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 third
quarter ended September 30, 2022 and provided a business update.
Highlights:
- GAAP net loss of $(295.4) million
or EPS of $(0.70) and Adjusted Net Loss of $(268.3) million or
Adjusted EPS of $(0.64).1
- Reached positive Adjusted EBITDA
milestone in the third quarter of 2022.
- Sequential Occupancy improvement to
approximately 82% in the quarter, consistent with guidance.
- Total revenue per Passenger Cruise
Day exceeded expectations, increasing approximately 14% in the
third quarter of 2022 compared to the same period in 2019.
- On track to generate positive
Adjusted Free Cash Flow in the fourth quarter of 2022.
- 2023 cumulative booked position
equal to record 2019 levels at significantly higher pricing.
- Reaffirm expectation for record
Adjusted EBITDA and record Net Yield for FY 2023.
“We are demonstrating
continued positive momentum as we consistently reach key
operational and financial milestones, including positive Adjusted
EBITDA in the third quarter for the first time since the start of
the pandemic. The underlying fundamentals of our business and our
target upmarket consumer remain strong and our strategy of focusing
on maximizing long-term, sustainable profitability is working as
intended, evidenced by our 2023 booked position which is equal to
2019’s record levels and at record pricing,” said Frank Del Rio,
president and chief executive officer of Norwegian Cruise Line
Holdings Ltd. “We believe we are uniquely positioned within the
cruise space to unlock value for our stakeholders given our
dominance as the leading operator in upscale experiences, our
sizeable yet nimble 29-ship fleet, our industry-best growth profile
and our differentiated go-to-market strategy of market-to-fill and
value-add bundling.”
Operations
Update
The Company continued
its phased ramp-up in the third quarter focusing on maximizing
long-term pricing, which resulted in a 17-point improvement in
Occupancy to approximately 82%, consistent with previously outlined
expectations. The Company continues to expect quarterly Occupancy
levels to increase and reach historical levels for the second
quarter of 2023. Given fourth quarter Occupancy is typically lower
due to seasonality, we expect Occupancy to be in the mid-to-high 80
percent range, but with the gap versus 2019 levels expected to
further narrow.
Strong ticket pricing
and onboard revenue generation resulted in better-than-expected
total revenue per Passenger Cruise Day which was up approximately
14% in the third quarter of 2022 versus 2019, higher than guidance
for a high-single digits increase and despite the impact of the
Russia-Ukraine conflict on premium-priced Baltic itineraries. For
the fourth quarter of 2022, the Company expects total revenue per
Passenger Cruise Day to increase approximately 20% versus 2019.
The Company reached
another significant financial inflection point by generating
positive Adjusted EBITDA of approximately $28 million for the third
quarter of 2022. The Company continues to target positive Adjusted
Free Cash Flow for the fourth quarter of 2022 and slightly positive
Adjusted EBITDA for the second half of 2022. In addition, the
Company continues to target exceeding historical record Net Yield
and Adjusted EBITDA levels for full year 2023 and a return to
Adjusted Net Income in 2023.
Booking
Environment and Outlook
As expected, the
Company’s current cumulative booked position for the fourth quarter
of 2022 is below the comparable 2019 period but at higher prices
even when including the dilutive impact of future cruise credits
(“FCCs”). Dilution from value-add FCCs issued during the pandemic
will not carry over into 2023 as the bonus portion of these FCCs
expire at year-end 2022.
Booking trends for full year 2023 remain
positive with cumulative booked position equal to record 2019
levels inclusive of the Company’s increase in capacity. Pricing is
significantly higher than that of 2019 at a similar point in time
for full year 2023. Net booking volumes continue to be at the pace
needed to reach historical Load Factor levels in 2023.
As of September 30,
2022, the Company’s advance ticket sales balance, including the
long-term portion, was $2.5 billion. This includes approximately
$260 million of FCCs or approximately 10% of the total deposit
balance. Approximately 60% of the FCC balance outstanding has been
applied to future sailings. Gross advance ticket sales build was
approximately $1.5 billion during the quarter, in line with the
prior quarter.
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 September 30, 2022, the
Company’s total debt position was $13.9 billion and the Company’s
liquidity was approximately $2.2 billion, consisting of cash and
cash equivalents of $1.2 billion and a $1 billion undrawn
commitment.
“We are on track to
generate positive Adjusted Free Cash Flow in the fourth quarter as
we continue to march towards our expected return to historical
occupancy levels beginning in the second quarter of 2023,” said
Mark A. Kempa, executive vice president and chief financial officer
of Norwegian Cruise Line Holdings Ltd. “We are proactively working
to further enhance our financial flexibility and liquidity,
including the amendment and extension of our Operating Credit
Facility which we expect to complete by year-end. We believe our
ongoing cash generation, buoyed by our attractive newbuild growth
pipeline, provides a path to meet our near-term liquidity needs and
restore our balance sheet over time.”
