Norwegian Cruise Line Holdings Ltd. , today reported financial results for the quarter and year ended December 31, 2014, and provided guidance for the first quarter and full year 2015. Reported results for the quarter and year ended December 31, 2014 include the results of the recently acquired Prestige Cruise Holdings, Inc. (“Prestige Cruise Holdings”, “Prestige”) beginning on the closing of the acquisition on November 19, 2014. Due to the abbreviated period of consolidation of Prestige’s results, certain metrics are presented both on an as reported basis and on a basis excluding the results of Prestige (“Norwegian Stand-alone”).
Full Year 2014 Highlights
- Acquisition of Prestige Cruise Holdings, parent company of Oceania Cruises and Regent Seven Seas Cruises, diversifies Company’s product portfolio
- Adjusted EPS improvement of 61.0% (64.5% on a Norwegian Stand-alone basis)
- Adjusted Net Yield increase of 4.8% (3.3% on a Norwegian Stand-alone basis)
- Revenue increase of 21.6% to $3.1 billion
- Introduction of Norwegian Getaway, Norwegian Cruise Line’s first year-round, Miami-based ship in over a decade
Full Year 2014 Results
“Looking back at our accomplishments over the past year, it is clear that 2014 will be remembered as one of solid growth and game-changing expansion for the company,” said Frank Del Rio, president and chief executive officer of Norwegian Cruise Line Holdings Ltd. “Strong results are a testament to the hard work and dedication of our team members who, despite operating in a challenging environment, kept a keen eye on optimizing pricing and managing expenses while delivering exceptional vacation experiences to our guests. Looking ahead, the acquisition of Prestige has created the cruise industry’s most dynamic and diversified operator, one that is well-positioned to realize meaningful synergies and deliver superior results. I look forward to leading this exciting organization, which mixes a deep history in the industry with an entrepreneurial spirit that is unique among cruise operators,” continued Del Rio.
The Company reported on an as reported basis a 61.0% increase in Adjusted EPS to $2.27, on Adjusted Net Income of $480.6 million, which excludes expenses related to the Prestige acquisition and other items. On a GAAP basis, diluted earnings per share and net income were $1.62 and $338.4 million, respectively. Earnings per share for 2014 includes a $(0.03) per share impact related to an incident on board Oceania Cruises’ Insignia in December 2014. On a Norwegian Stand-alone basis, Adjusted EPS increased 64.5% to $2.32. This follows a 45% increase in Adjusted EPS in 2013 and further demonstrates the Company’s underlying earnings power.
A 25.5% improvement in Adjusted Net Revenue to $2.4 billion was driven by a 19.8% increase in Capacity Days coupled with a 4.8% improvement in Adjusted Net Yield. Adjusted Net Revenue excludes a deferred revenue fair value adjustment of $10.1 million related to the acquisition of Prestige. The increase in Capacity Days was primarily a result of the addition of Norwegian Breakaway and Getaway, which entered the Norwegian Cruise Line fleet in April 2013 and January 2014, respectively, and the addition of Capacity Days from the Prestige fleet. The improvement in Adjusted Net Yield was primarily the result of a 3.3% increase in Norwegian Stand-alone Net Yield (3.2% on a Constant Currency basis) and partially due to the addition of Prestige’s brands to the fleet. Revenue for the period increased 21.6% to $3.1 billion from $2.6 billion in 2013.
On an as reported basis, Adjusted Net Cruise Cost Excluding Fuel per Capacity Day increased 3.5%. Adjusted Net Cruise Cost Excluding Fuel per Capacity Day increased 1.0% on a Norwegian Stand-alone basis (0.8% on a Constant Currency basis) due to investments in conjunction with the Norwegian NEXT program as well as increased marketing expenses to drive demand and stimulate close-in bookings in the fourth quarter and to carry momentum into Wave season.
