximately
$790 million from $730 million, and Adjusted EPS guidance increased
over 8%, or $0.11 to $1.53 from $1.42.
- On track to achieve double-digit
Adjusted ROIC by year-end.
“2024 continues to be an exceptional year in
terms of our financial performance, as evidenced by our strong
second quarter results which exceeded guidance across the board. As
we raise our full-year guidance a third time, we expect our
Adjusted EPS to grow approximately 120% compared to 2023, driven
mainly by our ability to capitalize on the robust market demand and
ensuring our guests are vacationing better and experiencing more
across our brands,” remarked Harry Sommer, president and chief
executive officer of Norwegian Cruise Line Holdings Ltd.
“The momentum we are garnering from strong yield
growth, disciplined cost management and the initiatives that
comprise our Charting the Course strategy further bolsters our
confidence in achieving our previously announced 2026 financial and
sustainability targets,” continued Sommer.
Business, Operations and Booking Environment
Update
The Company continues to experience strong
consumer demand as the majority of new bookings are pivoting to
2025 sailings. As a result, the Company remains at the upper range
of its optimal booked position on a 12-month forward basis.
Occupancy was 105.9% for the second quarter of 2024, slightly above
guidance. Full year 2024 Occupancy is expected to average 105.2%,
slightly above prior guidance.
In addition, top line growth in the second
quarter was also strong. Gross margin per Capacity Day was
approximately $124 in the quarter, up 7% versus 2023 on an as
reported and Constant Currency basis. Net Yield growth was up
approximately 6.3% versus 2023 on an as reported and Constant
Currency basis, above guidance by 200 basis points due to strong
close-in demand and onboard revenue performance. The Company’s
advance ticket sales balance, including the long-term portion,
ended the second quarter of 2024 at an all-time record high of $3.9
billion, approximately 11% higher than the same period of 2023.
The Company demonstrated continued progress on
its ongoing margin enhancement initiatives to maximize revenue
opportunities and right size its cost base. Gross Cruise Costs per
Capacity Day was approximately $315 in the second quarter, which
was flat versus last year. Adjusted Net Cruise Costs excluding Fuel
per Capacity Day in the second quarter of 2024 was approximately
$163 on an as reported and Constant Currency basis and was
essentially flat year-over-year excluding the expected ~$9 impact
from increased Dry-dock days and related costs and better than
guidance of $165, as cost savings measures fully offset an increase
in variable compensation due to strong performance of the
business.
For the full year 2024, the Company increased
its Net Yield guidance by 100 basis points from prior guidance to
growth of approximately 8.2% from approximately 7.2% on a Constant
Currency basis compared to 2023. The increase in guidance is driven
by strong demand across all three brands and itineraries.
Full year Adjusted Net Cruise Cost Excluding
Fuel per Capacity Day guidance remained unchanged and is expected
to be approximately $159, increasing approximately 3.5% in Constant
Currency, which includes an approximate 300 basis point impact from
Dry-dock days and related costs in the year. Excluding this impact,
Adjusted Net Cruise Cost Excluding Fuel per Capacity Day would be
essentially flat year-over-year.
Adjusted Operational EBITDA Margin for the full
year 2024 is expected to increase to 34.5% and full year 2024
Adjusted EBITDA guidance increased by $50 million to $2.35 billion.
Adjusted EPS guidance was increased by $0.11, or 8%, to
approximately $1.53 from approximately $1.42.
Liquidity and Financial Position
The Company is committed to prioritizing efforts
to optimize its balance sheet and reduce leverage. As of June 30,
2024, the Company had total debt of $13.4 billion and Net Debt of
$12.8 billion. Net Leverage improved by approximately 1.5 turns
compared to December 31, 2023, ending the second quarter of 2024 at
5.9x and achieving our year-end goal 6 months early. The Company
announced at its Investor Day that it plans to reduce its Net
Leverage to the mid 4’s by 2026.
During the quarter, as expected, substantially
all the holders of the 6% 2024 Exchangeable Notes exchanged their
2024 Exchangeable Notes for shares with any remaining unexchanged
notes being repaid in cash at maturity.
At quarter-end, liquidity was $2.7 billion. This
consists of approximately $594.1 million of cash and cash
equivalents, $1.2 billion of availability under our undrawn
Revolving Loan Facility, a $650 million undrawn backstop
commitment, and other commitments.
“We enter the second half of 2024 with strong
momentum, exceeding our guidance metrics in each quarter of 2024 on
the back of strong execution. We continue to see robust demand
heading into the back half of the year and are committed to
improving efficiencies, reducing costs, and restoring our margins
in a strategic and disciplined manner. Given our strong progress to
date and current demand expectations, we are raising our 2024
full-year guidance for a third time this year for key metrics
resulting in expected Adjusted EPS growth of 120% versus 2023,
while keeping our cost guidance for the year unchanged at flat to
prior year,” said Mark A. Kempa, executive vice president and chief
financial officer of Norwegian Cruise Line Holdings Ltd.
Kempa continued, “Additionally, we made
significant advances in reducing Net Leverage and de-risking our
balance sheet during the first half of 2024. We have already
accomplished our year-end goal of reducing Net Leverage by a full
turn and a half versus year-end 2023, ending the quarter at 5.9x.
We remain confident that our strong liquidity position, ongoing
cash generation, and favorable growth prospects will enable us to
continue to de-risk our balance sheet further bolstering our path
to achieving the 2026 Charting the Course financial targets laid
out at our recent Investor Day.”
Second Quarter 2024 Results
GAAP net income was $163.4 million or EPS of
$0.35 compared to $86.1 million or EPS of $0.20 in the
prior year. The Company reported Adjusted Net Income of $203.7
million or Adjusted EPS of $0.40 in the second quarter of 2024.
This compares to Adjusted Net Income and Adjusted EPS of $137.0
million and $0.30, respectively, in the second quarter of 2023.
Adjusted EBITDA in the second quarter was approximately $587.7
million, better than guidance of $555 million, and increased 14%
compared to 2023, driven primarily by solid revenue performance and
Adjusted Net Cruise Cost Excluding Fuel that was essentially flat
year-over-year excluding the impact of Dry-docks.
Gross Cruise Costs per Capacity Day was
approximately $315 in the quarter. Adjusted Net Cruise Costs
excluding Fuel per Capacity Day was approximately $163 on an as
reported and Constant Currency basis, which includes approximately
$9 related to Dry-docks, and would have been essentially flat
year-over-year without these Dry-dock impacts, reflecting the
benefits from the Company’s ongoing margin enhancement
initiative.
The Company reported fuel expense of $175
million in the quarter. Fuel price per metric ton, net of hedges,
increased slightly to $719 from $715 in 2023. Fuel consumption of
243,000 metric tons was slightly better than projections.
Interest expense, net was $178.5 million in 2024
compared to $177.7 million in 2023.
Other income (expense), net was an income of
$1.9 million in 2024 compared to an expense of ($8.0) million in
2023. The income and expense primarily relate to net gains and
losses on foreign currency.
