Full Year 2023 Highlights:
- Generated total revenue of
$8.5 billion , a 32% increase compared to the same period in 2019, with GAAP net income of$166.2 million , or EPS of$0.39 returning to full year profitability for the first time since 2019. - Achieved Adjusted EBITDA of
$1.861 billion in line with guidance of$1.860 billion and Adjusted EPS of$0.70 , which is inclusive of a$0.07 foreign currency negative impact. Full year performance was driven by solid revenue growth and continued focus on cost reduction and efficiencies.1 - The Company’s ongoing margin enhancement initiative drove improvement in operating costs. Gross Cruise Costs per Capacity Day was approximately
$301 for the year. Adjusted Net Cruise Costs excluding Fuel per Capacity Day was approximately$154 , and 21% less than the same period in 2022. This represents four quarters of continuous year-over-year improvement on this metric. - Occupancy was 102.9% for the year, in line with guidance of 102.6%, and total revenue per Passenger Cruise Day increased approximately 17%, or 18% in Constant Currency, compared to the same period in 2019.
- Announced a revamped climate action strategy including interim greenhouse gas intensity reduction targets of 10% by 2026 and 25% by 2030 compared to a 2019 baseline with intensity measured on a per Capacity Day basis.
- Successfully took delivery of three ships, Oceania Cruises’ Vista, Norwegian’s Viva and Regent’s Seven Seas Grandeur, the most deliveries in a single year in the Company’s history.
________________________
1 See “Terminology”, “Non-GAAP Financial Measures” and “Outlook” below for additional information about Adjusted EPS, Adjusted EBITDA and other non-GAAP financial measures.
Recent Highlights
- Expected refinancing of our
$650 million backstop commitment from a secured to unsecured commitment. Additionally, as part of this refinancing, expected repayment of our$250 million 9.75% senior secured notes due 2028, our highest interest rate debt.2 - We have continued to see exceptional demand for our Norwegian Cruise Line brand, with bookings and pricing at higher levels than 2023 for all four quarters of 2024.
Oceania Cruises andRegent Seven Seas Cruises also continue to see strong demand across all geographies with the exception of redeployed itineraries due to cancellations in theMiddle East andRed Sea .
________________________
2 Refinancing terms have been agreed to, with effectiveness subject to approval by our Board of Directors expected in early March.
2024 Outlook
- Entered the year at all-time high booked position and pricing for 2024 voyages.
- Net Yield is expected to increase approximately 5.5% as-reported and approximately 5.4% in Constant Currency versus 2023.
- In 2024 Adjusted Net Cruise Costs Excluding Fuel per Capacity Day is expected to be
$159 , increasing 3.4% in Constant Currency, which includes an approximately 325 basis points impact of increased Dry-dock days and related costs in the year. Excluding this, Adjusted Net Cruise Cost Excluding Fuel per Capacity Day would be essentially flat year-over-year. - Adjusted EBITDA is expected to be approximately
$2.2 billion , Adjusted Net Income is expected to be approximately$635 million , and Adjusted EPS is expected to be approximately$1.23 , an increase of 76% over 2023 results. This Adjusted EPS takes into consideration ~516 million dilutive shares, reflecting the expected accounting treatment of our exchangeable notes.
“Norwegian Cruise
“Looking ahead, we are determined to capitalize on our recent achievements and take advantage of the positive momentum and strong demand for cruise which resulted in turning the year at all-time highs in both our booked position and pricing. Our team is looking forward to showcasing our world-class fleet, delivering exceptional experiences, and surpassing the expectations of the guests we will welcome on board in 2024 and beyond,” continued Sommer.
Business, Operations and Booking Environment Update
The Company continues to experience healthy consumer demand and is at an all-time high booked position and pricing reflective of some of the best booking weeks in the Company’s history beginning with Black Friday and Cyber Monday. Additionally, onboard revenue per Passenger Cruise Day remains robust, up 20% in the quarter compared to 2019, with broad-based strength across all revenue streams. The Company’s advance ticket sales balance, including the long-term portion, ended 2023 at a year-end record of
As a result of the ongoing conflict in
Pricing growth in the fourth quarter was also strong with total revenue per Passenger Cruise Day up approximately 21%, with capacity growth of 17% compared to 2019. Total revenue was up approximately 34% in the fourth quarter versus 2019. Gross margin per Capacity Day was approximately
The Company once again demonstrated continued progress on its ongoing margin enhancement initiative and efforts to maximize revenue opportunities and rightsize its cost base. Gross Cruise Costs per Capacity Day was approximately
For the full year 2024, the Company expects Net Yield growth to be strong at approximately 5.4% on a Constant Currency basis compared to 2023. This growth is driven by exceptional demand for
________________________
3
Liquidity and Financial Position
The Company is committed to prioritizing efforts to optimize its balance sheet and reduce leverage. As of
At year-end, liquidity was
“Throughout the year, we successfully implemented measures to rightsize our cost base. Notably, the fourth quarter of 2023 marked our fourth consecutive quarter of improved Adjusted Net Cruise Costs Excluding Fuel per Capacity Day, this resulted in a substantial 21% reduction in 2023 compared to 2022,” said
Kempa continued, “additionally, we made important advancements towards reducing leverage and de-risking our balance sheet during 2023. We repaid
Full Year 2023 Results
GAAP net income was
Total revenue per Passenger Cruise Day increased approximately 17%, or approximately 18% on a Constant Currency basis compared to 2019. Gross margin per Capacity Day decreased approximately 11% on a reported, or approximately 10% on a Constant Currency basis, compared to 2019. Net Yield increased 4.6% on a Constant Currency basis compared to 2019.
