First Quarter 2023 Highlights:
- Total revenue of
$1.8 billion , GAAP net loss of$(159.3) million or EPS of$(0.38) . - Achieved Adjusted EBITDA of
$234 million and Adjusted EPS of$(0.30) , above guidance of$195 million and$(0.45) respectively. - Company met or exceeded guidance for all key metrics in the first quarter.
- Sequential Occupancy improvement to approximately 101.5% in the quarter, exceeding guidance of 100%.
- Total revenue per Passenger Cruise Day increased approximately 17.5% as-reported and 18.3% in constant currency, compared to the same period in 2019.
- Gross Cruise Costs per Capacity Day was approximately
$298 in the quarter. Adjusted Net Cruise Costs excluding Fuel per Capacity Day in constant currency of approximately$161 was better than guidance of$165 as certain efficiencies and cost savings from the Company’s ongoing margin enhancement initiative were realized earlier than anticipated. - Cumulative booked position for the remainder of 2023 continues to be at record levels and at higher pricing.
- Full year 2023 Adjusted EPS guidance improved to approximately
$0.75 reflecting first quarter outperformance partially offset by higher anticipated fuel costs and foreign exchange for the remainder of 2023. Adjusted EBITDA is still expected to be in the range of$1.8 to$1.95 billion .
CEO Retirement and Succession Plan
As previously announced,
“It has been an honor and privilege to lead the world-class team at
“On behalf of the entire team at
Sommer added, “We are embarking on an exciting new chapter with an industry-leading growth profile including one new ship for each of our brands in 2023, beginning with Oceania Cruises’ outstanding Vista which we took delivery of just last week. We are also focused on improving profitability and accelerating our financial recovery, while maintaining the superior service levels and the exceptional guest experience our loyal guests expect from our amazing brands as well as advancing our efforts to drive a positive impact on society and the environment through our Sail & Sustain program. We continue to experience healthy demand across the board as evidenced by our record booked position as well as robust onboard revenue generation.”
Business, Operations and Booking Environment Update
The Company continued its phased Occupancy ramp-up in the first quarter of 2023 achieving a 15-point sequential improvement to approximately 101.5%, exceeding guidance of approximately 100%. The phased Occupancy ramp-up is expected to be complete in the second quarter at approximately 105%. As planned, this is slightly lower than the second quarter of 2019, reflecting the Company’s strategic shift to longer, more immersive itineraries. Full year 2023 Occupancy, which reflects the phased voyage ramp-up, is expected to average 103.5%, consistent with prior guidance.
On the heels of a very strong WAVE season, the Company continues to experience strong consumer demand. Cumulative booked position for the remainder of 2023 is ahead of 2019 levels inclusive of the Company’s approximately 18% increase in capacity, at continued higher pricing. As of
Total revenue per Passenger Cruise Day was up approximately 17.5% as-reported and approximately 18.3% in constant currency in the first quarter of 2023 versus 2019. Looking ahead, full year guidance remains unchanged at Net Per Diem growth in the range of 9.0 to 10.5% and Net Yield growth in the range of 5.0 to 6.5%, both on a constant currency basis and compared to 2019.
The Company continues to focus on efforts to maximize revenue opportunities and right size its cost base in order to strengthen the foundation for sustained, profitable growth. Gross Cruise Costs per Capacity Day was approximately
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
The Company has taken the following additional action to enhance its liquidity profile and financial flexibility since its fourth quarter and full year 2022 earnings report:
- In
April 2023 , the Company increased its export-credit agency backed commitments by approximately €1.7 billion to finance improvements, changes and modifications to certain newbuilds, owners’ supplies associated with preparing these ships to enter service and related financing premiums. These changes include the previously communicated modification and enlargement of the last four Prima Class vessels which will increase their gross tonnage by up to 20% compared to Norwegian Prima and Norwegian Viva. This also includes modifications to create a Methanol-Ready configuration for the final two Prima Class vessels.