Outlook and Guidance
In addition to announcing the results for the
second quarter 2024, the Company also provided guidance for the
third quarter and full year 2024, along with accompanying
sensitivities. The Company does not provide certain estimated
future results on a GAAP basis because the Company is unable to
predict, with reasonable certainty, the future movement of foreign
exchange rates or the future impact of certain gains and charges.
These items are uncertain and will depend on several factors,
including industry conditions, and could be material to the
Company’s results computed in accordance with GAAP. The Company has
not provided reconciliations between the Company’s 2024 guidance
and the most directly comparable GAAP measures because it would be
too difficult to prepare a reliable U.S. GAAP quantitative
reconciliation without unreasonable effort.
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2024 Guidance |
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Third Quarter 2024 |
Full Year 2024 |
|
|
As Reported |
ConstantCurrency |
As Reported |
ConstantCurrency |
|
Net Yield |
~6.1% ~$328 |
~6.4% ~$329 |
~8.2% ~$290 |
~8.2% ~$290 |
|
Adjusted Net Cruise CostExcluding Fuel per Capacity Day1 |
~3.3%5~$156 |
~3.4%5~$156 |
~3.5% ~$159 |
~3.5% ~$159 |
|
Capacity Days |
~6.04 million |
~23.47 million |
|
Occupancy |
~108.2% |
~105.2% |
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Adjusted EBITDA |
~$870 million |
~$2.35 billion |
|
Adjusted Net Income |
~$475 million |
~$790 million |
|
Adjusted EPS2 |
~$0.92 |
~$1.53 |
|
Diluted Weighted-Average Shares Outstanding3 |
~515 million |
~515 million |
|
Depreciation and Amortization |
~$225 million |
~$895 million |
|
Adjusted Interest Expense, net4 |
~$180 million |
~$735 million |
|
Effect of a 1% change in Net Yield onAdjusted EBITDA / Adjusted
EPS |
~$20 million ~$0.04 |
~$68 million ~$0.13 |
|
Effect of a $1 change in Adjusted NetCruise Cost Excluding Fuel per
CapacityDay on Adjusted EBITDA / Adjusted EPS |
~$6 million ~$0.01 |
~$23 million ~$0.05 |
______________________(1) Q3 2024 does not
include a significant impact related to Dry-dock days and related
costs. Full Year 2024 includes an approximate 300 basis point, or
approximately $5, impact of increased Dry-dock days and related
costs. Excluding this impact, the Adjusted Net Cruise Cost
Excluding Fuel per Capacity Day would be essentially flat
year-over-year, amounting to $155 in 2024 as reported and in
Constant Currency. (2) Based on guidance and using diluted
weighted-average shares outstanding of approximately 515 million
for the third quarter of 2024 and 515 million for full year 2024.
Adjusted EPS for the third quarter 2024 assumes all three of the
Company’s outstanding exchangeable notes are dilutive and therefore
are included in diluted weighted-average shares outstanding and
full year 2024 assumes that all four of the Company’s exchangeable
notes are fully dilutive and therefore excludes approximately $15
million and $63 million of interest expense, respectively,
associated with the Company’s exchangeable notes.(3) Q3 2024
assumes all three of the Company’s exchangeable notes are dilutive
and therefore are included in diluted weighted-average shares
outstanding and full year 2024 assumes all four of the Company’s
exchangeable notes are dilutive and therefore are included in
diluted weighted-average shares outstanding. (4) Based on the
Company’s June 30, 2024 outstanding variable rate debt balance, a
one percentage point increase in annual SOFR interest rates
would increase the Company’s annual interest expense by
approximately $6 million excluding the effects of capitalization of
interest.(5) Q3 2023 Adjusted Net Cruise Costs excluding Fuel was
$151 and included $2 of non-recurring benefits. Excluding this
impact, the year-over-year growth would be approximately 1.9% on an
as reported basis and 2.0% on a constant currency basis.
The following reflects the foreign currency
exchange rates the Company used in its third quarter and full year
2024 guidance.
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Current Guidance |
| Euro |
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$ |
1.07 |
| British pound |
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$ |
1.26 |
| Australian Dollar |
|
$ |
0.67 |
| Canadian Dollar |
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$ |
0.73 |
Fuel
The following reflects the Company’s
expectations regarding fuel consumption and pricing, along with
accompanying sensitivities.
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Third Quarter 2024 |
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Full Year 2024 |
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| Fuel consumption in metric
tons1 |
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235,000 |
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995,000 |
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| Fuel price per metric ton, net
of hedges2 |
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$ |
725 |
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$ |
714 |
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| Effect on Adjusted EPS of a
10% change in fuel prices, net of hedges |
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$ |
0.01 |
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$ |
0.03 |
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_____________________(1) Fuel consumption for
the full year 2024 is expected to be split approximately
evenly between heavy fuel oil and marine gas oil.(2) Fuel prices
are based on forward curves as of 7/10/2024.
As of June 30, 2024, the Company had hedged
approximately 53% and 39% of its total projected metric tons of
fuel consumption for the remainder of 2024 and 2025, respectively.
The following table provides amounts hedged and price per metric
ton of heavy fuel oil (“HFO”) and marine gas oil (“MGO”).
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2024 |
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2025 |
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| % of HFO Consumption
Hedged1 |
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36 |
% |
|
40 |
% |
| Blended HFO Hedge Price /
Metric Ton |
|
$ |
395 |
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$ |
413 |
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| % of MGO Consumption
Hedged |
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69 |
% |
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38 |
% |
| Blended MGO Hedge Price /
Metric Ton |
|
$ |
746 |
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$ |
737 |
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| Total % of Consumption
Hedged |
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53 |
% |
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39 |
% |
________________(1) Hedged derivatives include
accounting hedges as well as economic hedges.
Capital Expenditures
Non-newbuild capital expenditures for the second
quarter of 2024 were $167 million. Anticipated non-newbuild capital
expenditures for full year 2024 are expected to be
approximately $575 million including approximately $141 million in
the third quarter.
Newbuild-related capital expenditures, net of
export credit financing, are expected to be approximately $0.3
billion, $0.6 billion and $0.8 billion for the full years
ending December 31, 2024, 2025 and 2026, respectively. Net
newbuild-related capital expenditures for the second quarter of
2024 were approximately $60 million and are expected to be
approximately $119 million for the third quarter of 2024.
Company Updates and Other Business
Highlights:
Fleet and Brand Updates
- Norwegian Cruise Line recently
announced a new homeport in Philadelphia. Voyages departing from
the port will visit Bermuda, as well as Canada and New England
beginning April 16, 2026. Learn more here.
- Oceania Cruises marked an important
milestone with the float out of their new 1,200-guest ship named
Allura. The new ship is set to officially debut in Italy on July
18, 2025 and is Oceania’s eighth vessel. Learn more here.
- Regent Seven Seas Cruises® and
Global Hotel Alliance (“GHA”) announced the next phase in their
landmark partnership, introducing the new Concierge Collection of
pre-cruise programs. The new collection includes a range of
multi-day land stays for travelers to enjoy at one of GHA’s luxury
properties located across six different European cities. Learn
more here.
