World video travel guide

NewsNorway • 2013-08-20

Select the country and object's type Company Reports Adjusted Net Income of $12,9 million and Adjusted EPS of $0,06 with 7% Year over Year Adjusted EBITDA Growth

Company Reports Adjusted Net Income of $12,9 million and Adjusted EPS of $0,06 with 7% Year over Year Adjusted EBITDA Growth

Wiesbaden, May 13, 2013 – Norwegian Cruise Line (NASDAQ: NCLH, Norwegian Cruise Line Holdings Ltd., NCL Corporation Ltd., “Norwegian” or “the Company”), today reported results for the quarter ended March 31, 2013, and provided guidance for 2013.

Quarter Highlights

Successful Initial Public Offering (“IPO”) and Notes Offering completed in the quarter

Adjusted Net Income improved to $12,9 million with Adjusted EPS of $0,06 from $3,3 million and $0,02 in 2012

Net Yield increased 3,3% on both an as reported and Constant Currency basis

Adjusted Net Cruise Cost per Capacity Day excluding Fuel (“Adjusted NCC ex Fuel”) decreased 1,5% on both an as reported and Constant Currency basis

Transactions in the Quarter

On January 24, 2013, the Company closed on its successful IPO at a price of $19,00 per share. In addition, on February 6, 2013, the Company issued $300 million of 5,00% senior unsecured notes. The aggregate net proceeds of the IPO and the Notes Offering were used to prepay certain credit facilities, prepay amounts due pursuant to the Norwegian Sky Purchase Agreement, redeem the full amount of the outstanding $450 million 11,75% senior secured notes due 2016, redeem a portion of the outstanding $350 million 9,5% senior unsecured notes due 2018 and for general corporate purposes.

First Quarter 2013 Results

“We are excited to announce another quarter of strong results, especially in light of this being our first quarter as a publicly traded company,” said Kevin Sheehan, Norwegian Cruise Line’s President and CEO. “These strong results bring us to nineteen consecutive quarters of year over year Adjusted EBITDA growth.”

For the first quarter of 2013, the Company reported Adjusted Net Income of $12,9 million and Adjusted EPS of $0,06, which exclude $110,4 million in expenses related to debt prepayments funded by the aggregate net proceeds from the IPO and the Notes Offering as well as non-cash compensation and other expenses related to the Company’s IPO. On a GAAP basis, net loss and diluted EPS were $(96,4) million and $(0,49), respectively.

An increase in Net Yield, partially offset by lower Capacity Days primarily due to the planned Dry-dock of Pride of America, resulted in a 1,3% improvement in Net Revenue for the quarter to $390,7 million. Net Yield increased 3,3%, on both an as reported and Constant Currency basis, on stronger overall pricing and increased onboard spend, particularly in the bar and shore excursion areas.

Adjusted Net Cruise Cost ex Fuel decreased 1,5%, on both an as reported and Constant Currency basis, mainly due to the timing of certain expenses. The first quarter included a portion of the Pride of America Dry-dock which extended into the second quarter. Incremental Dry-docks in subsequent quarters include Norwegian Pearl and Norwegian Sky. Fuel price in the quarter increased 12,5% to $673 per metric ton from $598 in 2012.

Interest expense, net for the period was $127,7 million and included $90,5 million in charges related to the prepayment of certain credit facilities and the redemption of certain of the Company’s senior notes in connection with proceeds from both the Company’s IPO and Notes Offering.

“Our initiatives for driving demand, pricing discipline and continuous improvement resulted in strong earnings and record guest satisfaction scores,” said Sheehan. “These efforts contributed to our successful initial public offering and notes offering which further optimized our capital structure, strengthened our balance sheet and positioned Norwegian for future growth.”

2013 Guidance and Sensitivities

In addition to the results for the first quarter 2013, the Company also issued the following guidance, which reflects its expectations for 2013 along with accompanying sensitivities.

