Norwegian Cruise Line Reports Results for Third Quarter 2013
Quarter Highlights
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Adjusted Net Income growth of 42.1% to
$182.2 million with Adjusted EPS of$0.86 -
Adjusted EBITDA increase of 21.2% to
$271.0 million - Net Yield increase of 4.1% (3.9% on a Constant Currency basis)
Third Quarter 2013 Results
"While the environment this year has become more challenging than anticipated, we demonstrated once again our ability to execute and post solid earnings. Our results for the quarter are the product of a summer season which was bolstered by the premium pricing from Norwegian Breakaway in her first full quarter of operation," said
The Company reported Adjusted Net Income for the third quarter of 2013 of
A 14.9% increase in Capacity Days from the addition of Norwegian Breakaway to the fleet, coupled with a 4.1% increase in Net Yield, (or 3.9% on a Constant Currency basis) resulted in a 19.6% improvement in Net Revenue for the period. The improvement in Net Yield was a result of higher pricing and onboard revenue in the period.
Adjusted Net Cruise Cost excluding Fuel per Capacity Day increased 4.6% (or 4.3% on a Constant Currency basis) over prior year. Fuel price, net of hedges, increased 2.4% to
Interest expense, net for the quarter decreased significantly to
2013 Guidance and Sensitivities
In addition to the results for the third quarter 2013, the Company also issued the following guidance, which reflects its expectations for the fourth quarter and full year 2013, along with accompanying sensitivities.
| In thousands except per share data | Fourth Quarter 2013 | Full Year 2013 | ||
| Constant | Constant | |||
| As Reported | Currency | As Reported | Currency | |
| Net Yield | 4.0 to 5.0% | 4.0 to 5.0% | 4.0 to 4.5% | 4.0 to 4.5% |
| Adjusted Net Cruise Cost Excluding Fuel per Capacity Day (1) | 6.0 to 7.0% | 6.0 to 7.0% | 3.5 to 4.5% | 3.5 to 4.5% |
| 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.
| Fourth Quarter 2013 | Full Year 2013 | |
| Fuel consumption in metric tons | 125,000 | 455,000 |
| Fuel price per metric ton |
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| Effect on Adjusted EPS of a 10% change in fuel prices, net of hedges (in thousands) |
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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 September 30, 2013, anticipated capital expenditures together with amounts for export credit financing for ship construction were as follows (in thousands, based on the euro/U.S. dollar exchange rate as of
| Fourth | ||||
| Quarter | Full Year | |||
| 2013 | 2014 | 2015 | 2016 | |
| Ship construction |
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| Ship financing | — | (696,213) | (749,290) | (45,345) |
| Ship construction net of financing |
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| Business Enhancement Capital Expenditures (1) | $ 22,147 | $ 110,000 | $ 90,000 | $ 85,000 |
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(1) For the fourth quarter and full year 2013, Business Enhancement Capital Expenditures include approximately |
Newbuild Update and Other Highlights
The Company is building on the success of its latest ship, Norwegian Breakaway, with the introduction of her sister ship, Norwegian Getaway, in January 2014. To be positioned year-round in
Following Norwegian Getaway will be the introduction of two of the Company's Breakaway Plus vessels in 2015 and 2017. A recent naming contest with over 100,000 entries from across the world resulted in the selection of the names Norwegian Escape and Norwegian Bliss, keeping with the Company's trend of ship names which describe and support its unique proposition of freedom and flexibility. Slightly larger than the two Breakaway-class ships, Norwegian Escape and Bliss will have approximately 4,200 berths, making them the largest in Norwegian's fleet. The ships will include fuel scrubbers, which reduce emissions to comply with regulations for vessels sailing near coastal areas.
The Company's year-round,
Also in the quarter the Company completed a Secondary Offering of 23 million ordinary shares previously held by the Company's Sponsors. The Company received no proceeds from the offering.
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
Sister ship Norwegian Getaway, currently under construction at
The Company's 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.
Business Enhancement Capital Expenditures: Capital expenditures other than those related to new ship construction.
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.
