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 fourth quarter and year ended December 31, 2023 and
provided guidance for the first quarter and full year 2024.
Full Year 2023 Highlights:
- Generated total revenue of $8.5
billion, a 32% increase compared to the same period in 2019, with
GAAP net income of $166.2 million, or EPS of $0.39 returning to
full year profitability for the first time since 2019.
- Achieved Adjusted EBITDA of $1.861
billion in line with guidance of $1.860 billion and Adjusted EPS of
$0.70, which is inclusive of a $0.07 foreign currency negative
impact. Full year performance was driven by solid revenue growth
and continued focus on cost reduction and efficiencies.1
- The Company’s ongoing margin
enhancement initiative drove improvement in operating costs. Gross
Cruise Costs per Capacity Day was approximately $301 for the year.
Adjusted Net Cruise Costs excluding Fuel per Capacity Day was
approximately $154, and 21% less than the same period in 2022. This
represents four quarters of continuous year-over-year improvement
on this metric.
- Occupancy was 102.9% for the year,
in line with guidance of 102.6%, and total revenue per Passenger
Cruise Day increased approximately 17%, or 18% in Constant
Currency, compared to the same period in 2019.
- Announced a revamped climate action
strategy including interim greenhouse gas intensity reduction
targets of 10% by 2026 and 25% by 2030 compared to a 2019 baseline
with intensity measured on a per Capacity Day basis.
- Successfully took delivery of three
ships, Oceania Cruises’ Vista, Norwegian’s Viva and Regent’s Seven
Seas Grandeur, the most deliveries in a single year in the
Company’s history.
________________________1 See “Terminology”, “Non-GAAP Financial
Measures” and “Outlook” below for additional information about
Adjusted EPS, Adjusted EBITDA and other non-GAAP financial
measures.
Recent Highlights
- Expected refinancing of our $650
million backstop commitment from a secured to unsecured commitment.
Additionally, as part of this refinancing, expected repayment of
our $250 million 9.75% senior secured notes due 2028, our highest
interest rate debt.2
- We have continued to see
exceptional demand for our Norwegian Cruise Line brand, with
bookings and pricing at higher levels than 2023 for all four
quarters of 2024. Oceania Cruises and Regent Seven Seas Cruises
also continue to see strong demand across all geographies with the
exception of redeployed itineraries due to cancellations in the
Middle East and Red Sea.
________________________2 Refinancing terms have been agreed to,
with effectiveness subject to approval by our Board of Directors
expected in early March.
2024 Outlook
- Entered the year at all-time high
booked position and pricing for 2024 voyages.
- Net Yield is expected to increase
approximately 5.5% as-reported and approximately 5.4% in Constant
Currency versus 2023.
- In 2024 Adjusted Net Cruise Costs
Excluding Fuel per Capacity Day is expected to be $159, increasing
3.4% in Constant Currency, which includes an approximately 325
basis points impact of increased Dry-dock days and related costs in
the year. Excluding this, Adjusted Net Cruise Cost Excluding Fuel
per Capacity Day would be essentially flat year-over-year.
- Adjusted EBITDA is expected to be
approximately $2.2 billion, Adjusted Net Income is expected to be
approximately $635 million, and Adjusted EPS is expected to be
approximately $1.23, an increase of 76% over 2023 results. This
Adjusted EPS takes into consideration ~516 million dilutive shares,
reflecting the expected accounting treatment of our exchangeable
notes.
“Norwegian Cruise Line Holding experienced a
momentous year of growth and achievement in 2023. We successfully
took delivery of three new ships, one for each of our brands,
representing the most deliveries in a single year in our Company’s
57-year history. This important milestone showcases our dedication
to innovation and commitment to providing exceptional vacation
experiences for our guests,” remarked Harry Sommer, president and
chief executive officer of Norwegian Cruise Line Holdings Ltd.
“Looking ahead, we are determined to capitalize
on our recent achievements and take advantage of the positive
momentum and strong demand for cruise which resulted in turning the
year at all-time highs in both our booked position and pricing. Our
team is looking forward to showcasing our world-class fleet,
delivering exceptional experiences, and surpassing the expectations
of the guests we will welcome on board in 2024 and beyond,”
continued Sommer.
Business, Operations and Booking Environment
Update
The Company continues to experience healthy
consumer demand and is at an all-time high booked position and
pricing reflective of some of the best booking weeks in the
Company’s history beginning with Black Friday and Cyber Monday.
Additionally, onboard revenue per Passenger Cruise Day remains
robust, up 20% in the quarter compared to 2019, with broad-based
strength across all revenue streams. The Company’s advance ticket
sales balance, including the long-term portion, ended 2023 at a
year-end record of $3.2 billion, approximately 56% higher than at
the end of 2019.
As a result of the ongoing conflict in Israel
and the Red Sea, the Company cancelled and redirected all calls to
Israel during the fourth quarter of 2023. As a result, Occupancy
was 99.2% for the fourth quarter of 2023, and full year Occupancy
was 102.9%, in line with guidance. Additionally, all calls to
Israel and the Red Sea have been cancelled and redirected for the
entirety of 2024. Prior to the conflict, approximately 7% of the
capacity in the fourth quarter of 2023 and 4% of capacity for the
full year 2024 expected to visit the Middle East3,
predominantly on our Oceania Cruises and Regent Seven Seas Cruises
brands. Prior to the recent cancellations, approximately 1% of 2024
capacity was expected to sail through the Red Sea.
Pricing growth in the fourth quarter was also
strong with total revenue per Passenger Cruise Day up approximately
21%, with capacity growth of 17% compared to 2019. Total revenue
was up approximately 34% in the fourth quarter versus 2019. Gross
margin per Capacity Day was approximately $79 in the quarter. Net
Yield growth was approximately 8.2%, or 8.6% versus 2019 on a
Constant Currency basis, in line with guidance.
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 was approximately $280 in the
fourth quarter, compared to $311 last quarter. Adjusted Net Cruise
Costs excluding Fuel per Capacity Day in the fourth quarter of 2023
was approximately $151, in line with guidance.
