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 first quarter ended March 31, 2024 and
provided guidance for the second quarter and full year 2024.
First Quarter 2024 Highlights:
- Generated total revenue of $2.2
billion, a 20% increase compared to the same period in 2023 on 8%
capacity growth, with GAAP net income of $17.4 million, or EPS of
$0.04.
- Adjusted EBITDA nearly doubled over
the prior year to $464.0 million, above guidance of $450 million.
Achieved Adjusted EPS of $0.16, exceeding guidance of $0.12,
compared to a loss of $(0.30) in the first quarter of 2023. Quarter
performance was driven by strong revenue growth and continued focus
on cost reductions and efficiencies.1
- The Company’s ongoing margin
enhancement initiative drove continued improvement in operating
costs. Gross Cruise Costs per Capacity Day was approximately $300
for the quarter. Adjusted Net Cruise Costs excluding Fuel per
Capacity Day was approximately $165, or $164 in Constant Currency,
in line with guidance, and flat year-over-year when the $5 Dry-dock
impact is excluded.
- Occupancy was 104.6% for the
quarter, in line with guidance, and total revenue per Passenger
Cruise Day increased approximately 8%, compared to Q1 2023.
- Gross margin per Capacity Day was
up 53% versus 2023 on an as reported and Constant Currency basis.
Net Yield growth beat guidance increasing approximately 16.4%, or
16.2% versus 2023 on a Constant Currency basis.
- Total debt was $13.7 billion. Net
Leverage declined a full turn from December 31, 2023, ending the
quarter at 6.3x.
Recent Highlights
- Announced the most transformative
newbuild program in the Company’s history—a total of eight
state-of-the-art vessels, representing nearly 25,000 additional
berths, with new classes of ships for each of its three
award-winning brands—and the construction of a multi-ship pier at
Great Stirrup Cay, the Company’s private island destination in the
Bahamas.
- S&P Global Ratings (S&P)
upgraded both NCLC’s issuer credit rating and issue-level ratings.
NCLC’s issuer credit rating has been upgraded to B+, marking a
notable improvement in the Company’s creditworthiness. In addition,
S&P raised the issue-level ratings on NCLC’s existing secured
and unsecured debt. The Company’s senior secured debt ratings were
raised to BB/BB- and its unsecured debt rating was upgraded two
notches to B.
___________________________
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
- Record bookings during the first
quarter, drove a record booked position for the next twelve
months.
- 2024 full year Net Yield guidance
on a Constant Currency basis increased 100 basis points from the
prior guidance to approximately 6.4% from 5.4%.
- 2024 full year Adjusted EBITDA
guidance increased $50 million from the prior guidance to
approximately $2.25 billion from $2.20 billion.
- Full year Adjusted Net Income
guidance increased $45 million from prior guidance to $680 million
from $635 million, and Adjusted EPS guidance increased $0.09 from
prior guidance to $1.32 from $1.23.
“We kicked off 2024 with impressive momentum,
with record bookings in the first quarter propelling us to continue
our all-time high booked position and an unprecedented level of
advance ticket sales. These achievements demonstrate the continued
growing demand we are experiencing for our product and offerings,”
remarked Harry Sommer, president and chief executive officer of
Norwegian Cruise Line Holdings Ltd.
“Recently, we announced the most comprehensive
newbuild program in our Company’s history- eight state-of-the-art
vessels, each a new class for our three award-winning brands as
well as the construction of a new pier at Great Stirrup Cay. Later
this month at our Investor Day, we will be unveiling our
comprehensive multi-year strategic, operational and financial
updates, which will underscore our focus on delivering experiences
that our guests truly value. By enhancing our capacity and
elevating our product to create the best, largest, and most
efficient vessels in our fleet, we are honoring our 57-year history
of innovation that has always driven our growth and continues to be
at the forefront of what we do,” continued Sommer.
Business, Operations and Booking Environment
Update
The Company continues to experience healthy
consumer demand and thanks to a strong WAVE season, had record
bookings during the first quarter leading to a continued record
booked position for the next twelve months. Additionally, onboard
revenue per Capacity Day remains robust, up 11% in the quarter
compared to 2023, with broad-based strength across all revenue
streams. The Company’s advance ticket sales balance, including the
long-term portion, ended the first quarter of 2024 at an all-time
record high of $3.8 billion, approximately 13% higher than the same
period of 2023.
