Norwegian Cruise Line Holdings Reports Third Quarter 2020 Financial Results and Provides Business Update
“The new Framework for Conditional Sailing Order issued by the
- Testing and additional safeguards for crew members, while building laboratory capacity needed to test guests and crew in the future;
- Simulated voyages to test a cruise ship operator's ability to mitigate COVID-19 risk;
- Certification for ships that meet specific requirements;
- A phased return to guest voyages in a manner that mitigates the risk of COVID-19 transmission among guests, crew and communities visited.
While the Conditional Order represents a step forward in the resumption of cruising in the
Health and Safety
In September, the
The HSP is co-chaired by Governor
Booking Environment and Outlook
While booking volumes since the emergence of the COVID-19 global pandemic remain below historical levels, there continues to be demand for future cruise vacations, particularly beginning for sailings operating in the second half of 2021 and beyond, despite limited marketing efforts. Our overall cumulative booked position for the first half of 2021 remains below historical ranges as expected due to the current uncertain environment, however, for the second half of 2021 it is in line with historical ranges. Pricing for full year 2021 is in line with pre-pandemic levels, even after including the dilutive impact of future cruise credits. Pent up future demand for cruising is further demonstrated by record booking achievements in September and October including Oceania Cruises’
To provide additional flexibility to its guests, the Company has also extended its modified final payment schedule for all voyages through
As of
COVID-19 Financial Action Plan
The Company continues to take swift, proactive measures to mitigate the financial and operational impacts of COVID-19. This financial action plan includes previously implemented cost reduction and cash conservation levers which include reducing operating and capital expenditures, improving the Company’s debt maturity profile and securing additional capital. As of
The Company has taken the following additional actions since
- In
July 2020 , the Company closed on a series of capital market transactions resulting in$1.5 billion of gross proceeds. The triple-tranche transaction consisted of (i) approximately$288 million public offering of common equity, (ii)$450 million of 5.375% exchangeable senior notes and (iii)$750 million of 10.25% senior secured notes, the proceeds of which were used in part to repay the existing$675 million short-term revolving credit facility. - Extended workforce furloughs.
- Extended 20% salary reduction for all shoreside team members.
- Continued significant reductions or deferrals of near-term marketing expenses. Marketing investments are focused on second half of 2021 and beyond, consistent with the planned gradual resumption of voyages.
The Company's monthly average cash burn rate for the third quarter 2020 was approximately
Due to the fluidity of the voyage resumption schedule and associated expenses, the Company estimates its actual cash burn rate for the fourth quarter 2020 will be higher than the comparative number referenced above. Average monthly cash burn is expected to increase as vessels are prepared to return to service due to additional costs associated with re-staffing, re-positioning and provisioning of vessels, implementation of new health and safety protocols and a disciplined ramp-up of demand-generating marketing investments.
“We are focused on positioning the Company to not only withstand an extended COVID-19 disruption but to emerge from this period with a clear path for long-term financial recovery,” said
Third Quarter 2020 Results
GAAP net income (loss) was
Revenue decreased to
Total cruise operating expense decreased 80.8% in 2020 compared to 2019. In 2020, our cruise operating expenses were primarily related to crew costs, including salaries, food and other repatriation costs, fuel, and other ongoing costs such as insurance and ship maintenance.
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 will report a net loss on both a
As of
2021 | 2022 |
2023 |
||||||||||
% of HFO Consumption Hedged | 55 | % | 19 | % | 0 | % | ||||||
Average USGC Price / Barrel | $ | 46.16 | $ | 48.36 | N/A | |||||||
% of MGO Consumption Hedged | 61 | % | 49 | % | 22 | % | ||||||
Average Gasoil Price / Barrel | $ | 80.94 | $ | 70.00 | $ | 67.45 |
Anticipated total capital expenditures for fourth quarter 2020 are approximately
Conference Call
The Company has scheduled a conference call for
About
About the
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
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.
Net Cruise Cost Excluding Fuel.