- Oceania Cruises announced the
return of its 1,250-guest ship, Marina, after undergoing an
extensive refurbishment including all-new Penthouse suites and
three new culinary venues. Learn more here.
- Regent Seven Seas Cruises® unveiled
its new generation of luxury cruise ships, the new Seven Seas
Prestige Class. The first ship in the class, Seven Seas Prestige,
will be delivered in 2026 and marks Regent’s first new class of
ships in 10 years. Learn more here.
Conference Call
The Company has scheduled a conference call for
Wednesday, July 31, 2024 at 10:00 a.m. Eastern Time to discuss
second quarter results and provide a business update. A link to the
live webcast along with a slide presentation can be found on the
Company’s Investor Relations website at
https://www.nclhltd.com/investors. A replay of the conference call
will also be available on the website for 30 days after the
call.
About Norwegian Cruise Line
Holdings Ltd.
Norwegian Cruise Line Holdings Ltd. (NYSE:
NCLH) is a leading global cruise company which operates Norwegian
Cruise Line, Oceania Cruises and Regent Seven Seas Cruises. With a
combined fleet of 32 ships and approximately 66,500 berths, NCLH
offers itineraries to approximately 700 destinations worldwide.
NCLH expects to add 13 additional ships across its three brands
through 2036, which will add approximately 41,000 berths to its
fleet. To learn more, visit www.nclhltd.com.
Terminology
Adjusted EBITDA. EBITDA adjusted for other
income (expense), net and other supplemental adjustments.
Adjusted EPS. Adjusted Net Income (Loss) divided
by the number of diluted weighted-average shares outstanding.
Adjusted Gross Margin. Gross margin adjusted for
payroll and related, fuel, food, other and ship depreciation. Gross
margin is calculated pursuant to GAAP as total revenue less total
cruise operating expense and ship depreciation.
Adjusted Net Cruise Cost Excluding Fuel. Net
Cruise Cost less fuel expense adjusted for supplemental
adjustments.
Adjusted Net Income (Loss). Net income
(loss), adjusted for the effect of dilutive securities and other
supplemental adjustments.
Adjusted Operational EBITDA
Margin. Adjusted EBITDA divided by Adjusted Gross Margin.
Adjusted ROIC. An amount expressed as a
percentage equal to (i) Adjusted EBITDA less depreciation and
amortization plus other supplemental adjustments, divided by (ii)
the sum of total long-term debt and shareholders’ equity as of the
end of a respective quarter, averaged for the most recent five
fiscal quarters ending with the last date of the applicable fiscal
year.
Berths. Double occupancy capacity per cabin
(single occupancy per studio cabin) even though many cabins can
accommodate three or more passengers.
Capacity Days. Berths available for sale
multiplied by the number of cruise days for the period for
ships in service.
Constant Currency. A calculation whereby foreign
currency-denominated revenues and expenses in a period are
converted at the U.S. dollar exchange rate of a comparable period
in order to eliminate the effects of foreign exchange
fluctuations.
Dry-dock. A process whereby a ship is positioned
in a large basin where all of the fresh/sea water is pumped out in
order to carry out cleaning and repairs of those parts of a ship
which are below the water line.
EBITDA. Earnings before interest, taxes, and
depreciation and amortization.
EPS. Diluted earnings (loss) per share.
2024 Exchangeable Notes. On May 8, 2020,
pursuant to an indenture among NCLC, as issuer, NCLH, as guarantor,
and U.S. Bank National Association, as trustee, NCLC issued $862.5
million aggregate principal amount of exchangeable senior notes due
2024.
GAAP. Generally accepted accounting principles
in the U.S.
Gross Cruise Cost. The sum of total cruise
operating expense and marketing, general and administrative
expense.
Net Cruise Cost. Gross Cruise Cost less
commissions, transportation and other expense and onboard and other
expense.
Net Cruise Cost Excluding Fuel. Net Cruise Cost
less fuel expense.
Net Debt. Long-term debt, including current portion, less cash
and cash equivalents.
Net Leverage. Net Debt divided by Adjusted
EBITDA for the trailing twelve-months.
Net Per Diem. Adjusted Gross Margin divided by
Passenger Cruise Days.
Net Yield. Adjusted Gross Margin per Capacity
Day.
Occupancy, Occupancy Percentage or Load
Factor. The ratio of Passenger Cruise Days to Capacity Days.
A percentage in excess of 100% indicates that three or more
passengers occupied some cabins.
Passenger Cruise Days. The number of passengers
carried for the period, multiplied by the number of days in
their respective cruises.
Revolving Loan Facility. $1.2 billion senior
secured revolving credit facility.
Non-GAAP Financial Measures
We use certain non-GAAP financial measures, such
as Adjusted Gross Margin, Adjusted Operational EBITDA Margin, Net
Yield, Net Cruise Cost, Adjusted Net Cruise Cost Excluding Fuel,
Adjusted EBITDA, Net Leverage, Net Debt, Adjusted Net Income
(Loss), Adjusted EPS, Adjusted ROIC and Net Per Diem, to enable us
to analyze our performance. See “Terminology” for the definitions
of these and other non-GAAP financial measures. Our management
believes the presentation of Adjusted ROIC provides a useful
performance metric to both management and investors for evaluating
our effective use of capital and has used it as a performance
measure for our incentive compensation. We utilize Adjusted
Gross Margin, Net Yield, and Net Per Diem to manage our business on
a day-to-day basis because they reflect revenue earned net of
certain direct variable costs. We utilize Adjusted Operational
EBITDA Margin to assess operating performance. We also utilize Net
Cruise Cost and Adjusted Net Cruise Cost Excluding Fuel to manage
our business on a day-to-day basis. In measuring our ability to
control costs in a manner that positively impacts net income
(loss), we believe changes in Adjusted Gross Margin, Adjusted
Operational EBITDA Margin, Net Yield, Net Cruise Cost and Adjusted
Net Cruise Cost Excluding Fuel to be the most relevant indicators
of our performance.
As our business includes the sourcing of
passengers and deployment of vessels outside of the U.S., a portion
of our revenue and expenses are denominated in foreign currencies,
particularly British pound, Canadian dollar, Euro and Australian
dollar which are subject to fluctuations in currency exchange rates
versus our reporting currency, the U.S. dollar. In order to monitor
results excluding these fluctuations, we calculate certain non-GAAP
measures on a Constant Currency basis, whereby current period
revenue and expenses denominated in foreign currencies are
converted to U.S. dollars using currency exchange rates of the
comparable period. We believe that presenting these non-GAAP
measures on both a reported and Constant Currency basis is useful
in providing a more comprehensive view of trends in our
business.
