Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH) (together with NCL
Corporation Ltd., “Norwegian Cruise Line Holdings”, “Norwegian”,
“NCLH” or the “Company”) today reported financial results for the
third quarter ended September 30, 2023 and provided guidance for
the fourth quarter and full year 2023.
Third Quarter 2023
Highlights:
- Company met or exceeded guidance
for all key metrics in the third quarter.
- Generated total revenue of $2.5
billion, a record for the Company and up 33% compared to the same
period in 2019, and GAAP net income of $345.9 million, or EPS of
$0.71.
- Achieved Adjusted EBITDA of $752
million and Adjusted EPS of $0.76, exceeding guidance of $730
million and $0.70 respectively. Third quarter performance was
driven by solid revenue performance and continued focus on cost
reduction.
- Occupancy was 106% in the quarter,
in line with guidance, and total revenue per Passenger Cruise Day
increased approximately 16% both as reported and in constant
currency, compared to the same period in 2019.
- Ongoing margin enhancement
initiative continued to drive sequential improvement in operating
costs. Gross Cruise Costs per Capacity Day was approximately $311
in the quarter. Adjusted Net Cruise Costs excluding Fuel per
Capacity Day in constant currency was approximately $152, in line
with guidance and lower than the prior quarter of $156,
representing the third consecutive quarter of sequential operating
cost improvement since the initiative was implemented.
- Cumulative booked position for the
fourth quarter of 2023 continues to be at record levels and at
higher pricing. The Company also remains within its optimal booked
position on a 12-month forward basis and at higher pricing.
- Successfully completed refinancing
of Operating Credit Facility which extended debt maturity profile
and provided incremental liquidity. Liquidity at quarter end was
$2.2 billion and would have been $2.5 billion including the impact
of the October refinancing.
- Full year 2023 Adjusted EBITDA is
expected to be approximately $1.86 billion, within the previously
provided range despite the impact of global events including the
wildfires in Maui and the escalating conflict in Israel. Full year
2023 Adjusted EPS is expected to be $0.73, below prior guidance of
$0.80.
“We achieved strong
third quarter results, meeting or beating guidance on all key
metrics, driven not only by healthy demand from our target upmarket
consumer, but also as our ongoing margin enhancement initiative,
including relentless efforts to rightsize our cost base, continues
to bear fruit,” said Harry Sommer, president and chief executive
officer of Norwegian Cruise Line Holdings Ltd. “Looking ahead,
while we are prudently moderating short term expectations and
keeping a close eye on rapidly evolving global macroeconomic and
geopolitical events, we remain encouraged by our strong forward
booked position and robust pricing and are focused on sustaining
this momentum as we close out 2023.”
Sommer continued, “I
am confident that we are taking the right steps today to best
position us to deliver on our goals of rebuilding margins,
generating outsized returns on our disciplined capacity growth,
reducing leverage, and maintaining best-in-class product and
service offerings which we believe will drive value for all of our
stakeholders.”
Business,
Operations and Booking Environment Update
The Company continues to experience healthy
consumer demand with the cumulative booked position for the fourth
quarter of 2023 ahead of 2019 levels at continued higher pricing.
On a 12-month forward basis the Company also continues to be within
its optimal booked position and at higher pricing. Onboard revenue
generation remains robust with broad-based strength across all
revenue streams. As of September 30, 2023, the Company’s advance
ticket sales balance, including the long-term portion, was $3.1
billion, approximately 59% higher than the third quarter of
2019.
During the third quarter and into the fourth
quarter, the Company experienced operational impacts from global
events including the wildfires in Maui and the escalating conflict
in Israel.
Pride of America, which offers year-round
inter-island Hawaii itineraries, modified certain itineraries in
August to avoid stressing local resources in Maui. Beginning in
early September, with the guidance and encouragement of the Hawaii
Governor and Hawaii Tourism Authority, the Company resumed
scheduled weekly calls to Kahului, Maui. However, following the
wildfires the Company experienced a temporary slowdown in close-in
bookings for sailings in Hawaii, primarily concentrated in the
fourth quarter of 2023. Demand has improved in recent weeks and is
now approaching normalized levels. In addition to Pride of America,
the Company also had one additional ship operating in the region,
Norwegian Spirit, bringing total capacity with calls to Hawaii to
approximately 6% for the fourth quarter of 2023.
In addition, as a result of the escalation of
the conflict in Israel, the Company has cancelled and redirected
all calls to Israel and certain calls to the surrounding region for
the remainder of 2023. The Company is also in the process of
cancelling all calls to Israel in 2024 as well, and will continue
to closely monitor and evaluate future sailings and adjust as
needed. Prior to the conflict, approximately 7% of capacity in the
fourth quarter of 2023 and 4% of capacity for the full year 2024
visited the Middle East1.
Occupancy averaged
106.1% for the third quarter of 2023, in line with guidance and
reflective of the Company’s strategic shift to longer, more
immersive itineraries. Full year 2023 Occupancy is expected to
average 102.6%, which is slightly lower than prior guidance due to
temporary disruptions impacting the fourth quarter.
Pricing growth in the
third quarter was also strong on 20% capacity growth compared to
2019. Total revenue was up 33% in the third quarter versus 2019
with total revenue per Passenger Cruise Day up approximately 16% as
reported and in constant currency. Gross margin per Capacity Day
was approximately $148 in the quarter. Net Yield growth of
approximately 3.1% versus 2019 on a constant currency basis was in
line with guidance.
Looking ahead, the
Company expects fourth quarter Net Per Diem and Net Yield growth to
be strong at approximately 15.00% to 16.00% and 7.75% to 8.75% on a
constant currency basis and compared to 2019, respectively. This is
below previous expectations due to the aforementioned external
headwinds, as well as lower than expected close-in demand for
certain longer, exotic itineraries on Norwegian Cruise Line (“NCL”)
in late season Eastern Mediterranean and certain parts of Asia. As
NCL has strategically shifted to its new longer, more immersive
deployment mix, the booking curves, sourcing and marketing plans
for certain itineraries continue to be optimized. While this caused
a temporary disconnect versus initial expectations in the fourth
quarter of 2023, plans have now been recalibrated resulting in a
significantly better booked position for the same fourth quarter
period in 2024, compared to same time last year for 2023. As a
result, the Company’s full year 2023 Net Per Diem and Net Yield
growth are expected to be 9.25% to 9.75% and 4.25% to 4.75% on a
constant currency basis compared to 2019, versus previous guidance
of 9.0% to 10.5% and 5.0% to 6.5%.