ROI Capital Expenditures: Comprised of project-based capital expenditures which have a quantified return on investment.
Secondary Offering: Public offering in
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
investigations 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 | Nine Months Ended | |||
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| 2013 | 2012 | 2013 | 2012 | |
| Revenue | ||||
| Passenger ticket | $ 583,923 | $ 490,322 | $ 1,400,470 | $ 1,257,871 |
| Onboard and other | 213,962 | 184,089 | 569,479 | 515,204 |
| Total revenue | 797,885 | 674,411 | 1,969,949 | 1,773,075 |
| Cruise operating expense | ||||
| Commissions, transportation and other | 140,086 | 122,331 | 347,650 | 321,640 |
| Onboard and other | 61,744 | 53,641 | 153,431 | 136,851 |
| Payroll and related | 90,695 | 72,961 | 247,543 | 220,683 |
| Fuel | 77,035 | 69,602 | 225,115 | 206,743 |
| Food | 37,596 | 32,452 | 101,232 | 95,163 |
| Other | 48,946 | 43,084 | 164,899 | 152,759 |
| Total cruise operating expense | 456,102 | 394,071 | 1,239,870 | 1,133,839 |
| Other operating expense | ||||
| Marketing, general and administrative | 77,606 | 57,779 | 236,923 | 190,748 |
| Depreciation and amortization | 56,097 | 48,423 | 158,699 | 140,900 |
| Total other operating expense | 133,703 | 106,202 | 395,622 | 331,648 |
| Operating income | 208,080 | 174,138 | 334,457 | 307,588 |
| Non-operating income (expense) | ||||
| Interest expense, net | (26,627) | (47,196) | (257,969) | (142,271) |
| Other income (expense) | (626) | 1,644 | 1,168 | 2,730 |
| Total non-operating income (expense) | (27,253) | (45,552) | (256,801) | (139,541) |
| Net income before income taxes | 180,827 | 128,586 | 77,656 | 168,047 |
| Income tax expense | (7,933) | (398) | (11,177) | (544) |
| Net income | 172,894 | 128,188 | 66,479 | 167,503 |
| Net income attributable to non-controlling interest | 2,036 | -- | 857 | -- |
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Net income attributable to |
$ 170,858 | $ 128,188 | $ 65,622 | $ 167,503 |
| Weighted-average shares outstanding | ||||
| Basic | 204,425,308 | 178,252,763 | 202,279,989 | 178,198,984 |
| Diluted | 210,703,244 | 179,050,050 | 208,673,608 | 178,986,504 |
| Earnings per share | ||||
| Basic | $ 0.84 | $ 0.72 | $ 0.32 | $ 0.94 |
| Diluted | $ 0.82 | $ 0.72 | $ 0.32 | $ 0.94 |
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| CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||
| (unaudited, in thousands) | ||||
| Three Months Ended | Nine Months Ended | |||
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| 2013 | 2012 | 2013 | 2012 | |
| Net Income | $ 172,894 | $ 128,188 | $ 66,479 |
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| Other comprehensive income (loss): | ||||
| Shipboard Retirement Plan | 117 | 98 | 351 | 294 |
| Cash flow hedges: | ||||
| Net unrealized gain (loss) | 16,798 | 40,860 | (12,619) | 15,110 |
| Amount realized and reclassified into earnings | (1,539) | (2,707) | (3,623) | (19,309) |
| Total other comprehensive income (loss) | 15,376 | 38,251 | (15,891) | (3,905) |
| Total comprehensive income | 188,270 | 166,439 | 50,588 | 163,598 |
| Comprehensive income attributable to non-controlling interest | 2,233 | -- | 445 | -- |
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Total comprehensive income attributable to |
$ 186,037 | $ 166,439 | $ 50,143 |
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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 | $ 56,960 | $ 45,500 |
| Accounts receivable, net | 17,717 | 15,062 |
| Inventories | 45,901 | 39,681 |