Third Quarter 2022 Results
GAAP net loss was $(295.4) million or EPS of
$(0.70) compared to net loss of $(845.9) million or EPS of $(2.29)
in the prior year. The Company reported Adjusted Net Loss of
$(268.3) million or Adjusted EPS of $(0.64) in 2022. This compares
to Adjusted Net Loss and Adjusted EPS of $(801.4) million and
$(2.17), respectively, in 2021.
Revenue increased to $1.6 billion compared to
$153.1 million in 2021 due to the phased ramp up of cruise
voyages.
Total cruise operating expense increased in 2022
compared to 2021, due to the continued resumption of voyages, which
resulted in higher payroll, fuel, and direct variable costs of
fully operating ships, compared to the prior year when only 8 ships
were returned to service. 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 $830 from $693 in 2021. The Company reported fuel
expense of $186.9 million in the period.
Interest expense, net was $152.3 million in 2022
compared to $161.2 million in 2021. Interest expense decreased
primarily as a result of lower interest expense in connection with
recent refinancings and higher interest income, partially offset by
higher debt balances and higher rates.
Other income (expense), net was income of $31.5
million in 2022 compared to $4.7 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 fourth 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.
|
Fourth Quarter 2022 |
Full Year 2022 |
Fuel consumption in metric
tons |
240,000 |
870,000 |
Fuel price per metric ton, net
of hedges1 |
$725 |
$780 |
Effect on Adjusted EPS of a
10% changein fuel prices, net of hedges |
$0.02 |
$0.022 |
(1) Fuel prices are based on forward curves as
of 11/2/22(2) For the remaining quarter of
2022
As of September 30, 2022, the Company had hedged
approximately 44% and 38% of its total projected metric tons of
fuel consumption for the fourth quarter of 2022 and full year 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.
|
Fourth Quarter 2022 |
2023 |
% of HFO Consumption Hedged1 |
37% |
29% |
Average USGC Price / Barrel |
$48.36 |
N/A |
Average Brent Price / Barrel |
$77.82 |
$76.68 |
% of MGO Consumption Hedged |
51% |
48% |
Average Gasoil Price / Barrel |
$70.00 |
$84.42 |
Total % of Consumption Hedged |
44% |
38% |
(1) Both USGC and Brent include derivatives representing
accounting hedges as well as economic hedges.
Capital Expenditures
Non-newbuild capital expenditures for third
quarter of 2022 were $80 million. Anticipated non-newbuild capital
expenditures for full year 2022 are expected to be approximately
$470 million including approximately $155 million in the fourth
quarter.
Newbuild-related capital expenditures, net of
export credit financing, are expected to be approximately $0.7
billion, $0.5 billion and $0.4 billion for the full years ending
December 31, 2022, 2023 and 2024, respectively, reflecting adjusted
ship delivery schedules for the third and fourth Prima Class
vessels due to shipyard constraints. Net newbuild-related capital
expenditures for the fourth quarter of 2022 are expected to be
approximately $84 million.
Other Guidance
Occupancy is expected to be in the mid-to-high
80% range for the fourth quarter of 2022. Capacity Days are
expected to be 5.1 million in the fourth quarter of
2022.
Total revenue is expected to be $1.4-1.5 billion
in the fourth quarter of 2022. Total revenue per Passenger Cruise
Day is forecast to increase approximately 20% versus the fourth
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 $170 million for the fourth quarter of 2022 and
approximately $610 million for full year 2022, excluding losses on
extinguishment of debt.
Depreciation and Amortization is expected to be
approximately $195 million for the fourth quarter of 2022 and $740
million for full year 2022.
Adjusted EBITDA for the second half of 2022 is
expected to be slightly positive.
The following reflects the foreign currency
exchange rates the Company used in its fourth quarter 2022
guidance.
|
Q4 2022 Guidance |
Euro |
$0.98 |
British pound |
$1.12 |
Australian Dollar |
$0.64 |
Canadian Dollar |
$0.72 |
Company Updates and Other Business
Highlights:
Environmental, Social and Governance
(“ESG”)
- Committed $100,000 to the American
Red Cross to assist in Hurricane Ian relief efforts. Also announced
the Company will match public donations up to an additional
$100,000 to continue with emergency assistance.
- Hosted annual Norwegian’s Giving
Joy awards ceremony aboard Norwegian Prima in October, during which
the cruise line and Kelly Clarkson recognized 100 teachers with a
free cruise and nearly $170,000 for the top three Grand Prize
winners and their schools. Learn more here.