The Company once again
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 in
constant currency was approximately $311 in the quarter, compared
to $315 last quarter. Adjusted Net Cruise Costs excluding Fuel per
Capacity Day in constant currency in the third quarter of 2023 was
approximately $152, an improvement versus the second quarter of
$156 and in line with guidance, representing the third consecutive
quarter since this initiative began of sequential improvement in
this key metric. As expected, in addition to core cost savings
realized in the quarter, the third quarter also included certain
one-time cost benefits that are not expected to reoccur.
Full year 2023
Adjusted Net Cruise Costs excluding Fuel per Capacity Day is now
expected to be approximately $155 on a constant currency basis, an
improvement versus previous guidance of $156. The Company continues
to prioritize identifying and evaluating a variety of initiatives
to improve its cost structure and margin profile, while preserving
its brand equity and optimal guest satisfaction levels.
__________________1
Middle East includes Bahrain, Cyprus, Egypt, Israel, Jordan, Oman,
Qatar, Saudi Arabia, and the United Arab Emirates.
Liquidity and
Financial Position
The Company is
committed to prioritizing efforts to optimize its balance sheet and
reduce leverage. As of September 30, 2023, the Company had total
debt of $13.9 billion, total Net Debt of $13.2 billion and
continues to expect improvement in its Net Leverage. The Company
repaid approximately $130 million and $1.5 billion of debt in the
third quarter and first nine months of 2023, respectively2.
In October, the
Operating Credit Facility refinancing was successfully completed,
extending the Company’s debt maturity profile and providing
incremental liquidity. The Revolving Loan Facility was upsized from
$875 million to $1.2 billion with a 3-year term maturing in October
20263. In addition, in October the Company issued $790 million
aggregate principal amount of 8.125% senior secured notes due 2029.
The net proceeds, together with cash on hand, were used to fully
repay approximately $800 million of term loans maturing in January
2025 under the Operating Credit Facility.
At quarter-end,
liquidity was $2.2 billion, or approximately $2.5 billion adjusting
for the October refinancing. This consists of approximately $680
million of cash and cash equivalents, $1.2 billion of availability
under its Revolving Loan Facility and a $650 million undrawn
backstop commitment.
“Last month we
successfully completed the refinancing of our Operating Credit
Facility, extending our debt maturity profile and further improving
our liquidity position,” said Mark A. Kempa, executive vice
president and chief financial officer of Norwegian Cruise Line
Holdings Ltd. “We were also pleased that the transaction was not
only oversubscribed by multiples, but also generated significant
interest from new investors, reflecting confidence in our Company
and trajectory.”
Kempa continued, “We
continue to believe that our strong liquidity position, coupled
with our ongoing cash generation and attractive growth profile,
provide a path to meet our near-term liquidity needs, including
scheduled debt amortization payments and capital expenditures, and
significantly reduce leverage and de-risk our balance sheet over
time.”
__________________
2 Does not match
Statement of Cash Flows as this reflects net Revolving Loan
Facility activity and excludes the Term Loan A Facility repayment
of approximately $600 million in Q1 2023 which was refinanced with
a new notes issuance.3 Subject to a springing maturity if certain
conditions are not met.
Third Quarter
2023 Results
GAAP net income was $345.9 million or EPS of
$0.71 compared to net loss of $(295.4) million or EPS of $(0.70) in
the prior year. The Company reported Adjusted Net Income of $388
million or Adjusted EPS of $0.76 in the third quarter of 2023. This
compares to Adjusted Net Loss and Adjusted EPS of $(268.3) million
and $(0.64), respectively, in the third quarter of 2022. Adjusted
EBITDA in the third quarter was approximately $752 million, better
than guidance driven primarily by solid revenue performance and
lower Adjusted Net Cruise Costs.
Gross Cruise Costs per Capacity Day was
approximately $311 in the quarter. Adjusted Net Cruise Costs
excluding Fuel per Capacity Day in constant currency was
approximately $152, reflecting a decrease compared to the second
quarter of 2023 as benefits from the Company’s ongoing margin
enhancement initiative continue to be realized.
The Company reported fuel expense of $171
million in the quarter. Fuel price per metric ton, net of hedges,
decreased to $727 from $830 in 2022. Fuel consumption of 235,000
metric tons was approximately 2% lower than projected reflecting an
increased focus on fuel efficiency.
Interest expense, net was $181.2 million in 2023
compared to $152.3 million in 2022. The increase in interest
expense is primarily the result of higher interest rates.
Other income (expense), net was income of $12.1
million in 2023 compared to income of $31.5 million in 2022. In
2023, the income primarily related to net gains and losses on
foreign currency remeasurements.
Outlook and Guidance
In addition to
announcing the results for the third quarter of 2023, the Company
also provided guidance for the fourth quarter and full year 2023,
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
2023 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.
|
2023 Guidance |
|
Fourth Quarter 2023 |
Full Year 20231 |
|
As Reported |
ConstantCurrency |
As Reported |
ConstantCurrency |
Net Per Diem vs. 2019 |
14.50% to 15.50% |
15.00% to 16.00% |
8.75% to 9.25% |
9.25% to 9.75% |
Net Yield vs.
2019 |
7.25% to 8.25% |
7.75% to 8.75% |
3.75% to 4.25% |
4.25% to 4.75% |
Adjusted Net
Cruise CostExcluding Fuel per Capacity Day |
Approx. $151 |
Approx. $154 |
Approx. $155 |
Capacity Days |
Approx. 5.9 million |
Approx. 22.7 million |
Occupancy |
Approx. 98.0% |
Approx. 102.6% |
Adjusted
EBITDA |
Approx. $360 million |
Approx. $1.86 billion |
Adjusted EPS |
Approx. $(0.15) |
Approx. $0.73 |
Diluted
Weighted-Average Shares Outstanding2 |
Approx. 425 million3 |
Approx. 427 million3 |
Depreciation and
Amortization |
Approx. $215 million |
Approx. $810 million |
Adjusted Interest
Expense, net4 |
Approx. $200 million |
Approx. $730 million |
Effect of a 1%
change in Net Yield on Adjusted EBITDA / Adjusted EPS |
Approx. $14 millionApprox. $0.03 |
Effect of a $1
change in Adjusted Net Cruise Cost Excluding Fuel per Capacity Day
on Adjusted EBITDA / Adjusted EPS |
Approx. $6 millionApprox. $0.01 |
(1) Sensitivities for Adjusted EBITDA and Adjusted
EPS are for the remainder of 2023.(2) Calculated
using the “if-converted” method for exchangeable notes as
consistent with the FASB accounting standards.
