Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH) (together with NCL
Corporation Ltd., “Norwegian Cruise Line Holdings”, “Norwegian” or
the “Company”) today reported financial results for the second
quarter ended June 30, 2022 and provided a business update.
“We are encouraged by
the continued strong consumer demand we are experiencing which is
reflected in our record pricing, accelerating booking volumes,
especially for 2023 and beyond, and highest ever onboard
revenue generation. Having emerged from the pandemic and returning
to more normal operations, we remain steadfast in our strategy and
commitment to protect our brands’ positioning and industry-leading
pricing, which we firmly believe is the best way to maximize
long-term value for all our stakeholders,” said Frank Del Rio,
president and chief executive officer of Norwegian Cruise Line
Holdings Ltd. “As the leading operator in upscale cruising, our
three award-winning brands are particularly well-positioned to
capitalize on our target consumers’ continued desire for travel and
experiences led by our unique and compelling value propositions
versus land-based vacation alternatives. Our world-class fleet has
been further enhanced by the recent addition of Norwegian Prima,
the first of six ships in the ground-breaking Prima Class for
Norwegian Cruise Line."
Operations
Update
In early May, the
Company was the first major cruise operator to complete the phased
relaunch of its entire fleet with all ships in operation. Occupancy
in the second quarter was 65%, in line with previously outlined
expectations, and a 17-point improvement over the prior quarter.
Numerous voyages, across several key markets, achieved occupancy
levels north of 100% during the quarter. Consistent with its core
strategy to focus on maximizing long-term pricing, the Company
continues to expect quarterly occupancy levels to sequentially
increase and reach historical levels for the second quarter of
2023. Occupancy is expected to average in the low 80% range in the
third quarter of 2022 with July voyages averaging approximately
85%.
The Company continues
to experience strong ticket pricing and onboard revenue generation
with total revenue per Passenger Cruise Day up nearly 20% in the
second quarter of 2022 versus 2019. For the third quarter of 2022,
the Company expects total revenue per Passenger Cruise Day to
increase high-single digits versus 2019, despite the significant
impact of the Russia-Ukraine conflict on certain premium-priced
European itineraries in the current year.
Momentum continues in
terms of financial performance, with the Company generating
positive Operating Cash Flow of approximately $260 million for the
second quarter of 2022 after turning positive in March. The Company
expects to reach another milestone in the second half of 2022 with
slightly positive Adjusted EBITDA. The Company continues to target
exceeding historical record Net Yield and Adjusted EBITDA levels
for full year 20231.
Improving
Public Health and Regulatory Environment
The Company continues
to benefit from significant improvements in the public health
environment, allowing it to align its SailSAFE health and safety
protocols closer to those of the rest of the travel, leisure and
hospitality industry worldwide. The Company was pleased with the
recent decision of the U.S. Centers for Disease Control and
Prevention (“CDC”) to recognize the success of the cruise
industry’s mitigation protocols and discontinue its voluntary
COVID-19 Program for Cruise Ships.
Yesterday, the Company
announced SailSAFE protocol changes which will be effective
September 3rd, subject to local regulations2. Vaccinated guests
aged 12 and over will no longer have any pre-cruise COVID-19
related protocols and unvaccinated travelers may embark with a
negative COVID-19 test taken within 72 hours prior to departure.
Guests aged 11 and under will be exempt from all vaccination and
testing requirements. The Company will continue to evaluate its
protocols and modify them as needed as the public health
environment evolves.
These protocol
revisions, in conjunction with continued easing of travel
restrictions and reopening to cruise in more ports around the
globe, are meaningfully positive as it reduces friction, expands
the addressable cruise market, brings variety to itineraries, and
provides additional catalysts on the road to recovery.
Booking
Environment and Outlook
As expected, the Company’s current cumulative
booked position for the second half of 2022 remains below the
comparable 2019 period but at higher prices even when including the
dilutive impact of future cruise credits (“FCCs”) and despite the
impact in the third quarter of the Russia-Ukraine conflict on
premium-priced Baltic and Eastern Mediterranean itineraries.
Booking trends for full year 2023 remain
positive with cumulative booked position in line with a record
2019 inclusive of the Company’s 20% increase in capacity.
Pricing continues to be significantly higher than that of 2019 at a
similar point in time and thus at record levels for full year
2023.
Sequentially, net booking volumes continue to
increase as the Company’s brands ramp up to sail at historical load
factor levels.
The Company’s advance
ticket sales balance, including the long-term portion, increased
approximately $0.3 billion in the quarter to $2.5 billion as of
June 30, 2022, an all-time record high for the Company. This
includes approximately $0.4 billion of FCCs or 16% of the total
deposit balance. Approximately 75% of the FCC balance outstanding
has already been applied to future sailings. Gross advance ticket
sales build was approximately $1.5 billion during the quarter, an
approximately $0.5 billion increase versus the prior quarter and
the highest level since the start of the pandemic.
