Norwegian Cruise Line Reports Financial Results for the Second Quarter 2014
Second Quarter Highlights
-
Adjusted EPS improvement to
$0.58 from$0.29 in 2013 - Net Yield increase of 3.3%
-
Revenue increase of 18.9% to
$765.9 million -
Adjusted EBITDA increase of 44.0% to
$219.4 million
Second Quarter Results
"This quarter marks the first full quarter with both Breakaway-class ships in operation," said
For the second quarter of 2014, the Company reported Adjusted EPS of
Net Revenue in the period increased 23.6% to
Adjusted Net Cruise Cost Excluding Fuel per Capacity Day decreased 2.3% (2.7% on a Constant Currency basis). The Company's fuel price per metric ton, net of hedges, was
Interest expense, net was
2014 Guidance and Sensitivities
In addition to the results for the second quarter, the Company also provided the following guidance for the third quarter and full year 2014, along with accompanying sensitivities.
"We are pleased to reiterate full year earnings guidance given the current promotional environment," said Sheehan. "We are taking advantage of opportunities to strategically invest in initiatives to increase brand awareness and enhance the guest experience to drive long term returns."
| (In thousands except per share data) | Third Quarter 2014 | Full Year 2014 | ||
|
As Reported |
Constant Currency |
As Reported |
Constant Currency |
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| Net Yield | 2.25 - 2.75% | 2.25 - 2.75% | 3.0 - 3.5% | 3.0 - 3.5% |
| Adjusted Net Cruise Cost | 2.0 - 3.0% | 2.0 - 3.0% | Flat to Slightly Up | Flat to Slightly Up |
| Excluding Fuel per Capacity Day (1) | ||||
| Adjusted EPS |
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| Depreciation and amortization |
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| Interest Expense, net |
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| Effect on Adjusted EPS of a |
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| 1% change in Net Yield (2) | ||||
| (1) Full year includes three Dry-docks | ||||
| (2) Based on midpoint of guidance | ||||
The following reflects the Company's expectations regarding fuel consumption and pricing, along with accompanying sensitivities.
| Third Quarter 2014 | Full Year 2014 | |
| Fuel consumption in metric tons | 125,000 | 502,000 |
| Fuel price per metric ton, net of hedges |
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| Effect on Adjusted EPS of a 10% change in fuel prices, net of hedges |
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As of
Future capital commitments consist of contracted commitments, including future expected capital expenditures for business enhancements and ship construction contracts. As of
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Remaining Quarters |
Full Year |
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| 2014 | 2014 | 2015 | 2016 | |
| Ship construction | $ 77,234 | $ 810,496 | $ 975,971 | $ 116,463 |
| Ship financing | (45,898) | (706,328) | (771,021) | (45,898) |
| Ship construction net of financing | $ 31,336 | $ 104,168 | $ 204,950 | $ 70,565 |
| Business Enhancement Capital Expenditures, including ROI Capital Expenditures (1) (2) (3) | $ 56,000 | $ 98,000 | $ 83,000 | $ 90,000 |
| Incremental ROI Capital Expenditures for exhaust gas scrubbers | $ 20,000 | $ 27,000 | $ 27,000 | $ 10,000 |
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(1) Remaining Quarters and Full Year 2014 include |
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| (2) Remaining Quarters and Full Year 2014, 2015 and 2016 exclude amounts for exhaust gas scrubbers. | ||||
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(3) Remaining Quarters and Full Year 2014 and 2015 include investment for development of the Company's future cruise destination in |
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Company Updates and Other Business Highlights
The Company recently announced an order for two Breakaway Plus-class ships with export credit financing in place. The contract price for the 164,600 gross ton, 4,200-berth vessels is
In April, the Company announced the authorization by its Board of Directors of a three-year,
In May, the Company announced Norwegian NEXT, a two-year,
Conference Call
The Company has scheduled a conference call for
About
The Company recently took delivery of its most innovative ship to date, the 4,000-passenger Norwegian Getaway on
High resolution, downloadable images are available at www.ncl.com/pressroom. For further information on
Terminology
Adjusted EBITDA. EBITDA adjusted for other income (expense) and other supplemental adjustments.
