Norwegian Cruise Line Reports Results for Second Quarter 2013
Net Revenue Increases 12% on Addition of Norwegian Breakaway and Improved Pricing
Adjusted Net Income Grows 67%; Adjusted EPS of
Quarter Highlights
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Adjusted Net Income growth of 67.1% to
$60.2 million with Adjusted EPS of$0.29
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Adjusted EBITDA increase of 12.8% to
$152.3 million
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Net Yield increase of 3.5% (3.7% on a Constant Currency basis)
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Successful delivery and launch of Norwegian Breakaway
- Refinancing transactions strengthen balance sheet, lower interest expense going forward
Second Quarter 2013 Results
"While the addition of Norwegian Breakaway to our fleet was undoubtedly the highlight of the quarter, our strong results, which include our twentieth consecutive quarter of year-over-year Adjusted EBITDA growth, are equally as notable," said
The Company reported Adjusted Net Income for the second quarter of 2013 of
An increase in Capacity Days and improvement in Net Yield resulted in a 12.0% increase in Net Revenue in the quarter. The addition of Norwegian Breakaway to the fleet, partially offset by planned Dry-docks for Pride of America and Norwegian Pearl, contributed to the 8.2% increase in Capacity Days while improvements in both passenger ticket and onboard revenue resulted in a 3.5% (3.7% on a Constant Currency basis) increase in Net Yield.
Adjusted Net Cruise Cost Excluding Fuel per Capacity Day increased 4.8% on both an as reported and Constant Currency basis over prior year due to the timing of planned Dry-docks along with inaugural and launch expenses related to Norwegian Breakaway. Fuel price per metric ton, net of hedges, was essentially flat to prior year at
Interest expense, net in the quarter exceeded prior year by
Transactions in the Quarter
During the quarter the Company completed two refinancing transactions which strengthened the Company's balance sheet and will reduce interest expense going forward. The first transaction, a new
2013 Guidance and Sensitivities
In addition to the results for the second quarter 2013, the Company also issued the following guidance, which reflects its expectations for the third quarter and full year 2013, along with accompanying sensitivities.
| Third Quarter 2013 | Full Year 2013 | |||
| As Reported |
Constant Currency |
As Reported |
Constant Currency |
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| Net Yield | 3.5 to 4.5% | 3.5 to 4.5% | 4.0 to 5.0% | 4.0 to 5.0% |
| Adjusted Net Cruise Cost Excluding Fuel per Capacity Day (1) | 5.0 to 6.0% | 5.0 to 6.0% | 5.0 to 6.0% | 5.0 to 6.0% |
| Adjusted EPS |
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| Depreciation and amortization |
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| Adjusted Interest Expense, net |
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| Effect on Adjusted EPS of a 1% change in Net Yield (2) |
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| (1) Full year includes inaugural costs and three incremental 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 2013 | Full Year 2013 | |
| Fuel consumption in metric tons | 114,000 | 460,000 |
| Fuel price per metric ton |
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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
Newbuild Update and Other Highlights
Norwegian Breakaway, the Company's most innovative ship to date, was christened in a ceremony in
Also in the quarter, the Company revealed additions to the entertainment line-up for Norwegian Getaway, sister ship of Norwegian Breakaway, which is scheduled for delivery in
The Company completed two planned Dry-docks in the quarter for Pride of America and Norwegian Pearl. The Dry-dock for Pride of America, which began late in the first quarter, incorporated several guest-facing enhancements including the addition of the fleet's popular Brazilian steakhouse, Moderno Churrascaria. In addition, two projects were begun during the Dry-dock which will be completed by the end of the year. First is the addition of 32 staterooms, including 24 suites and four Studio staterooms for single travelers. Second, with Pride of America sailing her itinerary entirely within the Emission Control Area, fuel scrubbers are being installed to reduce the ship's emissions. "The combination of additional suites and fuel scrubbers will enhance the returns on an already successful and unique offering in our product mix," said Sheehan regarding the enhancements to Pride of America.
On
Conference Call
The Company has scheduled a conference call for
About
The Company took delivery of its most innovative ship to date, the 4,000-passenger Norwegian Breakaway on
The Company's current largest ship, the 4,100 passenger Norwegian Epic has been named "Best Overall Cruise Ship" by the readers of
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. Diluted earnings (loss) per share adjusted for supplemental adjustments.