- As part of its commitment to pursue
net zero greenhouse gas emissions by 2050, the Company successfully
completed a test using a biofuel blend on Regent’s Seven Seas
Splendor in October, supplied by its partner World Fuel Services.
In addition, the Company announced the signing of a Memorandum of
Understanding with MAN Energy Solutions to assess the feasibility
of retrofitting a MAN engine to operate with dual-fuels, diesel and
methanol.
- Norwegian Cruise Line announced
partnership with Take 3 for the Sea in Australia to support the
organizations work to reduce plastic pollution in Australian
waterways and oceans. Learn more here.
Fleet and Brand Updates
- Norwegian Cruise Line officially
welcomed its newest ship, Norwegian Prima, with a christening
ceremony on August 27, 2022, making history as the first major
cruise ship christened in Reykjavík, Iceland. Godmother to
Norwegian Prima, Katy Perry, was in attendance for the ceremony and
delivered a memorable performance aboard the ship. Learn more
here.
- Norwegian Cruise Line eliminated
COVID-19 testing, masking and vaccination requirements beginning
October 4, 2022. Learn more here.
- Regent Seven Seas Cruises topped
its own single-day booking record with the launch of its 2024-2025
Voyage Collection as sales commenced on August 24, 2022. This was
the line’s eighth record-breaking launch since 2019 when it
achieved its then largest World Cruise launch day. Learn more
here.
- Regent Seven Seas Cruises won “Best
Luxury Cruise Line” for second year in a row from the 2022 Travel
Weekly Asia Readers’ Choice Awards.
- Oceania Cruises opened its 2025
world cruise and a series of seven new Grand Voyages ranging in
length from 50 to 111 days for sale in September. Learn more
here.
Other Highlights
- Held Investor Event in NYC aboard
Norwegian Prima for investors and analysts. View presentation here.
- Announced partnership with Say
Technologies to offer shareholder engagement platform to facilitate
direct communication between retail and institutional investors
with Company leadership. Learn more here.
- Announced appointment of
Zillah Byng-Thorne to its Board of Directors as a new independent
director, effective November 1, 2022. With Ms. Byng-Thorne’s
appointment, the Board has expanded from seven to eight members,
six of whom are independent, and 50% of director seats are held by
women and/or under-represented minorities. Ms. Byng-Thorne will
serve as a member of the Company’s Audit Committee and Compensation
Committee. Learn more here.
- Donated undeveloped waterfront
property in Juneau to Alaska Native-owned Huna Totem Corporation
for new pier development and welcome center. Company will receive
preferential berthing rights at the pier once development is
complete, further strengthening its foothold in the premium Alaska
market. Learn more here.
Conference Call
The Company has scheduled a conference call for
Tuesday, November 8, 2022 at 10:00 a.m. Eastern Time to discuss
third 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 60,000 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 Free Cash Flow. Free Cash Flow adjusted
for proceeds from ship construction financing facilities and other
supplemental adjustments.
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.
Free Cash Flow. Net cash provided by operating
activities less capital expenditures for ship construction,
business enhancements and other.
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, 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.
Operating Credit Facility. Consists of the
$875.0 million senior secured revolving credit facility and the
senior secured term loan A facility having an outstanding principal
amount of approximately $1.5 billion as of
September 30, 2022.
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 EPS, Free Cash Flow and Adjusted Free Cash Flow, to enable
us to analyze our performance. See “Terminology” for the
definitions of these and other non-GAAP financial measures. We
utilize Adjusted Gross Margin and Net Yield to manage our business
on a day-to-day basis and believe they are relevant measures of our
revenue performance 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 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. 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 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 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.
Management believes Free Cash Flow and Adjusted
Free Cash Flow provide investors with useful financial metrics to
assess our ability to service and repay our debt and to pursue
opportunities to enhance our growth after making the capital
investments required to support ongoing business operations and
long-term value creation. Free Cash Flow and Adjusted Free Cash
Flow do not represent the residual cash flow available for
discretionary expenditures as they exclude certain mandatory
expenditures such as repayment of maturing debt. Management uses
Free Cash Flow and Adjusted Free Cash Flow as measures to assess
both business performance and overall liquidity.
You are encouraged to evaluate each adjustment
used in calculating our non-GAAP financial measures and the reasons
we consider our non-GAAP financial measures appropriate for
supplemental analysis. In evaluating our non-GAAP financial
measures, you should be aware that in the future we may incur
expenses similar to the adjustments in our presentation. Our
non-GAAP financial measures have limitations as analytical tools,
and you should not consider these measures in isolation or as a
substitute for analysis of our results as reported under GAAP. Our
presentation of our non-GAAP financial measures should not be
construed as an inference that our future results will be
unaffected by unusual or non-recurring items. Our non-GAAP
financial measures may not be comparable to other companies. Please
see a historical reconciliation of these measures to the most
comparable GAAP measure presented in our consolidated financial
statements below.