For the full year 2024, the Company expects Net
Yield growth to be strong at approximately 5.4% on a Constant
Currency basis compared to 2023. This growth is driven by
exceptional demand for Norwegian Cruise Line with Oceania Cruises
and Regent Seven Seas Cruises also experiencing strong demand
across all geographies with the exception of voyages redeployed due
to the conflicts in the Middle East and Red Sea. Full year Adjusted
Net Cruise Cost Excluding Fuel per Capacity Day is expected to be
approximately $159, increasing approximately 3.4% in Constant
Currency, which includes an approximately 325 basis points impact
of increased Dry-dock days and related costs in the year. Excluding
this impact, Adjusted Net Cruise Cost Excluding Fuel per Capacity
Day would be essentially flat year-over-year. Adjusted EBITDA is
expected to grow 18% to approximately $2.2 billion during 2023 and
Adjusted EPS is expected to grow 76% to approximately $1.23.
________________________3 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 December
31, 2023, the Company had total debt of $14.1 billion and total Net
Debt of $13.7 billion and continues to expect improvement in its
Net Leverage. The Company repaid $1.9 billion of debt in 2023,
which included the pay down in full of our $875 million Revolving
Loan Facility.
At year-end, liquidity was $2.3 billion. This
consists of approximately $402.4 million of cash and cash
equivalents, $1.2 billion of availability under our Revolving Loan
Facility and a $650 million undrawn backstop commitment. In March
2024 we expect to refinance our $650 million backstop commitment,
replacing the secured commitment with an unsecured commitment.
Additionally, as part of this refinancing, we expect to repay our
$250 million 9.75% senior secured notes due 2028, our highest
interest rate debt.
“Throughout the year, we successfully
implemented measures to rightsize our cost base. Notably, the
fourth quarter of 2023 marked our fourth consecutive quarter of
improved Adjusted Net Cruise Costs Excluding Fuel per Capacity Day,
this resulted in a substantial 21% reduction in 2023 compared to
2022,” said Mark A. Kempa, executive vice president and chief
financial officer of Norwegian Cruise Line Holdings Ltd.
Kempa continued, “additionally, we made
important advancements towards reducing leverage and de-risking our
balance sheet during 2023. We repaid $1.9 billion of debt during
the year, which included the pay down in full of our $875 million
Revolving Loan Facility, and we remain confident that our strong
liquidity position, ongoing cash generation and favorable growth
prospects enable us to meaningfully reduce leverage over the course
of 2024. We recently negotiated a refinancing of our $650 million
backstop commitment and in connection with that, expect to repay
our highest rate debt, the $250 million 9.75% senior secured notes
due 2028. This transaction, which is expected to close in early
March, will reduce interest expense and improve leverage while
releasing the related secured collateral, another important step
forward in improving our balance sheet.”
Full Year 2023 Results
GAAP net income was $166.2 million or EPS of
$0.39 compared to net loss of $(2.3) billion or EPS of $(5.41) in
the prior year. The Company reported Adjusted Net Income of
$298.0 million or Adjusted EPS of $0.70 in the year. This compares
to Adjusted Net Loss and Adjusted EPS of $(1.9) billion and
$(4.64), respectively, in the prior year. Adjusted EBITDA was
approximately $1.9 billion, in line with guidance driven primarily
by solid revenue performance and lower Adjusted Net Cruise Cost
Excluding Fuel.
Total revenue per Passenger Cruise Day increased
approximately 17%, or approximately 18% on a Constant Currency
basis compared to 2019. Gross margin per Capacity Day decreased
approximately 11% on a reported, or approximately 10% on a Constant
Currency basis, compared to 2019. Net Yield increased 4.6% on a
Constant Currency basis compared to 2019.
Gross Cruise Cost per Capacity Day was $301, an
approximately 6% decline from the prior year. Adjusted Net Cruise
Cost Excluding Fuel per Capacity Day was approximately $155 on a
Constant Currency basis, an approximately 21% decline from the
prior year.
Fourth Quarter 2023 Results
GAAP net loss was $(106.5) million or EPS of
$(0.25) compared to net loss of $(482.5) million or EPS of $(1.14)
in the prior year. The Company reported Adjusted Net Loss of
$(77.1) million or Adjusted EPS of $(0.18) in the fourth quarter of
2023. This compares to Adjusted Net Loss and Adjusted EPS of
$(439.7) million and $(1.04), respectively, in the fourth quarter
of 2022. Adjusted EBITDA in the fourth quarter was approximately
$359.6 million, in line with guidance driven primarily by solid
revenue performance and lower Adjusted Net Cruise Cost Excluding
Fuel.
Gross Cruise Costs per Capacity Day was
approximately $280 in the quarter. Adjusted Net Cruise Costs
excluding Fuel per Capacity Day was approximately $151, reflecting
an approximately 19% decline from the fourth quarter of 2022,
reflecting the benefits from the Company’s ongoing margin
enhancement initiative.
The Company reported fuel expense of $187
million in the quarter. Fuel price per metric ton, net of hedges,
decreased to $726 from $755 in 2022. Fuel consumption of 257,000
metric tons was in line with projections.
Interest expense, net was $197.4 million in 2023
compared to $177.1 million in 2022. The increase in interest
expense is primarily the result of higher debt outstanding and
higher interest rates.
Other income (expense), net was an expense of
$(35.3) million in 2023 compared to an expense of $(24.0) million
in 2022.
Outlook and Guidance
In addition to announcing the results for the
fourth quarter and full year 2023, the Company also provided
guidance for the first quarter and full year 2024, along with
accompanying sensitivities. The Company does not provide certain
estimated future results on a GAAP basis because the Company is
unable to predict, with reasonable certainty, the future movement
of foreign exchange rates or the future impact of certain gains and
charges. These items are uncertain and will depend on several
factors, including industry conditions, and could be material to
the Company’s results computed in accordance with GAAP. The Company
has not provided reconciliations between the Company’s 2024
guidance and the most directly comparable GAAP measures because it
would be too difficult to prepare a reliable U.S. GAAP quantitative
reconciliation without unreasonable effort.