Gross Cruise Cost per Capacity Day was
Fourth Quarter 2023 Results
GAAP net loss was
Gross Cruise Costs per Capacity Day was approximately
The Company reported fuel expense of
Interest expense, net was
Other income (expense), net was an expense of
Outlook and Guidance
In addition to announcing the results for the fourth quarter and full year 2023, the Company also provided guidance for the first quarter and full year 2024, along with accompanying sensitivities. The Company does not provide certain estimated future results on a GAAP basis because the Company is unable to predict, with reasonable certainty, the future movement of foreign exchange rates or the future impact of certain gains and charges. These items are uncertain and will depend on several factors, including industry conditions, and could be material to the Company’s results computed in accordance with GAAP. The Company has not provided reconciliations between the Company’s 2024 guidance and the most directly comparable GAAP measures because it would be too difficult to prepare a reliable
2024 Guidance | ||||||
First Quarter 2024 | Full Year 2024 | |||||
As Reported | Constant Currency | As Reported | Constant Currency | |||
Net Yield | ~15.8% ~ | ~15.5% ~ | ~5.5% | ~5.4% | ||
Adjusted Excluding Fuel per Capacity Day1 | ~3.5% | ~3.2% | ~3.5% | ~3.4% | ||
Capacity Days | ~5.85 million | ~23.50 million | ||||
Occupancy | ~104.8% | ~105.1% | ||||
Adjusted EBITDA | ||||||
Adjusted Net Income | ~ | ~ | ||||
Adjusted EPS2 | ||||||
Diluted Weighted-Average Shares Outstanding3 | ~431 million | ~516 million | ||||
Depreciation and Amortization | ||||||
Adjusted Interest Expense, net4 | ||||||
Effect of a 1% change in Net Yield on Adjusted EBITDA / Adjusted EPS | ~ | ~ ~ | ||||
Effect of a Cruise Cost Excluding Fuel per Capacity Day on Adjusted EBITDA / Adjusted EPS |
________________________
(1) Q1 2024 includes an approximate 350 basis point, or
(2) Based on guidance and using diluted weighted-average shares outstanding of approximately 431 million for the first quarter of 2024 and 516 million for full year 2024. Adjusted EPS for the full year 2024 assumes that all four of the Company’s exchangeable notes are fully dilutive and therefore excludes approximately
(3) Q1 2024 assumes all four of the Company’s exchangeable notes are anti-dilutive and therefore are not included in diluted weighted-average shares outstanding. Full year 2024 assumes all four of the Company’s exchangeable notes are dilutive and are included in the diluted weighted-average shares outstanding.
(4) Based on the Company’s
The following reflects the foreign currency exchange rates the Company used in its first quarter and full year 2024 guidance.
Current Guidance | |||
Euro | $ | 1.08 | |
British pound | $ | 1.27 | |
Australian Dollar | $ | 0.66 | |
Canadian Dollar | $ | 0.74 |
Fuel
The following reflects the Company’s expectations regarding fuel consumption and pricing, along with accompanying sensitivities.
First Quarter 2024 | Full Year 2024 | ||||||
Fuel consumption in metric tons1 | 270,000 | 995,000 | |||||
Fuel price per metric ton, net of hedges2 | $ | 740 | $ | 695 | |||
Effect on Adjusted EPS of a 10% change in fuel prices, net of hedges | $ | 0.03 | $ | 0.06 |
________________________
(1) Fuel consumption for the full year 2024 is expected to be split approximately evenly between heavy fuel oil and marine gas oil.
(2) Fuel prices are based on forward curves as of 2/19/2024.
The Company currently has hedged approximately 53% and 21% of its total projected metric tons of fuel consumption for 2024 and 2025, respectively. The following table provides amounts hedged and price per metric ton of heavy fuel oil (“HFO”) and marine gas oil (“MGO”).
2024 | 2025 | ||||||
% of HFO Consumption Hedged1 | 40 | % | 21 | % | |||
Blended HFO Hedge Price / Metric Ton | $ | 398 | $ | 402 | |||
% of MGO Consumption Hedged | 65 | % | 21 | % | |||
Blended MGO Hedge Price / Metric Ton | $ | 745 | $ | 738 | |||
Total % of Consumption Hedged | 53 | % | 21 | % |
________________________
(1) Hedged derivatives include accounting hedges as well as economic hedges.