(3) Q4 2023 and FY 2023 assumes all four of the
Company’s exchangeable notes are anti-dilutive and therefore are
not included in diluted weighted-average shares outstanding.
(4) Based on the Company's September 30, 2023
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 $16 million excluding the
effects of capitalization of interest. |
|
The following reflects the foreign currency
exchange rates the Company used in its fourth quarter 2023
guidance.
|
Current Guidance |
Euro |
$1.06 |
British pound |
$1.22 |
Australian Dollar |
$0.64 |
Canadian Dollar |
$0.74 |
|
|
Fuel
The following reflects the Company’s
expectations regarding fuel consumption and pricing, along with
accompanying sensitivities.
|
|
Fourth Quarter 2023 |
Full Year 2023 |
Fuel consumption in metric
tons1 |
|
260,000 |
975,000 |
Fuel price per metric ton, net
of hedges2 |
|
$718 |
$735 |
Effect on Adjusted EPS of a
10% change in fuel prices, net of hedges |
|
$0.02 |
$0.023 |
|
|
|
|
(1) Fuel consumption for the full year 2023 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 10/25/23.(3) For the
remainder of 2023.
The Company currently has hedged approximately
45%, 36% and 9% of its total projected metric tons of fuel
consumption for the remainder of 2023, 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”).
|
|
Remainder of 2023 |
|
2024 |
|
2025 |
% of HFO Consumption
Hedged1 |
|
25% |
|
20% |
|
6% |
Blended HFO Hedge Price /
Metric Ton |
|
$571 |
|
$392 |
|
$403 |
% of MGO Consumption
Hedged |
|
66% |
|
50% |
|
10% |
Blended
MGO Hedge Price / Metric Ton |
|
$685 |
|
$741 |
|
$755 |
Total % of Consumption Hedged |
|
45% |
|
36% |
|
9% |
|
|
|
|
|
|
|
(1) Hedged derivatives include accounting
hedges as well as economic hedges.
Capital Expenditures
Non-newbuild capital expenditures for the third
quarter of 2023 were $70 million. Anticipated non-newbuild capital
expenditures for full year 2023 are expected to be approximately
$400 million including approximately $135 million in the fourth
quarter.
Newbuild-related capital expenditures, net of
export credit financing, are expected to be approximately $0.5
billion, $0.2 billion and $0.5 billion for the full years ending
December 31, 2023, 2024 and 2025, respectively. Net
newbuild-related capital expenditures for the third quarter of 2023
were approximately $235 million including the delivery of Norwegian
Viva in August and are expected to be approximately $85 million for
the fourth quarter of 2023 including the delivery of Regent Seven
Seas Grandeur in November.
Company Updates and Other Business
Highlights:
Environmental, Social and Governance
(“ESG”)
- Partnered with Global Maritime
Forum, a global non-profit organization committed to shaping the
future of global seaborne trade to increase sustainable long-term
economic development and human wellbeing, and joined its flagship
initiative, the Getting to Zero Coalition. The new partnership
closely aligns with the Company’s efforts to drive a positive
impact on society and the environment through its global
sustainability program, Sail & Sustain, including its
commitment to pursue net zero greenhouse gas emissions by 2050.
Learn more here.
- Announced appointment of José E.
Cil, former Chief Executive Officer of Restaurant Brands
International Inc., to its Board of Directors as a new independent
director, effective October 6, 2023, and the resignation of Adam
Aron, effective October 19, 2023. The Board currently has eight
members, seven of whom are independent. Mr. Cil will serve as a
member of the Company’s Audit Committee. Learn more here.
- Donated $50,000 to Maui United Way
to support local relief efforts after the devastating wildfires in
Hawaii. In addition, alongside various partners collected and
donated over $150,000 in supplies such as food, clothing, and
mattresses to the Hawai’i Community Foundation. Learn more
here.
Fleet and Brand Updates
- Norwegian Cruise Line took delivery
of Norwegian Viva, the highly anticipated second ship of the Prima
Class, and welcomed its first guests as it embarked on its maiden
voyage from Venice (Trieste), Italy. Learn more here and here.
- Norwegian Cruise Line ranked as the
top cruise line for Mega ships (4,000+ passengers) this year in the
Condé Nast Traveler’s 2023 Readers’ Choice Awards. Learn more
here.
- Oceania Cruises revealed the
Inaugural Season sailings for Allura, its newest ship, due to join
the fleet in 2025. The 26 Inaugural Season sailings span more than
92 destinations on various seven- to 34-day voyages and will open
for sale on September 13, 2023. Learn more here.
- Regent Seven Seas Cruises announced
the debut of four captivating entertainment shows aboard its newest
ship, Seven Seas Grandeur™ launching in November 2023. In addition,
the line announced it is setting a new standard for luxurious fine
dining at sea having created over 130 new dishes and enhanced
recipes of guest favorites which will be featured on Seven Seas
Grandeur. Learn more here and here.
- Norwegian Cruise Line announced it
will open for sale for the first time ever three new solo stateroom
categories, including Solo Inside, Solo Oceanview and Solo Balcony
for future sailings starting Jan. 2, 2024. Learn more here.
Other Highlights
- Norwegian was named by Forbes to
the 2023 list of World’s Best Employers. The rankings were
determined by a survey of more than 170,000 employees in over 50
countries who work for multinational companies and
institutions.
Conference Call
The Company has scheduled a conference call for
Wednesday, November 1, 2023 at 10:00 a.m. Eastern Time to discuss
third quarter 2023 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 31 ships and more than 65,000 berths, NCLH offers
itineraries to approximately 700 destinations worldwide. NCLH has
six additional ships scheduled for delivery across its three
brands, which will add over 16,500 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.
Operating Credit Facility. As of September 30,
2023, consisted of the Revolving Loan Facility and the senior
secured term loan A facility having an outstanding principal amount
of $0.8 billion. The term loan A facility was fully repaid in
October 2023.
Passenger Cruise Days. The number of passengers
carried for the period, multiplied by the number of days in their
respective cruises.
Revolving Loan Facility. $875 million senior
secured revolving credit facility as of September 30, 2023, which
was increased to $1.2 billion in October 2023.