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2024 Guidance |
|
First Quarter 2024 |
Full Year 2024 |
|
As Reported |
ConstantCurrency |
As Reported |
ConstantCurrency |
Net Yield |
~15.8%~ $276 |
~15.5%~ $276 |
~5.5%~$283 |
~5.4%~$282 |
Adjusted Net Cruise CostExcluding Fuel per Capacity Day1 |
~3.5%~$165 |
~3.2%~$165 |
~3.5%~$159 |
~3.4%~$159 |
Capacity Days |
~5.85 million |
~23.50 million |
Occupancy |
~104.8% |
~105.1% |
Adjusted EBITDA |
~$450 million |
~$2.2 billion |
Adjusted Net Income |
~ $50 million |
~ $635 million |
Adjusted EPS2 |
~$0.12 |
~$1.23 |
Diluted Weighted-Average Shares Outstanding3 |
~431 million |
~516 million |
Depreciation and Amortization |
~$225 million |
~$895 million |
Adjusted Interest Expense, net4 |
~$190 million |
~$730 million |
Effect of a 1% change in Net Yield onAdjusted EBITDA / Adjusted
EPS |
~$16 million~ $0.04 |
~ $66 million~ $0.13 |
Effect of a $1 change in Adjusted NetCruise Cost Excluding Fuel per
CapacityDay on Adjusted EBITDA / Adjusted EPS |
~$6 million~$0.01 |
~$24 million~$0.05 |
________________________(1) Q1 2024 includes an
approximate 350 basis point, or $6, 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 $159 in Q1 2024 as reported and
in Constant Currency. Full Year 2024 includes an approximate 325
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 431
million for the first quarter of 2024 and 516 million for full year
2024. Adjusted EPS for the full year 2024 assumes that all four of
the Company’s exchangeable notes are fully dilutive and therefore
excludes approximately $63 million of interest expense for 2024
associated with the Company’s exchangeable
notes.(3) Q1 2024 assumes all four of the
Company’s exchangeable notes are anti-dilutive and therefore are
not included in diluted weighted-average shares outstanding. Full
year 2024 assumes all four of the Company’s exchangeable notes are
dilutive and are included in the diluted weighted-average shares
outstanding.(4) Based on the Company’s December
31, 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 $7 million excluding the effects of capitalization of
interest.
The following reflects the foreign currency
exchange rates the Company used in its first quarter and full year
2024 guidance.
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Current Guidance |
Euro |
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$ |
1.08 |
British pound |
|
$ |
1.27 |
Australian Dollar |
|
$ |
0.66 |
Canadian Dollar |
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$ |
0.74 |
Fuel
The following reflects the Company’s
expectations regarding fuel consumption and pricing, along with
accompanying sensitivities.
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First Quarter 2024 |
|
Full Year 2024 |
|
Fuel consumption in metric
tons1 |
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270,000 |
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|
995,000 |
|
Fuel price per metric ton, net
of hedges2 |
|
$ |
740 |
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$ |
695 |
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Effect on Adjusted EPS of a
10% change in fuel prices, net of hedges |
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$ |
0.03 |
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$ |
0.06 |
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________________________(1) Fuel consumption
for the full year 2024 is expected to be split approximately
evenly between heavy fuel oil and marine gas
oil.(2) Fuel prices are based on forward curves as
of 2/19/2024.
The Company currently has hedged approximately
53% and 21% of its total projected metric tons of fuel consumption
for 2024 and 2025, respectively. The following table provides
amounts hedged and price per metric ton of heavy fuel oil (“HFO”)
and marine gas oil (“MGO”).
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2024 |
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2025 |
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% of HFO Consumption
Hedged1 |
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40 |
% |
|
21 |
% |
Blended HFO Hedge Price /
Metric Ton |
|
$ |
398 |
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$ |
402 |
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% of MGO Consumption
Hedged |
|
|
65 |
% |
|
21 |
% |
Blended MGO Hedge Price /
Metric Ton |
|
$ |
745 |
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$ |
738 |
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Total % of Consumption
Hedged |
|
|
53 |
% |
|
21 |
% |
________________________(1) Hedged derivatives
include accounting hedges as well as economic hedges.
Capital Expenditures
Non-newbuild capital expenditures for the fourth
quarter of 2023 were $102 million. Anticipated non-newbuild capital
expenditures for full year 2024 are expected to be
approximately $475 million including approximately $113 million in
the first quarter.
Newbuild-related capital expenditures, net of
export credit financing, are expected to be approximately $0.2
billion, $0.6 billion and $0.6 billion for the full years
ending December 31, 2024, 2025 and 2026, respectively. Net
newbuild-related capital expenditures for the fourth quarter of
2023 were $98 million including the delivery of Regent Seven Seas
Grandeur in November and are expected to be approximately $40
million for the first quarter of 2024.
Company Updates and Other Business
Highlights:
Fleet and Brand Updates
- Norwegian Cruise Line opened for
sale the all-new Norwegian Aqua, the first of the next-generation
Prima Class Plus. Learn more here.
- Norwegian Cruise Line’s all-new
Norwegian Viva completed her exclusive christening voyage following
a star-studded event in Miami. Learn more here.
- Regent Seven Seas Cruises® took
delivery of the highly anticipated Seven Seas Grandeur™, the sixth
ship of the World’s Most Luxurious Fleet®. The ship was christened
at a gala celebration in Miami which featured the unveiling of the
first Fabergé egg to reside permanently at sea. Learn more here and
here.
- Oceania Cruises announced inspiring
new voyages on the Riviera, exploring lesser-known ports across the
African and Asian Continents. Learn more here.
- Regent Seven Seas Cruises®
announced a collection of six unique Immersive Overnights voyages
where each port of call features an overnight stay – allowing for
deeper exploration and discovery in much-loved destinations. Learn
more here.
- Regent Seven Seas Cruises®
announced a landmark partnership with the iconic Aston Martin
Aramco Formula One® Team, becoming the team’s first official Global
Cruise Line Partner. Learn more here.
Other Highlights
- Norwegian
Cruise Line Holdings was selected by Newsweek as one of America’s
Greatest Workplaces for Diversity 2024.
Conference Call
The Company has scheduled a conference call for
Tuesday, February 27, 2024 at 10:00 a.m. Eastern Time to
discuss fourth quarter and full year 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 32 ships and approximately 66,500 berths, NCLH
offers itineraries to approximately 700 destinations worldwide.