We believe that Adjusted EBITDA is appropriate
as a supplemental financial measure as it is used by management to
assess operating performance. We also believe that Adjusted EBITDA
is a useful measure in determining our performance as it reflects
certain operating drivers of our business, such as sales growth,
operating costs, marketing, general and administrative expense and
other operating income and expense. In addition, management uses
Adjusted EBITDA as a performance measure for our incentive
compensation. Adjusted EBITDA is not a defined term under GAAP nor
is it intended to be a measure of liquidity or cash flows from
operations or a measure comparable to net income (loss), as it does
not take into account certain requirements such as capital
expenditures and related depreciation, principal and interest
payments and tax payments and it includes other supplemental
adjustments.
In addition, Adjusted Net Income (Loss) and
Adjusted EPS are non-GAAP financial measures that exclude certain
amounts and are used to supplement GAAP net income (loss) and EPS.
We use Adjusted Net Income (Loss) and Adjusted EPS as key
performance measures of our earnings performance. We believe that
both management and investors benefit from referring to these
non-GAAP financial measures in assessing our performance and when
planning, forecasting and analyzing future periods. These non-GAAP
financial measures also facilitate management’s internal comparison
to our historical performance. In addition, management uses
Adjusted EPS as a performance measure for our incentive
compensation. The amounts excluded in the presentation of these
non-GAAP financial measures may vary from period to period;
accordingly, our presentation of Adjusted Net Income (Loss) and
Adjusted EPS may not be indicative of future adjustments or
results.
Net Leverage and Net Debt are performance
measures that we believe provide management and investors a more
complete understanding of our leverage position and borrowing
capacity after factoring in cash and cash equivalents.
You are encouraged to evaluate each adjustment
used in calculating our non-GAAP financial measures and the reasons
we consider our non-GAAP financial measures appropriate for
supplemental analysis. In evaluating our non-GAAP financial
measures, you should be aware that in the future we may incur
expenses similar to the adjustments in our presentation. Our
non-GAAP financial measures have limitations as analytical tools,
and you should not consider these measures in isolation or as a
substitute for analysis of our results as reported under GAAP. Our
presentation of our non-GAAP financial measures should not be
construed as an inference that our future results will be
unaffected by unusual or non-recurring items. Our non-GAAP
financial measures may not be comparable to other companies. Please
see a historical reconciliation of these measures to the most
comparable GAAP measure presented in our consolidated financial
statements below.
Cautionary Statement Concerning Forward-Looking
Statements
Some of the statements, estimates or projections
contained in this release are “forward-looking statements” within
the meaning of the U.S. federal securities laws intended to qualify
for the safe harbor from liability established by the Private
Securities Litigation Reform Act of 1995. All statements other than
statements of historical facts contained, or incorporated by
reference, in this release, including, without limitation, our
expectations regarding our future financial position, including our
liquidity requirements and future capital expenditures, plans,
prospects, actions taken or strategies being considered with
respect to our liquidity position, including with respect to
refinancing, amending the terms of, or extending the maturity of
our indebtedness, our ability to comply with covenants under our
debt agreements, expectations regarding our exchangeable notes,
valuation and appraisals of our assets, expected fleet additions
and cancellations, including expected timing thereof, our
expectations regarding the impact of macroeconomic conditions and
recent global events, and expectations relating to our
sustainability program and decarbonization efforts may be
forward-looking statements. Many, but not all, of these statements
can be found by looking for words like “expect,” “anticipate,”
“goal,” “project,” “plan,” “believe,” “seek,” “will,” “may,”
“forecast,” “estimate,” “intend,” “future” and similar words.
Forward-looking statements do not guarantee future performance and
may involve risks, uncertainties and other factors which could
cause our actual results, performance or achievements to differ
materially from the future results, performance or achievements
expressed or implied in those forward-looking statements. Examples
of these risks, uncertainties and other factors include, but are
not limited to the impact of: adverse general economic factors,
such as fluctuating or increasing levels of interest rates,
inflation, unemployment, underemployment and the volatility of fuel
prices, declines in the securities and real estate markets, and
perceptions of these conditions that decrease the level of
disposable income of consumers or consumer confidence; implementing
precautions in coordination with regulators and global public
health authorities to protect the health, safety and security of
guests, crew and the communities we visit and to comply with
related regulatory restrictions; our indebtedness and restrictions
in the agreements governing our indebtedness that require us to
maintain minimum levels of liquidity and be in compliance with
maintenance covenants and otherwise limit our flexibility in
operating our business, including the significant portion of assets
that are collateral under these agreements; our ability to work
with lenders and others or otherwise pursue options to defer,
renegotiate, refinance or restructure our existing debt profile,
near-term debt amortization, newbuild related payments and other
obligations and to work with credit card processors to satisfy
current or potential future demands for collateral on cash advanced
from customers relating to future cruises; our need for additional
financing or financing to optimize our balance sheet, which may not
be available on favorable terms, or at all, and our outstanding
exchangeable notes and any future financing which may be dilutive
to existing shareholders; the unavailability of ports of call;
future increases in the price of, or major changes, disruptions or
reduction in, commercial airline services; changes involving the
tax and environmental regulatory regimes in which we operate,
including new regulations aimed at reducing greenhouse gas
emissions; the accuracy of any appraisals of our assets; our
success in controlling operating expenses and capital expenditures;
trends in, or changes to, future bookings and our ability to take
future reservations and receive deposits related thereto; adverse
events impacting the security of travel, or customer perceptions of
the security of travel, such as terrorist acts, armed conflict,
such as Russia’s invasion of Ukraine or the Israel-Hamas war, or
threats thereof, acts of piracy, and other international events;
public health crises, including the COVID-19 pandemic, and their
effect on the ability or desire of people to travel (including on
cruises); adverse incidents involving cruise ships; our ability to
maintain and strengthen our brand; breaches in data security or
other disturbances to our information technology systems and other
networks or our actual or perceived failure to comply with
requirements regarding data privacy and protection; changes in fuel
prices and the type of fuel we are permitted to use and/or other
cruise operating costs; mechanical malfunctions and repairs, delays
in our shipbuilding program, maintenance and refurbishments and the
consolidation of qualified shipyard facilities; the risks and
increased costs associated with operating internationally; our
inability to recruit or retain qualified personnel or the loss of
key personnel or employee relations issues; impacts related to
climate change and our ability to achieve our climate-related or
other sustainability goals; our inability to obtain adequate
insurance coverage; pending or threatened litigation,
investigations and enforcement actions; volatility and disruptions
in the global credit and financial markets, which may adversely
affect our ability to borrow and could increase our counterparty
credit risks, including those under our credit facilities,
derivatives, contingent obligations, insurance contracts and new
ship progress payment guarantees; any further impairment of our
trademarks, trade names or goodwill; our reliance on third parties
to provide hotel management services for certain ships and certain
other services; fluctuations in foreign currency exchange rates;
our expansion into new markets and investments in new markets and
land-based destination projects; overcapacity in key markets or
globally; and other factors set forth under “Risk Factors” in our
most recently filed Annual Report on Form 10-K and subsequent
filings with the Securities and Exchange Commission. The above
examples are not exhaustive and new risks emerge from time to time.