Occupancy was 104.6% for the first quarter of
2024, in line with guidance. Full year 2024 Occupancy is expected
to average 105.1%, consistent with prior guidance. In addition,
pricing growth in the first quarter was also strong with total
revenue per Passenger Cruise Day up approximately 8%, with capacity
growth of 8% compared to 2023. Gross margin per Capacity Day was
approximately $102 in the quarter, up 53% versus 2023 on an as
reported and Constant Currency basis. Net Yield growth was up
approximately 16.4%, or 16.2% versus 2023 on a Constant Currency
basis, above guidance.
The Company demonstrated continued progress on
its ongoing margin enhancement initiative and efforts to maximize
revenue opportunities and rightsize its cost base. Gross Cruise
Costs per Capacity Day was approximately $300 in the first quarter,
compared to $298 last year. Adjusted Net Cruise Costs excluding
Fuel per Capacity Day in the first quarter of 2024 was
approximately $165, or $164 in Constant Currency, which included a
$5 impact from increased Dry-dock days and related costs, in line
with guidance and essentially flat year-over-year without the
impact of these Dry-docks.
For the full year 2024, the Company increased
its Net Yield guidance by 100 basis points from prior guidance to
growth of approximately 6.4% from approximately 5.4% on a Constant
Currency basis compared to 2023. The increase in guidance is driven
by exceptional demand across all three brands which almost fully
offsets the impact from the redeployed voyages related to the
Middle East and Red Sea. Full year Adjusted Net Cruise Cost
Excluding Fuel per Capacity Day guidance remained unchanged and is
expected to be approximately $159, increasing approximately 3.4% 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. As a result, full
year 2024 Adjusted EBITDA guidance increased by $50 million to
$2.25 billion from $2.20 billion and Adjusted EPS guidance was
increased by $0.09 to approximately $1.32 from approximately
$1.23.
Liquidity and Financial Position
The Company is committed to prioritizing efforts
to optimize its balance sheet and reduce leverage. As of March 31,
2024, the Company had total debt of $13.7 billion and Net Debt of
$13.2 billion and improved its Net Leverage by a full turn compared
to December 31, 2023, ending the first quarter of 2024 with Net
Leverage of 6.3x.
At quarter-end, liquidity was $2.4 billion. This
consists of approximately $559.8 million of cash and cash
equivalents, $1.2 billion of availability under our undrawn
Revolving Loan Facility and a $650 million undrawn backstop
commitment. In March 2024 we successfully refinanced our $650
million backstop commitment, replacing the secured commitment with
an unsecured commitment. Additionally, as part of this refinancing,
we repaid our $250 million 9.75% senior secured notes due 2028, our
highest interest rate debt.
“We are pleased to report that we exceeded our
guidance metrics for the first quarter of 2024. Thanks to robust
consumer demand and continued success on our operational efficiency
efforts, we are raising our 2024 full-year guidance for key metrics
including Net Yield, Adjusted EBITDA and Adjusted EPS,” said Mark
A. Kempa, executive vice president and chief financial officer of
Norwegian Cruise Line Holdings Ltd.
Kempa continued, “the momentum we are
experiencing allows us to make significant progress on our
deleveraging efforts. During the first quarter of 2024 we reduced
Net Leverage by a full turn from the end of 2023, ending the
quarter at 6.3x. We plan to continue this trend and expect to
reduce Net Leverage 1.5 turns during the year compared to 2023
year-end, marking an important milestone in improving our balance
sheet.”
First Quarter 2024 Results
GAAP net income was $17.4 million or EPS of
$0.04 compared to net loss of $(159.3) million or EPS of $(0.38) in
the prior year. The Company reported Adjusted Net Income of
$69.5 million or Adjusted EPS of $0.16 in the first quarter of
2024. This compares to Adjusted Net Loss and Adjusted EPS of
$(127.7) million and $(0.30), respectively, in the first quarter of
2023. Adjusted EBITDA in the first quarter was approximately $464.0
million, better than guidance of $450 million, and almost doubled
compared to 2023, driven primarily by solid revenue performance and
Adjusted Net Cruise Cost Excluding Fuel that was essentially flat
year-on-year excluding the impact of Dry-docks.