Liquidity and
Financial Recovery Plan
The Company continues
to prioritize enhancing liquidity and financial flexibility in the
current environment while seeking opportunities to optimize its
balance sheet and reduce leverage. As of June 30, 2022, the
Company’s total debt position was $13.2 billion and the Company’s
liquidity was approximately $2.9 billion, consisting of cash and
cash equivalents of $1.9 billion and a $1 billion undrawn
commitment.
In July 2022, the
Company amended its existing undrawn $1 billion commitment and
extended it through March 31, 2023. The Company has not drawn, and
currently does not intend to draw, under this commitment, however,
the Company believes extending the facility was prudent given the
current volatile macroeconomic and strained capital markets
environment.
“Our entire team is
united around our key priorities which include accelerating our
ongoing operational and financial recovery, delivering outsized top
and bottom-line growth from our disciplined and cash-accretive
newbuild pipeline, and preserving liquidity and financial
flexibility against a rapidly evolving macroeconomic backdrop,”
said Mark A. Kempa, executive vice president and chief financial
officer of Norwegian Cruise Line Holdings Ltd.
Second Quarter 2022 Results
GAAP net loss was $(509.3) million or EPS of
$(1.22) compared to net loss of $(717.8) million or EPS of $(1.94)
in the prior year. The Company reported Adjusted Net Loss of
$(478.3) million or Adjusted EPS of $(1.14) in 2022. This compares
to Adjusted Net Loss and Adjusted EPS of $(714.7) million and
$(1.93), respectively, in 2021.
Revenue increased to $1.2 billion compared to
$4.4 million in 2021 due to the resumption of cruise voyages.
Total cruise operating expense increased in 2022
compared to 2021, due to the resumption of voyages, which resulted
in higher payroll, fuel, and direct variable costs of fully
operating ships, compared to the prior year when no voyages
operated during the second quarter. Costs were also impacted by
inflationary pressures and continued COVID-19 related costs
including testing.
Fuel price per metric ton, net of hedges,
increased to $836 from $673 in 2021. The Company reported fuel
expense of $181.2 million in the period.
Interest expense, net was $144.4 million in 2022
compared to $137.3 million in 2021. Interest expense in 2021
reflects a $20.4 million gain recognized from extinguishment of
debt. Excluding this gain, interest expense decreased as a result
of lower interest expense in connection with recent refinancings,
partially offset by higher debt balances and higher LIBOR
rates.
Other income (expense), net was income of $31.0
million in 2022 compared to $25.5 million in 2021. In 2022, the
income primarily related to gains on foreign currency
remeasurements.
Outlook
As a result of the
COVID-19 pandemic, the effects of the Russia-Ukraine conflict and
current macroeconomic conditions, while the Company cannot estimate
the impact on its business, financial condition or near- or
longer-term financial or operational results with certainty, it
will report a net loss for the third quarter of 2022. 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.
Fuel
The following reflects the Company’s
expectations regarding fuel consumption and pricing, along with
accompanying sensitivities.
|
|
Third Quarter 2022 |
Full Year 2022 |
Fuel consumption in metric
tons |
|
230,000 |
885,000 |
Fuel price per metric ton, net
of hedges1 |
|
$865 |
$795 |
Effect on Adjusted EPS of a
10% change in fuel prices, net of hedges |
|
$0.02 |
$0.042 |
(1) Fuel prices
are based on forward curves as of 7/27/22(2) For the remainder of
2022 |
|
As of June 30, 2022, the Company had hedged
approximately 41% and 31% of its total projected metric tons of
fuel consumption for the remainder of 2022 and 2023, respectively.
The following table provides amounts hedged and price per barrel of
heavy fuel oil (“HFO”) which is hedged utilizing U.S. Gulf Coast 3%
(“USGC”), Brent and marine gas oil (“MGO”) which is hedged
utilizing Gasoil.
|
|
Remainder of 2022 |
|
|
2023 |
|
% of HFO Consumption Hedged1 |
|
|
31 |
% |
|
26 |
% |
Average USGC Price / Barrel |
|
$ |
48.36 |
|
|
N/A |
|
Average Brent Price / Barrel |
|
$ |
66.50 |
|
$ |
74.50 |
|
% of MGO Consumption Hedged |
|
|
49 |
% |
|
35 |
% |
Average Gasoil Price / Barrel |
|
$ |
70.00 |
|
$ |
69.91 |
|
Total % of Consumption Hedged |
|
|
41 |
% |
|
31 |
% |
(1) USGC derivatives were de-designated for accounting purposes in
the fourth quarter of 2020. Both USGC and Brent derivatives
represent economic hedges and may be designated or re-designated as
accounting hedges. |
|
Capital Expenditures
Anticipated non-newbuild capital expenditures
for 2022 are expected to be approximately $500 million including
approximately $250 million in the second half.
Newbuild-related capital expenditures, net of
export credit financing, are expected to be approximately $0.6
billion, $0.5 billion and $0.7 billion for the full years ending
December 31, 2022, 2023 and 2024, respectively. Net
newbuild-related capital expenditures for the remainder of 2022 are
expected to be $0.5 billion.