There may be additional risks that we consider immaterial or which
are unknown. Such forward-looking statements are based on our
current beliefs, assumptions, expectations, estimates and
projections regarding our present and future business strategies
and the environment in which we expect to operate in the future.
These forward-looking statements speak only as of the date made. We
expressly disclaim any obligation or undertaking to release
publicly any updates or revisions to any forward-looking statement
to reflect any change in our expectations with regard thereto or
any change of events, conditions or circumstances on which any such
statement was based, except as required by law.
Investor Relations & Media Contacts
Sarah Inmon(786) 812-3233InvestorRelations@nclcorp.com
|
NORWEGIAN CRUISE LINE
HOLDINGS LTD.CONSOLIDATED STATEMENTS OF
OPERATIONS(Unaudited)(in
thousands, except share and per share data) |
| |
|
Three Months Ended |
|
Six Months Ended |
| |
|
June 30, |
|
June 30, |
| |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
| Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
Passenger ticket |
|
$ |
1,602,076 |
|
|
$ |
1,478,474 |
|
|
$ |
3,061,890 |
|
|
$ |
2,687,315 |
|
|
Onboard and other |
|
|
770,416 |
|
|
|
727,018 |
|
|
|
1,501,817 |
|
|
|
1,340,116 |
|
|
Total revenue |
|
|
2,372,492 |
|
|
|
2,205,492 |
|
|
|
4,563,707 |
|
|
|
4,027,431 |
|
| Cruise operating
expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commissions, transportation and other |
|
|
501,039 |
|
|
|
506,855 |
|
|
|
937,249 |
|
|
|
916,539 |
|
|
Onboard and other |
|
|
171,707 |
|
|
|
161,880 |
|
|
|
303,743 |
|
|
|
281,577 |
|
|
Payroll and related |
|
|
330,578 |
|
|
|
308,220 |
|
|
|
674,859 |
|
|
|
612,375 |
|
|
Fuel |
|
|
174,964 |
|
|
|
164,242 |
|
|
|
372,698 |
|
|
|
359,110 |
|
|
Food |
|
|
77,046 |
|
|
|
87,770 |
|
|
|
161,754 |
|
|
|
183,736 |
|
|
Other |
|
|
199,421 |
|
|
|
154,643 |
|
|
|
391,875 |
|
|
|
310,691 |
|
|
Total cruise operating expense |
|
|
1,454,755 |
|
|
|
1,383,610 |
|
|
|
2,842,178 |
|
|
|
2,664,028 |
|
| Other operating
expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
Marketing, general and administrative |
|
|
353,771 |
|
|
|
352,222 |
|
|
|
716,240 |
|
|
|
688,235 |
|
|
Depreciation and amortization |
|
|
222,405 |
|
|
|
197,115 |
|
|
|
445,334 |
|
|
|
391,905 |
|
|
Total other operating expense |
|
|
576,176 |
|
|
|
549,337 |
|
|
|
1,161,574 |
|
|
|
1,080,140 |
|
|
Operating income |
|
|
341,561 |
|
|
|
272,545 |
|
|
|
559,955 |
|
|
|
283,263 |
|
| Non-operating income
(expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
|
(178,472 |
) |
|
|
(177,692 |
) |
|
|
(396,649 |
) |
|
|
(348,949 |
) |
|
Other income (expense), net |
|
|
1,896 |
|
|
|
(8,043 |
) |
|
|
20,033 |
|
|
|
(16,998 |
) |
|
Total non-operating income (expense) |
|
|
(176,576 |
) |
|
|
(185,735 |
) |
|
|
(376,616 |
) |
|
|
(365,947 |
) |
| Net income (loss)
before income taxes |
|
|
164,985 |
|
|
|
86,810 |
|
|
|
183,339 |
|
|
|
(82,684 |
) |
| Income tax benefit
(expense) |
|
|
(1,549 |
) |
|
|
(694 |
) |
|
|
(2,550 |
) |
|
|
9,479 |
|
| Net income
(loss) |
|
$ |
163,436 |
|
|
$ |
86,116 |
|
|
$ |
180,789 |
|
|
$ |
(73,205 |
) |
| Weighted-average
shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
434,807,434 |
|
|
|
424,178,775 |
|
|
|
430,805,477 |
|
|
|
423,421,203 |
|
|
Diluted |
|
|
513,589,734 |
|
|
|
461,075,240 |
|
|
|
468,078,473 |
|
|
|
423,421,203 |
|
| Earnings (loss) per
share |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.38 |
|
|
$ |
0.20 |
|
|
$ |
0.42 |
|
|
$ |
(0.17 |
) |
|
Diluted |
|
$ |
0.35 |
|
|
$ |
0.20 |
|
|
$ |
0.41 |
|
|
$ |
(0.17 |
) |
|
NORWEGIAN CRUISE LINE
HOLDINGS LTD.CONSOLIDATED STATEMENTS OF
COMPREHENSIVE INCOME
(LOSS)(Unaudited)(in
thousands) |
| |
|
Three Months Ended |
|
Six Months Ended |
| |
|
June 30, |
|
June 30, |
| |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
Net income (loss) |
|
$ |
163,436 |
|
|
$ |
86,116 |
|
|
$ |
180,789 |
|
|
$ |
(73,205 |
) |
| Other comprehensive income
(loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Shipboard Retirement Plan |
|
|
94 |
|
|
|
64 |
|
|
|
189 |
|
|
|
128 |
|
|
Cash flow hedges: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net unrealized gain (loss) |
|
|
1,157 |
|
|
|
(4,577 |
) |
|
|
48,410 |
|
|
|
(23,052 |
) |
|
Amount realized and reclassified into earnings |
|
|
(3,150 |
) |
|
|
2,547 |
|
|
|
(6,483 |
) |
|
|
(7,327 |
) |
|
Total other comprehensive income (loss) |
|
|
(1,899 |
) |
|
|
(1,966 |
) |
|
|
42,116 |
|
|
|
(30,251 |
) |
| Total comprehensive income
(loss) |
|
$ |
161,537 |
|
|
$ |
84,150 |
|
|
$ |
222,905 |
|
|
$ |
(103,456 |
) |
|
NORWEGIAN CRUISE LINE
HOLDINGS LTD.CONSOLIDATED BALANCE
SHEETS(Unaudited)(in thousands,
except share data) |
| |
|
June 30, |
|
December 31, |
| |
|
2024 |
|
|
2023 |
|
| Assets |
|
|
|
|
|
|
| Current assets: |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
594,098 |
|
|
$ |
402,415 |
|
|
Accounts receivable, net |
|
|
209,343 |
|
|
|
280,271 |
|
|
Inventories |
|
|
149,931 |
|
|
|
157,646 |
|
|
Prepaid expenses and other assets |
|
|
628,970 |
|
|
|
472,816 |
|
|
Total current assets |
|
|
1,582,342 |
|
|
|
1,313,148 |
|
| Property and equipment,
net |
|
|
16,632,973 |
|
|
|
16,433,292 |
|
| Goodwill |
|
