NCLH Q1 2024 Earnings

Call Details

• Call Title: Norwegian Cruise Line Q1 2024 Earnings Call
• Date: May 1, 2024 2:00 PM UTC
• Management Team:
  • Sarah Inman (Investor Relations)
  • Harry Sommer (President and CEO)
  • Mark Kempa (Executive Vice President and CFO)

Call Summary

Financial Performance

• Net yield increased 16.2% on a constant currency basis in Q1 2024, materially above prior guidance of 15.5%.
• Adjusted EBITDA for Q1 2024 was approximately $464M, exceeding guidance of $450M and nearly doubling the prior year quarter.
• Adjusted EPS for Q1 2024 was $0.16, compared to a loss of $0.30 in Q1 2023 and above guidance of $0.12.
• Trailing 12-month adjusted operational EBITDA margin was 32.7%, improving 200 basis points versus full year 2023.
• Adjusted net cruise cost excluding fuel per capacity day in Q1 came in at $164, which management said is essentially flat ex-dry dock impacts.
• Advanced ticket sales balance reached a record $3.8B, up 13% year over year.

Guidance

• Full-year net yield growth guidance was raised by 100 basis points from 5.4% to approximately 6.5% on a constant currency basis.
• Full-year adjusted EBITDA guidance was increased by $50M to $2.5B.
• Full-year adjusted EPS guidance was raised to $1.32, representing a $0.09 net increase on the year due to Q1 results and higher expected pricing.
• Second quarter 2024 net yield is expected to increase approximately 4.3% year over year.
• Second quarter adjusted net cruise cost excluding fuel per capacity day is expected to be approximately $165, which includes about a $9 dry dock-driven increase; excluding dry docks the number is expected to be approximately $156.
• Second quarter adjusted EBITDA is expected to be approximately $555M, adjusted net income about $160M, and adjusted EPS approximately $0.32.
• Company reiterated full-year occupancy guidance remains unchanged and is effectively guiding to full ships, such that FY uplift is driven by pricing rather than occupancy gains.