Cautionary Statement Concerning
Forward-Looking Statements
Some of the statements, estimates or projections
contained in this release are “forward-looking statements” within
the meaning of the U.S. federal securities laws intended to qualify
for the safe harbor from liability established by the Private
Securities Litigation Reform Act of 1995. All statements other than
statements of historical facts contained, or incorporated by
reference, in this release, including, without limitation, those
regarding our business strategy, financial position, results of
operations, plans, prospects, actions taken or strategies being
considered with respect to our liquidity position, valuation and
appraisals of our assets and objectives of management for future
operations (including those regarding expected fleet additions, our
expectations regarding the 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; 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 Contact |
Jessica 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
Ended |
|
Nine Months
Ended |
|
|
|
|
|
|
September 30, |
|
September 30, |
|
|
|
|
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
|
|
|
|
|
|
|
Passenger ticket |
$ |
1,105,908 |
|
|
$ |
86,127 |
|
|
$ |
2,242,255 |
|
|
$ |
87,877 |
|
|
Onboard and other |
|
509,602 |
|
|
|
66,954 |
|
|
|
1,082,376 |
|
|
|
72,672 |
|
|
|
|
|
Total revenue |
|
1,615,510 |
|
|
|
153,081 |
|
|
|
3,324,631 |
|
|
|
160,549 |
|
Cruise operating expense |
|
|
|
|
|
|
|
|
Commissions, transportation and other |
|
352,798 |
|
|
|
32,338 |
|
|
|
696,946 |
|
|
|
47,935 |
|
|
Onboard and other |
|
126,740 |
|
|
|
19,306 |
|
|
|
255,445 |
|
|
|
21,841 |
|
|
Payroll and related |
|
287,390 |
|
|
|
154,440 |
|
|
|
790,697 |
|
|
|
323,225 |
|
|
Fuel |
|
|
|
186,984 |
|
|
|
79,238 |
|
|
|
503,682 |
|
|
|
175,931 |
|
|
Food |
|
|
76,810 |
|
|
|
16,672 |
|
|
|
177,483 |
|
|
|
27,314 |
|
|
Other |
|
|
208,176 |
|
|
|
137,762 |
|
|
|
623,374 |
|
|
|
294,092 |
|
|
|
|
|
Total cruise operating expense |
|
1,238,898 |
|
|
|
439,756 |
|
|
|
3,047,627 |
|
|
|
890,338 |
|
Other operating expense |
|
|
|
|
|
|
|
|
Marketing, general and administrative |
|
375,291 |
|
|
|
229,142 |
|
|
|
1,000,578 |
|
|
|
617,820 |
|
|
Depreciation and amortization |
|
186,551 |
|
|
|
173,289 |
|
|
|
547,214 |
|
|
|
517,867 |
|
|
|
|
|
Total other operating expense |
|
561,842 |
|
|
|
402,431 |
|
|
|
1,547,792 |
|
|
|
1,135,687 |
|
|
|
|
|
|
Operating loss |
|
(185,230 |
) |
|
|
(689,106 |
) |
|
|
(1,270,788 |
) |
|
|
(1,865,476 |
) |
Non-operating income (expense) |
|
|
|
|
|
|
|
|
Interest expense, net |
|
(152,330 |
) |
|
|
(161,205 |
) |
|
|
(624,392 |
) |
|
|
(1,122,905 |
) |
|
Other income (expense), net |
|
31,461 |
|
|
|
4,720 |
|
|
|
100,572 |
|
|
|
57,464 |
|
|
|
|
|
Total non-operating income (expense) |
|
(120,869 |
) |
|
|
(156,485 |
) |
|
|
(523,820 |
) |
|
|
(1,065,441 |
) |
Net loss before income taxes |
|
(306,099 |
) |
|
|
(845,591 |
) |
|
|
(1,794,608 |
) |
|
|
(2,930,917 |
) |
Income tax benefit (expense) |
|
10,705 |
|
|
|
(294 |
) |
|
|
7,179 |
|
|
|
(2,949 |
) |
Net loss |
$ |
(295,394 |
) |
|
$ |
(845,885 |
) |
|
$ |
(1,787,429 |
) |
|
$ |
(2,933,866 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares outstanding |
|
|
|
|
|
Basic |
|
|
420,798,538 |
|
|
|
370,016,479 |
|
|
|
419,224,710 |
