Norwegian Cruise Line Holdings Reports First Quarter 2020 Financial Results
Significantly Strengthened Liquidity with Highly Successful
Well-Positioned to Withstand Over 18 Months of Voyage Suspensions
Non-Cash Goodwill and Tradenames Impairment of
“In recent weeks, we have taken decisive action to significantly strengthen our financial position in response to the COVID-19 global pandemic, including our highly successful and oversubscribed
Booking Environment and Outlook
2020 started off strong and was expected to be another record year. All three of the Company’s brands entered the year in a record booked position and at higher prices on a comparable basis. For the first two months of the year, ships sailed full at prices that were higher than prior year despite meaningful capacity growth of approximately 7%. As with the broader travel and leisure industry, the Company has experienced rapid and significant impacts related to the COVID-19 global pandemic including significant softness in near-term demand and an elevated rate of cancellations for existing bookings. There continues to be demand for cruise vacations particularly beginning in the fourth quarter 2020 accelerating through 2021 with the Company’s overall booked position and pricing for 2021 within historical ranges.
All three brands have instituted programs for guests on cancelled sailings as a result of the Company’s voyage suspension which include offering value-add future cruise credits typically for 125% of the cruise fare paid in lieu of providing cash refunds. These future cruise credits are valid for any sailing through
Prior to the suspension of cruise voyages, the Company had begun developing a comprehensive and multi-faceted strategy to enhance its already rigorous health and safety protocols to address the unique public health challenges posed by COVID-19, including enhanced screenings, upgraded cleaning and disinfection protocols and plans for social distancing. Several of these protocols were put in place prior to the voyage suspension.
The Company is consulting with Dr.
The Company will continue to work with the
COVID-19 Action Plan
The Company has taken swift, proactive measures to mitigate the financial and operational impacts of COVID-19. This action plan includes cost reduction and cash conservation levers the Company has deployed to preserve and enhance liquidity while also securing additional capital.
Reduced Operating Expenses
The Company anticipates estimated ongoing ship operating expenses and administrative operating costs combined to range from approximately
- Meaningfully reducing cruise operating expense which includes reducing expenses associated with crew payroll, food, fuel, insurance and port charges. The majority of ships in the Company’s fleet are currently transitioning to cold layup.
- Significantly reduced or deferred marketing expense in the first half of the year.
- Introduced a temporary shortened work week and reduced work hours with commensurate 20% salary reduction for shoreside team members.
- Temporarily furloughed approximately 20% of the shoreside workforce through
July 31, 2020 . Furloughed team members remain employees of the Company and retain healthcare and other benefits. The Company is covering the employee share of medical insurance premiums during the furlough period. - Implemented a company-wide hiring freeze.
- Paused employer 401(k) match contribution.
- Suspended travel for shoreside employees across the organization.
Reduced Capital Expenditures
The Company has identified approximately
- Approximately
$345 million , or an approximately 65% reduction of non-newbuild capital expenditures for the remainder of 2020. - Approximately
$170 million in expected deferred capital expenditures for newbuild related payments throughMarch 31, 2021 . The Company is currently finalizing documentation for deferrals of these payments. Upon completion, the Company does not expect any newbuild related payments to have an impact on liquidity untilApril 2021 . - Total capital expenditures, net of expected deferrals of newbuild related payments, for the remainder of 2020 is expected to be approximately
$195 million .