Gross Cruise Costs per Capacity Day was
approximately $300 in the quarter. Adjusted Net Cruise Costs
excluding Fuel per Capacity Day was approximately $165, or $164 in
Constant Currency, which includes $5 related to Dry-dock days, 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 $198
million in the quarter. Fuel price per metric ton, net of hedges,
decreased to $735 from $779 in 2023. Fuel consumption of 269,000
metric tons was slightly better than projections.
Interest expense, net was $218.2 million in 2024
compared to $171.3 million in 2023. The increase in interest
expense reflects higher losses in 2024 from extinguishment of debt
and debt modification costs, which were $29.0 million in 2024
compared to $2.4 million in 2023. Excluding these losses, the
increase in interest expense was primarily a result of higher debt
outstanding and higher rates.
Other income (expense), net was an income of
$18.1 million in 2024 compared to an expense of $(9.0) million in
2023.
Outlook and Guidance
In addition to announcing the results for the
first quarter 2024, the Company also provided guidance for the
second 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.
|
|
2024 Guidance |
|
Second Quarter 2024 |
Full Year 2024 |
|
As Reported |
ConstantCurrency |
As Reported |
ConstantCurrency |
Net Yield |
~4.3% |
~4.3% |
~6.4% |
~6.4% |
|
~ $291 |
~ $291 |
~$285 |
~$285 |
Adjusted Net Cruise Cost |
~5.8% |
~5.8% |
~3.5% |
~3.4% |
Excluding Fuel per Capacity Day1 |
~$165 |
~$165 |
~$159 |
~$159 |
Capacity Days |
~5.74 million |
~23.50 million |
Occupancy |
~105.7% |
~105.1% |
Adjusted EBITDA |
~$555 million |
~$2.25 billion |
Adjusted Net Income |
~ $160 million |
~ $680 million |
Adjusted EPS2 |
~$0.32 |
~$1.32 |
Diluted Weighted-Average Shares Outstanding3 |
~515 million |
~516 million |
Depreciation and Amortization |
~$225 million |
~$895 million |
Adjusted Interest Expense, net4 |
~$185 million |
~$740 million |
Effect of a 1% change in Net Yield on |
~$17 million |
~ $67 million |
Adjusted EBITDA / Adjusted EPS |
~ $0.03 |
~ $0.13 |
Effect of a $1 change in Adjusted Net |
|
|
Cruise Cost Excluding Fuel per Capacity |
~$6 million |
~$24 million |
Day on Adjusted EBITDA / Adjusted EPS |
~$0.01 |
~$0.05 |
|
|
|
___________________________
(1) |
Q2 2024 includes an approximate 550 basis point, or $9, 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 $156 in Q2 2024 as
reported and in Constant Currency. Full Year 2024 includes an
approximate 300 basis point, or $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 $154 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 second quarter of
2024 and 516 million for full year 2024. Adjusted EPS for the
second quarter 2024 and full year 2024 assumes that all four of the
Company’s exchangeable notes are fully dilutive and therefore
excludes approximately $16 million and $62 million of interest
expense, respectively, associated with the Company’s exchangeable
notes. |
(3) |
Q2 2024 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 March 31, 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 $7 million excluding the effects of capitalization
of interest. |
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|
The following reflects the foreign currency
exchange rates the Company used in its second quarter and full year
2024 guidance.
|
|
|
|
Current Guidance |
Euro |
$ |
1.08 |
British pound |
$ |
1.26 |
Australian Dollar |
$ |
0.65 |
Canadian Dollar |
$ |
0.74 |
|
|
|
Fuel
The following reflects the Company’s
expectations regarding fuel consumption and pricing, along with
accompanying sensitivities.