Other Guidance
Occupancy is expected to be in the low 80% range
in the third quarter of 2022. Capacity Days are expected to be 5
million in the third quarter of 2022 and 5.1 million in the fourth
quarter of 2022.
Total revenue is expected to be $1.5-$1.6
billion in the third quarter of 2022. Total revenue per Passenger
Cruise Day is forecast to increase high single digits versus the
third quarter of 2019.
Adjusted Net Cruise Cost Excluding Fuel per
Capacity Day is expected to decrease by approximately 10% in second
half of 2022 versus first half of 2022.
Interest Expense, net is expected to be
approximately $160 million for third quarter of 2022 and $615
million for full year 2022, excluding losses on extinguishment of
debt.
Depreciation and Amortization is expected to be
approximately $190 million for third quarter of 2022 and $745
million for full year 2022.
Company Updates and Other Business
Highlights:
Environmental, Social and Governance
(“ESG”)
- Published second annual ESG Report
and Sustainability Accounting Standards Board (“SASB”) disclosure.
View the full report here: 2021 ESG Report.
- Established target for
approximately 70% of the Company’s fleet to be equipped with shore
power capabilities by 2025, allowing these ships to connect to
onshore electrical power grids while in ports with the required
infrastructure.
- Joined the Methanol Institute in
2022, a global trade association for the methanol industry which
represents the world’s leading methanol producers, distributors and
technology providers, to collaborate, share and adapt solutions for
the future. Alongside strategic partners such as engine
manufacturers and classification societies, the Company is
assessing the feasibility of retrofitting existing engines to
operate with dual fuels, diesel and methanol, with the goal to test
the use of methanol by 2025.
- Updated Supplier Code of Conduct in
2022 and introduced a Responsible Sourcing Mission Statement and
Animal Welfare Commitment all of which can be found here.
Fleet and Brand Updates
- Norwegian Cruise Line took delivery
of its newest ship, Norwegian Prima, in Marghera, Venice at the
Fincantieri shipyard on July 29, 2022. Learn more here.
- Norwegian Cruise Line reached a
construction milestone in August with the float out of Norwegian
Viva, the line’s second Prima class vessel expected to be delivered
in 2023.
- For the fourth year running, Regent
Seven Seas Cruises sold out its world cruise in record time, with
the 2025 sailing being completely reserved prior to officially
opening for bookings on June 15, 2022. Learn more here.
- Oceania Cruises’ 2024 voyage
collection launch on May 4, 2022 was among the best single-day
booking days in the line’s history. Learn more here.
Other Highlights
- Announced the 100 winners of the
2022 Norwegian's Giving Joy™ contest, the Company’s annual
recognition program that celebrates devoted educators across the
U.S. and Canada. The top three grand prize winners will be
announced at an award ceremony on October 27, 2022. By the end of
2022, the program will have awarded 230 teachers across the U.S.
and Canada with free cruises and donated over $235,000 to schools
since 2019. Learn more here.
- Announced the first winner of the
Company’s Call to Artists contest in collaboration with The Nader
Museum. Brazilian artist Ernesto Kunde created a mural for NCL’s
PortMiami terminal, which will be displayed for a year, and
received a $100,000 award as well as a 10-day residency in the
Artist Loft on Oceania Cruises.
Conference Call
The Company has scheduled a conference call for
Tuesday, August 9, 2022 at 10:00 a.m. Eastern Time to discuss
second quarter 2022 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 the Norwegian
Cruise Line, Oceania Cruises and Regent Seven Seas Cruises brands.
With a combined fleet of 29 ships with over 62,000 berths, these
brands offer itineraries to approximately 500 destinations
worldwide. The Company has eight additional ships scheduled for
delivery through 2027, comprising over 20,000 berths.
Terminology
Adjusted EBITDA. EBITDA adjusted for other
income (expense), net and other supplemental adjustments.
Adjusted EPS. Adjusted Net 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. Net income, adjusted
for non-cash compensation expense and any potential impacts
associated with financing activities.
Adjusted Net Loss. Net loss adjusted for
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 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 Yield. Adjusted Gross Margin per Capacity
Day.
Occupancy Percentage or Load Factor. The ratio
of Passenger Cruise Days to Capacity Days. A percentage in excess
of 100% indicates that three or more passengers occupied some
cabins.
Operating Cash Flow. Net cash provided by (used
in) operating activities.
Passenger Cruise Days. The number of passengers
carried for the period, multiplied by the number of days in their
respective cruises.
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, Adjusted Net Loss,
Adjusted Net Income and Adjusted EPS, 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
and Net Yield to manage our business on a day-to-day basis because
it reflects revenue earned net of certain direct variable costs. We
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
Cruise Cost and Adjusted Net Cruise Cost Excluding Fuel to be the
most relevant indicators of our performance. As a result of our
voluntary suspension of sailings from March 2020 until July 2021
and our gradual phased return to service beginning in July 2021,
per Capacity Day data is not meaningful for the three or six months
ended June 30, 2022 or June 30, 2021 and is not presented
herein.