Capital Expenditures
Non-newbuild capital expenditures for the fourth quarter of 2023 were
Newbuild-related capital expenditures, net of export credit financing, are expected to be approximately
Company Updates and Other Business Highlights:
Fleet and Brand Updates
Norwegian Cruise Line opened for sale the all-new Norwegian Aqua, the first of the next-generation Prima Class Plus. Learn more here.- Norwegian Cruise Line’s all-new Norwegian Viva completed her exclusive christening voyage following a star-studded event in
Miami . Learn more here. - Regent Seven Seas Cruises® took delivery of the highly anticipated Seven Seas Grandeur™, the sixth ship of the World’s Most Luxurious Fleet®. The ship was christened at a gala celebration in
Miami which featured the unveiling of the first Fabergé egg to reside permanently at sea. Learn more here and here. Oceania Cruises announced inspiring new voyages on the Riviera, exploring lesser-known ports across the African and Asian Continents. Learn more here.- Regent Seven Seas Cruises® announced a collection of six unique Immersive Overnights voyages where each port of call features an overnight stay – allowing for deeper exploration and discovery in much-loved destinations. Learn more here.
- Regent Seven Seas Cruises® announced a landmark partnership with the iconic Aston Martin Aramco Formula One® Team, becoming the team’s first official Global Cruise
Line Partner . Learn more here.
Other Highlights
Norwegian Cruise Line Holdings was selected by Newsweek as one of America’s Greatest Workplaces for Diversity 2024.
Conference Call
The Company has scheduled a conference call for
About Norwegian Cruise Line Holdings Ltd.
Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH) is a leading global cruise company which operates
Terminology
Adjusted EBITDA. EBITDA adjusted for other income (expense), net and other supplemental adjustments.
Adjusted EPS. Adjusted Net Income (Loss) divided by the number of diluted weighted-average shares outstanding.
Adjusted Gross Margin. Gross margin adjusted for payroll and related, fuel, food, other and ship depreciation. Gross margin is calculated pursuant to GAAP as total revenue less total cruise operating expense and ship depreciation.
Adjusted Free Cash Flow. Free Cash Flow adjusted for proceeds from ship construction financing facilities and other supplemental adjustments.
Adjusted Net Cruise Cost Excluding Fuel.
Adjusted Net Income (Loss). Net income (loss), adjusted for the effect of dilutive securities and other supplemental adjustments.
Berths. Double occupancy capacity per cabin (single occupancy per studio cabin) even though many cabins can accommodate three or more passengers.
Capacity Days. Berths available for sale multiplied by the number of cruise days for the period for ships in service.
Constant Currency. A calculation whereby foreign currency-denominated revenues and expenses in a period are converted at the
Dry-dock. A process whereby a ship is positioned in a large basin where all of the fresh/sea water is pumped out in order to carry out cleaning and repairs of those parts of a ship which are below the water line.
EBITDA. Earnings before interest, taxes, and depreciation and amortization.
EPS. Diluted earnings (loss) per share.
Free Cash Flow. Net cash provided by operating activities less capital expenditures.
GAAP. Generally accepted accounting principles in the
Gross Cruise Cost. The sum of total cruise operating expense and marketing, general and administrative expense.
Net Cruise Cost Excluding Fuel.
Net Debt. Long-term debt, including current portion, less cash and cash equivalents.
Net Leverage. Net Debt divided by Adjusted EBITDA.
Net Per Diem. Adjusted Gross Margin divided by Passenger Cruise Days.
Net Yield. Adjusted Gross Margin per Capacity Day.
Occupancy, Occupancy Percentage or Load Factor. The ratio of Passenger Cruise Days to Capacity Days. A percentage in excess of 100% indicates that three or more passengers occupied some cabins.
Passenger Cruise Days. The number of passengers carried for the period, multiplied by the number of days in their respective cruises.
Revolving Loan Facility.
Non-GAAP Financial Measures
We use certain non-GAAP financial measures, such as Adjusted Gross Margin, Net Yield,
As our business includes the sourcing of passengers and deployment of vessels outside of the
We believe that Adjusted EBITDA is appropriate as a supplemental financial measure as it is used by management to assess operating performance. We also believe that Adjusted EBITDA is a useful measure in determining our performance as it reflects certain operating drivers of our business, such as sales growth, operating costs, marketing, general and administrative expense and other operating income and expense. In addition, management uses Adjusted EBITDA as a performance measure for our incentive compensation. Adjusted EBITDA is not a defined term under GAAP nor is it intended to be a measure of liquidity or cash flows from operations or a measure comparable to net income (loss), as it does not take into account certain requirements such as capital expenditures and related depreciation, principal and interest payments and tax payments and it includes other supplemental adjustments.
In addition, Adjusted Net Income (Loss) and Adjusted EPS are non-GAAP financial measures that exclude certain amounts and are used to supplement GAAP net income (loss) and EPS. We use Adjusted Net Income (Loss) and Adjusted EPS as key performance measures of our earnings performance. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting and analyzing future periods. These non-GAAP financial measures also facilitate management’s internal comparison to our historical performance. In addition, management uses Adjusted EPS as a performance measure for our incentive compensation. The amounts excluded in the presentation of these non-GAAP financial measures may vary from period to period; accordingly, our presentation of Adjusted Net Income (Loss) and Adjusted EPS may not be indicative of future adjustments or results. For example, for the year ended
Net Leverage and Net Debt are performance measures that we believe provide management and investors a more complete understanding of our leverage position and borrowing capacity after factoring in cash and cash equivalents.
Management believes Free Cash Flow and Adjusted Free Cash Flow provide investors with useful financial metrics to assess our ability to service and repay our debt and to pursue opportunities to enhance our growth after making the capital investments required to support ongoing business operations and long-term value creation. Free Cash Flow and Adjusted Free Cash Flow do not represent the residual cash flow available for discretionary expenditures as they exclude certain mandatory expenditures such as repayment of maturing debt. Management uses Free Cash Flow and Adjusted Free Cash Flow as measures to assess both business performance and overall liquidity.