| Prepaid expenses and other assets | 66,473 | 64,686 |
| Total current assets | 187,051 | 164,929 |
| Property and equipment, net | 5,622,574 | 4,960,142 |
| Goodwill and tradenames | 611,330 | 611,330 |
| Other long-term assets | 184,594 | 202,026 |
| Total assets | $ 6,605,549 | $ 5,938,427 |
| Liabilities and shareholders' equity | ||
| Current liabilities: | ||
| Current portion of long-term debt | $ 282,564 | $ 221,233 |
| Accounts payable | 98,559 | 79,126 |
| Accrued expenses and other liabilities | 225,266 | 231,040 |
| Due to affiliate | 36,815 | 59,897 |
| Advance ticket sales | 434,541 | 353,793 |
| Total current liabilities | 1,077,745 | 945,089 |
| Long-term debt | 2,830,477 | 2,764,120 |
| Due to affiliate | 73,468 | 147,364 |
| Other long-term liabilities | 48,971 | 63,070 |
| Total liabilities | 4,030,661 | 3,919,643 |
| Commitments and contingencies | ||
| Shareholders' equity: | ||
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Ordinary shares, |
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205,083,076 shares issued and outstanding at |
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| 40,000,000 shares authorized; 21,000,000 shares issued and outstanding at | ||
| December 31, 2012 | 205 | 25 |
| Additional paid-in capital | 2,819,153 | 2,327,097 |
| Accumulated other comprehensive income (loss) | (33,098) | (17,619) |
| Retained earnings (deficit) | (233,563) | (299,185) |
| Total shareholders' equity controlling interest | 2,552,697 | 2,010,318 |
| Non-controlling interest | 22,191 | 8,466 |
| Total shareholders' equity | 2,574,888 | 2,018,784 |
| Total liabilities and shareholders' equity | $ 6,605,549 | $ 5,938,427 |
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| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||
| (unaudited, in thousands) | ||
| Nine Months Ended | ||
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| 2013 | 2012 | |
| Cash flows from operating activities | ||
| Net income | $ 66,479 | $ 167,503 |
| Adjustments to reconcile net income to net cash provided by operating activities: | ||
| Depreciation and amortization expense | 180,143 | 160,781 |
| Gain on derivatives | (195) | (2,067) |
| Deferred income taxes, net | 11,026 | -- |
| Write-off of deferred financing fees | 36,357 | 2,358 |
| Share-based compensation expense | 21,283 | 495 |
| Premium on debt issuance | -- | 6,000 |
| Changes in operating assets and liabilities: | ||
| Accounts receivable, net | (2,655) | (4,649) |
| Inventories | (6,220) | (6,941) |
| Prepaid expenses and other assets | (1,558) | 375 |
| Accounts payable | 19,433 | (13,393) |
| Accrued expenses and other liabilities | (5,480) | 27,312 |
| Advance ticket sales | 79,730 | 38,749 |
| Net cash provided by operating activities | 398,343 | 376,523 |
| Cash flows from investing activities | ||
| Additions to property and equipment and other | (835,765) | (229,855) |
| Net cash used in investing activities | (835,765) | (229,855) |
| Cash flows from financing activities | ||
| Repayments of long-term debt | (2,229,821) | (718,255) |
| Repayments to Affiliate | (98,171) | -- |
| Proceeds from long-term debt | 2,359,310 | 584,990 |
| Proceeds from the issuance of ordinary shares, net | 473,017 | -- |
| Proceeds from the exercise of stock options | 1,268 | -- |
| Deferred financing fees and other | (56,721) | (3,635) |
| Net cash provided by (used in) financing activities | 448,882 | (136,900) |
| Net increase in cash and cash equivalents | 11,460 | 9,768 |
| Cash and cash equivalents at beginning of the period | 45,500 | 58,926 |