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
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 nine 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 |
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(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 | Nine Months Ended | ||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||
Revenue | |||||||||||||||||||||
Passenger ticket | $ | 4,667 | $ | 1,373,779 | 859,293 | $ | 3,526,456 | ||||||||||||||
Onboard and other | 1,851 | 540,072 | 411,036 | 1,455,302 | |||||||||||||||||
Total revenue | 6,518 | 1,913,851 | 1,270,329 | 4,981,758 | |||||||||||||||||
Cruise operating expense | |||||||||||||||||||||
Commissions, transportation and other | 4,038 | 330,893 | 371,007 | 857,848 | |||||||||||||||||
Onboard and other | 4,728 | 122,971 | 82,889 | 309,447 | |||||||||||||||||
Payroll and related | 65,571 | 235,833 | 441,462 | 688,325 | |||||||||||||||||
Fuel | 48,224 | 98,943 | 222,240 | 297,727 | |||||||||||||||||
Food | 3,426 | 56,913 | 59,639 | 166,305 | |||||||||||||||||
Other | 64,170 | 145,211 | 308,832 | 456,187 | |||||||||||||||||
Total cruise operating expense | 190,157 | 990,764 | 1,486,069 | 2,775,839 | |||||||||||||||||
Other operating expense | |||||||||||||||||||||
Marketing, general and administrative | 156,656 | 255,148 | 558,781 | 744,991 | |||||||||||||||||
Depreciation and amortization | 177,488 | 156,215 | 554,937 | 482,227 | |||||||||||||||||
Impairment loss | - | - | 1,607,797 | - | |||||||||||||||||
Total other operating expense | 334,144 | 411,363 | 2,721,515 | 1,227,218 | |||||||||||||||||
Operating income (loss) | (517,783 | ) | 511,724 | (2,937,255 | ) | 978,701 | |||||||||||||||
Non-operating income (expense) | |||||||||||||||||||||
Interest expense, net | (139,664 | ) | (60,188 | ) | (323,108 | ) | (199,660 | ) | |||||||||||||
Other income (expense), net | (23,680 | ) | 10,251 | (32,275 | ) | 13,433 | |||||||||||||||
Total non-operating income (expense) | (163,344 | ) | (49,937 | ) | (355,383 | ) | (186,227 | ) | |||||||||||||
Net income (loss) before income taxes | (681,127 | ) | 461,787 | (3,292,638 | ) | 792,474 | |||||||||||||||
Income tax benefit (expense) | 3,761 | (11,203 | ) | 19,057 | 16,457 | ||||||||||||||||
Net income (loss) | $ | (677,366 | ) | $ | 450,584 | (3,273,581 | ) | $ | 808,931 | ||||||||||||
Weighted-average shares outstanding | |||||||||||||||||||||
Basic | 271,435,350 | 214,207,716 | 241,578,995 | 215,614,098 | |||||||||||||||||
Diluted | 271,435,350 | 215,499,462 | 241,578,995 | 217,050,055 | |||||||||||||||||
Earnings (loss) per share | |||||||||||||||||||||
Basic | $ | (2.50 | ) | $ | 2.10 | $ | (13.55 | ) | $ | 3.75 | |||||||||||
Diluted | $ | (2.50 | ) | $ | 2.09 | $ | (13.55 | ) | $ | 3.73 | |||||||||||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | |||||||||||||||||||
(Unaudited) | |||||||||||||||||||
(in thousands) | |||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||
Net income (loss) | $ | (677,366 | ) | $ | 450,584 | $ | (3,273,581 | ) | $ | 808,931 | |||||||||
Other comprehensive income (loss): | |||||||||||||||||||
Shipboard Retirement Plan | 101 | 95 | 305 | 284 | |||||||||||||||
Cash flow hedges: | |||||||||||||||||||
Net unrealized gain (loss) | 87,710 | (209,511 | ) | (163,672 | ) | (211,548 | ) | ||||||||||||
Amount realized and reclassified into earnings | 36,072 | (448 | ) | 86,853 | (16,722 | ) | |||||||||||||
Total other comprehensive income (loss) | 123,883 | (209,864 | ) | (76,514 | ) | (227,986 | ) | ||||||||||||