|
|
|
356,591,143 |
|
|
Diluted |
|
420,798,538 |
|
|
|
370,016,479 |
|
|
|
419,224,710 |
|
|
|
356,591,143 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per share |
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.70 |
) |
|
$ |
(2.29 |
) |
|
$ |
(4.26 |
) |
|
$ |
(8.23 |
) |
|
Diluted |
$ |
(0.70 |
) |
|
$ |
(2.29 |
) |
|
$ |
(4.26 |
) |
|
$ |
(8.23 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Norwegian
Cruise Line Holdings Ltd.Consolidated
Statements of Comprehensive
Loss(Unaudited)(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Nine Months
Ended |
|
|
|
September 30, |
|
September 30, |
|
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
$ |
(295,394 |
) |
|
$ |
(845,885 |
) |
|
$ |
(1,787,429 |
) |
|
$ |
(2,933,866 |
) |
|
Other comprehensive loss: |
|
|
|
|
|
|
|
|
Shipboard Retirement Plan |
|
95 |
|
|
|
98 |
|
|
|
2,665 |
|
|
|
295 |
|
|
Cash flow hedges: |
|
|
|
|
|
|
|
|
|
Net
unrealized loss |
|
(195,543 |
) |
|
|
(45,134 |
) |
|
|
(246,742 |
) |
|
|
(73,497 |
) |
|
|
Amount
realized and reclassified into earnings |
|
(31,762 |
) |
|
|
12,948 |
|
|
|
(75,339 |
) |
|
|
48,328 |
|
|
|
Total other
comprehensive loss |
|
(227,210 |
) |
|
|
(32,088 |
) |
|
|
(319,416 |
) |
|
|
(24,874 |
) |
|
Total comprehensive loss |
$ |
(522,604 |
) |
|
$ |
(877,973 |
) |
|
$ |
(2,106,845 |
) |
|
$ |
(2,958,740 |
) |
|
|
|
|
|
|
|
|
|
|
Norwegian
Cruise Line Holdings Ltd.Consolidated Balance
Sheets(Unaudited)(in thousands,
except share data)
|
|
|
|
|
|
|
September
30, |
|
December
31, |
|
|
|
2022 |
|
|
|
2021 |
|
|
Assets |
|
|
|
|
Current
assets: |
|
|
|
|
Cash and cash equivalents |
$ |
1,186,714 |
|
|
$ |
1,506,647 |
|
|
Short-term investments |
|
— |
|
|
|
240,000 |
|
|
Accounts receivable, net |
|
393,118 |
|
|
|
1,167,473 |
|
|
Inventories |
|
155,880 |
|
|
|
118,205 |
|
|
Prepaid expenses and other assets |
|
421,672 |
|
|
|
269,243 |
|
|
Total current assets |
|
2,157,384 |
|
|
|
3,301,568 |
|
|
Property and
equipment, net |
|
14,511,649 |
|
|
|
13,528,806 |
|
|
Goodwill |
|
98,134 |
|
|
|
98,134 |
|
|
Tradenames |
|
500,525 |
|
|
|
500,525 |
|
|
Other
long-term assets |
|
1,683,237 |
|
|
|
1,300,804 |
|
|
Total assets |
$ |
18,950,929 |
|
|
$ |
18,729,837 |
|
|
Liabilities and shareholders' equity |
|
|
|
|
Current
liabilities: |
|
|
|
|
Current portion of long-term debt |
$ |
1,012,722 |
|
|
$ |
876,890 |
|
|
Accounts payable |
|
141,305 |
|
|
|
233,172 |
|
|
Accrued expenses and other liabilities |
|
1,217,103 |
|
|
|
1,059,034 |
|
|
Advance ticket sales |
|
2,291,624 |
|
|
|
1,561,336 |
|
|
Total current liabilities |
|
4,662,754 |
|
|
|
3,730,432 |
|
|
Long-term
debt |
|
12,893,407 |
|
|
|
11,569,700 |
|
|
Other
long-term liabilities |
|
994,985 |
|
|
|
997,055 |
|
|
Total liabilities |
|
18,551,146 |
|
|
|
16,297,187 |
|
|
Commitments
and contingencies |
|
|
|
|
Shareholders' equity: |
|
|
|
|
Ordinary
shares, $0.001 par value; 980,000,000 shares authorized:
421,393,338 |
|
|
|
|
shares
issued and outstanding at September 30, 2022 and 416,891,915 shares
issued and |
|
|
|
|
outstanding
at December 31, 2021 |
|
421 |
|
|
|
417 |
|
|
Additional
paid-in capital |
|
7,587,699 |
|
|
|
7,513,725 |
|
|
Accumulated
other comprehensive income (loss) |
|
(604,502 |
) |
|
|
(285,086 |
) |
|
Accumulated
deficit |
|
(6,583,835 |
) |
|
|
(4,796,406 |