You are encouraged to evaluate each adjustment used in calculating our non-GAAP financial measures and the reasons we consider our non-GAAP financial measures appropriate for supplemental analysis. In evaluating our non-GAAP financial measures, you should be aware that in the future we may incur expenses similar to the adjustments in our presentation. Our non-GAAP financial measures have limitations as analytical tools, and you should not consider these measures in isolation or as a substitute for analysis of our results as reported under GAAP. Our presentation of our non-GAAP financial measures should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. Our non-GAAP financial measures may not be comparable to other companies. Please see a historical reconciliation of these measures to the most comparable GAAP measure presented in our consolidated financial statements below.
Cautionary Statement Concerning Forward-Looking Statements
Some of the statements, estimates or projections contained in this release are “forward-looking statements” within the meaning of the
Investor Relations & Media Contacts
(786) 812-3233
InvestorRelations@nclcorp.com
NORWEGIAN CRUISE LINE HOLDINGS LTD. CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (in thousands, except share and per share data) | ||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Revenue | ||||||||||||||||
Passenger ticket | $ | 1,333,057 | $ | 1,011,544 | $ | 5,753,966 | $ | 3,253,799 | ||||||||
Onboard and other | 653,399 | 507,585 | 2,795,958 | 1,589,961 | ||||||||||||
Total revenue | 1,986,456 | 1,519,129 | 8,549,924 | 4,843,760 | ||||||||||||
Cruise operating expense | ||||||||||||||||
Commissions, transportation and other | 420,714 | 337,683 | 1,883,279 | 1,034,629 | ||||||||||||
Onboard and other | 129,633 | 102,487 | 599,904 | 357,932 | ||||||||||||
Payroll and related | 325,882 | 297,942 | 1,262,119 | 1,088,639 | ||||||||||||
Fuel | 186,830 | 183,143 | 716,833 | 686,825 | ||||||||||||
Food | 86,735 | 86,324 | 358,310 | 263,807 | ||||||||||||
Other | 172,019 | 211,880 | 648,142 | 835,254 | ||||||||||||
Total cruise operating expense | 1,321,813 | 1,219,459 | 5,468,587 | 4,267,086 | ||||||||||||
Other operating expense | ||||||||||||||||
Marketing, general and administrative | 328,258 | 378,527 | 1,341,858 | 1,379,105 | ||||||||||||
Depreciation and amortization | 212,055 | 202,112 | 808,568 | 749,326 | ||||||||||||
Total other operating expense | 540,313 | 580,639 | 2,150,426 | 2,128,431 | ||||||||||||
Operating income (loss) | 124,330 | (280,969 | ) | 930,911 | (1,551,757 | ) | ||||||||||
Non-operating income (expense) | ||||||||||||||||
Interest expense, net | (197,381 | ) | (177,120 | ) | (727,531 | ) | (801,512 | ) | ||||||||
Other income (expense), net | (35,266 | ) | (24,006 | ) | (40,204 | ) | 76,566 | |||||||||
Total non-operating income (expense) | (232,647 | ) | (201,126 | ) | (767,735 | ) | (724,946 | ) | ||||||||
Net income (loss) before income taxes | (108,317 | ) | (482,095 | ) | 163,176 | (2,276,703 | ) | |||||||||
Income tax benefit (expense) | 1,832 | (385 | ) | 3,002 | 6,794 | |||||||||||
Net income (loss) | $ | (106,485 | ) | $ | (482,480 | ) | $ | 166,178 | $ | (2,269,909 | ) | |||||
Weighted-average shares outstanding | ||||||||||||||||
Basic | 425,426,293 | 421,400,765 | 424,424,962 | 419,773,195 | ||||||||||||
Diluted | 425,426,293 | 421,400,765 | 427,400,849 | 419,773,195 | ||||||||||||
Earnings (loss) per share | ||||||||||||||||
Basic | $ | (0.25 | ) | $ | (1.14 | ) | $ | 0.39 | $ | (5.41 | ) | |||||
Diluted | $ | (0.25 | ) | $ | (1.14 | ) | $ | 0.39 | $ | (5.41 | ) |
NORWEGIAN CRUISE LINE HOLDINGS LTD. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) (in thousands) | ||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Net income (loss) | $ | (106,485 | ) | $ | (482,480 | ) | $ | 166,178 | $ | (2,269,909 | ) | |||||
Other comprehensive income (loss): | ||||||||||||||||
Shipboard Retirement Plan | (3,604 | ) | 6,224 | (3,413 | ) | 8,889 | ||||||||||
Cash flow hedges: | ||||||||||||||||
Net unrealized gain (loss) | (36,606 | ) | 142,725 | (1,773 | ) | (104,017 | ) | |||||||||
Amount realized and reclassified into earnings | (12,283 | ) | (21,526 | ) | (26,173 | ) | (96,865 | ) | ||||||||