NCLH has five additional ships scheduled for delivery across its
three brands, which will add approximately 16,000 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 Free Cash Flow. Free Cash Flow adjusted
for proceeds from ship construction financing facilities and other
supplemental adjustments.
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.
Free Cash Flow. Net cash provided by operating
activities less capital expenditures.
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. $875 million senior
secured revolving credit facility as of September 30, 2023,
which was increased to $1.2 billion 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, Net Per Diem, Free
Cash Flow and Adjusted Free Cash Flow, 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. For example, for the year ended December 31, 2022, we
incurred $12.1 million related to restructuring costs or charges.
We included this as an adjustment in the reconciliation of Adjusted
Net Income (Loss) since the expenses are not representative of our
day-to-day operations; however, this adjustment did not occur and
is not included in the comparative period presented within.
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.
Management believes Free Cash Flow and Adjusted
Free Cash Flow provide investors with useful financial metrics to
assess our ability to service and repay our debt and to pursue
opportunities to enhance our growth after making the capital
investments required to support ongoing business operations and
long-term value creation. Free Cash Flow and Adjusted Free Cash
Flow do not represent the residual cash flow available for
discretionary expenditures as they exclude certain mandatory
expenditures such as repayment of maturing debt. Management uses
Free Cash Flow and Adjusted Free Cash Flow as measures to assess
both business performance and overall liquidity.
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; 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, Quarterly
Report on Form 10-Q 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 |
|
Year Ended |
|
|
December 31, |
|
December 31, |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
Passenger ticket |
|
$ |
1,333,057 |
|
|
$ |
1,011,544 |
|
|
$ |
5,753,966 |
|
|
$ |
3,253,799 |
|
Onboard and other |
|
|
653,399 |
|
|
|
507,585 |
|
|
|
2,795,958 |
|
|
|
1,589,961 |
|
Total revenue |
|
|
1,986,456 |
|
|
|
1,519,129 |
|
|
|
8,549,924 |
|
|
|
4,843,760 |
|
Cruise operating
expense |
|
|
|
|
|
|
|
|
|
|
|
|
Commissions, transportation and other |
|
|
420,714 |
|
|
|
337,683 |
|
|
|
1,883,279 |
|
|
|
1,034,629 |
|
Onboard and other |
|
|
129,633 |
|
|
|
102,487 |
|
|
|
599,904 |
|
|
|
357,932 |
|
Payroll and related |
|
|
325,882 |
|
|
|
297,942 |
|
|
|
1,262,119 |
|
|
|
1,088,639 |
|
Fuel |
|
|
186,830 |
|
|
|
183,143 |
|
|
|
716,833 |
|
|
|
686,825 |
|
Food |
|
|
86,735 |
|
|
|
86,324 |
|
|
|
358,310 |
|
|
|
263,807 |
|
Other |
|
|
172,019 |
|
|
|
211,880 |
|
|
|
648,142 |
|
|
|
835,254 |
|
Total cruise operating expense |
|
|
1,321,813 |
|
|
|
1,219,459 |
|
|
|
5,468,587 |
|
|
|
4,267,086 |
|
Other operating
expense |
|
|
|
|
|
|
|
|
|
|
|
|
Marketing, general and administrative |
|
|
328,258 |
|
|
|
378,527 |
|
|
|
1,341,858 |
|
|
|
1,379,105 |
|
Depreciation and amortization |
|
|
212,055 |
|
|
|
202,112 |
|
|
|
808,568 |
|
|
|
749,326 |
|
Total other operating expense |
|
|
540,313 |
|
|
|
580,639 |
|
|
|
2,150,426 |
|
|
|
2,128,431 |
|
Operating income (loss) |
|
|
124,330 |
|
|
|
(280,969 |
) |
|
|
930,911 |
|
|
|
(1,551,757 |
) |
Non-operating income
(expense) |
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
|
(197,381 |
) |
|
|
(177,120 |
) |
|
|
(727,531 |
) |
|
|
(801,512 |
) |
Other income (expense), net |
|
|
(35,266 |
) |
|
|
(24,006 |
) |
|
|
(40,204 |
) |
|
|
76,566 |
|
Total non-operating income (expense) |
|
|
(232,647 |
) |
|
|
(201,126 |
) |
|
|
(767,735 |
) |
|
|
(724,946 |
) |
Net income (loss)
before income taxes |
|
|
(108,317 |
) |
|
|
(482,095 |
) |
|
|
163,176 |
|
|
|
(2,276,703 |
) |
Income tax benefit
(expense) |
|
|
1,832 |
|
|
|
(385 |
) |
|
|
3,002 |
|
|
|
6,794 |
|
Net income
(loss) |
|
$ |
(106,485 |
) |
|
$ |
(482,480 |
) |
|
$ |
166,178 |
|
|
$ |
(2,269,909 |
) |
Weighted-average
shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
425,426,293 |
|
|
|
421,400,765 |
|
|
|
424,424,962 |
|
|
|
419,773,195 |
|
Diluted |
|
|
425,426,293 |
|
|
|
421,400,765 |
|
|
|
427,400,849 |
|
|
|
419,773,195 |
|
Earnings (loss) per
share |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.25 |