Term Loan A Facility. The senior secured term
loan A facility having an outstanding principal amount of
approximately $0.8 billion as of September 30, 2023. The Term Loan
A Facility was fully repaid in October 2023.
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, those
regarding our business strategy, financial position, results of
operations, plans, prospects, actions taken or strategies being
considered with respect to our liquidity position, valuation and
appraisals of our assets and objectives of management for future
operations (including those regarding expected fleet additions, our
expectations regarding the impact of macroeconomic conditions and
recent global events, our expectations regarding cruise voyage
occupancy, operational position, demand for voyages, plans or goals
for our sustainability program and decarbonization efforts, our
expectations for future cash flows and profitability, financing
opportunities and extensions, and efforts to reduce operating
expenses and capital expenditures) are 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; the spread of epidemics, pandemics and viral outbreaks,
including the COVID-19 pandemic, and their effect on the ability or
desire of people to travel (including on cruises), which has
adversely impacted and may continue to adversely impact our
results, operations, outlook, plans, goals, growth, reputation,
cash flows, liquidity, demand for voyages and share price;
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 as a result
of the impact of the COVID-19 pandemic or otherwise; 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; adverse
incidents involving cruise ships; breaches in data security or
other disturbances to our information technology 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
InvestorRelations@nclcorp.com(305) 468-2339
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NORWEGIAN
CRUISE LINE HOLDINGS LTD. |
CONSOLIDATED
STATEMENTS OF OPERATIONS |
(Unaudited) |
(in
thousands, except share and per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Nine Months
Ended |
|
|
|
|
|
|
|
September 30, |
|
September 30, |
|
|
|
|
|
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
|
|
|
|
|
|
|
|
Passenger ticket |
$ |
1,733,594 |
|
|
$ |
1,105,908 |
|
|
$ |
4,420,909 |
|
|
$ |
2,242,255 |
|
|
Onboard and other |
|
802,443 |
|
|
|
509,602 |
|
|
|
2,142,559 |
|
|
|
1,082,376 |
|
|
|
|
|
Total revenue |
|
2,536,037 |
|
|
|
1,615,510 |
|
|
|
6,563,468 |
|
|
|
3,324,631 |
|
Cruise operating expense |
|
|
|
|
|
|
|
|
Commissions, transportation and other |
|
546,026 |
|
|
|
352,798 |
|
|
|
1,462,565 |
|
|
|
696,946 |
|
|
Onboard and other |
|
188,694 |
|
|
|
126,740 |
|
|
|
470,271 |
|
|
|
255,445 |
|
|
Payroll and related |
|
323,862 |
|
|
|
287,390 |
|
|
|
936,237 |
|
|
|
790,697 |
|
|
Fuel |
|
|
|
|
170,893 |
|
|
|
186,984 |
|
|
|
530,003 |
|
|
|
503,682 |
|
|
Food |
|
|
|
87,839 |
|
|
|
76,810 |
|
|
|
271,575 |
|
|
|
177,483 |
|
|
Other |
|
|
|
165,432 |
|
|
|
208,176 |
|
|
|
476,123 |
|
|
|
623,374 |
|
|
|
|
|
Total cruise operating expense |
|
1,482,746 |
|
|
|
1,238,898 |
|
|
|
4,146,774 |
|
|
|
3,047,627 |
|
Other operating expense |
|
|
|
|
|
|
|
|
Marketing, general and administrative |
|
325,365 |
|
|
|
375,291 |
|
|
|
1,013,600 |
|
|
|
1,000,578 |
|
|
Depreciation and amortization |
|
204,608 |
|
|
|
186,551 |
|
|
|
596,513 |
|
|
|
547,214 |
|
|
|
|
|
Total other operating expense |
|
529,973 |
|
|
|
561,842 |
|
|
|
1,610,113 |
|
|
|
1,547,792 |
|
|
|
|
|
|
Operating income (loss) |
|
523,318 |
|
|
|
(185,230 |
) |
|
|
806,581 |
|
|
|
(1,270,788 |
) |
Non-operating income (expense) |
|
|
|
|
|
|
|
|
Interest expense, net |
|
(181,201 |
) |
|
|
(152,330 |
) |
|
|
(530,150 |
) |
|
|
(624,392 |
) |
|
Other income (expense), net |
|
12,060 |
|
|
|
31,461 |
|
|
|
(4,938 |
) |
|
|
100,572 |
|
|
|
|
|
Total non-operating income (expense) |
|
(169,141 |
) |
|
|
(120,869 |
) |
|
|
(535,088 |
) |
|
|
(523,820 |
) |
Net income (loss) before income taxes |
|
354,177 |
|
|
|
(306,099 |
) |
|
|
271,493 |
|
|
|
(1,794,608 |
) |
Income tax benefit (expense) |
|
(8,309 |
) |
|
|
10,705 |
|
|
|
1,170 |
|
|
|
7,179 |
|
Net income (loss) |
$ |
345,868 |
|
|
$ |
(295,394 |
) |
|
$ |
272,663 |
|
|
$ |
(1,787,429 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares outstanding |
|
|
|
|
|
|
|
|
Basic |
|
|
|
425,398,415 |
|
|
|
420,798,538 |
|
|
|
424,087,517 |
|
|
|
419,224,710 |
|
|
Diluted |
|
|
511,585,445 |
|
|
|
420,798,538 |
|
|
|
460,819,375 |
|
|
|
419,224,710 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per share |
|
|
|
|
|
|
|
|
Basic |
|
|
$ |