Improved Debt Maturity Profile
- Deferred approximately
$385 million of payments related to guaranteed financing by Euler Hermes Aktiengesellschaft (“Hermes”), the officialExport Credit Agency (“ECA”) ofGermany , throughApril 2021 and amended associated credit agreements to incorporate this debt deferral in connection with an industrywide initiative granting a 12-month debt holiday to provide interim debt service relief for amortization payments and financial covenants (“Debt Holiday”). The Company is finalizing documentation for the deferral of the remaining approximately$155 million of ECA backed payments throughMarch 31, 2021 with its other ECA lenders. Deferrals are to be repaid in eight equal semi-annual installments following the Debt Holiday. - Secured a 12-month deferral for approximately
$150 million of debt amortization throughMarch 31, 2021 relating to the Term Loan A and Norwegian Jewel term loan. Deferrals are to be repaid 25% per year in equal installments following the deferral period with any outstanding balance paid in full at maturity. - Extended
$230 million Pride of America term loan by one year toJanuary 2022 . - Extended
$675 million Norwegian Epic revolving credit facility toMarch 2022 .
Taken together, the aforementioned cash conservation measures and the deferral of near-term debt amortization and newbuild related payments2, the Company estimates its monthly cash burn to be on average in the range of, approximately
________________
1 Based on hypothetical scenario of entire fleet in cold layup or entire fleet in warm layup. Includes ship operating expenses and administrative operating expenses. Does not include interest, maintenance capital expenditures, customer refunds or cash inflows from new and existing bookings.
2 Assumes approximately
Balance Sheet and Liquidity Position
In response to COVID-19, the Company secured a new
On
Following the recent capital markets transactions, total pro-forma liquidity is approximately
“Our swift actions to preserve cash and secure additional liquidity in this uncertain environment provide a strong foundation to withstand the operational and financial impact of COVID-19,” said
First Quarter 2020 Results
GAAP net income (loss) was
Revenue decreased 11.2% to
Total cruise operating expense increased 20.3% in 2020 compared to 2019, primarily due to costs associated with the suspension of cruise voyages, including the cost of the related protected commissions, a 27.2% increase in fuel expense associated with the IMO 2020 regulations and the addition of Norwegian Encore and Seven Seas Splendor to the fleet. Gross Cruise Costs per Capacity Day increased 34.5%. Adjusted Net Cruise Cost Excluding Fuel per Capacity Day increased 26.1% on a Constant Currency basis and 25.7% on an as reported basis.
Total other operating expense increased 396.0% in 2020 compared to 2019 primarily due to a
Fuel price per metric ton, net of hedges increased to
Interest expense, net was
Other income (expense), net was income of
2020 Outlook
As previously stated in the Company’s Current Report on Form 8-K filed on
The COVID-19 outbreak has had a significant impact on the Company’s financial position and results of operation. If the temporary suspension of sailings is further extended, the Company’s liquidity and financial position would likely continue to be significantly impacted.
As of
Remainder of 2020 | 2021 | 2022 | 2023 | |||||
% of HFO Consumption Hedged | 64% | 53% | 19% | 0% | ||||
Average USGC Price / Barrel | N/A | |||||||
% of MGO Consumption Hedged | 70% | 49% | 46% | 20% | ||||
Average Gasoil Price / Barrel |
(1) Represents a blended rate that includes a
As of
Conference Call
The Company has scheduled a conference call for
About
Terminology
Acquisition of Prestige. In
Adjusted EBITDA. EBITDA adjusted for other income (expense), net and other supplemental adjustments.
Adjusted EPS. Adjusted Net Income (Loss) divided by the number of diluted weighted-average shares outstanding.
Adjusted Interest Expense. Interest expense adjusted to exclude write-offs of deferred financing fees related to the refinancing of certain of our credit facilities.
Adjusted Net Cruise Cost Excluding Fuel.
Adjusted Net Income (Loss). Net income (loss) adjusted for supplemental adjustments.
Berths. Double occupancy capacity per cabin (single occupancy per studio cabin) even though many cabins can accommodate three or more passengers.
Capacity Days. Available Berths multiplied by the number of cruise days for the period.
Constant Currency. A calculation whereby foreign currency-denominated revenues and expenses in a period are converted at the
Dry-dock. A process whereby a ship is positioned in a large basin where all of the fresh/sea water is pumped out in order to carry out cleaning and repairs of those parts of a ship which are below the water line.