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. 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 Loss, Adjusted Net
Income and Adjusted EPS are non-GAAP financial measures that
exclude certain amounts and are used to supplement GAAP net loss
and EPS. We use Adjusted Net Loss, Adjusted Net Income 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 during normal operations. The amounts excluded in the
presentation of these non-GAAP financial measures may vary from
period to period; accordingly, our presentation of Adjusted Net
Loss and Adjusted EPS may not be indicative of future adjustments
or results.
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 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 impacts of the COVID-19 pandemic,
Russia’s invasion of Ukraine and general macroeconomic conditions,
our expectations regarding cruise voyage occupancy, the
implementation of and effectiveness of our health and safety
protocols, 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 future cost mitigation and cash
conservation efforts 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:
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 is expected to
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 regulatory restrictions related to the
pandemic; legislation prohibiting companies from verifying
vaccination status; 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 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, such as terrorist acts, armed conflict, such as Russia’s
invasion of Ukraine, and threats thereof, acts of piracy, and other
international events; adverse incidents involving cruise ships;
adverse general economic and related factors, including as a result
of the impact of the COVID-19 pandemic, Russia’s invasion of
Ukraine or otherwise, 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;
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; our inability to obtain adequate insurance coverage;
pending or threatened litigation, investigations and enforcement
actions; any further impairment of our trademarks, trade names or
goodwill; 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; 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. Additionally, many of
these risks and uncertainties are currently amplified by and will
continue to be amplified by, or in the future may be amplified by,
the COVID-19 pandemic, Russia’s invasion of Ukraine and the impact
of general macroeconomic conditions. It is not possible to predict
or identify all such risks. There may be additional risks that we
consider immaterial or which are unknown. The above examples are
not exhaustive and new risks emerge from time to time. 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
ContactJessica John(305)
468-2339InvestorRelations@nclcorp.com
|
NORWEGIAN CRUISE LINE HOLDINGS LTD.CONSOLIDATED STATEMENTS
OF OPERATIONS(Unaudited)(in thousands, except share and per share
data) |
|
|
|
|
|
|
|
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
Revenue |
|
|
|
|
|
|
|
|
Passenger ticket |
|
$ |
793,892 |
|
|
$ |
1,584 |
|
|
$ |
1,136,347 |
|
|
$ |
1,750 |
|
Onboard and other |
|
|
393,289 |
|
|
|
2,784 |
|
|
|
572,774 |
|
|
|
5,718 |
|
Total revenue |
|
|
1,187,181 |
|
|
|
4,368 |
|
|
|
1,709,121 |
|
|
|
7,468 |
|
Cruise operating
expense |
|
|
|
|
|
|
|
|
Commissions, transportation and other |
|
|
256,190 |
|
|
|
6,564 |
|
|
|
344,148 |
|
|
|
15,597 |
|
Onboard and other |
|
|
96,155 |
|
|
|
1,276 |
|
|
|
128,705 |
|
|
|
2,535 |
|
Payroll and related |
|
|
262,580 |
|
|
|
86,647 |
|
|
|
503,307 |
|
|
|
168,785 |
|
Fuel |
|
|
181,189 |
|
|
|
54,090 |
|
|
|
316,698 |
|
|
|
96,693 |
|
Food |
|
|
61,157 |
|
|
|
4,334 |
|
|
|
100,673 |
|
|
|
10,642 |
|
Other |