Adjusted Free Cash Flow. Free
Adjusted Interest Expense, net. Interest expense, net excluding 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.
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.
Notes Offering. Issuance of
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.
Sponsors. The Apollo Funds, the TPG Viking Funds and Genting HK.
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, is a factor in the evaluation of the performance of management and is the primary metric used in determining the Company's performance incentive bonus paid to its employees. 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 EPS 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 the worldwide economic downturn and related factors such as high levels of unemployment and underemployment, 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 may affect our ability to compete effectively; our substantial leverage, including the inability to generate the necessary amount of cash to service our existing debt, repay our credit facilities if payment is accelerated and incur substantial indebtedness in the future; changes in fuel prices 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 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 that may affect consumer demand for cruises such as terrorist acts, acts of piracy, armed conflict and other international events; the impact of any future changes relating to how travel agents 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 contagious diseases; 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; 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 continued availability of
attractive port destinations; the impact of weather and natural disasters; 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; the control of our Company by our Sponsors whose interests may not continue to be aligned with ours; changes involving the tax, environmental, health, safety, security and other regulatory regimes in which we operate; increases in our future fuel expenses 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; the impact of pending or threatened litigation 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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| 2013 | 2012 | 2013 | 2012 | |
| Revenue | ||||
| Passenger ticket | $ 457,619 | $ 416,219 | $ 816,547 | $ 767,549 |
| Onboard and other | 186,814 | 167,015 | 355,517 | 331,115 |
| Total revenue | 644,433 | 583,234 | 1,172,064 | 1,098,664 |
| Cruise operating expense | ||||
| Commissions, transportation and other | 112,985 | 108,694 | 207,564 | 199,309 |
| Onboard and other | 49,316 | 44,009 | 91,687 | 83,210 |
| Payroll and related | 82,809 | 74,374 | 156,848 | 147,722 |
| Fuel | 75,582 | 71,615 | 148,080 | 137,141 |
| Food | 33,674 | 31,331 | 63,636 | 62,711 |
| Other | 66,713 | 57,718 | 115,953 | 109,675 |
| Total cruise operating expense | 421,079 | 387,741 | 783,768 | 739,768 |
| Other operating expense | ||||
| Marketing, general and administrative | 74,111 | 61,807 | 159,317 | 132,969 |
| Depreciation and amortization | 53,854 | 46,680 | 102,602 | 92,477 |
| Total other operating expense | 127,965 | 108,487 | 261,919 | 225,446 |
| Operating income | 95,389 | 87,006 | 126,377 | 133,450 |
| Non-operating income (expense) | ||||
| Interest expense, net | (103,686) | (48,905) | (231,342) | (95,075) |
| Other income (expense) | 429 | (1,999) | 1,794 | 1,086 |
| Total non-operating income (expense) | (103,257) | (50,904) | (229,548) | (93,989) |
| Net income (loss) before income taxes | (7,868) | 36,102 | (103,171) | 39,461 |
| Income tax expense, net | (1,047) | (71) | (3,244) | (146) |
| Net income (loss) | (8,915) | 36,031 | (106,415) | 39,315 |
| Net loss attributable to non-controlling interest | (74) | -- | (1,179) | -- |
|
Net income (loss) attributable to |
$ (8,841) | $ 36,031 | $ (105,236) | $ 39,315 |
| Weighted-average shares outstanding | ||||
| Basic | 203,997,492 | 178,199,155 | 201,189,562 | 178,178,612 |
| Diluted | 203,997,492 | 178,949,924 | 201,189,562 | 178,961,249 |
| Earnings (loss) per share | ||||
| Basic | $ (0.04) | $ 0.20 | $ (0.52) | $ 0.22 |