“As we continue to focus on rebuilding our financial track record, we are pleased to report that we met or exceeded guidance on all key metrics in the first quarter, buoyed by the strong consumer demand we are experiencing across our brands,” said
First Quarter 2023 Results
GAAP net loss was
Revenue increased to
Fuel price per metric ton, net of hedges, increased to
Interest expense, net was
Other income (expense), net was expense of
Outlook and Guidance
In addition to announcing the results for the first quarter 2023, the Company also provided guidance for the second quarter and full year 2023, along with accompanying sensitivities. The Company does not provide certain estimated future results on a GAAP basis because the Company is unable to predict, with reasonable certainty, the future movement of foreign exchange rates or the future impact of certain gains and charges. These items are uncertain and will depend on several factors, including industry conditions, and could be material to the Company’s results computed in accordance with GAAP. The Company has not provided reconciliations between the Company’s 2023 guidance and the most directly comparable GAAP measures because it would be too difficult to prepare a reliable
2023 Guidance | ||||
Second Quarter 2023 | Full Year 20231 | |||
As Reported | Constant Currency | As Reported | Constant Currency | |
Net Per Diem vs. 2019 | 5.00% to 5.75% | 5.50% to 6.25% | 8.50% to 10.00% | 9.00% to 10.50% |
Net Yield vs. 2019 | 2.00% to 2.75% | 2.50% to 3.25% | 4.50% to 6.00% | 5.00% to 6.50% |
Adjusted Excluding Fuel per Capacity Day | Approx. | Approx. | ||
Capacity Days | Approx. 5.5 million | Approx. 22.75 million | ||
Occupancy | Approx. 105% | Approx. 103.5% | ||
Adjusted EBITDA | Approx. | |||
Adjusted EPS2 | Approx. | Approx. | ||
Depreciation and Amortization | Approx. | Approx. | ||
Adjusted Interest Expense, net | Approx. | Approx. | ||
Effect of a 1% change in Net Yield on Adjusted EBITDA / Adjusted EPS2 | Approx. Approx. | Approx. Approx. | ||
Effect of a | Approx. Approx. | Approx. Approx. |
(1) | Sensitivities for Adjusted EBITDA and Adjusted EPS are for the remainder of 2023. |
(2) | Based on midpoint of guidance and using a share count of approximately 460 million for both second quarter 2023 and full year 2023 Adjusted EPS. Adjusted EPS is calculated using the if-converted method and therefore excludes approximately |
The following reflects the foreign currency exchange rates the Company used in its second quarter 2023 guidance.
Current Guidance | ||
Euro | ||
British pound | ||
Australian Dollar | ||
Canadian Dollar | ||
Fuel
The following reflects the Company’s expectations regarding fuel consumption and pricing, along with accompanying sensitivities.
Second Quarter 2023 | Full Year 2023 | |
Fuel consumption in metric tons1 | 235,000 | 980,000 |
Fuel price per metric ton, net of hedges2 | ||
Effect on Adjusted EPS of a 10% change in fuel prices, net of hedges |
(1) | Fuel consumption for the full year 2023 is expected to be split approximately evenly between heavy fuel oil and marine gas oil |
(2) | Fuel prices are based on forward curves as of |
(3) | For the remaining quarters of 2023 |
As of
Remainder of 2023 | 2024 | |
% of HFO Consumption Hedged1 | 29% | - |
Blended HFO Hedge Price / Metric Ton | - | |
% of MGO Consumption Hedged | 76% | 25% |
Blended MGO Hedge Price / Metric Ton | ||
Total % of Consumption Hedged | 53% | 13% |
(1) | Both USGC and Brent include derivatives representing accounting hedges as well as economic hedges. |
Capital Expenditures
Non-newbuild capital expenditures for first quarter of 2023 were
Newbuild-related capital expenditures, net of export credit financing, are expected to be approximately
Company Updates and Other Business Highlights:
Environmental, Social and Governance (“ESG”)
- Revamped Company’s climate action strategy to focus on three key pillars: Efficiency, Innovation and Collaboration. Also established new short- and near-term GHG reduction targets to support the Company’s ambitious pursuit of net zero by 2050. Company is targeting a reduction in GHG intensity by 10% by 2026 and 25% by 2030, compared to a 2019 baseline with intensity measured on a per Capacity Day basis. For more information view a press release here and video here.