Total comprehensive income (loss) | $ | (553,483 | ) | $ | 240,720 | $ | (3,350,095 | ) | $ | 580,945 | |||||||||
CONSOLIDATED BALANCE SHEETS | |||||||||
(Unaudited) | |||||||||
(in thousands, except share data) | |||||||||
2020 | 2019 | ||||||||
Assets | |||||||||
Current assets: | |||||||||
Cash and cash equivalents | $ | 2,356,211 | $ | 252,876 | |||||
Accounts receivable, net | 78,496 | 75,109 | |||||||
Inventories | 81,259 | 95,427 | |||||||
Prepaid expenses and other assets | 136,533 | 306,733 | |||||||
Total current assets | 2,652,499 | 730,145 | |||||||
Property and equipment, net | 13,453,433 | 13,135,337 | |||||||
98,134 | 1,388,931 | ||||||||
Tradenames | 500,525 | 817,525 | |||||||
Other long-term assets | 697,446 | 612,661 | |||||||
Total assets | $ | 17,402,037 | $ | 16,684,599 | |||||
Liabilities and shareholders' equity | |||||||||
Current liabilities: | |||||||||
Current portion of long-term debt | $ | 472,359 | $ | 746,358 | |||||
Accounts payable | 116,464 | 100,777 | |||||||
Accrued expenses and other liabilities | 629,811 | 782,275 | |||||||
Advance ticket sales | 1,115,632 | 1,954,980 | |||||||
Total current liabilities | 2,334,266 | 3,584,390 | |||||||
Long-term debt | 10,465,095 | 6,055,335 | |||||||
Other long-term liabilities | 514,910 | 529,295 | |||||||
Total liabilities | 13,314,271 | 10,169,020 | |||||||
Commitments and contingencies | |||||||||
Shareholders' equity: | |||||||||
Ordinary shares, |
|||||||||
and 275,619,452 shares outstanding at |
|||||||||
213,082,411 shares outstanding at |
300 | 237 | |||||||
Additional paid-in capital | 5,155,986 | 4,235,690 | |||||||
Accumulated other comprehensive income (loss) | (372,004 | ) | (295,490 | ) | |||||
Retained earnings | 557,410 | 3,829,068 | |||||||
Treasury shares (24,450,859 ordinary shares at |
|||||||||
at cost) | (1,253,926 | ) | (1,253,926 | ) | |||||
Total shareholders' equity | 4,087,766 | 6,515,579 | |||||||
Total liabilities and shareholders' equity | $ | 17,402,037 | $ | 16,684,599 | |||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||
(Unaudited) | ||||||||||||||
(in thousands) | ||||||||||||||
Nine Months Ended | ||||||||||||||
2020 | 2019 | |||||||||||||
Cash flows from operating activities | ||||||||||||||
Net income (loss) | $ | (3,273,581 | ) | $ | 808,931 | |||||||||
Adjustments to reconcile net income (loss) to | ||||||||||||||
net cash provided by (used in) operating activities: | ||||||||||||||
Depreciation and amortization expense | 565,208 | 482,497 | ||||||||||||
Impairment loss | 1,607,797 | - | ||||||||||||
Deferred income taxes, net | (17,852 | ) | (25,731 | ) | ||||||||||
Loss on derivatives | 12,195 | - | ||||||||||||
Loss on extinguishment of debt | 10,480 | 3,988 | ||||||||||||
Provision for bad debts and inventory obsolescence | 16,293 | 2,852 | ||||||||||||
Gain on involuntary conversion of assets | (1,340 | ) | (2,800 | ) | ||||||||||
Share-based compensation expense | 81,009 | 82,070 | ||||||||||||
Net foreign currency adjustments | 3,746 | (4,326 | ) | |||||||||||
Changes in operating assets and liabilities: | ||||||||||||||
Accounts receivable, net | (12,103 | ) | (12,741 | ) | ||||||||||
Inventories | 12,757 | (4,681 | ) | |||||||||||
Prepaid expenses and other assets | 79,915 | (31,926 | ) | |||||||||||
Accounts payable | 11,536 | (86,525 | ) | |||||||||||
Accrued expenses and other liabilities | (180,126 | ) | (27,504 | ) | ||||||||||