Adjusted EPS. Adjusted Net Income divided by the number of diluted weighted-average shares.
Adjusted Free Cash Flow. Free
Adjusted Interest Expense, net. Interest expense, net adjusted for supplemental adjustments.
Adjusted Net Cruise Cost Excluding Fuel. Net Cruise Cost excluding fuel expense adjusted for supplemental adjustments.
Adjusted Net Income. Net income (loss) adjusted for supplemental adjustments.
Berths. Double occupancy capacity per stateroom (single occupancy per studio stateroom) even though many staterooms can accommodate three or more passengers.
Business Enhancement Capital Expenditures. Capital expenditures other than those related to new ship construction and ROI Capital Expenditures.
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 U.S. dollar exchange rate of a comparable period in order to eliminate the effects of foreign exchange fluctuations.
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, depreciation and amortization.
Free
GAAP. Generally accepted accounting principles in the U.S.
Gross Cruise Cost. The sum of total cruise operating expense and marketing, general and administrative expense.
Gross Yield. Total revenue per Capacity Day.
Initial Public Offering (or "IPO"). The initial public offering of 27,058,824 ordinary shares, par value
Net Cruise Cost. Gross Cruise Cost less commissions, transportation and other expense and onboard and other expense.
Net Cruise Cost Excluding Fuel. Net Cruise Cost less fuel expense.
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 staterooms.
Passenger Cruise Days. The number of passengers carried for the period, multiplied by the number of days in their respective cruises.
ROI Capital Expenditures. Comprised of project-based capital expenditures which have a quantified return on investment.
Secondary Offering. Public offering in
Selling Shareholders.
Shipboard Retirement Plan. An unfunded defined benefit pension plan for certain crew members which computes benefits based on years of service, subject to certain requirements.
Non-GAAP Financial Measures
We use certain non-GAAP financial measures, such as Net Revenue, Net Yield, Net Cruise Cost, Adjusted Net Cruise Cost Excluding Fuel and Adjusted EBITDA to enable us to analyze our performance. We utilize Net Revenue and Net Yield to manage our business on a day-to-day basis and believe that they are the most relevant measures of our revenue performance because they reflect the revenue earned by us net of significant variable costs. In measuring our ability to control costs in a manner that positively impacts net income, we believe changes in Net Cruise Cost and Adjusted Net Cruise Cost Excluding Fuel to be the most relevant indicators of our performance.
As our business includes the sourcing of passengers and deployment of vessels outside of
We believe that Adjusted EBITDA is appropriate as a supplemental financial measure as it is used by management to assess operating performance. We believe that Adjusted EBITDA is a useful measure in determining the Company's performance as it reflects certain operating drivers of the Company's 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. Adjusted EBITDA is not intended to be a measure of liquidity or cash flows from operations or measures 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.
In addition, Adjusted Net Income and Adjusted EPS are supplemental financial measures used to demonstrate GAAP net income and earnings per share excluding certain charges. We use Adjusted Net Income and Adjusted EPS as key performance measures of our earnings performance, and 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. These charges vary from period to period; thus, our presentation of Adjusted Net Income and Adjusted EPS may not be indicative of future adjustments or results.
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 items in our consolidated financial statements below.
