NCLH Q2 2023 Earnings

Call Details

• Call Title: Norwegian Cruise Line Q2 2023 Earnings Call
• Date: August 1, 2023 at 2:00 PM UTC
• Management Team:
  • Jessica John (Vice President of Investor Relations, ESG, and Corporate Communications)
  • Harry Sommer (President and Chief Executive Officer)
  • Mark Kempa (Executive Vice President and Chief Financial Officer)

Call Summary

Financial Performance

• The company reported record revenue of $2.2B in Q2 2023, up 33% versus the same period in 2019.
• Adjusted EBITDA was approximately $515M in Q2 2023, which exceeded guidance by about $30M.
• Adjusted EPS was $0.30 in Q2 2023, beating the projection by $0.05 and representing the first positive quarterly adjusted EPS since 2019.
• Cash flow from operations in the first half of 2023 exceeded $1.5B, including over $1.0B generated in Q2 2023.
• Advanced customer deposits were $3.5B at quarter end, which was 52% higher than Q2 2019.
• Trailing 12-month net leverage is expected to decline meaningfully and is projected to drop below 6x over the course of H1 2024 when excluding debt associated with ships on order.

Guidance

• Q3 2023 guidance projects net per diem growth of approximately 7% to 8% and net yield growth of approximately 2.25% to 3.25% versus 2019.
• Q4 2023 pricing and yield are expected to exhibit mid-teens growth versus 2019, with an adjusted organic net per diem uplift of approximately 10% after adjusting for new capacity and favorable comps.
• Full-year 2023 adjusted EBITDA guidance was raised to a range of $1.85B to $1.95B, and adjusted EPS is expected to be approximately $0.80 for the year.
• Full-year net per diem guidance remains approximately 9% to 10.5% versus 2019 and net yield guidance remains approximately 5% to 6.5% with capacity guided at 18%.
• Adjusted net cruise cost excluding fuel per capacity day is expected to average approximately $156 for full-year 2023, improved from prior guidance of $159.
• Q3 adjusted net cruise cost excluding fuel per capacity day is expected to be approximately $152, which includes roughly $3 of one-time non-recurring benefits realized in the quarter.