|
|
216,045 |
|
|
|
96,816 |
|
|
|
415,198 |
|
|
|
156,330 |
|
Total cruise operating expense |
|
|
1,073,316 |
|
|
|
249,727 |
|
|
|
1,808,729 |
|
|
|
450,582 |
|
Other operating
expense |
|
|
|
|
|
|
|
|
Marketing, general and administrative |
|
|
329,080 |
|
|
|
185,483 |
|
|
|
625,287 |
|
|
|
388,678 |
|
Depreciation and amortization |
|
|
181,587 |
|
|
|
174,262 |
|
|
|
360,663 |
|
|
|
344,578 |
|
Total other operating expense |
|
|
510,667 |
|
|
|
359,745 |
|
|
|
985,950 |
|
|
|
733,256 |
|
Operating loss |
|
|
(396,802 |
) |
|
|
(605,104 |
) |
|
|
(1,085,558 |
) |
|
|
(1,176,370 |
) |
Non-operating income
(expense) |
|
|
|
|
|
|
|
|
Interest expense, net |
|
|
(144,377 |
) |
|
|
(137,259 |
) |
|
|
(472,062 |
) |
|
|
(961,700 |
) |
Other income (expense), net |
|
|
30,991 |
|
|
|
25,501 |
|
|
|
69,111 |
|
|
|
52,744 |
|
Total non-operating income (expense) |
|
|
(113,386 |
) |
|
|
(111,758 |
) |
|
|
(402,951 |
) |
|
|
(908,956 |
) |
Net loss before income
taxes |
|
|
(510,188 |
) |
|
|
(716,862 |
) |
|
|
(1,488,509 |
) |
|
|
(2,085,326 |
) |
Income tax benefit
(expense) |
|
|
867 |
|
|
|
(927 |
) |
|
|
(3,526 |
) |
|
|
(2,655 |
) |
Net loss |
|
$ |
(509,321 |
) |
|
$ |
(717,789 |
) |
|
$ |
(1,492,035 |
) |
|
$ |
(2,087,981 |
) |
|
|
|
|
|
|
|
|
|
Weighted-average
shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
419,107,330 |
|
|
|
369,933,159 |
|
|
|
418,424,753 |
|
|
|
349,767,216 |
|
Diluted |
|
|
419,107,330 |
|
|
|
369,933,159 |
|
|
|
418,424,753 |
|
|
|
349,767,216 |
|
|
|
|
|
|
|
|
|
|
Loss per
share |
|
|
|
|
|
|
|
|
Basic |
|
$ |
(1.22 |
) |
|
$ |
(1.94 |
) |
|
$ |
(3.57 |
) |
|
$ |
(5.97 |
) |
Diluted |
|
$ |
(1.22 |
) |
|
$ |
(1.94 |
) |
|
$ |
(3.57 |
) |
|
$ |
(5.97 |
) |
NORWEGIAN CRUISE LINE HOLDINGS LTD.CONSOLIDATED STATEMENTS
OF COMPREHENSIVE LOSS(Unaudited)(in thousands) |
|
|
|
|
|
|
|
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(509,321 |
) |
|
$ |
(717,789 |
) |
|
$ |
(1,492,035 |
) |
|
$ |
(2,087,981 |
) |
Other comprehensive income
(loss): |
|
|
|
|
|
|
|
|
Shipboard Retirement Plan |
|
|
94 |
|
|
|
99 |
|
|
|
2,570 |
|
|
|
197 |
|
Cash flow hedges: |
|
|
|
|
|
|
|
|
Net unrealized gain (loss) |
|
|
(90,503 |
) |
|
|
44,674 |
|
|
|
(51,199 |
) |
|
|
(28,363 |
) |
Amount realized and reclassified into earnings |
|
|
(36,075 |
) |
|
|
13,542 |
|
|
|
(43,577 |
) |
|
|
35,380 |
|
Total other comprehensive income (loss) |
|
|
(126,484 |
) |
|
|
58,315 |
|
|
|
(92,206 |
) |
|
|
7,214 |
|
Total comprehensive loss |
|
$ |
(635,805 |
) |
|
$ |
(659,474 |
) |
|
$ |
(1,584,241 |
) |
|
$ |
(2,080,767 |
) |
|
NORWEGIAN CRUISE LINE HOLDINGS LTD.CONSOLIDATED BALANCE
SHEETS(Unaudited)(in thousands, except share data) |
|
|
|
June 30, |
|
December 31, |
|
|
|
2022 |
|
|
|
2021 |
|
Assets |
|
|
|
|
Current assets: |
|
|
|
|
Cash and cash equivalents |
|
$ |
1,903,238 |
|
|
$ |
1,506,647 |
|
Short-term investments |
|
|
— |
|
|
|
240,000 |
|
Accounts receivable, net |
|
|
598,256 |
|
|
|
1,167,473 |
|
Inventories |
|
|
154,397 |
|
|
|
118,205 |
|
Prepaid expenses and other assets |
|
|
475,856 |
|
|
|
269,243 |
|
Total current assets |
|
|
3,131,747 |
|
|
|
3,301,568 |
|
Property and equipment,
net |
|
|
13,641,345 |
|
|
|
13,528,806 |
|
Goodwill |
|
|
98,134 |
|
|
|
98,134 |
|
Tradenames |
|
|
500,525 |
|
|
|
500,525 |
|
Other long-term assets |
|
|
1,741,449 |
|
|
|
1,300,804 |
|
Total assets |
|
$ |
19,113,200 |
|
|
$ |
18,729,837 |
|
Liabilities and
shareholders' equity |
|
|
|
|
Current liabilities: |
|
|
|
|
Current portion of long-term debt |
|
$ |
1,005,198 |
|
|
$ |
876,890 |
|
Accounts payable |
|
|
100,336 |
|
|
|
233,172 |
|
Accrued expenses and other liabilities |
|
|
1,596,725 |
|
|
|
1,059,034 |
|
Advance ticket sales |
|
|
2,331,203 |
|
|