0.81 |
|
|
$ |
(0.70 |
) |
|
$ |
0.64 |
|
|
$ |
(4.26 |
) |
|
Diluted |
|
$ |
0.71 |
|
|
$ |
(0.70 |
) |
|
$ |
0.62 |
|
|
$ |
(4.26 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NORWEGIAN CRUISE LINE HOLDINGS LTD. |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(LOSS) |
(Unaudited) |
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
|
September 30, |
|
September 30, |
|
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
345,868 |
|
|
$ |
(295,394 |
) |
|
$ |
272,663 |
|
|
$ |
(1,787,429 |
) |
Other comprehensive income (loss): |
|
|
|
|
|
|
|
|
Shipboard Retirement Plan |
|
|
63 |
|
|
|
95 |
|
|
|
191 |
|
|
|
2,665 |
|
Cash flow hedges: |
|
|
|
|
|
|
|
|
|
Net unrealized gain (loss) |
|
|
57,885 |
|
|
|
(195,543 |
) |
|
|
34,833 |
|
|
|
(246,742 |
) |
|
Amount realized and reclassified into earnings |
|
|
(6,563 |
) |
|
|
(31,762 |
) |
|
|
(13,890 |
) |
|
|
(75,339 |
) |
|
Total other comprehensive income (loss) |
|
|
51,385 |
|
|
|
(227,210 |
) |
|
|
21,134 |
|
|
|
(319,416 |
) |
Total comprehensive income (loss) |
|
$ |
397,253 |
|
|
$ |
(522,604 |
) |
|
$ |
293,797 |
|
|
$ |
(2,106,845 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NORWEGIAN
CRUISE LINE HOLDINGS LTD. |
CONSOLIDATED
BALANCE SHEETS |
(Unaudited) |
(in
thousands, except share data) |
|
|
September
30, |
|
|
December
31, |
|
|
|
2023 |
|
|
|
|
2022 |
|
Assets |
|
|
|
|
|
Current
assets: |
|
|
|
|
|
Cash and cash equivalents |
|
$ |
681,558 |
|
|
$ |
|
946,987 |
|
Accounts receivable, net |
|
|
239,416 |
|
|
|
|
326,272 |
|
Inventories |
|
|
166,063 |
|
|
|
|
148,717 |
|
Prepaid expenses and other assets |
|
|
524,259 |
|
|
|
|
450,893 |
|
Total current assets |
|
|
1,611,296 |
|
|
|
|
1,872,869 |
|
Property and
equipment, net |
|
|
15,974,272 |
|
|
|
|
14,516,366 |
|
Goodwill |
|
|
98,134 |
|
|
|
|
98,134 |
|
Trade
names |
|
|
500,525 |
|
|
|
|
500,525 |
|
Other
long-term assets |
|
|
1,067,597 |
|
|
|
|
1,569,800 |
|
Total assets |
|
$ |
19,251,824 |
|
|
|
$ |
18,557,694 |
|
Liabilities and shareholders' equity |
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
Current portion of long-term debt |
|
$ |
1,240,088 |
|
|
|
$ |
991,128 |
|
Accounts payable |
|
|
158,414 |
|
|
|
|
228,742 |
|
Accrued expenses and other liabilities |
|
|
1,038,578 |
|
|
|
|
1,318,460 |
|
Advance ticket sales |
|
|
2,965,280 |
|
|
|
|
2,516,521 |
|
Total current liabilities |
|
|
5,402,360 |
|
|
|
|
5,054,851 |
|
Long-term
debt |
|
|
12,634,609 |
|
|
|
|
12,630,402 |
|
Other
long-term liabilities |
|
|
776,167 |
|
|
|
|
803,850 |
|
Total liabilities |
|
|
18,813,136 |
|
|
|
|
18,489,103 |
|
Commitments
and contingencies |
|
|
|
|
|
Shareholders' equity: |
|
|
|
|
|
Ordinary shares, $0.001 par value; 980,000,000 shares authorized;
and 425,424,934 shares issued and outstanding at September
30, 2023 and 421,413,565 shares issued and outstanding at
December 31, 2022 |
|
|
425 |
|
|
|
|
421 |
|
Additional paid-in capital |
|
|
7,687,860 |
|
|
|
|
7,611,564 |
|
Accumulated other comprehensive income (loss) |
|
|
(455,945 |
) |
|
|
|
(477,079 |
) |
Accumulated deficit |
|
|
(6,793,652 |
) |
|
|
|
(7,066,315 |
) |
Total shareholders' equity |
|
|
438,688 |
|
|
|
|
68,591 |
|
Total liabilities and shareholders' equity |
|
$ |
19,251,824 |
|
|
|
$ |
18,557,694 |
|
|
|
|
|
|
|
NORWEGIAN
CRUISE LINE HOLDINGS LTD. |
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS |
|
(Unaudited) |
|
(in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended |
|
|
|
|
|
|
|
|
September 30, |
|
|
|
|
|
|
|
|
2023 |
|
2022 |
|
Cash flows from operating activities |
|
|
|
|
|
Net income (loss) |
|
$ |
272,663 |
|
|
$ |
(1,787,429 |
) |
|
Adjustments to
reconcile net income (loss) to net cash provided by (used in)
operating activities: |
|
|
|
|
Depreciation and amortization expense |
|
|
649,958 |
|
|
|
593,423 |
|
|
|
(Gain) loss on derivatives |
|
|
9,338 |
|
|
|
(151 |
) |
|
|
Loss on extinguishment of debt |
|
|
2,801 |
|
|
|
188,433 |
|
|
|
Provision for bad debts and inventory obsolescence |
|
|
3,640 |
|
|
|
5,438 |
|
|
|
Gain on involuntary conversion of assets |
|
|
(4,583 |
) |
|
|
(1,880 |
) |
|
|
Share-based compensation expense |
|
|
96,254 |
|
|
|
88,923 |
|
|
|
Net foreign currency adjustments on euro-denominated debt |
|
|
(2,027 |
) |
|
|
(17,672 |
) |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
Accounts receivable, net |
|
|
80,064 |
|
|
|
765,692 |
|
|
|
Inventories |
|
|
(18,120 |
) |
|
|
(38,388 |
) |
|
|
Prepaid expenses and other assets |
|
|
437,465 |
|
|
|
(555,561 |
) |
|
|
Accounts payable |
|
|
(60,971 |
) |
|
|
(97,802 |
) |
|
|
Accrued expenses and other liabilities |