Note on Forward-Looking Statements
This release may contain "forward-looking statements" intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. The words "expect," "anticipate," "goal," "project," "plan," "believe," "seek," "will," "may," "forecast," "estimate," "intend," "future," and similar expressions may identify forward-looking statements, which are not historical in nature. These forward-looking statements reflect Norwegian's current expectations, and are subject to a number of risks, uncertainties, and assumptions. Among the important risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements are the adverse impact of general economic conditions and related factors such as high levels of unemployment and underemployment, fuel price increases,
declines in the securities and real estate markets, and perceptions of these conditions that decrease the level of disposable income of consumers or consumer confidence; changes in cruise capacity, as well as capacity changes in the overall vacation industry; intense competition from other cruise companies as well as non-cruise vacation alternatives which could affect our ability to compete effectively; negative publicity surrounding the cruise industry; changes in fuel prices and/or other cruise operating costs; the risks associated with operating internationally, including changes in interest rates and/or foreign currency rates; the continued borrowing availability under our credit facilities and compliance with our financial covenants; our substantial indebtedness, including the inability to generate the necessary amount of cash to service our existing debt, and to repay our credit
facilities; our ability to incur significantly more debt despite our substantial existing indebtedness; the impact of volatility and disruptions in the global credit and financial markets which may adversely affect our ability to borrow and could increase our counterparty credit risks, including those under our credit facilities, derivatives, contingent obligations, insurance contracts and new ship progress payment guarantees; adverse events impacting the security of travel such as terrorist acts, acts of piracy, armed conflict and other international events; the impact of any future changes relating to how external distribution channels sell and market our cruises; the impact of any future increases in the price of, or major changes or reduction in, commercial airline services; the impact of delays, costs and other factors resulting from emergency ship repairs as well as scheduled
repairs, maintenance and refurbishment of our ships; the delivery schedules and estimated costs of new ships on terms that are favorable or consistent with our expectations; the impact of problems encountered at shipyards, as well as, any potential claim, impairment loss, cancellation or breach of contract in connection with our contracts with shipyards; the impact of the spread of epidemics and viral outbreaks; the uncertain political environment in countries where we operate; the impact of weather and natural disasters; accidents and other incidents affecting the health, safety, security and vacation satisfaction of guests or causing damage to ships, which could cause the modification of itineraries or cancellation of a cruise or series of cruises; the impact of pending or threatened litigation and investigations; our ability to obtain insurance coverage on terms that are favorable or
consistent with our expectations; the impact of any breaches in data security or other disturbances to our information technology and other networks; the impact of amendments to our collective bargaining agreements for crew members and other employee relation issues; the continued availability of attractive port destinations; our ability to attract and retain key personnel and qualified shipboard crew, maintain good relations with employee unions, maintain or renegotiate our collective bargaining agreements on favorable terms and prevent any disruptions in work; changes involving the tax, environmental, health, safety, security and other regulatory regimes in which we operate; increases in our future fuel costs related to implementing IMO regulations, which require the use of higher priced low sulfur fuels in certain cruising areas; the implementation of regulations in the U.S. requiring