|
|
Second Quarter 2024 |
|
Full Year 2024 |
Fuel consumption in metric tons1 |
|
245,000 |
|
|
995,000 |
Fuel price per metric ton, net
of hedges2 |
$ |
675 |
|
$ |
705 |
Effect on Adjusted EPS of a
10% change in fuel prices, net of hedges |
$ |
0.01 |
|
$ |
0.03 |
|
|
|
|
|
|
___________________________
(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 4/24/2024. |
|
|
As of March 31, 2024, the Company had hedged
approximately 55% and 22% 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”).
|
|
|
|
|
|
2024 |
|
2025 |
|
% of HFO Consumption Hedged1 |
|
35 |
% |
|
22 |
% |
Blended HFO Hedge Price /
Metric Ton |
$ |
395 |
|
$ |
402 |
|
% of MGO Consumption
Hedged |
|
74 |
% |
|
23 |
% |
Blended MGO Hedge Price /
Metric Ton |
$ |
746 |
|
$ |
738 |
|
Total % of Consumption
Hedged |
|
55 |
% |
|
22 |
% |
|
|
|
|
|
|
|
___________________________
(1) |
Hedged derivatives include accounting hedges as well as economic
hedges. |
|
|
Capital Expenditures
Non-newbuild capital expenditures for the first
quarter of 2024 were $127 million. Anticipated non-newbuild capital
expenditures for full year 2024 are expected to be
approximately $575 million including approximately $140 million in
the second quarter.
Newbuild-related capital expenditures, net of
export credit financing, are expected to be approximately $0.3
billion, $0.6 billion and $0.9 billion for the full years
ending December 31, 2024, 2025 and 2026, respectively. Net
newbuild-related capital expenditures for the first quarter of 2024
were approximately $60 million and are expected to be approximately
$65 million for the second quarter of 2024.
Company Updates and Other Business
Highlights:
Fleet and Brand Updates
- Oceania Cruises announced its 2026
Around the World voyage aboard Vista. Learn more here.
- Regent Seven Seas Cruises®
announced its 2027 World Cruise will be hosted on board Seven Seas
Splendor® for the first time. Learn more here.
- Oceania Cruises announced that
celebrated Italian-American chef, author, restaurateur and Emmy
award-winning food personality Giada De Laurentiis will be its new
Brand and Culinary Ambassador. Learn more here.
- Norwegian Cruise Line unveiled
all-new culinary experiences to debut aboard Norwegian Aqua,
bringing three brand-new offerings: Sukhothai, NCL’s first-ever
Thai restaurant, the new upscale Swirl Wine Bar, and Planterie, the
brand’s first dedicated eatery offering a full plant-based menu.
Learn more here.
Conference Call
The Company has scheduled a conference call for
Wednesday, May 1, 2024 at 10:00 a.m. Eastern Time to discuss
first 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.
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.
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.
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, Net Yield, Net Cruise Cost, Adjusted Net
Cruise Cost Excluding Fuel, Adjusted EBITDA, Net Leverage, Net
Debt, Adjusted Net Income (Loss), Adjusted EPS, and Net Per Diem,
to enable us to analyze our performance. See “Terminology” for the