Total other comprehensive income (loss) | (52,493 | ) | 127,423 | (31,359 | ) | (191,993 | ) | |||||||||
Total comprehensive income (loss) | $ | (158,978 | ) | $ | (355,057 | ) | $ | 134,819 | $ | (2,461,902 | ) |
NORWEGIAN CRUISE LINE HOLDINGS LTD. CONSOLIDATED BALANCE SHEETS (Unaudited) (in thousands, except share data) | ||||||||
2023 | 2022 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 402,415 | $ | 946,987 | ||||
Accounts receivable, net | 280,271 | 326,272 | ||||||
Inventories | 157,646 | 148,717 | ||||||
Prepaid expenses and other assets | 472,816 | 450,893 | ||||||
Total current assets | 1,313,148 | 1,872,869 | ||||||
Property and equipment, net | 16,433,292 | 14,516,366 | ||||||
98,134 | 98,134 | |||||||
Trade names | 500,525 | 500,525 | ||||||
Other long-term assets | 1,147,891 | 1,569,800 | ||||||
Total assets | $ | 19,492,990 | $ | 18,557,694 | ||||
Liabilities and shareholders’ equity | ||||||||
Current liabilities: | ||||||||
Current portion of long-term debt | $ | 1,744,778 | $ | 991,128 | ||||
Accounts payable | 174,338 | 228,742 | ||||||
Accrued expenses and other liabilities | 1,058,919 | 1,318,460 | ||||||
Advance ticket sales | 3,060,666 | 2,516,521 | ||||||
Total current liabilities | 6,038,701 | 5,054,851 | ||||||
Long-term debt | 12,314,147 | 12,630,402 | ||||||
Other long-term liabilities | 839,335 | 803,850 | ||||||
Total liabilities | 19,192,183 | 18,489,103 | ||||||
Commitments and contingencies | ||||||||
Shareholders’ equity: | ||||||||
Ordinary shares, | 425 | 421 | ||||||
Additional paid-in capital | 7,708,957 | 7,611,564 | ||||||
Accumulated other comprehensive income (loss) | (508,438 | ) | (477,079 | ) | ||||
Accumulated deficit | (6,900,137 | ) | (7,066,315 | ) | ||||
Total shareholders’ equity | 300,807 | 68,591 | ||||||
Total liabilities and shareholders’ equity | $ | 19,492,990 | $ | 18,557,694 |
NORWEGIAN CRUISE LINE HOLDINGS LTD. CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (in thousands) | ||||||||
Year Ended | ||||||||
2023 | 2022 | |||||||
Cash flows from operating activities | ||||||||
Net income (loss) | $ | 166,178 | $ | (2,269,909 | ) | |||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||
Depreciation and amortization expense | 883,236 | 810,053 | ||||||
Loss on derivatives | 13,760 | 8,618 | ||||||
Loss on extinguishment of debt | 6,701 | 188,799 | ||||||
Provision for bad debts and inventory obsolescence | 6,190 | 13,609 | ||||||
Gain on involuntary conversion of assets | (6,852 | ) | (2,300 | ) | ||||
Share-based compensation expense | 118,940 | 113,563 | ||||||
Net foreign currency adjustments on euro-denominated debt | 8,188 | (10,795 | ) | |||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable, net | 39,649 | 828,661 | ||||||
Inventories | (11,042 | ) | (33,609 | ) | ||||
Prepaid expenses and other assets | 410,266 | (602,258 | ) | |||||
Accounts payable | (50,976 | ) | (16,196 | ) | ||||
Accrued expenses and other liabilities | (82,202 | ) | 252,837 | |||||
Advance ticket sales | 503,678 | 928,947 | ||||||
Net cash provided by operating activities | 2,005,714 | 210,020 | ||||||
Cash flows from investing activities | ||||||||
Additions to property and equipment, net | (2,750,362 | ) | (1,783,857 | ) | ||||
Proceeds from maturities of short-term investments | — | 240,000 | ||||||
Cash paid on settlement of derivatives | (162,942 | ) | (224,137 | ) | ||||
Other | 16,161 | 12,090 | ||||||
Net cash used in investing activities | (2,897,143 | ) | (1,755,904 | ) | ||||
Cash flows from financing activities | ||||||||
Repayments of long-term debt | (3,758,234 | ) | (1,770,172 | ) | ||||
Proceeds from long-term debt | 4,322,941 | 3,003,003 | ||||||
Proceeds from employee related plans | 5,307 | 5,267 | ||||||
Net share settlement of restricted share units | (26,860 | ) | (20,987 | ) | ||||
Early redemption premium | — | (172,012 | ) | |||||
Deferred financing fees | (196,297 | ) | (58,875 | ) | ||||
Net cash provided by financing activities | 346,857 | 986,224 | ||||||
Net decrease in cash and cash equivalents | (544,572 | ) | (559,660 | ) | ||||
Cash and cash equivalents at beginning of the period | 946,987 | 1,506,647 | ||||||
Cash and cash equivalents at end of the period | $ | 402,415 | $ | 946,987 |
NORWEGIAN CRUISE LINE HOLDINGS LTD.