U.S. citizens to obtain passports for travel to additional foreign destinations; and other factors discussed in the Company's filings with the
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| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
| (Unaudited) | ||||
| (in thousands, except share and per share data) | ||||
| Three Months Ended | Six Months Ended | |||
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| 2014 | 2013 | 2014 | 2013 | |
| Revenue | ||||
| Passenger ticket | $ 538,059 | $ 457,619 | $ 996,549 | $ 816,547 |
| Onboard and other | 227,868 | 186,814 | 433,406 | 355,517 |
| Total revenue | 765,927 | 644,433 | 1,429,955 | 1,172,064 |
| Cruise operating expense | ||||
| Commissions, transportation and other | 114,712 | 112,985 | 231,522 | 207,564 |
| Onboard and other | 55,467 | 49,316 | 103,391 | 91,687 |
| Payroll and related | 106,352 | 82,809 | 205,418 | 156,848 |
| Fuel | 77,832 | 75,582 | 156,872 | 148,080 |
| Food | 42,734 | 33,674 | 80,417 | 63,636 |
| Other | 73,699 | 66,713 | 139,086 | 115,953 |
| Total cruise operating expense | 470,796 | 421,079 | 916,706 | 783,768 |
| Other operating expense | ||||
| Marketing, general and administrative | 83,084 | 74,111 | 166,473 | 159,317 |
| Depreciation and amortization | 63,459 | 53,854 | 125,099 | 102,602 |
| Total other operating expense | 146,543 | 127,965 | 291,572 | 261,919 |
| Operating income | 148,588 | 95,389 | 221,677 | 126,377 |
| Non-operating income (expense) | ||||
| Interest expense, net | (31,860) | (103,686) | (63,032) | (231,342) |
| Other income (expense) | (325) | 429 | 63 | 1,794 |
| Total non-operating income (expense) | (32,185) | (103,257) | (62,969) | (229,548) |
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116,403 | (7,868) | 158,708 | (103,171) |
| Income tax benefit (expense) | (3,124) | (1,047) | 6,263 | (3,244) |
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113,279 | (8,915) | 164,971 | (106,415) |
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1,663 | (74) | 2,088 | (1,179) |
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$ 111,616 | $ (8,841) | $ 162,883 | $ (105,236) |
| Weighted-average shares outstanding | ||||
| Basic | 204,965,718 | 203,997,492 | 205,063,870 | 201,189,562 |
| Diluted | 210,472,991 | 203,997,492 | 210,742,655 | 201,189,562 |
| Earnings (loss) per share | ||||
| Basic | $ 0.54 | $ (0.04) | $ 0.79 | $ (0.52) |
| Diluted | $ 0.54 | $ (0.04) | $ 0.78 | $ (0.52) |
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| CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||||
| (Unaudited) | ||||
| (in thousands) | ||||
| Three Months Ended | Six Months Ended | |||
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| 2014 | 2013 | 2014 | 2013 | |
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$ 113,279 | $ (8,915) |
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| Other comprehensive income (loss): | ||||
| Shipboard Retirement Plan | 95 | 117 | 189 | 234 |
| Cash flow hedges: | ||||
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8,797 | (9,064) | (6,559) | (28,620) |
| Amount realized and reclassified into earnings (2) | (147) | (236) | 6 | (2,011) |
| Total other comprehensive income (loss) | 8,745 | (9,183) | (6,364) | (30,397) |
| Total comprehensive income (loss) | 122,024 | (18,098) | 158,607 | (136,812) |
| Comprehensive income (loss) attributable to non-controlling interest | 1,757 | (193) | 2,045 | (1,788) |
|
Total comprehensive income (loss) attributable to |
$ 120,267 | $ (17,905) |
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(1) |
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(2) |
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| CONSOLIDATED BALANCE SHEETS | ||
| (Unaudited) | ||
| (in thousands, except share data) | ||
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| 2014 | 2013 | |
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents | $ 63,483 | $ 56,467 |