| Cash and cash equivalents at end of the period | $ 56,960 | $ 68,694 |
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| NON-GAAP RECONCILING INFORMATION | ||||||
| (unaudited) | ||||||
| The following table sets forth selected statistical information: | ||||||
| Three Months Ended | Nine Months Ended | |||||
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| 2013 | 2012 | 2013 | 2012 | |||
| Passengers carried | 449,615 | 402,231 | 1,223,271 | 1,160,241 | ||
| Passenger Cruise Days | 3,170,169 | 2,727,697 | 8,461,719 | 7,865,959 | ||
| Capacity Days | 2,779,658 | 2,418,832 | 7,700,482 | 7,192,091 | ||
| Occupancy Percentage | 114.0% | 112.8% | 109.9% | 109.4% | ||
| Gross Yield and Net Yield were calculated as follows (in thousands, except Capacity Days and Yield data): | ||||||
| Three Months Ended | Nine Months Ended | |||||
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| 2013 | 2013 | |||||
| Constant | Constant | |||||
| 2013 | Currency | 2012 | 2013 | Currency | 2012 | |
| Passenger ticket revenue |
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| Onboard and other revenue | 213,962 | 213,962 | 184,089 | 569,479 | 569,479 | 515,204 |
| Total revenue | 797,885 | 796,278 | 674,411 | 1,969,949 | 1,969,101 | 1,773,075 |
| Less: | ||||||
| Commissions, transportation and other expense | 140,086 | 139,575 | 122,331 | 347,650 | 347,326 | 321,640 |
| Onboard and other expense | 61,744 | 61,744 | 53,641 | 153,431 | 153,431 | 136,851 |
| Net Revenue |
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| Capacity Days | 2,779,658 | 2,779,658 | 2,418,832 | 7,700,482 | 7,700,482 | 7,192,091 |
| Gross Yield | $ 287.04 | $ 286.47 | $ 278.82 | $ 255.82 | $ 255.71 | $ 246.53 |
| Net Yield | $ 214.43 | $ 214.04 | $ 206.07 | $ 190.75 | $ 190.68 | $ 182.78 |
| 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 | Nine Months Ended | |||||
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| 2013 | 2013 | |||||
| Constant | Constant | |||||
| 2013 | Currency | 2012 | 2013 | Currency | 2012 | |
| Total cruise operating expense |
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| Marketing, general and administrative expense | 77,606 | 77,477 | 57,779 | 236,923 | 236,724 | 190,748 |
| Gross Cruise Cost | 533,708 | 532,463 | 451,850 | 1,476,793 | 1,475,895 | 1,324,587 |
| Less: | ||||||
| Commissions, transportation and other expense | 140,086 | 139,575 | 122,331 | 347,650 | 347,326 | 321,640 |
| Onboard and other expense | 61,744 | 61,744 | 53,641 | 153,431 | 153,431 | 136,851 |
| Net Cruise Cost | 331,878 | 331,144 | 275,878 | 975,712 | 975,138 | 866,096 |
| Less: Fuel expense | 77,035 | 77,035 | 69,602 | 225,115 | 225,115 | 206,743 |
| Net Cruise Cost Excluding Fuel | 254,843 | 254,109 | 206,276 | 750,597 | 750,023 | 659,353 |
| Less: Other (1) | 6,857 | 6,857 | -- | 27,307 | 27,307 | -- |
| Adjusted Net Cruise Cost Excluding Fuel |
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$ 723,290 | $ 722,716 | $ 659,353 |
| Capacity Days | 2,779,658 | 2,779,658 | 2,418,832 | 7,700,482 | 7,700,482 | 7,192,091 |
| Gross Cruise Cost per Capacity Day | $ 192.00 | $ 191.56 | $ 186.81 | $ 191.78 | $ 191.66 | $ 184.17 |
| Net Cruise Cost per Capacity Day | $ 119.40 | $ 119.13 | $ 114.05 | $ 126.71 | $ 126.63 | $ 120.42 |
| Net Cruise Cost Excluding Fuel per Capacity Day | $ 91.68 | $ 91.42 | $ 85.28 | $ 97.47 | $ 97.40 | $ 91.68 |
| Adjusted Net Cruise Cost Excluding Fuel per Capacity Day | $ 89.21 | $ 88.95 | $ 85.28 | $ 93.93 | $ 93.85 | $ 91.68 |
| (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 | Nine Months Ended | |||