NON-GAAP RECONCILING INFORMATION
(Unaudited)
The following table sets forth selected statistical information:
Three Months Ended | Year Ended | ||||||||
2023 | 2019 | 2023 | 2019 | ||||||
Passengers carried | 648,893 | 640,810 | 2,716,546 | 2,695,718 | |||||
Passenger Cruise Days | 5,856,413 | 5,260,764 | 23,311,672 | 20,637,949 | |||||
Capacity Days | 5,903,305 | 5,035,367 | 22,652,588 | 19,233,459 | |||||
Occupancy Percentage | 99.2 | % | 104.5 | % | 102.9 | % | 107.3 | % | |
NORWEGIAN CRUISE LINE HOLDINGS LTD.
NON-GAAP RECONCILING INFORMATION
(Unaudited)
Adjusted Gross Margin, Net Per Diem, and Net Yield were calculated as follows (in thousands, except Net Yield, Net Per Diem, Capacity Days, Passenger Cruise Days, per Passenger Cruise Day and Capacity Day data):
Three Months Ended | Years Ended | |||||||||||||||||
2023 | 2023 | |||||||||||||||||
Constant Currency | Constant Currency | |||||||||||||||||
2023 | compared to 2019 | 2019 | 2023 | compared to 2019 | 2019 | |||||||||||||
Total revenue | $ | 1,986,456 | $ | 1,993,431 | $ | 1,480,618 | $ | 8,549,924 | $ | 8,585,051 | $ | 6,462,376 | ||||||
Less: | ||||||||||||||||||
Total cruise operating expense | 1,321,813 | 1,324,841 | 887,422 | 5,468,587 | 5,490,535 | 3,663,261 | ||||||||||||
Ship depreciation | 198,012 | 198,012 | 149,904 | 753,629 | 753,629 | 587,677 | ||||||||||||
Gross margin | 466,631 | 470,578 | 443,292 | 2,327,708 | 2,340,887 | 2,211,438 | ||||||||||||
Ship depreciation | 198,012 | 198,012 | 149,904 | 753,629 | 753,629 | 587,677 | ||||||||||||
Payroll and related | 325,882 | 325,916 | 235,832 | 1,262,119 | 1,262,668 | 924,157 | ||||||||||||
Fuel | 186,830 | 186,849 | 111,875 | 716,833 | 716,966 | 409,602 | ||||||||||||
Food | 86,735 | 87,248 | 56,297 | 358,310 | 360,223 | 222,602 | ||||||||||||
Other | 172,019 | 173,023 | 135,154 | 648,142 | 659,986 | 591,341 | ||||||||||||
Adjusted Gross Margin | $ | 1,436,109 | $ | 1,441,626 | $ | 1,132,354 | $ | 6,066,741 | $ | 6,094,359 | $ | 4,946,817 | ||||||
Passenger Cruise Days | 5,856,413 | 5,856,413 | 5,260,764 | 23,311,672 | 23,311,672 | 20,637,949 | ||||||||||||
Capacity Days | 5,903,305 | 5,903,305 | 5,035,367 | 22,652,588 | 22,652,588 | 19,233,459 | ||||||||||||
Total revenue per Passenger Cruise Day | $ | 339.19 | $ | 340.38 | $ | 281.45 | $ | 366.77 | $ | 368.27 | $ | 313.13 | ||||||
Gross margin per Passenger Cruise Day | $ | 79.68 | $ | 80.35 | $ | 84.26 | $ | 99.85 | $ | 100.42 | $ | 107.15 | ||||||
Net Per Diem | $ | 245.22 | $ | 246.16 | $ | 215.25 | $ | 260.24 | $ | 261.43 | $ | 239.70 | ||||||
Gross margin per Capacity Day | $ | 79.05 | $ | 79.71 | $ | 88.04 | $ | 102.76 | $ | 103.34 | $ | 114.98 | ||||||
Net Yield | $ | 243.27 | $ | 244.21 | $ | 224.88 | $ | 267.82 | $ | 269.04 | $ | 257.20 | ||||||
NORWEGIAN CRUISE LINE HOLDINGS LTD.