) |
|
$ |
(1.14 |
) |
|
$ |
0.39 |
|
|
$ |
(5.41 |
) |
Diluted |
|
$ |
(0.25 |
) |
|
$ |
(1.14 |
) |
|
$ |
0.39 |
|
|
$ |
(5.41 |
) |
|
NORWEGIAN CRUISE LINE
HOLDINGS LTD.CONSOLIDATED STATEMENTS OF
COMPREHENSIVE INCOME
(LOSS)(Unaudited)(in
thousands) |
|
|
|
Three Months Ended |
|
Year Ended |
|
|
December 31, |
|
December 31, |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Net income (loss) |
|
$ |
(106,485 |
) |
|
$ |
(482,480 |
) |
|
$ |
166,178 |
|
|
$ |
(2,269,909 |
) |
Other
comprehensive income (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
Shipboard Retirement Plan |
|
|
(3,604 |
) |
|
|
6,224 |
|
|
|
(3,413 |
) |
|
|
8,889 |
|
Cash flow hedges: |
|
|
|
|
|
|
|
|
|
|
|
|
Net unrealized gain (loss) |
|
|
(36,606 |
) |
|
|
142,725 |
|
|
|
(1,773 |
) |
|
|
(104,017 |
) |
Amount realized and reclassified into earnings |
|
|
(12,283 |
) |
|
|
(21,526 |
) |
|
|
(26,173 |
) |
|
|
(96,865 |
) |
Total other comprehensive income (loss) |
|
|
(52,493 |
) |
|
|
127,423 |
|
|
|
(31,359 |
) |
|
|
(191,993 |
) |
Total
comprehensive income (loss) |
|
$ |
(158,978 |
) |
|
$ |
(355,057 |
) |
|
$ |
134,819 |
|
|
$ |
(2,461,902 |
) |
|
NORWEGIAN CRUISE LINE
HOLDINGS LTD.CONSOLIDATED BALANCE
SHEETS(Unaudited)(in thousands,
except share data) |
|
|
|
December 31, |
|
December 31, |
|
|
2023 |
|
|
2022 |
|
Assets |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
402,415 |
|
|
$ |
946,987 |
|
Accounts receivable, net |
|
|
280,271 |
|
|
|
326,272 |
|
Inventories |
|
|
157,646 |
|
|
|
148,717 |
|
Prepaid expenses and other assets |
|
|
472,816 |
|
|
|
450,893 |
|
Total current assets |
|
|
1,313,148 |
|
|
|
1,872,869 |
|
Property and equipment,
net |
|
|
16,433,292 |
|
|
|
14,516,366 |
|
Goodwill |
|
|
98,134 |
|
|
|
98,134 |
|
Trade names |
|
|
500,525 |
|
|
|
500,525 |
|
Other long-term assets |
|
|
1,147,891 |
|
|
|
1,569,800 |
|
Total assets |
|
$ |
19,492,990 |
|
|
$ |
18,557,694 |
|
Liabilities and
shareholders’ equity |
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
Current portion of long-term debt |
|
$ |
1,744,778 |
|
|
$ |
991,128 |
|
Accounts payable |
|
|
174,338 |
|
|
|
228,742 |
|
Accrued expenses and other liabilities |
|
|
1,058,919 |
|
|
|
1,318,460 |
|
Advance ticket sales |
|
|
3,060,666 |
|
|
|
2,516,521 |
|
Total current liabilities |
|
|
6,038,701 |
|
|
|
5,054,851 |
|
Long-term debt |
|
|
12,314,147 |
|
|
|
12,630,402 |
|
Other long-term
liabilities |
|
|
839,335 |
|
|
|
803,850 |
|
Total liabilities |
|
|
19,192,183 |
|
|
|
18,489,103 |
|
Commitments and
contingencies |
|
|
|
|
|
|
Shareholders’ equity: |
|
|
|
|
|
|
Ordinary shares, $0.001 par value; 980,000,000 shares authorized;
and 425,546,570 shares issued and outstanding at
December 31, 2023 and 421,413,565 shares issued and
outstanding at December 31, 2022 |
|
|
425 |
|
|
|
421 |
|
Additional paid-in capital |
|
|
7,708,957 |
|
|
|
7,611,564 |
|
Accumulated other comprehensive income (loss) |
|
|
(508,438 |
) |
|
|
(477,079 |
) |
Accumulated deficit |
|
|
(6,900,137 |
) |
|
|
(7,066,315 |
) |
Total shareholders’ equity |
|
|
300,807 |
|
|
|
68,591 |
|
Total liabilities and shareholders’ equity |
|
$ |
19,492,990 |
|
|
$ |
18,557,694 |
|
|
NORWEGIAN CRUISE LINE
HOLDINGS LTD.CONSOLIDATED STATEMENTS OF CASH
FLOWS(Unaudited)(in
thousands) |
|
|
|
Year Ended |
|
|
December 31, |
|
|
2023 |
|
|
2022 |
|
Cash flows from
operating activities |
|
|
|
|
|
|
Net income (loss) |
|
$ |
166,178 |
|
|
$ |
(2,269,909 |
) |
Adjustments to reconcile net
income (loss) to net cash provided by operating activities: |
|
|
|
|
|
|
Depreciation and amortization expense |
|
|
883,236 |
|
|
|
810,053 |
|
Loss on derivatives |
|
|
13,760 |
|
|
|
8,618 |
|
Loss on extinguishment of debt |
|
|
6,701 |
|
|
|
188,799 |
|
Provision for bad debts and inventory obsolescence |
|
|
6,190 |
|
|
|
13,609 |
|
Gain on involuntary conversion of assets |
|
|
(6,852 |
) |
|
|
(2,300 |
) |
Share-based compensation expense |
|
|
118,940 |
|
|
|
113,563 |
|
Net foreign currency adjustments on euro-denominated debt |
|
|
8,188 |
|
|
|
(10,795 |
) |
Changes in operating assets
and liabilities: |
|
|
|
|
|
|
Accounts receivable, net |
|
|
39,649 |
|
|
|
828,661 |
|
Inventories |
|
|
(11,042 |
) |
|
|
(33,609 |
) |
Prepaid expenses and other assets |
|
|
410,266 |
|
|
|
(602,258 |
) |
Accounts payable |
|
|
(50,976 |
) |
|
|
(16,196 |
) |
Accrued expenses and other liabilities |
|
|
(82,202 |
) |
|
|
252,837 |
|
Advance ticket sales |
|
|
503,678 |
|
|
|
928,947 |
|