| Accounts receivable, net | 27,145 | 18,260 |
| Inventories | 52,566 | 43,715 |
| Prepaid expenses and other assets | 67,030 | 64,482 |
| Total current assets | 210,224 | 182,924 |
| Property and equipment, net | 6,305,328 | 5,647,670 |
| Goodwill and tradenames | 611,330 | 611,330 |
| Other long-term assets | 187,921 | 209,054 |
| Total assets | $ 7,314,803 | $ 6,650,978 |
| Liabilities and shareholders' equity | ||
| Current liabilities: | ||
| Current portion of long-term debt | $ 372,911 | $ 286,575 |
| Accounts payable | 102,755 | 86,788 |
| Accrued expenses and other liabilities | 256,569 | 253,752 |
| Due to affiliate | 37,026 | 36,544 |
| Advance ticket sales | 610,639 | 411,829 |
| Total current liabilities | 1,379,900 | 1,075,488 |
| Long-term debt | 3,129,337 | 2,841,214 |
| Due to affiliate | 36,880 | 55,128 |
| Other long-term liabilities | 53,905 | 47,882 |
| Total liabilities | 4,600,022 | 4,019,712 |
| Commitments and contingencies | ||
| Shareholders' equity: | ||
|
Ordinary shares, |
205 | 205 |
| Additional paid-in capital | 2,817,605 | 2,822,864 |
| Accumulated other comprehensive income (loss) | (23,011) | (16,690) |
| Retained earnings (deficit) | (34,588) | (197,471) |
| Treasury shares (2,397,294 ordinary shares at cost) | (79,155) | -- |
| Total shareholders' equity controlling interest | 2,681,056 | 2,608,908 |
| Non-controlling interest | 33,725 | 22,358 |
| Total shareholders' equity | 2,714,781 | 2,631,266 |
| Total liabilities and shareholders' equity | $ 7,314,803 | $ 6,650,978 |
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| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||
| (Unaudited) | ||
| (in thousands) | ||
| Six Months Ended | ||
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| 2014 | 2013 | |
| Cash flows from operating activities | ||
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$ 164,971 | $ (106,415) |
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
| Depreciation and amortization expense | 141,228 | 115,946 |
| Gain on derivatives | (62) | (270) |
| Deferred income taxes, net | 2,786 | 2,968 |
| Write-off of deferred financing fees | -- | 36,357 |
| Share-based compensation expense | 5,079 | 19,356 |
| Changes in operating assets and liabilities: | ||
| Accounts receivable, net | (8,885) | (1,308) |
| Inventories | (8,851) | (5,748) |
| Prepaid expenses and other assets | (8,943) | 961 |
| Accounts payable | 15,967 | 17,974 |
| Accrued expenses and other liabilities | 20,905 | (14,909) |
| Advance ticket sales | 194,913 | 187,868 |
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519,108 | 252,780 |
| Cash flows from investing activities | ||
| Additions to property and equipment | (787,566) | (759,020) |
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(787,566) | (759,020) |
| Cash flows from financing activities | ||
| Repayments of long-term debt | (540,237) | (2,081,520) |
| Repayments to Affiliate | (18,521) | (98,171) |
| Proceeds from long-term debt | 914,545 | 2,289,253 |
| Proceeds from the issuance of ordinary shares, net | -- | 473,017 |
| Proceeds from the exercise of share options | 2,158 | -- |
| Purchases of treasury shares | (79,155) | -- |
| NCLC partnership tax distributions | (3,115) | -- |
| Other | (201) | (38,999) |
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275,474 | 543,580 |
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7,016 | 37,340 |
| Cash and cash equivalents at beginning of the period | 56,467 | 45,500 |
| Cash and cash equivalents at end of the period | $ 63,483 | $ 82,840 |
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| NON-GAAP RECONCILING INFORMATION | ||||||
| (Unaudited) | ||||||
| The following table sets forth selected statistical information: | ||||||
| Three Months Ended | Six Months Ended | |||||
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| 2014 | 2013 | 2014 | 2013 | |||
| Passengers carried | 482,837 | 405,646 | 990,109 | 773,656 | ||
| Passenger Cruise Days | 3,394,649 | 2,763,358 | 6,470,051 | 5,291,550 | ||
| Capacity Days | 3,074,415 | 2,569,525 | 5,970,399 | 4,920,824 | ||
| Occupancy Percentage | 110.4% | 107.5% | 108.4% | 107.5% | ||