|
135,764 |
|
|
|
98,134 |
|
| Trade names |
|
|
500,525 |
|
|
|
500,525 |
|
| Other long-term assets |
|
|
1,262,229 |
|
|
|
1,147,891 |
|
|
Total assets |
|
$ |
20,113,833 |
|
|
$ |
19,492,990 |
|
| Liabilities and
shareholders’ equity |
|
|
|
|
|
|
| Current liabilities: |
|
|
|
|
|
|
|
Current portion of long-term debt |
|
$ |
1,525,488 |
|
|
$ |
1,744,778 |
|
|
Accounts payable |
|
|
182,451 |
|
|
|
174,338 |
|
|
Accrued expenses and other liabilities |
|
|
1,146,858 |
|
|
|
1,058,919 |
|
|
Advance ticket sales |
|
|
3,779,119 |
|
|
|
3,060,666 |
|
|
Total current liabilities |
|
|
6,633,916 |
|
|
|
6,038,701 |
|
| Long-term debt |
|
|
11,913,073 |
|
|
|
12,314,147 |
|
| Other long-term
liabilities |
|
|
873,711 |
|
|
|
839,335 |
|
|
Total liabilities |
|
|
19,420,700 |
|
|
|
19,192,183 |
|
| Commitments and
contingencies |
|
|
|
|
|
|
| Shareholders’ equity: |
|
|
|
|
|
|
|
Ordinary shares, $0.001 par value; 980,000,000 shares authorized;
439,686,822 shares issued and outstanding at
June 30, 2024 and 425,546,570 shares issued and
outstanding at December 31, 2023 |
|
|
440 |
|
|
|
425 |
|
|
Additional paid-in capital |
|
|
7,878,363 |
|
|
|
7,708,957 |
|
|
Accumulated other comprehensive income (loss) |
|
|
(466,322 |
) |
|
|
(508,438 |
) |
|
Accumulated deficit |
|
|
(6,719,348 |
) |
|
|
(6,900,137 |
) |
|
Total shareholders’ equity |
|
|
693,133 |
|
|
|
300,807 |
|
|
Total liabilities and shareholders’ equity |
|
$ |
20,113,833 |
|
|
$ |
19,492,990 |
|
|
NORWEGIAN CRUISE LINE
HOLDINGS LTD.CONSOLIDATED STATEMENTS OF CASH
FLOWS(Unaudited)(in
thousands) |
| |
|
Six Months Ended |
| |
|
June 30, |
| |
|
2024 |
|
|
2023 |
|
| Cash flows from
operating activities |
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
180,789 |
|
|
$ |
(73,205 |
) |
| Adjustments to reconcile net
income (loss) to net cash provided by operating activities: |
|
|
|
|
|
|
|
Depreciation and amortization expense |
|
|
488,027 |
|
|
|
425,288 |
|
|
(Gain) loss on derivatives |
|
|
(1,129 |
) |
|
|
9,423 |
|
|
Loss on extinguishment of debt |
|
|
29,000 |
|
|
|
2,801 |
|
|
Provision for bad debts and inventory obsolescence |
|
|
3,198 |
|
|
|
1,497 |
|
|
Gain on involuntary conversion of assets |
|
|
(4,462 |
) |
|
|
(4,583 |
) |
|
Share-based compensation expense |
|
|
44,932 |
|
|
|
72,691 |
|
|
Net foreign currency adjustments on euro-denominated debt |
|
|
(8,587 |
) |
|
|
1,822 |
|
| Changes in operating assets
and liabilities: |
|
|
|
|
|
|
|
Accounts receivable, net |
|
|
66,671 |
|
|
|
106,709 |
|
|
Inventories |
|
|
7,329 |
|
|
|
(5,815 |
) |
|
Prepaid expenses and other assets |
|
|
(124,287 |
) |
|
|
321,120 |
|
|
Accounts payable |
|
|
(2,216 |
) |
|
|
(72,345 |
) |
|
Accrued expenses and other liabilities |
|
|
56,439 |
|
|
|
(75,009 |
) |
|
Advance ticket sales |
|
|
742,360 |
|
|
|
826,221 |
|
|
Net cash provided by operating activities |
|
|
1,478,064 |
|
|
|
1,536,615 |
|
| Cash flows from
investing activities |
|
|
|
|
|
|
| Additions to property and
equipment, net |
|
|
(599,505 |
) |
|
|
(974,190 |
) |
| Cash paid on settlement of
derivatives |
|
|
— |
|
|
|
(23,379 |
) |
| Acquisition, net of cash
acquired |
|
|
(27,322 |
) |
|
|
— |
|
| Other |
|
|
5,955 |
|
|
|
5,367 |
|
|
Net cash used in investing activities |
|
|
(620,872 |
) |
|
|
(992,202 |
) |
| Cash flows from
financing activities |
|
|
|
|
|
|
| Repayments of long-term
debt |
|
|
(778,109 |
) |
|
|
(2,500,777 |
) |
| Proceeds from long-term
debt |
|
|
261,734 |
|
|
|
2,038,187 |
|
| Proceeds from employee related
plans |
|
|
— |
|
|
|
2,618 |
|
| Net share settlement of
restricted share units |
|
|
(22,039 |
) |
|
|
(25,223 |
) |
| Early redemption premium |
|
|
(19,163 |
) |
|
|
— |
|
| Deferred financing fees |
|
|
(107,932 |
) |
|
|
(107,070 |
) |
|
Net cash used in financing activities |
|
|
(665,509 |
) |
|
|
(592,265 |
) |
|
Net increase (decrease) in cash and cash equivalents |
|
|
191,683 |
|
|
|
(47,852 |
) |
| Cash and cash equivalents at
beginning of the period |
|
|
402,415 |
|
|
|
946,987 |
|
| Cash and cash equivalents at
end of the period |
|
$ |
594,098 |
|
|
$ |
899,135 |
|
|
NORWEGIAN CRUISE LINE
HOLDINGS LTD.NON-GAAP RECONCILING
INFORMATION(Unaudited) |
|
| The following
table sets forth selected statistical information: |
|
| |
|
Three Months Ended |
|
Six Months Ended |
|
| |
|
June 30, |
|
June 30, |
|
|
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
| Passengers carried |
|
711,918 |
|
693,085 |
|
1,448,477 |
|
1,326,995 |
|
| Passenger Cruise Days |
|
6,077,574 |
|
5,781,750 |
|
12,189,944 |
|
11,278,856 |
|
| Capacity Days |
|
5,736,385 |
|
5,513,288 |
|
11,577,400 |
|
10,928,835 |
|
| Occupancy Percentage |
|
105.9 |
% |
104.9 |
% |
105.3 |
% |
103.2 |
% |
|
NORWEGIAN CRUISE LINE
HOLDINGS LTD.NON-GAAP RECONCILING
INFORMATION(Unaudited) |
| Adjusted Gross
Margin, Net Per Diem, and Net Yield were calculated as follows (in
thousands, except Net Yield, Net Per Diem, Capacity Days, Passenger
Cruise Days, per Passenger Cruise Day and Capacity Day data):
|
| |
|
Three Months Ended |
|
Six Months Ended |
| |
|
June 30, |
|
June 30, |
| |
|
|
|
2024 |
|
|
|
|
|
2024 |
|
|
| |
|
|
|
Constant Currency |
|
|
|
|
|
Constant Currency |
|
|
| |
|
2024 |
|
compared to 2023 |
|
2023 |
|
2024 |
|
compared to 2023 |