Advance ticket sales | (834,560 | ) | 262,938 | |||||||||||
Net cash provided by (used in) operating activities | (1,918,626 | ) | 1,447,042 | |||||||||||
Cash flows from investing activities | ||||||||||||||
Additions to property and equipment, net | (873,142 | ) | (615,985 | ) | ||||||||||
Cash received on settlement of derivatives | - | 289 | ||||||||||||
Cash paid on settlement of derivatives | (31,520 | ) | (556 | ) | ||||||||||
Other | 3,047 | 5,039 | ||||||||||||
Net cash used in investing activities | (901,615 | ) | (611,213 | ) | ||||||||||
Cash flows from financing activities | ||||||||||||||
Repayments of long-term debt | (888,800 | ) | (2,882,354 | ) | ||||||||||
Proceeds from long-term debt | 5,225,090 | 2,652,000 | ||||||||||||
Common share issuance proceeds, net | 719,094 | - | ||||||||||||
Proceeds from employee related plans | 5,557 | 18,203 | ||||||||||||
Net share settlement of restricted share units | (15,334 | ) | (20,935 | ) | ||||||||||
Purchase of treasury shares | - | (349,860 | ) | |||||||||||
Early redemption premium | (1,376 | ) | (117 | ) | ||||||||||
Deferred financing fees and other | (117,388 | ) | (9,359 | ) | ||||||||||
Net cash provided by (used in) financing activities | 4,926,843 | (592,422 | ) | |||||||||||
Effect of exchange rates on cash and cash equivalents | (3,267 | ) | - | |||||||||||
Net increase in cash and cash equivalents | 2,103,335 | 243,407 | ||||||||||||
Cash and cash equivalents at beginning of the period | 252,876 | 163,851 | ||||||||||||
Cash and cash equivalents at end of the period | $ | 2,356,211 | $ | 407,258 | ||||||||||
NON-GAAP RECONCILING INFORMATION | |||||||||||||||||
(Unaudited) | |||||||||||||||||
The following table sets forth selected statistical information: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||
Passengers carried | — | 726,921 | 499,729 | 2,054,908 | |||||||||||||
Passenger Cruise Days | — | 5,387,662 | 4,278,602 | 15,377,185 | |||||||||||||
Capacity Days | — | 4,854,292 | 4,123,858 | 14,198,092 | |||||||||||||
Occupancy Percentage | 111.0 | % | 103.8 | % | 108.3 | % | |||||||||||
NON-GAAP RECONCILING INFORMATION | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
Gross Cruise Cost, |
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Three Months Ended | Nine Months Ended | ||||||||||||||||||||
2020 | 2020 | ||||||||||||||||||||
Constant | Constant | ||||||||||||||||||||
2020 | Currency | 2019 | 2020 | Currency | 2019 | ||||||||||||||||
Total cruise operating expense | $ | 190,157 | $ | 190,200 | $ | 990,764 | $ | 1,486,069 | $ | 1,490,044 | $ | 2,775,839 | |||||||||
Marketing, general and | |||||||||||||||||||||
administrative expense | 156,656 | 155,904 | 255,148 | 558,781 | 558,834 | 744,991 | |||||||||||||||
Gross Cruise Cost | 346,813 | 346,104 | 1,245,912 | 2,044,850 | 2,048,878 | 3,520,830 | |||||||||||||||
Less: | |||||||||||||||||||||
Commissions, transportation | |||||||||||||||||||||
and other expense | 4,038 | 4,032 | 330,893 | 371,007 | 372,499 | 857,848 | |||||||||||||||
Onboard and other expense | 4,728 | 4,728 | 122,971 | 82,889 | 82,889 | 309,447 | |||||||||||||||
Net Cruise Cost | 338,047 | 337,344 | 792,048 | 1,590,954 | 1,593,490 | 2,353,535 | |||||||||||||||
Less: Fuel expense | 48,224 | 48,224 | 98,943 | 222,240 | 222,240 | 297,727 | |||||||||||||||
Net Cruise Cost Excluding Fuel | 289,823 | 289,120 | 693,105 | 1,368,714 | 1,371,250 | 2,055,808 | |||||||||||||||
Less Non-GAAP Adjustments: | |||||||||||||||||||||