|
1,561,336 |
|
Total current liabilities |
|
|
5,033,462 |
|
|
|
3,730,432 |
|
Long-term debt |
|
|
12,239,362 |
|
|
|
11,569,700 |
|
Other long-term
liabilities |
|
|
938,561 |
|
|
|
997,055 |
|
Total liabilities |
|
|
18,211,385 |
|
|
|
16,297,187 |
|
Commitments and
contingencies |
|
|
|
|
Shareholders' equity: |
|
|
|
|
Ordinary shares, $0.001 par value; 980,000,000 shares authorized:
419,116,812 |
|
|
|
|
shares issued and outstanding at June 30, 2022 and 416,891,915
shares issued and |
|
|
|
|
outstanding at December 31, 2021 |
|
|
419 |
|
|
|
417 |
|
Additional paid-in capital |
|
|
7,567,129 |
|
|
|
7,513,725 |
|
Accumulated other comprehensive income (loss) |
|
|
(377,292 |
) |
|
|
(285,086 |
) |
Accumulated deficit |
|
|
(6,288,441 |
) |
|
|
(4,796,406 |
) |
Total shareholders' equity |
|
|
901,815 |
|
|
|
2,432,650 |
|
Total liabilities and shareholders' equity |
|
$ |
19,113,200 |
|
|
$ |
18,729,837 |
|
NORWEGIAN CRUISE LINE HOLDINGS LTD.CONSOLIDATED STATEMENTS
OF CASH FLOWS(Unaudited)(in thousands) |
|
|
|
|
|
Six Months EndedJune 30, |
|
|
|
2022 |
|
|
|
2021 |
|
Cash flows from
operating activities |
|
|
|
|
Net loss |
|
$ |
(1,492,035 |
) |
|
$ |
(2,087,981 |
) |
Adjustments to reconcile net
loss to net cash used in operating activities: |
|
|
|
|
Depreciation and amortization expense |
|
|
391,320 |
|
|
|
372,445 |
|
(Gain) loss on derivatives |
|
|
47 |
|
|
|
(22,534 |
) |
Loss on extinguishment of debt |
|
|
188,433 |
|
|
|
601,539 |
|
Provision for bad debts and inventory obsolescence |
|
|
2,500 |
|
|
|
7,211 |
|
Gain on involuntary conversion of assets |
|
|
(1,880 |
) |
|
|
(1,817 |
) |
Share-based compensation expense |
|
|
62,840 |
|
|
|
49,052 |
|
Net foreign currency adjustments |
|
|
(12,063 |
) |
|
|
(3,767 |
) |
Changes in operating assets
and liabilities: |
|
|
|
|
Accounts receivable, net |
|
|
566,265 |
|
|
|
(408,120 |
) |
Inventories |
|
|
(36,748 |
) |
|
|
(9,956 |
) |
Prepaid expenses and other assets |
|
|
(542,730 |
) |
|
|
(242,630 |
) |
Accounts payable |
|
|
(127,188 |
) |
|
|
26,205 |
|
Accrued expenses and other liabilities |
|
|
137,225 |
|
|
|
46,689 |
|
Advance ticket sales |
|
|
755,189 |
|
|
|
191,609 |
|
Net cash used in operating activities |
|
|
(108,825 |
) |
|
|
(1,482,055 |
) |
Cash flows from
investing activities |
|
|
|
|
Additions to property and
equipment, net |
|
|
(326,303 |
) |
|
|
(309,481 |
) |
Purchases of short-term
investments |
|
|
— |
|
|
|
(385,000 |
) |
Proceeds from maturities of
short-term investments |
|
|
240,000 |
|
|
|
— |
|
Cash paid on settlement of
derivatives |
|
|
— |
|
|
|
(8,559 |
) |
Other |
|
|
5,237 |
|
|
|
2,825 |
|
Net cash used in investing activities |
|
|
(81,066 |
) |
|
|
(700,215 |
) |
Cash flows from
financing activities |
|
|
|
|
Repayments of long-term
debt |
|
|
(1,268,888 |
) |
|
|
(879,679 |
) |
Proceeds from long-term
debt |
|
|
2,073,175 |
|
|
|
1,223,110 |
|
Common share issuance
proceeds, net |
|
|
— |
|
|
|
1,558,396 |
|
Proceeds from employee related
plans |
|
|
2,557 |
|
|
|
1,089 |
|
Net share settlement of
restricted share units |
|
|
(11,991 |
) |
|
|
(16,658 |
) |
Early redemption premium |
|
|
(172,012 |
) |
|
|
(611,164 |
) |
Deferred financing fees and
other |
|
|
(36,359 |
) |
|
|
(28,166 |
) |
Net cash provided by financing activities |
|
|
586,482 |
|
|
|
1,246,928 |
|
Net increase (decrease) in cash and cash equivalents |
|
|
396,591 |
|
|
|
(935,342 |
) |
Cash and cash equivalents at
beginning of the period |
|
|
1,506,647 |
|
|
|
3,300,482 |
|
Cash and cash equivalents at
end of the period |
|
$ |
1,903,238 |
|
|
$ |
2,365,140 |
|
NORWEGIAN CRUISE LINE HOLDINGS
LTD.NON-GAAP RECONCILING
INFORMATION(Unaudited) |
|
The following
table sets forth selected statistical information: |
