Norwegian Cruise Line Holdings Reports Second Quarter 2020 Financial Results
Further Strengthened Liquidity Position with Highly Successful
Company Well-Positioned to Withstand Prolonged Voyage Suspensions
Formed Healthy Sail Panel Comprised of Diverse Public Health Experts
“In recent weeks, we have taken further action to bolster our liquidity position in response to the COVID-19 global pandemic, including our highly successful
Booking Environment and Outlook
Along with the broader travel and leisure industry, the Company has experienced swift and significant impacts related to the COVID-19 global pandemic which have resulted in voyage suspensions through
All three brands have instituted programs for guests on cancelled sailings as a result of the Company’s voyage suspension which include offering value-add future cruise credits typically for 125% of the cruise fare paid in lieu of providing cash refunds. These future cruise credits are valid for any sailing through
To provide additional flexibility to its guests, the Company has also introduced a new final payment schedule for all 2020 voyages which requires final payment 60 days prior to embarkation versus the standard 120 days.
Health and Safety is the Number One Priority
In July, the Company announced a collaboration with
The panel is co-chaired by Governor
The Company has also successfully completed the safe repatriation of the vast majority of its shipboard team members to their homes around the globe. To date, the Company has worked tirelessly to repatriate over 21,000 shipboard team members, to over 75 countries, through a combination of chartered and commercial air flights as well as the use of certain of the Company’s ships. The Company expects the repatriation efforts to be largely completed within 45 days.
COVID-19 Action Plan
The Company continues to take swift, proactive measures to further mitigate the financial and operational impacts of COVID-19. This action plan includes previously outlined cost reduction and cash conservation levers which include reducing operating and capital expenditures, improving the debt maturity profile and securing additional capital.
The Company's targeted monthly cash burn is on average, approximately
Balance Sheet and Liquidity Position
As of
In
Following the recent capital markets transactions, the repayment of the
“We continue to adapt to this unprecedented and fluid environment and take swift and proactive measures to reduce costs, conserve cash and enhance our liquidity profile,” said
_______________
1 Adjusting for customer deposit refunds that are included in accounts payable as of
Second Quarter 2020 Results
GAAP net income (loss) was
Revenue decreased to
Total cruise operating expense decreased 68.5% in 2020 compared to 2019. In 2020, our cruise operating expenses were primarily related to the continued payment of protected commissions as additional sailings were cancelled, crew costs, including salaries, food and repatriation costs, and fuel.
Fuel price per metric ton, net of hedges increased to
Interest expense, net was
Other income (expense), net was expense of
2020 Outlook
As a consequence of COVID-19, while the Company cannot estimate the impact on its business, financial condition or near- or longer-term financial or operational results with certainty, it expects to report a net loss on both a
The COVID-19 pandemic has had a significant impact on the Company’s financial position and results of operation. If the temporary suspension of sailings is further extended, the Company’s liquidity and financial position would likely continue to be impacted.
As of
Remainder of 2020 | 2021 | 2022 | 2023 | |||||||||||
% of HFO Consumption Hedged | 67 | % | 53 | % | 19 | % | 0 | % | ||||||
Average USGC Price / Barrel | $ | 41.23 | $ | 46.09 | $ | 48.36 | N/A | |||||||
% of MGO Consumption Hedged | 88 | % | 51 | % | 46 | % | 20 | % | ||||||
Average Gasoil Price / Barrel | $ | 84.57 | (1) | $ | 80.61 | $ | 70.00 | $ | 67.45 | |||||
(1) Represents a blended rate that includes a
Anticipated total capital expenditures for the remainder of 2020 are approximately $160 million, net of financing, once deferrals of newbuild related payments are finalized2. The Company is not providing capital expenditure guidance for future years at this time given the uncertain and evolving current environment. The impacts of COVID-19 on the shipyards where the Company’s ships are under construction, or will be constructed, have resulted in some delays in ship deliveries, and the impact of COVID-19 could result in additional delays in ship deliveries in the future, which may be prolonged.