Fleet and Brand Updates
Oceania Cruises took delivery of its new ship Vista onApril 28, 2023 inGenoa, Italy marking the first newbuild addition to the brand’s fleet in over a decade. The 67,000-ton, 791-foot-long Vista is the first of two 1,200-guest next-generationAllura Class ships and will be christened onMay 8, 2023 inValletta, Malta .- Announced plan to improve connectivity for guests and crew at sea by offering SpaceX’s Starlink high-speed internet on its ships across its three brands. Starlink is currently being tested and the Company intends to rollout this game-changing technology across its entire world-class fleet in a phased manner. Learn more here.
Oceania Cruises named celebrated Italian-American chef, author, restaurateur and Emmy Award-winning food personalityGiada De Laurentiis as godmother of its newest ship Vista, debutingMay 2023 . MultipleGrammy and Emmy Award-winning singer, pianist and actorHarry Connick Jr . will appear alongside De Laurentiis at the star-studded christening and naming ceremony, taking place onMay 8 inValletta, Malta . Learn more here.Norwegian Cruise Line announced Tony Award-nominated “Beetlejuice” The Musical as the headline production aboard its newest groundbreaking ship, Norwegian Viva. Learn more here.
Other Highlights
- Effective
April 1, 2023 ,David Herrera was appointed to succeedHarry Sommer as President ofNorwegian Cruise Line . Herrera is an 8-year Company veteran and previously served as the line’s Chief Consumer Sales and Marketing Officer. Learn more here.
Conference Call
The Company has scheduled a conference call for
About
Terminology
Adjusted EBITDA. EBITDA adjusted for other income (expense), net and other supplemental adjustments.
Adjusted EPS. Adjusted Net Income (Loss) divided by the number of diluted weighted-average shares outstanding.
Adjusted Gross Margin. Gross margin adjusted for payroll and related, fuel, food, other and ship depreciation. Gross margin is calculated pursuant to GAAP as total revenue less total cruise operating expense and ship depreciation.
Adjusted Net Cruise Cost Excluding Fuel.
Adjusted Net Income (Loss). Net income (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
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 income (loss) per share.
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 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.
Operating Cash Flow. Net cash provided by (used in) operating activities.
Operating Credit Facility. Consists of the
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,
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. 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.
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 Contact |
(305) 468-2339 InvestorRelations@nclcorp.com |
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||
(Unaudited) | |||||||
(in thousands, except share and per share data) | |||||||
Three Months Ended | |||||||
2023 | 2022 | ||||||
Revenue | |||||||
Passenger ticket | $ | 1,208,841 | $ | 342,455 | |||
Onboard and other | 613,098 | 179,485 | |||||
Total revenue | 1,821,939 | 521,940 | |||||
Cruise operating expense | |||||||
Commissions, transportation and other | 409,684 | 87,958 | |||||
Onboard and other | 119,697 | 32,550 | |||||
Payroll and related | 304,155 | 240,727 | |||||
Fuel | 194,868 | 135,509 | |||||
Food | 95,966 | 39,516 | |||||
Other | 156,048 | 199,153 | |||||
Total cruise operating expense | 1,280,418 | 735,413 | |||||
Other operating expense | |||||||
Marketing, general and administrative | 336,013 | 296,207 | |||||
Depreciation and amortization | 194,790 | 179,076 | |||||
Total other operating expense | 530,803 | 475,283 | |||||