|
|
|
|
|
|
|
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
Passengers carried |
|
393,943 |
|
|
— |
|
|
585,093 |
|
|
— |
|
Passenger Cruise Days |
|
2,999,303 |
|
|
— |
|
|
4,428,749 |
|
|
— |
|
Capacity Days (1) |
|
4,639,435 |
|
|
— |
|
|
7,617,788 |
|
|
— |
|
Occupancy Percentage |
|
64.6 |
% |
|
|
|
|
58.1 |
% |
|
|
|
(1) Excludes certain capacity on Pride of America which is
temporarily unavailable. |
NORWEGIAN CRUISE LINE HOLDINGS LTD.NON-GAAP RECONCILING
INFORMATION(Unaudited) |
|
Adjusted Gross
Margin was calculated as follows (in thousands): |
|
|
|
|
|
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
|
|
2022 |
|
|
2022ConstantCurrency |
|
|
2021 |
|
|
|
2022 |
|
|
2022ConstantCurrency |
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue |
$ |
1,187,181 |
|
|
$ |
1,194,502 |
|
|
$ |
4,368 |
|
|
$ |
1,709,121 |
|
|
$ |
1,717,276 |
|
|
$ |
7,468 |
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
Total cruise operating
expense |
|
1,073,316 |
|
|
|
1,079,679 |
|
|
|
249,727 |
|
|
|
1,808,729 |
|
|
|
1,817,447 |
|
|
|
450,582 |
|
Ship depreciation |
|
170,736 |
|
|
|
170,736 |
|
|
|
163,526 |
|
|
|
337,392 |
|
|
|
337,392 |
|
|
|
323,157 |
|
Gross margin |
|
(56,871 |
) |
|
|
(55,913 |
) |
|
|
(408,885 |
) |
|
|
(437,000 |
) |
|
|
(437,563 |
) |
|
|
(766,271 |
) |
Ship depreciation |
|
170,736 |
|
|
|
170,736 |
|
|
|
163,526 |
|
|
|
337,392 |
|
|
|
337,392 |
|
|
|
323,157 |
|
Payroll and related |
|
262,580 |
|
|
|
262,712 |
|
|
|
86,647 |
|
|
|
503,307 |
|
|
|
503,433 |
|
|
|
168,785 |
|
Fuel |
|
181,189 |
|
|
|
181,213 |
|
|
|
54,090 |
|
|
|
316,698 |
|
|
|
316,723 |
|
|
|
96,693 |
|
Food |
|
61,157 |
|
|
|
61,449 |
|
|
|
4,334 |
|
|
|
100,673 |
|
|
|
101,071 |
|
|
|
10,642 |
|
Other |
|
216,045 |
|
|
|
219,809 |
|
|
|
96,816 |
|
|
|
415,198 |
|
|
|
420,988 |
|
|
|
156,330 |
|
Adjusted Gross Margin |
|
834,836 |
|
|
|
840,006 |
|
|
|
(3,472 |
) |
|
|
1,236,268 |
|
|
|
1,242,044 |
|
|
|
(10,664 |
) |
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): |
|
|
|
|
|
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
|
|
2022 |
|
|
2022ConstantCurrency |
|
|
2021 |
|
|
|
2022 |
|
|
2022ConstantCurrency |
|
|
2021 |
|
Total cruise operating expense |
$ |
1,073,316 |
|
|
|
1,079,679 |
|
|
$ |
249,727 |
|
|
$ |
1,808,729 |
|
|
$ |
1,817,447 |
|
|
$ |
450,582 |
|
Marketing, general and |
|
|
|
|
|
|
|
|
|
|
|
administrative expense |
|
329,080 |
|
|
|
331,760 |
|
|
|
185,483 |
|
|
|
625,287 |
|
|
|
629,325 |
|
|
|
388,678 |
|
Gross Cruise Cost |
|
1,402,396 |
|
|
|
1,411,439 |
|
|
|
435,210 |
|
|
|
2,434,016 |
|
|
|
2,446,772 |
|
|
|
839,260 |
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
Commissions,
transportation |
|
|
|
|
|
|
|
|
|
|
|
and other expense |
|
256,190 |
|
|
|
258,341 |
|
|
|
6,564 |
|
|
|
344,148 |
|
|
|
346,527 |
|
|
|
15,597 |
|
Onboard and other expense |
|
96,155 |
|
|
|
96,155 |
|
|
|
1,276 |
|
|
|
128,705 |
|
|
|
128,705 |
|
|
|
2,535 |
|
Net Cruise Cost |
|
1,050,051 |
|
|
|
1,056,943 |
|
|
|
427,370 |
|
|
|
1,961,163 |
|
|
|
1,971,540 |
|
|
|
821,128 |
|
Less: Fuel expense |
|
181,189 |
|
|
|
181,213 |
|
|
|
54,090 |
|
|
|
316,698 |
|
|
|
316,723 |
|
|
|
96,693 |
|
Net Cruise Cost Excluding Fuel |
|
868,862 |
|
|
|
875,730 |
|
|
|
373,280 |
|
|
|
1,644,465 |
|
|
|
1,654,817 |
|
|
|
724,435 |
|
Less Non-GAAP
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
Non-cash deferred compensation (1) |
|
699 |
|
|
|
699 |
|
|
|
905 |
|
|
|
1,398 |
|
|
|
1,398 |
|
|
|
1,810 |
|
Non-cash share-based compensation (2) |
|
30,048 |
|
|
|
30,048 |
|
|
|
22,451 |
|
|
|
62,840 |
|
|
|
62,840 |
|
|
|
49,052 |
|
Adjusted Net Cruise Cost
Excluding Fuel |
$ |
838,115 |
|
|
$ |
844,983 |
|
|
$ |
349,924 |
|
|
$ |