|
|
(139,188 |
) |
|
|
116,947 |
|
|
|
Advance ticket sales |
|
|
419,420 |
|
|
|
713,447 |
|
|
|
|
|
|
|
Net cash provided by (used in) operating activities |
|
|
1,746,714 |
|
|
|
(26,580 |
) |
|
Cash flows from investing activities |
|
|
|
|
|
Additions to property and equipment, net |
|
|
(2,102,698 |
) |
|
|
(1,628,442 |
) |
|
Proceeds from maturities of short-term investments |
|
|
— |
|
|
|
240,000 |
|
|
Cash paid on settlement of derivatives |
|
|
(118,610 |
) |
|
|
(214,035 |
) |
|
Other |
|
|
|
|
14,678 |
|
|
|
10,991 |
|
|
|
|
|
|
|
Net cash
used in investing activities |
|
|
(2,206,630 |
) |
|
|
(1,591,486 |
) |
|
Cash flows from financing activities |
|
|
|
|
|
Repayments of long-term debt |
|
|
(2,629,681 |
) |
|
|
(1,465,439 |
) |
|
Proceeds from long-term debt |
|
|
2,989,183 |
|
|
|
3,003,003 |
|
|
Proceeds from employee related plans |
|
|
5,307 |
|
|
|
5,267 |
|
|
Net share settlement of restricted share units |
|
|
(25,271 |
) |
|
|
(20,212 |
) |
|
Early redemption premium |
|
|
— |
|
|
|
(172,012 |
) |
|
Deferred financing fees |
|
|
(145,051 |
) |
|
|
(52,474 |
) |
|
|
|
|
|
|
Net cash
provided by financing activities |
|
|
194,487 |
|
|
|
1,298,133 |
|
|
|
|
|
|
|
Net decrease
in cash and cash equivalents |
|
|
(265,429 |
) |
|
|
(319,933 |
) |
|
Cash and cash equivalents at beginning of the period |
|
|
946,987 |
|
|
|
1,506,647 |
|
|
Cash and cash equivalents at end of the period |
|
$ |
681,558 |
|
|
$ |
1,186,714 |
|
|
|
NORWEGIAN CRUISE LINE HOLDINGS LTD. |
NON-GAAP RECONCILING INFORMATION |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
The following
table sets forth selected statistical information: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
|
|
|
September 30, |
|
September 30, |
|
|
|
|
|
2023 |
|
2019 |
|
2023 |
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
Passengers carried |
|
|
|
|
740,658 |
|
|
726,921 |
|
|
2,067,653 |
|
|
2,054,908 |
|
Passenger Cruise Days |
|
|
|
|
6,176,403 |
|
|
5,387,662 |
|
|
17,455,259 |
|
|
15,377,185 |
|
Capacity Days |
|
|
|
|
5,820,448 |
|
|
4,854,292 |
|
|
16,749,283 |
|
|
14,198,092 |
|
Occupancy Percentage |
|
|
|
|
106.1 |
% |
|
111.0 |
% |
|
104.2 |
% |
|
108.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 Passenger Cruise Days and per
Passenger Cruise Day data): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 30, |
|
September 30, |
|
|
|
|
|
2023 |
|
|
|
|
|
|
2023 |
|
|
|
|
|
|
|
|
Constant Currency |
|
|
|
|
|
|
|
|
Constant Currency |
|
|
|
|
|
|
|
|
2023 |
|
|
compared to 2019 |
|
|
2019 |
|
|
|
2023 |
|
|
|
compared to 2019 |
|
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue |
$ |
2,536,037 |
|
$ |
2,540,630 |
|
$ |
1,913,851 |
|
|
$ |
6,563,468 |
|
|
$ |
6,591,620 |
|
|
$ |
4,981,758 |
|
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
Total cruise operating expense |
|
1,482,746 |
|
|
1,487,727 |
|
|
990,764 |
|
|
|
4,146,774 |
|
|
|
4,165,693 |
|
|
|
2,775,839 |
|
|
Ship depreciation |
|
190,549 |
|
|
190,549 |
|
|
141,811 |
|
|
|
555,617 |
|
|
|
555,617 |
|
|
|
437,773 |
|
|
Gross margin |
|
862,742 |
|
|
862,354 |
|
|
781,276 |
|
|
|
1,861,077 |
|
|
|
1,870,310 |
|
|
|
1,768,146 |
|
|
Ship depreciation |
|
190,549 |
|
|
190,549 |
|
|
141,811 |
|
|
|
555,617 |
|
|
|
555,617 |
|
|
|
437,773 |
|
|
Payroll and related |
|
323,862 |
|
|
323,893 |
|
|
235,833 |
|
|
|
936,237 |
|
|
|
936,752 |
|
|
|
688,325 |
|
|
Fuel |
|
170,893 |
|
|
170,953 |
|
|
98,943 |
|
|
|
530,003 |
|
|
|
530,116 |
|
|
|
297,727 |
|
|
Food |
|
87,839 |
|
|
88,385 |
|
|
56,913 |
|
|
|
271,575 |
|
|
|
272,975 |
|
|
|
166,305 |
|
|
Other |
|
165,432 |
|
|
168,768 |
|
|
145,211 |
|
|
|
476,123 |
|
|
|
486,963 |
|
|
|
456,187 |
|
|
Adjusted Gross Margin |
$ |
1,801,317 |
|
$ |
1,804,902 |
|
$ |
1,459,987 |
|
|
$ |
4,630,632 |
|
|
$ |
4,652,733 |
|
|
$ |
3,814,463 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Passenger Cruise Days |
|
6,176,403 |
- |
|
6,176,403 |
- |
|
5,387,662 |
|
|
|
17,455,259 |
|
- |
|
17,455,259 |
|
- |
|
15,377,185 |
|
|
Capacity Days |
|
5,820,448 |
|
|
5,820,448 |
|
|
4,854,292 |
|
|
|
16,749,283 |
|
|
|
16,749,283 |
|
|
|
14,198,092 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue per Passenger Cruise Day |
$ |
410.60 |
|
$ |
411.34 |
|
$ |
355.23 |
|
|
$ |
376.02 |
|
|
$ |
377.63 |
|
|
$ |
323.97 |
|
|
Gross margin per Passenger Cruise Day |
$ |
139.68 |
|
$ |
139.62 |
|
$ |
145.01 |
|
|
$ |
106.62 |
|
|
$ |
107.15 |
|
|
$ |
114.99 |
|
|
Net Per Diem |
$ |
291.64 |
|
$ |
292.23 |
|
$ |
270.99 |
|
|
$ |
265.29 |
|
|
$ |
266.55 |
|
|
$ |
248.06 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin per Capacity Day |