| Diluted | $ (0.04) | $ 0.20 | $ (0.52) | $ 0.22 |
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| CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | ||||
| (unaudited, in thousands) | ||||
| Three Months Ended | Six Months Ended | |||
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| 2013 | 2012 | 2013 | 2012 | |
| Net Income (loss) | $ (8,915) | $ 36,031 | $ (106,415) | $ 39,315 |
| Other comprehensive loss, net of tax: | ||||
| Shipboard Retirement Plan | 117 | 98 | 234 | 196 |
| Cash flow hedges: | ||||
| Net unrealized loss related to cash flow hedges (1) | (9,064) | (56,427) | (28,620) | (25,750) |
| Amount realized and reclassified into earnings (2) | (236) | (4,509) | (2,011) | (16,602) |
| Total other comprehensive loss | (9,183) | (60,838) | (30,397) | (42,156) |
| Total comprehensive loss | (18,098) | (24,807) | (136,812) | (2,841) |
| Comprehensive loss attributable to non-controlling interest | (193) | -- | (1,788) | -- |
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Total comprehensive loss attributable to |
$ (17,905) | $ (24,807) | $ (135,024) | $ (2,841) |
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(1) Net of a deferred tax benefit of |
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(2) Net of a deferred tax expense of |
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| CONSOLIDATED BALANCE SHEETS | ||
| (unaudited, in thousands, except share data) | ||
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| 2013 | 2012 | |
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents | $ 82,840 | $ 45,500 |
| Accounts receivable, net | 16,370 | 15,062 |
| Inventories | 45,429 | 39,681 |
| Prepaid expenses and other assets | 56,380 | 64,686 |
| Total current assets | 201,019 | 164,929 |
| Property and equipment, net | 5,601,690 | 4,960,142 |
| Goodwill and tradenames | 611,330 | 611,330 |
| Other long-term assets | 174,594 | 202,026 |
| Total assets | $ 6,588,633 | $ 5,938,427 |
| Liabilities and shareholders' equity | ||
| Current liabilities: | ||
| Current portion of long-term debt | $ 272,644 | $ 221,233 |
| Accounts payable | 97,100 | 79,126 |
| Accrued expenses and other liabilities | 221,673 | 231,040 |
| Due to affiliate | 37,064 | 59,897 |
| Advance ticket sales | 542,602 | 353,793 |
| Total current liabilities | 1,171,083 | 945,089 |
| Long-term debt | 2,918,566 | 2,764,120 |
| Due to affiliate | 73,276 | 147,364 |
| Other long-term liabilities | 41,415 | 63,070 |
| Total liabilities | 4,204,340 | 3,919,643 |
| Commitments and contingencies | ||
| Shareholders' equity: | ||
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Ordinary shares, |
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204,014,702 shares issued and outstanding at |
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40,000,000 shares authorized; 21,000,000 shares issued and outstanding at |
204 | 25 |
| Additional paid-in capital | 2,805,277 | 2,327,097 |
| Accumulated other comprehensive income (loss) | (47,407) | (17,619) |
| Retained earnings (deficit) | (404,421) | (299,185) |
| Total shareholders' equity controlling interest | 2,353,653 | 2,010,318 |
| Non-controlling interest | 30,640 | 8,466 |
| Total shareholders' equity | 2,384,293 | 2,018,784 |
| Total liabilities and shareholders' equity | $ 6,588,633 | $ 5,938,427 |
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| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||
| (unaudited, in thousands) | ||
| Six Months Ended | ||
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| 2013 | 2012 | |
| Cash flows from operating activities | ||
| Net income (loss) |
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$ 39,315 |
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
| Depreciation and amortization expense | 115,946 | 105,742 |
| Gain on derivatives | (270) | (429) |
| Deferred income taxes, net | 2,968 | -- |
| Write-off of deferred financing fees | 36,357 | 2,358 |
| Share-based compensation expense | 19,356 | 330 |
| Premium on debt issuance | -- | 6,000 |
| Changes in operating assets and liabilities: | ||
| Accounts receivable, net | (1,308) | (1,281) |
| Inventories | (5,748) | (1,552) |