Conference Call
The Company has scheduled a conference call for
_______________
2 The Company is finalizing documentation for deferrals of approximately
About
Terminology
Acquisition of Prestige. In
Adjusted EBITDA. EBITDA adjusted for other income (expense), net and other supplemental adjustments.
Adjusted EPS. Adjusted Net Income (Loss) divided by the number of diluted weighted-average shares outstanding.
Adjusted Net Cruise Cost Excluding Fuel.
Adjusted Net Income (Loss). Net income (loss) adjusted for supplemental adjustments.
Berths. Double occupancy capacity per cabin (single occupancy per studio cabin) even though many cabins can accommodate three or more passengers.
Capacity Days. Available Berths multiplied by the number of cruise days for the period.
Constant Currency. A calculation whereby foreign currency-denominated revenues and expenses in a period are converted at the
Dry-dock. A process whereby a ship is positioned in a large basin where all of the fresh/sea water is pumped out in order to carry out cleaning and repairs of those parts of a ship which are below the water line.
EBITDA. Earnings before interest, taxes, and depreciation and amortization.
EPS. Diluted earnings (loss) per share.
GAAP. Generally accepted accounting principles in the
Gross Cruise Cost. The sum of total cruise operating expense and marketing, general and administrative expense.
Gross Yield. Total revenue per Capacity Day.
Net Cruise Cost Excluding Fuel.
Net Revenue. Total revenue less commissions, transportation and other expense and onboard and other expense.
Net Yield. Net Revenue per Capacity Day.
Occupancy Percentage or Load Factor. The ratio of Passenger Cruise Days to Capacity Days. A percentage in excess of 100% indicates that three or more passengers occupied some cabins.
Passenger Cruise Days. The number of passengers carried for the period, multiplied by the number of days in their respective cruises.
Non-GAAP Financial Measures
We use certain non-GAAP financial measures, such as Net Revenue, Net Yield,
As our business includes the sourcing of passengers and deployment of vessels outside of the
We believe that Adjusted EBITDA is appropriate as a supplemental financial measure as it is used by management to assess operating performance. We also believe that Adjusted EBITDA is a useful measure in determining our performance as it reflects certain operating drivers of our business, such as sales growth, operating costs, marketing, general and administrative expense and other operating income and expense. Adjusted EBITDA is not a defined term under GAAP nor is it intended to be a measure of liquidity or cash flows from operations or a measure comparable to net income, as it does not take into account certain requirements such as capital expenditures and related depreciation, principal and interest payments and tax payments and it includes other supplemental adjustments.
Adjusted Net Income and Adjusted EPS are non-GAAP financial measures that exclude certain amounts and are used to supplement GAAP net income and EPS. We use Adjusted Net Income and Adjusted EPS as key performance measures of our earnings performance. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting and analyzing future periods. These non-GAAP financial measures also facilitate management’s internal comparison to our historical performance. In addition, management uses Adjusted EPS as a performance measure for our incentive compensation. The amounts excluded in the presentation of these non-GAAP financial measures may vary from period to period; accordingly, our presentation of Adjusted Net Income and Adjusted EPS and Adjusted EBITDA, may not be indicative of future adjustments or results. For example, for the six months ended
You are encouraged to evaluate each adjustment used in calculating our non-GAAP financial measures and the reasons we consider our non-GAAP financial measures appropriate for supplemental analysis. In evaluating our non-GAAP financial measures, you should be aware that in the future we may incur expenses similar to the adjustments in our presentation. Our non-GAAP financial measures have limitations as analytical tools, and you should not consider these measures in isolation or as a substitute for analysis of our results as reported under GAAP. Our presentation of our non-GAAP financial measures should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. Our non-GAAP financial measures may not be comparable to other companies. Please see a historical reconciliation of these measures to the most comparable GAAP measure presented in our consolidated financial statements below.