definitions of these and other non-GAAP financial measures. 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 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, 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 |
|
March 31, |
|
2024 |
|
2023 |
Revenue |
|
|
|
|
|
Passenger ticket |
$ |
1,459,814 |
|
|
$ |
1,208,841 |
|
Onboard and other |
|
731,401 |
|
|
|
613,098 |
|
Total revenue |
|
2,191,215 |
|
|
|
1,821,939 |
|
Cruise operating
expense |
|
|
|
|
|
Commissions, transportation and other |
|
436,210 |
|
|
|
409,684 |
|
Onboard and other |
|
132,036 |
|
|
|
119,697 |
|
Payroll and related |
|
344,281 |
|
|
|
304,155 |
|
Fuel |
|
197,734 |
|
|
|
194,868 |
|
Food |
|
84,708 |
|
|
|
95,966 |
|
Other |
|
192,454 |
|
|
|
156,048 |
|
Total cruise operating expense |
|
1,387,423 |
|
|
|
1,280,418 |
|
Other operating
expense |
|
|
|
|
|
Marketing, general and administrative |
|
362,469 |
|
|
|
336,013 |
|
Depreciation and amortization |
|
222,929 |
|
|
|
194,790 |
|
Total other operating expense |
|
585,398 |
|
|
|
530,803 |
|
Operating income |
|
218,394 |
|
|
|
10,718 |
|
Non-operating income
(expense) |
|
|
|
|
|
Interest expense, net |
|
(218,177 |
) |
|
|
(171,257 |
) |
Other income (expense), net |
|
18,137 |
|
|
|
(8,955 |
) |
Total non-operating income (expense) |
|
(200,040 |
) |
|
|
(180,212 |
) |
Net income (loss)
before income taxes |
|
18,354 |
|
|
|
(169,494 |
) |
Income tax benefit
(expense) |
|
(1,001 |
) |
|
|
10,173 |
|
Net income
(loss) |
$ |
17,353 |
|
|
$ |
(159,321 |
) |
Weighted-average
shares outstanding |
|
|
|
|
|
Basic |
|
426,803,519 |
|
|
|
422,655,215 |
|
Diluted |
|
431,019,206 |
|
|
|
422,655,215 |
|
Earnings (loss) per
share |
|
|
|
|
|
Basic |
$ |
0.04 |
|
|
$ |
(0.38 |
) |
Diluted |
$ |
0.04 |
|
|
$ |
(0.38 |
) |
|
|
|
|
|
|
|
|
NORWEGIAN CRUISE LINE
HOLDINGS LTD.CONSOLIDATED STATEMENTS OF
COMPREHENSIVE INCOME
(LOSS)(Unaudited)(in
thousands) |
|
|
Three Months Ended |
|
March 31, |
|
2024 |
|
2023 |
Net income (loss) |
$ |
17,353 |
|
|
$ |
(159,321 |
) |
Other comprehensive income
(loss): |
|
|
|
|
|
Shipboard Retirement Plan |
|
95 |
|
|
|
64 |
|
Cash flow hedges: |
|
|
|
|
|
Net unrealized gain (loss) |
|
47,253 |
|
|
|
(18,475 |
) |
Amount realized and reclassified into earnings |
|
(3,333 |
) |
|
|
(9,874 |
) |
Total other comprehensive income (loss) |
|
44,015 |
|
|
|
(28,285 |
) |
Total comprehensive income
(loss) |
$ |
61,368 |
|
|
$ |
(187,606 |
) |
|
|
|
|
|
|
|
|
NORWEGIAN CRUISE LINE
HOLDINGS LTD.CONSOLIDATED BALANCE
SHEETS(Unaudited)(in thousands,
except share data) |
|
|
|
|
|
|
|
March 31, |
|
December 31, |
|
2024 |
|
2023 |
Assets |
|
|
|
|
|
Current assets: |
|
|
|
|
|
Cash and cash equivalents |
$ |
559,814 |
|
|
$ |
402,415 |
|
Accounts receivable, net |
|
282,313 |
|
|
|
280,271 |
|
Inventories |
|
157,879 |
|
|
|
157,646 |
|
Prepaid expenses and other assets |
|
590,148 |
|
|
|
472,816 |
|
Total current assets |
|
1,590,154 |
|
|
|
1,313,148 |
|
Property and equipment,
net |
|
16,463,522 |
|
|
|
16,433,292 |
|
Goodwill |
|
98,134 |