Net cash provided by operating activities |
|
|
2,005,714 |
|
|
|
210,020 |
|
Cash flows from
investing activities |
|
|
|
|
|
|
Additions to property and
equipment, net |
|
|
(2,750,362 |
) |
|
|
(1,783,857 |
) |
Proceeds from maturities of
short-term investments |
|
|
— |
|
|
|
240,000 |
|
Cash paid on settlement of
derivatives |
|
|
(162,942 |
) |
|
|
(224,137 |
) |
Other |
|
|
16,161 |
|
|
|
12,090 |
|
Net cash used in investing activities |
|
|
(2,897,143 |
) |
|
|
(1,755,904 |
) |
Cash flows from
financing activities |
|
|
|
|
|
|
Repayments of long-term
debt |
|
|
(3,758,234 |
) |
|
|
(1,770,172 |
) |
Proceeds from long-term
debt |
|
|
4,322,941 |
|
|
|
3,003,003 |
|
Proceeds from employee related
plans |
|
|
5,307 |
|
|
|
5,267 |
|
Net share settlement of
restricted share units |
|
|
(26,860 |
) |
|
|
(20,987 |
) |
Early redemption premium |
|
|
— |
|
|
|
(172,012 |
) |
Deferred financing fees |
|
|
(196,297 |
) |
|
|
(58,875 |
) |
Net cash provided by financing activities |
|
|
346,857 |
|
|
|
986,224 |
|
Net decrease in cash and cash equivalents |
|
|
(544,572 |
) |
|
|
(559,660 |
) |
Cash and cash equivalents at
beginning of the period |
|
|
946,987 |
|
|
|
1,506,647 |
|
Cash and cash equivalents at
end of the period |
|
$ |
402,415 |
|
|
$ |
946,987 |
|
NORWEGIAN CRUISE LINE
HOLDINGS LTD.NON-GAAP RECONCILING
INFORMATION(Unaudited)
The following table sets forth selected statistical
information:
|
|
Three Months Ended |
|
Year Ended |
|
|
|
December 31, |
|
December 31, |
|
|
|
2023 |
|
2019 |
|
2023 |
|
2019 |
|
Passengers carried |
|
648,893 |
|
640,810 |
|
2,716,546 |
|
2,695,718 |
|
Passenger Cruise Days |
|
5,856,413 |
|
5,260,764 |
|
23,311,672 |
|
20,637,949 |
|
Capacity Days |
|
5,903,305 |
|
5,035,367 |
|
22,652,588 |
|
19,233,459 |
|
Occupancy Percentage |
|
99.2 |
% |
104.5 |
% |
102.9 |
% |
107.3 |
% |
|
|
|
|
|
|
|
|
|
|
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 Net Yield,
Net Per Diem, Capacity Days, Passenger Cruise Days, per Passenger
Cruise Day and Capacity Day data):
|
|
Three Months Ended |
|
Years Ended |
|
|
December 31, |
|
December 31, |
|
|
|
|
2023 |
|
|
|
|
|
2023 |
|
|
|
|
|
|
Constant Currency |
|
|
|
|
|
Constant Currency |
|
|
|
|
2023 |
|
compared to 2019 |
|
2019 |
|
2023 |
|
compared to 2019 |
|
2019 |
Total revenue |
|
$ |
1,986,456 |
|
$ |
1,993,431 |
|
$ |
1,480,618 |
|
$ |
8,549,924 |
|
$ |
8,585,051 |
|
$ |
6,462,376 |
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cruise operating
expense |
|
|
1,321,813 |
|
|
1,324,841 |
|
|
887,422 |
|
|
5,468,587 |
|
|
5,490,535 |
|
|
3,663,261 |
Ship depreciation |
|
|
198,012 |
|
|
198,012 |
|
|
149,904 |
|
|
753,629 |
|
|
753,629 |
|
|
587,677 |
Gross margin |
|
|
466,631 |
|
|
470,578 |
|
|
443,292 |
|
|
2,327,708 |
|
|
2,340,887 |
|
|
2,211,438 |
Ship depreciation |
|
|
198,012 |
|
|
198,012 |
|
|
149,904 |
|
|
753,629 |
|
|
753,629 |
|
|
587,677 |
Payroll and related |
|
|
325,882 |
|
|
325,916 |
|
|
235,832 |
|
|
1,262,119 |
|
|
1,262,668 |
|
|
924,157 |
Fuel |
|
|
186,830 |
|
|
186,849 |
|
|
111,875 |
|
|
716,833 |
|
|
716,966 |
|
|
409,602 |
Food |
|
|
86,735 |
|
|
87,248 |
|
|
56,297 |
|
|
358,310 |
|
|
360,223 |
|
|
222,602 |
Other |
|
|
172,019 |
|
|
173,023 |
|
|
135,154 |
|
|
648,142 |
|
|
659,986 |
|
|
591,341 |
Adjusted Gross Margin |
|
$ |
1,436,109 |
|
$ |
1,441,626 |
|
$ |
1,132,354 |
|
$ |
6,066,741 |
|
$ |
6,094,359 |
|
$ |
4,946,817 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Passenger Cruise Days |
|
|
5,856,413 |
|
|
5,856,413 |
|
|
5,260,764 |
|
|
23,311,672 |
|
|
23,311,672 |
|
|
20,637,949 |
Capacity Days |
|
|
5,903,305 |
|
|
5,903,305 |
|
|
5,035,367 |
|
|
22,652,588 |
|
|
22,652,588 |
|
|
19,233,459 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue per Passenger
Cruise Day |
|
$ |
339.19 |
|
$ |
340.38 |
|
$ |
281.45 |
|
$ |
366.77 |
|
$ |
368.27 |
|
$ |
313.13 |
Gross margin per Passenger
Cruise Day |
|
$ |
79.68 |
|
$ |
80.35 |
|
$ |
84.26 |
|
$ |
99.85 |
|
$ |
100.42 |
|
$ |
107.15 |
Net Per Diem |
|
$ |
245.22 |
|
$ |
246.16 |
|
$ |
215.25 |
|
$ |
260.24 |
|
$ |
261.43 |
|
$ |
239.70 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin per Capacity
Day |
|
$ |
79.05 |
|
$ |
79.71 |
|
$ |
88.04 |
|
$ |
102.76 |
|
$ |
103.34 |
|
$ |
114.98 |
Net Yield |
|
$ |
243.27 |
|
$ |
244.21 |
|
$ |
224.88 |
|
$ |
267.82 |
|
$ |
269.04 |
|
$ |
257.20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
Years Ended |
|
|
December 31, |
|
December 31, |
|
|
|
|
2023 |
|
|
|
|
|
2023 |
|
|
|
|
|
|
Constant Currency |
|
|
|
|
|
Constant Currency |