EBITDA. Earnings before interest, taxes, and depreciation and amortization.
EPS. Diluted earnings (loss) per share.
GAAP. Generally accepted accounting principles in the
Gross Cruise Cost. The sum of total cruise operating expense and marketing, general and administrative expense.
Gross Yield. Total revenue per Capacity Day.
Net Cruise Cost Excluding Fuel.
Net Revenue. Total revenue less commissions, transportation and other expense and onboard and other expense.
Net Yield. Net Revenue per Capacity Day.
Occupancy Percentage or Load Factor. The ratio of Passenger Cruise Days to Capacity Days. A percentage in excess of 100% indicates that three or more passengers occupied some cabins.
Passenger Cruise Days. The number of passengers carried for the period, multiplied by the number of days in their respective cruises.
Non-GAAP Financial Measures
We use certain non-GAAP financial measures, such as Net Revenue, Net Yield,
As our business includes the sourcing of passengers and deployment of vessels outside of the
We believe that Adjusted EBITDA is appropriate as a supplemental financial measure as it is used by management to assess operating performance. We also believe that Adjusted EBITDA is a useful measure in determining our performance as it reflects certain operating drivers of our business, such as sales growth, operating costs, marketing, general and administrative expense and other operating income and expense. Adjusted EBITDA is not a defined term under GAAP nor is it intended to be a measure of liquidity or cash flows from operations or a measure comparable to net income, as it does not take into account certain requirements such as capital expenditures and related depreciation, principal and interest payments and tax payments and it includes other supplemental adjustments.
Adjusted Net Income and Adjusted EPS are non-GAAP financial measures that exclude certain amounts and are used to supplement GAAP net income and EPS. We use Adjusted Net Income and Adjusted EPS as key performance measures of our earnings performance. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting and analyzing future periods. These non-GAAP financial measures also facilitate management’s internal comparison to our historical performance. In addition, management uses Adjusted EPS as a performance measure for our incentive compensation. The amounts excluded in the presentation of these non-GAAP financial measures may vary from period to period; accordingly, our presentation of Adjusted Net Income and Adjusted EPS and Adjusted EBITDA, may not be indicative of future adjustments or results. For example, for the three months ended
You are encouraged to evaluate each adjustment used in calculating our non-GAAP financial measures and the reasons we consider our non-GAAP financial measures appropriate for supplemental analysis. In evaluating our non-GAAP financial measures, you should be aware that in the future we may incur expenses similar to the adjustments in our presentation. Our non-GAAP financial measures have limitations as analytical tools, and you should not consider these measures in isolation or as a substitute for analysis of our results as reported under GAAP. Our presentation of our non-GAAP financial measures should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. Our non-GAAP financial measures may not be comparable to other companies. Please see a historical reconciliation of these measures to the most comparable GAAP measure presented in our consolidated financial statements below.