Second Quarter 2013

Full Year 2013

As Reported

Constant Currency

As Reported

Constant Currency

Net Yield

3,0 to 4,0%

3,0 to 4,0%

3,5 to 5,5%

3,5 to 5,5%

Adjusted Net Cruise Cost

Excluding Fuel per Capacity Day (1)(2)

5,0 to 6,0%

5,0 to 6,0%

4,0 to 6,0%

4,0 to 6,0%

Adjusted EPS

$0,24 to $0,28

$1,20 to $1,40

Depreciation and amortization

$50 to $55 million

$215 to $220 million

Adjusted Interest Expense, net

$35 to $40 million

$150 to $160 million

Effect on Adjusted EPS of a

1% change in Net Yield (3)

$0,02

$0,09

(1) Second quarter includes inaugural costs, one partial incremental Dry-dock and one full Dry-dock

(2) Full year includes inaugural costs and three incremental Dry-docks

(3) Based on midpoint of guidance

The following reflects the Company’s expectations regarding fuel consumption and pricing, along with accompanying sensitivities.

Second Quarter 2013

Full Year

2013

Fuel consumption in metric tons

114.000

460.000

Fuel price per metric ton

$685

$680

Effect on Adjusted EPS of a 10% change

in fuel prices, net of hedges

$0,01

$0,03

As of April 30, 2013, the Company had hedged approximately 91%, 58% and 26% of its 2013, 2014 and 2015 projected metric tons of fuel purchases, respectively.

Future capital commitments consist of contracted commitments, including ship construction contracts and future expected capital expenditures for business enhancements. As of March 31, 2013, anticipated capital expenditures for business enhancements were $57,2 million for the remainder of 2013, and $77 million for each of the years 2014 and 2015. As of March 31, 2013, anticipated capital expenditures for ship construction were $681,1 million for the remainder of 2013, $755,6 million for 2014 and $788,5 million for 2015, of which export credit financing is in place of $572,8 million for 2013, $657,1 million for 2014 and $621,1 million for 2015, based on the euro/U.S. dollar exchange rate as of March 31, 2013.

New build and Other Highlights

On April 25, 2013, the Company took delivery of the newest ship in its fleet, the 4.000-passenger Norwegian Breakaway. After inaugural events in Europe and a transatlantic crossing, Norwegian Breakaway arrived for the first time in her homeport of New York City on May 7. Said Sheehan about the Company’s newest vessel, “Norwegian Breakaway is bringing the best of New York City to sea, offering an extensive choice of dining venues, an unparalleled list of entertainment including three Broadway shows and public areas 678 Ocean Place and the Waterfront, which jointly form a dynamic complex that enhances guests’ connection with the ocean.”

Norwegian Breakaway’s sister ship, Norwegian Getaway, continues construction for an on-time delivery in January 2014 and will also feature a three-story sports complex, Aqua Park, Nickelodeon entertainment and a trio of seafood dining options from celebrity chef and Food Network star Geoffrey Zakarian. In addition, Norwegian Getaway will feature The Illusionarium, an immersive experience featuring magic by renowned illusionists. The Company announced a partnership with The Recording Academy®, creators of The GRAMMY Awards®, which will bring the Academy’s first GRAMMY Experience at sea on Norwegian Getaway. The venue, unique to Norwegian Getaway, will feature memorabilia from the GRAMMY Museum® while hosting performances that will include past GRAMMY winners and nominees, among others.

In February, the Company’s Board of Directors approved the appointment of John Chidsey and Kevin Crowe effective April 1, 2013. Chidsey, who is also a member of the Company’s Audit Committee, currently serves as executive chairman of Red Book Connect™. Previously Chidsey served as chairman and chief executive officer of Burger King Corporation. Chidsey currently serves on the boards of directors of Instalwares Holding Company and HealthSouth as well as the Board of Trustees of Davidson College. Crowe currently serves as a principal of Apollo Management, L.P., a private investment partnership that manages a series of institutional funds focused on complex equity investments, leveraged buyouts and corporate reorganizations. Crowe serves on the boards of directors of Quality Distribution, Nine Entertainment and Prestige Cruise Holdings. Prior to joining Apollo, Mr. Crowe was a member of the Financial Sponsors group of Deutsche Bank Securities.

RSS RSS All news

 

Related objects

Bergen

Cities Bergen

Known for the Hanseatic wharf, the fish market and the surrounding fjords Bergen offers the ideal combination of nature, culture and pulsating city life

Oslo

Cities Oslo

It is the capital and largest city of Norway, with museums of national importance, lively nightlife and cultural scene. It’s a great destination for those who enjoy outdoor activities.