|
|
|
|
2023 |
|
compared to 2019 |
|
2019 |
|
2023 |
|
compared to 2019 |
|
2019 |
Total cruise operating expense |
|
$ |
1,321,813 |
|
$ |
1,324,841 |
|
$ |
887,422 |
|
$ |
5,468,587 |
|
$ |
5,490,535 |
|
$ |
3,663,261 |
Marketing, general and
administrative expense |
|
|
328,258 |
|
|
329,071 |
|
|
229,859 |
|
|
1,341,858 |
|
|
1,345,043 |
|
|
974,850 |
Gross Cruise Cost |
|
|
1,650,071 |
|
|
1,653,912 |
|
|
1,117,281 |
|
|
6,810,445 |
|
|
6,835,578 |
|
|
4,638,111 |
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commissions, transportation
and other expense |
|
|
420,714 |
|
|
422,172 |
|
|
263,038 |
|
|
1,883,279 |
|
|
1,890,788 |
|
|
1,120,886 |
Onboard and other expense |
|
|
129,633 |
|
|
129,633 |
|
|
85,226 |
|
|
599,904 |
|
|
599,904 |
|
|
394,673 |
Net Cruise Cost |
|
|
1,099,724 |
|
|
1,102,107 |
|
|
769,017 |
|
|
4,327,262 |
|
|
4,344,886 |
|
|
3,122,552 |
Less: Fuel expense |
|
|
186,830 |
|
|
186,849 |
|
|
111,875 |
|
|
716,833 |
|
|
716,966 |
|
|
409,602 |
Net Cruise Cost Excluding Fuel |
|
|
912,894 |
|
|
915,258 |
|
|
657,142 |
|
|
3,610,429 |
|
|
3,627,920 |
|
|
2,712,950 |
Less Other Non-GAAP
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash deferred compensation (1) |
|
|
578 |
|
|
578 |
|
|
534 |
|
|
2,312 |
|
|
2,312 |
|
|
2,135 |
Non-cash share-based compensation (2) |
|
|
22,686 |
|
|
22,686 |
|
|
12,985 |
|
|
118,940 |
|
|
118,940 |
|
|
95,055 |
Severance payments and other fees (3) |
|
|
— |
|
|
— |
|
|
6,514 |
|
|
— |
|
|
— |
|
|
6,514 |
Redeployment of Norwegian Joy (4) |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
7,051 |
Adjusted Net Cruise Cost
Excluding Fuel |
|
$ |
889,630 |
|
$ |
891,994 |
|
$ |
637,109 |
|
$ |
3,489,177 |
|
$ |
3,506,668 |
|
$ |
2,602,195 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capacity Days |
|
|
5,903,305 |
|
|
5,903,305 |
|
|
5,035,367 |
|
|
22,652,588 |
|
|
22,652,588 |
|
|
19,233,459 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Cruise Cost per Capacity
Day |
|
$ |
279.52 |
|
$ |
280.17 |
|
$ |
221.89 |
|
$ |
300.65 |
|
$ |
301.76 |
|
$ |
241.15 |
Net Cruise Cost per Capacity
Day |
|
$ |
186.29 |
|
$ |
186.69 |
|
$ |
152.72 |
|
$ |
191.03 |
|
$ |
191.81 |
|
$ |
162.35 |
Net Cruise Cost Excluding Fuel
per Capacity Day |
|
$ |
154.64 |
|
$ |
155.04 |
|
$ |
130.51 |
|
$ |
159.38 |
|
$ |
160.15 |
|
$ |
141.05 |
Adjusted Net Cruise Cost
Excluding Fuel per Capacity Day |
|
$ |
150.70 |
|
$ |
151.10 |
|
$ |
126.53 |
|
$ |
154.03 |
|
$ |
154.80 |
|
$ |
135.30 |
________________________(1) Non-cash deferred
compensation expenses related to the crew pension plan and other
crew expenses, which are included in payroll and related
expense.(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) Severance payments related to
restructuring costs are included in marketing, general and
administrative expense.(4) 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 |
|
Three Months Ended |
|
Three Months Ended |
|
Year Ended |
|
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
December 31, |
|
|
2023 |
|
2023 |
|
2023 |
|
2022 |
|
2022 |
Total cruise operating expense |
|
$ |
1,482,746 |
|
$ |
1,383,610 |
|
$ |
1,280,418 |
|
$ |
1,219,459 |
|
$ |
4,267,086 |
Marketing, general and
administrative expense |
|
|
325,365 |
|
|
352,222 |
|
|
336,013 |
|
|
378,527 |
|
|
1,379,105 |
Gross Cruise Cost |
|
|
1,808,111 |
|
|
1,735,832 |
|
|
1,616,431 |
|
|
1,597,986 |
|
|
5,646,191 |
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commissions, transportation
and other expense |
|
|
546,026 |
|
|
506,855 |
|
|
409,684 |
|
|
337,683 |
|
|
1,034,629 |
Onboard and other expense |
|
|
188,694 |
|
|
161,880 |
|
|
119,697 |
|
|
102,487 |
|
|
357,932 |
Net Cruise Cost |
|
|
1,073,391 |
|
|
1,067,097 |
|
|
1,087,050 |
|
|
1,157,816 |
|
|
4,253,630 |
Less: Fuel expense |
|
|
170,893 |
|
|
164,242 |
|
|
194,868 |
|
|
183,143 |
|
|
686,825 |
Net Cruise Cost Excluding Fuel |
|
|
902,498 |
|
|
902,855 |
|
|
892,182 |
|
|
974,673 |
|
|
3,566,805 |
Less Other Non-GAAP
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash deferred compensation (1) |
|
|
578 |
|
|
578 |
|
|
578 |
|
|
699 |
|
|
2,797 |
Non-cash share-based compensation (2) |
|
|
23,563 |
|
|
44,536 |
|
|
28,155 |
|
|
24,640 |
|
|
113,563 |
Restructuring costs (3) |
|
|
— |
|
|
— |
|
|
— |
|
|
12,140 |
|
|
12,140 |
Adjusted Net Cruise Cost
Excluding Fuel |
|
$ |
878,357 |
|
$ |
857,741 |
|
$ |
863,449 |
|
$ |
937,194 |
|
$ |
3,438,305 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capacity Days |
|
|
5,820,448 |