Cautionary Statement Concerning Forward-Looking Statements
Some of the statements, estimates or projections contained in this release are “forward-looking statements” within the meaning of the
Investor Relations & Media Contact
(305) 468-2339
InvestorRelations@nclcorp.com
(786) 913-2902
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||
(Unaudited) | ||||||||||||
(in thousands, except share and per share data) | ||||||||||||
Three Months Ended | ||||||||||||
2020 | 2019 | |||||||||||
Revenue | ||||||||||||
Passenger ticket | $ | 840,791 | $ | 973,273 | ||||||||
Onboard and other | 406,091 | 430,357 | ||||||||||
Total revenue | 1,246,882 | 1,403,630 | ||||||||||
Cruise operating expense | ||||||||||||
Commissions, transportation and other | 332,368 | 229,264 | ||||||||||
Onboard and other | 74,973 | 79,413 | ||||||||||
Payroll and related | 247,147 | 223,107 | ||||||||||
Fuel | 125,024 | 98,253 | ||||||||||
Food | 49,216 | 55,045 | ||||||||||
Other | 165,532 | 141,569 | ||||||||||
Total cruise operating expense | 994,260 | 826,651 | ||||||||||
Other operating expense | ||||||||||||
Marketing, general and administrative | 270,689 | 248,942 | ||||||||||
Depreciation and amortization | 198,197 | 169,741 | ||||||||||
Impairment loss | 1,607,797 | - | ||||||||||
Total other operating expense | 2,076,683 | 418,683 | ||||||||||
Operating income (loss) | (1,824,061 | ) | 158,296 | |||||||||
Non-operating income (expense) | ||||||||||||
Interest expense, net | (68,907 | ) | (73,503 | ) | ||||||||
Other income (expense), net | 5,823 | (434 | ) | |||||||||
Total non-operating income (expense) | (63,084 | ) | (73,937 | ) | ||||||||
Net income (loss) before income taxes | (1,887,145 | ) | 84,359 | |||||||||
Income tax benefit | 6,173 | 33,798 | ||||||||||
Net income (loss) | $ | (1,880,972 | ) | $ | 118,157 | |||||||
Weighted-average shares outstanding | ||||||||||||
Basic | 213,630,798 | 217,241,473 | ||||||||||
Diluted | 213,630,798 | 218,873,272 | ||||||||||
Earnings (loss) per share | ||||||||||||
Basic | $ | (8.80 | ) | $ | 0.54 | |||||||
Diluted | $ | (8.80 | ) | $ | 0.54 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||||||||
(Unaudited) | ||||||||
(in thousands) | ||||||||
Three Months Ended | ||||||||
2020 | 2019 | |||||||
Net income (loss) | $ | (1,880,972 | ) | $ | 118,157 | |||
Other comprehensive income (loss): | ||||||||
Shipboard Retirement Plan | 102 | 95 | ||||||
Cash flow hedges: | ||||||||
Net unrealized gain (loss) | (305,860 | ) | 15,152 | |||||
Amount realized and reclassified into earnings | 21,999 | (7,000 | ) | |||||
Total other comprehensive income (loss) | (283,759 | ) | 8,247 | |||||
Total comprehensive income (loss) | $ | (2,164,731 | ) | $ | 126,404 |
CONSOLIDATED BALANCE SHEETS | ||||||||
(Unaudited) | ||||||||
(in thousands, except share data) | ||||||||
2020 | 2019 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 1,360,261 | $ | 252,876 | ||||
Accounts receivable, net | 96,277 | 75,109 | ||||||
Inventories | 85,516 | 95,427 | ||||||
Prepaid expenses and other assets | 154,281 | 306,733 | ||||||
Total current assets | 1,696,335 | 730,145 | ||||||
Property and equipment, net | 13,567,576 | 13,135,337 | ||||||
98,134 | 1,388,931 | |||||||
Tradenames | 500,525 | 817,525 | ||||||
Other long-term assets | 599,939 | 612,661 | ||||||
Total assets | $ | 16,462,509 | $ | 16,684,599 | ||||
Liabilities and shareholders' equity | ||||||||
Current liabilities: | ||||||||