|
|
|
98,134 |
|
Trade names |
|
500,525 |
|
|
|
500,525 |
|
Other long-term assets |
|
1,172,853 |
|
|
|
1,147,891 |
|
Total assets |
$ |
19,825,188 |
|
|
$ |
19,492,990 |
|
Liabilities and
shareholders’ equity |
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
Current portion of long-term debt |
$ |
1,744,221 |
|
|
$ |
1,744,778 |
|
Accounts payable |
|
204,971 |
|
|
|
174,338 |
|
Accrued expenses and other liabilities |
|
1,019,620 |
|
|
|
1,058,919 |
|
Advance ticket sales |
|
3,629,707 |
|
|
|
3,060,666 |
|
Total current liabilities |
|
6,598,519 |
|
|
|
6,038,701 |
|
Long-term debt |
|
12,005,296 |
|
|
|
12,314,147 |
|
Other long-term
liabilities |
|
859,282 |
|
|
|
839,335 |
|
Total liabilities |
|
19,463,097 |
|
|
|
19,192,183 |
|
Commitments and
contingencies |
|
|
|
|
|
Shareholders’ equity: |
|
|
|
|
|
Ordinary shares, $0.001 par value; 980,000,000 shares authorized;
429,025,827 shares issued and outstanding at
March 31, 2024 and 425,546,570 shares issued and
outstanding at December 31, 2023 |
|
429 |
|
|
|
425 |
|
Additional paid-in capital |
|
7,708,869 |
|
|
|
7,708,957 |
|
Accumulated other comprehensive income (loss) |
|
(464,423 |
) |
|
|
(508,438 |
) |
Accumulated deficit |
|
(6,882,784 |
) |
|
|
(6,900,137 |
) |
Total shareholders’ equity |
|
362,091 |
|
|
|
300,807 |
|
Total liabilities and shareholders’ equity |
$ |
19,825,188 |
|
|
$ |
19,492,990 |
|
|
|
|
|
|
|
|
|
NORWEGIAN CRUISE LINE
HOLDINGS LTD.CONSOLIDATED STATEMENTS OF CASH
FLOWS(Unaudited)(in
thousands) |
|
|
|
|
|
|
|
Three Months Ended |
|
March 31, |
|
2024 |
|
2023 |
Cash flows from
operating activities |
|
|
|
|
|
Net income (loss) |
$ |
17,353 |
|
|
$ |
(159,321 |
) |
Adjustments to reconcile net
income (loss) to net cash provided by operating activities: |
|
|
|
|
|
Depreciation and amortization expense |
|
245,092 |
|
|
|
210,676 |
|
(Gain) loss on derivatives |
|
(1,125 |
) |
|
|
4,404 |
|
Loss on extinguishment of debt |
|
29,000 |
|
|
|
2,434 |
|
Provision for bad debts and inventory obsolescence |
|
1,532 |
|
|
|
1,199 |
|
Gain on involuntary conversion of assets |
|
(2,846 |
) |
|
|
— |
|
Share-based compensation expense |
|
21,948 |
|
|
|
28,155 |
|
Net foreign currency adjustments on euro-denominated debt |
|
(6,603 |
) |
|
|
1,021 |
|
Changes in operating assets
and liabilities: |
|
|
|
|
|
Accounts receivable, net |
|
(4,052 |
) |
|
|
65,391 |
|
Inventories |
|
(517 |
) |
|
|
2,812 |
|
Prepaid expenses and other assets |
|
(83,414 |
) |
|
|
(127,192 |
) |
Accounts payable |
|
29,987 |
|
|
|
(25,926 |
) |
Accrued expenses and other liabilities |
|
(31,422 |
) |
|
|
(168,581 |
) |
Advance ticket sales |
|
592,238 |
|
|
|
668,261 |
|
Net cash provided by operating activities |
|
807,171 |
|
|
|
503,333 |
|
Cash flows from
investing activities |
|
|
|
|
|
Additions to property and
equipment, net |
|
(258,851 |
) |
|
|
(237,676 |
) |
Other |
|
3,608 |
|
|
|
1,320 |
|
Net cash used in investing activities |
|
(255,243 |
) |
|
|
(236,356 |
) |
Cash flows from
financing activities |
|
|
|
|
