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”), 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.