) |
|
Total
shareholders' equity |
|
399,783 |
|
|
|
2,432,650 |
|
|
Total liabilities and shareholders' equity |
$ |
18,950,929 |
|
|
$ |
18,729,837 |
|
|
|
|
|
|
Norwegian
Cruise Line Holdings Ltd.Consolidated
Statements of Cash
Flows(Unaudited)(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended |
|
|
|
|
|
|
September 30, |
|
|
|
|
|
|
|
2022 |
|
|
|
2021 |
|
Cash flows from operating activities |
|
|
|
Net loss |
$ |
(1,787,429 |
) |
|
$ |
(2,933,866 |
) |
Adjustments to reconcile net loss to net cash used in operating
activities: |
|
|
|
|
Depreciation and amortization expense |
|
593,423 |
|
|
|
560,972 |
|
|
Gain on derivatives |
|
(151 |
) |
|
|
(23,560 |
) |
|
Loss on extinguishment of debt |
|
188,433 |
|
|
|
601,539 |
|
|
Provision for bad debts and inventory obsolescence |
|
5,438 |
|
|
|
14,118 |
|
|
Gain on involuntary conversion of assets |
|
(1,880 |
) |
|
|
(7,706 |
) |
|
Share-based compensation expense |
|
88,923 |
|
|
|
88,974 |
|
|
Net foreign currency adjustments on euro-denominated debt |
|
(17,672 |
) |
|
|
(7,238 |
) |
Changes in operating assets and liabilities: |
|
|
|
|
Accounts receivable, net |
|
765,692 |
|
|
|
(979,890 |
) |
|
Inventories |
|
(38,388 |
) |
|
|
(26,676 |
) |
|
Prepaid expenses and other assets |
|
(555,561 |
) |
|
|
(65,771 |
) |
|
Accounts payable |
|
(97,802 |
) |
|
|
15,014 |
|
|
Accrued expenses and other liabilities |
|
116,947 |
|
|
|
142,144 |
|
|
Advance ticket sales |
|
713,447 |
|
|
|
469,595 |
|
|
|
|
|
|
Net cash used in operating activities |
|
(26,580 |
) |
|
|
(2,152,351 |
) |
Cash flows from investing activities |
|
|
|
Additions to property and equipment, net |
|
(1,628,442 |
) |
|
|
(539,530 |
) |
Purchases of short-term investments |
|
— |
|
|
|
(770,000 |
) |
Proceeds from maturities of short-term investments |
|
240,000 |
|
|
|
205,000 |
|
Cash paid on settlement of derivatives |
|
(214,035 |
) |
|
|
(14,465 |
) |
Other |
|
|
|
10,991 |
|
|
|
11,024 |
|
|
|
|
|
|
Net cash used in investing activities |
|
(1,591,486 |
) |
|
|
(1,107,971 |
) |
Cash flows from financing activities |
|
|
|
Repayments of long-term debt |
|
(1,465,439 |
) |
|
|
(889,206 |
) |
Proceeds from long-term debt |
|
3,003,003 |
|
|
|
1,345,041 |
|
Common share issuance proceeds, net |
|
— |
|
|
|
1,558,396 |
|
Proceeds from employee related plans |
|
5,267 |
|
|
|
3,141 |
|
Net share settlement of restricted share units |
|
(20,212 |
) |
|
|
(16,672 |
) |
Early redemption premium |
|
(172,012 |
) |
|
|
(611,164 |
) |
Deferred financing fees and other |
|
(52,474 |
) |
|
|
(59,880 |
) |
|
|
|
|
|
Net cash provided by financing activities |
|
1,298,133 |
|
|
|
1,329,656 |
|
|
|
|
|
|
Net decrease in cash and cash equivalents |
|
(319,933 |
) |
|
|
(1,930,666 |
) |
Cash and cash equivalents at beginning of the period |
|
1,506,647 |
|
|
|
3,300,482 |
|
Cash and cash equivalents at end of the period |
$ |
1,186,714 |
|
|
$ |
1,369,816 |
|
|
|
|
|
|
|
|
|
|
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, |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
Passengers
carried |
|
526,838 |
|
|
|
57,931 |
|
|
|
1,111,931 |
|
|
|
57,931 |
|
|
Passenger
Cruise Days |
|
3,982,559 |
|
|
|
402,656 |
|
|
|
8,411,308 |
|
|
|
402,656 |
|
|
Capacity
Days (1) |
|
4,887,415 |
|
|
|
701,350 |
|
|
|
12,505,203 |
|
|
|
701,350 |
|
|