|
2023 |
|
Total revenue |
|
$ |
2,372,492 |
|
$ |
2,372,616 |
|
$ |
2,205,492 |
|
$ |
4,563,707 |
|
$ |
4,559,249 |
|
$ |
4,027,431 |
| Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total cruise operating
expense |
|
|
1,454,755 |
|
|
1,454,748 |
|
|
1,383,610 |
|
|
2,842,178 |
|
|
2,838,684 |
|
|
2,664,028 |
| Ship depreciation |
|
|
206,351 |
|
|
206,351 |
|
|
183,499 |
|
|
414,445 |
|
|
414,445 |
|
|
365,068 |
|
Gross margin |
|
|
711,386 |
|
|
711,517 |
|
|
638,383 |
|
|
1,307,084 |
|
|
1,306,120 |
|
|
998,335 |
| Ship depreciation |
|
|
206,351 |
|
|
206,351 |
|
|
183,499 |
|
|
414,445 |
|
|
414,445 |
|
|
365,068 |
| Payroll and related |
|
|
330,578 |
|
|
330,554 |
|
|
308,220 |
|
|
674,859 |
|
|
674,787 |
|
|
612,375 |
| Fuel |
|
|
174,964 |
|
|
174,955 |
|
|
164,242 |
|
|
372,698 |
|
|
372,665 |
|
|
359,110 |
| Food |
|
|
77,046 |
|
|
77,133 |
|
|
87,770 |
|
|
161,754 |
|
|
161,716 |
|
|
183,736 |
| Other |
|
|
199,421 |
|
|
199,227 |
|
|
154,643 |
|
|
391,875 |
|
|
389,814 |
|
|
310,691 |
|
Adjusted Gross Margin |
|
$ |
1,699,746 |
|
$ |
1,699,737 |
|
$ |
1,536,757 |
|
$ |
3,322,715 |
|
$ |
3,319,547 |
|
$ |
2,829,315 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Passenger Cruise Days |
|
|
6,077,574 |
|
|
6,077,574 |
|
|
5,781,750 |
|
|
12,189,944 |
|
|
12,189,944 |
|
|
11,278,856 |
| Capacity Days |
|
|
5,736,385 |
|
|
5,736,385 |
|
|
5,513,288 |
|
|
11,577,400 |
|
|
11,577,400 |
|
|
10,928,835 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total revenue per Passenger
Cruise Day |
|
$ |
390.37 |
|
$ |
390.39 |
|
$ |
381.46 |
|
$ |
374.38 |
|
$ |
374.02 |
|
$ |
357.08 |
| Gross margin per Passenger
Cruise Day |
|
$ |
117.05 |
|
$ |
117.07 |
|
$ |
110.41 |
|
$ |
107.23 |
|
$ |
107.15 |
|
$ |
88.51 |
| Net Per Diem |
|
$ |
279.68 |
|
$ |
279.67 |
|
$ |
265.79 |
|
$ |
272.58 |
|
$ |
272.32 |
|
$ |
250.85 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gross margin per Capacity
Day |
|
$ |
124.01 |
|
$ |
124.04 |
|
$ |
115.79 |
|
$ |
112.90 |
|
$ |
112.82 |
|
$ |
91.35 |
| Net Yield |
|
$ |
296.31 |
|
$ |
296.31 |
|
$ |
278.74 |
|
$ |
287.00 |
|
$ |
286.73 |
|
$ |
258.89 |
|
NORWEGIAN CRUISE LINE
HOLDINGS LTD.NON-GAAP RECONCILING
INFORMATION(Unaudited) |
| Gross Cruise
Cost, Net Cruise Cost, Net Cruise Cost Excluding Fuel and Adjusted
Net Cruise Cost Excluding Fuel were calculated as follows (in
thousands, except Capacity Days and per Capacity Day data): |
| |
|
Three Months Ended |
|
Six Months Ended |
| |
|
June 30, |
|
June 30, |
| |
|
|
|
2024 |
|
|
|
|
|
2024 |
|
|
| |
|
|
|
Constant Currency |
|
|
|
|
|
Constant Currency |
|
|
| |
|
2024 |
|
compared to 2023 |
|
2023 |
|
2024 |
|
compared to 2023 |
|
2023 |
|
Total cruise operating expense |
|
$ |
1,454,755 |
|
$ |
1,454,748 |
|
$ |
1,383,610 |
|
$ |
2,842,178 |
|
$ |
2,838,684 |
|
$ |
2,664,028 |
| Marketing, general and
administrative expense |
|
|
353,771 |
|
|
353,774 |
|
|
352,222 |
|
|
716,240 |
|
|
716,190 |
|
|
688,235 |
|
Gross Cruise Cost |
|
|
1,808,526 |
|
|
1,808,522 |
|
|
1,735,832 |
|
|
3,558,418 |
|
|
3,554,874 |
|
|
3,352,263 |
| Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Commissions, transportation
and other expense |
|
|
501,039 |
|
|
501,172 |
|
|
506,855 |
|
|
937,249 |
|
|
935,959 |
|
|
916,539 |
| Onboard and other expense |
|
|
171,707 |
|
|
171,707 |
|
|
161,880 |
|
|
303,743 |
|
|
303,743 |
|
|
281,577 |
|
Net Cruise Cost |
|
|
1,135,780 |
|
|
1,135,643 |
|
|
1,067,097 |
|
|
2,317,426 |
|
|
2,315,172 |
|
|
2,154,147 |
| Less: Fuel expense |
|
|
174,964 |
|
|
174,955 |
|
|
164,242 |
|
|
372,698 |
|
|
372,665 |
|
|
359,110 |
|
Net Cruise Cost Excluding Fuel |
|
|
960,816 |
|
|
960,688 |
|
|
902,855 |
|
|
1,944,728 |
|
|
1,942,507 |
|
|
1,795,037 |
| Less Other Non-GAAP
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash deferred compensation (1) |
|
|
718 |
|
|
718 |
|
|
578 |
|
|
1,437 |
|
|
1,437 |
|
|
1,156 |
|
Non-cash share-based compensation (2) |
|
|
22,984 |
|
|
22,984 |
|
|
44,536 |
|
|
44,932 |
|
|
44,932 |
|
|
72,691 |
| Adjusted Net Cruise Cost
Excluding Fuel |
|
$ |
937,114 |
|
$ |
936,986 |
|
$ |
857,741 |
|
$ |
1,898,359 |
|
$ |
1,896,138 |
|
$ |
1,721,190 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Capacity Days |
|
|
5,736,385 |
|
|
5,736,385 |
|
|
5,513,288 |
|
|
11,577,400 |
|
|
11,577,400 |
|
|
10,928,835 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gross Cruise Cost per Capacity
Day |
|
$ |
315.27 |
|
$ |
315.27 |
|
$ |
314.85 |
|
$ |
307.36 |
|
$ |
307.05 |
|
$ |
306.74 |
| Net Cruise Cost per Capacity
Day |
|
$ |
198.00 |
|
$ |
197.97 |
|
$ |
193.55 |
|
$ |
200.17 |
|
$ |
199.97 |
|
$ |
197.11 |
| Net Cruise Cost Excluding Fuel
per Capacity Day |
|
$ |
167.50 |
|
$ |
167.47 |
|
$ |
163.76 |
|
$ |
167.98 |
|
$ |
167.78 |
|
$ |
164.25 |
| Adjusted Net Cruise Cost
Excluding Fuel per Capacity Day |
|
$ |
163.36 |
|
$ |
163.34 |
|
$ |
155.58 |
|
$ |
163.97 |
|
$ |
163.78 |
|
$ |
157.49 |
___________________(1) Non-cash deferred
compensation expenses related to the crew pension plan and other
crew expenses, which are included in payroll and related
expense.(2) Non-cash share-based compensation expenses related to
equity awards, which are included in marketing, general and
administrative expense and payroll and related expense.