Sogn og Fjordane

Regions, areas, large resorts  
Sogn og Fjordane

Spitsbergen

Regions, areas, large resorts  
Spitsbergen

 Ålesund

Cities  
Ålesund

Alta

Cities Alta

Alta, the important commercial town is famous by rock drawings (about 4200 -500 BC), listed in the UNESCO list of World Heritage Sites

Bodo

Cities Bodo

The Norwegian Aviation Museum, which displays aircrafts from 1913 to 1993, is one of the main sights of Bodo, also known as «an Eagle’s city» due to a record number of eagles

Hammerfest

Cities Hammerfest

To get acquainted with the Sami people culture and enjoy the best fishing one have to visit Hammerfest - the most northern city in the world, located at 70 ° North Latitude

Kristiansand

Cities Kristiansand

Kristiansand is a favorite vacation spot of the Norwegians. Beautiful beaches begin already in the city. Excellent salmon fishing, delicious fish cuisine

Notodden

Cities Notodden

Notodden Blues Festival, which takes place in early August, annually attracts tourists from all over the world. There are also a large number of well-preserved monuments

Røros

Cities  
Røros

Stavanger

Cities  
Stavanger

Tonsberg

Cities Tonsberg

Tonsberg is considered to be the oldest city throughout Scandinavia. Now it is the major tourist centre of Norway

Tromso

Cities Tromso

Tromso is situated on the island and is surrounded by fjords, mountains, islands. Local residents are proud of the most northern university and botanical garden, breweries

Trondheim

Cities Trondheim

Trondheim is a famous university town with numerous attractions, preserving an atmosphere of a cozy village

Arctic Circle Centre

Museums, historical monuments Arctic Circle Centre

Arctic Circle Centre presents works of art, as well as marble sculptures of polar animals and stuffed animals. Here is a stuffed polar bear, the largest in Europe

Cavzo Safari, Maze

Hunting and safari Cavzo Safari, Maze

Cavzo Safari is run by Elen Inga and Tore Turi. They live in the Sami village of Maze and organize daily trips by riverboat to the Alta dam

Fishing, Namsen river

Fishing Fishing, Namsen river

Inveterate fishermen will never miss an opportunity to catch a 20-kg salmon in clean water of the Namsen river. Different ways of fishing are possible here

Hurtigruten cruise

Popular tourist places  
Hurtigruten cruise

Karmoy Viking Festival

Traditions and Crafts Karmoy Viking Festival

Historic performances, parades, competitions, concerts and fairs are organized during Karmoy Viking Festival. Everyone can feel oneself an ancient warrior in a Viking’s camp

Lofoten, archipelago

Islands, archipelagos Lofoten, archipelago

Lofoten archipelago is the succession of islands, where fishing is the traditional main occupation of the local people. Take part in whale safari and you will never forget this travel

North Cape

Mountains, caves, canons North Cape

North Cape is one of the main attractions of Norway. From May 31 to July 31 one can observe midnight never-setting sun here

Norwegian Fjords

Mountains, caves, canons Norwegian Fjords

Being one of Europe’s last natural frontiers it evokes a sense of timelessness. In this enduring landscape, nature is at her most dramatic spectacle of the fjords is a natural wonder.

polar lights in norway

Nature polar lights in norway

Polar Lights in Norway - spellbounding natural phenomenon; it's better to observe it in the north of the country, within the Polar circle, in october and february.

Preikestolen

Mountains, caves, canons Preikestolen

A stunning view from Preikestolen - a giant cliff (604 m) above the Lisefjord can enjoy only the most brave, those who dare to come to its very edge

Spitsbergen, ice

Mountains, caves, canons  
Spitsbergen, ice

Spitsbergen, tourism

Extreme tourism and Walking  
Spitsbergen, tourism

Svartisen, glacier

Mountains, caves, canons Svartisen, glacier

Fascinating views are open from the plateau of Svartisen glacier, the biggest in Norway, but not every tourist venture to climb here

Whale Safari, Andenes

Hunting and safari Whale Safari, Andenes

Modern whale safari in Andenes is not hunting in the literal sense. Sperm-whales are not afraid to appear about the coast and tourists can observe and photograph these sea giants