NON-GAAP RECONCILING INFORMATION
(Unaudited)
Gross Cruise Cost,
Three Months Ended | Years Ended | |||||||||||||||||
2023 | 2023 | |||||||||||||||||
Constant Currency | Constant Currency | |||||||||||||||||
2023 | compared to 2019 | 2019 | 2023 | compared to 2019 | 2019 | |||||||||||||
Total cruise operating expense | $ | 1,321,813 | $ | 1,324,841 | $ | 887,422 | $ | 5,468,587 | $ | 5,490,535 | $ | 3,663,261 | ||||||
Marketing, general and administrative expense | 328,258 | 329,071 | 229,859 | 1,341,858 | 1,345,043 | 974,850 | ||||||||||||
Gross Cruise Cost | 1,650,071 | 1,653,912 | 1,117,281 | 6,810,445 | 6,835,578 | 4,638,111 | ||||||||||||
Less: | ||||||||||||||||||
Commissions, transportation and other expense | 420,714 | 422,172 | 263,038 | 1,883,279 | 1,890,788 | 1,120,886 | ||||||||||||
Onboard and other expense | 129,633 | 129,633 | 85,226 | 599,904 | 599,904 | 394,673 | ||||||||||||
1,099,724 | 1,102,107 | 769,017 | 4,327,262 | 4,344,886 | 3,122,552 | |||||||||||||
Less: Fuel expense | 186,830 | 186,849 | 111,875 | 716,833 | 716,966 | 409,602 | ||||||||||||
Net Cruise Cost Excluding Fuel | 912,894 | 915,258 | 657,142 | 3,610,429 | 3,627,920 | 2,712,950 | ||||||||||||
Less Other Non-GAAP Adjustments: | ||||||||||||||||||
Non-cash deferred compensation (1) | 578 | 578 | 534 | 2,312 | 2,312 | 2,135 | ||||||||||||
Non-cash share-based compensation (2) | 22,686 | 22,686 | 12,985 | 118,940 | 118,940 | 95,055 | ||||||||||||
Severance payments and other fees (3) | — | — | 6,514 | — | — | 6,514 | ||||||||||||
Redeployment of Norwegian Joy (4) | — | — | — | — | — | 7,051 | ||||||||||||
Adjusted Net Cruise Cost Excluding Fuel | $ | 889,630 | $ | 891,994 | $ | 637,109 | $ | 3,489,177 | $ | 3,506,668 | $ | 2,602,195 | ||||||
Capacity Days | 5,903,305 | 5,903,305 | 5,035,367 | 22,652,588 | 22,652,588 | 19,233,459 | ||||||||||||
Gross Cruise Cost per Capacity Day | $ | 279.52 | $ | 280.17 | $ | 221.89 | $ | 300.65 | $ | 301.76 | $ | 241.15 | ||||||
$ | 186.29 | $ | 186.69 | $ | 152.72 | $ | 191.03 | $ | 191.81 | $ | 162.35 | |||||||
Net Cruise Cost Excluding Fuel per Capacity Day | $ | 154.64 | $ | 155.04 | $ | 130.51 | $ | 159.38 | $ | 160.15 | $ | 141.05 | ||||||
Adjusted Net Cruise Cost Excluding Fuel per Capacity Day | $ | 150.70 | $ | 151.10 | $ | 126.53 | $ | 154.03 | $ | 154.80 | $ | 135.30 |
________________________
(1) Non-cash deferred compensation expenses related to the crew pension plan and other crew expenses, which are included in payroll and related expense.
(2) Non-cash share-based compensation expenses related to equity awards, which are included in marketing, general and administrative expense and payroll and related expense.
(3) Severance payments related to restructuring costs are included in marketing, general and administrative expense.
(4) Expenses related to the redeployment of Norwegian Joy from
NON-GAAP RECONCILING INFORMATION
(Unaudited)
Gross Cruise Cost,
Three Months Ended | Three Months Ended | Three Months Ended | Three Months Ended | Year Ended | |||||||||||
2023 | 2023 | 2023 | 2022 | 2022 | |||||||||||
Total cruise operating expense | $ | 1,482,746 | $ | 1,383,610 | $ | 1,280,418 | $ | 1,219,459 | $ | 4,267,086 | |||||
Marketing, general and administrative expense | 325,365 | 352,222 | 336,013 | 378,527 | 1,379,105 | ||||||||||
Gross Cruise Cost | 1,808,111 | 1,735,832 | 1,616,431 | 1,597,986 | 5,646,191 | ||||||||||
Less: | |||||||||||||||
Commissions, transportation and other expense | 546,026 | 506,855 | 409,684 | 337,683 | 1,034,629 | ||||||||||
Onboard and other expense | 188,694 | 161,880 | 119,697 | 102,487 | 357,932 | ||||||||||
1,073,391 | 1,067,097 | 1,087,050 | 1,157,816 | 4,253,630 | |||||||||||
Less: Fuel expense | 170,893 | 164,242 | 194,868 | 183,143 | 686,825 | ||||||||||
Net Cruise Cost Excluding Fuel | 902,498 | 902,855 | 892,182 | 974,673 | 3,566,805 | ||||||||||
Less Other Non-GAAP Adjustments: | |||||||||||||||
Non-cash deferred compensation (1) | 578 | 578 | 578 | 699 | 2,797 | ||||||||||
Non-cash share-based compensation (2) | 23,563 | 44,536 | 28,155 | 24,640 | 113,563 | ||||||||||
Restructuring costs (3) | — | — | — | 12,140 | 12,140 | ||||||||||
Adjusted Net Cruise Cost Excluding Fuel | $ | 878,357 | $ | 857,741 | $ | 863,449 | $ | 937,194 | $ | 3,438,305 | |||||
Capacity Days | 5,820,448 | 5,513,288 | 5,415,547 | 5,060,866 | 17,566,069 | ||||||||||
Gross Cruise Cost per Capacity Day | $ | 310.65 | $ | 314.85 | $ | 298.48 | $ | 315.75 | $ | 321.43 | |||||
$ | 184.42 | $ | 193.55 | $ | 200.73 | $ | 228.78 | $ | 242.15 | ||||||
Net Cruise Cost Excluding Fuel per Capacity Day | $ | 155.06 | $ | 163.76 | $ | 164.74 | $ | 192.59 | $ | 203.05 | |||||
Adjusted Net Cruise Cost Excluding Fuel per Capacity Day | $ | 150.91 | $ | 155.58 | $ | 159.44 | $ | 185.18 | $ | 195.74 |
________________________
(1) Non-cash deferred compensation expenses related to the crew pension plan and other crew expenses, which are included in payroll and related expense.
(2) Non-cash share-based compensation expenses related to equity awards, which are included in marketing, general and administrative expense and payroll and related expense.