1,580,227 |
|
|
$ |
1,590,579 |
|
|
$ |
673,573 |
|
(1) Non-cash deferred compensation expenses related to the crew
pension plan and other crew expenses, which are included in payroll
and related expense.(2) Non-cash share-based compensation expenses
related to equity awards, which are included in marketing, general
and administrative expense and payroll and related expense. |
NORWEGIAN CRUISE LINE HOLDINGS LTD.NON-GAAP RECONCILING
INFORMATION(Unaudited) |
|
Adjusted Net Loss
and Adjusted EPS were calculated as follows (in thousands, except
share and per share data): |
|
|
|
|
|
|
|
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(509,321 |
) |
|
$ |
(717,789 |
) |
|
$ |
(1,492,035 |
) |
|
$ |
(2,087,981 |
) |
Non-GAAP
Adjustments: |
|
|
|
|
|
|
|
|
Non-cash deferred compensation (1) |
|
|
1,012 |
|
|
|
1,004 |
|
|
|
2,024 |
|
|
|
2,007 |
|
Non-cash share-based compensation (2) |
|
|
30,048 |
|
|
|
22,451 |
|
|
|
62,840 |
|
|
|
49,052 |
|
Extinguishment and modification of debt (3) |
|
|
— |
|
|
|
(20,355 |
) |
|
|
188,433 |
|
|
|
653,664 |
|
Adjusted Net Loss |
|
$ |
(478,261 |
) |
|
$ |
(714,689 |
) |
|
$ |
(1,238,738 |
) |
|
$ |
(1,383,258 |
) |
Diluted weighted-average
shares outstanding - Net loss and Adjusted Net Loss |
|
|
419,107,330 |
|
|
|
369,933,159 |
|
|
|
418,424,753 |
|
|
|
349,767,216 |
|
Diluted loss per share |
|
$ |
(1.22 |
) |
|
$ |
(1.94 |
) |
|
$ |
(3.57 |
) |
|
$ |
(5.97 |
) |
Adjusted EPS |
|
$ |
(1.14 |
) |
|
$ |
(1.93 |
) |
|
$ |
(2.96 |
) |
|
$ |
(3.95 |
) |
(1) Non-cash deferred compensation expenses related to the crew
pension plan and other crew expenses, which are included in payroll
and related expense and other income (expense), net.(2) Non-cash
share-based compensation expenses related to equity awards, which
are included in marketing, general and administrative expense and
payroll and related expense.(3) Losses on extinguishment of
debt and modification of debt are included in interest expense,
net. |
NORWEGIAN CRUISE LINE HOLDINGS LTD.NON-GAAP RECONCILING
INFORMATION(Unaudited) |
|
|
|
|
|
|
|
|
|
EBITDA and Adjusted EBITDA
were calculated as follows (in thousands): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(509,321 |
) |
|
$ |
(717,789 |
) |
|
$ |
(1,492,035 |
) |
|
$ |
(2,087,981 |
) |
Interest expense, net |
|
|
144,377 |
|
|
|
137,259 |
|
|
|
472,062 |
|
|
|
961,700 |
|
Income tax (benefit)
expense |
|
|
(867 |
) |
|
|
927 |
|
|
|
3,526 |
|
|
|
2,655 |
|
Depreciation and amortization
expense |
|
|
181,587 |
|
|
|
174,262 |
|
|
|
360,663 |
|
|
|
344,578 |
|
EBITDA |
|
|
(184,224 |
) |
|
|
(405,341 |
) |
|
|
(655,784 |
) |
|
|
(779,048 |
) |
|
|
|
|
|
|
|
|
|
Other (income) expense, net
(1) |
|
|
(30,991 |
) |
|
|
(25,501 |
) |
|
|
(69,111 |
) |
|
|
(52,744 |
) |
Non-GAAP
Adjustments: |
|
|
|
|
|
|
|
|
Non-cash deferred compensation (2) |
|
|
699 |
|
|
|
905 |
|
|
|
1,398 |
|
|
|
1,810 |
|
Non-cash share-based compensation (3) |
|
|
30,048 |
|
|
|
22,451 |
|
|
|
62,840 |
|
|
|
49,052 |
|
Adjusted EBITDA |
|
$ |
(184,468 |
) |
|
$ |
(407,486 |
) |
|
$ |
(660,657 |
) |
|
$ |
(780,930 |
) |
(1) In 2022, primarily consists of gains and losses, net for
foreign currency remeasurements. In 2021, primarily consists of
gains and losses, net for fuel swaps not designated as hedges.(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. |
|
_____________________________________________
1 See “Terminology” and “Non-GAAP
Financial Measures” below for additional informationabout Adjusted
EBITDA and Net Yield.2 Requirements may differ for guests traveling
on voyages departing from or visiting destinations with specific
local regulations, including but not limited to Canada, Greece and
Bermuda.
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