| Prepaid expenses and other assets | 961 | 943 |
| Accounts payable | 17,974 | (11,743) |
| Accrued expenses and other liabilities | (14,909) | 10,257 |
| Advance ticket sales | 187,868 | 105,848 |
| Net cash provided by operating activities | 252,780 | 255,788 |
| Cash flows from investing activities | ||
| Additions to property and equipment and other | (759,020) | (174,973) |
| Net cash used in investing activities | (759,020) | (174,973) |
| Cash flows from financing activities | ||
| Repayments of long-term debt | (2,081,520) | (591,152) |
| Repayments to Affiliate | (98,171) | -- |
| Proceeds from long-term debt | 2,289,253 | 520,205 |
| IPO proceeds, net | 473,017 | -- |
| Other, primarily deferred financing fees | (38,999) | (3,093) |
| Net cash provided by (used in) financing activities | 543,580 | (74,040) |
| Net increase in cash and cash equivalents | 37,340 | 6,775 |
| Cash and cash equivalents at beginning of the period | 45,500 | 58,926 |
| Cash and cash equivalents at end of the period | $ 82,840 | $ 65,701 |
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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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| 2013 | 2012 | 2013 | 2012 | |||
| Passengers carried | 405,646 | 373,133 | 773,656 | 758,010 | ||
| Passenger Cruise Days | 2,763,358 | 2,556,575 | 5,291,550 | 5,138,262 | ||
| Capacity Days | 2,569,525 | 2,374,885 | 4,920,824 | 4,773,259 | ||
| Occupancy Percentage | 107.5% | 107.7% | 107.5% | 107.6% | ||
| 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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| 2013 | 2013 | |||||
| Constant | Constant | |||||
| 2013 | Currency | 2012 | 2013 | Currency | 2012 | |
| Passenger ticket revenue |
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$ 816,547 |
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$ 767,549 |
| Onboard and other revenue | 186,814 | 186,814 | 167,015 | 355,517 | 355,517 | 331,115 |
| Total revenue | 644,433 | 645,360 | 583,234 | 1,172,064 | 1,172,823 | 1,098,664 |
| Less: | ||||||
| Commissions, transportation and other expense | 112,985 | 113,219 | 108,694 | 207,564 | 207,751 | 199,309 |
| Onboard and other expense | 49,316 | 49,316 | 44,009 | 91,687 | 91,687 | 83,210 |
| Net Revenue |
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$ 872,813 |
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$ 816,145 |
| Capacity Days | 2,569,525 | 2,569,525 | 2,374,885 | 4,920,824 | 4,920,824 | 4,773,259 |
| Gross Yield | $ 250.80 | $ 251.16 | $ 245.58 | $ 238.18 | $ 238.34 | $ 230.17 |
| Net Yield | $ 187.63 | $ 187.90 | $ 181.28 | $ 177.37 | $ 177.49 | $ 170.98 |
| Gross Cruise Cost, Net Cruise Cost and 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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| 2013 | 2013 | |||||
| Constant | Constant | |||||
| 2013 | Currency | 2012 | 2013 | Currency | 2012 | |
| Total cruise operating expense |
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$ 783,768 |
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$ 739,768 |
| Marketing, general and administrative expense | 74,111 | 74,079 | 61,807 | 159,317 | 159,247 | 132,969 |
| Gross Cruise Cost | 495,190 | 495,526 | 449,548 | 943,085 | 943,432 | 872,737 |
| Less: | ||||||
| Commissions, transportation and other expense | 112,985 | 113,219 | 108,694 | 207,564 | 207,751 | 199,309 |
| Onboard and other expense | 49,316 | 49,316 | 44,009 | 91,687 | 91,687 | 83,210 |
| Net Cruise Cost | 332,889 | 332,991 | 296,845 | 643,834 | 643,994 | 590,218 |
| Less: Fuel expense | 75,582 | 75,582 | 71,615 | 148,080 | 148,080 | 137,141 |
| Net Cruise Cost Excluding Fuel | 257,307 | 257,409 | 225,230 | 495,754 | 495,914 | 453,077 |
| Less: Other (1) | 1,923 | 1,923 | -- | 20,450 | 20,450 | -- |
| Adjusted Net Cruise Cost Excluding Fuel |
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$ 475,304 |
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$ 453,077 |
| Capacity Days | 2,569,525 | 2,569,525 | 2,374,885 | 4,920,824 | 4,920,824 | 4,773,259 |
| Gross Cruise Cost per Capacity Day | $ 192.72 | $ 192.85 | $ 189.29 | $ 191.65 | $ 191.72 | $ 182.84 |