$ |
148.23 |
|
$ |
148.16 |
|
$ |
160.95 |
|
|
$ |
111.11 |
|
|
$ |
111.67 |
|
|
$ |
124.53 |
|
|
Net Yield |
$ |
309.48 |
|
$ |
310.10 |
|
$ |
300.76 |
|
|
$ |
276.47 |
|
|
$ |
277.79 |
|
|
$ |
268.66 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
Nine Months Ended |
|
|
September 30, |
|
September 30, |
|
|
|
|
2023 |
|
|
|
|
|
|
2023 |
|
|
|
|
|
|
|
Constant Currency |
|
|
|
|
|
|
|
Constant Currency |
|
|
|
|
|
|
|
2023 |
|
compared to 2019 |
|
|
2019 |
|
|
|
2023 |
|
|
compared to 2019 |
|
|
2019 |
|
|
Total cruise operating expense |
$ |
1,482,746 |
|
$ |
1,487,727 |
|
$ |
990,764 |
|
|
$ |
4,146,774 |
|
|
$ |
4,165,693 |
|
|
$ |
2,775,839 |
|
|
Marketing, general and |
|
|
|
|
|
|
|
|
|
|
|
|
administrative expense |
|
325,365 |
|
|
325,337 |
|
|
255,148 |
|
|
|
1,013,600 |
|
|
|
1,015,972 |
|
|
|
744,991 |
|
|
Gross Cruise Cost |
|
1,808,111 |
|
|
1,813,064 |
|
|
1,245,912 |
|
|
|
5,160,374 |
|
|
|
5,181,665 |
|
|
|
3,520,830 |
|
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
Commissions, transportation |
|
|
|
|
|
|
|
|
|
|
|
|
and other expense |
|
546,026 |
|
|
547,034 |
|
|
330,893 |
|
|
|
1,462,565 |
|
|
|
1,468,616 |
|
|
|
857,848 |
|
|
Onboard and other expense |
|
188,694 |
|
|
188,694 |
|
|
122,971 |
|
|
|
470,271 |
|
|
|
470,271 |
|
|
|
309,447 |
|
|
Net Cruise Cost |
|
1,073,391 |
|
|
1,077,336 |
|
|
792,048 |
|
|
|
3,227,538 |
|
|
|
3,242,778 |
|
|
|
2,353,535 |
|
|
Less: Fuel expense |
|
170,893 |
|
|
170,953 |
|
|
98,943 |
|
|
|
530,003 |
|
|
|
530,116 |
|
|
|
297,727 |
|
|
Net Cruise Cost Excluding Fuel |
|
902,498 |
|
|
906,383 |
|
|
693,105 |
|
|
|
2,697,535 |
|
|
|
2,712,662 |
|
|
|
2,055,808 |
|
|
Less Non-GAAP Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash deferred compensation (1) |
|
578 |
|
|
578 |
|
|
533 |
|
|
|
1,734 |
|
|
|
1,734 |
|
|
|
1,601 |
|
|
Non-cash share-based compensation (2) |
|
23,563 |
|
|
23,563 |
|
|
25,420 |
|
|
|
96,254 |
|
|
|
96,254 |
|
|
|
82,070 |
|
|
Redeployment of Norwegian Joy (3) |
|
- |
|
|
- |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
7,051 |
|
|
Adjusted Net Cruise Cost Excluding Fuel |
$ |
878,357 |
|
$ |
882,242 |
|
$ |
667,152 |
|
|
$ |
2,599,547 |
|
|
$ |
2,614,674 |
|
|
$ |
1,965,086 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capacity Days |
|
5,820,448 |
|
|
5,820,448 |
|
|
4,854,292 |
|
|
|
16,749,283 |
|
|
|
16,749,283 |
|
|
|
14,198,092 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Cruise Cost per Capacity Day |
$ |
310.65 |
|
$ |
311.50 |
|
$ |
256.66 |
|
|
$ |
308.10 |
|
|
$ |
309.37 |
|
|
$ |
247.98 |
|
|
Net Cruise Cost per Capacity Day |
$ |
184.42 |
|
$ |
185.10 |
|
$ |
163.16 |
|
|
$ |
192.70 |
|
|
$ |
193.61 |
|
|
$ |
165.76 |
|
|
Net Cruise Cost Excluding Fuel per Capacity Day |
$ |
155.06 |
|
$ |
155.72 |
|
$ |
142.78 |
|
|
$ |
161.05 |
|
|
$ |
161.96 |
|
|
$ |
144.79 |
|
|
Adjusted Net Cruise Cost Excluding Fuel per Capacity Day |
$ |
150.91 |
|
$ |
151.58 |
|
$ |
137.44 |
|
|
$ |
155.20 |
|
|
$ |
156.11 |
|
|
$ |
138.40 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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. |
|
(3) Expenses related to the redeployment of Norwegian Joy from Asia
to the U.S. and the closing of the Shanghai office, which are
included in other cruise operating expense and marketing, general
and administrative expense. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
Three Months Ended |
|
|
June 30, |
|
March 31, |
|
|
|
|
2023 |
|
|
|
|
|
2023 |
|
|
|
|
|
|
Constant Currency |
|
|
|
|
|
|
Constant Currency |
|
|
|
|
|
2023 |
|
compared to 2019 |
|
2019 |
|
2023 |
|
compared to 2019 |
|
2019 |
|
Total cruise operating expense |
$ |
1,383,610 |
|
$ |
1,388,105 |
|
$ |
958,424 |
|
$ |
1,280,418 |
|
$ |
1,289,860 |
|
$ |
826,651 |
|
Marketing, general and |
|
|
|
|
|
|
|
|
|
|
|
|
administrative expense |
|
352,222 |
|
|
352,808 |
|
|
240,901 |
|
|
336,013 |
|
|
337,826 |
|
|
248,942 |
|
Gross Cruise Cost |
|
1,735,832 |
|
|
1,740,913 |
|
|
1,199,325 |
|
|
1,616,431 |
|
|
1,627,686 |
|
|
1,075,593 |
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
Commissions, transportation |
|
|
|
|
|
|
|
|
|
|
|
|
and other expense |
|
506,855 |
|
|
508,877 |
|
|
297,691 |
|
|
409,684 |
|
|
412,705 |
|
|
229,264 |
|
Onboard and other expense |
|
161,880 |
|
|
161,880 |
|
|
107,063 |
|
|
119,697 |
|
|
119,697 |
|
|
79,413 |
|
Net Cruise Cost |
|
1,067,097 |
|
|
1,070,156 |
|
|
794,571 |
|
|
1,087,050 |
|
|
1,095,284 |
|
|
766,916 |
|
Less: Fuel expense |
|
164,242 |
|
|
164,282 |
|
|
100,531 |
|
|
194,868 |
|
|
194,882 |
|
|
98,253 |
|
Net Cruise Cost Excluding Fuel |
|