|
Repayments of long-term
debt |
|
(425,339 |
) |
|
|
(1,821,412 |
) |
Proceeds from long-term
debt |
|
92,406 |
|
|
|
1,330,622 |
|
Proceeds from employee related
plans |
|
— |
|
|
|
2,618 |
|
Net share settlement of
restricted share units |
|
(22,032 |
) |
|
|
(11,306 |
) |
Early redemption premium |
|
(19,163 |
) |
|
|
— |
|
Deferred financing fees |
|
(20,401 |
) |
|
|
(13,886 |
) |
Net cash used in financing activities |
|
(394,529 |
) |
|
|
(513,364 |
) |
Net increase (decrease) in cash and cash equivalents |
|
157,399 |
|
|
|
(246,387 |
) |
Cash and cash equivalents at
beginning of the period |
|
402,415 |
|
|
|
946,987 |
|
Cash and cash equivalents at
end of the period |
$ |
559,814 |
|
|
$ |
700,600 |
|
|
|
|
|
|
|
|
|
NORWEGIAN CRUISE LINE
HOLDINGS LTD.NON-GAAP RECONCILING
INFORMATION(Unaudited) |
|
The following table sets forth selected
statistical information:
|
|
Three Months Ended |
|
|
March 31, |
|
|
2024 |
|
2023 |
|
Passengers carried |
736,559 |
|
633,910 |
|
Passenger Cruise Days |
6,112,370 |
|
5,497,106 |
|
Capacity Days |
5,841,015 |
|
5,415,547 |
|
Occupancy Percentage |
104.6 |
% |
101.5 |
% |
|
|
|
|
|
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 |
|
March 31, |
|
|
|
2024 |
|
|
|
|
|
Constant Currency |
|
|
|
2024 |
|
compared to 2023 |
|
2023 |
Total revenue |
$ |
2,191,215 |
|
$ |
2,186,633 |
|
$ |
1,821,939 |
Less: |
|
|
|
|
|
|
|
|
Total cruise operating
expense |
|
1,387,423 |
|
|
1,383,936 |
|
|
1,280,418 |
Ship depreciation |
|
208,094 |
|
|
208,094 |
|
|
181,569 |
Gross margin |
|
595,698 |
|
|
594,603 |
|
|
359,952 |
Ship depreciation |
|
208,094 |
|
|
208,094 |
|
|
181,569 |
Payroll and related |
|
344,281 |
|
|
344,233 |
|
|
304,155 |
Fuel |
|
197,734 |
|
|
197,710 |
|
|
194,868 |
Food |
|
84,708 |
|
|
84,584 |
|
|
95,966 |
Other |
|
192,454 |
|
|
190,586 |
|
|
156,048 |
Adjusted Gross Margin |
$ |
1,622,969 |
|
$ |
1,619,810 |
|
$ |
1,292,558 |
|
|
|
|
|
|
|
|
|
Passenger Cruise Days |
|
6,112,370 |
|
|
6,112,370 |
|
|
5,497,106 |
Capacity Days |
|
5,841,015 |
|
|
5,841,015 |
|
|
5,415,547 |
|
|
|
|
|
|
|
|
|
Total revenue per Passenger
Cruise Day |
$ |
358.49 |
|
$ |
357.74 |
|
$ |
331.44 |
Gross margin per Passenger
Cruise Day |
$ |
97.46 |
|
$ |
97.28 |
|
$ |
65.48 |
Net Per Diem |
$ |
265.52 |
|
$ |
265.01 |
|
$ |
235.13 |
|
|
|
|
|
|
|
|
|
Gross margin per Capacity
Day |
$ |
101.99 |
|
$ |
101.80 |
|
$ |
66.47 |
Net Yield |
$ |
277.86 |
|
$ |
277.32 |
|
$ |
238.68 |
|
|
|
|
|
|
|
|
|
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 |
|
March 31, |
|
|
|
2024 |
|
|
|
|
|
Constant Currency |
|
|
|
2024 |
|
compared to 2023 |
|
2023 |
Total cruise operating expense |
$ |
1,387,423 |
|
$ |
1,383,936 |
|
$ |
1,280,418 |
Marketing, general and
administrative expense |
|
362,469 |
|
|
362,416 |
|
|
336,013 |
Gross Cruise Cost |
|
1,749,892 |
|
|
1,746,352 |
|
|
1,616,431 |
Less: |
|
|
|
|
|
|
|
|
Commissions, transportation
and other expense |
|
436,210 |
|
|
434,787 |
|
|
409,684 |
Onboard and other expense |
|
132,036 |
|
|
132,036 |
|