Cautionary Statement Concerning Forward-Looking Statements
Some of the statements, estimates or projections contained in this release are “forward-looking statements” within the meaning of the
Investor Relations & Media Contact
(305) 468-2339
InvestorRelations@nclcorp.com
(786) 913-2902
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
(Unaudited) | |||||||||||||||
(in thousands, except share and per share data) | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Revenue | |||||||||||||||
Passenger ticket | $ | 13,835 | $ | 1,179,404 | 854,626 | $ | 2,152,677 | ||||||||
Onboard and other | 3,094 | 484,873 | 409,185 | 915,230 | |||||||||||
Total revenue | 16,929 | 1,664,277 | 1,263,811 | 3,067,907 | |||||||||||
Cruise operating expense | |||||||||||||||
Commissions, transportation and other | 34,601 | 297,691 | 366,969 | 526,955 | |||||||||||
Onboard and other | 3,188 | 107,063 | 78,161 | 186,476 | |||||||||||
Payroll and related | 128,744 | 229,385 | 375,891 | 452,492 | |||||||||||
Fuel | 48,992 | 100,531 | 174,016 | 198,784 | |||||||||||
Food | 6,997 | 54,347 | 56,213 | 109,392 | |||||||||||
Other | 79,130 | 169,407 | 244,662 | 310,976 | |||||||||||
Total cruise operating expense | 301,652 | 958,424 | 1,295,912 | 1,785,075 | |||||||||||
Other operating expense | |||||||||||||||
Marketing, general and administrative | 131,436 | 240,901 | 402,125 | 489,843 | |||||||||||
Depreciation and amortization | 179,252 | 156,271 | 377,449 | 326,012 | |||||||||||
Impairment loss | - | - | 1,607,797 | - | |||||||||||
Total other operating expense | 310,688 | 397,172 | 2,387,371 | 815,855 | |||||||||||
Operating income (loss) | (595,411 | ) | 308,681 | (2,419,472 | ) | 466,977 | |||||||||
Non-operating income (expense) | |||||||||||||||
Interest expense, net | (114,537 | ) | (65,969 | ) | (183,444 | ) | (139,472 | ) | |||||||
Other income (expense), net | (14,418 | ) | 3,616 | (8,595 | ) | 3,182 | |||||||||
Total non-operating income (expense) | (128,955 | ) | (62,353 | ) | (192,039 | ) | (136,290 | ) | |||||||
Net income (loss) before income taxes | (724,366 | ) | 246,328 | (2,611,511 | ) | 330,687 | |||||||||
Income tax benefit (expense) | 9,123 | (6,138 | ) | 15,296 | 27,660 | ||||||||||
Net income (loss) | $ | (715,243 | ) | $ | 240,190 | (2,596,215 | ) | $ | 358,347 | ||||||
Weighted-average shares outstanding | |||||||||||||||
Basic | 239,342,745 | 215,426,441 | 226,486,772 | 216,328,943 | |||||||||||
Diluted | 239,342,745 | 216,810,766 | 226,486,772 | 217,837,005 | |||||||||||
Earnings (loss) per share | |||||||||||||||
Basic | $ | (2.99 | ) | $ | 1.11 | $ | (11.46 | ) | $ | 1.66 | |||||
Diluted | $ | (2.99 | ) | $ | 1.11 | $ | (11.46 | ) | $ | 1.65 | |||||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | |||||||||||||||
(Unaudited) | |||||||||||||||
(in thousands) | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Net income (loss) | $ | (715,243 | ) | $ | 240,190 | $ | (2,596,215 | ) | $ | 358,347 | |||||
Other comprehensive income (loss): | |||||||||||||||
Shipboard Retirement Plan | 102 | 94 | 204 | 189 | |||||||||||
Cash flow hedges: | |||||||||||||||
Net unrealized gain (loss) | 54,478 | (17,189 | ) | (251,382 | ) | (2,037 | ) | ||||||||
Amount realized and reclassified into earnings | 28,782 | (9,274 | ) | 50,781 | (16,274 | ) | |||||||||