Operating income (loss) | 10,718 | (688,756 | ) | ||||
Non-operating income (expense) | |||||||
Interest expense, net | (171,257 | ) | (327,685 | ) | |||
Other income (expense), net | (8,955 | ) | 38,120 | ||||
Total non-operating income (expense) | (180,212 | ) | (289,565 | ) | |||
Net loss before income taxes | (169,494 | ) | (978,321 | ) | |||
Income tax benefit (expense) | 10,173 | (4,393 | ) | ||||
Net loss | $ | (159,321 | ) | $ | (982,714 | ) | |
Weighted-average shares outstanding | |||||||
Basic | 422,655,215 | 417,734,591 | |||||
Diluted | 422,655,215 | 417,734,591 | |||||
Loss per share | |||||||
Basic | $ | (0.38 | ) | $ | (2.35 | ) | |
Diluted | $ | (0.38 | ) | $ | (2.35 | ) | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | |||||||
(Unaudited) | |||||||
(in thousands) | |||||||
Three Months Ended | |||||||
2023 | 2022 | ||||||
Net loss | $ | (159,321 | ) | $ | (982,714 | ) | |
Other comprehensive income (loss): | |||||||
Shipboard Retirement Plan | 64 | 2,476 | |||||
Cash flow hedges: | |||||||
Net unrealized gain (loss) | (18,475 | ) | 39,304 | ||||
Amount realized and reclassified into earnings | (9,874 | ) | (7,502 | ) | |||
Total other comprehensive income (loss) | (28,285 | ) | 34,278 | ||||
Total comprehensive loss | $ | (187,606 | ) | $ | (948,436 | ) | |
CONSOLIDATED BALANCE SHEETS | |||||||
(Unaudited) | |||||||
(in thousands, except share data) | |||||||
2023 | 2022 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 700,600 | $ | 946,987 | |||
Accounts receivable, net | 259,289 | 326,272 | |||||
Inventories | 145,948 | 148,717 | |||||
Prepaid expenses and other assets | 538,833 | 450,893 | |||||
Total current assets | 1,644,670 | 1,872,869 | |||||
Property and equipment, net | 14,508,426 | 14,516,366 | |||||
98,134 | 98,134 | ||||||
Trade names | 500,525 | 500,525 | |||||
Other long-term assets | 1,598,936 | 1,569,800 | |||||
Total assets | $ | 18,350,691 | $ | 18,557,694 | |||
Liabilities and shareholders' equity | |||||||
Current liabilities: | |||||||
Current portion of long-term debt | $ | 1,210,248 | $ | 991,128 | |||
Accounts payable | 203,233 | 228,742 | |||||
Accrued expenses and other liabilities | 1,109,029 | 1,318,460 | |||||
Advance ticket sales | 3,177,026 | 2,516,521 | |||||
Total current liabilities | 5,699,536 | 5,054,851 | |||||
Long-term debt | 11,920,504 | 12,630,402 | |||||
Other long-term liabilities | 830,199 | 803,850 | |||||
Total liabilities | 18,450,239 | 18,489,103 | |||||
Commitments and contingencies | |||||||
Shareholders' equity: | |||||||
Ordinary shares, | 424 | 421 | |||||
Additional paid-in capital | 7,631,028 | 7,611,564 | |||||
Accumulated other comprehensive income (loss) | (505,364 | ) | (477,079 | ) | |||
Accumulated deficit | (7,225,636 | ) | (7,066,315 | ) | |||
Total shareholders' equity (deficit) | (99,548 | ) | 68,591 | ||||
Total liabilities and shareholders' equity | $ | 18,350,691 | $ | 18,557,694 | |||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(Unaudited) | |||||||
(in thousands) | |||||||
Three Months Ended | |||||||
2023 | 2022 | ||||||
Cash flows from operating activities | |||||||
Net loss | $ | (159,321 | ) | $ | (982,714 | ) | |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||||||
Depreciation and amortization expense | 210,676 | 195,464 | |||||
(Gain) loss on derivatives | 4,404 | (19,779 | ) | ||||
Loss on extinguishment of debt | 2,434 | 188,433 | |||||
Provision for bad debts and inventory obsolescence | 1,199 | 1,294 | |||||
Share-based compensation expense | 28,155 | 32,792 | |||||
Net foreign currency adjustments | 1,021 | (4,126 | ) | ||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable, net | 65,391 | 618,853 | |||||