Occupancy
Percentage |
|
81.5 |
% |
|
|
57.4 |
% |
|
|
67.3 |
% |
|
|
57.4 |
% |
|
|
|
|
|
|
|
|
|
|
(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
Ended |
|
Nine Months
Ended |
|
|
September 30, |
|
September 30, |
|
|
|
|
|
2022 |
|
|
|
|
|
|
|
2022 |
|
|
|
|
|
|
|
Constant |
|
|
|
|
|
Constant |
|
|
|
|
|
2022 |
|
Currency |
|
|
2021 |
|
|
|
2022 |
|
|
Currency |
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue |
$ |
1,615,510 |
|
$ |
1,634,452 |
$ |
153,081 |
|
|
$ |
3,324,631 |
|
|
$ |
3,351,727 |
|
|
$ |
160,549 |
|
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
Total cruise operating expense |
|
1,238,898 |
|
|
1,252,792 |
|
|
|
439,756 |
|
|
|
3,047,627 |
|
|
|
3,070,239 |
|
|
|
890,338 |
|
|
Ship
depreciation |
|
174,393 |
|
|
174,393 |
|
|
|
159,116 |
|
|
|
511,785 |
|
|
|
511,785 |
|
|
|
482,273 |
|
|
Gross margin |
|
202,219 |
|
|
207,267 |
|
|
|
(445,791 |
) |
|
|
(234,781 |
) |
|
|
(230,297 |
) |
|
|
(1,212,062 |
) |
|
Ship
depreciation |
|
174,393 |
|
|
174,393 |
|
|
|
159,116 |
|
|
|
511,785 |
|
|
|
511,785 |
|
|
|
482,273 |
|
|
Payroll and
related |
|
287,390 |
|
|
287,576 |
|
|
|
154,440 |
|
|
|
790,697 |
|
|
|
791,008 |
|
|
|
323,225 |
|
|
Fuel |
|
186,984 |
|
|
187,064 |
|
|
|
79,238 |
|
|
|
503,682 |
|
|
|
503,787 |
|
|
|
175,931 |
|
|
Food |
|
76,810 |
|
|
78,477 |
|
|
|
16,672 |
|
|
|
177,483 |
|
|
|
179,549 |
|
|
|
27,314 |
|
|
Other |
|
208,176 |
|
|
214,931 |
|
|
|
137,762 |
|
|
|
623,374 |
|
|
|
635,919 |
|
|
|
294,092 |
|
|
Adjusted Gross Margin |
|
1,135,972 |
|
|
1,149,708 |
|
|
|
101,437 |
|
|
|
2,372,240 |
|
|
|
2,391,751 |
|
|
|
90,773 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
Ended |
|
Nine Months
Ended |
|
|
September 30, |
|
September 30, |
|
|
|
|
|
2022 |
|
|
|
|
|
|
|
2022 |
|
|
|
|
|
|
|
Constant |
|
|
|
|
|
Constant |
|
|
|
|
|
2022 |
|
Currency |
|
|
2021 |
|
|
|
2022 |
|
|
Currency |
|
|
2021 |
|
|
Total cruise
operating expense |
$ |
1,238,898 |
|
|
1,252,792 |
|
|
$ |
439,756 |
|
|
$ |
3,047,627 |
|
|
$ |
3,070,239 |
$ |
890,338 |
|
|
Marketing,
general and |
|
|
|
|
|
|
|
|
|
|
|
|
administrative expense |
|
375,291 |
|
|
379,003 |
|
|
|
229,142 |
|
|
|
1,000,578 |
|
|
|
1,008,328 |
|
|
|
617,820 |
|
|
Gross Cruise
Cost |
|
1,614,189 |
|
|
1,631,795 |
|
|
|
668,898 |
|
|
|
4,048,205 |
|
|
|
4,078,567 |
|
|
|
1,508,158 |
|
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
Commissions,
transportation |
|
|
|
|
|
|
|
|
|
|
|
|
and other
expense |
|
352,798 |
|
|
358,004 |
|
|
|
32,338 |
|
|
|
696,946 |
|
|
|
704,531 |
|
|
|
47,935 |
|
|
Onboard and
other expense |
|
126,740 |
|
|
126,740 |
|
|
|
19,306 |
|
|
|
255,445 |
|
|
|
255,445 |
|
|
|
21,841 |
|
|
Net Cruise
Cost |
|
1,134,651 |
|
|
1,147,051 |
|
|
|
617,254 |
|
|
|
3,095,814 |
|
|
|
3,118,591 |
|
|
|
1,438,382 |
|
|
Less: Fuel
expense |
|
186,984 |
|
|
187,064 |
|
|
|
79,238 |
|
|
|
503,682 |
|
|
|
503,787 |
|
|
|
175,931 |
|
|
Net Cruise
Cost Excluding Fuel |
|
947,667 |
|
|
959,987 |
|
|
|
538,016 |
|
|
|
2,592,132 |
|
|
|
2,614,804 |
|
|
|
1,262,451 |
|
|
Less
Non-GAAP Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash
deferred compensation (1) |
|
700 |
|
|
700 |
|
|
|
904 |
|
|
|
2,098 |
|
|
|
2,098 |
|
|
|
2,714 |
|
|
Non-cash
share-based compensation (2) |
|
26,083 |
|
|
26,083 |
|
|
|
39,922 |
|
|
|
88,923 |
|
|
|
88,923 |
|
|
|