Non-cash deferred compensation (1) | 667 | 667 | 533 | 1,999 | 1,999 | 1,601 | |||||||||||||||
Non-cash share-based compensation (2) | 25,862 | 25,862 | 25,420 | 81,009 | 81,009 | 82,070 | |||||||||||||||
Redeployment of Norwegian Joy (3) | - | - | - | - | - | 7,051 | |||||||||||||||
Adjusted Net Cruise Cost Excluding Fuel | $ | 263,294 | $ | 262,591 | $ | 667,152 | $ | 1,285,706 | $ | 1,288,242 | $ | 1,965,086 | |||||||||
Capacity Days | — | — | 4,854,292 | 4,123,858 | 4,123,858 | 14,198,092 | |||||||||||||||
Gross Cruise Cost per Capacity Day | $ | 256.66 | $ | 247.98 | |||||||||||||||||
$ | 163.16 | $ | 165.76 | ||||||||||||||||||
Net Cruise Cost Excluding Fuel per Capacity Day | $ | 142.78 | $ | 144.79 | |||||||||||||||||
Adjusted Net Cruise Cost Excluding Fuel per Capacity Day | $ | 137.44 | $ | 138.40 | |||||||||||||||||
(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 | Nine Months Ended | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Net income (loss) | $ | (677,366 | ) | $ | 450,584 | $ | (3,273,581 | ) | $ | 808,931 | |||||
Non-GAAP Adjustments: | |||||||||||||||
Non-cash deferred compensation (1) | 992 | 878 | 2,975 | 2,636 | |||||||||||
Non-cash share-based compensation (2) | 25,862 | 25,420 | 81,009 | 82,070 | |||||||||||
Extinguishment and modification of debt (3) | 6,636 | - | 27,795 | 7,268 | |||||||||||
Amortization of intangible assets (4) | 2,774 | 4,603 | 8,321 | 13,809 | |||||||||||
Redeployment of Norwegian Joy (5) | - | - | - | 30,629 | |||||||||||
Impairment loss (6) | - | - | 1,633,337 | - | |||||||||||
Non-cash interest on beneficial conversion feature (7) | 2,356 | - | 3,700 | - | |||||||||||
Adjusted Net Income (Loss) | $ | (638,746 | ) | $ | 481,485 | $ | (1,516,444 | ) | $ | 945,343 | |||||
Diluted weighted-average shares outstanding - Net income (loss) and Adjusted Net Income (Loss) | 271,435,350 | 215,499,462 | 241,578,995 | 217,050,055 | |||||||||||
Diluted earnings (loss) per share | $ | (2.50 | ) | $ | 2.09 | $ | (13.55 | ) | $ | 3.73 | |||||
Adjusted EPS | $ | (2.35 | ) | $ | 2.23 | $ | (6.28 | ) | $ | 4.36 | |||||
(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 |
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(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 | Nine Months Ended | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Net income (loss) | $ | (677,366 | ) | $ | 450,584 | $ | (3,273,581 | ) | $ | 808,931 | |||||
Interest expense, net | 139,664 | 60,188 | 323,108 | 199,660 | |||||||||||
Income tax (benefit) expense | (3,761 | ) | 11,203 | (19,057 | ) | (16,457 | ) | ||||||||
Depreciation and amortization expense | 177,488 | 156,215 | 554,937 | 482,227 | |||||||||||
EBITDA | (363,975 | ) | 678,190 | (2,414,593 | ) | 1,474,361 | |||||||||
Other (income) expense, net (1) | 23,680 | (10,251 | ) | 32,275 | (13,433 | ) | |||||||||
Non-GAAP Adjustments: | |||||||||||||||
Non-cash deferred compensation (2) | 667 | 533 | 1,999 | 1,601 | |||||||||||
Non-cash share-based compensation (3) | 25,862 | 25,420 | 81,009 | 82,070 | |||||||||||
Redeployment of Norwegian Joy (4) | - | - | - | 7,051 | |||||||||||
Impairment loss (5) | - | - | 1,607,797 | - | |||||||||||
Adjusted EBITDA | $ | (313,766 | ) | $ | 693,892 | $ | (691,513 | ) | $ | 1,551,650 | |||||
(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 |
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(5) Impairment loss consists of goodwill and tradename impairments. |
Source: Norwegian Cruise Line Holdings Ltd.