Current portion of long-term debt | $ | 173,797 | $ | 746,358 | ||||
Accounts payable | 364,216 | 100,777 | ||||||
Accrued expenses and other liabilities | 762,253 | 782,275 | ||||||
Advance ticket sales | 1,659,527 | 1,954,980 | ||||||
Total current liabilities | 2,959,793 | 3,584,390 | ||||||
Long-term debt | 8,432,425 | 6,055,335 | ||||||
Other long-term liabilities | 695,637 | 529,295 | ||||||
Total liabilities | 12,087,855 | 10,169,020 | ||||||
Commitments and contingencies | ||||||||
Shareholders' equity: | ||||||||
Ordinary shares, |
||||||||
and 214,525,261 shares outstanding at |
||||||||
213,082,411 shares outstanding at |
239 | 237 | ||||||
Additional paid-in capital | 4,257,571 | 4,235,690 | ||||||
Accumulated other comprehensive income (loss) | (579,249 | ) | (295,490 | ) | ||||
Retained earnings | 1,950,019 | 3,829,068 | ||||||
Treasury shares (24,450,859 ordinary shares at |
(1,253,926 | ) | (1,253,926 | ) | ||||
Total shareholders' equity | 4,374,654 | 6,515,579 | ||||||
Total liabilities and shareholders' equity | $ | 16,462,509 | $ | 16,684,599 |
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||
(Unaudited) | ||||||||||||
(in thousands) | ||||||||||||
Three Months Ended | ||||||||||||
2020 | 2019 | |||||||||||
Cash flows from operating activities | ||||||||||||
Net income (loss) | $ | (1,880,972 | ) | $ | 118,157 | |||||||
Adjustments to reconcile net income (loss) to | ||||||||||||
net cash provided by (used in) operating activities: | ||||||||||||
Depreciation and amortization expense | 195,195 | 169,714 | ||||||||||
Goodwill and Tradenames impairment | 1,607,797 | - | ||||||||||
Deferred income taxes, net | (6,120 | ) | (32,094 | ) | ||||||||
Loss on unrealized derivatives | 13,619 | 4 | ||||||||||
Loss on extinguishment of debt | - | 2,903 | ||||||||||
Provision for bad debts and inventory obsolescence | 8,372 | 1,022 | ||||||||||
Share-based compensation expense | 32,758 | 26,999 | ||||||||||
Net foreign currency adjustments | (1,386 | ) | (1,896 | ) | ||||||||
Changes in operating assets and liabilities: | ||||||||||||
Accounts receivable, net | (23,109 | ) | (2,179 | ) | ||||||||
Inventories | 9,258 | (496 | ) | |||||||||
Prepaid expenses and other assets | 145,768 | (59,821 | ) | |||||||||
Accounts payable | 258,215 | (89,914 | ) | |||||||||
Accrued expenses and other liabilities | (123,552 | ) | (44,281 | ) | ||||||||
Advance ticket sales | (288,544 | ) | 439,352 | |||||||||
Net cash provided by (used in) operating activities | (52,701 | ) | 527,470 | |||||||||
Cash flows from investing activities | ||||||||||||
Additions to property and equipment, net | (610,155 | ) | (214,559 | ) | ||||||||
Cash received on settlement of derivatives | - | 289 | ||||||||||
Cash paid on settlement of derivatives | (28,606 | ) | - | |||||||||
Other | 868 | 259 | ||||||||||
Net cash used in investing activities | (637,893 | ) | (214,011 | ) | ||||||||
Cash flows from financing activities | ||||||||||||
Repayments of long-term debt | (181,530 | ) | (2,345,589 | ) | ||||||||
Proceeds from long-term debt | 2,007,870 | 2,392,000 | ||||||||||
Proceeds from employee related plans | 4,100 | 7,744 | ||||||||||
Net share settlement of restricted share units | (14,975 | ) | (18,850 | ) | ||||||||
Purchase of treasury shares | - | (199,996 | ) | |||||||||
Deferred financing fees and other | (12,993 | ) | (7,911 | ) | ||||||||
Net cash provided by (used in) financing activities | 1,802,472 | (172,602 | ) | |||||||||