|
NORWEGIAN CRUISE LINE
HOLDINGS LTD.NON-GAAP RECONCILING
INFORMATION(Unaudited) |
| Adjusted Net
Income (Loss) and Adjusted EPS were calculated as follows (in
thousands, except share and per share data): |
| |
|
Three Months Ended |
|
Six Months Ended |
| |
|
June 30, |
|
June 30, |
| |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
|
Net income (loss) |
|
$ |
163,436 |
|
$ |
86,116 |
|
$ |
180,789 |
|
$ |
(73,205 |
) |
| Effect of dilutive securities
- exchangeable notes |
|
|
16,017 |
|
|
4,603 |
|
|
9,225 |
|
|
— |
|
| Net income (loss) and assumed
conversion of exchangeable notes |
|
|
179,453 |
|
|
90,719 |
|
|
190,014 |
|
|
(73,205 |
) |
| Non-GAAP
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash deferred compensation (1) |
|
|
1,232 |
|
|
1,010 |
|
|
2,465 |
|
|
2,020 |
|
|
Non-cash share-based compensation (2) |
|
|
22,984 |
|
|
44,536 |
|
|
44,932 |
|
|
72,691 |
|
|
Extinguishment and modification of debt (3) |
|
|
— |
|
|
719 |
|
|
29,000 |
|
|
3,153 |
|
|
Adjusted Net Income |
|
$ |
203,669 |
|
$ |
136,984 |
|
$ |
266,411 |
|
$ |
4,659 |
|
| Diluted weighted-average
shares outstanding - Net income (loss) and Adjusted Net Income |
|
|
513,589,734 |
|
|
461,075,240 |
|
|
468,078,473 |
|
|
423,421,203 |
|
| Diluted EPS |
|
$ |
0.35 |
|
$ |
0.20 |
|
$ |
0.41 |
|
$ |
(0.17 |
) |
|
Adjusted EPS |
|
$ |
0.40 |
|
$ |
0.30 |
|
$ |
0.57 |
|
$ |
0.01 |
|
______________________(1) Non-cash deferred
compensation expenses related to the crew pension plan and other
crew expenses, which are included in payroll and related expense
and other income (expense), net.(2) Non-cash share-based
compensation expenses related to equity awards, which are included
in marketing, general and administrative expense and payroll and
related expense.(3) Losses on extinguishment of debt and
modification of debt are included in interest expense, net.
|
NORWEGIAN CRUISE LINE
HOLDINGS LTD.NON-GAAP RECONCILING
INFORMATION(Unaudited) |
| EBITDA and
Adjusted EBITDA were calculated as follows (in thousands): |
| |
|
Three Months Ended |
|
Six Months Ended |
| |
|
June 30, |
|
June 30, |
| |
|
2024 |
|
|
2023 |
|
2024 |
|
|
2023 |
|
|
Net income (loss) |
|
$ |
163,436 |
|
|
$ |
86,116 |
|
$ |
180,789 |
|
|
$ |
(73,205 |
) |
| Interest expense, net |
|
|
178,472 |
|
|
|
177,692 |
|
|
396,649 |
|
|
|
348,949 |
|
| Income tax (benefit)
expense |
|
|
1,549 |
|
|
|
694 |
|
|
2,550 |
|
|
|
(9,479 |
) |
| Depreciation and amortization
expense |
|
|
222,405 |
|
|
|
197,115 |
|
|
445,334 |
|
|
|
391,905 |
|
|
EBITDA |
|
|
565,862 |
|
|
|
461,617 |
|
|
1,025,322 |
|
|
|
658,170 |
|
| Other (income) expense, net
(1) |
|
|
(1,896 |
) |
|
|
8,043 |
|
|
(20,033 |
) |
|
|
16,998 |
|
| Other Non-GAAP
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash deferred compensation (2) |
|
|
718 |
|
|
|
578 |
|
|
1,437 |
|
|
|
1,156 |
|
|
Non-cash share-based compensation (3) |
|
|
22,984 |
|
|
|
44,536 |
|
|
44,932 |
|
|
|
72,691 |
|
|
Adjusted EBITDA |
|
$ |
587,668 |
|
|
$ |
514,774 |
|
$ |
1,051,658 |
|
|
$ |
749,015 |
|
___________________(1) Primarily consists of
gains and losses, net for foreign currency remeasurements.(2)
Non-cash deferred compensation expenses related to the crew pension
plan and other crew expenses, which are included in payroll and
related expense.(3) Non-cash share-based compensation expenses
related to equity awards, which are included in marketing, general
and administrative expense and payroll and related expense.
|
NORWEGIAN CRUISE LINE
HOLDINGS LTD.NON-GAAP RECONCILING
INFORMATION(Unaudited) |
| Net Debt and Net
Leverage were calculated as follows (in thousands): |
| |
|
June 30, |
|
December 31, |
| |
|
2024 |
|
2023 |
|
Long-term debt |
|
$ |
11,913,073 |
|
$ |
12,314,147 |
| Current portion of long-term
debt |
|
|
1,525,488 |
|
|
1,744,778 |
|
Total Debt |
|
|
13,438,561 |
|
|
14,058,925 |
| Less: Cash and cash
equivalents |
|
|
594,098 |
|
|
402,415 |
|
Net Debt |
|
$ |
12,844,463 |
|
$ |
13,656,510 |
| |
|
|
|
|
|
|
| Adjusted EBITDA |
|
$ |
2,163,374 |
|
|
1,860,731 |
| |
|
|
|
|
|
|
| Net Leverage |
|
|
5.9x |
|
|
7.3x |
Norwegian Cruise Line (NYSE:NCLH)
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