| Gross Yield and Net Yield were calculated as follows (in thousands, except Capacity Days and Yield data): | ||||||
| Three Months Ended | Six Months Ended | |||||
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| 2014 | 2014 | |||||
| Constant | Constant | |||||
| 2014 | Currency | 2013 | 2014 | Currency | 2013 | |
| Passenger ticket revenue |
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$ 996,549 | $ 995,968 | $ 816,547 |
| Onboard and other revenue | 227,868 | 228,003 | 186,814 | 433,406 | 433,605 | 355,517 |
| Total revenue | 765,927 | 764,245 | 644,433 | 1,429,955 | 1,429,573 | 1,172,064 |
| Less: | ||||||
| Commissions, transportation and other expense | 114,712 | 114,244 | 112,985 | 231,522 | 231,358 | 207,564 |
| Onboard and other expense | 55,467 | 55,601 | 49,316 | 103,391 | 103,589 | 91,687 |
| Net Revenue |
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$ 1,095,042 |
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$ 872,813 |
| Capacity Days | 3,074,415 | 3,074,415 | 2,569,525 | 5,970,399 | 5,970,399 | 4,920,824 |
| Gross Yield | $ 249.13 | $ 248.58 | $ 250.80 | $ 239.51 | $ 239.44 | $ 238.18 |
| Net Yield | $ 193.78 | $ 193.34 | $ 187.63 | $ 183.41 | $ 183.34 | $ 177.37 |
| Gross Cruise Cost, Net Cruise Cost, Net Cruise Cost Excluding Fuel and Adjusted Net Cruise Cost Excluding Fuel were calculated as follows (in thousands, except Capacity Days and per Capacity Day data): | ||||||
| Three Months Ended | Six Months Ended | |||||
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| 2014 | 2014 | |||||
| Constant | Constant | |||||
| 2014 | Currency | 2013 | 2014 | Currency | 2013 | |
| Total cruise operating expense |
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$ 916,706 | $ 915,696 | $ 783,768 |
| Marketing, general and administrative expense | 83,084 | 82,603 | 74,111 | 166,473 | 165,630 | 159,317 |
| Gross Cruise Cost | 553,880 | 552,474 | 495,190 | 1,083,179 | 1,081,326 | 943,085 |
| Less: | ||||||
| Commissions, transportation and other expense | 114,712 | 114,244 | 112,985 | 231,522 | 231,358 | 207,564 |
| Onboard and other expense | 55,467 | 55,601 | 49,316 | 103,391 | 103,589 | 91,687 |
| Net Cruise Cost | 383,701 | 382,629 | 332,889 | 748,266 | 746,379 | 643,834 |
| Less: Fuel expense | 77,832 | 77,832 | 75,582 | 156,872 | 156,872 | 148,080 |
| Net Cruise Cost Excluding Fuel | 305,869 | 304,797 | 257,307 | 591,394 | 589,507 | 495,754 |
| Less: Non-cash compensation | 5,014 | 5,014 | -- | 7,688 | 7,688 | 18,527 |
| Secondary Offering expenses | -- | -- | -- | 1,877 | 1,877 | -- |
| Other (1) | 2,331 | 2,331 | 1,923 | 2,331 | 2,331 | 1,923 |
| Adjusted Net Cruise Cost Excluding Fuel |
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$ 579,498 | $ 577,611 | $ 475,304 |
| Capacity Days | 3,074,415 | 3,074,415 | 2,569,525 | 5,970,399 | 5,970,399 | 4,920,824 |
| Gross Cruise Cost per Capacity Day | $ 180.16 | $ 179.70 | $ 192.72 | $ 181.42 | $ 181.11 | $ 191.65 |
| Net Cruise Cost per Capacity Day | $ 124.80 | $ 124.46 | $ 129.55 | $ 125.33 | $ 125.01 | $ 130.84 |
| Net Cruise Cost Excluding Fuel per Capacity Day | $ 99.49 | $ 99.14 | $ 100.14 | $ 99.05 | $ 98.74 | $ 100.75 |
| Adjusted Net Cruise Cost Excluding Fuel per Capacity Day | $ 97.10 | $ 96.75 | $ 99.39 | $ 97.06 | $ 96.75 | $ 96.59 |
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(1) Included in the three and six months ended |
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| NON-GAAP RECONCILING INFORMATION | |||||||
| (Unaudited) | |||||||
| Adjusted Net Income and Adjusted EPS were calculated as follows (in thousands, except share and per share data): | |||||||
| Three Months Ended | Six Months Ended | ||||||
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| 2014 | 2013 | 2014 | 2013 | ||||
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$ 111,616 | $ (8,841) | $ 162,883 | $ (105,236) | |||
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1,663 | (74) | 2,088 | (1,179) | |||
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113,279 | (8,915) | 164,971 | (106,415) | |||