Effect of exchange rates on cash and cash equivalents | (4,493 | ) | - | |||||||||
Net increase in cash and cash equivalents | 1,107,385 | 140,857 | ||||||||||
Cash and cash equivalents at beginning of the period | 252,876 | 163,851 | ||||||||||
Cash and cash equivalents at end of the period | $ | 1,360,261 | $ | 304,708 |
NON-GAAP RECONCILING INFORMATION | ||||||||||
(Unaudited) | ||||||||||
The following table sets forth selected statistical information: | ||||||||||
Three Months Ended | ||||||||||
2020 | 2019 | |||||||||
Passengers carried | 499,729 | 645,052 | ||||||||
Passenger Cruise Days | 4,278,602 | 4,975,440 | ||||||||
Capacity Days | 4,123,858 | 4,716,929 | ||||||||
Occupancy Percentage | 103.8% | 105.5% | ||||||||
Net Revenue, Gross Yield and Net Yield were calculated as follows (in thousands, except Capacity Days and Yield data): | ||||||||||
Three Months Ended | ||||||||||
2020 | ||||||||||
Constant | ||||||||||
2020 | Currency | 2019 | ||||||||
Passenger ticket revenue | $ | 840,791 | $ | 842,590 | $ | 973,273 | ||||
Onboard and other revenue | 406,091 | 406,091 | 430,357 | |||||||
Total revenue | 1,246,882 | 1,248,681 | 1,403,630 | |||||||
Less: | ||||||||||
Commissions, transportation | ||||||||||
and other expense | 332,368 | 333,769 | 229,264 | |||||||
Onboard and other expense | 74,973 | 74,973 | 79,413 | |||||||
Net Revenue | 839,541 | 839,939 | 1,094,953 | |||||||
Capacity Days | 4,123,858 | 4,123,858 | 4,716,929 | |||||||
Gross Yield | $ | 302.36 | $ | 302.79 | $ | 297.57 | ||||
Net Yield | $ | 203.58 | $ | 203.68 | $ | 232.13 | ||||
NON-GAAP RECONCILING INFORMATION | ||||||||||
(Unaudited) | ||||||||||
Gross Cruise Cost, |
||||||||||
Three Months Ended | ||||||||||
2020 | ||||||||||
Constant | ||||||||||
2020 | Currency | 2019 | ||||||||
Total cruise operating expense | $ | 994,260 | $ | 997,292 | $ | 826,651 | ||||
Marketing, general and | ||||||||||
administrative expense | 270,689 | 271,330 | 248,942 | |||||||
Gross Cruise Cost | 1,264,949 | 1,268,622 | 1,075,593 | |||||||
Less: | ||||||||||
Commissions, transportation | ||||||||||
and other expense | 332,368 | 333,769 | 229,264 | |||||||
Onboard and other expense | 74,973 | 74,973 | 79,413 | |||||||
|
857,608 | 859,880 | 766,916 | |||||||
Less: Fuel expense | 125,024 | 125,024 | 98,253 | |||||||
Net Cruise Cost Excluding Fuel | 732,584 | 734,856 | 668,663 | |||||||
Less Non-GAAP Adjustments: | ||||||||||
Non-cash deferred compensation (1) | 666 | 666 | 534 | |||||||
Non-cash share-based compensation (2) | 32,758 | 32,758 | 26,999 | |||||||
Redeployment of Norwegian Joy (3) | - | - | 5,016 | |||||||
Adjusted Net Cruise Cost Excluding Fuel | $ | 699,160 | $ | 701,432 | $ | 636,114 | ||||
Capacity Days | 4,123,858 | 4,123,858 | 4,716,929 | |||||||
Gross Cruise Cost per Capacity Day | $ | 306.74 | $ | 307.63 | $ | 228.03 | ||||
$ | 207.96 | $ | 208.51 | $ | 162.59 | |||||
Net Cruise Cost Excluding Fuel per Capacity Day | $ | 177.65 | $ | 178.20 | $ | 141.76 | ||||
Adjusted Net Cruise Cost Excluding Fuel per Capacity Day | $ | 169.54 | $ | 170.09 | $ | 134.86 | ||||
(1) Non-cash deferred compensation expenses related to the crew pension plan and other crew expenses, which are included in payroll and related expense. | ||||||||||
(2) Non-cash share-based compensation expense related to equity awards, which are included in marketing, general and administrative expense and payroll and related expense. | ||||||||||
(3) Expenses related to the redeployment of Norwegian Joy from |