Total other comprehensive income (loss) | 83,362 | (26,369 | ) | (200,397 | ) | (18,122 | ) | ||||||||
Total comprehensive income (loss) | $ | (631,881 | ) | $ | 213,821 | $ | (2,796,612 | ) | $ | 340,225 | |||||
CONSOLIDATED BALANCE SHEETS | |||||||
(Unaudited) | |||||||
(in thousands, except share data) | |||||||
2020 | 2019 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 2,259,949 | $ | 252,876 | |||
Accounts receivable, net | 74,213 | 75,109 | |||||
Inventories | 82,263 | 95,427 | |||||
Prepaid expenses and other assets | 334,243 | 306,733 | |||||
Total current assets | 2,750,668 | 730,145 | |||||
Property and equipment, net | 13,488,514 | 13,135,337 | |||||
98,134 | 1,388,931 | ||||||
Tradenames | 500,525 | 817,525 | |||||
Other long-term assets | 690,218 | 612,661 | |||||
Total assets | $ | 17,528,059 | $ | 16,684,599 | |||
Liabilities and shareholders' equity | |||||||
Current liabilities: | |||||||
Current portion of long-term debt | $ | 337,338 | $ | 746,358 | |||
Accounts payable | 484,927 | 100,777 | |||||
Accrued expenses and other liabilities | 648,216 | 782,275 | |||||
Advance ticket sales | 1,113,374 | 1,954,980 | |||||
Total current liabilities | 2,583,855 | 3,584,390 | |||||
Long-term debt | 10,011,872 | 6,055,335 | |||||
Other long-term liabilities | 595,307 | 529,295 | |||||
Total liabilities | 13,191,034 | 10,169,020 | |||||
Commitments and contingencies | |||||||
Shareholders' equity: | |||||||
Ordinary shares, |
281 | 237 | |||||
Additional paid-in capital | 4,851,781 | 4,235,690 | |||||
Accumulated other comprehensive income (loss) | (495,887 | ) | (295,490 | ) | |||
Retained earnings | 1,234,776 | 3,829,068 | |||||
(1,253,926 | ) | (1,253,926 | ) | ||||
Total shareholders' equity | 4,337,025 | 6,515,579 | |||||
Total liabilities and shareholders' equity | $ | 17,528,059 | $ | 16,684,599 | |||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(Unaudited) | |||||||
(in thousands) | |||||||
Six Months Ended | |||||||
2020 | 2019 | ||||||
Cash flows from operating activities | |||||||
Net income (loss) | $ | (2,596,215 | ) | $ | 358,347 | ||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||
Depreciation and amortization expense | 379,375 | 326,471 | |||||
Impairment loss | 1,607,797 | - | |||||
Deferred income taxes, net | (14,458 | ) | (29,793 | ) | |||
Loss on derivatives | 8,294 | - | |||||
Loss on extinguishment of debt | 5,014 | 3,988 | |||||
Provision for bad debts and inventory obsolescence | 10,359 | 1,057 | |||||
Gain on involuntary conversion of assets | (1,403 | ) | (2,810 | ) | |||
Share-based compensation expense | 55,147 | 56,650 | |||||
Net foreign currency adjustments | 160 | (716 | ) | ||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable, net | (2,108 | ) | (15,121 | ) | |||
Inventories | 11,996 | (1,342 | ) | ||||
Prepaid expenses and other assets | (115,066 | ) | (57,929 | ) | |||
Accounts payable | 369,519 | (81,690 | ) | ||||
Accrued expenses and other liabilities | (202,547 | ) | (74,470 | ) | |||
Advance ticket sales | (844,244 | ) | 558,579 | ||||
Net cash provided by (used in) operating activities | (1,328,380 | ) | 1,041,221 | ||||
Cash flows from investing activities | |||||||
Additions to property and equipment, net | (725,477 | ) | (413,888 | ) | |||