| Non-cash share-based compensation related to the IPO | -- | -- | -- | 18,527 | |||
| Non-cash compensation | 5,014 | 509 | 7,688 | 509 | |||
| Taxes related to changes in corporate structure and debt prepayments, net (1) | 511 | (2,146) | (6,174) | (770) | |||
| Expenses related to Secondary Offering | -- | -- | 1,877 | -- | |||
| Expenses related to debt prepayments (2) | -- | 70,068 | -- | 160,573 | |||
| Other (3) | 2,331 | 700 | 2,331 | 700 | |||
| Adjusted Net Income | $ 121,135 | $ 60,216 | $ 170,693 | $ 73,124 | |||
|
Diluted weighted-average shares outstanding - |
210,472,991 | 203,997,492 | (4) | 210,742,655 | 201,189,562 | (5) | |
| Diluted weighted-average shares outstanding - Adjusted Net Income | 210,472,991 | 210,726,281 | 210,742,655 | 207,514,700 | |||
| Diluted earnings (loss) per share | $ 0.54 | $ (0.04) | $ 0.78 | $ (0.52) | |||
| Adjusted EPS | $ 0.58 | $ 0.29 | $ 0.81 | $ 0.35 | |||
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(1) The six months ended |
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| (2) The six months ended 2013 consists of premiums, write-offs of deferred fees and other expenses related to prepayments of debt. | |||||||
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(3) Included in the three and six months ended |
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| (4) Due to a net loss, excludes 6,728,789 shares, as including these would be antidilutive. | |||||||
| (5) Due to a net loss, excludes 6,325,138 shares, as including these would be antidilutive. | |||||||
| EBITDA and Adjusted EBITDA was calculated as follows (in thousands): | |||||||
| Three Months Ended | Six Months Ended | ||||||
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| 2014 | 2013 | 2014 | 2013 | ||||
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$ 111,616 | $ (8,841) | $ 162,883 | $ (105,236) | |||
| Interest expense, net | 31,860 | 103,686 | 63,032 | 231,342 | |||
| Income tax (benefit) expense | 3,124 | 1,047 | (6,263) | 3,244 | |||
| Depreciation and amortization expense | 63,459 | 53,854 | 125,099 | 102,602 | |||
| EBITDA | 210,059 | 149,746 | 344,751 | 231,952 | |||
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1,663 | (74) | 2,088 | (1,179) | |||
| Other (income) expense | 325 | (429) | (63) | (1,794) | |||
| Non-cash compensation | 5,014 | 1,444 | 7,688 | 2,726 | |||
| Non-cash share-based compensation related to IPO | -- | -- | -- | 18,527 | |||
| Expenses related to Secondary Offering | -- | -- | 1,877 | -- | |||
| Other (1) | 2,331 | 1,648 | 2,331 | 1,863 | |||
| Adjusted EBITDA | $ 219,392 | $ 152,335 | $ 358,672 | $ 252,095 | |||
|
(1) Included in the three and six months ended |
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| NON-GAAP RECONCILING INFORMATION | ||
| (Unaudited) | ||
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December 31, | |
| 2014 | 2013 | |
| Long-term debt, net of current portion | $ 3,129,337 | $ 2,841,214 |
| Current portion of long-term | 372,911 | 286,575 |
| Total debt | 3,502,248 | 3,127,789 |
| Less: Cash and cash equivalents | 63,483 | 56,467 |
| Net Debt | 3,438,765 | 3,071,322 |
| Total shareholders' equity | 2,714,781 | 2,631,266 |
| Net Debt and shareholders' equity | $ 6,153,546 | $ 5,702,588 |
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|
55.9% | 53.9% |
| Adjusted Free Cash Flow was calculated as follows (in thousands): | ||
| Six Months Ended | ||
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| 2014 | 2013 | |
|
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$ 519,108 | $ 252,780 |
| Less: Capital expenditures for ship construction | (731,682) | (701,242) |
| Less: Capital expenditures for business enhancements and other | (55,884) | (57,778) |
| Free Cash Flow | (268,458) | (506,240) |
| Proceeds from ship construction financing facilities | 660,430 | 625,900 |
| Fees related to debt prepayment | -- | 124,215 |
| Adjusted Free Cash Flow | $ 391,972 | $ 243,875 |
CONTACT: Investor Relations Contact
Andrea DeMarco
(305) 468-2463
InvestorRelations@ncl.com
Media Contact
AnneMarie Mathews
(305) 436-4799
PublicRelations@ncl.com
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