902,855 |
|
|
905,874 |
|
|
694,040 |
|
|
892,182 |
|
|
900,402 |
|
|
668,663 |
|
Less Non-GAAP Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash deferred compensation (1) |
|
578 |
|
|
578 |
|
|
534 |
|
|
578 |
|
|
578 |
|
|
534 |
|
Non-cash share-based compensation (2) |
|
44,536 |
|
|
44,536 |
|
|
29,651 |
|
|
28,155 |
|
|
28,155 |
|
|
26,999 |
|
Redeployment of Norwegian Joy (3) |
|
- |
|
|
- |
|
|
2,035 |
|
|
- |
|
|
- |
|
|
5,016 |
|
Adjusted Net Cruise Cost Excluding Fuel |
$ |
857,741 |
|
$ |
860,760 |
|
$ |
661,820 |
|
$ |
863,449 |
|
$ |
871,669 |
|
$ |
636,114 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capacity Days |
|
5,513,288 |
|
|
5,513,288 |
|
|
4,626,871 |
|
|
5,415,547 |
|
|
5,415,547 |
|
|
4,716,929 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Cruise Cost per Capacity Day |
$ |
314.85 |
|
$ |
315.77 |
|
$ |
259.21 |
|
$ |
298.48 |
|
$ |
300.56 |
|
$ |
228.03 |
|
Net Cruise Cost per Capacity Day |
$ |
193.55 |
|
$ |
194.10 |
|
$ |
171.73 |
|
$ |
200.73 |
|
$ |
202.25 |
|
$ |
162.59 |
|
Net Cruise Cost Excluding Fuel per Capacity Day |
$ |
163.76 |
|
$ |
164.31 |
|
$ |
150.00 |
|
$ |
164.74 |
|
$ |
166.26 |
|
$ |
141.76 |
|
Adjusted Net Cruise Cost Excluding Fuel per Capacity Day |
$ |
155.58 |
|
$ |
156.12 |
|
$ |
143.04 |
|
$ |
159.44 |
|
$ |
160.96 |
|
$ |
134.86 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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. |
|
(3) Expenses related to the redeployment of Norwegian Joy from Asia
to the U.S. and the closing of the Shanghai office, which are
included in other cruise operating expense and marketing, general
and administrative 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 |
|
Nine Months Ended |
|
September 30, |
|
September 30, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
Net income (loss) |
$ |
345,868 |
|
|
$ |
(295,394 |
) |
|
$ |
272,663 |
|
|
$ |
(1,787,429 |
) |
Effect of dilutive securities - exchangeable notes |
|
17,510 |
|
|
|
- |
|
|
|
13,809 |
|
|
|
- |
|
Net income (loss) and assumed conversion of exchangeable notes |
|
363,378 |
|
|
|
(295,394 |
) |
|
|
286,472 |
|
|
|
(1,787,429 |
) |
Non-GAAP Adjustments: |
|
|
|
|
|
|
|
Non-cash deferred compensation (1) |
|
1,009 |
|
|
|
1,012 |
|
|
|
3,029 |
|
|
|
3,036 |
|
Non-cash share-based compensation (2) |
|
23,563 |
|
|
|
26,083 |
|
|
|
96,254 |
|
|
|
88,923 |
|
Extinguishment and modification of debt (3) |
|
- |
|
|
|
- |
|
|
|
3,153 |
|
|
|
188,433 |
|
Adjusted Net Income (Loss) |
$ |
387,950 |
|
|
$ |
(268,299 |
) |
|
$ |
388,908 |
|
|
$ |
(1,507,037 |
) |
Diluted weighted-average shares outstanding - Net income (loss) and
assumed conversion of exchangeable notes and Adjusted Net Income
(Loss) |
|
511,585,445 |
|
|
|
420,798,538 |
|
|
|
460,819,375 |
|
|
|
419,224,710 |
|
Diluted EPS |
$ |
0.71 |
|
|
$ |
(0.70 |
) |
|
$ |
0.62 |
|
|
$ |
(4.26 |
) |
Adjusted EPS |
$ |
0.76 |
|
|
$ |
(0.64 |
) |
|
$ |
0.84 |
|
|
$ |
(3.59 |
) |
|
|
|
|
|
|
|
|
(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 extinguishments 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 |
|
Nine Months Ended |
|
September 30, |
|
September 30, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
Net income (loss) |
$ |
345,868 |
|
|
$ |
(295,394 |
) |
|
$ |
272,663 |
|
|
$ |
(1,787,429 |
) |
Interest expense, net |
|
181,201 |
|
|
|
152,330 |
|
|
|
530,150 |
|
|
|
624,392 |
|
Income tax (benefit) expense |
|
8,309 |
|
|
|
(10,705 |
) |
|
|
(1,170 |
) |
|
|
(7,179 |
) |
Depreciation and amortization expense |
|
204,608 |
|
|
|
186,551 |
|
|
|
596,513 |
|
|
|
547,214 |
|
EBITDA |
|
739,986 |
|
|
|
32,782 |
|
|
|
1,398,156 |
|
|
|
(623,002 |
) |
|
|
|
|
|
|
|
|
Other (income) expense, net (1) |
|
(12,060 |
) |
|
|
(31,461 |
) |
|
|
4,938 |
|
|
|
(100,572 |
) |
Other Non-GAAP Adjustments: |
|
|
|
|
|
|
|
Non-cash deferred compensation (2) |
|
578 |
|
|
|
700 |
|
|
|
1,734 |
|
|
|
2,098 |
|
Non-cash share-based compensation (3) |
|
23,563 |
|
|
|
26,083 |
|
|
|
96,254 |
|
|
|
88,923 |
|
Adjusted EBITDA |
$ |
752,067 |
|
|
$ |
28,104 |
|
|
$ |
1,501,082 |
|
|
$ |
(632,553 |
) |
|
|
|
|
|
|
|
|
(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 was calculated as follows (in thousands): |
|
|
|
Three Months Ended |
|
|
September 30, |
|
2023 |
|
|
Long-term debt |
$ |
12,634,609 |
Current
portion of long-term debt |
|
1,240,088 |
Total Debt |
|
13,874,697 |
Less: Cash
and cash equivalents |
|
681,558 |
Net Debt |
$ |
13,193,139 |
|
|
Grafico Azioni Norwegian Cruise Line (NYSE:NCLH)
Storico
Da Apr 2024 a Mag 2024
Grafico Azioni Norwegian Cruise Line (NYSE:NCLH)
Storico
Da Mag 2023 a Mag 2024