Cash received on settlement of derivatives | - | 289 | |||||
Cash paid on settlement of derivatives | (28,606 | ) | - | ||||
Other | 2,519 | 4,047 | |||||
Net cash used in investing activities | (751,564 | ) | (409,552 | ) | |||
Cash flows from financing activities | |||||||
Repayments of long-term debt | (207,863 | ) | (2,808,615 | ) | |||
Proceeds from long-term debt | 3,962,655 | 2,652,000 | |||||
Common share issuance proceeds, net | 441,935 | - | |||||
Proceeds from employee related plans | 4,100 | 11,368 | |||||
Net share settlement of restricted share units | (15,318 | ) | (20,830 | ) | |||
Purchase of treasury shares | - | (200,071 | ) | ||||
Early redemption premium | - | (117 | ) | ||||
Deferred financing fees and other | (94,559 | ) | (9,330 | ) | |||
Net cash provided by (used in) financing activities | 4,090,950 | (375,595 | ) | ||||
Effect of exchange rates on cash and cash equivalents | (3,933 | ) | - | ||||
Net increase in cash and cash equivalents | 2,007,073 | 256,074 | |||||
Cash and cash equivalents at beginning of the period | 252,876 | 163,851 | |||||
Cash and cash equivalents at end of the period | $ | 2,259,949 | $ | 419,925 | |||
NON-GAAP RECONCILING INFORMATION | ||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||
The following table sets forth selected statistical information: | ||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Passengers carried | — | 682,935 | 499,729 | 1,327,987 | ||||||||||||||||||
Passenger Cruise Days | — | 5,014,083 | 4,278,602 | 9,989,523 | ||||||||||||||||||
Capacity Days | — | 4,626,871 | 4,123,858 | 9,343,800 | ||||||||||||||||||
Occupancy Percentage | 108.4 | % | 103.8 | % | 106.9 | % | ||||||||||||||||
Net Revenue, Gross Yield and Net Yield were calculated as follows (in thousands, except Capacity Days and Yield data): | ||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||
2020 | 2020 | |||||||||||||||||||||
Constant | Constant | |||||||||||||||||||||
2020 | Currency | 2019 | 2020 | Currency | 2019 | |||||||||||||||||
Passenger ticket revenue | $ | 13,835 | $ | 13,847 | $ | 1,179,404 | $ | 854,626 | $ | 854,638 | $ | 2,152,677 | ||||||||||
Onboard and other revenue | 3,094 | 3,094 | 484,873 | 409,185 | 409,185 | 915,230 | ||||||||||||||||
Total revenue | 16,929 | 16,941 | 1,664,277 | 1,263,811 | 1,263,823 | 3,067,907 | ||||||||||||||||
Less: | ||||||||||||||||||||||
Commissions, transportation and other expense | 34,601 | 34,699 | 297,691 | 366,969 | 367,066 | 526,955 | ||||||||||||||||
Onboard and other expense | 3,188 | 3,188 | 107,063 | 78,161 | 78,161 | 186,476 | ||||||||||||||||
Net Revenue | (20,860 | ) | (20,946 | ) | 1,259,523 | 818,681 | 818,596 | 2,354,476 | ||||||||||||||
Capacity Days | — | — | 4,626,871 | 4,123,858 | 4,123,858 | 9,343,800 | ||||||||||||||||
Gross Yield | $ | 359.70 | $ | 328.34 | ||||||||||||||||||
Net Yield | $ | 272.22 | $ | 251.98 | ||||||||||||||||||
NON-GAAP RECONCILING INFORMATION | ||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||
Gross Cruise Cost, |
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Three Months Ended | Six Months Ended | |||||||||||||||||||||
2020 | 2020 | |||||||||||||||||||||
Constant | Constant | |||||||||||||||||||||