Inventories | 2,812 | (24,141 | ) | ||||
Prepaid expenses and other assets | (127,192 | ) | (632,610 | ) | |||
Accounts payable | (25,926 | ) | (136,767 | ) | |||
Accrued expenses and other liabilities | (168,581 | ) | (25,587 | ) | |||
Advance ticket sales | 668,261 | 417,877 | |||||
Net cash provided by (used in) operating activities | 503,333 | (371,011 | ) | ||||
Cash flows from investing activities | |||||||
Additions to property and equipment, net | (237,676 | ) | (165,284 | ) | |||
Proceeds from maturities of short-term investments | — | 240,000 | |||||
Other | 1,320 | 4,940 | |||||
Net cash provided by (used in) investing activities | (236,356 | ) | 79,656 | ||||
Cash flows from financing activities | |||||||
Repayments of long-term debt | (1,821,412 | ) | (935,444 | ) | |||
Proceeds from long-term debt | 1,330,622 | 2,073,175 | |||||
Proceeds from employee related plans | 2,618 | 2,557 | |||||
Net share settlement of restricted share units | (11,306 | ) | (11,961 | ) | |||
Early redemption premium | — | (172,012 | ) | ||||
Deferred financing fees | (13,886 | ) | (34,767 | ) | |||
Net cash provided by (used in) financing activities | (513,364 | ) | 921,548 | ||||
Net increase (decrease) in cash and cash equivalents | (246,387 | ) | 630,193 | ||||
Cash and cash equivalents at beginning of the period | 946,987 | 1,506,647 | |||||
Cash and cash equivalents at end of the period | $ | 700,600 | $ | 2,136,840 | |||
NON-GAAP RECONCILING INFORMATION | ||||||||||||||
(Unaudited) | ||||||||||||||
Adjusted Gross Margin, Net Per Diem, and Net Yield were calculated as follows (in thousands, except Passenger Cruise Days and per Passenger Cruise Day data): | ||||||||||||||
Three Months Ended | ||||||||||||||
2023 | ||||||||||||||
Constant Currency | ||||||||||||||
2023 | compared to 2019 | 2019 | ||||||||||||
Total revenue | $ | 1,821,939 | $ | 1,835,356 | $ | 1,403,630 | ||||||||
Less: | ||||||||||||||
Total cruise operating expense | 1,280,418 | 1,289,860 | 826,651 | |||||||||||
Ship depreciation | 181,569 | 181,569 | 152,851 | |||||||||||
Gross margin | 359,952 | 363,927 | 424,128 | |||||||||||
Ship depreciation | 181,569 | 181,569 | 152,851 | |||||||||||
Payroll and related | 304,155 | 304,554 | 223,107 | |||||||||||
Fuel | 194,868 | 194,882 | 98,253 | |||||||||||
Food | 95,966 | 96,487 | 55,045 | |||||||||||
Other | 156,048 | 161,535 | 141,569 | |||||||||||
Adjusted Gross Margin | $ | 1,292,558 | $ | 1,302,954 | $ | 1,094,953 | ||||||||
Passenger Cruise Days | 5,497,106 | - | 5,497,106 | - | 4,975,440 | |||||||||
Capacity Days | 5,415,547 | 5,415,547 | 4,716,929 | |||||||||||
Total revenue per Passenger Cruise Day | $ | 331.44 | $ | 333.88 | $ | 282.11 | ||||||||
Gross margin per Passenger Cruise Day | $ | 65.48 | $ | 66.20 | $ | 85.24 | ||||||||
Net Per Diem | $ | 235.13 | $ | 237.03 | $ | 220.07 | ||||||||
Gross margin per Capacity Day | $ | 66.47 | $ | 67.20 | $ | 89.92 | ||||||||
Net Yield | $ | 238.68 | $ | 240.60 | $ | 232.13 | ||||||||
NON-GAAP RECONCILING INFORMATION | ||||||||||||||
(Unaudited) | ||||||||||||||
Gross Cruise Cost, | ||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||
2023 | ||||||||||||||
Constant Currency | ||||||||||||||
2023 | compared to 2019 | 2019 | 2022 | |||||||||||
Total cruise operating expense | $ | 1,280,418 | $ | 1,289,860 | $ | 826,651 | $ | 2,458,357 | ||||||
Marketing, general and administrative expense | 336,013 | 337,826 | 248,942 | 753,818 | ||||||||||
Gross Cruise Cost | 1,616,431 | 1,627,686 | 1,075,593 | 3,212,175 | ||||||||||
Less: | ||||||||||||||