| Net Cruise Cost per Capacity Day | $ 129.55 | $ 129.59 | $ 124.99 | $ 130.84 | $ 130.87 | $ 123.65 |
| Net Cruise Cost Excluding Fuel per Capacity Day | $ 100.14 | $ 100.18 | $ 94.84 | $ 100.75 | $ 100.78 | $ 94.92 |
| Adjusted Net Cruise Cost Excluding Fuel per Capacity Day | $ 99.39 | $ 99.43 | $ 94.84 | $ 96.59 | $ 96.62 | $ 94.92 |
| (1) Consists of non-cash share-based compensation related to the IPO and other supplemental adjustments. | ||||||
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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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| 2013 | 2012 | 2013 | 2012 | |
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Net income (loss) attributable to |
$ (8,841) | $ 36,031 | $ (105,236) | $ 39,315 |
| Net loss attributable to non-controlling interest | (74) | -- | (1,179) | -- |
| Net income (loss) | (8,915) | 36,031 | (106,415) | 39,315 |
| Non-cash share-based compensation related to IPO | -- | -- | 18,527 | -- |
| Non-cash compensation | 509 | -- | 509 | -- |
| Taxes related to changes in corporate structure and debt prepayments, net | (1,446) | -- | (70) | -- |
| Expenses related to debt prepayments (1) | 70,068 | -- | 160,573 | -- |
| Adjusted Net Income | $ 60,216 | $ 36,031 | $ 73,124 | $ 39,315 |
| Diluted weighted-average shares outstanding - Net income (loss) | 203,997,492 (2) | 178,949,924 | 201,189,562 (3) | 178,961,249 |
| Diluted weighted-average shares outstanding - Adjusted Net Income | 210,726,281 | 178,949,924 | 207,514,700 | 178,961,249 |
| Diluted earnings (loss) per share | $ (0.04) | $ 0.20 | $ (0.52) | $ 0.22 |
| Adjusted EPS | $ 0.29 | $ 0.20 | $ 0.35 | $ 0.22 |
| (1) Consists of premiums, write-offs of deferred fees and other expenses related to prepayments of debt. | ||||
| (2) Due to a net loss, excludes 6,728,789 shares, as including these would be antidilutive. | ||||
| (3) Due to a net loss, excludes 6,325,138 shares, as including these would be antidilutive. | ||||
| Adjusted EBITDA was calculated as follows (in thousands): | ||||
| Three Months Ended | Six Months Ended | |||
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| 2013 | 2012 | 2013 | 2012 | |
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Net income (loss) attributable to |
$ (8,841) | $ 36,031 | $ (105,236) | $ 39,315 |
| Interest expense, net | 103,686 | 48,905 | 231,342 | 95,075 |
| Income tax expense | 1,047 | 71 | 3,244 | 146 |
| Depreciation and amortization expense | 53,854 | 46,680 | 102,602 | 92,477 |
| EBITDA | 149,746 | 131,687 | 231,952 | 227,013 |
| Non-controlling interest | (74) | -- | (1,179) | -- |
| Other (income) expense | (429) | 1,999 | (1,794) | (1,086) |
| Non-cash compensation and other | 3,092 | 1,372 | 4,589 | 2,672 |
| Non-cash share-based compensation related to IPO | -- | -- | 18,527 | -- |
| Adjusted EBITDA | $ 152,335 | $ 135,058 | $ 252,095 | $ 228,599 |
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| NON-GAAP RECONCILING INFORMATION | ||
| (unaudited) | ||
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|
|
| 2013 | 2012 | |
| Long-term debt, net of current portion | $ 2,918,566 | $ 2,764,120 |
| Current portion of long-term | 272,644 | 221,233 |
| Total debt | 3,191,210 | 2,985,353 |
| Less: Cash and cash equivalents | 82,840 | 45,500 |
| Net Debt | 3,108,370 | 2,939,853 |
| Total shareholders' equity | 2,384,293 | 2,018,784 |
| Net Debt and shareholders' equity | $ 5,492,663 | $ 4,958,637 |
|
|
56.6% | 59.3% |
| Adjusted Free Cash Flow was calculated as follows (in thousands): | ||
| Six Months Ended | ||
|
|
||
| 2013 | 2012 | |
| Net cash provided by operating activities | $ 252,780 | $ 255,788 |
| Less: Capital expenditures for ship construction | (701,242) | (99,666) |
| Less: Capital expenditures for business enhancements and other | (57,778) | (75,307) |
|
Free |
(506,240) | 80,815 |
| Proceeds from ship construction financing facilities | 625,900 | 81,447 |
| Fees related to debt prepayment | 124,215 | -- |
| Adjusted Free Cash Flow | $ 243,875 | $ 162,262 |
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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