2020 | Currency | 2019 | 2020 | Currency | 2019 | |||||||||||||||||
Total cruise operating expense | $ | 301,652 | $ | 302,552 | $ | 958,424 | $ | 1,295,912 | $ | 1,296,812 | $ | 1,785,075 | ||||||||||
Marketing, general and administrative expense | 131,436 | 131,600 | 240,901 | 402,125 | 402,289 | 489,843 | ||||||||||||||||
Gross Cruise Cost | 433,088 | 434,152 | 1,199,325 | 1,698,037 | 1,699,101 | 2,274,918 | ||||||||||||||||
Less: | ||||||||||||||||||||||
Commissions, transportation and other expense | 34,601 | 34,699 | 297,691 | 366,969 | 367,066 | 526,955 | ||||||||||||||||
Onboard and other expense | 3,188 | 3,188 | 107,063 | 78,161 | 78,161 | 186,476 | ||||||||||||||||
395,299 | 396,265 | 794,571 | 1,252,907 | 1,253,874 | 1,561,487 | |||||||||||||||||
Less: Fuel expense | 48,992 | 48,992 | 100,531 | 174,016 | 174,016 | 198,784 | ||||||||||||||||
Net Cruise Cost Excluding Fuel | 346,307 | 347,273 | 694,040 | 1,078,891 | 1,079,858 | 1,362,703 | ||||||||||||||||
Less Non-GAAP Adjustments: | ||||||||||||||||||||||
Non-cash deferred compensation (1) | 666 | 666 | 534 | 1,332 | 1,332 | 1,068 | ||||||||||||||||
Non-cash share-based compensation (2) | 22,389 | 22,389 | 29,651 | 55,147 | 55,147 | 56,650 | ||||||||||||||||
Redeployment of Norwegian Joy (3) | - | - | 2,035 | - | - | 7,051 | ||||||||||||||||
Adjusted Net Cruise Cost Excluding Fuel | $ | 323,252 | $ | 324,218 | $ | 661,820 | $ | 1,022,412 | $ | 1,023,379 | $ | 1,297,934 | ||||||||||
Capacity Days | — | — | 4,626,871 | 4,123,858 | 4,123,858 | 9,343,800 | ||||||||||||||||
Gross Cruise Cost per Capacity Day | $ | 259.21 | $ | 243.47 | ||||||||||||||||||
$ | 171.73 | $ | 167.11 | |||||||||||||||||||
Net Cruise Cost Excluding Fuel per Capacity Day | $ | 150.00 | $ | 145.84 | ||||||||||||||||||
Adjusted Net Cruise Cost Excluding Fuel per Capacity Day | $ | 143.04 | $ | 138.91 | ||||||||||||||||||
(1) Non-cash deferred compensation expenses related to the crew pension plan and other crew expenses, which are included in payroll and related expense. | ||||||||||||||||||||||
(2) Non-cash share-based compensation expense related to equity awards, which are included in marketing, general and administrative expense and payroll and related expense. | ||||||||||||||||||||||
(3) Expenses related to the redeployment of Norwegian Joy from |
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NON-GAAP RECONCILING INFORMATION | |||||||||||||||
(Unaudited) | |||||||||||||||
Adjusted Net Income (Loss) and Adjusted EPS were calculated as follows (in thousands, except share and per share data): | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Net income (loss) | $ | (715,243 | ) | $ | 240,190 | $ | (2,596,215 | ) | $ | 358,347 | |||||
Non-GAAP Adjustments: | |||||||||||||||
Non-cash deferred compensation (1) | 992 | 879 | 1,983 | 1,758 | |||||||||||
Non-cash share-based compensation (2) | 22,389 | 29,651 | 55,147 | 56,650 | |||||||||||
Extinguishment and modification of debt (3) | 21,159 | 1,175 | 21,159 | 7,268 | |||||||||||
Amortization of intangible assets (4) | 2,773 | 4,603 | 5,547 | 9,206 | |||||||||||
Redeployment of Norwegian Joy (5) | - | 5,601 | - | 30,629 | |||||||||||
Impairment loss (6) | 175 | - | 1,633,337 | - | |||||||||||
Non-cash interest on beneficial conversion feature (7) | 1,344 | - | 1,344 | - | |||||||||||