Commissions, transportation and other expense | 409,684 | 412,705 | 229,264 | 690,481 | ||||||||||
Onboard and other expense | 119,697 | 119,697 | 79,413 | 229,227 | ||||||||||
1,087,050 | 1,095,284 | 766,916 | 2,292,467 | |||||||||||
Less: Fuel expense | 194,868 | 194,882 | 98,253 | 370,127 | ||||||||||
Net Cruise Cost Excluding Fuel | 892,182 | 900,402 | 668,663 | 1,922,340 | ||||||||||
Less Non-GAAP Adjustments: | ||||||||||||||
Non-cash deferred compensation (1) | 578 | 578 | 534 | 1,399 | ||||||||||
Non-cash share-based compensation (2) | 28,155 | 28,155 | 26,999 | 50,723 | ||||||||||
Restructuring costs (3) | - | - | - | 12,140 | ||||||||||
Redeployment of Norwegian Joy (4) | - | - | 5,016 | - | ||||||||||
Adjusted Net Cruise Cost Excluding Fuel | $ | 863,449 | $ | 871,669 | $ | 636,114 | $ | 1,858,078 | ||||||
Capacity Days | 5,415,547 | 5,415,547 | 4,716,929 | 9,948,281 | ||||||||||
Gross Cruise Cost per Capacity Day | $ | 298.48 | $ | 300.56 | $ | 228.03 | $ | 322.89 | ||||||
$ | 200.73 | $ | 202.25 | $ | 162.59 | $ | 230.44 | |||||||
Net Cruise Cost Excluding Fuel per Capacity Day | $ | 164.74 | $ | 166.26 | $ | 141.76 | $ | 193.23 | ||||||
Adjusted Net Cruise Cost Excluding Fuel per Capacity Day | $ | 159.44 | $ | 160.96 | $ | 134.86 | $ | 186.77 | ||||||
(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. | ||||||||||||||
(4) Expenses related to the redeployment of Norwegian Joy from | ||||||||||||||
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 | |||||||
2023 | 2022 | ||||||
Net loss | $ | (159,321 | ) | $ | (982,714 | ) | |
Non-GAAP Adjustments: | |||||||
Non-cash deferred compensation (1) | 1,010 | 1,012 | |||||
Non-cash share-based compensation (2) | 28,155 | 32,792 | |||||
Extinguishment and modification of debt (3) | 2,434 | 188,433 | |||||
Adjusted Net Loss | $ | (127,722 | ) | $ | (760,477 | ) | |
Diluted weighted-average shares outstanding - Net loss and Adjusted Net Loss | 422,655,215 | 417,734,591 | |||||
Diluted loss per share | $ | (0.38 | ) | $ | (2.35 | ) | |
Adjusted EPS | $ | (0.30 | ) | $ | (1.82 | ) | |
(1) Non-cash deferred compensation expenses related to the crew pension plan and other crew expenses are included in payroll and related expense and other income (expense), net. | |||||||
(2) Non-cash share-based compensation expenses related to equity awards are included in marketing, general and administrative expense and payroll and related expense. | |||||||
(3) Losses on extinguishments and modifications of debt are primarily included in interest expense, net. | |||||||
NON-GAAP RECONCILING INFORMATION | |||||||
(Unaudited) | |||||||
EBITDA and Adjusted EBITDA were calculated as follows (in thousands): | |||||||
Three Months Ended | |||||||
2023 | 2022 | ||||||
Net loss | $ | (159,321 | ) | $ | (982,714 | ) | |
Interest expense, net | 171,257 | 327,685 | |||||
Income tax (benefit) expense | (10,173 | ) | 4,393 | ||||
Depreciation and amortization expense | 194,790 | 179,076 | |||||
EBITDA | 196,553 | (471,560 | ) | ||||
Other (income) expense, net (1) | 8,955 | (38,120 | ) | ||||
Other Non-GAAP Adjustments: | |||||||
Non-cash deferred compensation (2) | 578 | 699 | |||||
Non-cash share-based compensation (3) | 28,155 | 32,792 | |||||
Adjusted EBITDA | $ | 234,241 | $ | (476,189 | ) | ||
(1) In 2023, primarily consists of gains and losses, net for foreign currency remeasurements. In 2022, 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 are included in payroll and related expense. | |||||||
(3) Non-cash share-based compensation expenses related to equity awards are included in marketing, general and administrative expense and payroll and related expense. |
Source:
2023 GlobeNewswire, Inc., source