(3) Restructuring costs related to workforce reductions are included in marketing, general and administrative expense.
NORWEGIAN CRUISE LINE HOLDINGS LTD.
NON-GAAP RECONCILING INFORMATION
(Unaudited)
Adjusted Net Income (Loss) and Adjusted EPS were calculated as follows (in thousands, except share and per share data):
Three Months Ended | Year Ended | ||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
Net income (loss) | $ | (106,485 | ) | $ | (482,480 | ) | $ | 166,178 | $ | (2,269,909 | ) | ||||
Non-GAAP Adjustments: | |||||||||||||||
Non-cash deferred compensation (1) | 1,010 | 1,012 | 4,039 | 4,048 | |||||||||||
Non-cash share-based compensation (2) | 22,686 | 24,640 | 118,940 | 113,563 | |||||||||||
Restructuring costs (3) | — | 12,140 | — | 12,140 | |||||||||||
Extinguishment and modification of debt (4) | 5,669 | 4,941 | 8,822 | 193,374 | |||||||||||
Adjusted Net Income (Loss) | $ | (77,120 | ) | $ | (439,747 | ) | $ | 297,979 | $ | (1,946,784 | ) | ||||
Diluted weighted-average shares outstanding - Net income (loss) and Adjusted Net Income (Loss) | 425,426,293 | 421,400,765 | 427,400,849 | 419,773,195 | |||||||||||
Diluted EPS | $ | (0.25 | ) | $ | (1.14 | ) | $ | 0.39 | $ | (5.41 | ) | ||||
Adjusted EPS | $ | (0.18 | ) | $ | (1.04 | ) | $ | 0.70 | $ | (4.64 | ) |
________________________
(1) Non-cash deferred compensation expenses related to the crew pension plan and other crew expenses, which are included in payroll and related expense and other income (expense), net.
(2) Non-cash share-based compensation expenses related to equity awards, which are included in marketing, general and administrative expense and payroll and related expense.
(3) Restructuring costs related to workforce reductions are included in marketing, general and administrative expense.
(4) Losses on extinguishments of debt and modification of debt are included in interest expense, net.
NORWEGIAN CRUISE LINE HOLDINGS LTD.
NON-GAAP RECONCILING INFORMATION
(Unaudited)
EBITDA and Adjusted EBITDA were calculated as follows (in thousands):
Three Months Ended | Year Ended | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Net income (loss) | $ | (106,485 | ) | $ | (482,480 | ) | $ | 166,178 | $ | (2,269,909 | ) | |||||
Interest expense, net | 197,381 | 177,120 | 727,531 | 801,512 | ||||||||||||
Income tax (benefit) expense | (1,832 | ) | 385 | (3,002 | ) | (6,794 | ) | |||||||||
Depreciation and amortization expense | 212,055 | 202,112 | 808,568 | 749,326 | ||||||||||||
EBITDA | 301,119 | (102,863 | ) | 1,699,275 | (725,865 | ) | ||||||||||
Other (income) expense, net (1) | 35,266 | 24,006 | 40,204 | (76,566 | ) | |||||||||||
Other Non-GAAP Adjustments: | ||||||||||||||||
Non-cash deferred compensation (2) | 578 | 699 | 2,312 | 2,797 | ||||||||||||
Non-cash share-based compensation (3) | 22,686 | 24,640 | 118,940 | 113,563 | ||||||||||||
Restructuring costs (4) | — | 12,140 | — | 12,140 | ||||||||||||
Adjusted EBITDA | $ | 359,649 | $ | (41,378 | ) | $ | 1,860,731 | $ | (673,931 | ) |
________________________
(1) Primarily consists of gains and losses, net for foreign currency remeasurements.
(2) Non-cash deferred compensation expenses related to the crew pension plan and other crew expenses, which are included in payroll and related expense.
(3) Non-cash share-based compensation expenses related to equity awards, which are included in marketing, general and administrative expense and payroll and related expense.
(4) Restructuring costs related to workforce reductions are included in marketing, general and administrative expense.
NORWEGIAN CRUISE LINE HOLDINGS LTD.
NON-GAAP RECONCILING INFORMATION
(Unaudited)
Net Debt was calculated as follows (in thousands):
2023 | |||
Long-term debt | $ | 12,314,147 | |
Current portion of long-term debt | 1,744,778 | ||
Total Debt | 14,058,925 | ||
Less: Cash and cash equivalents | 402,415 | ||
Net Debt | $ | 13,656,510 |
Free Cash Flow and Adjusted Free Cash Flow were calculated as follows (in thousands):
Year Ended | ||||
2023 | ||||
Net cash used in investing activities | $ | (2,897,143 | ) | |
Net cash provided by financing activities | $ | 346,857 | ||
Net cash provided by operating activities | $ | 2,005,714 | ||
Additions to property and equipment, net | (2,750,362 | ) | ||
Free Cash Flow | (744,648 | ) | ||
Cash paid on settlement of derivatives | (162,942 | ) | ||
Cash received on settlement of derivatives | 5,016 | |||
Newbuild related proceeds from long-term debt | 2,050,241 | |||
Adjusted Free Cash Flow | $ | 1,147,667 |
Source:
2024 GlobeNewswire, Inc., source