NON-GAAP RECONCILING INFORMATION | ||||||||
(Unaudited) | ||||||||
Adjusted Net Income (Loss) and Adjusted EPS were calculated as follows (in thousands, except share and per share data): | ||||||||
Three Months Ended | ||||||||
2020 | 2019 | |||||||
Net income (loss) | $ | (1,880,972 | ) | $ | 118,157 | |||
Non-GAAP Adjustments: | ||||||||
Non-cash deferred compensation (1) | 991 | 879 | ||||||
Non-cash share-based compensation (2) | 32,758 | 26,999 | ||||||
Extinguishment of debt (3) | - | 6,093 | ||||||
Amortization of intangible assets (4) | 2,774 | 4,603 | ||||||
Redeployment of Norwegian Joy (5) | - | 25,028 | ||||||
Impairment on goodwill and tradenames (6) | 1,633,162 | - | ||||||
Adjusted Net Income (Loss) | $ | (211,287 | ) | $ | 181,759 | |||
Diluted weighted-average shares outstanding - Net income (loss) and Adjusted Net Income (Loss) | 213,630,798 | 218,873,272 | ||||||
Diluted earnings (loss) per share | $ | (8.80 | ) | $ | 0.54 | |||
Adjusted EPS | $ | (0.99 | ) | $ | 0.83 | |||
(1) Non-cash deferred compensation expenses related to the crew pension plan and other crew expenses are included in payroll and related expense and other income (expense), net. | ||||||||
(2) Non-cash share-based compensation expenses related to equity awards are included in marketing, general and administrative expense and payroll and related expense. | ||||||||
(3) Losses on extinguishments and modifications of debt are included in interest expense, net. | ||||||||
(4) Amortization of intangible assets related to the Acquisition of Prestige are included in depreciation and amortization expense. | ||||||||
(5) Expenses related to the redeployment of Norwegian Joy from |
||||||||
(6) Impairment loss consists of goodwill, tradename and property and equipment impairments. The impairments of goodwill and tradenames are included in impairment loss and the impairment of property and equipment is included in depreciation and amortization expense. | ||||||||
NON-GAAP RECONCILING INFORMATION | ||||||||
(Unaudited) | ||||||||
EBITDA and Adjusted EBITDA were calculated as follows (in thousands): | ||||||||
Three Months Ended | ||||||||
2020 | 2019 | |||||||
Net income (loss) | $ | (1,880,972 | ) | $ | 118,157 | |||
Interest expense, net | 68,907 | 73,503 | ||||||
Income tax benefit | (6,173 | ) | (33,798 | ) | ||||
Depreciation and amortization expense | 198,197 | 169,741 | ||||||
EBITDA | (1,620,041 | ) | 327,603 | |||||
Other (income) expense, net (1) | (5,823 | ) | 434 | |||||
Non-GAAP Adjustments: | ||||||||
Non-cash deferred compensation (2) | 666 | 534 | ||||||
Non-cash share-based compensation (3) | 32,758 | 26,999 | ||||||
Redeployment of Norwegian Joy (4) | - | 5,016 | ||||||
Impairment of goodwill and tradenames (5) | 1,607,797 | - | ||||||
Adjusted EBITDA | $ | 15,357 | $ | 360,586 | ||||
(1) Primarily consists of gains and losses, net for forward currency exchanges and proceeds from insurance and litigation settlements. | ||||||||
(2) Non-cash deferred compensation expenses related to the crew pension plan and other crew expenses are included in payroll and related expense. | ||||||||
(3) Non-cash share-based compensation expenses related to equity awards are included in marketing, general and administrative expense and payroll and related expense. | ||||||||
(4) Expenses related to the redeployment of Norwegian Joy from |
||||||||
(5) Impairment loss consists of goodwill and tradename impairments. |
Source: Norwegian Cruise Line Holdings Ltd.