88,974 |
|
|
Adjusted Net
Cruise Cost Excluding Fuel |
$ |
920,884 |
|
$ |
933,204 |
|
|
$ |
497,190 |
|
|
$ |
2,501,111 |
|
|
$ |
2,523,783 |
|
|
$ |
1,170,763 |
|
|
(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
Ended |
|
Nine Months
Ended |
|
September 30, |
|
September 30, |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
Net
loss |
$ |
(295,394 |
) |
|
$ |
(845,885 |
) |
|
$ |
(1,787,429 |
) |
|
$ |
(2,933,866 |
) |
Non-GAAP Adjustments: |
|
|
|
|
|
|
|
Non-cash
deferred compensation (1) |
|
1,012 |
|
|
|
1,002 |
|
|
|
3,036 |
|
|
|
3,009 |
|
Non-cash
share-based compensation (2) |
|
26,083 |
|
|
|
39,922 |
|
|
|
88,923 |
|
|
|
88,974 |
|
Extinguishment and modification of debt (3) |
|
— |
|
|
|
3,562 |
|
|
|
188,433 |
|
|
|
657,226 |
|
Adjusted Net
Loss |
$ |
(268,299 |
) |
|
$ |
(801,399 |
) |
|
$ |
(1,507,037 |
) |
|
$ |
(2,184,657 |
) |
Diluted
weighted-average shares outstanding - Net loss and Adjusted Net
Loss |
|
420,798,538 |
|
|
|
370,016,479 |
|
|
|
419,224,710 |
|
|
|
356,591,143 |
|
Diluted loss
per share |
$ |
(0.70 |
) |
|
$ |
(2.29 |
) |
|
$ |
(4.26 |
) |
|
$ |
(8.23 |
) |
Adjusted
EPS |
$ |
(0.64 |
) |
|
$ |
(2.17 |
) |
|
$ |
(3.59 |
) |
|
$ |
(6.13 |
) |
|
|
|
|
|
|
|
|
(1) Non-cash deferred
compensation expenses related to the crew pension plan and other
crew expenses, which are included in payroll and related expense
and other income (expense), net. |
(2) Non-cash
share-based compensation expenses related to equity awards, which
are included in marketing, general and administrative expense and
payroll and related expense. |
(3) Losses on
extinguishment of debt and modification of debt are included in
interest expense, net. |
|
Norwegian
Cruise Line Holdings Ltd.Non-GAAP Reconciling
Information(Unaudited)
|
|
|
|
|
|
|
|
EBITDA and
Adjusted EBITDA were calculated as follows (in thousands): |
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Nine Months
Ended |
|
September 30, |
|
September 30, |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
Net
loss |
$ |
(295,394 |
) |
|
$ |
(845,885 |
) |
|
$ |
(1,787,429 |
) |
|
$ |
(2,933,866 |
) |
Interest
expense, net |
|
152,330 |
|
|
|
161,205 |
|
|
|
624,392 |
|
|
|
1,122,905 |
|
Income tax
(benefit) expense |
|
(10,705 |
) |
|
|
294 |
|
|
|
(7,179 |
) |
|
|
2,949 |
|
Depreciation
and amortization expense |
|
186,551 |
|
|
|
173,289 |
|
|
|
547,214 |
|
|
|
517,867 |
|
EBITDA |
|
32,782 |
|
|
|
(511,097 |
) |
|
|
(623,002 |
) |
|
|
(1,290,145 |
) |
|
|
|
|
|
|
|
|
Other
(income) expense, net (1) |
|
(31,461 |
) |
|
|
(4,720 |
) |
|
|
(100,572 |
) |
|
|
(57,464 |
) |
Other Non-GAAP Adjustments: |
|
|
|
|
|
|
|
Non-cash
deferred compensation (2) |
|
700 |
|
|
|
904 |
|
|
|
2,098 |
|
|
|
2,714 |
|
Non-cash
share-based compensation (3) |
|
26,083 |
|
|
|
39,922 |
|
|
|
88,923 |
|
|
|
88,974 |
|
Adjusted
EBITDA |
$ |
28,104 |
|
|
$ |
(474,991 |
) |
|
$ |
(632,553 |
) |
|
$ |
(1,255,921 |
) |
|
|
|
|
|
|
|
|
(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 and 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. |
_______________________________1 See
“Terminology”, “Non-GAAP Financial Measures” and “Outlook” below
for additional information about Adjusted Net Loss, Adjusted EPS,
Adjusted EBITDA, Adjusted Free Cash Flow and Net Yield.
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