Norwegian Cruise Line Holdings Reports Strong Third Quarter 2023 Financial Results
- Norwegian Cruise Line Holdings reported record-breaking total revenue of $2.5 billion in the third quarter, up 33% compared to 2019.
- Adjusted EBITDA for the third quarter was $752 million, exceeding guidance.
- Full-year 2023 Adjusted EBITDA is expected to be approximately $1.86 billion, within the previously provided range.
- None.
MIAMI, Nov. 01, 2023 (GLOBE NEWSWIRE) -- 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 up33% 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 approximately16% 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
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
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
Occupancy averaged
Pricing growth in the third quarter was also strong on
Looking ahead, the Company expects fourth quarter Net Per Diem and Net Yield growth to be strong at approximately
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
Full year 2023 Adjusted Net Cruise Costs excluding Fuel per Capacity Day is now expected to be approximately
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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
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
At quarter-end, liquidity was
“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
3 Subject to a springing maturity if certain conditions are not met.
Third Quarter 2023 Results
GAAP net income was
Gross Cruise Costs per Capacity Day was approximately
The Company reported fuel expense of
Interest expense, net was
Other income (expense), net was income of
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 | Constant Currency | As Reported | Constant Currency | ||
| Net Per Diem vs. 2019 | |||||
| Net Yield vs. 2019 | |||||
| Adjusted Net Cruise Cost Excluding Fuel per Capacity Day | Approx. | Approx. | Approx. | ||
| Capacity Days | Approx. 5.9 million | Approx. 22.7 million | |||
| Occupancy | Approx. | Approx. | |||
| Adjusted EBITDA | Approx. | Approx. | |||
| Adjusted EPS | Approx. | Approx. | |||
| Diluted Weighted-Average Shares Outstanding2 | Approx. 425 million3 | Approx. 427 million3 | |||
| Depreciation and Amortization | Approx. | Approx. | |||
| Adjusted Interest Expense, net4 | Approx. | Approx. | |||
| Effect of a | Approx. Approx. | ||||
| Effect of a | Approx. Approx. | ||||
(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 | |||||
The following reflects the foreign currency exchange rates the Company used in its fourth quarter 2023 guidance.
| Current Guidance | |
| Euro | |
| British pound | |
| Australian Dollar | |
| Canadian Dollar | |
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 | |||
| Effect on Adjusted EPS of a | |||
(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
| Remainder of 2023 | 2024 | 2025 | ||||
| % of HFO Consumption Hedged1 | ||||||
| Blended HFO Hedge Price / Metric Ton | ||||||
| % of MGO Consumption Hedged | ||||||
| Blended MGO Hedge Price / Metric Ton | ||||||
| Total % of Consumption Hedged | ||||||
(1) Hedged derivatives include accounting hedges as well as economic hedges.
Capital Expenditures
Non-newbuild capital expenditures for the third quarter of 2023 were
Newbuild-related capital expenditures, net of export credit financing, are expected to be approximately
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 t o 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
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
Passenger Cruise Days. The number of passengers carried for the period, multiplied by the number of days in their respective cruises.
Revolving Loan Facility.
Term Loan A Facility. The senior secured term loan A facility having an outstanding principal amount of approximately
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, | 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 |
FAQ
What were Norwegian Cruise Line Holdings' total revenue and net income for the third quarter of 2023?
What was the company's Adjusted EBITDA and Adjusted EPS for the third quarter of 2023?
What is the full-year 2023 Adjusted EBITDA expected to be?
