Operating
Income Improves 8,8% on Higher Revenue, Lower Operating Costs
· New
Breakaway Plus Vessel Ordered for Delivery in 2015
Wiesbaden,
November 5, 2012 – Norwegian Cruise Line (NCL Corporation
Ltd., “Norwegian” or “the Company”) last week reported
results for the quarter ended September 30, 2012.
Operating
income increased 8,8% to $174,1 million in the third quarter of 2012
compared to $160,0 million in 2011 with an improvement in operating
margin to 25,8% from 24,0%. Adjusted EBITDA grew 7,2% to $223,6
million from $208,6 million with an increase in Adjusted EBITDA
margin to 33,2% from 31,3%. Net Revenue increased 1,8% to $498,4
million primarily due to an increase in Net Yield. With increases in
both ticket and on-board and other revenue, Net Yield improved 1,0%,
or 2,6% on a Constant Currency basis.
Net
Cruise Cost per Capacity Day decreased 3,3% in the period, or 2,1% on
a Constant Currency basis. This decrease reflects lower ship
operating expenses, timing of repair and maintenance expense, and
efficiencies from business improvement initiatives partially offset
by a 13,5% increase in the per metric ton cost of fuel to $679.
Excluding fuel expense, Net Cruise Cost per Capacity Day decreased
7,7%, or 6,2% on a Constant Currency basis.
“Posting
these great results, despite the challenging economic environment in
Europe where we had a record deployment, is a testament to the
discipline and rigour instilled at Norwegian to continuously improve
quarter after quarter,” said Kevin Sheehan, the Company’s
President and Chief Executive Officer. “Our results reflect
strategic pricing programs, benefits from process improvements and
other enhancement initiatives which resulted in a nine per cent
improvement in operating income,” continued Sheehan.
Interest
expense, net for the quarter decreased $2,7 million while other
income increased $3,9 million. Net income for the quarter increased
19,2% to $128,2 million on revenue of $674,4 million from net income
of $107,5 million on revenue of $666,6 million.
Quarter
Highlights
During
the quarter, the Company announced upcoming enhancements to Pride of
America, Norwegian’s U.S.-flagged ship which sails exclusive
7-night itineraries in Hawai’i. 24 new suites and four new studio
staterooms will be added, bringing the ship’s capacity to
approximately 2.200 Berths. The new suites will include two Owner’s
Suites of approx. 53 m2 with the remainder
designated as Family Suites ranging in size from approx. 34 to
39 m2. All suites include dedicated butler and concierge
services and access to private dining for breakfast and lunch. During
her 14-day dry-dock, Pride of America will also be outfitted with
Norwegian’s signature Brazilian steakhouse, Moderno Churrascaria.
Other enhancements include ship wide Wi-Fi, flat screen televisions
in all staterooms and upgrades to the fitness centre, gift shop, and
photo and art galleries.
The
Company also added two interactive experiences to Great Stirrup Cay,
its private island in the Caribbean. These include the Stingray
Encounter which allows guests to swim with the island’s friendly
stingrays and the Fate of the Fancy Snorkel Adventure which takes
guests on an underwater journey to discover the abandoned wreckage of
The Fancy. For guests preferring to relax on the sandy beach there is
the new Light House Beach Bar presented by Patron.
Progress
on the Company’s ground-breaking Breakaway class vessels continues
as scheduled. During the quarter, Norwegian Breakaway continued to
strengthen ties with her homeport of New York City. In September, the
ship’s hull art, designed by legendary Peter Max, was revealed
showcasing two icons of New York, the city’s skyline as well as the
Statue of Liberty. The theme of New York icons continued with the
announcement of Norwegian Breakaway’s godmothers, the
Rockettes® from New York’s famed Radio City Music
Hall. The godmother relationship goes well past the ship’s
inaugural and christening with a marketing partnership which names
Norwegian as the official cruise line of the Rockettes and Radio City
Music Hall. The partnership also includes two Rockettes sailing on
select voyages and offering special fitness classes, photo
opportunities and more. Guests will also enjoy a Rockettes
retrospective in the ship’s library, as well as featured beverages
and more. Guests on Norwegian Breakaway will also be able to take
advantage of the ship’s ground-breaking, two-level spa and fitness
facility. Highlights include the first-ever salt room at sea, a
thermal suite and 22 treatment rooms offering more than 50 services.
“By naming the Rockettes as Norwegian Breakaway’s godmothers, we
continue to strengthen her ties to New York City,” said Sheehan.
“These ties also include partnerships with Peter Max and Chef
Geoffrey Zakarian; along with an entertainment line-up that includes
three Broadway shows: Rock of Ages, Burn the Floor and Cirque Dreams
and Dinner: Jungle Fantasy. In addition, our state of the art spa
will offer a tranquil respite from the hustle and bustle of the
city.”
The
Company recently announced that the second ship of the Breakaway
class, Norwegian Getaway, will be delivered in January 2014, ahead of
schedule. Also announced was the ship’s inaugural season itinerary,
sailing Eastern Caribbean voyages year-round from Miami. Norwegian
Getaway will be the largest ship to sail year-round out of Miami, and
like her sister ship’s ties with New York, she will have strong
ties with her homeport in the Magic City.
On
October 18, the Company announced it placed an order with Meyer
Werft, builder of the Company’s current Breakaway-class ships as
well as all four ships in the fleet’s Jewel-class, for one
Breakaway Plus-class ship, together with an option for a second
sister ship. The 4.200 Berth Breakaway Plus class ship will
incorporate many of the Breakaway-class vessels’ unique design
elements and innovations. Delivery of the first Breakaway Plus ship
is scheduled for October 2015 with export credit financing in place.