Adjusted Net Income (Loss) | $ | (666,411 | ) | $ | 282,099 | $ | (877,698 | ) | $ | 463,858 | |||||
Diluted weighted-average shares outstanding - Net income (loss) and Adjusted Net Income (Loss) | 239,342,745 | 216,810,766 | 226,486,772 | 217,837,005 | |||||||||||
Diluted earnings (loss) per share | $ | (2.99 | ) | $ | 1.11 | $ | (11.46 | ) | $ | 1.65 | |||||
Adjusted EPS | $ | (2.78 | ) | $ | 1.30 | $ | (3.88 | ) | $ | 2.13 | |||||
(1) Non-cash deferred compensation expenses related to the crew pension plan and other crew expenses are included in payroll and related expense and other income (expense), net.
(2) Non-cash share-based compensation expenses related to equity awards are included in marketing, general and administrative expense and payroll and related expense.
(3) Losses on extinguishments and modifications of debt are included in interest expense, net.
(4) Amortization of intangible assets related to the Acquisition of Prestige are included in depreciation and amortization expense.
(5) Expenses related to the redeployment of Norwegian Joy from
(6) Impairment loss consists of goodwill, tradename and property and equipment impairments. The impairments of goodwill and tradenames are included in impairment loss and the impairment of property and equipment is included in depreciation and amortization expense.
(7) Non-cash interest expense related to a beneficial conversion feature recognized on our exchangeable notes, which is recognized in interest expense, net.
NON-GAAP RECONCILING INFORMATION | |||||||||||||||
(Unaudited) | |||||||||||||||
EBITDA and Adjusted EBITDA were calculated as follows (in thousands): | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Net income (loss) | $ | (715,243 | ) | $ | 240,190 | $ | (2,596,215 | ) | $ | 358,347 | |||||
Interest expense, net | 114,537 | 65,969 | 183,444 | 139,472 | |||||||||||
Income tax (benefit) expense | (9,123 | ) | 6,138 | (15,296 | ) | (27,660 | ) | ||||||||
Depreciation and amortization expense | 179,252 | 156,271 | 377,449 | 326,012 | |||||||||||
EBITDA | (430,577 | ) | 468,568 | (2,050,618 | ) | 796,171 | |||||||||
Other (income) expense, net (1) | 14,418 | (3,616 | ) | 8,595 | (3,182 | ) | |||||||||
Non-GAAP Adjustments: | |||||||||||||||
Non-cash deferred compensation (2) | 666 | 534 | 1,332 | 1,068 | |||||||||||
Non-cash share-based compensation (3) | 22,389 | 29,651 | 55,147 | 56,650 | |||||||||||
Redeployment of Norwegian Joy (4) | - | 2,035 | - | 7,051 | |||||||||||
Impairment loss (5) | - | - | 1,607,797 | - | |||||||||||
Adjusted EBITDA | $ | (393,104 | ) | $ | 497,172 | $ | (377,747 | ) | $ | 857,758 | |||||
(1) Primarily consists of gains and losses, net for forward currency exchanges and proceeds from insurance and litigation settlements.
(2) Non-cash deferred compensation expenses related to the crew pension plan and other crew expenses are included in payroll and related expense.
(3) Non-cash share-based compensation expenses related to equity awards are included in marketing, general and administrative expense and payroll and related expense.
(4) Expenses related to the redeployment of Norwegian Joy from
(5) Impairment loss consists of goodwill and tradename impairments.
Source: Norwegian Cruise Line Holdings Ltd.