Announces $500 Million Share Repurchase Programme
Revenue Improvement of 26% driven by New Capacity and Higher Net Yield
Strong Growth in Adjusted EPS
Wiesbaden, April 29, 2014 – 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, 2014, and provided guidance for the secondquarter and full year 2014. The Company also announced that its Board of Directors today has authorized a three-year, $500million share repurchase programme.
First Quarter Highlights
· Adjusted EPS improvement to $0,23 from $0,06 in 2013
· Net Yield increase of 3,8% (3,9% on a Constant Currency basis)
· Revenue increase of 25,9% to $664,0 million
· Adjusted EBITDA increase of 39,6% to $139,3 million; 200 basis point margin improvement
· Successful introduction of Norwegian Getaway to the fleet
First Quarter Results
“Our strong results in the quarter include an almost four-fold increase in earnings on an adjusted basis,” said Kevin Sheehan, Presidentand Chief Executive Officer of Norwegian Cruise Line. “With both Breakaway-class ships now in our fleet, it is easy to appreciate theimpact of their impressive earnings power, which includes commanding double-digit premiums over other Norwegian ships in the sameitinerary,” continued Sheehan.
For the first quarter of 2014, the Company reported an increase in Adjusted EPS to $0,23 on Adjusted Net Income of $49,6 millioncompared to $0,06 and $12,9 million, respectively for the same period in 2013. On a GAAP basis, diluted earnings per share and netincome were $0,24 and $51,3 million, respectively.
Net Revenue in the period increased 27,8% to $499,3 million, driven by a 23,2% increase in Capacity Days and a 3,8%improvement in Net Yield. The increase in Capacity Days was primarily from the addition of Norwegian Breakaway and NorwegianGetaway to the fleet in May 2013 and January 2014, respectively. The Net Yield improvement of 3,8% or 3,9% on a Constant Currencybasis, was a result of higher passenger ticket and on-board and other revenue. Revenue for the period increased to $664,0 millionfrom $527,6 million in 2013.
Adjusted Net Cruise Cost excluding Fuel per Capacity Day increased 3,7% (3,4% on a Constant Currency basis) mainly due toinaugural and launch-related costs for Norwegian Getaway along with incremental expenses for the planned dry-dock of NorwegianSpirit. The Company’s fuel price per metric ton, net of hedges, was $643 compared to $673 in 2013. Fuel consumption perCapacity Day in the quarter decreased 6,8% which excludes an additional benefit of 0,7% from dockside charters for vessels used asfloating hotels.
Interest expense, net for the quarter was $31,2 million compared to $127,7 million in 2013. Interest expense, net in 2013 included $90,5million in charges related to the prepayment of certain credit facilities and the redemption of certain of the Company’s senior noteswith proceeds from both the Company’s initial public offering and other transactions. Excluding these charges, Adjusted InterestExpense, net was $37,2 million in 2013. The year-over-year reduction in interest expense is due to lower interest rates in the periodresulting from the Company’s capital structure optimization initiatives carried out in 2013 which more than offset the impact fromhigher debt balances related to the financing for Norwegian Breakaway and Norwegian Getaway.
The Company recorded an income tax benefit of $9,4 million compared to an expense of $2,2 million in the prior year. The income taxbenefit in 2014 is primarily related to the election of an alt