|
|
5,513,288 |
|
|
5,415,547 |
|
|
5,060,866 |
|
|
17,566,069 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Cruise Cost per Capacity
Day |
|
$ |
310.65 |
|
$ |
314.85 |
|
$ |
298.48 |
|
$ |
315.75 |
|
$ |
321.43 |
Net Cruise Cost per Capacity
Day |
|
$ |
184.42 |
|
$ |
193.55 |
|
$ |
200.73 |
|
$ |
228.78 |
|
$ |
242.15 |
Net Cruise Cost Excluding Fuel
per Capacity Day |
|
$ |
155.06 |
|
$ |
163.76 |
|
$ |
164.74 |
|
$ |
192.59 |
|
$ |
203.05 |
Adjusted Net Cruise Cost
Excluding Fuel per Capacity Day |
|
$ |
150.91 |
|
$ |
155.58 |
|
$ |
159.44 |
|
$ |
185.18 |
|
$ |
195.74 |
________________________(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) Restructuring costs related to
workforce reductions are included in 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 |
|
Year Ended |
|
|
December 31, |
|
December 31, |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
2022 |
|
Net income (loss) |
|
$ |
(106,485 |
) |
|
$ |
(482,480 |
) |
|
$ |
166,178 |
|
$ |
(2,269,909 |
) |
Non-GAAP
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash deferred compensation (1) |
|
|
1,010 |
|
|
|
1,012 |
|
|
|
4,039 |
|
|
4,048 |
|
Non-cash share-based compensation (2) |
|
|
22,686 |
|
|
|
24,640 |
|
|
|
118,940 |
|
|
113,563 |
|
Restructuring costs (3) |
|
|
— |
|
|
|
12,140 |
|
|
|
— |
|
|
12,140 |
|
Extinguishment and modification of debt (4) |
|
|
5,669 |
|
|
|
4,941 |
|
|
|
8,822 |
|
|
193,374 |
|
Adjusted Net Income (Loss) |
|
$ |
(77,120 |
) |
|
$ |
(439,747 |
) |
|
$ |
297,979 |
|
$ |
(1,946,784 |
) |
Diluted weighted-average
shares outstanding - Net income (loss) and Adjusted Net Income
(Loss) |
|
|
425,426,293 |
|
|
|
421,400,765 |
|
|
|
427,400,849 |
|
|
419,773,195 |
|
Diluted EPS |
|
$ |
(0.25 |
) |
|
$ |
(1.14 |
) |
|
$ |
0.39 |
|
$ |
(5.41 |
) |
Adjusted EPS |
|
$ |
(0.18 |
) |
|
$ |
(1.04 |
) |
|
$ |
0.70 |
|
$ |
(4.64 |
) |
________________________(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) Restructuring
costs related to workforce reductions are included in marketing,
general and administrative expense.(4) 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 |
|
Year Ended |
|
|
December 31, |
|
December 31, |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Net income (loss) |
|
$ |
(106,485 |
) |
|
$ |
(482,480 |
) |
|
$ |
166,178 |
|
|
$ |
(2,269,909 |
) |
Interest expense, net |
|
|
197,381 |
|
|
|
177,120 |
|
|
|
727,531 |
|
|
|
801,512 |
|
Income tax (benefit)
expense |
|
|
(1,832 |
) |
|
|
385 |
|
|
|
(3,002 |
) |
|
|
(6,794 |
) |
Depreciation and amortization
expense |
|
|
212,055 |
|
|
|
202,112 |
|
|
|
808,568 |
|
|
|
749,326 |
|
EBITDA |
|
|
301,119 |
|
|
|
(102,863 |
) |
|
|
1,699,275 |
|
|
|
(725,865 |
) |
Other (income) expense, net
(1) |
|
|
35,266 |
|
|
|
24,006 |
|
|
|
40,204 |
|
|
|
(76,566 |
) |
Other Non-GAAP
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash deferred compensation (2) |
|
|
578 |
|
|
|
699 |
|
|
|
2,312 |
|
|
|
2,797 |
|
Non-cash share-based compensation (3) |
|
|
22,686 |
|
|
|
24,640 |
|
|
|
118,940 |
|
|
|
113,563 |
|
Restructuring costs (4) |
|
|
— |
|
|
|
12,140 |
|
|
|
— |
|
|
|
12,140 |
|
Adjusted EBITDA |
|
$ |
359,649 |
|
|
$ |
(41,378 |
) |
|
$ |
1,860,731 |
|
|
$ |
(673,931 |
) |
________________________(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.(4) Restructuring costs related to
workforce reductions are included in marketing, general and
administrative expense.
NORWEGIAN CRUISE LINE
HOLDINGS LTD.NON-GAAP RECONCILING
INFORMATION(Unaudited)
Net Debt was calculated as follows (in
thousands):
|
|
December 31, |
|
|
2023 |
Long-term debt |
|
$ |
12,314,147 |
Current portion of long-term
debt |
|
|
1,744,778 |
Total Debt |
|
|
14,058,925 |
Less: Cash and cash
equivalents |
|
|
402,415 |
Net Debt |
|
$ |
13,656,510 |
Free Cash Flow and Adjusted Free Cash Flow were calculated as
follows (in thousands):
|
|
Year Ended |
|
|
December 31, |
|
|
2023 |
|
Net cash used in investing activities |
|
$ |
(2,897,143 |
) |
Net cash provided by financing
activities |
|
$ |
346,857 |
|
|
|
|
|
Net cash provided by operating
activities |
|
$ |
2,005,714 |
|
Additions to property and
equipment, net |
|
|
(2,750,362 |
) |
Free Cash Flow |
|
|
(744,648 |
) |
Cash paid on settlement of
derivatives |
|
|
(162,942 |
) |
Cash received on settlement of
derivatives |
|
|
5,016 |
|
Newbuild related proceeds from
long-term debt |
|
|
2,050,241 |
|
Adjusted Free Cash Flow |
|
$ |
1,147,667 |
|
Norwegian Cruise Line (NYSE:NCLH)
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