|
119,697 |
Net Cruise Cost |
|
1,181,646 |
|
|
1,179,529 |
|
|
1,087,050 |
Less: Fuel expense |
|
197,734 |
|
|
197,710 |
|
|
194,868 |
Net Cruise Cost Excluding Fuel |
|
983,912 |
|
|
981,819 |
|
|
892,182 |
Less Other Non-GAAP
Adjustments: |
|
|
|
|
|
|
|
|
Non-cash deferred compensation (1) |
|
719 |
|
|
719 |
|
|
578 |
Non-cash share-based compensation (2) |
|
21,948 |
|
|
21,948 |
|
|
28,155 |
Adjusted Net Cruise Cost
Excluding Fuel |
$ |
961,245 |
|
$ |
959,152 |
|
$ |
863,449 |
|
|
|
|
|
|
|
|
|
Capacity Days |
|
5,841,015 |
|
|
5,841,015 |
|
|
5,415,547 |
|
|
|
|
|
|
|
|
|
Gross Cruise Cost per Capacity
Day |
$ |
299.59 |
|
$ |
298.98 |
|
$ |
298.48 |
Net Cruise Cost per Capacity
Day |
$ |
202.30 |
|
$ |
201.94 |
|
$ |
200.73 |
Net Cruise Cost Excluding Fuel
per Capacity Day |
$ |
168.45 |
|
$ |
168.09 |
|
$ |
164.74 |
Adjusted Net Cruise Cost
Excluding Fuel per Capacity Day |
$ |
164.57 |
|
$ |
164.21 |
|
$ |
159.44 |
|
|
|
|
|
|
|
|
|
___________________________
(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 |
|
March 31, |
|
2024 |
|
2023 |
|
Net income (loss) |
$ |
17,353 |
|
$ |
(159,321 |
) |
Non-GAAP
Adjustments: |
|
|
|
|
|
Non-cash deferred compensation (1) |
|
1,233 |
|
|
1,010 |
|
Non-cash share-based compensation (2) |
|
21,948 |
|
|
28,155 |
|
Extinguishment and modification of debt (3) |
|
29,000 |
|
|
2,434 |
|
Adjusted Net Income (Loss) |
$ |
69,534 |
|
$ |
(127,722 |
) |
Diluted weighted-average
shares outstanding - Net income (loss) and Adjusted Net Income
(Loss) |
|
431,019,206 |
|
|
422,655,215 |
|
Diluted EPS |
$ |
0.04 |
|
$ |
(0.38 |
) |
Adjusted EPS |
$ |
0.16 |
|
$ |
(0.30 |
) |
|
|
|
|
|
|
|
___________________________
(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 |
|
March 31, |
|
2024 |
|
2023 |
Net income (loss) |
$ |
17,353 |
|
|
$ |
(159,321 |
) |
Interest expense, net |
|
218,177 |
|
|
|
171,257 |
|
Income tax (benefit)
expense |
|
1,001 |
|
|
|
(10,173 |
) |
Depreciation and amortization
expense |
|
222,929 |
|
|
|
194,790 |
|
EBITDA |
|
459,460 |
|
|
|
196,553 |
|
Other (income) expense, net
(1) |
|
(18,137 |
) |
|
|
8,955 |
|
Other Non-GAAP
Adjustments: |
|
|
|
|
|
Non-cash deferred compensation (2) |
|
719 |
|
|
|
578 |
|
Non-cash share-based compensation (3) |
|
21,948 |
|
|
|
28,155 |
|
Adjusted EBITDA |
$ |
463,990 |
|
|
$ |
234,241 |
|
|
|
|
|
|
|
|
|
___________________________
(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):
|
|
March 31, |
|
December 31, |
|
2024 |
|
2023 |
Long-term debt |
$ |
12,005,296 |
|
$ |
12,314,147 |
Current portion of long-term
debt |
|
1,744,221 |
|
|
1,744,778 |
Total Debt |
|
13,749,517 |
|
|
14,058,925 |
Less: Cash and cash
equivalents |
|
559,814 |
|
|
402,415 |
Net Debt |
$ |
13,189,703 |
|
$ |
13,656,510 |
|
|
|
|
|
|
Adjusted EBITDA |
$ |
2,090,479 |
|
|
1,860,731 |
|
|
|
|
|
|
Net Leverage |
|
6.3x |
|
|
7.3x |
|
|
|
|
|
|
Grafico Azioni Norwegian Cruise Line (NYSE:NCLH)
Storico
Da Mag 2024 a Giu 2024
Grafico Azioni Norwegian Cruise Line (NYSE:NCLH)
Storico
Da Giu 2023 a Giu 2024