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| 2013 | 2012 | 2013 | 2012 | |
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Net income attributable to |
$ 170,858 | $ 128,188 | $ 65,622 | $ 167,503 |
| Net income attributable to non-controlling interest | 2,036 | -- | 857 | -- |
| Net income | 172,894 | 128,188 | 66,479 | 167,503 |
| Non-cash compensation | 4,057 | -- | 4,566 | -- |
| Non-cash share-based compensation related to IPO | -- | -- | 18,527 | -- |
| Expenses related to debt prepayments (1) | -- | -- | 160,573 | -- |
| Other (2) | 5,241 | -- | 5,171 | -- |
| Adjusted Net Income | $ 182,192 | $ 128,188 | $ 255,316 | $ 167,503 |
| Diluted weighted-average shares outstanding | 210,703,244 | 179,050,050 | 208,673,608 | 178,986,504 |
| Diluted earnings per share (3) | $ 0.82 | $ 0.72 | $ 0.32 | $ 0.94 |
| Adjusted EPS | $ 0.86 | $ 0.72 | $ 1.22 | $ 0.94 |
| (1) Consists of premiums, write-offs of deferred fees and other expenses related to prepayments of debt. | ||||
| (2) Expenses incurred from changes in corporate entity structure and our Secondary Offering in the third quarter of 2013. | ||||
| (3) Diluted earnings per share is computed by dividing net income by diluted weighted-average shares outstanding. | ||||
| Adjusted EBITDA was calculated as follows (in thousands): | ||||
| Three Months Ended | Nine Months Ended | |||
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| 2013 | 2012 | 2013 | 2012 | |
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Net income attributable to |
$ 170,858 | $ 128,188 | $ 65,622 | $ 167,503 |
| Interest expense, net | 26,627 | 47,196 | 257,969 | 142,271 |
| Income tax expense | 7,933 | 398 | 11,177 | 544 |
| Depreciation and amortization expense | 56,097 | 48,423 | 158,699 | 140,900 |
| EBITDA | 261,515 | 224,205 | 493,467 | 451,218 |
| Net income attributable to non-controlling interest | 2,036 | -- | 857 | -- |
| Other (income) expense | 626 | (1,644) | (1,168) | (2,730) |
| Non-cash compensation and other (1) | 6,857 | 1,014 | 11,446 | 3,686 |
| Non-cash share-based compensation related to IPO | -- | -- | 18,527 | -- |
| Adjusted EBITDA | $ 271,034 | $ 223,575 | $ 523,129 | $ 452,174 |
| (1) Consists of non-cash compensation, expenses incurred from changes in corporate entity structure and our Secondary Offering in the third quarter of 2013 and other supplemental adjustments. |
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| NON-GAAP RECONCILING INFORMATION | ||
| (unaudited) | ||
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| 2013 | 2012 | |
| Long-term debt, net of current portion | $ 2,830,477 | $ 2,764,120 |
| Current portion of long-term | 282,564 | 221,233 |
| Total debt | 3,113,041 | 2,985,353 |
| Less: Cash and cash equivalents | 56,960 | 45,500 |
| Net Debt | 3,056,081 | 2,939,853 |
| Total shareholders' equity | 2,574,888 | 2,018,784 |
| Net Debt and shareholders' equity | $ 5,630,969 | $ 4,958,637 |
|
|
54.3% | 59.3% |
| Adjusted Free Cash Flow was calculated as follows (in thousands): | ||
| Nine Months Ended | ||
|
|
||
| 2013 | 2012 | |
| Net cash provided by operating activities | $ 398,343 | $ 376,523 |
| Less: Capital expenditures for ship construction | (743,296) | (147,375) |
| Less: Capital expenditures for business enhancements and other | (92,469) | (82,480) |
| Free Cash Flow | (437,422) | 146,668 |
| Proceeds from ship construction financing facilities | 640,586 | 119,231 |
| Fees related to debt prepayment | 124,215 | -- |
| Adjusted Free Cash Flow | $ 327,379 | $ 265,899 |
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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